House District 37A – monoblogue

District 37: a closer look at finances

If money is the mother’s milk of politics – at least so it is said – then it’s probably good to know who has the biggest bottles and where the wet nurses are. So I’m beginning a two-part series on the local political races with some observations on the races in District 37.

This year there are three races in District 37 involving seven contenders. Unlike the situation in 2014, the first election involving the current districts, the Republicans found a challenger for District 37A (a majority-minority district) but the Democrats could only find one contender for the two seats available in District 37B. This also presents an interesting possibility: if the order for that two-seat district came in Republican Chris Adams in first, Democrat Dan O’Hare second, and Republican Johnny Mautz third, then Adams and Mautz would still win another term because the two winners in that district cannot represent the same county.

But I’m going to open this with the first race in District 37A. However, before I begin allow me to set the parameters here.

Over the last few days, I have pored over the campaign finance reports from each candidate submitted to the state Board of Elections beginning with the 2017 annual that covers from January of 2016. What I was most interested in, obviously, were the contributions, which I subdivided into five loose categories:

Donations from individuals within the area. For this exercise, the “area” is defined for both local districts as an address with a 216xx or 218xx zip code. I know in reality that expands the area into the 36th District, but it makes life much easier when you have hundreds and hundreds of line items to contend with.
Donations from individuals outside the 216xx and 218xx zip code area.
Donations from businesses within the area. Included in the definition of businesses are LLCs, LPs, and PAs.
Donations from businesses outside the area.
Donations from PACs. As a way of simplifying this, this also includes transfers from other campaign accounts, and (at my discretion) certain entities that were recognizable as similar to a political action committee, including larger businesses, unions, and governmental entities.

Having these all categorized and built into a spreadsheet, I can figure out several things: proportion of donations coming from each group, proportion of donations inside/outside the area, and an average donation. In many cases, I can compare and contrast candidates – but not always. Read on and you’ll find out why.

House District 37A:

Republican Frank Cooke vs. incumbent Democrat (since 2014) Sheree Sample-Hughes.

For Frank Cooke:

1 donation from an individual in area for $100
No donations from individuals outside of area
No donations from businesses in area
No donations from businesses outside of area
No donations from PACs and other committees
Average donation: $100.00
Cash on hand (bank account balance) – $2,504.69

100% of money comes from individuals, 100% comes from inside the area.

According to Frank’s last report, which supplants the ALCEs he previously filed (it covers from February to August), Cooke has a bank account balance over $2,000 yet there’s no indication how it got there. (Unless he raised it after the previous Pre-Primary 2 filing deadline, he should not have filed an ALCE for previous reports because he had raised more than $1,000.) He also has an outstanding obligation to his campaign of $574.54 that is noted as being from a predecessor campaign, presumably for the city of Cambridge.

It’s not a district where you need a ton of money to win but this raises a lot more questions than it answers about the Cooke campaign, especially this one: why such a late start to get serious about fundraising?

For Sheree Sample-Hughes:

119 donations from individuals inside the area for $10,944
17 donations from individuals outside the area for $1,345
20 donations from businesses in area for $3,690
35 donations from businesses outside the area for $8,825.36
72 donations from PACs and other committees for $20,350
Average donation: $178.47
Cash on hand (bank account balance) – $17,447.05

32.4% of her money came from inside the area, 22.5% from outside the area, and 45.1% from PACs and other committees. Out of the 54.9% from individuals and businesses, 27.2% was raised from individuals and 27.7% was from businesses.

Note that I did not pore over the reports with a fine-toothed comb to see if any money was collected during session (a no-no.) However, the amount of PAC money Sample-Hughes received seemed a little out of line with most of the others.

House District 37B:

Incumbent Republicans Christopher Adams and Johnny Mautz (both since 2014) vs. Democrat Dan O’Hare.

For Christopher Adams:

82 donations from individuals inside the area for $26,474
11 donations from individuals outside the area for $1,310
28 donations from businesses in area for $15,585
26 donations from businesses outside the area for $8,900
27 donations from PACs and other committees for $10,200
Average donation: $359.02
Cash on hand (bank account balance) – $1,470.52

67.3% of his money came from inside the area, with an almost dead even 16.3% coming from outside the area and 16.3% from PACs and other committees. Out of the 83.6% coming from individuals and businesses, 44.5% was out of individual pockets and 39.2% was businesses. (The numbers don’t round up to 100%.)

Two interesting recent developments from the Adams camp: while the last report noted Adams had a $7,500 loan out to his campaign that dated from 2014, he had also recently repaid back $60,000 he had owed, which certainly would explain the low cash on hand despite taking in over $60,000. The campaign also has one outstanding bill for $183.70, which could be an oversight given the cash on hand.

For Johnny Mautz:

293 donations from individuals inside the area for $100,550
110 donations from individuals outside the area for $39,065
81 donations from businesses in area for $23,660
51 donations from businesses outside the area for $13,150
96 donations from PACs and other committees for $31,800
Average donation: $329.99
Cash on hand (bank account balance) – $96,408.31

59.7% of his money came from inside the area, with 25.1% coming from outside the region and 15.3% coming from PACs. Out of the non-PAC money, 67.1% of his funding came from individuals and 17.7% from businesses. (Again those numbers don’t round quite correctly.) The piece that stuck out at me regarding Mautz was just how well-heeled his donors were, but this reflects his St. Michaels base as well as his background as a Congressional staffer – a number of donations came from the capital region, presumably fellows from his days there. It’s a sharp contrast to the Adams base, which is more in the middle-class Salisbury area. (This is true despite the lower per-donation figure – Mautz has a far larger volume of contributions than Adams does.)

For Dan O’Hare:

59 donations from individuals inside the area for $9,608
54 donations from individuals outside the area for $5,387.42
1 donation from a business in the area for $200
No donations from a business outside the area
2 donations from PACs and other committees for $400
Average donation: $134.44
Cash on hand (bank account balance) – $10,371.09

62.9% of his money came from inside the area, with 34.5% coming from outside the area and just 2.6% from other committees. Out of the 97.4% coming from individuals and businesses, 96.2% was out of individual pockets and 1.3% was businesses. (Yet another rounding error.)

The strangest thing about O’Hare’s pattern of receiving is that the donations outside the area are almost as numerous as the ones from inside. These come from 13 different states but seem to be clustered quite a bit around the New York City metro. (There is some member of the O’Hare family that lives there.) So it will be worth seeing in the next report whether he has more local support.

Senate District 37:

Incumbent Republican Addie Eckardt (since 2014, previously in House of Delegates 1994-2014) vs. Democrat Holly Wright.

For Addie Eckardt:

264 donations from individuals inside the area for $37,935
21 donations from individuals outside the area for $3,025
35 donations from businesses in area for $8,570
14 donations from businesses outside the area for $5,925
54 donations from PACs and other committees for $20,350
Average donation: $193.38
Cash on hand (bank account balance) – $69,126.05

61.3% of her money came from inside the area, with 11.8% coming from outside the area and 26.8% from PACs and other committees. Out of the 73.2% coming from individuals and businesses, 54% was out of individual pockets and 19.1% was businesses. (And again: the numbers don’t round up to 100%.) There’s nothing overly unusual about Addie’s report that I found – maybe a little PAC-heavy compared to the Republican Delegates but not as high as Sample-Hughes.

For Holly Wright:

117 donations from individuals inside the area for $17,380
10 donations from individuals outside the area for $1,050
No donations from businesses in area
No donations from businesses outside the area
No donations from PACs and other committees
Average donation: $145.12
Cash on hand (bank account balance) – $5,106.52

While all of her money came from individual donations, Holly’s proportion of funding from inside to outside the area was a whopping 94.3% to 5.7%. In essence, hers is the prototypical homegrown campaign – but considering she’s already behind in votes based on primary results, that’s not a good situation for Wright to pull an upset. It could work in a single-seat Delegate race, but isn’t as likely to succeed in a large district like District 37, especially with a decent-sized media market. Even the possible upside for her of having two walkover races in the adjoining district sharing the Salisbury media market (thus, perhaps cheaper media buys due to less demand) is negated by a heavyweight fight I’ll discuss in my second installment covering those District 38 races.

District 37 House: the five contenders

For my final look this round at local races, I decided to do both Districts 37A and 37B in one feel swoop, mainly because the District 37A is already set in Sheree Sample-Hughes. She had a free ride once Delegate Rudy Cane dropped out days after the filing deadline, but it’s also worth seeing how she’s set financially to begin her sure re-election run in 2018. I’ll get to her in due course.

Meanwhile, in District 37B there is one real race. Although the top two would normally be declared the winners, a state law prohibits two members from the same county in this two-person district which spans four counties. So the two contenders from Talbot County, Democrat Keasha Haythe and Republican Johnny Mautz, could finish 1-2 but only the winner would be seated. I’ll begin with that race. (link)

While Johnny Mautz has far outraised his opponent, the cash on hand is surprisingly close because Mautz had to survive a primary while Haythe did not – in fact, she has only filed one actual report (the Pre-Primary 1 report in May) while spending less than $1,000 in the last two reporting periods. She attested to this through Affidavits of Limited Contributions and Expenses, better known in the game as ALCEs. Obviously she’s had some spending since she has a website, but it doesn’t rise to the level of filing the paperwork.

Keasha’s report is fairly vanilla, although it would be interesting to know who pays for her website. As far as the small amount she’s raised, the $1,000 contribution from Rudy Cane’s account provides the most insight. She’s the perfect contrast to Mautz as all her contributions are local.

On the other hand, Mautz’s report reminded me of Mary Beth Carozza’s in District 38C because a huge portion of the seed money for both has come from connections they’ve made in Washington, D.C. But while Carozza’s local share has increased over the last several months, Mautz maintains his tremendous haul from friends in the Capital region. Over 60 percent of his total individual contributions come from outside the district, but not much comes from businesses and none from LLCs.

Mautz has also picked up some non-individual donations: $1,000 from the Republican Leadership Council of Talbot County, and PAC donations from the Maryland Farm Bureau, Licensed Beverage Association PAC, and the Maryland Dental PAC. He’s also received transfers from two federal accounts belonging to current Congressman Doug Collins of Georgia and former member Jim Saxton of New Jersey, as well as $500 from the NCPA Legal-Legislative Fund (which represents community pharmacies) and a cool $4,000 from the National Shooting Sports Foundation.

But the eye-popper is the fact Mautz has gone into six figures for spending – more than any other candidate in either District 37 or 38. Over $63,000 has gone just for printing and nearly $14,000 for media, generally to local businesses. (The folks at Bay Imprint and Poore House have made a lot of money from Johnny this election.) One other interesting expenditure is $9,750 to Public Opinion Strategies for a poll back in April. (Full disclosure: Johnny’s payment to me for his sidebar ad should be on his next report.)

So Mautz is the undisputed spending leader in this race. In contrast, the other Democratic contender, Rod Benjamin, is running the ultimate low-budget campaign because he’s neither raised or spent above $1,000 as a serial ALCE filer.

So that leaves me Christopher Adams, who’s also paid for advertising here. His figures are a little bit hard to follow, since a lot of his contributions and expenditures are tied up as loans. He took out and paid off a $20,000 loan from Value Enterprises, LLC and borrowed from his own personal coffers to replace the $20,000. So in truth he’s raised $11,370, with an 11% portion from LLCs and about 1/4 from out-of-district.

Adams has spent on some interesting items, with the biggest being $19,000 to Scott Strategies. He’s also transferred out some good-sized amounts on other entities and races: $500 apiece to the Caroline and Dorchester County Republican Central Committees (although the latter is mis-identified as the Democratic one), as well as to District 38B hopeful Carl Anderton. As far as media goes, I’m a line item along with an ad in the Salisbury Independent, among other things. But if you threw out the loan repayment, Scott Strategies would be well over half Christopher’s spending.

Finally, let’s look at the unopposed Sample-Hughes.

As you can see, the biggest part of her contributions is the $6,000 she received from the coffers of Rudy Cane. It’s worth noting that Cane’s campaign account was closed out as he distributed over $47,000 to several groups – local candidates Sample-Hughes, Haythe, unsuccessful Salisbury City Council candidate April Jackson, and Wicomico County Councilman-elect Ernest Davis all got something from Cane, as did the House Democratic Committee Slate ($13,242.40.) However, Rudy also gave $20,000 to Shore Up! (a local advocacy group) and distributed $13,000 between three local churches.

Sample-Hughes also received small donations from several local Republicans, such as her fellow Wicomico County Council members John Hall and Matt Holloway, along with Sheriff Mike Lewis. The Maryland Farm Bureau PAC chipped in $500 to her as well. She received very little from businesses, nothing from LLCs, and hardly anything from outside the area.

One thing I noticed is that her fundraising expenses were barely covered by the money raised, but aside from that it’s the sort of a report one might expect from an unopposed candidate. Fortunately, that $6,000 from Cane is about all she’s got so any 2018 contender isn’t far behind in the money race yet.

So that’s how District 37 shapes up. The next report is due October 24, just days before the election.

Cane no longer able

As I predicted in this space a few weeks ago, Rudy Cane has indeed pulled out of the District 37A race; he will leave after 16 years of service to his Dorchester and Wicomico county constituents. While the Delegate is having some minor health issues, the fact that he all but ceased fundraising last year and allowed his website to go dark pretty much revealed his plans. It seems he was in the race simply to keep other interested Democrats away from challenging his would-be successor.

With Cane’s withdrawal Wednesday, current Wicomico County Council member Sheree Sample-Hughes will become the Democratic nominee. And unless a Republican who is agreeable to both the Wicomico and Dorchester county Republican Central Committees steps forward before next Monday, it’s likely she will be sworn in next January as the new District 37A representative. I think this was the plan all along.

So the questions going forward are twofold: what will happen to the $47,742.40 remaining in Cane’s campaign account, and how would Sample-Hughes fare in the General Assembly if no opponent is found?

I suspect a number of Democrats – particularly minority ones – around the state already have their hands out trying to get some of Rudy’s leftover campaign cash. In order to close his books according to state requirements, he has to have a balance of zero. Rudy has already transferred $6,000 to Sample-Hughes, which made up most of her cash on hand as of the January filing.

As far as voting record goes, Sample-Hughes will probably be as reliably leftwing as Cane, which doesn’t necessarily reflect the makeup of her district. For example, while Cane serves as the Chair of the Agriculture, Agriculture Preservation and Open Space subcommittee of Environmental Matters, he voted for the SB236 Septic Bill in 2012 and against its repeal in 2013 as a member of the Environmental Matters Committee. Cane is also infamous for his strident opposition to an elected school board in Wicomico County, a position which is shared by Sample-Hughes. While they cite the concerns of the minority community, it would be interesting to see how quickly those concerns would vanish should a Republican governor be elected.

Yet this potential Sample-Hughes walkover could be a concern a few years from now, as she may use the Delegate seat as another stepping stone to the Maryland Senate in 2018, as either Richard Colburn or Addie Eckardt may be ready to retire. (Current Democratic opponent Chris Robinson lost to Colburn by 18 points in 2010, so it’s likely the winner of the GOP primary will be the Senator.) But with the prospect of a majority-minority district remaining carved out of the strip between Salisbury and Cambridge, she may be difficult to beat (but not impossible – ask Don Hughes, who squeaked out a win over Cane in 1994 in a 3-way race) regardless of voting record.

Campaign 2014: a District 37 look at finance

As part of my ongoing coverage of the 2014 campaign, today I’m going to look at a number of candidates who are running for seats in District 37, which covers portions of Caroline, Dorchester, Talbot, and Wicomico counties here on the Eastern Shore. Presently the district is served by three Republicans and one Democrat, with the district’s State Senator being Republican Richard Colburn. In the lower House of Delegates, Democratic Delegate Rudy Cane handles the smaller District 37A, which takes in portions of Dorchester and Wicomico counties and is drawn to be a majority-minority district, while GOP Delegates Addie Eckardt and Jeannie Haddaway-Riccio currently hold down the larger District 37B. In Maryland, House districts can serve as subdivisions of Senate districts and combinations of House districts (such as the case here) will have the same overall border as the Senate district.

I’ll begin with the Senate race: while Colburn has come under fire in recent months for both campaign finance issues and a messy pending divorce, he’s filed to run for another term and currently has no GOP challenger. Democrat Cheryl Everman of Talbot County is the lone Democrat in the race.

In terms of cash on hand, it’s no contest: Colburn has $31,994.55 in the bank while Everman is sitting at just $1,885.88. Moreover, the incumbent added to his total by collecting $35,101.55 in 2013 through a near-equal proportion of individual contributions (46.16%) and ticket purchases (46.65%), with political clubs making up the other 7.19%. In looking at the report, however, those political club contributions seem to be misclassified as they appear to be from various state PACs. Regardless, 104 individual contributions and 128 ticket purchases made for an average contribution of $140.42 to Colburn’s coffers.

On the other hand, only 38.61% of Everman’s $1,890.56 take for 2013 came from individual contributions – she received the balance of the money from the candidate account of “Joe Reid for Maryland.” Her 6 individual donors chipped in an average of $121.67 apiece. Since she started her reporting on May 30, this covers a little over seven months’ worth of financial activity.

In my coverage of the governor’s race, I also apportioned contributions into various categories: those from LLCs and similar legal entities, the legal community, unions, business, and out-of-state. (Many fell into more than one category.) I’m doing essentially the same here with the exception of the last category being out-of-district, and in this case I’m considering District 37 as the region covered by 216xx and 218xx zip codes – in essence the lower 2/3 or so of the Eastern Shore.

Colburn did well with the business community, receiving 30.84% of his 2013 donations from business entities. Just 2.66% came from law firms and only 0.31% apiece from LLCs and unions. (That translates to $100 each.) Only 16.02% came from outside of the enhanced district.

With such a small take, Everman’s totals reflected just 4.11% from outside the district, or $30. None of it came from businesses, law firms, unions, or LLCs.

Turning to the Delegate races, the District 37A race is most interesting financially. Democrat Rudy Cane has no GOP opponent yet, but is being challenged by current Wicomico County Council member Sheree Sample-Hughes. That’s not too shocking in and of itself.

However, Cane reported no cash balance on his report – yet is carrying forward $47,742.40 to his next one. Evem more mysterious is the fact he recorded no contributions for calendar year 2013, and the only incoming entry to his ledger is a $250 contribution from the AFSCME union in Salisbury on January 7 of this year. Yet he spent $6,250 on some interesting items – there’s only three, so this is an easy read.

In August, Cane reimbursed himself $50 for his filing fee. Prior to that, his campaign made two expenditures: on January 25, he gave Salisbury City Council candidate April Jackson a $200 boost to her campaign. But stranger still, July 13 saw a $6,000 transfer to…wait for it…Sheree Sample-Hughes.

Now consider that Sheree has a balance of just $7,147.04 in the bank right now. She took in $8,260 in 2013 so obviously only 24.33% of her income came from individual contributions while 3.03% (or $250) came from ticket sales. The other 72.64% of her campaign funding for 2013 came from her ostensible opponent.

But some of those individual contributions came from those one would consider political opponents. For example, fellow Wicomico County Council members John Hall and Matt Holloway (both Republicans) chipped in $100 and $50, respectively, while Wicomico’s GOP Sheriff Mike Lewis gave $40. All these were done in December, well after she had announced for the District 37A seat.

So while Cane got 100% of his contributions from unions based on the one donation, Sample-Hughes received just 1.77% from businesses and 1.11% from outside the district. Her 37 individual contributions and 9 ticket sales worked out to an average of just $49.13 apiece.

My gut instinct tells me that Cane isn’t really going to run to keep his seat unless he has to. The reason he filed, I think, was to keep another person from filing and challenging Sample-Hughes, who may win the district in the primary as sort of the anointed successor to Cane, who will turn 80 in May – thus the large contribution to her coffers. If he indeed runs, it’s likely he’d win another term then resign at some point, making Sample-Hughes the logical successor.

Meanwhile, there’s a financial shootout going for the District 37B seats, one of which is opening up as Delegate Haddaway runs as the lieutenant governor on the David Craig ticket.

It’s no surprise that the other incumbent, Addie Eckardt, leads the cash-on-hand parade with a balance of $44,488.89. But right on her heels is Republican newcomer Johnny Mautz, Jr. of Talbot County, who boasts $44,200.95 on hand. A third Republican hopeful, Christopher Adams of Wicomico County, has $24,777.29 in his coffers.

There are two others in the race, but Rene Desmarais of Wicomico County, a Republican, and the race’s lone Democrat, Keasha Haythe of Talbot County, only filed what are known as ALCEs, which attest a candidate has not raised or spent over $1,000 in the cycle. This isn’t surprising since both filed in mid-December, less than a month before the reporting deadline and just before the holidays, when political activity takes a hiatus.

So in looking at the three who filed full reports, we find that Mautz raised by far the most in 2013.

Cash raised:

Johnny Mautz, Jr. – $56,186
Addie Eckardt – $7,225
Christopher Adams – $6,165

As it turned out, Mautz raised every dime from individual contributions, while Eckardt raised 84.26% that way and Adams just 23.56%. The remainder of Eckardt’s money came from Maryland PACs ($1,350 or 15.74%) while Adams loaned his campaign $20,000 to make up 76.44% of his receipts.

But there’s a world of difference in the contributions each received. Mautz’s 143 individual contributions resulted in a whopping average of $392.91 per donation. Conversely, Adams received 40 contributions for an average of $154.13 apiece, and Eckardt picked up 74 contributions at an average $97.64 per.

And while none had significant contibutions from LLCs (Adams had 4.06% and Eckardt 1.38%), law firms (none reported), or unions (Eckardt received the only union contribution of $250, or 3.46% of her total), there was quite a difference in business support:

Addie Eckardt – 19.79%
Christopher Adams – 8.52%
Johnny Mautz, Jr. – 0%

Yet the one which made my jaw drop was out-of-district contributions:

Johnny Mautz, Jr. – 68.65%
Christopher Adams – 15.57%
Addie Eckardt – 13.84%

There’s no other way to say it: Johnny Mautz, Jr. had a lot of large checks dropped into his campaign from a number of inside-the-Beltway friends and acquaintances he’s gathered in several years of working in Washington, D.C. Obviously this will bear watching in future reports to see how much local funding begins to come in, but it’s obvious his end-of-year push came from outside the district. The initial money for Mautz’s campaign came mostly from locals, but those tended to be smaller amounts.

It’s obvious the big money in District 37 is going to be put into the open seat race for District 37B, although the rumored emergence of a big-name Democratic contender for Colburn’s Senate seat may bring some more money to that contest, and may cause some dominoes to be knocked over on the GOP side.

Tomorrow I’ll look at the races on the District 38 side.

Update: In looking up items for the sidebar widgets I’m going to feature for easy campaign website access, I came across a note on Cheryl Everman’s campaign Facebook page from January 12 stating she would withdraw from the District 37 Senate race for health reasons; however, she has not finalized that paperwork.