Wealthy donor avoids Mo. limits with 100 political action committees

JEFFERSON CITY, Mo. (AP) -- A wealthy political activist is bankrolling 100 new separate political action committees, highlighting how those who want to give large amounts of money can continue do so even under Missouri's recently reimposed campaign contribution limits.

The 100 political action committees were kicked off with contributions of $2,500 each from Rex Sinquefield, a retired investment banker who ranks among the state's biggest political donors. He also advocates the abolition of the state income tax and is active in the school-choice movement.

After receiving Sinquefield's money, 78 of the new political action committees each in turn gave the maximum allowed contribution of $1,275 to Democratic attorney general candidate Chris Koster, of Harrisonville.

Although each committee has a separate name and bank account, their spending decisions all were made by Sinquefield and his advisers, Sinquefield spokeswoman Laura Slay said Monday.

The money-funneling structure essentially allowed Sinquefield to channel about $100,000 to Koster while technically staying within the law's limits because the donations came from separate committees.

"Campaign donation limitations have never kept organizations and people from giving as much as they like to candidates with whom they agree on policy," Sinquefield said in a written statement.

Koster campaign spokeswoman Elisabeth Smith defended Sinquefield's method of contributing to Koster's campaign.

"The PACs comply fully with campaign finance law," she said.

From Jan. 1 until July 19, donors were allowed to make unlimited contributions to candidates for Missouri offices. Sinquefield contributed more than $330,000 during that time to candidates for statewide office and the Legislature, including $100,000 to Republican Gov. Matt Blunt.

The unlimited donations ended when the Supreme Court struck down the law that had repealed Missouri's campaign contribution limits, effectively reinstating the caps.

As a result, candidates for statewide office -- such as governor or attorney general -- can accept no more than $1,275 per election from each individual, business or political action committee. Senate candidates can accept up to $650 and state House candidates up to $325.

Late last month, Sinquefield's representatives created 100 political action committees that he said focus on repealing the state income tax, replacing the earnings taxes in St. Louis and Kansas City and "improving our schools."

The committees have eight basic names, with regional names spiraling off those. For example, 12 committees share the name Missourians Needing Educational Alternatives, or MNEA. One of those is designated as a statewide political action committee while the others are designated as Northeast, Northwest, Heartland, Bootheel, Central, North, South, West, East, Southwest and Southeast. All gave the maximum amount allowed to Koster.

Sinquefield pointed to a 1997 Missouri Ethics Commission advisory opinion stating that the establishment of multiple political action committees by a single association does not violate state campaign finance laws.

Joe Carroll, the Ethics Commission's campaign finance director, said Monday that the 1997 opinion remains valid today. Each of those regional committees can have the same treasurer, and the law is silent about whether the same person can make decisions on how each committee spends it money, Carroll said.

Sinquefield said that to restrict multiple political action committee donations "would be to undo transparency" in the political process.

Although Sinquefield was the initial donor to each committee, the hope is that others also would contribute to the political action committees, Slay said.

The basic names of Sinquefield's other committees are: Missourians Supporting Teaching Excellence; Merit Pay for Missouri Teachers; Your School Your Choice; Parents for Public Schools; Missourians for Tax Reform; My Job, My Wage; and Missourians for Economic Growth.