New Jersey law currently prevents state contractors from giving more than $300 to statewide candidates’ campaigns. But that hasn’t stopped New Jersey contractors from donating more than $500,000 in total to the super PAC supporting Gov. Chris Christie’s (R) presidential campaign.
The Wall Street Journal reported Wednesday that campaigns and super PACs supporting Christie, Ohio Gov. John Kasich (R), Louisiana Gov. Bobby Jindal (R), and Wisconsin Gov. Scott Walker (R) together have raised at least $2.5 million in donations from companies with state contracts or taxpayer subsidies in their states.
Although it’s legal for campaigns and super PACs to take money from state contractors — a practice that raises questions about potential conflicts of interest — more than a dozen states currently prohibit contractors from making contributions to candidates in state races, the WSJ reported.
New Jersey is one of those states that has a “pay-to-play” law limiting contractors’ contributions because of the potential to influence the lawmakers’ decisions. Jeff Brindle, the executive director of the New Jersey Election Law Enforcement Commission, told ThinkProgress that the state law limits any large contributions to gubernatorial or other statewide elections, but has a number of loopholes.
“We don’t have a ban on contractor contributions, but we do have a $300 limit on contractor contributions” for companies with state contracts of more than $17,500, he said, adding that the group is considering raising the limit to $1000.
“More and more contractor money is flowing to political action committees and independent groups, thereby getting around the law,” he said. “The thinking of the commission is that if the contribution limit is raised somewhat to $1000, some of that money would start to flow back to the candidates themselves and into political parties, being much more transparent.”
Christie has opposed expanding the state’s pay-to-play laws to include other stipulations like requiring the state to disclose the fees it pays to outside investment managers.
Brindle said the commission’s jurisdiction doesn’t extend to federal elections, but Craig Holman, a government affairs lobbyist for Public Citizen, told the WSJ that the contributions to Christie’s super PAC should not be permitted. “It’s very much a conflict of interest,” Holman said.
Christie has long been accused of taking donations from groups that may seek his influence. His finance leadership team includes several members who own or work for companies that made tens of millions of dollars from state contracts in 2014, according to NJ Advance Media. In 2013, the Republican Governors Association — which he also headed beginning that same year — helped him get reelected and collected hundreds of thousands of dollars from state contractors.
Christie is currently polling in 11th place among his Republican competitors. When he most likely calls off his campaign before the general election, he’ll return to New Jersey — a state that overwhelmingly disapproves of him — and will continue to serve as governor through 2017.
Spokespeople for the governors’ campaigns told the WSJ the lawmakers aren’t beholden to anyone, despite the donations from contractors, but the connection cannot be overlooked. Many of the presidential campaign donations come from companies seeking contracts. And Christie has been known to offer jobs, favors and contracts to his personal friends.
The chairman of New Jersey-based the Citizens Campaign has said the state’s pay-to-play law is costing county and local governments millions of dollars in higher fees and unnecessary government contracts. Those costs are then passed on to the taxpayers. While the more than $500,000 Christie’s super PAC has received from contractors doesn’t fall under the law, it’s likely to have an even greater effect on how the governor conducts business back home.