The Many Ways to Shuffle Around Money and Influence

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Dan McGowan’s recent Boston Globe article about Democrat Providence Mayor Jorge Elorza’s curious fundraising relationship with a local nonprofit, the Providence Tourism Fund, is a excellent representation of the way things increasingly work in politics:

Because there is no state law prohibiting politicians from raising money for nonprofits, the operation appears to be legal. But it has created a “back door way” for companies to “ingratiate themselves with public officials,” said John Marion, the executive director of Common Cause Rhode Island, a good-government advocacy group. …

Elorza, who was first elected in 2014 and won another four-year term last year, has raised more than $500,000 for the tourism fund, using a portion of the money to travel to places including China and New Orleans.

That’s not all.  In keeping with the practices of Democrat Governor Gina Raimondo, the nonprofit is also part of a larger job network for Elorza’s political allies.  When he makes calls to solicit money for the nonprofit, Elorza goes to Campaign Finance Officers, “the consulting firm that has overseen his political fund-raising operation for five years.”  Those dots connect much more closely:

When Elorza took office, he installed three of his supporters as the sole members of the fund’s board of directors.

One of those three is Meg Clurman, who is a partner at the aforementioned Campaign Finance Officers.  One of the organization’s employees is Andrew Moore, who is also Elorza’s campaign finance director and has been paid by the Providence Tourism Fund in the past.

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An important lesson from this revelation is that the very idea of campaign finance reform is wrongheaded.  Once a politician hits a certain level of money and power, the opportunities to find workarounds are too extensive.  Giving him travel money, helping to keep his allies employed, and even providing him money to spend on feel-good things through a nonprofit are all tangible benefits that donors are providing to the mayor.

Thus, laws that target more straightforward transactions disproportionately trip up only those who are trying to build momentum in order to make provide accountability through competition at the ballot box, which is where corruption ultimately has to be called to account.



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