Power & People - The Koch Brothers and the American Legislative Exchange Council (ALEC)

*Updated November 4: Salon.com "The Third Koch Brother?" (VIDEO)

There’s a cancer spreading through Alabama--a cancer that's poisoning our political and judicial process with the ideologies of the Koch Brothers. It advances unchecked through their legislative arm known as the American Legislative Exchange Council (ALEC) and the ubiquitous Koch political heavy Grover Norquist, author/enforcer of the "No New Taxes Pledge" signed by overwhelming amounts of republican and Tea Party candidates.

Alabama has 35 confirmed signers of Norquist's 'I own your political future' oath.

The Koch's, Norquist and ALEC disseminate their ill ideas primarily through the Tea Party, but the GOP frequently acts in conjunction with the metastasizing of this sickness through the powerful political kingmaker and Jack Abramoff associate Norquist.  

The sweep of the Alabama state house and all three branches of Alabama's government by the republicans in 2010 was not a fluke. Maybe the best question to ask is : Was it a Koch induced event?

Let's review on who these forces are that are dominating the US and state political landscapes:
"ALEC and the Kochs often pursue parallel tracks. Just as ALEC “educates” legislators, Koch funding has helped “tutor” hundreds of judges with all-expenses-paid junkets at fancy resorts, where they learn about the “free market” impact of their rulings. But ALEC also operates like an arm of the Koch agenda, circulating bills that make their vision of the world concrete. For a mere $25,000 a year, Koch Industries sits as an “equal” board member with state legislators, influencing bills that serve as a wish list for its financial or ideological interests.

It’s a pittance for the Kochs but far out of the reach of working Americans. Ordinary citizens rely on our elected representatives’ efforts to restore what’s left of the American Dream. But through ALEC, billionaire industrialists are purchasing a version that seems like a real nightmare for most Americans."

The Nation--August 2011 "ALEC Exposed: The Koch Connection"

Here's another glimpse of ALEC's 2011 New Orleans Convention, at least as much as they would allow anyone to see that is:

Democracy as we know it faces a grim prognosis. Alabama's fate of true representative government fares no better with the explosion of these forces in our political system.

ALEC's Alabama Influences

In the early 2000's, state political members of ALEC were low (at least in the public eye) and confined to the verification of the only two confirmed members: State Senator Jabo Waggoner-R and previous Alabama State Representative Bob McKee-R (former ALEC State Chair.) There were probably others in that time frame, like ALEC lifetime member *"the Godfather" State Representative Victor Gaston AL-D 100 and Steve French-R, the former senator from Mt. Brook, but for the most part, ALEC's presence in the state seemed to really explode in the mid to late 2000's.

*(section three--"Victor Gaston to Mike Hubbard: Shape Up"

That's right about the time the republicans, through House Speaker Mike Hubbard and the ALGOP, began to concentrate their efforts in earnest to unseat the state house from 136 years of democratic rule. The birth of the Tea Party in 2004 aided these often clandestine maneuvers by aligning themselves with (and essentially taking over) ALGOP operatives to ensure that Tea Party minded candidates dominated the 2010 state elections.

It was a plan that was years in the making and executed with all the precision of a well-honed (and funded) political machine that had phenomenal payoffs. It also heralded in a quick buyer's remorse--voter dissatisfaction has steadily increased with the newly anointed kings in the state house fast and loose playing with accountability.

Taxpayers are feeling shorted on the new state ethics laws. They don't believe they got what they paid for when former Governor Riley tapped their tills to the tune of an estimated $500,000 for a special session to enact this legislation in his waning days of office.

Ethics and Alabama politics wouldn't recognize each other if both of them were wearing  foot-high name tags. We take our corruption seriously here in Dixie and it's the way things have always been--pay to play, misbehave, violate the public's trust and you'll go far. Governor Riley became the first governor in the history of Alabama to become a federal lobbyist, and his client list includes some of the same interests he passed millions to while in office.

Another story broke in October of 2011, based on a report from the Center For Responsive Politics, that the Poarch Creek Indians (the only Indian gaming in the state) had funneled $550,000 to the state Republican State Leadership Committee (RSLC) for the 2010 state elections. $200,000 of that sum was donated in January of 2010, after the "platinum standard" new ethics laws were passed, supposedly outlawing that kind of political persuasion.

Were these new ethics laws an attempt to conflate republican and Tea Party public personas and enacted solely to further erode democratic power in Alabama? Judging from the after-the-fact movements of the new republican majority, the answer, in true Koch philosophy, seems to be 'yes.'

The republicans wasted no time de-fanging the political clout of the state teacher union (AEA), and ending numerous programs to Alabama's disadvantaged, cutting funding to child advocacy groups, while stumping for special interests wants. They gifted more tax credits to big business, and set about growing government through governor appointed committees galore, adding additional 'friends and donors' to the state payroll.

(And let's not forget that one big trick that House Speaker Hubbard and Senate President Pro Tem Leader Del Marsh tried, in the wake of the Gabrielle Giffords shooting, proposing to disallow citizens in the state house when the legislature was in session that really riled Alabamians. So much so, that Hubbard and Marsh were forced to quickly abandon the idea, but it was fine with them if the people were cut off from access to lawmakers.)

Former State Finance director David Perry echoes the words that the Koch's love to hear:

Perry defended the governor’s choice of appointees to the Commission on Improving State Government, which includes several CEOs and business figures, but no representatives from education or anti-poverty groups.
Some of “these CEOs have done more to help the poor than some of those advocates that have devoted 100 percent of their lives to helping the poor,” he said.

The new ethics laws also made sure that the AEA could no longer draft union fees from its member's paychecks. Republican control in Alabama had a nemesis in the form of former AEA head Paul Hubbert and he had to be neutralized. The republicans went a step further and forced out one of the most powerful men in Alabama politics. Hubbard later revealed he had debilitating health problems that played a large role in his "early retirement."

We think it's compelling to examine two of the players, who went along with that expensive special session, and rewriting the ethics laws, for the purposes of our discussion on ALEC and Koch influence.

Shelby County--Root of All ALEC?

State Senator Cam Ward-R AL-D 14 and the Alabama Policy Institute (involved with ALEC since 1992) both praised the calling of the special session by Bob Riley. Senator Ward is a confirmed ALEC member and the Alabama Policy Institute is a Koch brothers think tank, offering summer fellowships in the name of Charles G. Koch. Something interesting about the Alabama Policy Institute that we also discovered was their ties to the State Policy Network, Donors Trust and an affiliated group Donors Capital, Inc.

Senator Ward and Texas Governor Rick Perry getting acquainted in the Alabama State House 2011

The group that is helping Shelby County, Alabama *pay for their redistricting fight, the  Project on Fair Representation, receives money from Donors Trust. An affiliated group, Donor's Capital Fund, contributes to the Alabama Policy Institute, (IRS 990 filings amounts received by API from DCF: 2008-$315,000 2009-$170,000) which is under the umbrella of the Koch influenced State Policy Network:

*(NYT--"Is Anybody Watching?" paragraphs 5 & 6)

State Policy Network (SPN), which is partially funded by The Claude R. Lambe Foundation. Charles Koch, one of the billionaire brothers who co-own Koch Industries, and his wife and children, along with long-time Koch employee Richard Fink, comprise the board of this foundation

Shelby County is Senator Ward's home district. Shelby County is also home to one of Alabama Power's five coal fired utility plants. Through the Alabama Power Foundation, Inc. 501(c)(3) 2010 IRS filing, we note a donation of $21,387 to the Alabama Policy Institute. What was that for exactly? Only "general operating" is noted as a purpose. (2008 amount from APCO APF, Inc. to API: $27,024.00, 2009--$16,300.00)

Southern Company, the parent company of Alabama Power, counts itself among the ALEC membership according to Sourcewatch.org records "ALEC Corporations." Alabama Power is also the go-to money source for Alabama politicians and lobbyists--they spend millions of dollars in campaigns, influence peddling and are as firmly entrenched in the political and economic structures of the state as kudzu is on the southern landscape.

No matter which way you turn in this tangled labyrinth all roads lead back to a Koch.

Senator Ward is also on the Alabama Senate leadership committee that voted to keep the controversial Senator Scott Beason, sponsor of the Koch DNA infused HB-56, the harshest anti-immigration law in the country, in his position as head of state legislative agenda.  US District Judge Myron Thompson excoriated Beason and his other wire wearing politicos as 'racist and opportunistic' in an October 20th ruling issued in the wake of the Alabama bingo trial earlier this year

The state chair for ALEC lives in Shelby County: Representative Mary Sue McClurkin, who was appointed to that position, following Representative Jim Carns departure for the infamous Jefferson County Commission.

L-R: Charles Koch, Mary Sue McClurkin, David Koch

McClurkin's voting record reflects a true believer of the radical beliefs instilled in her by the brothers Koch and ALEC. She even voted against repealing the food tax on groceries, an unfair tax burden that hits low-income Alabamians the hardest. It's been a topic of scorn for years, adding fodder to the critics decrying of Alabama's regressive tax system which works against the disadvantaged in favor of the advantaged.

When you live in a gated community that's 98% Caucasian, with a median home price of $341,879 dollars, it's not difficult to imagine how you may become a little out of touch with the average working stiff. But it's tragic nonetheless that Ms. McClurkin is so consumed by ideological thinking, that her self-professed strong Christian principles don't allow her a bit more empathy for her fellow man when voting on legislation that has real consequences for a large segment of the population.

Financial Planning--Corporate Alabama Is Covered. Are you?

We're curious about McClurkin's ALEC corporate co-chair, Rosemary Elebash, State Director of the National Federation of Independent Business--what's the relationship between Elebash, Greg Powell and wealth growing? It seems a tad off-putting and odd that a state employee is involved with a financial planning outfit.

Perusing Fi-Plan Partners Greg Powell's "giving back" list we see a few obligatory feel-good entries: Camp Smile-A-Mile, Special Equestrians are among them. It's what's above the fold that's troubling: Birmingham Business Alliance and Business Council of Alabama to name two of them. Both of these groups have strangleholds on federal, state and community purse strings (and politics) and exert far too much influence over local elected leaders for most Alabamians comfort levels. 

Still, it's not unexpected these two, Elebash and Powell, would align themselves together. Alabama's "Big Mule" team always has room for more governor appointed lackeys and lock-step mules to join the state economic swindle development team. Especially when they get to get their picture taken with the governor on the steps of the capital to boot, touting the "Full Employment Act of 2011" which provides "tax credits and tax incentives to NFIB/Alabama members."

Governor Bentley introduces the Full Employment Act of 2011 at a press conference at the State Capitol today.  From L to R, Rosemary Elebash, State NFIB Director; Greg Powell, President and CEO of fi-Plan Partners; Governor Bentley; State Representative Blaine Galliher; State Senator Arthur Orr.

It's a great concept, but with Alabama's Right to Work status who really benefits in this scenario? Governor Bentley claims that "small businesses are the backbone of Alabama's economy." It's almost obscene that giant corporations like Thyssen-Krupp and Alabama Power are among the businesses that qualify as 'small.' Both of these companies have received millions in "corporate welfare" from Alabama, and now they'll get a little more if they throw the folks a $10.00/hr job here and there.

Are we beginning to see a repeating pattern here?

Who else in Alabama administers the bad medicine of the Koch's and ALEC?

According to Sourcewatch, these members are confirmed:

Alabama House of Representatives:
Former Rep. Greg Canfield (R-58; resigned July 11, 2011 to accept an appointment to Governor Robert Bentley's administration)

Rep. Richard Laird (D AL-D-37)    

Rep. Mary Sue McClurkin (R-AL-D 43), State Chairman    

Rep. Jack Williams (R-AL-D 47)  Energy, Environment and Agriculture Task Force

Rep. Greg Wren (R-AL-D 75)    

Rep. Howard Sanderford (R-20) Energy, Environment and Agriculture Task Force
Alabama Senate:

Sen. Steve French-R

*(Thanks to sourcewatch for updating the page on Nov. 2 with additional Alabama legislators!)

We've located the additional members of Victor Gaston and Cam Ward (mentioned previously) and three other members listed on the ALEC Alumni page:
US Senator Richard Shelby-R
US Representative Spencer Bachus-R
AL State Senator Michael "Mike" J. Rodgers-R AL--D 3 

Why should we be afraid of ALEC? 

An article published by The Nation from July 2011 gives us enough clues to make proponents of citizen's rights shudder: 

In the world according to ALEC, competing firms in free markets are the only real source of social efficiency and wealth. Government contributes nothing but security. Outside of this function, it should be demonized, starved or privatized. Any force in civil society, especially labor, that contests the right of business to grab all social surplus for itself, and to treat people like roadkill and the earth like a sewer, should be crushed.

ALEC believes that anything the government does is wrong and everything private enterprise can do is better--so privatize everything--and "starve the beast" of government to brittle bare bones. Anyone who is dependent on the government for anything is out of luck because "it's their own fault they aren't rich" according to Tea Party madman and republican presidential hopeful Herman Cain.

A bespectacled and (maybe begrudging) Bill Armistead (ALGOP Chair) peers out from Cain's tour bus (on Cain's R shoulder) at a recent stop in Homewood, Alabama. Credit: Linda Stalter

ALEC's National Chair also has southern roots and comes from the hugely successful money machine of the Southern Governors Association, who has an ALEC economic report from June of 2011 displayed on their site. Southern governors are skilled loot raisers (i.e. Haley Barbour, Rick Perry, Bob Riley etc.) and the only thing that gets them more excited than money is economic development schemes (read: more money.)

NPR's Fresh Air correspondent Terry Gross interviewed John Nichols of The Nation magazine on July 21, 2011 about ALEC:

"Legislators in ALEC pay a minimal fee to join the group, while corporations pay much more — up to $25,000," Nichols says.
"But once they're in, they sit at the same table," he says. "On the board of ALEC, you have an equal number of legislators and corporate members. ... They then set up task forces to deal with topics like health care, education, election law, and you have an equal number of legislators and corporate and/or interest groups [and] think tanks in each grouping. They have to agree on any model bill or model resolution."

Terry Gross conducted a follow-up interview with ALEC's National Chairman, La. State Representative Noble Ellington, who came to the defense of ALEC and took issue with The Nation's report:

"I work for the taxpaying public, so don't assume that they're not [at the table] because they are. And we represent the public and we are the ones who decide. So the taxpaying public is represented there at the table because I'm there."

Mr. Ellington repeats the idea of a 'mandate to legislate'-something we often hear from our own elected officials, whether they are local community politicians or state leaders. The problem with that thinking is that politicians in Alabama really believe that the voter's gave up their right to complain or speak out once they pulled the lever in the voting booth.

Numerous readers of our site have told us of the great difficulties they experience trying to reach their representatives, especially if it's to complain about their representative's stance on an issue. Emails go unanswered, phone calls are serially ignored, etc. More than one citizen has relayed to us that after taking the time to visit Montgomery, once they are in their representative's office, they have had to compete with television stations blaring Fox News as they sat in front of their elected official trying to communicate with them about a concern.

(On the subject of unanswered emails: Why do Alabama politicians use their personal and business email accounts for citizen correspondence, and refuse to use a state email address, claiming they "don't have one?" Is this their way of avoiding traceable public record electronic communications that can be examined at a later date?)

One especially troubling account that we've heard was from a citizen who took the day off from work, and drove over 200 miles to meet with their representative in their state office. A television was on the entire time. When asked to turn off the television so the conversation could proceed without distraction, the newly elected senator stated: "I have to have the background noise" right before he cut the meeting short to attend a meeting with a lobbyist.

We know the people don't have much of a voice in legislation, and they surely do not have the voice that corporate and business interests enjoy, including their lobbyists, despite what Mr. Ellington claims. We genuinely hope, through this article, that people have a better understanding of what else is adding to that problem.

John Nichols has it exactly right--"the people deserve to know where the ideas for legislation come from"--whether it's a turkey blind Kansas--or an upcoming ALEC Arizona Conference in November 2011--the secrecy employed by ALEC suggests there's more to hide than reveal to the public. Nichols also says that "politicians like to be put in the same space with folks who have the ability to give money." The average citizen doesn't have the buying power of corporate interests, and as a consequence, their 'value' to politicians is relegated to election cycles.

It makes us sick as a collective whole, Alabama. Terribly, horribly and pervasively. And we may never recover if we don't excise these peddlers of Koch cancer before it's too late.

Plain talk isn't always straight talk

Our Governor, the former dermatologist, is quite the fancier of folksy sayings, and he believes, as most politicians do depending on the audience or region they're addressing, it endears him to the masses. 'Kitchen table issues' and plain talk are hard to disagree with, they fit comfortably in most ears and politicians are keenly aware of the power of the right presentation.

Governor Bentley has been schooled on the ability to appear simpler in his public persona--he carefully plays up his 'country doctor' demeanor for full effect. He's especially enamored with one phrase that he repeats, (ad nausea) to disarm his listeners, and play up his physician background giving him cover for snake oil peddler he really is: "Alabama needs a doctor and I am going to be that for the citizens of this state." 

Governor, if only the citizens of Alabama had known what your brand of medicine really was, before we elected you and your team of interns, we may have gotten a second opinion first.

* Note to readers--We realize this is a lot of information and 'heavy sledding.' 

Please bookmark, return and absorb the material. These issues are important!

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