Crossposted to Blue Commonwealth
An examination of Brian Moran’s fundraising for governor through the last quarter as disclosed on VPAP shows an unusual level of support for him from the defense and homeland security industries (collectively referred to herein as “defense industry”) as compared to both candidates in current elections and over several past election cycles in Virginia.
The VPAP data does not establish any wrongdoing on Mr. Moran’s part, and it is not the purpose of this diary to make such an allegation. In fact, I take it on faith that Mr. Moran is an honest public servant and a strong Progressive with the best of intentions.
But the pattern of contributions from the defense industry to him and his campaign does stand out, and, frankly, is worth a look because Mr. Moran’s brother, Congressman Jim Moran, is a powerful member of the House of Representatives Appropriations Committee.
The donations also bear examination because Mr. Moran himself has made fundraising an issue in the primary campaign, most notoriously with his “we need a fighter, not a fundraiser” haymaker aimed at Terry McAuliffe at the JJ Dinner. That remark has been followed up by numerous broadsides launched on Virginia and national blogs against Mr. McAuliffe alleging in one way or another that his fundraising history is both evidence of questionable ethics on his part, and potentially fodder for the Republicans in the general election to use against him, should Mr. McAuliffe be the party’s nominee. And even earlier in the campaign, Mr. Moran attempted to use Mr. McAuliffe’s fundraising outside of the Commonwealth against him, until it quickly came to light Mr. Moran had himself done some significant fundraising out of state and the issue was dropped.
Furthermore, Mr. Moran tried to use the fact of his early strong fundraising as a reason for Creigh Deeds to drop out of the governor's rac and run instead for attorney general. The fact is, however, that using money against your opponent, either as a proxy for touting your own strength or for questioning the ethics of that opponent, it invites an examination of your own circumstances. And where money is concerned, everyone looks dirty.
The title to this diary s drawn from a Bob Dylan song, "It's Allright Ma, I'm Only Bleeding." The entire verse is as follows:
Old lady judges watch people in pairs,
Limited in sex, they dare,
To push fake morals, insult and stare.
Money doesn't talk, it swears.
Obscenity, who really cares?
Propaganda all is phony.
The Data
According to VPAP data:
- The Defense industry contributed roughly $238K to the four gubernatorial candidates in 2008, as follows:
Brian Moran - $192K (80.7%)
Terry McAuliffe - $25K (10.5%)
Bob McDonnell - $17K (7.1%).
Creigh Deeds $4K (1.7%)
- Mr. Moran Gubernatorial campaign has received 16 donations from individuals that exceed $20K (excluding the transfer of funds from Moran for Delegate). Five are from executives in the defense industry. Mr. Moran also received $75K in donation from the campaign committee of his brother, Rep. Jim Moran. The only other candidate to receive a donation in excess of $20K from the defense industry is Mr. McAuliffe, who received one.
- The five individuals from the Defense industry and their companies who donated to Mr. Moran’s campaign are:
- George J. Pederson
CEO
ManTech
- John A. Braun
Vice President, Washington DC Operations (basically, Government Affairs)
Teledyne Brown Engineering (a subsidiary of Teledyne Technologies)
- Dario O. Marquez
President and CEO
MVM Inc.
- Lauren Garcia
COO and CFO
Potomac Management Group
- Diane M. Smith
General Counsel
Strategic Analysis, Inc.
- Collectively, these individuals have donated to Mr. Moran as follows:
- 2008
Moran for Governor -- $162,050
- 2007
Moran for Delegate -- $22,250 (all from Mr. Braun)
Leadership for Virginia’s Future (a PAC associated with Mr. Moran) -- $36,000
- 2006
Moran for Delegate – $10,000 (all from Mr. Braun)
- 1996 - 2006
Moran for Delegate -- $5,500
- Overall, the top five industries that have donated to all gubernatorial candidates are as follows:
1. Real Estate/Construction
2. Finance/Insurance
3. Business-Retail;
4. Law
5. Technology/communication.
For Mr. Moran, however, Defense occupies the third spot (for Mr. McAuliffe and Creigh, the third largest category is actually “Miscellaneous,” reflecting in Mr. McAuliffe’s case a large donation from author John Grisham and for Creigh numerous donations from retirees in Central Virginia).
- Donation history of the five large Moran contributors (excluding donations to Moran):
- George Pederson (ManTech)
Years donating: 2001-2009
Total amount donated – $94,500
Amount donated excluding Moran -- $44,500
-- To Democrats: 47%
-- To Republicans: 53%
- John Andrew Braun (Teledyne)
Years donating: 2002-2008
Total amount donated -- $115,225
Amount donated excluding Moran -- $31,545
-- To Democrats: 84%
-- To Republicans: 0%
-- To Others: 16%
- Dario O. Marquez (MVM)
Years donating: 1997 – 2009
Total amount donated: $46,250
Amount donated excluding Moran – $11,250
-- To Democrats: 96%
-- To Republicans: 4%
(NOTE: From 1996, Marquez’s company, MVM, has made an additional $179,300 in donations, none to Brian Moran. Those have gone 57% to Democrats, 20% to Republicans and 21% to Other)
- Lauren Garcia (PMG)
Years donating: 2005-2008
Total amount donated: $43,000
Amount donated excluding Moran – $18,000 (all to Tim Kaine)
-- To Democrats: 100%
-- To Republicans: 0%
- Diane M. Smith
Years donating: 1996 – 2009
Total amount donated: $181,849
Amount donated excluding Moran – $131,849 (roughly $108K to Tim Kaine)
-- To Democrats: 100%
-- To Republicans: 0%
Noteworthy Figures
As shown above, the Defense industry has favored Mr. Moran by a huge margin, directing some 80% of their donations his way. As a point of reference, in the 2005 gubernatorial election, donations from the industry were split evenly between Gov. Kaine and Jerry Kilgore.
In terms of sheer amount, at this point in the cycle in the 2005 election, i.e., 2004, about $114K has been donated to candidates. Through 2008, however, that number has been doubled – to $238K. Virtually all of this cash went to Brian Moran.
These increases, of course, can be explained by the fact that there is a contested primary in the Democratic primary, advancing the schedule for donations and skewing the numbers toward the Democrats. Certainly, as the campaign moves into the general Bob McDonnell will see greater donations from this industry.
But it also worth noting the eye-popping amounts from this industry for this election. According to VPAP, the Defense industry donated a total of approximately $500K to gubernatorial candidates in 2005. So far, as noted, $238K has been donated in this election.
But, the 2005 figure is off of nearly $40 million raised. So far, total fundraising for the 2009 election, including primaries, has only been $7 million.
2006: The Watershed Year
Regardless of the increasing amounts of contributions, 2006 stands out as a watershed year for Brian Moran and the defense industry.
Consider this:
-- Total donations to Brian Moran (whether for governor, delegate or PAC) from 2006 to present, from five largest donor and Jim Moran campaign funds: $305,300.
-- Total donations from these donors to Brian Moran prior to 2006: $5,500.
-- Total Donations from these donors to all other Virginia candidates over the last TWELVEyears: $237,000 ($127K of which was donated to Tim Kaine). Of the remaining $108K, nearly $40K, or 37%, was donated to non-Democrats.
The change that occurred in 2006 is seen more clearly on this chart:
So, what occurred in 2006?
Well, on the one hand, Tim Kaine was sworn into office and jockeying started almost immediately between Mr. Moran and Creigh to position themselves for the next election. Still, at this point in the cycle, it was still unknown whether Mark Warner would try again for the Governor’s job, and if he had, obviously, neither Mr. Moran nor Creigh would have been likely to run.
More directly, in 2006 the political zeitgeist had clearly turned the Democratic Party’s way and they stood on the cusp of a political comeback. If Democrats were to take back the House, Rep. Jim Moran would become one of the most powerful Congressmen on the Appropriations Committee.
Indeed, on June 9, Rep. Moran told the ACDC, that he would “earmark the shit” out of his newfound Appropriations power. On June 12, John Andrew Braun donated $5,000 to Mr. Moran’s campaign to be re-elected Delegate. In 2007, the money started to really roll in from the Defense industry to Mr. Moran – of the $150K donated to House of Delegate candidates in 2007, $72K went to Brian Moran – the largest single recipient by far.
It is certainly possible to argue that the donations reflected the concentration of defense contractors in Northern Virginia, as well as Mr. Moran’s high position in the Democratic caucus. And certainly, three of the five large contributors have records of contributing significant sums to Democratic candidates, and not others. Still, the sums contributed post 2006 are, in the case of every contributor save Ms. Smith, much higher than earlier contributions, and the question that still lingers is why such a strong concentration in a single industry would opt to support the same candidate for an office that is not critical to their business operations.
Is Brian Moran his brother’s keeper?
Jim Moran is a powerful and controversial congressman. He and Brian Moran are said to be very close to one another. The issue, however, is not tarring Brian Moran with the sins of his brother. Mr. Moran, for example, ought to have nothing to explain with respect to his brother’s checkered history regarding the Jewish-American community.
But given the unusual amount of donations from a industry over which Mr. Moran’s older brother wields a great amount of power, that relationship needs to be acknowledged and evaluated. Indeed, it is impossible to ignore, given Rep. Moran’s own comments about “earmark[ing] the shit” out of his position on Appropriations, and this comment on Rep. Moran’s own official website:
As a member of the powerful Appropriations Committee, Jim has left his mark on the region by boosting investments in federal research and development, steering federal dollars to generate defense and technology jobs in Northern Virginia[.]
Most troubling in the fact that Rep. Moran was the recipient of large amounts of contributions from PMA Group, the former Washington, DC lobbying powerhouse. The firm is currently the subject of a federal investigation into whether PMA clients received federal contracts and earmarks in exchange for campaign contributions, and Rep. Moran is liable to be drawn into that investigation, both for his earmarking record and his close relationship to Rep. John Murtha (D-Pa).
It is worth noting, therefore, that two of the large donors to Brian Moran totaling $114K, ManTech and Teledyne, were also PMA clients. Both firms are recipients of significant federal contracts and earmarks, some by Mr. Moran.
Conclusion
So, what to make of all this?
These donations certainly raise affair question about whether they were made with an eye not towards electing the best possible governor of Virginia, but toward the candidate’s brother across the river in Washington, DC. If so, it is fair to ask how using the Virginia Governor’s race to curry favor with the congressman of a single district serves the entire Commonwealth.
And, in the spirit of some of the attacks that have been launched against another candidate’s fundraising record, it is also fair to ask whether these donations potentially present a campaign issue to the Republicans, should Mr. Moran end up as the nominee.
(For purposes of disclosure, I am a supporter of Creigh Deeds in this primary. I do not work for or volunteer for his campaign.)