by David Lynn
John “Johnny Doc” Dougherty is a master of campaign finance maneuvering. At any one time, he has several PACs in full operation. Other PACs may lay dormant for awhile, but they are ready to awaken at any given moment.
Most of these PACs are funded through contributions from International Brotherhood of Electrical Workers Local 98 Committee on Political Education, or IBEW Local 98 COPE for short. Union members of Local 98 contribute a small percentage of every paycheck to the Union’s PAC. Dougherty uses these funds to help or hinder candidates not friendly to organized labor.
Dougherty rewards his candidates by giving directly to their coffers. He often does this through the IBEW Local 98 COPE PAC. The list of recipients reads like a who’s who of local and state politicians. Most of the giving is to Democrats, but Republicans also receive money from Local 98. Dougherty has branched out from Philadelphia to the suburbs, New Jersey, and Harrisburg.
Dougherty also rewards his friends by spending money on what are called independent expenditures. For this, he often uses PACs that are started by colleagues of his. IBEW Local 98 COPE PAC will donate money to a different PAC, and the second PAC will spend money on behalf of a candidate, and sometimes in opposition to a candidate. Often, these PACs spend their money on very professional looking direct mail pieces.
Independent expenditures have become one of Dougherty’s most potent weapons. This is due to Philadelphia’s campaign finance limits, which prevent individuals and PACs from giving huge amounts to a candidate’s political campaign. Because independent expenditures are not regulated (and cannot be, thanks to Citizens United), there is no limit to the amount of money Dougherty can spend on a candidate, as long as there is no coordination between Dougherty’s camp and the campaign of the beneficiary.
Registering a PAC in Pennsylvania is an easy process. The paperwork is two pages long. An Employee Identification Number (required by most banks for a bank account) may be obtained over the phone or via the Internet. A PAC requires two individuals as officers, a chair and a treasurer. Because of Dougherty’s clout and many connections, finding volunteers is, most likely, easy.
The use of secondary PACs provides Dougherty with a good number of advantages. Although the funds are traceable at reporting times, casual observers do not know that expenditures such as direct mail are funded by Dougherty. They may come through another PAC with a name such as Philadelphia Phuture, or Building a Better PA PAC. Although there are requirements for reporting expenditures which take place close to an election, these requirements are easily met without tipping one’s hand too much.
Today, we will briefly examine the spending of four of Dougherty’s secondary PACs:
Building a Better Pennsylvania Fund: This PAC has received contributions of $240,000 from IBEW Local 98 COPE as well as a loan of $137,000 in 2014 and 2015.
Brighter Pennsylvania PAC: This PAC has received a contribution of $50,000 from IBEW Local 98 COPE in 2014.
Campaign for a Fresh Start: This PAC has received contributions of $100,000 from IBEW Local 98 COPE in 2014.
New Generation 1 PAC: This PAC has received contributions of $100,000 in 2014 and 2015.
Building a Better Pennsylvania Fund appears to have been started in 2014. According to online records, the chair of the PAC is Wayne Miller. The treasurer is Christopher Rupe. In 2014 cycle 5 this PAC received the following contributions (list incomplete): Brighter Pennsylvania PAC $10,000, IBEW Local 98 $5,000, AFSCME Council 13 $25,000, UFCW 1776 $25,000, International Union of Operating Engineers Local 66 $25,000.
The PAC spent $55,000 on ad production and media buy fees in 2014 cycle 5. In 2014 cycle 6 this same PAC received the following contributions (list incomplete): PFT Committee to Support Public Education $5,000, SEIU Local 668 COPE Fund $5,000, Transport Workers Union PAC $5,000. Brighter Pennsylvania PAC $10,000, IBEW Local 98 Committee on Political Education $40,000, United Steelworkers Political Action Fund $5,000, IBEW Local 5 $25,000, AFT Pennsylvania $5,000, UFCW Local 1776 $10,000, UFCW Local 1776 $5,000.
Expenditures included $55,000 for a media buy, $25,000 for CBS Radio, $46,000 for another media buy, $8,400 to the Delaware County Daily Times, $5,000 for a third media buy, and another $2,000 to CBS Radio. In 2014 cycle 7 this PAC returned $5,000 to Brighter Pennsylvania PAC. Records for 2015 were unavailable at the time of this writing.
Brighter Pennsylvania PAC appears to have been formed in 2014. The chair of the PAC is Joshua M. Bloom, and the Treasurer is Niko Rodriguez.
In 2014 cycle 5 this PAC received $50,000 from IBEW Local 98 COPE and $2,500 from the union itself. It gave $10,000 to Building a Better Pennsylvania Fund. In 2014 cycle 6, the PAC paid $14,408.30 to Strassheim Graphics, and gave $10,000 to Building a Better Pennsylvania Fund. In 2014 cycle 7, the PAC received $5,000 back from Building a Better Pennsylvania Fund.
Campaign for a Fresh Start appears to have been formed in 2014. The chair of the PAC is Mike Mikus, and the treasurer is Jordyn Rush. The following is a partial list of contributions to this PAC in 2014 cycle 4: Pennsylvania SEIU COPE $25,000, IUOE Local 542 Political Action Fund $10,000, Kate McGinty for Governor $25,000, Democratic Governors Association-PA $27,216, Democratic Governors Association-PA $13,608, Tom Wolf for Governor 30,000, Tom Wolf for Governor $25,000, IBEW Local 98 COPE $50,000.
The PAC received a number of in-kind contributions from Tom Wolf for Governor that appear to be related to office space rent. Expenditures for the period totaled $136,751.32 and included mainly payroll, along with reimbursements for Katie McGinty. Contributions for 2014 cycle 5 included the following: APSCUF/CAP-PA $5,000, 1776 PAC $2,500, AFSCME Council 13 Political & Legislative $15,000.
In-kind donations included strategic consulting from Pennsylvania SEIU COP and sublease rent from Tom Wolf for Governor. Expenditures for the period totaled $75,755.40 and included payroll, printing, legal services, insurance, and more reimbursements to Katie McGinty.
2014 cycle 6 saw the following donations to the committees: PP Votes $5,000, IBEW Local 98 COPE $25,000, Doyle for Congress Committee $1,500, 1776 PAC $2,500.
In-kind contributions for the period included $4,182.19 for strategic consulting from SEIU COPE. Expenditures totaled $86,670.25 and included $26,360 for printing, $1,500 for phone services, $3,039.82 to Katie McGinty, $3,000 to Kerry Kirkland for strategic consulting, as well as payroll, staff travel, and other expenses.
Contributions in 2014 cycle 7 totaled $321. Expenditures totaled $45,721.65 and included payroll, insurance, and a reimbursement to Katie McGinty.
New Generation 1 PAC appears to have started in 2010. According to online records, the treasurer of the PAC is Nico Rodriguez. No chair is listed. In 2014 cycle 2, the PAC received $21,200 in contributions including $20,000 from IBEW Local 98 COPE. Expenditures totaled $42,556.57 and included the following: Chiarella’s Ristorante $2,320 (holiday party), Adeline Costible$2,700 (rent), Citizens for Boyle, $1,000 (contribution), Forensic Consultants $850 (legal services), Samuel Stretton, Esq. $4,680 (legal services), Samuel Stretton, Esq. $5,040 (legal services, Samuel Stretton, Esq. $1,941 (legal services), AK Consulting, LLC $7,800 (investigative services). Strassheim Graphic Design $9,161.39 (printing), Democratic Campaign Committee of Phila. $1,500 (tickets to event).
2014 cycle 3 saw $43,750 in contributions, including the following: Steamfitters’ Local 420 COPE Fund $1,000, IBEW Local 98 COPE $20,000, Committee to Elect Bill Keller $1,050, Democratic Campaign Committee of Phila. $4,200, IBEW PAC Voluntary Fund $5,000, Iron Workers Local 405 PAC $1,000, John Condi $1,000, Louis Eni $750, Richard Gibbons $1,000, William Goeller $1,000, F. Joseph Loeper $1,000.
Expenditures for the period by this PAC included the following: Francoluigi’s $1,671.11 (meeting expense), First Ward Democratic Executive Comm. $18,200 (election day GOTV workers), Strassheim Graphic Design $4,339.44 (printing).
2014 cycle 5 saw contributions of $15,285.27 and expenditures of $25,621.13. These contributions included the following: IBEW PAC Voluntary Fund $900, Henry Lewandowski for Judge $2,865.27 Pennsylvania for Allyson 10,000, Harold Honickman $1,000.
Expenditures included the following items: Chiarella’s Ristorante $1,800 (meeting expense), M. Joseph Myers $5,000 (GOTV expenses), EOM Athletic Association $1,000 (rental agreement), Strassheim Graphic Design $4,664 (printing), Adeline Costible $2,200 (rent), Adeline Costible $3,600 (rent), John J. Dougherty $2,873.40 (reimbursement for expenses), Democratic Campaign Committee of Phila. $1,500 (tickets to event).
Contributions in 2014 cycle 6 totaled $24,200. Expenditures were $21,969.03. Contributions included the following: Democratic Campaign Committee of Phila. $3,150, Committee to Elect Bill Keller $1,050, IBEW Local 98 COPE $20,000.
Expenditures included $21,000 to the First Ward Democratic Executive Committee for election day GOTV workers.
2014 cycle 7 saw very little activity. There were no contributions reported to the PAC. Expenditures included $2,700 to Adeline Costible for rent, and $1,000 for Christmas cards.
PACs, as can be seen by the above, are able to generate more support monetarily and with independent expenditures, over and above what city ethic laws permit and to do so legally.