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The 55th Presidential Inauguration: Costly but Secure

As Ralph Basham, the Secret Service chief told the Associated Press, "We
don’t want to leave anything to chance." "We want to make sure that
everyone who comes to participate in these events can do so in a safe,
secure fashion. Though there have been heightened security measures in the
Capitol and other Washington locations since the Sept. 11, 2001, terrorist
attacks, Basham said that "this is unprecedented when it comes to the
level of security that will be in effect for the inauguration and those
events that are surrounding it." And, in keeping with the theme of the
campaign and conventions, the 55th Presidential Inauguration is shaping up
to be the costliest one yet. Of course, topping the list of donors are
companies from the energy, oil, and defense industry. The nation's top
three defense contractors -- Lockheed Martin, Boeing and Northrop Grumman
-- each chipped in $100,000 for the event, while defense contractor United
Technologies ponied up $250,000! For a full list of donors go to
http://www.inaugural05.com

Two Great Articles below, one from Knight-Ridder, the second from the
Center for Responsive Politics


Big Companies' Inauguration Donations Raise Eyebrows
by Matt Stearns, Published on Monday, January 17, 2005 by Knight-Ridder

WASHINGTON - Large corporations, many of which have enormous regulatory
and policy interests in Washington, are paying for most of President
Bush's inauguration.

Critics call the arrangement too cozy, while others say the lavish
spending is inappropriate in a time of war and as South Asia recovers from
a devastating tsunami.

Bush told reporters Thursday he sees no problem with either how the money
is raised or how it is spent. "There's no taxpayer money involved in
this," he said.

The inaugural celebration is expected to cost up to $40 million, with the
money all raised from private donations. That would tie the record set by
Bush's 2001 inaugural. Bill Clinton's 1993 inaugural cost $33 million, the
previous record.

That amount doesn't include the swearing-in itself, or security for
inaugural events, two costs the government does cover. Officials say those
will be in the millions of dollars, although they don't know how much yet.

But for the associated celebrating, it's become common for private
donations to pay for the ever escalating partying that is the biggest part
of any inauguration.

Of the more than $25 million raised so far by the Presidential Inaugural
Committee, more than two-thirds came from corporate coffers.

As of Jan. 14, 42 corporate contributors chipped in $250,000 each, the
self-imposed maximum donation accepted by the committee. Unlike campaign
contributions, there's no legal limit to how much a donor can give.

Financial services companies and their executives have donated more than
any other industry, with 26 financial services firms donating more than $4
million. The industry could reap a windfall if Congress approves Bush's
plan for private investment accounts as part of Social Security. It also
has an interest in Bush's goal of extending the tax cuts of his first
term.

Energy companies and their executives contributed more than $2.7 million.
They've worked closely with the Bush Administration for years to pass an
industry-friendly energy bill that remains stalled in Congress.

Bush told reporters Thursday that the energy bill is a major goal of his
second term. "I feel good we'll be able to get one out" of Congress this
year, he said.

The companies call the donations good corporate citizenship, saying they
are merely participating in an important rite of democracy and enabling
average Americans to enjoy events such as the inaugural parade and the
inauguration eve fireworks.

"We view this as a patriotic event and a patriotic thing to do," said
Terri McCullough, spokeswoman for Southern Co., an energy firm that gave
$250,000 to the committee.

Many donor companies have contributed to inaugurations in the past, for
both Democrats and Republicans.

Asked whether it was appropriate for companies with legislative and
regulatory concerns to pay for his inauguration, Bush said, "It's exactly
what happened last inauguration, the inauguration before, the inauguration
before."

Bush said if he thought it was inappropriate, "I wouldn't be doing it."

But critics say that for-profit companies don't give money away without a
reason involving self-interest.

"It's part of their government relations and influence program," said
Larry Noble, executive director of the Center for Responsive Politics, a
nonpartisan group that monitors money in politics. "They're doing it to
gain access to the White House and to members of Congress."

The access works on two levels, Noble said. First, there's the immediate
access that donors get from rubbing shoulders with the powers-that-be at
inaugural activities such as luncheons and balls.

Beyond that, it's an investment in establishing relationships down the
road, so that they will be heard when key issues come to the fore.

Major donors receive tickets to elite events such as lunches, receptions
and candlelight dinners at which many Washington movers and shakers are
expected to appear, including Bush and Vice President Cheney.

Ed Lewis, a spokesman for Ford Motor Co., conceded that the big automaker
had a number of interests in Congress and the Bush administration. He said
Ford executives would receive access to many inaugural events because of
the company's $250,000 donation. But he scoffed at the notion that helping
to pay for the inauguration would help buy influence.

"We get our phone calls returned," Lewis said. "That's not a big issue for
us."

Wealthy individuals are also big contributors.

Many are executives in the same key industries as donor companies. For
example, Houston energy billionaire Rich Kinder and his wife contributed
$250,000.

Others have long ties to the Republican Party and to Bush and his family
through business or politics.

St. Louis manufacturing magnate Sam Fox has given millions to the party
and its candidates over the years; at one time, he was the GOP's largest
individual contributor. He and his wife Marilyn gave $100,000 to the
inaugural committee.

Some critics object to massive fund raising for a lavish party while the
country is fighting a war in Iraq and on the heels of the south Asian
tsunami that killed more than 150,000 and left 5 million homeless.

Two Democratic congressmen wrote to Bush last week urging him to tone down
the festivities.

Bush brushed off such suggestions Thursday, saying, "I'm very mindful of
the tsunami victims."

"A lot of the people who are coming here to the inauguration have given"
to tsunami victims, Bush said. "I think it's important to celebrate a
peaceful transfer of power. And the money is all privately raised money.
I'm looking forward to the celebration."

-------------

The Usual Suspects, Inaugural donors and committee members include
familiar faces
(from the Center for Responsive Politics, http://www.capitaleye.org)
By Courtney Mabeus and Steven Weiss

December 22, 2004 | Note: The official inaugural committee Web site has
updated its donor list since this article was written. The accompanying
donor chart has been updated with contributors listed on the inaugural
site as of Dec. 23.

As inaugural planners iron out the details of the many events surrounding
President Bush’s swearing-in Jan. 20, well-connected donors are
contributing six-figure checks to help pay for it all.

The 55th Presidential Inaugural Committee last week revealed that it had
raised close to $4.6 million, nearly all of it in amounts of $100,000 and
$250,000, from a group of donors with deep pockets and strong political
connections. The inaugural committee reportedly hopes to raise up to $50
million.

Although contributions to federal candidates and parties are capped by
law, inaugural donations may be given in unlimited amounts. And though
corporations and labor unions cannot give money directly to federal
candidates or parties, they can help to fund inaugurations.

The official inaugural Web site lists two dozen individuals and
organizations that had contributed to the inaugural committee as of Dec.
16. The donors are no strangers to political giving. As a group, they
represent organizations whose employees and political action committees
have contributed $9.4 million to Republicans in the current election
cycle, which ends Dec. 31. Of that, $1.1 million went to the Bush
reelection campaign.

The biggest campaign contributor on the list is Northrop Grumman, whose
employees and PAC have contributed $1.3 million to the GOP in the current
cycle and nearly $65,000 to the Bush campaign. The giant shipbuilding
company and defense contractor sent $100,000 to the inaugural committee.

Southern Company, one of the biggest donors in the energy sector, gave
$250,000 to the inaugural committee. Its employees and PAC have
contributed just over $1 million to Republicans in the current cycle,
$192,000 of which went to the Bush campaign.

Altria, the parent company of tobacco giant Philip Morris, has contributed
$928,000 in individual and PAC contributions to the GOP this cycle and
nearly $39,000 to the Bush campaign. The company gave $250,000 to the
inaugural committee.

Individuals on the inaugural donor list include Michael Dell, founder of
the Dell computer company; Richard Kinder, the former president of Enron
who now heads natural gas company Kinder Morgan; and oilman T. Boone
Pickens. Each gave $250,000 to the committee.

Three individuals listed as donors also are serving as fundraisers on the
inaugural committee: real estate developer Al Hoffman, CEO of WCI
Communities; Kinder; and Dwight Schar, CEO of the homebuilding and
mortgage company NVR. All three were Bush Pioneers in 2000 for having
raised $100,000 or more for the campaign and Rangers in 2004 for having
raised at least $200,000.

Inaugural "underwriters," who contribute $250,000, will receive tickets to
a number of events over the four-day inaugural celebration, including the
swearing-in ceremony, the inaugural parade and an exclusive luncheon with
Bush and Vice President Cheney. They also will be given tickets to one of
three "candlelight dinners" on Jan. 19 at locations throughout Washington
and one of the nine official inaugural balls, reported the Associated
Press.

"Sponsors," who contribute $100,000, will be admitted to many of the same
events but will receive fewer tickets, according to the AP.


The Inaugural Committee

Leading the inaugural committee are several people who themselves
contributed money to Bush’s first inauguration four years ago.

Of the 14 individuals and couples who sit on the committee, at least seven
contributed $100,000 or more to Bush’s 2001 inauguration. At least 10
committee members were Bush Pioneers in 2000, and 11 of them achieved
Ranger status in 2004.

Several committee members are large campaign contributors themselves. As a
whole, members of the inaugural committee have contributed more than $1.7
million to federal candidates and parties during the 2004 election cycle.
All but $42,500 has gone to Democrats, and more than $97,000 went to the
Bush campaign.

Business partners Mercer Reynolds and William DeWitt, who are serving as
co-chairs of the inaugural committee, are among Bush’s most loyal
supporters. They and their immediate families have contributed a combined
$298,000 to Republicans this cycle, including $22,000 to the Bush
campaign.

Reynolds and DeWitt, who operate a Cincinnati-based investment firm, were
Pioneers in 2000 and Rangers in 2004. They served as co-chairs of Bush’s
first inaugural committee, which raised $40 million. Bush rewarded
Reynolds by nominating him as ambassador to Switzerland, a position he
relinquished in March 2003 to serve as the national finance chairman of
Bush’s reelection campaign. DeWitt served on the President’s Foreign
Intelligence Advisory Board.

California businessman Brad Freeman is also an inaugural committee
co-chair. He and his immediate family have contributed more than $138,000
to Republicans in the current cycle, $6,000 to Bush. Like Reynolds and
DeWitt, Freeman was an inaugural co-chair four years ago, a Pioneer in
2000 and a Ranger in 2004. Freeman was appointed to the President’s
Council on White House Fellowships, and his brother, Russell, a 2000 Bush
Pioneer, was appointed by Bush in 2001 to serve as ambassador to Belize.

Joe Canizaro, a finance co-chair for the inaugural committee, and his
immediate family have given more money to Republicans ($285,000), and to
the Bush campaign ($18,000), during the current cycle than anyone else on
the inaugural committee. Canizaro, CEO of Louisiana-based Columbus
Properties, was one of 22 business leaders whom Bush invited to lunch in
2001 to discuss tax cuts, according to Texans for Public Justice. He was
also a 2000 Bush Pioneer and a Ranger for 2004.


The Arms Trade Resource Center was established in 1993 to engage in public
education and policy advocacy aimed at promoting restraint in the
international arms trade.

http://www.worldpolicy.org/projects/arms

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