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Business Groups Giving to Democrats
By Jonathan D. Salant
Associated Press Writer
Wednesday, September 15, 1999; 3:47 p.m. EDT

WASHINGTON (AP) -- With control of the House up for grabs, business groups
that overwhelmingly favored Republicans during the Gingrich years have
begun spreading more political money to Democratic candidates.

Eight of the 10 biggest corporate political action committees have anted up
a larger than usual share of their donations to Democrats in 1999, an
Associated Press analysis of Federal Election Commission records shows.

In many cases, Democrats -- needing just five more seats to regain a House
majority -- are getting their largest percentage of business PAC
contributions since the 1994 election, when they lost control of Congress
to the GOP.

PACs are the donating arms of special interest groups and can give up to
$5,000 per election to each federal candidate. That compares with a $1,000
limit for individual donors.

PAC directors say they are not boosting donations to Democrats because they
expect a change of control in 2000. But they say some new Democratic
members who picked up seats in the last two elections are more moderate
than more veteran Democrats and more likely to vote with business.

``We normally give to people who support our positions. That includes
people on both sides of the aisle,'' said Gary Lytle, vice president of
federal relations for Ameritech, which gave 41 percent of its PAC donations
to Democrats during the first six months of 1999, compared with 37 percent
during the 1998 elections.

Added Dan Danner, vice president of federal public policy for the National
Federation of Independent Business: ``At this juncture, there are probably
more Democrats, at least in the House, who have voted with us than in the
past.''

Danner's group gave 11 percent of its 1999 donations to Democrats compared
with 7 percent during the 1998 elections. ``Certainly, there are many more
people who campaigned as moderates. I don't think there were a heck of a
lot of people out there in '98 who campaigned as extreme liberals,'' he said.

Another factor is that Democratic lawmakers have made an effort to reach
out to the business community.

``Business' success means jobs for our constituents,'' said Rep. John
Dingell of Michigan, the Commerce Committee's top-ranking Democrat who led
the outreach effort.

The increased giving to Democrats by business PACs is further evidence that
ideology aside, the business of political giving is often driven by
practicality, experts said.

``As long as control of the House is in doubt, we're going to see PACs
giving to both Democrats and Republicans,'' said Candice Nelson, an
American University associate professor of political science.

Republican officials predict things will turn in their favor closer to the
election.

``While the PAC community may be hedging bets early, we believe that as the
election draws near, the PACs will come to realize that it's actually the
labor unions that control the Democrat agenda, not business,'' said Jill
Schroeder, a spokeswoman for the National Republican Congressional
Committee that raises money for GOP House candidates.

While Republican lawmakers traditionally are viewed as more sympathetic to
business concerns, corporate PACs tilted only slightly in the direction of
the GOP during the 1994 elections, when the Democrats were still in charge
of the House and Senate. In those elections, they gave the Republican's
congressional candidates a total of $33 million, compared with $31 million
for Democrats. In House races, corporate PACs sided with the majority
Democrats, giving them $24 million to $20 million for Republicans.

But after the GOP takeover of the House, corporate PACs turned decisively
Republican in their giving. In the 1998 elections, corporate PACs gave $48
million to Republican candidates and just $23 million to Democrats.

Now the pendulum appears to be swinging back a bit. During the first six
months of 1999, United Parcel Service gave 28 percent of its PAC money to
Democratic candidates, compared with 21 percent during the 1998 election
season.

Philip Morris, the tobacco and food conglomerate, gave 42 percent to House
Democrats this year, compared with 31 percent in 1997-98.
Telecommunications giant SBC Communications, which gave 40 percent of its
PAC money to Democrats in 1997-98, increased its Democratic giving to 49
percent between January and June of this year.

``Business PACs are probably the most pragmatic givers there are,'' said
Larry Makinson, executive director of the Center for Responsive Politics, a
nonpartisan research group. ``They know that there's a chance the Democrats
will take control of the House in 2000 and they're preparing for that
eventuality by covering their bets.''

© Copyright 1999 The Associated Press

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