[Bumped up for visibility.]
* So, this just happened…
Munger just got $5 million, so why is she giving $3 million away? And why would they blow the contribution caps in Leader Durkin’s race when he doesn’t even have an opponent?
* Scott Kennedy’s explanation could apply to both developments, although I’m told by one top Munger person that it doesn’t apply to her. We’ll see.
Kennedy’s theory is that the Republicans could be using Munger’s and Durkin’s no longer contribution capped committees as entryways to move huge amounts of fresh, non-Rauner cash into legislative races. Campaign committees can contribute unlimited amounts to state parties, and state parties can contribute unlimited amounts to candidates in general elections, so I suppose it’s possible that Rauner doesn’t want his personal campaign committee’s name on every single dollar going into the system…
Another very likely possibility is that [Munger’s] campaign committee is being used as an entryway to get unlimited contributions into the system where that money can then move freely around to be spent on other races. I discussed the need for entryways in my previous post. The House Dems have had a number of large donors, particularly in labor and legal, who are willing to contribute more than the maximum amount so they’ve had to break up those contributions into the amounts permitted by contribution limits and then contribute those amounts to as many Democratic affiliated committees as necessary to get all the money in the system. In a general election candidate committees can make unlimited transfers to party committees and party committees can make unlimited transfers to candidate committees so once that money is in the system the candidate committees with surplus funds can either transfer those funds to their fellow candidates up to the limited amount or they can make unlimited transfers to their party committee where the funds can then be redistributed in unlimited amounts to other candidates in need.
However in this case the contribution limits are off for the Comptroller’s race because of the $260,000 loan Munger received from her husband. Munger (and Mendoza) can accept contributions in unlimited amounts and if they so choose they can then make unlimited transfers to the party committee who can then spend or transfer unlimited amounts on other candidates, such as targeted general assembly races.
Prior to last week the Governor had been almost single-handedly funding the Republican legislative effort. The only other significant pool of money was in the Independent Expenditure committee Liberty Principles PAC which had raised $5 million since June, $2.5 million from Governor Rauner personally, $1.5 million from Richard Uihlein and $1 million from Ken Griffin. However the funds in the IE committee are somewhat walled off, independent expenditure committees are not allowed to transfer funds to candidate or party committees so if these donors wanted to use their money to help legislative candidates they could only do so by making expenditures independently. But now that the contribution limits have been lifted in the Comptroller’s race they can make direct unlimited contributions to Munger who can then transfer that money to the party as needed and it can be put to use elsewhere.
Just because Munger transferred $3 million to the State Party today doesn’t mean she won’t get additional financial support later to supplement her campaign budget, she may still very well spend $5.5 million on her fall effort if additional contributions are received. Also, it’s unlikely that this is our last unexpected development before the election. Stay tuned.
*** UPDATE *** Munger is in Quincy today…
The Republican comptroller also defended recent moves within her campaign finance fund, which have brought allegations from challenger Mendoza that she is gaming the system.
Late last month, Munger got a $260,000 loan from her attorney husband, which lifted contribution limits in the race. That cleared the way for $5 million in donations from hedge fund billionaire Ken Griffin and frequent conservative GOP donor Richard Uihlein, key Rauner allies. Since then, Munger’s campaign transferred $3 million to the Illinois Republican Party, which can now distribute that money to various candidates as the GOP tries to cut into the Democratic supermajorities held by House Speaker Michael Madigan and Senate President John Cullerton.
Mendoza called it “blatant money laundering” in a Twitter post. Munger said she was just taking advantage of campaign financial rules Democrats put in place in 2009 that Mendoza voted for while in the House.
“We are really just taking advantage of the law that she passed,” Munger said. “Everything I’ve done is completely transparent, and it’s certainly legal.”
