Houston-area firms steering PAC money to Democrats

[peejay 327]

Oh gee! But these generous contributions of $$$ don't influence our lawmakers, do they?

Houston-area firms steering PAC money to Democrats

PAC money is steered toward party that heads key committees

By BENNETT ROTH

2007 Houston Chronicle Washington Bureau

WASHINGTON — Several large Houston-area companies in the Republican-leaning energy industry and other sectors have been shifting federal campaign contributions to Democrats, who are flexing their new power in Congress as they draft legislation on energy and the environment.

Political action committees for companies including ConocoPhillips, BP Corp. and Continental Airlines gave a significantly higher percentage of their contributions to Democrats in the first quarter of 2007 than they did for the November 2006 election, when Republicans lost their majorities in the House and Senate.

Corporate officials warned that first quarter contributions in a two-year election cycle should not be interpreted as an indication of a major change in long-term giving strategy. And some business PACs, including that of energy giant ExxonMobil, are still contributing largely to Republican lawmakers and candidates.

Nevertheless, some Texas mega-employers seem to be following the national trend of businesses steering more of their PAC money to Democrats, who now head the key committees where legislation is drafted.

Direct corporate giving to federal candidates is prohibited, but many companies support candidates and parties through their political committees, which raise money from company executives and other employees. The PAC contributions are limited to $5,000 per candidate in each election. Company employees also may also give individually to candidates, with a limit of $2,300 per candidate for an election.

In the first quarter of this year, Democrats received 56.6 percent of business PAC money nationally, compared with 34.1 percent in the 2005-2006 election cycle, according to Political MoneyLine, which analyzes political giving and is a part of the media company Congressional Quarterly.

"Corporate political giving is based on enlightened self-interest, and Democratic chairmen over major committees is a reality that has to be taken into account," said Scott Segal, a partner in the Washington office of the Houston-based law firm of Bracewell & Giuliani.

The firm, with Republican presidential candidate Rudolph Giuliani as a partner, lobbies for energy companies. Its PAC has increased its percentage of contributions to Democrats this year.

Shared philosophies

In the past, energy companies have been among the strongest backers of Republicans because they share a philosophy of less regulation, particularly in the environmental area; they have been against higher gas taxes and have been most supportive of oil and gas exploration.

Campaign finance filings for January through March show that other local companies have paid attention to the changed political landscape.

ConocoPhillips reported that this year its political committee gave 47 percent of its total $22,000 in contributions to Democrats, including $2,500 to U.S. Sen. John Tester of Montana, a Democrat who ousted Republican incumbent Conrad Burns after a hotly contested race last fall. The business's remaining 53 percent of contributions went to Republicans.

But in the 2006 election cycle, the company directed 90.6 percent of its $325,000 in contributions to 172 Republicans, including $5,000 to Burns.

BP North America PAC followed in the same pattern, making almost 90 percent of its contributions to Democrats

Other companies that increased their percentage of PAC contributions to Democrats this year include Houston-based Lyondell (a fuels and chemicals manufacturer) and Centerpoint Energy, San Antonio-based Valero Energy and Clear Channel Communications and Dallas-based Southwest Airlines.

GOP loyalty remains

Corporate officials dismissed any suggestion they were altering their giving strategy because of a change in power on Capitol Hill. BP spokesman Neil Chapman said it would be misleading to draw conclusions from first quarter contributions in a two-year election cycle.

"We tend to support candidates we believe would be best qualified, whether they be Republican or Democrat," ConocoPhillips spokesman Bill Tanner said.

Other companies remained largely loyal to Republicans, although to slightly lesser degree than in the past.

ExxonMobil's PAC, between the time the GOP took control of Congress in 1994 until last year, gave at least 90 percent of its contributions to GOP contenders. This year the company PAC gave 77.8 percent of its donations to Republicans.

"We support people from both parties who endorse free market principles," ExxonMobil spokesman Dave Gardner said.

"That doesn't change from election to election. We are a principle-driven company."

Fred Wertheimer, who heads Democracy 21, a campaign finance reform group, said it is not surprising that corporate PACs are sending more money to Democrats now that they are back in power.

"This is investment money. These PACs are investing in access and influence," he said.

Wertheimer said the only way to stop the trend would be for lawmakers to approve reforms that would further curb contributions.

A fact of political life

Rep. Gene Green, D-Houston, said he has noticed some new shifts in corporate interest, such as the recent participation of Halliburton in his annual golf fundraiser in Hermann Park. Halliburton first agreed to be a sponsor, which means a contribution of $500 or $1000, last year and participated again in the most recent event in April, he said.

Overall, Halliburton, which has been the target of numerous Democratic-led congressional probes over its operations in Iraq and Iran, contributed 36.4 percent of its donations to Democrats this year compared with 7.3 percent in the previous election cycle.

Republicans, who were accustomed to besting Democrats in fundraising when they were in power, said they viewed the shift in giving as a harsh fact of political life.

As Rep. Kevin Brady, R-The Woodlands, put it, "Washington has this 'to the victor goes the spoils' mentality."

http://www.chron.com/disp/story.mpl/front/4780480.html