The Sky’s the Limit
Illinois Politics and the $10,000 Hello

Illinois has no limits on who can give to political candidates, or how much they can give. Where most states restrict the amount of giving by individuals, and most ban contributions from corporations and unions, Illinois law allows unrestricted giving to candidates for office. Contributing in very large amounts has become a matter of routine for some of the state’s most powerful political insiders.
Since January 1, 2003, candidates have reported 453 contributors of $10,000 or more. These contributions totaled over $7 million. Such contributions would be illegal if given to Illinois candidates for federal office, and also if given to any candidates in at least 40 other states. But in Illinois, contributions on that scale are not only legal, they are almost routine for a select few in Illinois’ political class. Most of these contributions, more than one per day, came in single lump sum contributions of $10,000 or more.
A more exclusive club consists of donors and recipients of contributions of $50,000 or more. Contributions in that amount, which exceeds the average annual household income in Illinois, were reported 16 times, totaling $850,000. All but one of these contributions were made in a single check. Donors and recipients on this level, which would be illegal in at least 43 states, belong to a very exclusive, and very well-connected, group of political players.
Twelve of the 16 contributions of $50,000 or more were to statewide officials; 11 to Gov. Rod Blagojevich and one to Secretary of State Jesse White. That donors are giving such large amounts is particularly striking, because statewide offices are not on the ballot this year.

Who Gets These Very Large Checks?
Out of 232 candidates who ran for legislative office in the 2004 Primary Election and six statewide constitutional officers, only 44 political committees, controlled by just 40 people, received contributions of $10,000 or more. The bulk of these very large contributions, and a vastly disproportionate share of the money, went to committees controlled by the four legislative leaders and the governor. If Illinois were to join with most other states and limiting contributions, the impact would be greatest on these officials.

For most recipients of very large checks, the money accounted for a small share of their total fundraising. For 11 committees, the funds were less than 10% of their total receipts; for another 19 committees, very large contributors accounted for between 10% and 25% of their total fundraising. However, very big donors accounted for more than 25% of the total fundraising of a handful of committees, including ones controlled by House Speaker Michael J. Madigan, Senate President Emil Jones, and Gov. Rod Blagojevich. Indeed, for Gov. Blagojevich, very large contributors account for over 57% of the $6 million he has raised in 2003 and 2004; an election cycle in which he is not on the ballot.

Note: Move Illinois Forward is a new committee formed in February of this year; for more about the committee, see the Methodology section.

Who Contributes These Very Large Checks?
Donors often insist that their contributions do not buy a legislator’s support or opposition on particular legislation but only express the giver’s support for particular candidates or causes. These contributions, they contend, have no more meaning than a cheery "hello!" shouted to an old friend. A glance at the list of contributors of very large checks, however, suggests that donors are also getting a place on the agenda. Interests concerned with medical malpractice, education reform, and gambling dot the list of top sectors giving very large checks; the very same issues dominating the legislative agenda in its closing days. Whether nor not very large checks buy votes for or against legislation, it is apparent that contributors of very large checks receive floor time, debates, legislative maneuvers, and roll calls that are denied other issues with less generous backing.
Only 87 of the 452 very large contributions of $10,000 or more were from individuals. The great bulk of the giving, and the money, came from corporations, unions, associations, and other political committees. Most states that do not limit giving by individuals do restrict, or prohibit, contributions from corporations, unions, or other entities.
Not all very large contributors are concerned primarily with legislative outcomes; several were bidders for state contracts. Most of these appear to be innocent transactions; the state contracts were far smaller than the contributions, or long preceded the contribution, or fluctuated independently of the size of the state contract. But a few transactions do raise eyebrows, such as donors who have not previously contributed large amounts of money who do make a large contribution and then see a new or vastly increased state contract.

Others in the list include sectors of the economy highly regulated by state government: public utilities, telecommunications companies, liquor distributors. For these businesses, their profitability, structure, indeed their very existence often depends on a few lines of statute. Sometimes they are working on specific legislative proposals, as when SBC, contributor of two very large checks, sought to re-write the Telecommunication Act, or when Commonwealth Edison, donor of eight very large checks, and Illinois Power, giver of another eight very large checks, sought approval of a merger. Win or lose, their concerns were granted committee votes, floor time, and legislative maneuvers that are most often denied to other issues.]

The Biggest of the Big: The Truly Enormous Contributors
An elite group of contributors and recipients exist at the $50,000 level. What would motivate a contributor to write such a truly enormous check? Why contribute more to a single candidate, often in a single check, than the average household earns in an entire year? Sixteen times in the first 15 months of the 2003-2004 election cycle, a donor has made such a contribution.
Beyond a doubt, the king of the truly enormous check is Gov. Rod Blagojevich. Eleven of the16 truly enormous checks were collected by his political committee, for a grand total of $600,000, or just over 10% of his total fundraising in 2003-2004. Only four committees in all reported receiving checks at this level: ones controlled by the governor, by Secretary of State Jesse White, by House Speaker Michael Madigan, and by the Illinois Republican Party.

Contributors at this level are a rarified breed. Four donors are from California, and gave to Gov. Blagojevich, who has traveled to the West Coast on fundraising trips. Contributions at this level would be illegal to California gubernatorial candidates, but that state’s laws do not affect contributors to Illinois candidates.
Three of the donors are law firms specializing in personal injury lawsuits. All three have a long history of contributing generously to Democratic candidates.
The others donors resist pigeonholing. Fred Eychaner, head of Newsweb Corp., and Irving B. Harris, who runs the Harris Family Foundation, have a long history of generous support for Democratic candidates, within Illinois and nationally. Robert Lozins, who gave $50,000 to Secretary of State Jesse White, owns Artmark and collects antique cars. Two political committees gave to Gov. Blagojevich: the Democratic Governors Association and the Illinois Hospital Association. All but one of the contributors of truly enormous checks gave only one check to the lucky recipient.The

Impact of Very Large Contributions on Illinois Politics
By their very nature, very large contributions tilt the playing field of Illinois politics toward the favored few. An ordinary voter who gives a candidate $50 or $100 is voicing support; a contributor who gives 100- to 200-times that amount appears to be doing something else entirely. Large contributions also can confer enormous power upon the recipient, who very quickly can acquire the resources to mount a campaign. Candidates who are able to collect contributions on this scale have more time and money to devote to voter outreach, media events, or helping potential allies with their projects.
Soliciting contributions is an uncomfortable activity, even for seasoned politicians. Many would rather receive one contribution for $10,000 than ask 100 people for $100 each. Knowing that one contributor can alleviate the fundraising burden can make public officials think twice before crossing that donor’s wishes.
This situation is nearly unique to Illinois. Forty states forbid giving at this level. Most states that allow individuals to give so much to so few also restrict giving by corporations, unions, and associations, or transfers from one political candidate to another. States are constantly revising their campaign finance laws, and comparisons are time-sensitive, but Illinois now appears to be in a very small group of states with absolutely no restrictions on campaign contributions.
The imbalance some candidates report, between large and small contributors, can be readily addressed by limiting contributions from individuals, corporations, and unions, and restricting transfers from associations and other political committees. Particularly among statewide candidates, reliance on donors of very large and truly enormous contributions has grown appreciably, so that some statewide officers now get most of their funds in blocks that would be illegal in most other states. Such an imbalance inevitably creates real or apparent conflicts between the specific interests of donors and the general right of voters to honest government.

Methodology
This report examines contributors who gave at least $10,000 to a single political committee during the period beginning January 1, 2003. Most statewide officers and legislators filed campaign finance data complete through February 16, 2004, but a small handful of public officials who are not on the ballot in 2004 opted instead to file non-participation reports. Data for these officials, including Attorney General Lisa Madigan and state senators Chris Lauzen and Dave Luechtefeld, concludes on December 31, 2004.
Funds raised by caucus committees was attributed to the caucus leader. Thus, totals for the House Republican Organization were attributed to House Republican Leader Tom Cross; for the Illinois Senate Democratic Fund to Senate President Emil Jones, for the Republican State Senate Campaign Committee to Senate Republican Leader Frank Watson; and for the Democratic Party of Illinois to House Speaker Michael J. Madigan. Donors who gave smaller amounts to caucus committees and to their related caucus chair, which aggregate in excess of $10,000, were not counted for this report.
While some reports have linked the Move Illinois Forward political committee to Gov. Rod Blagojevich, the governor is not an officer of that committee, nor is he among the list of candidates that committee is intended to support. To date, Move Illinois Forward has reported three contributions of $10,000 or more, totaling $35,000; it has reported no contributions of $50,000 or more.
This report does not include transfers between committees controlled by the same person or entity. Such self-dealing is beyond the purview of this study. Thus, giving by Rep. Lee Daniels to the House Republican Campaign Committee, by the Illinois Republican Party Building Fund to the Illinois Republican Party, and between different committees controlled by the Senate Republican caucus are not included in this analysis.
Comparisons with total fundraising during the same period are based upon total itemized and non-itemized receipts, including in-kind contributions, but exclude cash on hand as of January 1, 2003.

Truly Enormous Donors: Summary Chart

Top Recipients of Very Large Contributions

* - Includes caucus PAC
# - Attorney General Lisa Madigan filed a non-participation statement for the March primary and so has disclosed the finances for her campaign only through December 31, 2003