WASHINGTON — Members of two families, the Waltons and the Stephenses, and their businesses have contributed most of the Arkansas money to new fundraising groups that have helped make the current election the most expensive ever.
Of $4,352,180 donated by Arkansas individuals or companies who gave $200 or more to so-called super PACs, more than $4 millionwas given by the heirs of Sam Walton, the founder of Wal-Mart, or by members of the Stephens family or the companies they manage, including Little Rock investment house Stephens Inc. and Stephens Investment Holdings.
Super PACS are independent political action committees that can raise and spend unlimited amounts of money on behalf of a candidate.
In Arkansas and nationally, Republicans hold an advantage in super-PAC contributions, according to figures provided Wednesday by the Center for Responsive Politics, a Washington group that tracks money in politics.
The large donation tally was made possible by the 2010 Supreme Court decision in Citizens United v. FEC. While individuals still cannot donate more than $5,000 directly to a singlecandidates, the ruling allowed individuals, companies and labor organizations to make unlimited political donations to political action committees as long as these super PACs don’t coordinate directly with campaigns.
“[A super PAC] allows those with wealth to translate that wealth into political power,” said Anthony Corrado, a government professor at Colby College in Maine, and author of several books on campaign finance. “They can finance an entire ad campaign in a state,” under the new rules.
With polls pointing to a close presidential race, super PACS are aggressively soliciting donations from wealthy individuals, who have a “disproportionate voice” in the process, Corrado said.
President Barack Obama’s support for raising taxes on the wealthy and expanding government regulations “are not conducive to the interests of certain large industries and wealthy individuals,” he said.
Jim Bopp, an Indiana lawyer who has long advocated for eliminating limits on contributions to outside political groups, said the proliferation of super PACs has resulted in a better-informed electorate.
Republicans have raised and spent more super-PACmoney than Democrats in 2012, Bopp said. But they need extra cash, he said, to counter the influence of labor unions and pro-Democratic news media outlets.
“Super PACs have leveled the playing field,” Bopp said.
Warren Stephens of Little Rock, who is a co-chairman of Republican presidential challenger Mitt Romney’s fundraising efforts in Arkansas, donated $500,000 to Restore our Future, a pro-Romney PAC and $50,000 to the Congressional Leadership Fund, which promotes Republican candidates. Stephens Inc. and Stephens Investment Holdings contributed $1.5 million to American Crossroads, a conservative PAC.
His brother, Jackson T. “Steve” Stephens, who is chairman of Little Rock biotech firm Exoxemis Inc., contributed $1.25 million to Club for Growth Action, a conservative super PAC.
Jim Walton, chairman of Arvest Bank and the son of Wal-Mart founder Sam Walton, contributed $200,000 each to Restore Our Future, the pro-Romney PAC, and$100,000 to Our Destiny PAC, which favored former Utah Gov. Jim Huntsman in the GOP presidential primaries.
His sister, Alice Walton, a Texas ranch owner, contributed $100,000 each to the Restore Our Future and Our Destiny PACs.
Samuel Rawlings Walton, Sam Walton’s grandson, contributed $300,000 to Priorities USA, a PAC that favors Obama.
Through a spokesman, the Waltons declined to comment, as did Warren Stephens. Jackson Stevens, did not return two messages left at Exoxemis’ Little Rock Office.
John Tyson, chairman of Tyson Foods, is also a co-chairman of Romney’s efforts in Arkansas. He contributed $60,000 to Restore Our Future.
“I believe in participating in the political process, as this is a great country and it is our responsibility as citizens to be involved,” he said.
Groups, such as the Center for Responsive Politics, said individuals have helped fundraising totals rise dramatically.
“In this new campaignfinance landscape, post- Citizens United, we’re seeing historic spending levels spurred by outside groups dominated by a small number of individuals and organizations,” said Sheila Krumholz, Center for Responsive Politics’ executivedirector.
Krumholz said that while small donors are still playing a role in the campaign, it’s the big-dollar donors that are giving most of the money. Fewer than 40 donors account for more than $200 million in donations to to groups outside candidates’ campaigns, according to the center.
Campaigns and outside groups will combine to spend a total of $6 billion on the presidential, House and Senate campaigns this cycle, making it the most expensive election in history, the group predicted.
Of that, about $2.6 billion will spent in the presidential race.
The 2008 campaign notched $5.3 billion in spending, up from $4.2 billion in 2004.
Of the $970 million the Center for Responsive Politics expects to be spent by outside groups, $540 million will come from super PACs, and the remainder from politically active nonprofits. In 2010, the year Citizens United was decided, super PACs only raised $62.3 million, according to the center’s tabulation of Federal Election Commission records.
While super PACs have given more in support of Romney ($350 million) than Obama ($100 million), according to the group, Bopp said PAC fundraising might even out over time.
“There are wealthy people on both sides,” he said.
Northwest Arkansas, Pages 7 on 11/01/2012