Professional Documents
Culture Documents
Whos in Charge: How Nationalized Corporate-Run Think Tanks Influence Minnesota Politics
Table of Contents
Acknowledgements ........................................................................................................................................ 3 Executive Summary ........................................................................................................................................ 4
Connecting the Dots.................................................................................................................................................... 4 The Impact: K Street, St. Paul ...................................................................................................................................4 American Legislative Exchange Council ............................................................................................................... 6 Center of the American Experiment ...................................................................................................................... 6 Freedom Foundation of Minnesota ........................................................................................................................ 7 State Policy Network .................................................................................................................................................. 7 Ties to Other Conservative Organizations ........................................................................................................... 8 Key Players ...................................................................................................................................................................9 Its the Money, Honey .............................................................................................................................................. 12 Impact on Policy Making ........................................................................................................................................ 16 So-Called Right to Work .......................................................................................................................................................................16 Voter ID .........................................................................................................................................................................................................20 Assaults on Public Education.............................................................................................................................................................21 CAE Playing Outside the Rules? ............................................................................................................................ 22 Gubernatorial Candidate Scott Honour ............................................................................................................. 24 U.S. Senate Candidate Mike McFadden ............................................................................................................... 26
Conclusion ...................................................................................................................................................... 27
Acknowledgements
ABM would like to thank the Center for Media and Democracy, which publishes ALECexposed.org, PRwatch.org, and SourceWatch.org, for providing research and editing assistance for Parts I and II of this report.
Executive Summary
While the activity of the American Legislative Exchange Council (ALEC) has been highly documented (See: Legislating Under the Influence, Common Cause Minnesota, 2012) in Minnesota, the influence of corporate-backed, state-based think tanks and ALEC partners in the state has not yet been fully exposed. The tentacles of the corporate-backed policy-making machine stretch to both policies and politicians in Minnesota.
www.sourcewatch.org, accessed 09/05/13 www.spn.org, accessed 09/05/13 3 www.spn.org, accessed 09/05/13 4 www.prwatch.org, accessed 11/08/13; www.sourcewatch.org, accessed 09/05/13 5 www.bridgeproject.com, accessed 09/05/13
1 2
As a vehicle of SPN, CAE has promoted highly controversial, corporate-backed bills, attempts to block progressive reforms, and works to influence public opinion on Minnesotas laws. In 2012, CAE released a report praising the proposed Right to Work constitutional amendment. The report was largely copied from an SPN affiliate in Ohio. CAE also released a highly controversial report supporting the Voter ID constitutional amendment, that would have made it harder for Minnesotans to vote, that was panned by academics and opponents of Voter ID alike. Both the Voter ID and Right to Work amendments in Minnesota were taken from ALEC model language, illustrating the close relationship between ALEC and SPN members like CAE. ALEC provides model language for corporate-backed laws and SPN members like CAE provide research to back up the ALEC legislative agenda. Not only does CAEs research illustrate its work in furthering a nationalized corporate agenda in Minnesota, it also calls into question its 501(c)(3) tax-exempt status. Under federal law, 501(c)(3) non-profits lobbying activities are capped at either 20 percent of the first $500,000 of activities or a total of $1 million for very large 501(c)(3) organizations.6 CAEs extensive work advocating in favor of the Voter ID constitutional amendment in 2012 is considered lobbying under federal law. When that is combined with their lobbying activity at the legislature, there is a real question if CAE exceeded the lobbying cap that allows donations to it to be tax-deductible write-offs. In addition to influencing public policy and opinion, ALEC and SPN also work to directly influence politicians and elected officials through their state think-tank fellows and staff. In 2002, the Star Tribune reported that at least five members of Governor-elect Pawlentys transition team had ties to CAE, including Annette Meeks, Chris Georgacas, and Katherine Kersten. 7 More recently, Republican candidates for statewide office in 2014 have direct ties to CAE. Gubernatorial candidate Scott Honour was appointed to the Board of Directors of the controversial group in July 2012.8 Mike McFadden, candidate for United States Senate, recently appointed CAE board member Molly Corrigan Cronin as his campaign chair.9 These ties beg a simple question: will Honour and McFadden be forwarding ALECs agenda via CAE in these campaigns?
The Center for Association Leadership, May 2002 Star Tribune, Pawlenty names his 13 transition advisers, 11/ 27/02 8 Center of the American Experiment, Fall 2012 9 www.mikemcfadden.com, 08/02/13
6 7
Legislating Under the Influence, Common Cause Minnesota, accessed 08/28/13 http://www.ALECexposed.org, accessed 10/25/13 12 www.americanexperiment.org, accessed 08/28/13 13 www.intellectualtakeout.org, accessed 09/03/13 14 Star Tribune, Think tank goes to college; Conservative group has many ties with Republican leaders, 08/10/05 15 www.americanexperiment.org, accessed 08/28/13
10 11
www.freedomfoundationofminnesota.com, accessed 09/05/13 Report from ProPublica; Slate, Corporations Bankrolling Restricting Efforts, 09/24/11; MPR, Former MN Republican Party Chair Backs Ron Paul, 02/03/12; MPR, Briggs and Morgan lines up on GOP side of redistricting battle, 06/14/11 18 www.prwatch.org, accessed 11/08/13 19 www.sourcewatch.org, accessed 09/03/13 20 www.prwatch.org, accessed 11/08/13] 21 www.spn.org, accessed 09/03/13 22 www.sourcewatch.org, accessed 11/08/13 23 www.sourcewatch.org, accessed 09/03/13 24 www.prwatch.org, accessed 11/08/13 25 www.prwatch.org, accessed 11/08/13 26 www.sourcewatch.org, accessed 11/08/13
16 17
www.policyguy.com, accessed 09/03/13 www.theihs.org, accessed 09/03/13 29 www.americanexperimnet.org/issues, accessed 09/06/13 30 www.sourcewatch.org, accessed 09/03/13 31 City Pages, 05/28/08 32 City Pages, 5/28/08 33 www.amexp.org, accessed 09/03/13 34 www.amexp.org, accessed 09/03/13
27 28
Intellectual Takeout
CAE CFO Dwight Tostenson is also the CEO of Intellectual Takeout.35 CAE founder Mitchell. B. Pearlstein was a special assistant for policy and communications to the Governor.36 CAE COO Kim Crockett served under Pawlenty as an appointee to the Minnesota Compensation Council.37 In 2002, the Star Tribune reported that at least five members of the Governor-elect Pawlentys transition team had ties to CAE.38 In 2006, Chris Georgacas (a former MNGOP Chair and current FFM board member) cochaired a bipartisan CAE task force on legislative reform alongside Democrat Roger Moe.39
Chris Georgacas
Key Players
CAEs staff members and Board of Directors have extremely close ties to some of the biggest corporations. The following table outlines the individuals associated with CAE, their positions at the organization, and their business affiliations outside of CAE.40
NAME POSITION BUSINESS AFFILIATIONS
Kim Crockett41
TCF National Bank and TCF Financial Group, former Corporate Council St Paul Pioneer Press, former Editorial Writer and Columnist City Business, Twin Cities Business Monthly, and The Sun-Bulletin, former Writer Alltell Corporation, former Senior Vice President of
Keith Kostuch
www.intellectualtakeout.org, accessed 09/03/13 Pearlstein biography, UofM Humphrey Institute, accessed 09/06/13 37 Center for the American Experiment, accessed 09/06/13 38 Star Tribune, Pawlenety names his 13 transition advisers; Panel members are mostly conservative and will help recruit appointees and map legislati ve strategy, 11/27/02 39 Pioneer Press, Study generates ideas to make good Legislature better, 03/02/06 40 www.americanexperiment.org, accessed 08/28/13; www.americanexperiment.org, accessed 08/28/13; www.sourcewatch.org, accessed 08/28/13 41 www.linkedin.com, accessed 09/03/13
35 36
Strategic Planning Bonston Consulting Group, former partner Dorsey & Whitney, Attorney Messerli & Kramer, Attorney Bernstein Global Wealth Management, Principal Other ties unknown Other ties unknown Intellectual Takeout, CEO Other ties unknown Other ties unknown Davisco Foods, family business National Arbitration Forum, CEO Wyncrest Capital, Inc. CSM Investments, Partner Comcast, Vice President of Government Affairs Personnel Decisions International, CEO Seaton, Beck & Revnew, P.A., Attorney F.T. L Corporation, CEO R.P. Royalties, Inc., President LannCo LLC, Officer/Partner Arbor Capital Management, Founder and CEO Bowman & Brooke, Attorney
Thomas O. Kelly Mark S. Larson Scott C. Rile Britt Drake Peter J. Nelson Dwight Tostenson Shanna Woodbury Peter Zeller Mitchell Davis Edward C. Anderson Ronald E. Eibensteiner Carolyn Erickson John F. Gibbs Lowell W. Hellervik Robin Norgaard Kelleher
Vice Chairman Secretary Treasurer Director of Public Programs Director of Public Policy CFO Development Director Director of Operations Director Director Director Director Director Director Director
Jack Lanners
Director
Kenneth W. Morris Thomas J. Rosen Ronald J. Schutz Charles E. Spevacek Bruce Taher Tara J. Anderson Molly C. Cronin Bill Guidera Michael Hayden Scott M. Honour Sheila C. Kihne Tom Mason Rick Penn Scott F. Peterson Brent Robbins Kurt P. Schellhas Tim J. Walsh Eduard Michel
Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Former Director
Harrison T. Grodnick
Former Director
John W. Hedberg
Former Director
The Apercu Group, VP, Author & Speaker Rosens Diversified Inc., CEO Robins, Kaplan, Miller & Ciresi, Attorney Meagher & Geer, P.L.L.P, Attorney Taher Inc., President & CEO Fafinski Mark & Johnson, Attorney Momthink.org, former Corporate Analyst 21st Century Fox, Senior Vice President Other ties unknown FirstCNG, Chairman CoolConservativeGear.com, business owner and author Mason Public Affairs, Director Hutchinson Technology, President & CEO Schwan Food Company, Executive Vice President General Mills, Assistant General Counsel Center for Diagnostic Imaging, Radiologist Ready Credit Corporation, President & CEO Virtual Radiologic Corp., CoFounder Minneapolis Portfolio Management Group, Owner & Manager Wachovia Securities, former Senior Portfolio Manager Firstar Bank of Minnesota, former Assistant Account Manager Hedberg Family Foundation, Retired Business Executive
At least $38,710
John Gibbs
$30,500
Charles Spevacek
$26,350
Lowell Hellervik
$25,800
Amount $24,420
Ronald Schutz
Ronald Eibensteiner
$18,550
1998 2011
Keith Kostuch
$17,200
1999 2011 2002 2011 2001, 2008 1999 2011 1998 2008 2004 2012 2004, 2008 2005 1999 2011 2004, 2006
Thomas Rosen Rick Leggott John Hedberg Jack Lanners Bruce Taher Harrison Grodnick Cheri Yecke Thomas O. Kelly Kimberly Crockett
At least $12,900 $11,250 At least $9,250 $6,500 $4,500 $2,800 $2,100 $1,850 $1,500
Notable Recipients Norm Coleman, the Republican Party of Minnesota, National Republican Congressional Committee, Thomas Foley, Jim Ramstad, George W. Bush, John Thune, John Kline. Michele Bachmann, Norm Coleman, Chip Cravaack, Freedom Club Federal PAC, Erik Paulsen, John McCain, Tim Pawlenty Norm Coleman, Mark Kennedy, John Kline, Rod Grams, Randy Demmer. John Kline, Mark Kennedy, Norm Coleman, Freedom Club Federal PAC, Republican Party of Minnesota, George Bush, Robins Kaplan PAC, John McCain, Tim Pawlenty, Freedom First PAC Norm Coleman, Richard Berg, Kristi Noem, Mark Green, John Kline, John Ashcroft, Elizabeth Dole, Thomas Cotton, Mark Kennedy. Michele Bachmann, Sharron Angle, the Republican Party of Minnesota, Jeff Flake, Paul Ryan, Club for Growth PAC, Pat Toomey, Sean Duffy, Scott Brown, Steve Forbes, Timothy Walberg, Ron Johnson, Chip Cravaack, Rick Santorum Norm Coleman, Chip Cravaack, Tim Pawlenty, George W. Bush McCain Victory 2008, Coleman Leadership Committee, Sean Duffy, Freedom First PAC, Tim Pawlenty, Erik Paulsen, Mark Kennedy Erik Paulsen, Tim Pawlenty, RNC, Rod Grams, Steve Forbes, Citizens Club for Growth Republican Party of Minnesota, Dennis Newinski, Rod Grams Republican Party of Minnesota, John Kline, Erik Paulsen, Terri Bonoff, Boehner for Speaker, Goli Ameri National Republican Congressional Committee, McCain Victory Fund Cheri Yecke for Congress Paul Ryan, John Thune, Tim Pawlenty, Mark Kennedy, Rod Grams, Timothy Penny George Bush, Mark Kennedy
Notable Recipients
Norm Coleman, Mark Kennedy Norm Colemans 2008 Campaign Norm Coleman
CAE staff and directors contributed at least $656,71845 to candidates and committees at the state level from 1998 2012. As with the federal contributions, nearly all contributions were made to conservative organizations and candidates. Contributor Amount Year 1998 2011 Notable Recipient(s) Freedom Club State PAC, HRCC, Tom Emmer, Tim Pawlenty, Taxpayers League MN Victory Fund, Norm Coleman, Republican Party of Minn, Jeff Johnson Minn. Business Partnership PAC, HRCC, Tom Emmer, Marty Seifert, Republican Party of Minn, Senate Victory Fund, Patricia Anderson, Minn Chamber of Commerce Leadership Fund, Tim Pawlenty HRCC, Tom Emmer, Freedom Club State PAC, Tim Pawlenty, Brian Sullivan, Thomas Kelly, Charles Weaver, Republican Party of Minn., RKM&C Fund, A Stronger America-Minnesota Republican Party of Minn, St. Paul Area Chamber of Commerce PAC, HRCC, Tim Pawlenty, Jeff Johnson, Edward Matthews, Norm Coleman Minn. Cable Comm Assoc. PAC, Jan Schneider, Minn. Business Partnership, Norm Coleman, James Gilbert, Margaret Cavanaugh, Charles Weaver, Tim Pawlenty, Brian Sullivan, Thomas Kelly, Senate Victory Fund, RKM&C Fund, Patricia Anderson, Jeff Johnson Tim Pawlenty, Michael Hatch, Lori Swanson, Tom Emmer, HRCC, Joe Hoppe, Meagher & Geer PLLP Political Fund, Lorie Gildea
Thomas Rosen
$122,260
1998 2011
Ronald Schutz
$101,994
1998 2011
Lowell W. Hellervik
$42,240
1998 2010
$22,935
1998 2010
Charles Spevacek
$21,175
2002 2011
45
Amount $17,842
Year 1998 2011 1999 2011 1998 2010 2000 2011 1998 2010
$15,292
$9,750 $8,900
Thomas Kelly
$8,350
John Hedberg Keith Kostuch Mitchell Davis Bruce Taher Rick Leggott Thomas Stauber Carolyn Erickson Kim Crockett Mark S. Larson Kenneth Morris Scott C. Rile
$6,160 $4,750 $3,000 $2,050 $1,750 $1,000 $1,000 $545 $500 $250 $250
1998 2011 2010 2011 2002 2011 2003 2010 2000 2010 2006 2010 2006, 2009 2005 2006 2009 2006
Notable Recipient(s) DRIVE (Democrat Republican Ind. Voter Edu.), Freedom Club State PAC, Tom Emmer, Tim Pawlenty, Norman Coleman, Republican Party of Minn., Paul Kohls, Lorie Gildea Freedom Club State PAC, Tim Pawlenty, Thomas Kelly, MABC PAC, Marty Seifert, Jeff Johnson Tim Pawlenty, Republican Party of Minn, Patricia Anderson, Michael Fetsch, Charles Weaver, Norm Coleman, Brian Sullivan, James Gilbert Freedom Club State PAC, Andrea Keiffer, Patricia Anderson Mark Ritchie, Tim Pawlenty, DFL House Caucus, Patricia Anderson, Thomas Kelly, Judi Dutcher, Dorsey Political Fund, Jeff Johnson, Alan Page, Hubert Humphrey, David Lillehaug, Norm Coleman, Mary Kiffmeyer, HRCC, Tom Emmer Jeff Johnson, Tim Pawlenty, Republican Party of Minn., HRCC, Senate Victory Fund, Marty Seifert, Tom Emmer HRCC, Keith Downey, Patrick Mazorol, Freedom Club State PAC, Tom Emmer Tim Pawlenty, Minn AGPAC, Peter Trocke, Andrew Davis Twin West Chamber of Commerce PAC, Steve Kelley, Mart Seifert, Terri Bonoff Geoffrey Michel, Marty Seifert Julianne Ortman Tom Emmer Jeff Johnson, 33rd Senate District RPM Tim Pawlenty Marty Seifert Tim Pawlenty
or practice between a labor organization and an employer that takes force or is extended or renewed after adoption of this section and that violates this section is unlawful and unenforceable. Piggybacking on Thompsons ALEC-based efforts to pass Right to Work in Minnesota, CAE released a report in support of the measure. Not surprisingly, the SPN-written report was shown to be both duplicative to reports from other states and inaccurate. The CAE report is substantially similar to a report released in Ohio a few months later by Ohios right-wing think tank the Buckeye Institute. CAEs report48 was released in January 2012 and Buckeyes report49 was released in March 2012. Both have the same three authors, substantially similar introductions and conclusions (some parts are word-for-word the same), and use the same facts and research. In fact, these same three authors released similar RTW reports in Indiana50 and Michigan,51 illustrating the reach of SPN within and outside of Minnesota. This outright duplication also calls into question the validity of CAEs research on RTW, and raises doubts about the credibility of their so-called reports overall. Both the MN AFL-CIO52 and Minnesota SEIU State Council53 released fact sheets against CAEs RTW report that provide further evidence of the biased and inaccurate information CAE was pedaling. Not surprisingly, Policy Matters Ohio54 criticized the Buckeye Institutes report, which is largely the same as CAEs report. Policy Matters used research from the Economic Policy Institute55 to debunk the claims Vedder and Buckeye made in their report. Below are a few examples of how CAEs and the Buckeye Institutes RTW reports are largely the same. Some of the same passages can also be found in the Indiana and Michigan reports. Similar language is highlighted below: Minnesota Right to Work: How the Freedom of Workers in the Workplace Enhances Prosperity (Center of the American Experiment, January 2012)56 Ohio Right to Work: How the Economic Freedom of Workers Enhances Prosperity (Buckeye Institute, March 2012)57
Executive Summary Unlike most southern and western states, Unlike most southern and western states, Ohio Minnesota has no right-to-work law, a has no right-to-work law. Such laws lower law which guarantees workers the labor costs, increase business investment, and freedom to join, or not to join, a labor tend to increase income levels. The evidence Center of the American Experiment, January 2012 Buckeye Institute, March 2012 50 Indiana Chamber of Commerce, January 2011 51 www.protectingtaxpayers.org, accessed 09/03/13 52 www.mnaflcio.org, accessed 09/03/13 53 SEIU MN State Council, 01/26/12 54 Policy Matters Ohio, 03/28/12 55 Economic Policy Institute, 09/15/11 56 Center of the American Experiment, January 2012 57 Buckeye Institute, March 2012
48 49
union as the individual worker may for Ohio suggests that a majority of Ohios choose. A wealth of research suggests substandard performance with respect to that right-to-work laws are a significant economic growth since the late 1970s would factor in explaining state variations in have been eliminated if a right-to-work law industry location, human migration, and had been adopted several decades ago. economic growth. The evidence Specially, we estimated that personal income presented here for Minnesota suggests for a family of four, on average, would have that the states economic growth would been about $12,000 higher annually if the have been greater if a right-to-work law Buckeye State had adopted a right-to-work law had been adopted several decades ago. in 1977. Ohios overall growth rate has been Specifically, we estimate that personal abysmal in recent decades, and the passage of income per capita, on average, would right-to-work laws would end monopolistic have been $2,360 to $3,072 higher practices in labor markets that have been an annually in 2008 if Minnesota had important factor in the states economic adopted a right-to-work law in 1977. On a stagnation. Moreover, the cost of doing so per household basis, personal income would be trivial. The state has had a good deal would have been somewhere between of discussion of the liberalizing of labor $5,960 to $7,740 higher if such a law had markets for public employees (for instance, been in place. Instead of being 14th in the Senate Bill 5), and the evidence suggests even nation in per capita income in 2008, the greater benefits would be conferred by a state would almost certainly have been in generalized right-to-work law that applies to the top 10. Excepting the low-tax and all workers. resource rich Dakotas, Minnesota probably would have led the Midwest in economic growth. The passage of a rightto-work law would end monopolistic practices in labor markets that have been an important factor in keeping the state from being nearer the top with respect to the standard of living of its citizenry. Moreover, the cost to the state government of doing so would be trivial as enacting a right-to-work law would require no expenditure of taxpayer dollars. Common Law Tradition Prior to federal legislation passed during Prior to the federal legislation passed during the 1930s, labor unions were largely the 1930s, labor unions were largely governed under the same common law governed under the same common law principles that apply to ordinary citizens. principles that apply to ordinary citizens. Under this system, special labor laws were Under this tradition, there was no need for unnecessary because the Constitution itself special labor laws because the Constitution guarantees property and contract rights. itself guarantees property and contract Disputes between labor and management rights. Any disputes that may have arisen were handled through private negotiations between labor and management were or, if necessary, in court. Unions were handled through private negotiations or, if permitted to organize workers, but union necessary, in court. If employees thought membership could not be a requirement they could be better represented by a union,
they were free to join one, but unions were not permitted to make membership a requirement for employment. Similarly, employers were also free to decide whether they desired to enter into contractual agreements with unions Theory Behind Right-to-Works Contribution to Economic Growth It is the goal (or at least is supposed to be the It is the goal of labor unions to increase goal) of labor unions to increase wages and wages and benefits for their members. A benefits for their members. A union that does union that does not raise wages for not raise wages for workers above what workers above what exists in a non-union exists in a non-union environment is usually environment is usually perceived as perceived as unsuccessful by its unsuccessful by its membership membershipparticularly since workers particularly since workers have to pay dues have to pay dues to maintain the paid union to maintain the paid union leadership who leadership and negotiate and administer negotiate and administer labor contracts. labor contracts. Historically, there is some Historically, there is some evidence that the evidence that the short-run effect of short-run effect of unionization is to raise unionization is to raise wages, perhaps by 10 wages, perhaps by 10 percent or more from percent or more from what would otherwise what would otherwise exist. exist. Conclusion America operates with Depression-era labor laws that are increasingly out of touch with the realities of a global labor market. The Taft-Hartley Act of 1947 provided states an America operates with Depression-era opportunity to sharply reduce some of the labor laws that are increasingly out of adverse effects of these laws by passing touch with the realities of a global labor right-to-work legislation that gives workers market. The Taft-Hartley Act of 1947 the right to decide whether they wish to join provided states an opportunity to sharply and/or pay its dues. Ohio has failed to avail reduce some of the adverse effects of these itself of that opportunity thus far, and has laws by passing right-to-work legislation paid a high economic price for not doing so. that gives workers the right to decide RTW laws attract productive resources (both whether they wish to join and/or pay its capital and labor) to a state, and the absence dues. Minnesota has failed to avail itself of of such laws repels them. Using econometric that opportunity thus far, and has paid a procedures, we estimate that in the year high economic price for not doing so. RTW 2008, the typical Ohio family of four would laws attract productive resources (both have had over $12,000 more income had capital and labor) to a state, and the RTW laws been adopted 31 years earlier. absence of such laws repels them. Even if those estimates are highsay by a Following a decade of relatively lower factor of twothe impact of Ohio moving to economic growth, it may well be time for become a right-to-work state is potentially Minnesota to become the 23rd state to pass quite sizable. Ohio has suffered a growth a RTW law. deficit for several decadesgrowing less than the nation as a whole, and its income levels have fallen below several southern stateshistorically the poorest part of the
for employment. Similarly, employers were also free to decide whether they desired to enter into contractual agreements with unions.
nation. In a time of budget stringency, governments cannot afford to use financial resources to impact growth, but they can change the legal environment in which labor, the most important factor of production, operates. It seems to us the time has come for Ohio to move towards positive consideration of a right-to-work law. While ALEC, SPN, and Minnesotas affiliate CAE were unsuccessful in pushing the anti-worker RTW amendment in 2012, there is a very real threat that this amendment, and its corporate backers, will be successful in the future. Voter ID The right to vote is one of the most fundamental rights in a democracy, but now that right is under attack across the country. In 2011, legislatures in 18 states debated Voter ID legislation, which would create unnecessary hurdles to voting by requiring law-abiding citizens to show governmentissued photo identification in order to cast a ballot. Wisconsin was one of the states that passed a Voter ID bill in 2011 with the support of ALEC alumnus Governor Scott Walker. The Wisconsin bill goes even further than the ALEC model bill by requiring the photo identification include a persons current address (even if the ID is not expired). It was blocked in the courts. However, this national push for Voter ID restrictions that make it harder for Americans to vote is further evidence of the vast impact of ALEC and SPN networks nationally and the way they push cookie-cutter legislation in lockstep. The ALEC model language on Voter ID is as follows:58 (b) Any person desiring to vote in this state shall present proof of identity to the election official when appearing to vote in person either early or at the polls on Election Day. (e) An identification card shall be issued without the payment of a fee or charge to an individual who: (1) Does not have a valid drivers license; and (2) Will be at least eighteen (18) years of age at the next general election, special election, or municipal election. In Minnesota, the 2012 constitutional amendment (HF 2738) that was defeated proposed:59 An amendment to the Minnesota Constitution is proposed to the people. If the amendment is adopted, article VII, section 1, will read: Section 1. (a) Every person 18 years of age or more who has been a citizen of the United states for three months; who has resided in the precinct for 30 days next preceding an election; who presents valid photographic identification as prescribed by law; and whose eligibility to vote
58 59
has been established under this section shall be entitled to vote in that precinct. All voters must be subject to identical standards of eligibility verification before voting, and the state must make photographic identification available to eligible voters at no cost to them. The place of voting by one otherwise qualified who has changed his residence within 30 days preceding the election shall be prescribed by law. The following persons shall not be entitled or permitted to vote at any election in this state: A person not meeting the above requirements; a person who has been convicted of treason or felony, unless restored to civil rights; a person under guardianship, or a person who is insane or not mentally competent. This language is strikingly similar to ALECs model language, and once again, SPN network member CAE stepped in to release a report later proven largely false in support of the ALEC-based effort to restrict voting rights with Voter ID in Minnesota. CAEs Voter ID report was proven false by a coalition of academics and advocates in the summer of 2012. Professor Max Hailperin of Gustavus Adolphus College wrote an article60 criticizing CAEs report on photo ID as biased and using faulty research. Non-partisan organizations Common Cause and Citizens for Election Integrity Minnesota (CEIMN) (both who criticized CAEs support for photo-ID)61 also teamed up with a critical, line-by-line debunking of the 2010 CAE report on voter fraud. CEIMN arguments against the report were:62 'Citizens for Election Integrity Minnesota and Common Cause Minnesota... released a report that refutes erroneous claims about the 2008 US Senate recount and Minnesotas election law and practice, made by the Center of the American Experiment (CAE) - "No Longer a National Model." Read our report here. CAE proposes significant changes in Minnesotas election systems. However, the CAE report provides no documentation to back up its claims and, upon close scrutiny, its claims are found to be highly inaccurate and misleading. For example, they state that the rejection rate for military absentee voters was 16 times greater than regular absentee voters, when in fact it was double. In our response we argue that the orderly resolution of the 2008 Senate recount stands in sharp relief to the more chaotic results of contests in Florida (2000) and Ohio (2004). We also state that the preponderance of evidence supports our conclusion that Minnesota's elections are indeed a national model.' Voter ID restrictions are another strong example of CAE advancing a nationalized agenda written by ALEC and SPN and delivered in Minnesota locally. Even if CAE needs to trump-up evidence to support the ALEC-written bill, they appear to be more than willing to do so. Assaults on Public Education Controversial CAE fellow Katherine Kersten has been a consistent and vocal public school detractor in Minnesota. Her criticisms have ranged from state curriculum standards to anti-bullying legislation and even to efforts to make Minnesota schools more welcoming to diverse students.
Behind Kerstens efforts, though is an ALEC/SPN agenda to turn the billion-dollar investment in public schools into a new source of revenue for corporate education profiteers. 63 ALECs education agenda is fairly straightforward: move public resources into private schools, drive down labor costs by de-professionalizing teaching, and discredit public education to facilitate corporate takeovers of schools.64 ALEC has written literally dozens of pieces of model legislation to achieve these aims, and SPN policy think thanks throughout the country are churning out reports and opinion pieces for newspapers in support of these privatization initiatives. 65 Kersten recently showed just how far she was willing to take her crusade when she and CAE released a report entitled, Our Immense Achievement Gap: Embracing Proven Remedies While Avoiding a Race-Based Recipe for Disaster.66 The National Education Policy Center (NEPC) knocked CAE for shoddy and unbalanced analysis in irredeemably awful education study. In February 2013, the University of Colorados National Education Policy Center announced it was giving a Bunkum Award to Kersten and CAE for bad educational research. 67 The NEPC gave what it called the Scary Black Straw Man Award to CAE for a CAE report that argued against Minnesota efforts to increase racial diversity in schools. According to the NEPC, CAEs report was irredeemably awful in that it set up straw men, provided a shoddy and unbalanced literature review, and reeks of hypocrisy.68
Under the expenditures test, an organization can quantify exactly how much lobbying it may engage in each year. A sliding scale specifies the amount an organization may expend on all lobbying activities in relation to the amount it spends on most of its other activities (i.e., expenditures in furtherance of the organization's tax-exempt purposes). Under Section 4911(c)(2) of the Code, the maximum allowable annual lobbying is the sum of: 20% of the first $500,000 of an organization's exempt purpose expenditures, plus 15% of the second $500,000 of such expenditures, plus 10% of the third $500,000 of such expenditures, plus 5% of the remainder of such expenditures, with a cap of $1 million in annual lobbying expenses. On top of this cap, there is a further restriction that an organization may not spend more than 25% of its permitted lobbying total on grassroots lobbying. It is important to note that lobbying expenditures include, among other things, the value of the allocable portion of staff time attributable to lobbying; such salary allocations must be substantiated through the use of time records (see below). If CAE and its staff is spending more than the above outlined limits on advocacy for example on the Voter ID amendment in 2012 then they are in violation of federal tax law. Perhaps more startling is that CAE is unwilling to disclose their lobbying activities. Recently, Kevin Diaz of the Star Tribune reported that CAE officials Pearlstein and Crockett refused to disclose if they were lobbying or spending money to defend ALEC-written Stand Your Ground laws in Minnesota. According to Diazs report, Crockett indicated that CAEs spending was nobodys business. 70 Actually, CAE is required to report their spending on lobbying both to the Minnesota Campaign Finance Board and to the IRS. A refusal to disclose lobbying expenditures is a violation of both state and federal law.
70
California Energy Commission, 08/16/12 www.energy.ca.gov, accessed 09/03/13 73 California Energy Commission, 08/16/12 74 www.afdc.energy.gov, accessed 09/03/13; www.afdc.energy.gov, accessed 09/03/13 75 Center of the American Experiment, 04/23/13 76 Center of the American Experiment, 04/23/13 77 Center of the American Experiment, 12/17/12 78 Center of the American Experiment, 05/15/13
71 72
Additionally, FirstCNG is listed as being represented by Natural Gas Vehicles for America (NGVAmerica), a national organization that advocates for the natural gas vehicle industry.79 While CAE has decried the 2009 federal stimulus,80 NGVAmerica has touted it for providing billions of dollars in new funding for transportation related programs81 including funds for the transition to natural gas powered vehicles and has advocated incentives targeting the industry.82 CAEs attacks on the American Recovery and Reinvestment Act have included: In a 2011 column republished on CAEs website, Katherine Kersten wrote, Obama's policiesthe gargantuan, failed stimulus; out-of-control spending; Obamacare and other huge expansions of government, and an out-of-control regulatory state not only failed to extricate us from economic stagnation, but made our problems far worse. 83 An August 2010 CAE publication included the following passage, attributed to Kim Crockett, President of the Minnesota Free Market Institute: President Obama and Congress pile on bailouts and stimulus spending, new regulatory schemes, and massive legislation based on faulty premises and bad science (e.g., ObamaCare, Cap and Trade). All of this only further distorts markets and adds to the cost of business.84 In a 2011 CAE symposium transcribed on CAEs website, software company owner Gary M. Miller ridiculed ARRA for benefiting his company, stating, I was one of the last people who needed a stimulus.85 A September 2009 CAE publication called the stimulus an example of the redistributive state.86
As the campaign for governor continues, Honour will face a simple question: where and to whom do his loyalties lie? Do they lie with his corporate aims and corporate-backed organizations like CAE, or do they lie with Minnesotans? Perhaps the strongest illustration of Honours divided loyalties is on government pensions. Honour is among a number of Republican candidates seeking to better portray the muchderided87 private equity industry by noting that investors have included sympathetic entities such as pension funds, according to Politco. Honour claims, We brought in state pension plans as investment partners and they received the vast majority of any profits we made.88
www.nvgc.org, accessed 09/03/13 Center of the American Experiment, Fall 2010 81 www.nvgc.org, accessed 09/03/13 82 www.nvgc.org, accessed 09/03/13 83 Kersten, Star Tribune, accessed 09/06/13 84 Center of the American Experiment, August 2010 85 Center of the American Experiment, 07/18/11 86 Center of the American Experiment, September 2009 87 Politico, 05/30/13 88 www.honourforgovernor.com, accessed 09/03/13
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Meanwhile, CAE has advocated for replacing state employee pensions in Minnesota with a 401(k)style defined contribution plan,89 calling guaranteed pensions unsustainable.90 Honour is clearly trying to have it both ways. On the one hand, he portrays himself as pro-pension. On the other, he is on the board of an organization specifically attempting to eliminate public pensions. This again raises questions about where Honours loyalties actually lie.
Center of the American Experiment, 04/10/13 Center of the American Experiment, 04/05/13 91 www.mikemcfadden.com, accessed 09/30/13 92 Center of the American Experiment, Fall 2012 93 Center of the American Experiment, 02/05/13 94 Politics in Minnesota, 08/07/13 95 MinnPost, 01/25/10
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Conclusion
CAE is deeply connected to politicians in Minnesota. Its leaders invest time and resources into influencing these individuals to support a nationalized, corporate agenda by directly lobbying and releasing research often generated by SPN or affiliates in support of ALEC legislation. These connections and the legality of this work deserve close scrutiny. In the end, however, it is clear that the network of corporate influence is vast and decidedly not working on behalf of everyday Minnesotans.