By Adam Pagnucco.
I worked at the county council when the original public financing bill was passed. Here is one point that was repeated over and over by the bill’s supporters: public financing will end the influence of “special interests.”
Boy were they wrong!
Since public financing took effect in the 2018 cycle, I know of six different outside groups that were founded to play in our county’s elections. They are:
Empower Montgomery Inc.
Participating organization
Registered 6/13/18, currently closed
Contributors: Real estate industry
Spending: $129,059
This group was established by Washington Property Company President Charlie Nulsen and sent out scorecards in the 2018 primary. They were registered as a participating organization and did not endorse.
Progressive Maryland Liberation Alliance
Super PAC
Registered 3/30/18, currently active
Contributors: Mostly unions
Spending: $1,059,365
Founded by Progressive Maryland, this group supported Marc Elrich and opposed David Blair and Nancy Floreen in 2018. They played in many elections in 2018 and 2022 so most of their spending listed above was probably not in Montgomery County.
County Above Party PAC
Super PAC
Registered 8/29/18, currently closed
Contributors: Real estate industry
Spending: $569,480
Another Nulsen group, they supported Floreen and opposed Marc Elrich and Robin Ficker in the 2018 general election.
Montgomery Neighbors PAC
PAC
Registered 9/18/18, currently closed
Contributors: Unions and civic activists
Spending: $51,714
Founded by former Rockville mayor candidate Drew Powell, this group supported Elrich and opposed Floreen in the 2018 general election.
Progressives for Progress
Super PAC
Registered 4/29/22, currently active
Contributors: Real estate industry
Spending: $733,336
A third Nulsen group, they supported David Blair, Andrew Friedson, Marilyn Balcombe, Amy Ginsburg, Sidney Katz, Brian Anleu, Natali Fani-Gonzalez, Dawn Luedtke, Gabe Albornoz, Evan Glass, Scott Goldberg and Tom Hucker in the 2022 primary. These were the same Democratic candidates who were endorsed by the realtors.
Affordable Maryland PAC
Super PAC
Registered 6/22/22, currently active
Contributors: Facebook co-founder Dustin Moskovitz, real estate industry
Spending: $1,060,766
This group ran negative TV ads against Elrich in the 2022 primary.
So there it is, more than $2.5 million in independent expenditures spent to influence our elections since public financing took effect. That does not count the multi-jurisdiction Progressive Maryland Liberation Alliance. Nor does it count the groups who regularly endorse and engage in their own political activity such as the unions, the realtors and the Sierra Club.
Public financing has not reduced the political activity of interest groups. It has merely re-routed the checks away from candidate accounts and towards independent committees. Many, many groups still send out questionnaires, make endorsements, run social media and communicate with their members and the public about whom they support and oppose. Candidates try to cultivate them regardless of which campaign finance system they use.
And what do these groups get? The real estate industry is on its heels now (primarily because of progressive activity), but they did get Thrive 2050, an end to school moratoriums and multiple property tax abatements on varying kinds of development projects. County employee unions have received generous contracts with raises ranging to double digits. CASA got rent control. The public got tax hikes to pay for new county spending. And all of this happened under a majority of county elected officials who used public financing.
Montgomery County interest groups are as active now as they have ever been, especially on the left. Indeed, their political activities are protected by the U.S. Constitution’s first amendment and the Supreme Court’s 2010 Citizens United decision. (One wonders if the IRS’s rules limiting lobbying activity by non-profits affect their behavior at all.)
Public financing has its virtues, but you should never believe that it curbs interest group influence. That is a major lesson from our county’s adoption of this system. Elected leaders in Maryland and beyond, take heed.