Andy Kroll

Andy Kroll

Reporter

Andy Kroll is Mother Jones' Dark Money reporter. He is based in the DC bureau. His work has also appeared at the Wall Street Journal, the Detroit News, Salon, and TomDispatch.com, where he's an associate editor. He can be reached at akroll (at) motherjones (dot) com. He tweets at @AndrewKroll.

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Missouri Lawmaker: No Welfare If Your Kid Gets Mono or Depression

| Fri Apr. 5, 2013 11:02 AM PDT
sick child

Missouri Rep. Steve Cookson, a Republican, caused a stir last year when he offered a bill to ban any discussion of sexual orientation in public schools outside of traditional sex ed and science instruction. That meant teachers couldn't talk about gay and lesbian issues during class, and gay-straight alliances couldn't meet during the school day. Critics called it the "don't say gay" bill. It died in committee.

Now, Cookson is back in the news for introducing another controversial bill. Children of welfare recipients can't miss more than 10 percent of their classes—roughly three weeks of school—or their family loses welfare benefits. The bill, which would amend the state's welfare statute, is a single sentence long:

School age children of welfare recipients must attend public school, unless physically disabled, at least ninety percent of the time in order to receive benefits.

You'd be hard-pressed to find anyone who thinks it's OK to skip three weeks' worth class during the school year. But what about an unexpected illness like mono or clinical depression? Cookson has yet to clarify what exactly qualifies for the "physically disabled" exemption in his bill. And so unless mono qualifies as a physical disability, the critics who deride Cookson's bill the "don't get sick" bill make a fair point. A entire family could lose its state assistance if their kid got mono from a classmate.

As the Kansas City Star notes, state Republicans, which control the Missouri General Assembly, recently named Cookson the chair of the House education committee. That means his "don't get sick" bill could get a full airing on the House floor.

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Reformers: Publicly Funded Elections Will Tackle New York's Corruption Problem

| Wed Apr. 3, 2013 7:27 AM PDT
New York State Sen. Malcolm SmithNew York State Sen. Malcolm Smith.

It was a ham-handed scheme straight out of an episode of "Law and Order." Federal prosecutors revealed on Monday that New York State Sen. Malcolm Smith, a Democrat, allegedly tried to bribe his way onto the New York City mayoral ballot—as a Republican. Envelopes stuffed with cash changed hands in hotel rooms and restaurants. Local Republican officials talked about "money greasing the wheels" and "the fucking money" driving local politics. Smith's plan depended on paying off two Republicans from Queens who could get his name on the ballot in time for the November election. Instead, an undercover FBI agent and a cooperating witness infiltrated the deal and laid bare just the latest seamy corruption scandal to rock New York politics.

Preet Bharara, the US attorney in Manhattan spearheading the Smith case, told reporters on Monday that "today's charges demonstrate, once again, that a show-me-the-money culture seems to pervade every level of New York government." New York City Councilman Daniel Halloran, one of the two Republicans allegedly implicated in Smith's scheme, would seem to agree. In the complaint filed against Smith et al, Halloran offers this nugget of wisdom:

"That's politics, that's politics, it's all about how much. Not about whether or will, it's about how much, and that's our politicians in New York, they're all like that, all like that. And they get like that because of the drive that the money does for everything else. You can't do anything without the fucking money."

The Smith scandal comes as a well-funded coalition of progressive groups are pressuring Gov. Andrew Cuomo and other legislators to pass legislation replacing the state's current elections regime with publicly financed campaigns. Now, those reformers are pointing to the Smith scandal as further evidence that New York's political systems need a major overhaul. "This is the kind of conduct that we believe comes out of a culture that is a pay-to-play, money first, voters don't count culture," Susan Lerner, executive director of Common Cause New York, told the Journal News. "What we're trying to change is the role money plays in our political system."

The editorial page of the Albany Times Union, a supporter of public financing, asked on Tuesday: "What better evidence can there be of the need for such reform than this case, in which one of their own, the onetime Senate president and Democratic leader, stands accused of trying to bribe Republican leaders to get a place on the ballot as a GOP candidate for mayor of New York City?"

The Fair Elections for New York campaign, the main force behind the public financing bill, said in a statement that the Smith scandal will only harden New Yorkers' belief that corruption pervades every corner of state politics. "We can all agree the system is broken," the statement reads. "Now it's time to stand shoulder to shoulder with Governor Cuomo and the growing bipartisan majority of New Yorkers who support comprehensive campaign finance reform, which must include a system of publicly financed elections at its core."

The Taxman Turns the Screws on Dark-Money Nonprofits

| Mon Apr. 1, 2013 7:01 AM PDT

The Internal Revenue Service is taking a closer look at the finances of some 1,300 nonprofit organizations, including unions, trade associations, and the type of dark-money groups that controversially spent hundreds of millions of dollars in the 2012 elections. That includes Karl Rove's Crossroads GPS, the Koch-backed Americans for Prosperity, the US Chamber of Commerce, and the pro-Obama outfit Priorities USA, all of which keep their donors secret.

The IRS' is asking these groups to answer a questionnaire (PDF) explaining how they spent their money, how their top staffers were paid, if they flew first-class or charter, any perks they received, and more. The taxman's request for more information comes as campaign finance reformers, disclosure advocates, and at least one angry lawmaker, Sen. Carl Levin (D-Mich.), pressure the IRS to crack down on big-spending nonprofits like Crossroads GPS, which spent at least $67 million on politics during the 2012 campaign. Levin, who is retiring after his current term, said that a priority of his remaining time in Congress is investigating "the failure of the IRS to enforce our tax laws and stem the flood of hundreds of millions of secret dollars flowing into our elections, eroding public confidence in our democracy."

Here's more from NPR on the IRS' latest move on dark money:

The IRS calls the move a "compliance check." It asks a wide range of questions about a group's finances and internal structure. Some of the information will turn up, eventually, in a group's tax return on the Form 990. But other intriguing information will not. For instance, how did the group set the compensation for its most highly paid officers? Did it give them first-class or charter travel? How about country-club memberships? Any other perks?

The agency has targeted groups that are "self-declared." That is, they claim they qualify for 501(c) tax-exempt status, but they've never filed the application with the IRS. That lets them avoid the application form asking the group to describe its proposed tax-exempt activities.

The IRS says the questionnaire is meant "to help us understand" the self-declared groups and to learn "how they satisfy their exemption requirements."

But the IRS may be weighing other factors, too. The questionnaire's most explicit questions are about 501(c)(4) political activity, and the document follows months of critics' complaints that the IRS has treated 501(c)(4) groups too gently.

Unfortunately, the IRS won't disclose respondents' answers to the questionnaire. But with this questionnaire—and with one IRS official's pledge last fall that the agency would scrutinize dark-money nonprofits—it's obvious that the agency is digging into the issue of dark money.

Obama's Organizing for Action Chases Big Money While Fighting Big Money in New York

| Wed Mar. 27, 2013 8:10 AM PDT
New York Gov. Andrew Cuomo.New York Gov. Andrew Cuomo.

Organizing for Action (OFA), the pro-Obama nonprofit spun off from the president's reelection campaign, announced Tuesday it will join the "fair elections" fight in New York State, pushing for a statewide system of publicly financed campaigns. This is big news: OFA commands a massive grassroots network and some of the most advanced technology in politics, and for the reformers, New York State's "fair elections" effort is the front line in the fight against big-money politics. The timing of OFA's announcement, though, wasn't great: On the same day, news leaked that OFA is aggressively seeking six- and seven-figure donations as it tries to meet its $50 million fundraising target.

In an email to supporters in New York, OFA director Jon Carson wrote that "in New York elections, the voice of the public is being drowned out. Contributions from special interests, lobbyists, and corporations are far too influential, disclosure is inadequate, and enforcement of the laws currently on the books is too lax." Carson added, "That's not how democracy should work. So right now, OFA supporters are joining the fight to reduce the influence of special interests in state elections, and put the power back into the hands of New Yorkers."

OFA joins a deep bench of reformers lobbying Democratic Gov. Andrew Cuomo and New York state politicians to pass a public financing bill for all statewide elections, a move cheered by at least of OFA's erstwhile critics. The idea for this kind of legislation was inspired by New York City's public financing program, which matches each dollar a city resident donates, up to $175, with six dollars in public funds. The hope is that candidates will opt to raise lots of small donations from many donors, instead of asking for big-dollar checks from a wealthy few.

Cuomo says he favors a statewide public financing bill, telling activists earlier this month that "fair elections" legislation is "one of the most important issues to complete" in this year's legislative session. But it's unclear if he is willing to expend serious political capital to push a public financing bill through the tangled, noxious mess that is the New York State legislature.

Meanwhile, OFA is aggressively hunting for as many big donations as it can find. The New York Times reported that OFA will give people who raise a million or more for two years in a row a spot on the group's board of directors. Ten slots on OFA's 30-person board, according to an internal memo, will be filled by "leaders in industry." And there could also be an OFA task force on policy; its leaders will be asked to raise $250,000 or more.

This arrangement gives more ammunition to OFA's critics, who accuse the group of selling access to President Obama and administration officials in exchange for raising or donating $500,000. OFA chairman Jim Messina fired back by saying "Whether you're a volunteer or a donor, we can't and we won't guarantee access to any government officials." Reformers have also criticized OFA for choosing to operate as a nonprofit, which can raise and spend unlimited funds and isn't required to disclose its donors. (OFA has said it will disclose donors who give more than $250.)

By joining the New York State fight, OFA is buying into a bigger, somewhat controversial strategy: That it takes big money to get big money out of politics. Jonathan Soros' Friends of Democracy super-PAC, for instance, spent $2.7 million during the 2012 election cycle to help elect seven pro-reform US House candidates and one New York State senator, Cecilia Tkaczyk, a proponent of public financing. Time will tell whether OFA's money and manpower gives New York reformers the boost they need.

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