Why a MultiMillion-Dollar PAC Makes Political Sense
By Jim Waltze and Sam Hunter PAC Co-Chairs and Past AGC Presidents
Recent spikes in the cost of political campaigns are influencing the race to build bigger, stronger political action committees (PACs). The average cost of a Senate campaign has increased by 54%, while House campaign costs have increased 48%, compared to 1994, just over a decade earlier. To catch up with the growing campaign costs, construction industry PACs raised more than $14 million during the 2006 election cycle.
Other PACs, and a growing number of highly influential 527s, like MoveOn.org, with decidedly different and possibly anti-construction views, are aggressively influencing the political environment. These groups understand that a PAC is a powerful agent to generate votes, direct candidate support and facilitate political communications—and they outspent the 118 construction industry PACs 30 times over in 2006. It is essential that construction groups such as AGC keep and increase their energy and influence in the 2007-2008 election cycle to counter these groups.
The growing list of legislative and regulatory issues being considered by Congress also are causing PACs to become active in more races. With so many races being so close in recent years, providing support to pro-construction candidates is especially important. The 2008 political calendar is also creating a need for a larger PAC that can support candidates throughout every phase of the campaign. Early significant political donations and political support can make an immense impact in primaries or tossups. For this reason, giving sooner requires more money. Additionally, early money is more valuable to candidates who can use it to fend off challengers.
Cost of campaigns vs. AGC PAC (dollars
thousand: numbers represent average expenditures)
Year
House Expenditures
Senate Expenditures
AGC PAC Receipts
1978
108
929
57
1980
140
1,092
372
1982
211
1,710
683
1984
218
2,201
675
1986
262
2,697
659
1988
279
2,803
807
1990
289
2,610
731
1992
391
2,705
667
1994
414
3,867
697
1996
493
3,325
811
1998
552
3,776
816
2000
849
7,507
870
2002
898
4,812
952
2004
1,035
7,173
899
2006
647
3,348
1,040
White lines are presidential year
A million-dollar-plus PAC not only supports pro-construction candidates, it also facilitates an expanded get-out-the-vote effort in strategically targeted races. The construction industry employs more than 7 million people, and it’s important they understand the issues that impact their employers.
AGC’s PAC has been hovering around the million-dollar level in recent years, and last year hit the million-dollar mark for the first time in a single election cycle. This historic milestone puts AGC among the top 7% of the 3,000 PACs advocating in Washington, D.C. Through its 30-year history, our PAC has contributed more than $10.5 million to an average of 150 candidates each election cycle. In recent years, AGC PAC has been involved in more than 200 races, supporting the winning candidate more than 85% of the time.
Being a million-dollar PAC also increases notoriety from the fund-raising community, party leaders and candidates, furthering AGC’s access to key policy decision-makers. Currently, AGC is among the top 4% of construction organizations with PACs, but AGC PAC must continue to increase the funds raised as well as its political activism and participation within the industry so that our voice can be heard above the rest.
For more information on AGC’s political programs, visit www.agc.org/lac.
DID YOU KNOW?
What is a PAC?
A political action committee is a separate fund organized by a corporation, ideological group, labor or trade association for the purpose of raising and spending money to elect and defeat candidates. Federal PACs, like AGC PAC, file regular reports of activity with the Federal Election Commission.
When AGC PAC was created in 1977, candidates for the U.S. House of Representatives spent an average of $108,000. Compare that to the 2004 election when the average House incumbent spent more than $2 million.
The total price of the 2004 presidential and congressional elections was $4 billion, up from nearly $3 billion in 2000, $2.2 billion in 1996 and $1.8 billion in 1992.
In 2004, federal 527s raised more than $400 million.
Over the years, political inflation has only been dwarfed by monetary inflation. A $1,000 contribution in 1977 would be valued only at $330 in 2007.
What is a 527?
527s are tax-exempt organizations that engage in political activities, often through unlimited soft money contributions. In the 2006 cycle alone, 527s raised more than $380 million and played a major role in a number of races through their political contributions and issues ads that trumpet or censure a particular candidate’s record or credentials.
AGC PAC
When AGC PAC was created in 1977, candidates for the U.S. House of Representatives spent an average of $108,000. Compare that to the 2004 election when the average House incumbent spent more than $2 million.