http://www.chron.com/cs/CDA/story.hts/election/760350 Nov. 30, 2000, 8:11PM Fund raising for transition raises concern, critics say By CLAY ROBISON Copyright 2000 Houston Chronicle Austin Bureau AUSTIN -- The most expensive election campaign in American history is getting costlier. And George W. Bush, who already has shattered fund-raising records as a presidential candidate, has his hand out again. Denied government funds and office space for presidential transition because of continuing legal challenges over the Nov. 7 election, the Republican Texas governor is turning to private donors to help pave the way for what he believes will be a new Bush administration in Washington. Bush and running mate Dick Cheney, who have claimed victory despite the ongoing courtroom drama, insist that they cannot afford to waste any more time assembling a Cabinet and preparing for a transfer of power before the Jan. 20 inauguration. Investment banker Peter Coneway, a prominent Bush fund-raiser from Houston who is chipping in once again, agreed. Coneway said he believes that Bush has a "commitment and an obligation to the American people to be building his team," based on his certified -- but challenged -- victory for Florida's 25 electoral votes. But critics say the latest fund-raising effort, which winds up a year that has been awash in record political donations, raises new questions about the potential influence of major contributors over the governmental process. Craig McDonald, director of Texans for Public Justice, a watchdog group that keeps tabs on special interest funding of political campaigns, said the transition fund-raising effort opens up new avenues for potential abuse. "This is uncharted territory," McDonald said. "It may be appropriate, but there's always a danger when the campaign raises money from large donors." Bush and Cheney are seeking individual contributions of as much as $5,000 to help lease and staff their own 20,000-square-foot transition office in McLean, Va. Cheney, who heads the transition effort, said the campaign won't accept money from corporations or political action committees. And Cheney has pointed out that Bill Clinton raised private money -- which is allowed by federal law -- to supplement federal funding for his transition effort in 1992. Democratic nominee Al Gore, who is contesting Bush's declared victory in Florida, also has created a foundation to handle potential fund-raising for a Democratic transition, but it hasn't started soliciting donations. The Bush transition money is being raised through the Bush/Cheney Presidential Foundation, created as a nonprofit entity solely to support transition matters. Bush spokesman Ray Sullivan said Bush hopes to raise $3.5 million for the transition effort. The General Services Administration is withholding $5.3 million in federal transition funds pending the resolution of legal challenges over the election's outcome. According to a fund-raising letter from the Bush campaign, individuals are allowed to contribute as much as $5,000 and couples as much as $10,000 to the transition effort without counting against a person's limit on federal political contributions. The federal funds, even if they were immediately available, wouldn't be enough to "achieve the level of transition operations necessary to assure an effective and orderly transition," said a Bush fund-raising letter sent out this week. Bush raised $100 million for his nomination effort, swamping fund-raising efforts by Gore and previous presidential candidates. After their nominating conventions, Bush and Gore each accepted $67.5 million in taxpayer funds as part of the public financing system for presidential elections. By taking public money, they were barred from directly raising outside money for their general election campaigns. But each benefited from record fund-raising by their respective political parties. An estimated $3 billion was spent on the presidential and congressional races this year, including hundreds of millions of dollars in unregulated "soft money" raised by the major political parties and special interest groups. Soft money is supposed to be used for "party building" and promotion of issues, though as a practical matter it usually benefits specific candidates. After the election, Bush turned to supporters again to raise $6 million to pay for legal and staff expenses related to the vote recounts in Florida. "There seem to be strings attached to private money, such as potential appointments. People who have given the maximum amount to a candidate now can give more," McDonald said. But Sullivan, the Bush spokesman, said there wasn't an ethical problem. "These contributions will not impact Governor Bush's decisions as president," Sullivan said.
