Emanuel's PAC Money Flows Out Of Town, Buys Influence Here
By John Dodge
CHICAGO (CBS) -- Two years after she was appointed by Mayor Rahm Emanuel as alderman of the city's 7th Ward, Natashia Holmes had a problem.
Facing her first open election for the seat on city council, Holmes was facing a field of seven opponents and she had very little cash in her campaign fund.
According to campaign finance reports, Holmes ranks as the "poorest" incumbent alderman, with only $12,609 in her election spending cash box. Two of her opponents had raised more.
The solution to her problem came in the form of Chicago Forward, a political action committee tied to the mayor.
In the past month, Chicago Forward spent nearly $37,000 to give Holmes a boost and thus increasing her spending power by 288 percent. By one measure, the cash worked. After Tuesday's election, Holmes led the field with 25 percent of the vote, ensuring her spot in the April 7 runoff.
By another measure, the money has the potential to buy the mayor absolute influence. Without that source of money, Holmes' political future would be in question.
"The real problem is that the money is buying 100 percent support for Mayor Emanuel in the city council not representing an alderman's constituency," said Dick Simpson, a political science professor at University of Illinois-Chicago and former alderman himself.
By law, political action committees cannot donate directly to a candidate. So, they pay for things like "political communications" and "polling."
In this case, Chicago Forward contracted with publishing companies to help with direct mail campaigns, according to CEO Becky Carroll, who is responsible for developing the messaging and design of the mailers. She personally reviews every piece of mail.
Holmes was not the only beneficiary. In addition to the two dozen alderman who also received Chicago Foward's help in the past 30 days, San Francisco-based AMS Communications, a small political consulting company, enjoyed a sizeable windfall as well.
According to expense records, Chicago Forward sent about $650,000 to AMS for "political communications" on behalf of 26 alderman. Another $136,000 went to another California company called Trilogy Interactive.
Ald. Deb Mell indirectly received $58,000 from Chicago Foward, but it wasn't enough for her to avoid a runoff in April. As the last few precincts were counted, she slipped just below the magic 50 percent plus 1 vote to win outright.
AMS did not respond to requests for comment, but the company has produced political brochures and mailers for candidates, including presidents Clinton and Obama and dozens of members of Congress, for several decades.
When Emanuel began his first term, he made bringing local jobs to Chicago a priority. And he delivered on that promise. He touted new companies adding a presence in the city on a seemingly weekly basis. For a time, his media staff would send out a tally of jobs added.
Yet, nearly $800,000 was outsourced to the West Coast for this year's election.
To be clear, other PACs do this as well. The PAC representing the Service Employees International Union sent money to East Coast publishers for similar services, but not nearly on the scale of Chicago Forward.
According to disclosure statements, other PACS were able to award their money to local companies under the label of "political communications."
One of the priorities for Chicago Forward, according to its website, is to foster "opportunities for businesses to grow and expand good-paying jobs for our citizens."
Carroll was asked about this discrepancy. Did the PAC consider spending their money locally?
"While I would have liked to have worked with some I know who do similar work locally, they either are vendors for other mayoral or aldermanic races and therefore I cannot enlist their services."
For political scientist Dick Simpson, the bigger concern is not the money flowing out of Chicago from Chicago Forward, it's the money flowing in.
According to the PAC's disclosure statements, Chicago Foward raised $2.4 million in 2014 from fewer than 50 donors. That included about $335,000 from outside Chicago, including companies like Wal-Mart and investment fund managers. Most of the donations ranged from $50,000 to $150,000 each.
"I am more concerned that much of the Mayor's and the PAC's money comes from out of state with no real interest in Chicago," Simpson said. "The fact that the direct mail companies are in California bothers me less."
Carroll said about half of Chicago Forward's contributions are from Chicago and 86 percent from Illinois, which include contributors who conduct business or civic work in the city.
As for buying what Simpson calls "100 percent support" for the mayor?
Simpson and his team found that 37 of the 50 aldermen on City Council voted with the mayor 90 percent of the time between 2011 and 2014. Another six voted with him 80 percent of the time.
Chicago Forward rewarded that loyalty as well. For example, Mell voted with the mayor 100 percent of the time.
Another Emanuel 100 percent loyalist, John Pope received about $57,000 in the past month. He picked up 44 percent of the vote against six opponents in the 10th Ward on Tuesday, forcing a runoff against Susan Sadlowski Garza.
