With guardrails removed by courts and Republican inaction, wealthy donors like the founder of LinkedIn, George Soros and the richest woman in Wisconsin are dumping cash through loopholes in state campaign finance law.
By Peter Cameron, THE BADGER PROJECT
The Democratic Party of Wisconsin is again badly beating the state GOP in fundraising so far this year — to a ratio of more than three to one. Experts say that could have a big effect on races up and down the ballot in a year when the Wisconsin State Legislature’s electoral map will be its most competitive in years.
The state party, as well as Democratic campaign committees for the state Senate and state Assembly, have raised more than $17 million in 2024, dwarfing the $5 million raised by their Republican counterparts. That’s according to the Follow the Money database, which aggregates state campaign finance reports.
In 2023, a year liberals swung control of the state Supreme Court in a historically expensive election, the Democratic Party of Wisconsin raised four times more than the state GOP, according to an analysis by the Wisconsin Democracy Campaign.
That’s following a trend in recent years of Democrats raising more than Republicans in the state.
Now, in a presidential election year when Wisconsin is again an essential swing state, the cash advantage could give Democrats another big lift, experts say. More money equals more political messaging: advertisements on TV, the radio, the web and through the mail, to encourage the party’s base to get to the polls, and discourage your opponents’ voters.
“All of this increased funding and support for the Democratic Party will certainly trickle down, and likely influence state-wide and perhaps even some local races,” said Alisa Von Hagel, a political science professor at UW-Superior. “Even if this increased money doesn’t make it to state-wide or local candidates, increased advertising by the Democrats could positively influence these down-ballot candidates as well.”
Aaron Weinschenk, a political science professor at UW-Green Bay, noted “there’s actually some recent research in political science showing that television ads at the presidential level have larger effects on the down-ballot races (e.g., House, governor, etc.) than on the presidential race itself!”
That could benefit Democrats in the first election in years when they have a chance of taking back the state legislature.
Joe Oslund, Democratic Party of Wisconsin Communications Director, argued that Wisconsin Democrats have built a winning operation that has powered them to victory in recent elections.
“The resources we’ve been able to raise through our innovative grassroots digital fundraising have enabled us to hire organizers across the state, support our county parties and candidates up and down the ballot, and fund a year-round voter protection team to ensure every eligible Wisconsinite is able to cast their vote,” he said.
The Republican Party of Wisconsin did not respond to requests for comment.
The million-dollar loophole allowing the super-rich to avoid state campaign finance law
Much of the money raised by both parties is coming from huge donations, sometimes seven figures, from ultra-wealthy donors in state and out.
A loophole in state law allows those donors to circumvent campaign finance limits in Wisconsin and divert huge sums to the candidates.
While state law caps the amount a donor can give directly to a political candidate — $2,000 to someone running for state Senate, for example — no limit exists on what one can donate to a political party. And nothing limits what a political party can give to a candidate. So big donations to the political parties can mean big transfers of cash to candidates.
The loophole was ripped open by court decisions in recent years and inaction by Republicans, who have controlled the Wisconsin State Legislature since 2011. State Democrats have proposed bills to close the loophole, putting limits on what political parties can receive and give, but Republicans in control of the legislature have ignored them.
Now, Democrats are using the loophole to their advantage, raising and distributing huge sums to their candidates through the state party. It has regularly outraised the state GOP since Ben Wikler became its chair in 2019. Democrats have won most statewide races since then.
NAMING NAMES: The ultra-wealthy pouring huge sums of cash into Wisconsin
After giving nearly $3.6 million to the Wisconsin Democratic Party in 2023, Reid Hoffman, a vocal Silicon Valley liberal who co-founded LinkedIn and now sits on the board of Microsoft, has given the party another $3 million in 2024, according to state campaign finance records. Forbes estimates his net worth at $2.5 billion.
Diane Hendricks, the co-founder and chair of ABC Supply in southern Wisconsin and a major Republican donor, has given state GOP committees more than $1 million in 2024. She gave more than $1.5 million to state GOP committees last year. Forbes estimates her net worth at nearly $22 billion.
George Soros, the legendary Wall Street investor and bogeyman to the political right, has given the Wisconsin Democratic Party $1 million this year, after giving it $1 million in 2023. Forbes estimates his net worth at $7.2 billion.
Kenneth Duda, co-founder of Arista Networks, a computer networking company headquartered in the San Francisco Bay area, has given the Wisconsin Democratic Party $1 million this year.
William Harris, an orthopedic surgeon from the Boston area and founder of the Harris Orthopaedics Laboratory at Massachusetts General Hospital, has given the Wisconsin Democratic Party $500,000.
The Wisconsin Democratic Party has also received $500,000 each from Gloria Page and Nina Singh both from the San Francisco Bay Area.
Big political donors can also give unlimited amounts to independent spending groups, like Super PACs, to fund political advertisements for or against candidates, and many do.
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