ELEC: Contributions by public contractors in 2017 surged for the first time in four years

The Freeholder fight unites more than it delights.

Contributions by public contractors in 2017 surged for the first time in four years as major state elections for governor and all 120 legislative seats brought out the checkbooks, according to a new analysis by the New Jersey Election Law Enforcement Commission (ELEC). Annual disclosure reports filed by contractors show they forked over $9.4 million in campaign cash last year, a 4 percent increase from 2016, which had no state elections. Contributions decreased each of the three previous years.

“It is clear the 2017 contest to replace Governor Chris Christie after eight years in office and historic spending in the third legislative district created huge stakes for all contributors, including public contractors,” said Jeff Brindle, ELEC’s Executive Director. “Even with more incentive to give last year, contributions from contractors are down 43 percent from the peak year of 2007,” he said. “Party coffers have fallen off almost as sharply, and this trend has given a big edge to special interest groups operating independently of parties and candidates.” “We hope the new Murphy administration and the Legislature will take up ELEC-recommended legislation this year that would greatly simplify pay-to-play laws, increase the amount contractors can give, and allow parties to accept more than just token donations from contractors,” Brindle added. The top ten contractors ranked by their contributions gave $2.6 million in 2017, about 28 percent of all contributions. Most years, engineering firms dominate the top ten and this year was no exception as the top five donors all are engineering firms. Rounding out the list are three law firms and two construction firms.

Following another trend, the biggest recipients of contractor contributions were county-level candidates, including five of the top ten. Topping the list was Senate President Stephen Sweeney (D-3), whose reelection campaign appears to be the most expensive legislative district race in U.S. history with combined spending of nearly $18.7 million. Two federal independent spending-only committees that backed him also received contractor support- General Majority PAC ($47,500) and New Jerseyans for a Better Tomorrow ($41,750).

The campaign for governor also attracted considerable spending by public contractors. Contractors reported giving candidates for governor or the national committees that took part in the race received at least $275,727. Governor Phil Murphy received the most ($114,002) while his challenger, former Lieutenant Governor Kim Guadagno, received $64,775.

The numbers in this report reflect information available to the Commission through April 5, 2018 and should be considered preliminary. Some contractors are likely to submit reports or amendments after that date that could change the totals. Numbers earlier than 2017 reflect these revisions and could differ from those reported in prior press releases. All reports are available at ELEC’s website at www.elec.state.nj.us. Under pay-to-play laws, all businesses that have received $50,000 or more through public contracts must indicate whether they have made any reportable contributions and if so, must disclose contracts and contributions to ELEC by March 30th for the previous calendar year.

With some exceptions, most firms with state contracts in excess of $17,500 are barred from contributing more than $300 to gubernatorial candidates, other candidates, state political parties, legislative leadership committees, county political parties and municipal political party committees. Firms that exceed this limit must seek refunds of excess contributions within a necessary time period or relinquish their contracts for four years. The average contribution made by contractors in 2016 was $1,162- up 5 percent. The largest average of $1,222 occurred in both 2006 and 2007. Three health insurance companies that service the state and/or other governmental entities in New Jersey topped the list of contract recipients. The list also includes two banks, a natural gas utility, a telecommunications firm, a life insurance firm and two construction firms.

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