Reform law could factor into election

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By Ed Tibbetts | Sunday, July 2, 2006 12:55 AM CDT | () comments

Few people know about it, but a small provision in the 2002 campaign finance reform law could become a factor in Iowa’s 1st District congressional race this year.

It’s called the Millionaire’s Amendment.

The provision says if a House candidate lends or contributes more than $350,000 of his own money to a race, in some circumstances the limits on an opponent’s donors can triple from $2,100 to $6,300.

Republican candidate Mike Whalen, the founder of the Machine Shed restaurant chain, bumped up against the threshhold before the June 6 primary, devoting about $340,000 to his campaign. And a strategist for his general election opponent, Democrat Bruce Braley, says they have no doubt the amendment will come into play this year.

“Mike Whalen is worth $100 million, and he really wants to be a congressman,” says Jeff Link, the strategist.

A personal financial disclosure Whalen filed last year puts the value of his assets at between roughly $40 million and $110 million.

The disclosures require candidates and congressmen to state a range of values for their assets.

“There is no contest as to who’s the candidate with the most means in this race,” Link says.

If the threshhold is broken, Link says, the campaign is ready with a list of contributors who have already given their maximum. And he says they’re willing to give even more.

Braley’s donor base is primarily made up of trial lawyers, and they’ve given generously to the campaign.

If they are allowed to give triple the limit, that could mean a financial boost to the Braley campaign.

A strategist for Whalen says there’s been no decision yet how much, if any, of his personal funds will be put into the general election.

Either way, he said, the campaign doesn’t intend to breach the $350,000 threshhold. Whalen starts with a clean slate in the general election.

“The plan is to go out and raise the money,” says Steve Grubbs, a consultant based in Davenport.

Grubbs dismisses the idea Braley won’t be able to match Whalen financially, and he says the Democrat actually has a financial advantage because of his connection to the legal profession.

Braley, a lawyer from Waterloo, is a past president of the Iowa Trial Lawyers Association.

“Every trial lawyer in the country who has been successful at suing people is being hit up by the Braley campaign,” Grubbs said.

During the primary campaign, Braley raised about $571,000 through mid-May, second only to Whalen. There were five other candidates running. Most of Braley’s money came from lawyers.

Braley has defended his financial base, saying his contributors recognize his willingness to stand up to special interests.

Meanwhile, Link said there’s next to no chance Braley will breach the $350,000 threshhold.

The value of his assets is between about $300,000 and $900,000, according to the financial disclosure form he filed last year.

When it was being debated, congressional backers of the Millionaire’s Amendment said it would help curb the financial advantages a wealthy candidate could bring to a race. Critics called it incumbent protection.

In any case, it’s had little, if any, impact in the two election cycles it’s been in effect, said Jennifer Steen, author of “Self-Financing Candidates in Contemporary American Elections.”

In the 2004 congressional elections, the threshhold was triggered by 43 candidates. In 2002, 57 candidates passed the mark.

As yet, it isn’t clear how much money the 1st District campaign will cost. But it’s clearly going to be an expensive campaign.

National Journal, a Washington, D.C., publication, picked it as the top race in the country.

Incumbent Rep. Jim Nussle, R-Iowa, is vacating the seat to run for governor.

Already, the primary pushed fundraising in both parties past the $2 million mark, an extraordinary feat in a district that, for years, saw little spending because of the limits ex-incumbent Rep. Jim Leach, R-Iowa, put on himself. He wouldn’t take PAC money.

Link, Braley’s consultant, warns that late personal contributions by Whalen could be a factor in the race.

In the last two weeks of the GOP primary, Whalen dipped into his personal funds to contribute $65,000 to his campaign.

“It could be a huge advantage for him. It’s when his wealth will matter most,” he said.

It’s also when the Braley campaign would have little time to hit up maxed out contributors for more money.

But, Steen, an assistant professor of political science at Boston College, says most political professionals know that it’s better to put the money in early than late.

Otherwise, “they’re not going to get as much bang for their buck,” she says.

Ed Tibbetts can be contacted at (563) 383-2327 or etibbetts@qctimes.com.