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Tags13 percent decline, down from high of $16.4 million in 2007
Public contractors reported making $9.4 million in political contributions last year, a 13 percent decrease from 2009, Jeff Brindle, director of the state New Jersey Election Law Enforcement Commission, reported Wednesday.
“This is the first time since we started monitoring contractor contributions that the total has dropped under $10 million,’’ Brindle said.
Contributions from contractors peaked at $16.4 million in 2007, the last year in which both legislative houses were up for reelection. Total reported contributions have dropped 38 percent since the restrictions under the state’s “pay-to-play law” went into effect five years ago.
Brindle offered several possible explanations for the decline.
“For one thing, there were no statewide elections last year, and only a handful of special legislative elections,” he said. “That could cause some drop-off. Also, some are afraid of losing business by inadvertently violating pay-to-play laws. The recession and widespread budget-cutting by government agencies also could be taking a toll.’’
However, Brindle noted that the overall value of the contracts reported last year fell 4 percent to $5.8 billion.
“Use of these PACs becomes a problem if they are intended to deliberately circumvent state contribution limits and pay-to-lay laws,’’ Brindle said.
Brindle also noted that the 2010 numbers are preliminary. They reflect information available to ELEC through March 31. He said some contractors are likely to submit amendments after that date that could change the totals. Numbers before 2010 more fully reflect these revisions. While 2010 numbers are likely to change, Brindle said the downward trend is expected to hold.
Under pay-to-play laws, all businesses that have received $50,000 or more in total public contracts must report their contracts and contributions to ELEC each spring. Those with state contracts are prohibited from contributing more than $300 to gubernatorial candidates, state political parties, legislative leadership committees, county political parties and municipal political party committees. Firms that exceed this limit must refund the excess contributions within a necessary time period or relinquish their contracts for four years.
Similar limits apply to municipal or county contractors unless local officials adopt a “fair and open” bidding process intended to encourage competition. Where “fair and open” rules are adopted, normal contribution limits, which are much higher, apply to contractors.
State contribution limits range from $2,600 per election from individuals or corporations to candidate committees to $37,000 annually to county party committees.
During the five-year period, the average donation from contractors fell 6 percent from $1,225 to $1,101- down 10 percent.
State government was the largest source of contracts in 2010, followed by independent authorities, municipalities, counties, school boards, fire districts and the Legislature.
As one of its legislative priorities, bi-partisan ELEC has recommended adopting a single statewide pay-to-play law that would end separate local and county pay-to-play laws as well as the “fair and open” loophole. ELEC also is urging the Legislature to reduce the current threshold for disclosure from $50,000 to $17,500.
“Commission members believe this move would greatly streamline the pay-to-play reporting process while increasing the amount of disclosure to the public,’’ Brindle said.
He added that ELEC also has recommended making it harder for one candidate or group to establish multiple, affiliated PACs as a means of skirting campaign finance and pay-to-play laws. The Federal Election Commission already has such regulations.
Here are the 10 business entities that reported the largest contribution totals for 2010:
T&M Associates - $435,110
CME Associates - $346,650
Remington & Vernick Engineers Inc. - $342,450
Pennoni Associates Inc. - $201,020
Maser Consulting P.A. - $193,590
Birdsall Services Group - $180,800
Richard A. Alaimo Associates - $168,150
Waters, McPherson, McNeill, P.C. - $ 147,075
Parker McCay P.A. - $129,348
Capehart Scatchard P.A. - $124,075
Here are the 10 firms that reported the largest contract totals for 2010:
Horizon Healthcare of New Jersey Inc. - $1,416,973,042
Tilcon New York Inc. - $496,194,058
Amerigroup New Jersey Inc. - $377,566,876
The Prudential Insurance Company of America - $257,952,092
PKF-Mark III Inc. - $234,945,741
South State Inc. - $191,767,158
Verizon New Jersey Inc. - $143,877,111
Colonial Bank FSB - $115,651,783
Crisdel Group - Sordoni Construction, A Joint Venture - $101,656,146
J. Fletcher Creamer & Son Inc. - $81,434,503
Here are the total number of public contracts reported by businesses under the “Pay-to-Play" law:
2010 18,961 (2,459) -10.6%
2009 21,420
2008 23,109
2007 22,589
2006 24,927 (5,966) -24%
Here are the total number of businesses reporting annually under the “Pay-to-Play” law:
2010 1,900 (149) -7%
2009 2,049
2008 1,834
2007 1,990
2006 2,312 (412) -18%
Here are the total contribution reported annually by public contractors:
2010 $9,413,012 $ (1,456,553) -13%
2009 $10,869,565
2008 $12,190,643
2007 $16,399,852
2006 $15,093,816 $ (5,680,804) -38%
Here are the total value of contracts reported annually by businesses subject to the “Pay-to-Play” law:
2010 $6,105,402,839 $ 43,431,670 1%
2009 $6,061,971,169
2008 $5,008,857,958
2007 $5,686,716,597
2006 $10,395,179,530 ($4,289,776,691) -41%
Here are the number and amounts of contracts awarded by public entities in 2010:
State 1,380 - $3,643,863,331
Independent Authority 2,196 - $858,880,404
Municipality 9,389 - $738,501,229
County 1,842 - $537,043,818
School Board 3,482 - $315,964,900
No Information 137 - $7,356,629
Fire District 522 $3,749,416
Legislature 13 - $43,112
Reports from 2010 and earlier years are available at ELEC’s website at www.elec.state.nj.us.
-TOM HESTER SR., NEWJERSEYNEWSROOM.COM
