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Influence of PACs increasing in Delaware

Out-of-state money plays outsized role
September 5, 2024

It may not be the millions of dollars pouring into this year’s presidential campaigns, but Delaware has its own, albeit smaller-scale, political action committee influence.

Of the 132 active committees that had filed a 30-day report with the Delaware Department of Elections for state office as of Aug. 28, the coffers range from zero upwards to over $1 million.

Citizens for a New Delaware Way is on the high end of PAC money with more than $1 million coming in so far from a New York billionaire, active in Delaware elections ever since the Chancery Court ordered the break up of his translation company. Outgoing money has mostly gone to Park Avenue-based Tusk Strategies, which so far lists Delaware LIVE out of Milford as its only Delaware expense with $8,100. The website currently shows a Say No To Bethany Hall-Long ad marked as paid for by Citizens for a New Delaware Way.

Dr. Samuel B. Hoff, George Washington distinguished professor emeritus of history and political science at Delaware State University, says it's a trend that keeps growing in Delaware.

“PACs are offshoots of an organization officially set up to contribute to campaigns, and we’re definitely seeing more of them participate in the Delaware landscape,” Hoff said, adding several trends have been developing as a result of PAC influence.

The role of out-of-state money is significant, he said.

That door was opened after a 2010 U.S. Supreme Court decision placed PAC contributions under the First Amendment’s freedom of speech and expression, allowing for unlimited PAC contributions. Hoff said a billionaire with a seemingly unending supply of cash can make a difference, especially in a small state like Delaware.

“When we talk about money … we can have very few people controlling what goes on in American politics, and that’s not a good thing,” Hoff said.

Then there is the tone of a group’s messaging. PACs claim to be altruistic or cosmopolitan in their messaging, Hoff said, but they tend to focus on one issue, and the messaging often turns negative.

That negativity is evident in a string of recent commercials airing on television paid for with PAC money.

“I would say those types of commercials chip away at the trust and legitimacy of the American political system when you get them back-to-back-to-back,” he said. “It seems to be prevalent in these commercials.”

University of Delaware professor Paul Brewer says negative campaigning is definitely up.

"I've seen high levels of PAC activity in Delaware campaigns this year – and much of that activity has revolved around negative campaigning. The negativity does fit with historical patterns in PAC campaigning. PACs often go negative because they're relatively anonymous, while candidates' own campaigns tend to be more positive because they're associated with the candidate's own name," Brewer said.

Ultimately, Hoff said, the fear is that negativity will erode trust in the country’s institutions.

“When it goes negative, I think there is a detrimental effect on the American political system,” he said. “It may not be immediate, but can you recoup the trust in a system? Or will that be a generation lost because they have been bombarded with those types of commercials?”

Busy PACs

On the county level, Preserve Sussex has been active with mailings and endorsements. With a reported balance of about $75,000, contributors in 2024 include Rob Tunnell III with $2,500 and developer Stonemark Ventures with $15,000. In 2023, contributors included Alex Pires with $2,000; Elmer Fanin, Stonemark Ventures and Stafford Street Capital with $10,000 each; and $25,000 contributed by Robert Hudson, for a total of $68,000.

This election season, the PAC has generated flyers sent across the county.

Another PAC generating flyers is Change Can’t Wait, which lists about $510,000 in receipts with contributions from Sussex County businessmen Chris Schell donating $20,000 aggregate, Aug. 16; CJ Hudson Ventures, $10,000, Aug. 20; Joe Schell, $10,000, Aug. 20; and Wilmington developer Louis Capano, $45,000 aggregate, also Aug. 20. Hundreds of thousands of dollars are posted for going to the PAC’s Wilmington address for a third-party advertiser. 

Other Sussex County-oriented PACs include Shore Democrats, which has generated more than $14,000, giving out up to $1,000 for candidates. About $9,000 has gone to Bear Trap Dunes in Ocean View.

On the low end so far are Plan for Sussex with $608, and Sussex County Chairmen’s Club with $54.65.

Long history of PACs

PACs have been part of the U.S. election process since 1944, when President Franklin D. Roosevelt’s re-election campaign established the first one.

In 1971, the Federal Election Campaign Act attempted more transparency by setting rules on contributions and disclosures. McCain/Feingold legislation had set limits to PAC contributions until a 2010 Supreme Court decision allowed for the creation of so-called super PACs, which can raise and spend unlimited amounts of money for a campaign.

Delaware code, under Title 15, Section 8020, allows PACs to pay for campaign staff wages, travel and associated expenses, advertising, election watchers and other expenses.

While contribution limits are spelled out for individuals and political parties, there are none specifically for PACs. Law states any contribution by a political action committee shall be by a check which discloses the full name and address of said political action committee. Delaware code also states that no political party shall make any contribution to any political action committee.

PAC information can be found at the Delaware Department of Elections website under campaign finance.

 

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