Donations push Reid coffers to record level

Benjamin Grove

Friday, Dec. 3, 2004 | 11:10 a.m.

WASHINGTON -- Sen. Harry Reid, D-Nev., enjoyed a record windfall in campaign donations from political action committees in his re-election bid this year.

Casinos continued to be the biggest contributors to Reid and other Nevada congressional incumbents, even though total industry donations decreased dramatically.

Reid received 558 donations worth about $1.8 million from PACs in 2003 and 2004, according to the Center for Responsive Politics. That compares with 393 donations worth about $1.2 million Reid received in the two-year election cycle six years ago, according to the center, which tracks money in politics. The data was collected through Oct. 25.

Reid attributes the increase in his PAC money to early fundraising, and campaign fundraisers that draw diverse donors. Reid said PACs represent working people, from nurses to casino employees, not just big corporations with "big piles of money."

"I don't have any concerns about PACs," Reid said. "It's a great part of our country. I don't apologize to anyone for PAC money."

Reid took money from a diverse group of PAC donors, from the Walt Disney Co. ($4,000) to the Dairy Farmers of America ($6,000).

"Leaders tend to attract donations from lots of people," said Mary Boyle, spokeswoman for Common Cause, a watchdog group that monitors campaign money. "High-profile members of Congress have more of a vantage point to raise and attract money."

Reid, who served as the Democratic whip beginning in 1999, was elected by his peers to be party leader earlier this month.

Corporations, lobbyists and other lawmakers heaped money on the Nevada lawmaker this year because of his whip post, and possibly because they were betting Reid might be the next Democratic leader, experts said.

"In general, leaders and committee chairmen do get the most money from PACs," said University of Rochester political science professor David Primo, who studies money in politics. "PACs tend to turn their attention to members who have influence over legislation that is important to them."

Nineteen of the top 20 PAC contributors to federal candidates gave donations totalling $166,162 to Reid in the 2004 cycle. Those giving to Reid included the No. 1 PAC contributor , the National Association of Realtors, which gave $3.7 million to federal candidates, to No. 20 International Association of Fire Fighters, which gave about $1.4 million, according to the Center for Responsive Politics.

In a report about Reid issued earlier last month called "Gambling Man," the center noted that Reid's three biggest PAC donors were casinos -- MGM Mirage ($102,200); Mandalay Resort Group ($83,350); and Harrah's Entertainment ($67,100).

"Though he has a reputation for being soft spoken, Reid has no problem being heard when it comes to fundraising," the report said.

The gaming industry in general gave less money to federal candidates in the 2004 cycle than it did in 2002 because of the federal "McCain-Feingold" campaign finance law curbed "soft money" -- unlimited contributions to national political parties. The law went into effect in November 2002.

Casinos gave $9.1 million to federal candidates in the latest election cycle, down from an industry record $15 million -- including soft money -- donated in 2002.

The gaming industry ranked 34th among industries that give money to politicians, way behind the top donor industry -- lawyers and law firms -- which gave federal candidates $144 million. Four of the top 10 gaming donors were Indian gaming PACs.

The drop in donation totals hasn't hurt the industry's influence in Congress, said Frank Fahrenkopf, president of the American Gaming Association, the industry's top lobby group.

"We have tremendous relationships with leaders in both parties," Fahrenkopf said.

Industries of all kinds are looking for new ways to funnel money to politicians, Fahrenkopf said. The AGA's PAC typically gives only about $20,000 in "hard money" to candidates, but the organization plans to increase fundraising and donations, Fahrenkopf said.

The AGA wants to host more fundraisers for candidates because the group can pair the events with several hours of face-to-face time with the candidates, taking behind-the-house casino tours and talking with workers, Fahrenkopf said.

"We use fundraising as a mechanism to educate people about the industry," Fahrenkopf said.

MGM Mirage was the biggest casino industry donor with about $447,000 given to candidates -- far less than the $806,000 it gave in the 2002 cycle, according to the Center for Responsive Politics. The company PAC split its donations evenly between Democrats and Republicans.

The spending decrease was due to the soft money ban, not because gaming issues were a relatively low priority in the last Congress, MGM spokesman Alan Feldman said.

"There are always issues in Congress," Feldman said. "Our need to be a regular presence in Washington is now fixed in stone. The point here is that we can't be reactive."

The top congressional recipients of casino money overall were -- no surprise -- Nevadans. Among federal candidates, only George Bush got more money from gaming interests than the four Nevada lawmakers who were running this year.

Bush -- who generally dislikes gambling but believes it is a state issue -- received $338,510 from gaming interests.

The rest of the top five: Reid ($302,463); Rep. Jon Porter, R-Nev. ($239,468); Rep. Shelley Berkley, D-Nev. ($194,941); and Rep. Jim Gibbons, R-Nev. ($144,094). The top three contributors to all three of Nevada's House members were casinos.

Sen. John Ensign, R-Nev., who is not up for re-election until 2006, was No. 19 among casino money recipients. He received $56,500.

In other campaign money news, according to the center: