The Connecticut Democratic Party asked federal regulators earlier this month for permission to use a stockpile of cash from state contractors to support the reelection of Gov. Dannel Malloy, but rather than wait for a response the party began mailing advertisements using the money.
Since at least 2013, the state Democratic Party has used its federal account to collect donations from state contractors who are banned from giving directly to candidates or the party’s state account. The Federal Elections Commission has not ruled on the party’s request to use the money to influence a state election.
In many states, federal rules are stricter than state rules making it unlikely parties would use federal money for state candidates. However, in Connecticut the federal rules are more permissive in the sense that they don’t prevent state contractors from making contributions.
The ban includes owners and top decision makers at companies that have state contracts or receive state aid.
The most prominent example of this conundrum was Northeast Utilities CEO Thomas May, who solicited donations from his employees to support Malloy’s reelection through the federal account. At the time, it was thought the federal account could not directly help Malloy, but with the latest request to the FEC the link became clearer.
State law does allow parties to indirectly transfer federal account money to the state account by routing it through a national party committee.
The Democratic Party, through its federal account, has raised money from numerous state contractors and recipients of state aid, contributors who can’t give to the same party’s state account. The ban was put in place after Republican ex-Gov. John Rowland resigned and pleaded guilty to a federal corruption charge.
A number of employees at Northeast Utilities donated a year ago after the company’s CEO sent his controversial email. Employees of DOT contractor HAKS Engineers gave the party $45,000 last year and another $10,000 this year. Some of those donations may have been solicited at an event attended by Malloy. Leaders of a joint venture selected by DOT for a $500 million project in Stamford last year gave the party nearly $100,000 in donations since the agency made its decision – and while it negotiated a final agreement.
At least two medical marijuana dispensaries gave to the Democratic Party’s federal account. The Board of Regents chairman appointed by Malloy gave the maximum gift of $10,000 right before his appointment and again this year – as did his wife. One former donor to the Republican Party cynically redirected his support to the Democratic Party’s federal account after Malloy’s election; one of his companies went on to receive $6 million in borrowed state money.