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Three companies controlled by Dayton-based Reynolds and Reynolds Co. and its Texas chief executive, Robert T. Brockman, made contributions that are among the largest in the country this year to super PACs, with $2 million in company money going to political action committees supporting Republican presidential candidate Mitt Romney or opposing President Barack Obama.
“He would prefer to let the contributions speak for themselves and he has no further comment,” said Tom Schwartz, spokesman for Reynolds and Reynolds. “Both donations were from Reynolds. They were both at $1 million.”
According to reports filed with the Federal Election Commission the contributions came in increments of $333,333 each from CRC Information Systems Inc. and Fairbanks Properties LLC and $333,334 from Waterbury Properties LLC - all of which Schwartz said are controlled by Reynolds and Reynolds. They each list a downtown Dayton post office box shared with the Robert T. Brockman Charitable Foundation.
Together those contributions totaled $1 million each to Restore Our Future, the main pro-Romney super PAC, and American Crossroads, which uses most of its money to oppose Obama, a Democrat.
“It’s not something we’ve done in the past,” said Schwartz, noting that Reynolds and Reynolds has long supported higher education and scholarships through its foundation but has not made political contributions.
In 2006 the then-publicly traded Reynolds and Reynolds went private in a merger with Universal Computer Systems, the Houston company founded by Brockman, 71, who still lives in Texas. Reynolds and Reynolds builds software and provides documents to automotive dealerships, Schwartz said.
Donations largest in state, so far
No other Ohio-based contributors gave amounts approaching the $2 million contributed by the Reynolds and Reynolds companies.
According to records compiled from FEC data by the Center for Responsive Politics, a campaign finance research group:
* Dayton-based non-profit Citizens for a Working America gave $163,000 to Citizens for a Working America PAC, which supports Romney and other Republicans.
* American Financial Group co-chief executives Carl Lindner III and Craig S. Lindner, along with other Lindner family members contributed $100,000 to Restore our Future.
* Jeff Wyler Automotive Family Inc. of Cincinnati gave $50,000 to American Crossroads.
The Reynolds and Reynolds companies’ combined contributions are seventh highest in the nation among organizations contributing to all PACs, non-profits and other special interest groups that spend money to influence elections and policy, according to a list compiled by the Center for Responsive Politics. It is not clear how many other organizations on that list are controlled by a single company but list themselves as separate entities as did the Reynolds and Reynolds-controlled companies.
“If he had just purchased three post office boxes probably people would not have put it all together,” said Larry Sabato, director of the University of Virginia Center for Politics.
In addition to the Reynolds-linked contributions, a $200,000 contribution this year went to the Texas Conservative Fund from Dealer Computer Services Inc., the Houston company Brockman headed as part of his Universal Computer Systems. Schwartz said he is not sure of Dealer Computer Services’ relationship with Reynolds and Reynolds now.
Brockman also has individually supported Republican causes and candidates, contributing at least $9,400 to Romney since 2007 and $36,200 since 1998 to conservative PACS or Republican committees and candidates, according to FEC filings.
“My point is as a private company and as our CEO he may have an interest in supporting a number of different areas throughout society and, in fact, does,” said Schwartz.
More than a quarter million dollars given to groups so far this year
This year more than 300 political action committees, non-profits, political parties and other special interest groups used contributed money to influence elections or policies. Together those groups have spent nearly $226 million, according to the Center for Responsive Politics.
Seventy-five percent of the spending has been by conservative groups and five of the top six spenders are conservative. The only liberal group that has spent more than $10 million is Priorities USA Action, which supports Obama with anti-Romney advertising.
“There are many motivations behind the choice to donate money,” said Mark Caleb Smith, director of Cedarville University’s Center for Political Studies.
Individuals or organizations may like or dislike a certain candidate or policy, or want to use their money to support a particular ideology, he said. But, said Smith, some contributions are designed to buy access.
“Campaign donations - whether to candidates, parties, PACs or super PACs - guarantee access to decision makers,” said Smith. “So, when decisions are made that either impact the person or organization, a donor has a better chance of gaining the ears of members of Congress, the President or staffers.”
The National Education Association and Service Employees International Union ranked first and second amongst organizations making contributions to PACs and other groups, donating $5.6 million and $4.2 million respectively. Texas-based Contran Corp. ranked third with $3 million.
But contributions from organizations were dwarfed by those made this year by a few high-profile millionaires. Casino magnate Sheldon Adelson and his wife, Dr. Miriam O. Adelson, of Las Vegas are at the top of the list, contributing $36 million, with the bulk of it going to to the super PAC supporting Republican Newt Gingrich’s failed bid for the presidency and Restore Our Future. Contran Corp. owner Harold C. Simmons and his wife Annette are second with $15.7 million, and Robert J. Perry, owner of Texas-based Perry Homes, who contributed nearly $12 million. All of them supported conservative super PACs.
The biggest contributors to a liberal super PAC were Jeffrey Katzenberg, chief executive of Dreamworks Animation SKG and Irwin M. Jacobs, the retired chairman of Qualcomm, who each gave $2 million to Priorities USA Action this year.
While large amounts of money has always found a way into campaigns, Sabato said the 2010 Citizens United decision by the U.S. Supreme Court has opened the floodgates to unlimited contributions by unions and corporations.
“Under our system today anybody can give as much as they want. It’s that simple,” said Sabato. “And it’s become the thing to do. In the most expensive neighborhood everybody’s keeping up with the Joneses.”
Political experts said companies are taking a risk when they make political contributions or take politically controversial stands, although privately-held companies and those with a business clientele are safer than public ones or those catering to consumers. Witness the recent controversy over remarks by the chief executive of Chick-fil-A against same-sex marriage, or Target’s 2011 decision to change its contribution policy after donations to a conservative group sparked an outcry from customers and shareholders.
“There is always a risk that a major donor will attract criticism for their donations or the cause they support,” said John C. Green, director of the Ray C. Bliss Institute of Applied Politics. “Such criticisms can effect shareholders and customers. But it can work both ways: it can attract support as well.”
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