Tuesday, October 2, 2007
WHAT'S NEW IN PUBLIC AFFAIRS
Look up the word "lobbying" in the dictionary and not far behind it you will find the word "loophole," but according to Roll Call, some observers have identified a rather unusual new loophole in the lobbying laws - pollsters. Many pollsters have close ties to lawmakers and the polling data they provide is intended to influence lawmakers, yet under current laws they are not required to disclose many of their activities on Capitol Hill. Meanwhile, according to The Politico, the lobbying, fundraising, and other activities that are under the purview of current ethics laws are so confusing it has become a bonanza for legal experts in those fields. Finally, speaking of fundraising, you too can do lunch with Hillary and Bill, dine with Obama, or get cash back from Mitt Romney - all by participating in some of the creative new ways today's candidates are raising money. These stories and more in this edition of The Public Affairs Monitor
HEADLINES AT A GLANCE
"Pollsters: Lobbying's Next Frontier"
"How the Falling Dollar Affects Americans"
"An Appeal for More Teeth"
"Fundraising Gets Creative"
"Congressional 'Pork' Down Sharply Under New Disclosure Rules"
"Ethics Rules Prove to Be Lawyers' Bonanza"
"Big Businesses Look at Energy Use"
"GOP Forced to Pivot on Taxes"
UPCOMING CONFERENCES
The Art of Issues Management
October 4, 2007 - Washington, DC
This how-to seminar gives participants an overview of the cutting-edge techniques and tools currently used in successful Issues Management programs. We'll review the basics, examine and compare seasoned IM programs, explore how recent global changes will affect your strategy, and teach you how to better predict which small issues may become big problems for your organization.
Risk Communication, Crisis Communication & Outrage Management: The Fundamentals of Reputation Management
October 5, 2007 - Washington, DC
Join fellow public affairs professionals to learn about the key kinds of risk communication, how to effectively communicate when your organization is in a crisis, and reduce public and employee outrage. We will cover how to assess the risk involved for your organization, how to talk to people who are angry and frightened and how to develop strategies for countering opposition from groups that try to generate public outrage. You will gain an understanding of how to resolve controversies over risks that you think are smaller than your stakeholders think they are. Most important, you'll learn how to reduce outrage by using a set of counter-intuitive strategies like sharing control, giving away credit, apologizing for behavior and more.
Association PAC Roundtable
October 11, 2007 - Washington, DC
Limited space available. Registrations accepted on a first come, first served basis.
This hands-on idea-sharing forum offers you a unique opportunity to exchange successful solicitation strategies with fellow PAC professionals, discuss effective communications, identify potential pitfalls, benchmark your PAC's performance and address strategies for success.
COUNCIL SERVICES
Did you know that Council staff experts are available to answer your questions on public affairs issues and share customized information, research and other resources? Learn more at
www.pac.org/counseling
copyright 2007
INFORMATION, INC.
Public Affairs News Monitor may be reproduced in hard copy form or electronically for internal circulation to Public Affairs Council member companies and associations.
"Pollsters: Lobbying's Next Frontier"
Roll Call (09/25/07); Ackley, Kate
Corporations and trade associations increasingly are turning to pollsters to add firm numbers to their lobbying strategies. In what some observers deem a loophole in the lobbying law, pollsters do not have to disclose their activities on Capitol Hill, despite the fact that they have earned some lawmakers' trust and have access to strategy meetings. Public Affairs Council President Doug Pinkham underscores the added importance of hard data such as polling numbers now that lobbyists are prohibited from buying lunches or gifts for lawmakers and staffers. Although the data pollsters collect on behalf of companies or associations is intended to influence lawmakers, pollsters insist that they simply provide the numbers and do not lobby. In fact, some pollsters go as far as letting lawmakers and staffers know which company or association sponsored the poll. Brett Kappel, a lobbyist and campaign finance lawyer for Vorys, Sater, Seymour and Pease, says that under federal disclosure rules pollsters only need to make disclosures if more than 20 percent of their time working for a client involves advocating a certain position on a certain issue. Meanwhile, companies and associations that hire pollsters do not have to say which pollster provided their data but should make known how much the polls cost them. In an effort to gain a competitive edge, some lobbying firms have branched out into polling and research. (www.rollcall.com)
"How the Falling Dollar Affects Americans"
Christian Science Monitor (09/24/07); Scherer, Ron
The value of the dollar has fallen 7.6 percent since the start of the year, with the Federal Reserve's recent decision to cut interest rates pushing the dollar to a decade low. Economists are divided when it comes to the impact of the declining dollar on the economy. Moody's Economy.com Chief Economist Mark Zandi thinks the lower valued dollar will prop up trade and "cushion the blow to the economy from housing." It remains to be seen whether the weak dollar will boost inflation or prompt investors to avoid stocks, bonds and real estate. Meanwhile, University of Maryland Economics Professor Peter Morici says fluctuations in the value of the dollar have little impact on the trade deficit. According to Morici, "If you can't adjust imports of oil, and most [oil imports] are priced in dollars, and you can't adjust currencies against Chinese yuan, which is pegged to the dollar, depreciating the dollar does not get you where you want to go." However, Zandi believes Chinese exports will decline and Americans will cut oil consumption or turn to alternative fuels as a result.(www.csmonitor.com)
"An Appeal for More Teeth"
U.S. News & World Report (09/24/07) Vol. 143, No. 10, P. 34; Knight, Danielle
Critics are calling for even more severe penalties against 527 political organizations to ensure that they do not stray outside the law during the 2008 presidential campaign. Such organizations are not allowed to spend more than $100 million in unregulated contributions, and Democracy 21 President Fred Wertheimer noted that "illegal expenditures ... can decide a presidential election and delegitimize the integrity of the result." The 527s can fund generic activities, such as voter registration drives, but they are prohibited from spending money to tell people to vote for or against certain candidates. A case in point is Americans Coming Together (ACT), a liberal 527 group funded primarily by George Soros and labor unions. The Federal Election Commission (FEC) fined the now-disbanded ACT $775,000 when it learned that most of the group's expenditures should have been managed as "hard money." ACT countered that its activities were within the scope of the law and that it struggled to comply with bewildering rulings. The group went on to say the FEC "vindicated" it because the commission "found no deliberate violations" of federal election campaign statutes and dismissed accusations that ACT had illegally coordinated activities with the John Kerry campaign. The 527s claim their messages are "issue ads" designed to educate voters, and restricting such ads constitutes a violation of free speech rights. Rep. Christopher Shays (R-Conn.) has introduced a measure that would require certain 527 groups to register as political committees. "We need legislation to force 527s to play by the same campaign finance rules that apply to all other organizations seeking to influence federal elections," he argued.(www.usnews.com)
"Fundraising Gets Creative"
Washington Times (09/17/07); Billups, Andrea
The 2008 presidential election is shaping up to be the costliest race to date, and there is no lacking for creativity in campaign fundraising strategies. Sen. Hillary Rodham Clinton (D-N.Y.) said donors would have their names entered into a raffle for a lunch at her D.C. residence with her and her husband, while Republican candidate Mitt Romney has advertised that students who raise $1,000 for his campaign will recoup $100. Sen. Barack Obama (D-Ill.) is offering grassroots contributors the prize of dinner with him. "Given the system we have, it's not surprising to see something like this ... occur," notes Democracy Rising PA's Tim Potts. "People want to be contenders, and that's the pressure they are under. They look at this and say while it's a lousy system [to raise money], it's the system we have, and I'm going to play it for all it's worth." University of Florida political scientist Daniel Smith says he does not find the hype generated by such campaigns unseemly, provided the disclosure is solid, and points out that there are laws in place to keep the fundraising system in check. Bellwether Consulting Group's Monica Notzon cites one congressman's strategy of inviting donors to his home for a meal he prepares himself, noting that such personal touches help supporters and lobbyists establish one-to-one relationships.(www.washingtontimes.com)
"Congressional 'Pork' Down Sharply Under New Disclosure Rules"
Boston Globe (09/23/07) P. A1; Wirzbicki, Alan
Earmarks are down in the national defense budget, as are their numbers in the transportation, housing and agriculture budgets. For example, the Senate Appropriations Committee approved a $459 billion military budget earlier in the month that includes 1,006 earmarks at a cost of $8.2 billion. In last year's bill, the panel sought to spend $10.5 billion on 2,644 congressional pet projects. The numbers are down because lawmakers now have to attach their names to earmarks in spending bills, a change Democrats say was needed following the scandals that ensnared Republican legislators and lobbyists in 2006. Critics express concern that earmarks channel money away from more worthy projects and invite corruption. One earmark in the defense appropriation bills involves an order to purchase merino wool socks from Cabot Hosiery in Northfield, Vt., and would cost $2 million in the Senate bill and $1 million in the House legislation. The request is backed by Vermont lawmakers. (www.boston.com/globe)
"Ethics Rules Prove to Be Lawyers' Bonanza"
The Politico (09/17/07); Cummings, Jeanne
Lawyers who are experts on campaign finance and lobbying rules cheered President Bush's signing of a new ethics law, noting that it has placed them in great demand. Fueling the need for this expert legal advice is the law's complexity, as well as the possibility that there will be greater enforcement of the new rules. The new law allows random audits by the General Accounting Office, mandates greatly increased congressional disclousre, and institutes severe penalties, including fines and incarceration, against lobbyists who run afoul of the law. As an example of the law's complexity, among its 23 exceptions to the gift ban are campaign contributions, despite the fact that the law defines a "gift" as anything of value--a definition that campaign contributions almost always meet. Perks for lawmakers such as hotel room discounts and airfare discounts via frequent flier mile programs are still acceptable, as is the receipt of trinkets worth less than $250. However, gifts from personal friends will be heavily scrutinized under the new ethics law, with Congress officially defining a "friendship" as either a long-standing personal relationship or a history of mutual gift giving. In addition, corporate offices outside of Washington will be required to retain more detailed records of how much time and money is devoted to lobbying. Also, a half-dozen disclosure reports must be furnished each year, and the accuracy of those reports must be certified by company officers. Four of these reports will update the amount of money spent on lobbying on a quarterly basis, while the remaining two, filed semi-annually, will record political contributions and fundraising activity. (www.politico.com)
"Big Businesses Look at Energy Use"
Associated Press (09/25/07); Tong, Vinnee
Major companies around the world are increasing efforts to reduce global warming, partly because they are more willing to disclose their carbon emissions, according to a report from the nonprofit Carbon Disclosure Project (CDP). The report studied how firms intend to handle the hazards and possibilities related to energy consumption and greenhouse gas emissions. Of the 500 biggest companies worldwide based on market capitalization, 75 percent responded to CDP's survey this year, compared to 47 percent when the survey was launched four years ago. The response rate among North American firms increased across all industry sectors, and nine of 10 sectors had a response rate of more than 50 percent. Of the companies that responded, 76 percent had deployed initiatives to slash greenhouse gas emissions, compared to 48 percent last year. Former President Bill Clinton helped release CDP's annual report on Sept. 24, remarking that the country's decision not to fight climate change has resulted in the loss of a job-creation vehicle. He added that the United Kingdom, in contrast, has exceeded the carbon-reduction targets established by the Kyoto Protocol, which was not signed by the United States. (www.ap.org)
"GOP Forced to Pivot on Taxes"
Roll Call (09/12/07) Vol. 53, No. 25, P. 23; Billings, Erin
As part of an extensive image overhaul for the GOP, Senate Republicans aim to incorporate new poll data revealing tax cuts are no longer a top priority for voters. The subject of lower taxes has long been a bedrock of the Republican platform, but the poll shows that the theme has been overused and now carries little weight with voters. According to the survey, Americans are more interested in health care, government spending and other domestic reforms than in the GOP's history of enacting tax cuts. GOP senators have concluded that, while they will continue to lobby for and support tax reductions, they must refrain from using tax cuts as a panacea to all problems. And when advancing tax cuts, Republican senators must work harder to clarify why they will be an effective solution. Yet the data also revealed that voters believe tax money is wasted and therefore oppose tax hikes. With these revelations in mind, Republican senators are struggling to revise and update their message, and to develop new answers to Americans' key concerns. This strategic planning--which draws on public polls, focus groups, and even internal soul-searching--is part of the GOP's long-term effort to transform the party, bond with the public, and recover the congressional majority.(www.rollcall.com)
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