By: David Sirota, a Senior Writer at The International Business Times; The National Memo, March 13, 2015
“Why Did Christie Settle With Exxon?”: At This Moment In History, Good Policy And Good Politics Are Not Often Synonymous
Last week, Republican governor Chris Christie’s administration settled New Jersey’s long-standing environmental lawsuit against ExxonMobil Corp. for pennies on the dollar. For a decade, the state had been seeking $8.9 billion in damages for pollution at two refineries in the northern part of the state, and yet Christie’s top officials abruptly proposed closing the case for just $225 million.
In the aftermath, as environmentalists express outrage and legislators move to block the settlement, the question on many observers’ minds has been simple: Why did Christie settle?
One possible answer is just as simple: money — more specifically, campaign cash.
According to federal records, ExxonMobil has donated more than $1.9 million to the Republican Governors Association since Christie’s first run for governor in 2009. That includes $279,000 during Christie’s election and re-election races, and also another half-million when he chaired the organization in 2014. Additionally, one of Exxon’s law firms in the New Jersey case also donated $30,000 to the RGA since 2013.
Another possible answer could be relationships.
Christie’s first attorney general worked for Exxon for seven years. His deputy chief of staff in 2014 left the governor’s office for a job with Exxon’s lobbying firm in Trenton. And weeks before the settlement was announced, one of his cabinet secretaries took a job with Exxon’s New Jersey law firm.
Still another possible answer about why Christie settled the Exxon case could be found in a little-noticed provision his administration slipped into the annual budget in 2014.
The language in question empowers the governor to divert money obtained from environmental litigation away from pollution cleanup programs and into the state’s general fund, where it can be used to fill budget gaps or finance corporate subsidies. The provision explicitly takes precedence over other state laws designed to direct proceeds from environmental lawsuits into New Jersey’s environmental protection programs.
Because the provision is temporary, remaining in force only until a new budget is enacted, critics say that it effectively encourages Christie’s administration to settle cases as quickly as possible to free up cash that the governor can then tap however he sees fit. The most expedient way to accelerate a settlement is to lessen the fines sought from the company facing the lawsuit.
“This is money that rightfully belongs to the people of New Jersey to make up for the injury to the environment,” said Jeffrey Tittel, executive director of the New Jersey Sierra Club. “Instead, the governor is diverting it for other purposes. It’s a twofer: Reduced settlements help the oil companies before Christie’s presidential campaign, and Christie can quickly get more money for the record amounts of corporate subsidies he is handing out.”
So which answer is correct? Is the settlement a product of campaign cash, relationships or budget machinations? It is hard to say for certain, but in all likelihood it is probably a little bit of all three — plus some presidential campaign calculation sprinkled in.
In politics, as rare as it is to see a policy decision made on the substantive merits of an issue, it is even rarer that a decision is only about one thing. Most often, decisions represent a mixture of motivations. In agreeing to such a small settlement in the Exxon case, Christie placates his politically connected colleagues and gets himself some extra cash to spend on his budget’s new tax cuts. He also gives a gift to an oil industry donor just as he starts raising money for a 2016 White House bid.
Sure, the settlement may not be great policy, but it may be shrewd short-term politics. That divergence is hardly surprising — at this moment in history, good policy and good politics are not often synonymous.
“Rigging The Rules”: Scott Walker’s War On Good Government
Here’s a good government rule of thumb: foxes ought not guard the henhouse. When self-interested politicians rig the rules to protect themselves against independent scrutiny, citizens have a reason to be concerned. Common sense tells us that any politician – especially one with White House dreams like Wisconsin’s Governor Scott Walker – should know that undermining an independent government agency sure makes it look like you’ve got something to hide.
Gov. Walker gained office – and won reelection last fall – by casting himself as a conservative reformer. His zeal for cutting budgets and bashing unions has made him popular on the right. Following a reportedly “strong performance” at Iowa’s Freedom Summit, sponsored by Citizens United, the same organization that brought you unlimited and unaccountable secret money in politics through its infamous Supreme Court case, Gov. Walker filed paperwork last week to set up a 527 political organization, “Our American Revival,” to explore a run for President in 2016.
This first move towards a presidential run is sure to bring Walker plenty of attention from reporters and Republican activists. Yet it seems Walker’s dreams for the Oval Office might lead him, or allies helping to position him, to interfere with an independent investigation into his campaigns. Walker’s loyalists are attempting to defund, undermine, and destroy Wisconsin’s Government Accountability Board (GAB), an independent investigative agency, which enforces ethics, campaign finance, and election laws. It’s an agency that investigated alleged illegal campaign finance violations that plagued Walker’s 2012 recall election.
Top election law experts around the country call Wisconsin’s GAB, “America’s Top Model” of agencies charged with administering state elections. Most modern democracies around the world have independent election overseers to avoid partisan hacks writing election rules to favor their party. Unfortunately, impartial election boards are not common in American democracy yet. Wisconsin’s GAB is the gold standard, and is watched closely by reformers eager to modernize our political system so that voters set the rules for politicians, instead of politicians writing rules for themselves.
The GAB was created in 2007 with virtually unanimous, bipartisan support in the state legislature. It replaced a collection of ineffective, partisan state elections and ethics boards. By law, six retired judges make up the board. They are selected in a deliberate, three-part process to ensure that they’re non-partisan and politically impartial. A key provision of the law blocks legislative appropriators from meddling in the agency’s investigations.
Allies of Gov. Walker are unhappy because in 2012 the GAB voted unanimously to investigate possible illegal coordination between the governor’s recall campaign and two outside special interest groups, Wisconsin Club for Growth and Wisconsin Manufacturers and Commerce. Those organizations spent millions of dollars on Walker’s behalf in the recall election. The GAB also cooperated and pooled resources with another probe, “John Doe II,” led by Republican and Democratic District Attorneys and a Republican Special Prosecutor.
The John Doe investigators considered potential criminal charges of illegal coordination between Wisconsin Club for Growth and other groups with the Walker campaign during the 2012 recall elections. The John Doe process in Wisconsin is similar to a grand jury investigation – it’s largely secret and permits grants of immunity from prosecution to witnesses in exchange for their testimony.
Some of Gov. Walker’s political allies want to eviscerate the GAB. Others are trying to gut longstanding campaign finance protections. Wisconsin Club for Growth has filed a lawsuit against the GAB, claiming that it lacked power to investigate the possible illegal campaign coordination. Another lawsuit implies that anti-coordination rules, designed to prevent circumvention of contribution limits, impinge on free speech.
Meanwhile, the GAB also is facing legislative attacks. The legislature has cut GAB funding in the last three state budgets and launched an audit of the agency in an attempt to embarrass and undermine it. Most recently—and alarmingly – Wisconsin’s speaker of the assembly and the senate majority leader, both Republicans, have pledged an ill-advised effort to ram through legislation adding partisan appointments to the nonpartisan panel of retired judges, or replace it altogether with partisans.
Either move would destroy the agency’s independence and ability to hold Wisconsin’s government accountable. To date, the ongoing John Doe investigation (now enjoined by a federal court) has not produced charges against Gov. Walker or his campaign. But if the governor allows allies in the Legislature to eviscerate an independent state agency that voted unanimously to investigate his past campaign, he will face plenty of questions about his role in the debacle that may turn his White House dream into a nightmare.
By: Karen Hobert Flynn, The Daily Beast, February 10, 2015
“Romney As Republican Comfort Food”: He Talks A Great Donor Game, But Doesn’t Strike The Grassroots As Authentic
It’s way too early to tell who is going to run, who is able to run and who will win from running for president in 2016. But if prognosticators didn’t try to take a stab at it, then those of us in the politics business would be pushing the unemployment rate up another percentage point.
Thus, the latest CBS poll of potential 2016 nominees shows 6 in 10 Republican voters, or 59 percent of that bloc, want to see Romney stump on the presidential campaign trail. Jake Miller at CBS News:
Republicans have a particularly broad field of prospective candidates, and it’s seemingly growing by the day: Just last week, the 2012 GOP nominee, former Massachusetts Gov. Mitt Romney, told a room of donors in New York City that he’s seriously entertaining a 2016 bid.
Fifty-nine percent of Republicans would like to see Romney jump into the 2016 race, while only 26 percent believe he should stay out, according to the CBS News poll.
Fifty percent of Republicans would like to see former Florida Gov. Jeb Bush on the campaign trail as well, while 27 percent disagree. If both Romney and Bush run, analysts expect them to wage a competitive battle for the allegiance of the Republican establishment.
A lot of observers are scratching their collective heads on Romney’s sudden phantom rise given his self-inflicting 2012 defeat and his flopped run in the 2008 GOP primary. But there are indications of a raging battle between donors and various wings of party activists: he talks a great donor game, but doesn’t necessarily strike the grassroots folks as authentic – unless you fell in love with the unrecognizably likable Mitt showcased in that post-election Netflix documentary. And, the only thing holding Bush back, at the moment, is both his brand (the last name makes everyone, regardless of political affiliation, queasy) and skepticism over his stances on key issues as they’ve changed over the past decade.
If anything, such an overwhelming response from GOP voters should not assume Romney is a great candidate. It just says Republicans are comfortable with going with what they know; even Bush with 50 percent is folks simply going with the brand they know as opposed to the truly qualified brand at the moment. The other presumptives will just have to work harder at name ID.
By: Charles Ellison, Political Animal Blog, The Washington Monthly, January 19, 2015
“Citigroup Becomes Its Own Self-Serving Lawmaker”: 21st Century Civics Lesson; How A Corporate Bill Becomes A Law
Congress, which has long been so tied up in a partisan knot by right-wing extremists that it has been unable to move, suddenly sprang loose at the end of the year and put on a phenomenal show of acrobatic lawmaking.
In one big, bipartisan spending bill, our legislative gymnasts pulled off a breathtaking, flat-footed backflip for Wall Street, and then set a dizzying new height record for the amount of money deep-pocketed donors can give to the two major political parties. It was the best scratch-my-back performance you never saw. You and I didn’t see it — because it happened in secret.
The favor was huge — allowing Wall Street’s most reckless speculators to have their losses on risky derivative deals insured by us taxpayers. Yes, such losses were a central cause of the 2008 financial crash and subsequent unholy bank bailout, which led to passage of the Dodd-Frank reform law, including a provision sparing taxpayers from covering future losses. But with one, compact, 85-line provision inserted deep inside the 1,600-page, trillion-dollar spending bill, Congress did a dazzling flip-flop on that regulation, putting us taxpayers back on the hook for the banksters’ high-risk speculation.
In this same spending bill, Congress also used its legislative athleticism to free rich donors (such as Wall Street bankers) from a limit of under $100,000 on the donation that any one of them can give to political parties. In a spectacular gravity-defying stunt, lawmakers flung the limit on these donations to a record-setting 15 times higher than before. So now bankers who are grateful to either party for being able to make a killing on taxpayer-backed deals can give $1.5 million each to the parties.
Perhaps you recall from your high school civics class that neat, one-page flow chart showing the perfectly logical, beautifully democratic process that Congress must go through to pass our laws.
What a bunch of kidders those chart makers were! To see how the sausage is really made, let’s take a look at that trillion-dollar budget bill that Congress squeezed out just before Christmas. It was crammed with special corporate favors, such as: reinstating a Bush rule allowing mining giants to explode the tops off ancient Appalachian mountains and then bulldoze the rubble down into the valley below, destroying pristine mountain streams; another letting long-haul trucking outfits require their drivers to be on the road more than 11 hours a day and up to 82 hours per week, filling our highways with highballing, sleep-deprived truckers; and cutting $60 billion from the Environmental Protection Agency, freeing up polluters to go unpunished for polluting.
None of these favors had anything to do with that “how a bill becomes law” flow chart in our civics textbook. No bill was filed, no public hearings, no debate, no vote. Just — BAM! — there they were, a thicket of benefits secretly slipped into the 1,600-page budget bill by … well, by whom? Largely by corporate lobbyists, though they get one of their for-hire congresscritters to do the actual dirty deed.
The taxpayer subsidy for Wall Street, for example, was written by Citigroup. The bank’s lobbyists then handed the provision to Kansas Republican Kevin Yoder, who slipped it into the bill. Thus, the Wall Street conglomerate that took a $50 billion bailout from us taxpayers just seven years ago to save itself from its own bad deals essentially was allowed to become an unelected, self-serving, do-it-yourself, backroom “lawmaker” to make sure that your and my tax dollars will be there to cover its next mess-up.
And that, boys and girls, is the real flow chart for making our laws. It’s always an amazing sight when Wall Street and Congress get together — especially when they get together out of sight.
By: Jim Hightower, The National Memo, December 24, 2014
“Our Democracy Is Dying”: For All Intents And Purposes, Our Government Is Merely The Handmaiden Of Corporations
In case anybody hasn’t noticed, democracy in America is dying now. This isn’t an overstatement; it’s a fact. Corporate interests dominate our politics so much at this point that our government, for all intents and purposes, is merely its handmaiden. Whatever Wall Street wants, Wall Street gets. Corporatism is the new order of the day. One political party stands for it; the other political party won’t stand against it.
The word inertia means the tendency of an object to move in whatever direction its been moving until and unless there’s the introduction of a counterforce, and the Democratic Party is simply not providing the necessary counterforce to the corporatist agenda so exalted by the Republicans. Such a possibility is undermined by Democrats with corporatist agendas of their own. Watch them trying to sideline Elizabeth Warren as I write this. It’s all gotten so terribly predictable.
Some people are pussyfooting around the word, but others are realizing it’s time to say it: we need a peaceful revolution in America. In the words of President John F. Kennedy, “Those who make peaceful revolution impossible make violent revolution inevitable.” The American people have simply got to stand up now. This isn’t the time for any of us to go mute – whether it’s those who feel there’s no point in saying anything, or those who feel there’s too big a risk in saying anything. And you know who you are.
The social revolution we need is comprised of two major categories: What we say No to, and what we say Yes to. In the American Revolution, with the Declaration of Independence we said no to what we would no longer accept (living under British rule). In ratifying the Constitution, we said yes to what we would do instead (form our own system of government). The template was genius then, and it’s genius now. Today, we need to say no to a situation in which our government is bought and paid for, and yes to a return to democracy. Nothing short of an historic, nothing namby-pamby-about-it, serious social movement will take us out of our free fall and set America back on the track to real liberty. Today, lobbyists – not the people – are in control. And that is not freedom.
The situation has shaken out – and thank you, Senators McConnell and Reid for adding to the disaster of Citizens United by upping the amount people can contribute to political parties; that really helps (not) – in such a way that nothing short of a Constitutional Amendment will stop the big money flowing into our political campaigns like poison into the veins of our democracy. The best bet now — given the resistance within both major parties to seriously taking down the dastardly “For Sale” sign posted on the front yard of our government — is for the people ourselves to call for a Constitutional Convention, state by state. And that’s what has started to happen.
If something inside you says, “That’s true,” then I hope you get active. We’re in serious straits now and things won’t get better by themselves. In denial about this? Go stand over there. Too cynical to think we can change things? Go stand over there. Too sedated to be upset yet? Go stand over there. An apologist for the system? Go stand over there. Ready to kick ass? Go to http://www.wolf-pac.com/ and express yourself big time. Work with that organization, or with any other you like. But this isn’t a time to sit on the sidelines. Our democracy is sick – it is really, really sick — and all of us are needed now to nourish it and make it well.
By: Marianne Williamson, The Blog, The Huffington Post, December 14, 2014
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