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650 contributors made $5.13B from N.J.

 

By JAMES W. PRADO ROBERTS and GREGORY J. VOLPE

Gannett New Jersey, c-n.com on the Web, October 11, 2007

 

TRENTON -- Some 650 firms gave $12.4 million in political contributions around New Jersey last year while earning $5.13 billion from all levels of government in the state, according to filings released Wednesday by the state Election Law Enforcement Commission.

The tally amounts to the most comprehensive public disclosure ever made in New Jersey about government vendors and their political contributions.

The disclosure was part of the state's restrictions on pay-to-play, in which politicians and businesses trade government contracts for campaign cash.

Companies that earned more than $50,000 from their public work in New Jersey and made even a single contribution of more than $300 in 2006 were required to detail both their contracts and their contributions.

The filings released Wednesday show:

About 650 vendors combined to contribute $12.4 million in 2006 while holding $5.13 billion worth of government contracts -- a ratio of about $410 worth of work for every dollar contributed.  That $12.4 million came in a year in which there were no statewide races and campaign expenses were low.

Roughly 1,000 companies with public contracts reported no political contributions in 2006.

The top contributors are dominated by engineering and law firms that win much of their work through no-bid contracts.  The six biggest political donors include three engineering firms, two law firms and an accounting firm.  Those firms contributed $2.3 million and were paid almost $98 million in government contracts.

The filings will likely renew debate about whether all government vendors should be banned from political contributions.

"Disclosure is a good thing, but we should go beyond disclosure and ban it," said Senate Minority Leader Leonard Lance, R-Hunterdon.

Assemblyman Joseph Cryan, D-Union, state chairman of the Democratic Party, said he still believes the best solution is to do away with pay-to-play restrictions but have lower contribution limits with instant disclosure.

"The most fundamental way to do this process is to have consistent lower limits. ... And instant reporting of donations and expenditures is a better way to go," Cryan said.

Only one of the top donor/contractors returned a call seeking comment -- T&M Associates, which gave the most, $599,545, while holding $30.7 million worth of contracts.

"It's a reflection of the quality of the work that they do and the size of the organization," T&M spokesman Pete McDonough said." ... The size of their contributions relative to the amount of contracts they have is right on the average across the board."

Harry Pozycki, chairman of the Citizens Campaign, which lobbied for the disclosure law, said the filings could show where the law needs to be made stronger.

"You use the disclosure to make sure, if there is an attempt to end-run the statute, then enforcement can be applied," Pozycki said.  "Now we've got to look at the disclosure data and see where we have to tighten up the law."

The new data provides a treasure trove of information about which vendors are working where, and doing what.

For instance, the law firm Florio, Perrucci, Steinhardt & Fader, co-founded by former Gov. James J. Florio, was paid $1.8 million last year -- more than half from defending NJ Transit against personal injury lawsuits.

One law firm, Capehart Scatchard, filed, but didn't know how exactly it earned $4.2 million in government contracts.

In an attached statement, the firm said, it earned its pay "from municipal bodies, school districts, county agencies, fire districts, joint insurance funds, State agencies."

"Details to be provided," the firm promised.

 

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