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SEPTEMBER 15, 1998    9:00 AM
FOR IMMEDIATE RELEASE
CONTACT: Center for Responsive Politics
Paul Hendrie 202/857-0044
Congressional Leaders Using 'Leadership PAC's To Tap Donors Twice; Study Finds Two-Fisted Giving that End-Runs Campaign Contribution Limits
WASHINGTON - September 15 - Many members of Congress are using their "leadership PACs" to collect contributions from political action committees that also give to their campaigns, Capital Eye, the non-partisan Center for Responsive Politics' newsletter, reports today.

The pattern of double giving, identified by Capital Eye's computer-assisted analysis of PAC donations,  effectively circumvents the legal limits on contributions to congressional candidates.

For example, Capital Eye found that: Rep. John A. Boehner's (R-Ohio) leadership PAC has taken $204,914 so far this election cycle from PACs that also gave to his campaign. Sen. Don Nickles' (R-Okla.) leadership PAC has taken  $196,750 from PACs that also gave to his campaign. House Minority Leader Richard Gephardt's (D-Mo.) leadership PAC has taken $192,500 from leadership PACs that also gave to his campaign. House Speaker Newt Gingrich (R-Ga.) has taken $167,884 from leadership PACs that also gave to his campaign.

Leadership PACs are political action committees tied to members of Congress or other federal politicians but independent of their campaign committees. Leadership PACs are generally set up so the elected officials can help the campaigns of candidates who share a party affiliation or philosophical point of view, and later reap the political benefits from.

It's illegal for leadership PACs to spend money directly on the sponsoring politician's campaign, but they can pay for overhead and general political costs - such as consulting and polling - that enhance the sponsor's political fortunes.

For example, Sen. John Ashcroft (R-Mo.), a likely presidential contender in 2000, raised more than $1 million through his leadership PAC during the first six months of 1998 but contributed just $1,000 to other federal candidates. Much of the more than $815,000 the PAC spent during that period went toward direct mail fund-raising - an effort that
builds a nationwide list of potential donors and supporters for a presidential run.

Leadership PACs give contributors a vehicle for double giving to favored candidates. So, a PAC that has already given the maximum $5,000 per election to a congressional candidate can then give $5,000 per year to the candidate's leadership PAC.

"Basically, the reason anyone gives to leadership PACs is to give twice," BellSouth Telecommunications spokesman Bill McCloskey told Capital Eye. "Giving to a member's campaign and to their leadership PAC allows us to stretch our reach."

The Capital Eye article shows that many double givers steered their contributions to lawmakers serving on committees that affect their interests.

For example, telecommunication industry PACs gave $20,000 to the campaign and $21,500 to the leadership PAC of House Commerce Committee Chairman Thomas Bliley (R-Va.); $19,500 to the campaign and $11,500 to the leadership PAC of House Telecommunications Subcommittee Chairman W.J. "Billy" Tauzin (R-La.); and $14,533 to the campaign and $38,800 to the leadership PAC of the subcommittee Vice Chairman Michael Oxley (R-Ohio).

The analysis was based on data downloaded from the Federal Election Commission on July 1. The Center identified the cases where a PAC gave both to a member of Congress and the lawmaker's leadership PAC during the 1997-98 election cycle.

Capital Eye is available on the World Wide Web at www.crp.org. Mail subscriptions are available by writing to the Center at 1320 19th St. NW, #620, Washington, DC 20036 or sending an e-mail to phendrie@crp.org. The Center for Responsive Politics is a non-partisan, non-profit research organization that tracks money in federal politics. News stories based on this release should credit the Center for Responsive Politics and Capital Eye.

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