Mailer targets Dole on trade

Majority Action mailer on DoleA mailer criticizes U.S. Sen. Elizabeth Dole's record on trade.

The glossy eight-page mailer from Majority Action, a liberal 527 group, argues that free trade agreements like NAFTA and CAFTA have led to losses in North Carolina's manufacturing sector.

"After 43 years in Washington, the only job Elizabeth Dole hasn't done is protect ours," it says. "She's sending North Carolina jobs overseas instead."

Inside, the mailer argues that "China was a Third World country when Dole went to Washington," but it has grown into a manufacturing giant because of free trade.

It also says that Dole voted to give tax breaks to companies that outsource, though it does not list any specific bills to back up its claim.



Document(s):
majority-dole-trade.pdf

What is the Alliance for North Carolina?

Answer:

An independent group running ads attacking Republican gubernatorial nominee Pat McCrory.

As a so-called "527" tax-exempt organization, the Alliance for North Carolina cannot run political ads for or against candidates, though it can run "issue ads" that are negative about a candidate.

The group was formed in May of 2006 as the Pioneer Majority to "communicate with the public on issues that relate to the election of a candidate for state or local office," according to forms filed with the Internal Revenue Service.

According to the Center for Responsive Politics, the Pioneer Majority received $45,000 from the Democratic Governors Association, another 527 group, in the 2006 elections. It spent the money on research and political consulting in the Oklahoma governor's race.

The group was renamed the Alliance for North Carolina on July 15, 2008. It registered a Web site two days later.

Its Raleigh address — 514 Daniels St. No. 134, Raleigh 27605 — is a Mail Boxes Etc. chain. A second address — 300 M St., Suite 1102, Washington, D.C. 20003 — is the law offices of Sandler, Reiff & Young.

The company listed its contact as Craig Varoga, cofounder of VRS Consulting and a former campaign manager for Gov. Tom Vilsack's presidential campaign.

In mid August, the group released an economic plan that mostly echoed Democratic gubernatorial candidate Beverly Perdue's proposals.

The group ran five ads attacking McCrory:

* BEST WAY: In late July, it began airing a TV ad attacking McCrory's positions on community college, the minimum wage and a Charlotte City Council pay raise and encouraging voters to call McCrory. The group reserved $450,000 in air time for the first ad.

* MOVE: In mid August, the group began airing a second TV ad attacking McCrory on the minimum wage, Charlotte pay raises, perks for city officials and a trip to Paris. It spent $250,000 on the second ad, noting on a state form that the money came from the Service Employees International Union.

* RAISE: In late September, it aired a third ad that attacked McCrory over Charlotte's crime raise and pay raises for city police and firefighters.

* STAND UP: A fourth ad in mid-October linked McCrory to President Bush and criticized Charlotte's taxes.

* RESULT: A fifth ad in late October again linked McCrory to Bush, arguing he supported less regulation of big business.

According to the Arlington-based Campaign Media Analysis Group, the group spent nearly $2.4 million on TV ads attacking McCrory.

Money also came from two other 527 groups. The Democratic Governors Association gave $500,000 in financial backing to the Alliance and the National Education Association gave $250,000.

The group's spokesman is Scott Falmlen, a political consultant with Nexus Strategies in Raleigh.

Brief:
An independent group running ads attacking Republican gubernatorial nominee Pat McCrory.

How big was GOP mayors group?

How many members did a Republican mayors group have?

When he was elected president of Republican Mayors and Local Officials in 2000, Charlotte Mayor Pat McCrory boasted that the advocacy group had 750 members.

But not all appear to have been active.

According to the group's Web site, annual membership dues were just $25. Tax forms filed with the Internal Revenue Service show $2,075 from dues in 2001, $1,525 in 2002 and nothing in 2005.

That would indicate 83 dues-paying members in 2001 and 61 in 2002.

It's worth noting that the dues were voluntary, though the amount is so small that it's hard to see why most wouldn't pay it.

Mayors group sought corporate sponsors

A mayors group led by Pat McCrory sought out corporate sponsors.

The Republican Mayors and Local Officials 527 advocacy group, which the Republican gubernatorial candidate led from 2000 to 2005, advertised for corporate sponsors on its Web site.

"Wanted: Corporate sponsors," read one page

"The RMLO hallmark of promoting local governance and partnering with other elected officials at all levels is also extended to those who share RMLO's ideals, including Corporate Sponsors," McCrory wrote in a welcome message on the group's Web site.

Annual sponsorships cost $5,000.

Based on tax forms filed with the Internal Revenue Service, the following groups contributed in 2003: the American Trucking Association and the International Council of Shopping Centers each gave $5,000 and the Bond Market Association contributed $10,000.

In 2005, the shopping centers council, the American Petroleum Institute and the Edison Electric Institute each gave $5,000 and the National Cable and Telecommunications Association gave $10,000.

Other corporate sponsors listed on the group's Web site in 2003 include: the American Chemistry Association, AT&T, Anheuser-Busch, DaimlerChrysler, Fannie Mae, Goldman Sachs, the National Rifle Association and Waste Management.

That and other pages are no longer available online, as the group appears to have let its Web site registration expire in September of 2003. The address was then briefly used by an outside company to advertise Internet porn (NSFW) and is now defunct.

They can be viewed on the Wayback Machine, an Internet archive. 

What is Republican Mayors and Local Officials?

Answer:

A national advocacy group of Republican elected officials from the city level.

In paperwork submitted to the Internal Revenue Service in 2002, the group described its mission:

To enable Republican officials elected at the municipal level to express, develop and preserve the philosophy of the Republican party in cities and towns across America and to support Republican positions and candidates.

Charlotte Mayor Pat McCrory was elected president of the group in December of 2000. He served in that capacity at least through 2005.

The group claims about 750 members, although tax forms indicate between 61 and 83 dues-paying members in 2001 and 2002.

Aside from $25 annual dues, the group was funded by corporations and PACs that paid $5,000 a year for an annual sponsorship, including the  the Bond Market Association, the National Cable and Telecommunications Association and the International Council of Shopping Centers and the American Petroleum Institute.

In McCrory's first two years in charge of the group, it overspent, reducing its cash reserves from $101,948 to just $5,790. By 2005, it had built them back up to $23,212.

As president of the group in 2004, he praised President George W. Bush at the Republican National Convention in New York City.

That speech was later cited in a TV ad by Democratic gubernatorial candidate Beverly Perdue, who faced McCrory in the 2008 general election.

The group is organized as a 527 political advocacy organization.

Its Employer Identification Number is 52-1976233.

Brief:
A national advocacy group of Republican elected officials from the city level.

McCrory takes aim at unions

Pat McCrory took aim at unions Tuesday.

The Republican gubernatorial candidate made several references to labor unions during a debate on WTVD that left no doubt of a rift between McCrory and a group representing state workers.

The State Employees Association of North Carolina endorsed McCrory's Democratic rival, Lt. Gov. Beverly Perdue, in late July.

The Service Employees International Union, which is affiliated with SEANC, has given hundreds of thousands of dollars to a 527 group that is running ads attacking McCrory's record this year.

McCrory complained about the ads twice during the debate, saying they were taking his remarks out of context and were funded by "national Washington group and labor unions and other groups from throughout the country."

"The 30-second TV ads, which now attack me, by this Washington labor group are saying that I'm opposed to free two-year college tuition, and therefore I'm against students, I'm against kids," he added later.

After Perdue mentioned her endorsements by law enforcement groups during a discussion on the death penalty, McCrory took aim at them as well.

"This has nothing to do with endorsements by quasi-labor unions," he said.

During the Democratic primary, Perdue was endorsed by the N.C. Troopers Association, the N.C. Police Benevolent Association and the N.C. Sheriff Police Alliance.

Claims Dept: Perdue's offshore drilling

Republican gubernatorial candidate Pat McCrory is airing a TV ad touting his support for offshore drilling and attacking Democratic rival Beverly Perdue's position.

What it says: The ad shows McCrory speaking against a white background as images of a recent ad attacking him and high gas prices show nearby. "I'm Pat McCrory, candidate for governor, and I approve this ad. While my opponent's secret allies are running misleading negative ads, I'm seeking solutions to help create jobs and lower gas prices. I support conservation, deep-sea exploration for natural gas and oil. Beverly Perdue is 100 percent opposed and says it won't happen on her watch. I agree. It'll happen on my watch with your support. I'm Pat McCrory and the difference is leadership."

The background: In mid June, national Republicans began calling for a reconsideration of a federal moratorium on offshore drilling in the United States.

On June 18, Democratic gubernatorial candidate Beverly Perdue issued a press release saying she was "100 percent opposed to oil drilling off the coast of North Carolina."

At an appearance before the N.C. Press Association that day, Perdue said that drilling would never occur during her administration.

"On my watch, we'll never solve the gas problem by drilling off the coast of North Carolina," she said. "That's politically popular. If you want somebody who looks at a poll and gets solutions, that's not me."

On Aug. 13 — the same day that McCrory unveiled his ad — Perdue announced that she had shifted positions in a letter previously sent to U.S. Rep. David Price but not made public until then.

She now says she would appoint an independent panel of scientists and engineers to study the issue before making a decision on whether to allow offshore drilling in North Carolina.

Spokesman Tim Crowley said that Perdue has "consistently supported" offshore drilling on federal land already under lease in other states and would support drilling in North Carolina only under certain conditions.

McCrory supports offshore drilling in North Carolina, promoting mass transit, requiring state-owned cars to use alternative fuels and providing tax incentives for homeowners and businesses to be more energy efficient.

A 2007 report from the U.S. Department of Energy found that offshore drilling would not lead to lower gas prices until 2017.

The Alliance for North Carolina, an independent group funded by the Service Employees International Union, the Democratic Governors Association and the National Education Association, has run ads critical of McCrory and released proposals that echo Perdue's plans.

A previous Claims Department by the N&O found the group's first ad overstated its case on two points.

Is the ad accurate? Mostly — at the time. Perdue said she was "100 percent opposed" and drilling would not happen on her watch. Now that she's changed positions, the ad is no longer true, however. The ad does not make a distinction between offshore drilling in North Carolina and other states, but the reality is that Perdue is running for governor here. Calling the Alliance for North Carolina Perdue's "secret allies" is a stretch.

Note: We have made a  change to our judgment of the ad after the Perdue campaign provided more information.

Claims Dept: McCrory's Paris trip

The Alliance for North Carolina, a Democratic group funded by the National Education Association, the Democratic Governors Association and the Service Employees International Union, is airing a TV ad attacking Republican gubernatorial nominee Pat McCrory's record.

What it says: The ad shows blue-collar workers, the Eiffel Tower and piles of cash alongside pictures of McCrory. "Will Pat McCrory’s policies move North Carolina forward? Pat McCrory opposes raising the minimum wage for North Carolina workers, but McCrory supports pay raises for politicians, including himself. And Pat McCrory supports more perks for politicians. He even accepted free travel to Paris for himself and his wife. Call Pat McCrory. Tell him North Carolina needs higher wages and more jobs, not perks for politicians. Go to alliancefornorthcarolina.com and read our economic plan to keep North Carolina on the move." At one point, the text on the screen reads: "Pat McCrory Opposes Raising the State Minimum Wage Without Conditions."

The background: Seeking to boost its trans-Atlantic business, U.S. Airways added nonstop flights from Charlotte Douglas International Airport to Paris in 2000.

Then-Gov. Jim Hunt used the occasion to lead an 11-day trade mission to France and Germany with 31 other state officials, including Charlotte Mayor Pat McCrory and his wife, Ann.

The airline paid for Hunt, a state trooper and the McCrorys to fly first-class to Paris. The mayor and his wife then paid their own way to Italy for a vacation, and the airline flew them back from Rome to Charlotte for free.

At the time, McCrory noted that the return flight from Rome was the same value as the trip over to Paris, so his vacation did not add any additional cost.

The state paid for airfare, lodging and meals for state officials who accompanied Hunt and McCrory. The Carolinas Partnership, an economic development agency in Eastern North Carolina, paid for members of the business community on the trade mission. Two state legislators on the trip paid their own way.

McCrory has made broad statements of opposition to the minimum wage as recently as May, but he has recently said that he would support an increase if coupled with tax breaks for small businesses or tied to increases in the cost of living.

The Charlotte mayor does not typically vote on the city budget, which includes pay raises, but he can veto it. If he does, it takes seven out of 11 votes from the City Council to override his veto.

In 1998, McCrory broke a tie, voting with the City Council's Republicans to overturn a pay raise for city leaders that would have boosted his own salary by several thousand dollars.

This year, the City Council narrowly approved a pay raise for members and the mayor. McCrory did not make any public statements on the raise and did not veto the budget, but his campaign staff said recently that he opposed it.

Is the ad accurate? Mostly. The narration overstates McCrory's current position on the minimum wage, although the text on the screen correctly notes he would add conditions. The ad overstates McCrory's support for pay raises for city officials. McCrory did accept free tickets to Paris.

Alliance spending $250k on second ad

The Alliance for North Carolina will spend $250,000 on its second ad.

Funding for the ad, which attacks Republican gubernatorial candidate Pat McCrory's record, came from the Service Employees International Union.

Falmlen: Alliance raising issues

Scott Falmlen says that 527s are not mysterious.

The former executive director of the N.C. Democratic Party is currently serving as spokesman for the Alliance for North Carolina, a 527 organization running an ad attacking Republican gubernatorial nominee Pat McCrory.

He said the group has provided information on its donors and its spending, runs a Web site and answers questions from the press. 

"We are totally compliant with what the law requires with both the Internal Revenue Service and the State Board of Elections," he told Dome. "Beyond saying that we're compliant, I don't know what else there is to say."

He also took issue with McCrory's assertion that it was "extremely inappropriate" for the ad to list the mayor's number.

"These are public issues and he is an elected official, and that is an appropriate forum for response," he said. "We're not advocating for the election or defeat of any candidate, so it would be inappropriate for us to refer anybody to a campaign office."

The Alliance is spending $450,000 on its first ad and is considering airing more.

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