Mariano Indicted

Yay. A sitting councilman indicted. He should have resigned last week. And he sure as hell needs to resign now:

The major charges included accusations that Mariano took bribes to help one businessman win a large tax break and that he helped another businessman buy a plot of land from the city for $100,000 when its true market value was $400,000.

Mariano, a pugnacious third-term councilman, was expected to surrender to the FBI tomorrow. He has said he intends to remain in office, but the indictment means city taxpayers will no longer pay his legal bills.

The grand jury indictment, announced by U.S. Attorney Patrick L. Meehan during an afternoon press conference, accused Mariano of participating in a conspiracy to deprive Philadelphia taxpayers of his honest services as a councilman.

At this point, every day Mariano stays in office is just an act of selfishness. Resign, and have your day in court. Resign.

Don't hold your breath

Given that Mariano 1) has no other real income and 2) has never had an evident sense of shame, I'd be shocked if he gave up his salary. He's been open that he needs money, badly. Who, exactly, will push him out the door, anyway? Mayor Street? Seems unlikely, given their alliance and friendship.

Does he even have to resign if he's convicted? I think he can continue to serve while behind bars, right?

"I think I should have some credibility...

Councilman,

i have searched thoroughly through this blog. i don't see any recent attacks or bloggers questioning you. please, point me to the blog that attacks you and/or questions you. if none exists, then i think that you should be more secure with your practice to win, maintain and work in office.

Class?

Aren't most of the people convicted professionals (e.g., upper middle class folks, businesspeople). What are the underlying class issues?

Political Reform and Social Class

Ben,

You raise a very difficult issue. Most liberals believe that setting relatively low limits on campaign contributions is the best way to limit the impact of the rich and connected on politics. Most political scientists, however, believe that low limits on spending actually hurt representatives of the working class.

Here is why: Members of the working class don’t make campaign contributions. In fact, very few people—perhaps less than half of one percent—make campaign contributions. So campaign contributors tend to be upper middle class or above. And the majority of those folks are not on the left, at least on economic issues. The only way for liberal candidates to match the expenditures of conservatives is to rely on big contributions from labor unions and some of the very rich (e.g. Charles Stewart Mott the GM heir who bankrolled George McGovern or George Soros) who are liberals.

It was for this reason that the political reforms enacted after the 1972 election, which limited campaign contributions in presidential elections to $1000 were thought by most political scientists to hurt democrats and, especially, liberal democrats. Democrats only began catching up with Republicans in federal politics when they pioneered the use of soft money.

Unfortunately, by the 1990s, the Democratic rush to get big contributions to make up for the Republican advantage in $250 to $5000 contributions lead the party to start taking money from corporate PACs. One consequence is that some Democrats began moving rightward. (There were, of course, other reasons for this phenomenon.)

What is the solution? There is no perfect one and I don’t have time right now give a detailed answer. But I don’t see any solution if we don’t have (1) partial public financing of political campaigns with governments matching very small donations and (2) dramatically reduce costs of campaigns by governments forcing the TV stations to make time available for advertising and by reducing the cost of mailing for political campaigns.

New York City has shown that you can have public financing of political campaigns in a city. What New York has not found a solution for is the independent spending of a very rich candidate. There is a solution: Opponents of self-financed political candidates who reject public funding, as Bloomberg has done, should receive matching funds from the public treasury.

This is why I love this blog.

This is why I love this blog. What starts as an entry about Councilman Mariano’s charges blossoms into a lively debate on campaign finance reform.

Having had to actually raise money for a short-lived campaign a few years back, I have an opinion or two on the subject and thought I’d weigh in. I honestly have very mixed feeling about limiting the amount an individual can give to a candidate. And here’s why:

Marc is absolutely right that campaign contribution limits hurt us liberals. Right-wing candidates who are backed by bankers, brokers and captains of industry find it easy for a $20,000 or $50,000 donation to be “spread out” in $1,000 increments among family members, colleagues, partners and associates. These guys easily get around the limits.

Grassroots liberals, who often do not have these close ties with the corporate community, have to rely on good-hearted progressive individuals like Dr. Bayard Storey, Francis Vallay, the late Ernesta Ballard and others who can be quite generous in their own right but do not come from a corporate network. When you’re not from the world of dollars and cents, It’s just harder to keep up.

Just ask Babette Josephs (an incumbent faced with no limits) who found it difficult to keep up with a challenger with deep roots in the corporate community. That's not to say one person is a better candidate or a better choice--its just different.

Are these limits designed to keep people honest? I happen to think that money corrupts people who are already inclined to be corrupt. I always used to say if Jesus Christ himself moved to Philly and cut me a contribution check for 50 grand, I’d have to tell him the only thing he was buying was a better government -- nothing else is for sale. But the fact of the matter is, some folks would easily sell their souls for a lot less – maybe even ten separate checks of $1000 a piece.

Additionally, the limits on campaign contributions hurt challengers more than incumbents because many incumbents already have members of their political tribe with various PACS. Some even have a network of PACS so that the limits placed on PAC contributions end up being meaningless to them. Regular people – ordinary citizens who want to seek public office—do not have the luxury of such set-ups.

When I ran for office I needed money badly -- for flyers, palm cards, for staff, for computers, signs -- just the basics. With no massive network of corporate big wigs or lawyers ready to empty their wallets for me, a friend of mine who lives in Washington Square West introduced me to two brothers in real estate. Those two men gave me enough in contributions to carry my campaign for weeks. It allowed us time to set up 26 house parties (which brought in, on average, about 3 thousand dollars each). But without those two men helping me in the beginning, I would have never gotten off the ground. Again, when my ballot position was challenged, members of labor helped me secure enough money to keep fighting the challenge all the way to the PA Supreme Court. Without their help, my campaign would have died on the vine many weeks earlier. The point is—had I been forced to raise the $15,000 in legal bills in $1,000 increments, it would have been impossible. My base is middle class folks and young families—not bankers and lawyers –and $1,000 is a ton of money for them. So in that case, these limits would have killed us.

The philosophy behind these limits makes sense. But in practice, I think it’s not all that it’s cracked to be.

I like the idea of public matching funds for campaigns but I suspect a majority of our representatives in local government would tell us we simply couldn’t afford it.

This is an extremely difficult issue but I think everyone’s heart is in the right place on this.

And for the record, if Jesus Christ DID move to Philadelphia, I think he'd live in Bella Vista....or at least the first council district. It sure would make the annual Procession of the Saints more exciting.

if convicted, he is gone

If he is convicted, he will be removed from office; but until then, he can stay.

Given what we have heard, that his buddies are going to plead guilty, etc., it really seems like his conviction is about as sure as you can get.

Mariano's innocent until proven guilty... but not alone.

Mariano must resign if proven guilty and convicted - that's state law.

And while much has been made of whether the recent developments in this case will affect the outcome of local ethics legislation (which I support)- it won't matter. And, to some extent, for good reason - because bribery and extortion are already against the law. In fact, there could be no probe, indictment and conviction of Mariano without an existing law being broken. But we still need a 21st Century Code of Ethics in Philadelphia and an independent board to enforce it. We should pass anti-nepotism, outside employment, and gift ban clauses - and I am the only member of City Council that has publicly supported all three bans(according to a Daily News poll of councilmembers from a while ago).

For the record, I also have the smallest staff budget on Council, I don't drive a City car or accept insurance or gas privileges - and I won a mayoral veto override to enact the very first limit to campaign contributions in local elections - and in my first term.

In fact, now almost halfway through my second term - I HAVEN"T ACCEPTED ONE POLITICAL DIME DURING THIS TERM - zip!

With that being said, I think I should have some credibility with regard to being a reformer.

First, to accept personal gifts or favors above the legal limit - and then not report them - is against existing state ethics law. I don't know if Rick did or didn't do that.

What's curious to me is the stated QUID PRO QUO - not the quid, but the quo -it is not common for a councilperson to be able to draw tax incentive zones or to negotiate the price of a building for sale not directly owned by the city. It might happen, but not without the approval of a quasi-public entity like PIDC that has a separate board that is controlled by the Chamber of Commerce.

Second, why accept the payments privately when OTHER councilmembers have been publicly reported to have paid for credit card bills for personal items and/or sporting club memberships from campaign committees?! Again, I don't know if Rick did or didn't do that.

What I do know is that it is public record that credit card bills for personal items and sporting club memberships have been paid for by city council campaign committees.

Guess WHO?

And do you care? If not, why not?

But it's still not high-level, widespread corruption. Just the selective memory of "reformers".

WWGjr

Credibility :)

Dashrinc -

I was just presenting my "credentials" in a frank discussion on ethics because there's now a large bandwagon of "change-agents" since the probe. So you're right, I'll just continue to be me.

Daniel and Kati -

A Daily News article (4/29/02) on city council campaign committee spending reports :
1) $5725 for credits cards
2) $11,977 to American Express
3) $14,494 on credit cards
4) $5200 to American Express

This article cited four different councilpersons who paid credit card bills with campaign contributions - and all could have been legitimate. In fact, all were legal - because there are no restrictions in the state election code on how the money can be spent. But, of course, it must be reported.

A Philadelphia Inquirer article (2/18/01) on city council campaign committee spending reports :
1) took his family to a Broadway show
2) $1400 membership to the Sporting Club

Again, both were legal - because there are no restrictions in the state election code on how the money can be spent.

In fact, the same article spoke of another city official who is a prospective mayoral candidate who allowed his girlfriend to use $36,000 in campaign funds to buy a house.

I won't snitch on any of them directly and say WHO - but you can do your own research - it's a matter of public record.

My point is - if Mariano had his campaign committee pay for credit card bills and sporting club memberships (and reported it), would that be OK? Maybe not. Would it have been legal? Yes.

That's what gives me pause... hmmm ... the "bandwagon" reformers must have selective memories. Or hidden agendas.

Don't believe the hype!

WWGjr

Good post.

Good post.

I do care

And who are you referring to?

Now that's just not fair...te

Now that's just not fair...tell us who!

Beyond That

Even beyond the inappropriate uses of campaign dollars pointed out above by Councilman Goode, I understood Mariano's comments last week to mean that he was small fish in a big pond.

The real corruption, or the the more expensive corruption, is coming from slicker and bigger folks than him. A lot of people refer to Johnny Doc and his folks as "thugs" which is often nothing more than a class-based ephitet.

Mariano's comments seem to indicate that the real thugs in this city have titles like "CEO" and "Esq." after their names.

That doesn't mean I am defending Mariano (in true Philly style I have little sympathy for people dumb enough to get caught), but let's not all be so dismissive of the class and race issues that underly ethics reform and that many of our city's "reformers" seem blind to (perhaps willfully).

I believe the hype

Why do you think they have selective memories and what do you surmise are their "hidden agendas".

Hmm.

In fact, the same article spoke of another city official who is a prospective mayoral candidate who allowed his girlfriend to use $36,000 in campaign funds to buy a house.

This wouldn't happen to be the same city official whose home (at last check) was slightly outside the city limits (but serviced by a Phila Zip Code) and who was married at the time that he allowed his girlfriend to use said funds (and who's got the worst hairpiece in the city), now would it?

Let's talk about solutions: what things can be accomplished on a citywide level, and what requires statewide legislation? I'm thinking specifically on the loophole that allows campaign contributions in excess of the "limits" so long as you're not yet a declared candidate . . .

OK, Friedman - Believe the Hype!

Guess who once paid for their Sporting Club membership with campaign dollars? Is that corrupt or not?

WWGjr

Thanks for keep our eyes on t

Thanks for keeping our eyes on the ball.

I believe in campaign fianace reform because I want wealthy interests to have less influence over government. Campaign fianace laws can often hurt working-class and grassroots movements. I want to strengthen the power of groups like ACORN and weaken Comcast. How do we do it?

Apples and Oranges

I know who did what, and no, I don't think it's corrupt. And apparently, federal law as it relates to public officials doesn't think so either. The critical factor is the nexus between the gift offered and action taken as a public official.

Hidden Agendas

Who has a hidden agenda and what is it?

With all due respect Councilman.....

Councilman,
You raise some fair points worth discussing, but while you are promoting yourself for your political courage on campaign finance legislation, it would be nice to hear you explain why you haven't publicly criticized by name those in your party (Blackwell, Fattah, Doc, Saidel, etc) who are blatantly ignoring your campaign finance legislation. True political courage lies not only in passing loophole prone legislation, but also in calling out those who then chose to exploit both the spirit and letter of the law. Will you hold them to account, sir?

I am guessing the person we a

I am guessing the person we are talking about is Nutter, correct?

Rotten Fruit could be Apples or Oranges

Just because something is legal doesn't mean that it's not corrupt. That's the purpose for new ethics guidelines - bribery and extortion are already illegal.

The gift offered was campaign money and the action taken was the purchase of a private Sporting Club membership.

Where does that councilperson stand on a ban on gifts and meals?

AGAINST.

And I guess none of his campaign contributors get favorable treatment from the public official?! That's impossible.

Also, for the record, Councilman Cohen was reported to have spent campaign funds (about $800) at that time for legal expenses to fight local public financing of stadiums. I'm sure his contributors approved. :)

WWGjr

Not Just Courage ... Accomplishment on Campaign Finance Reform

Fattah is held to stricter campaign restrictions by federal law - what are you talking about?

Saidel may never be a candidate for mayor and if he is, he is bound by the local law retroactively (like Fattah).

Blackwell has legislation that was introduced last year to repeal my law, but doesn't have nine votes. Her desire to repeal it speaks to its effectiveness.

I don't know that Doc has not abided by the law - where do you get your information?

Simply put, I am unable to compare myself to myself. I've already accomplished more than anyone on this issue - a thorough examination of campaign finance reports will show that I took a lot of big money out of local politics at the right time. All campaign finance legislation has loopholes. Show me one that doesn't.

And...I'm not expending ANY more political capital on the issue.

My job is to create more economic parity for the disadvantaged. My political mandate came from placing first in a majority of wards in my last election - I won 34 - Rizzo won 18 - no one else came close.

You can criticize whoever you like including me on this issue, but what will that accomplish?

Not more than I have already.

WWGjr

interesting contrast

The contrast between Cohen and Nutter's use of campaign contributions is pretty amazing.

After all, Cohen got elected by bashing the stadium. He did what his supporters wanted. I'm sure no politician has ever won office by promising to work out more.

Anyone who tries to claim Cohen's legacy has pretty big shoes to fill.

Response to Councilman Goode

I'll address most of your comments, in order...

"Fattah is held to stricter campaign restrictions by federal law - what are you talking about?"

--- As you well know, Councilman, Fattah sought and received approval from the FEC to begin raising funds in excess of the federal limits, so long as they are kept in a separate account for the mayoral run. In a September 23 Daily News article, Fattah then refused to say whether he would follow your campaign finance law, saying he “didn’t want to prejudge the issue.” With all of the legal talent he assembled to help him file the FEC motion, you’d think that he also would have been given enough advice to help him decide whether or not he will follow local law.

"Saidel may never be a candidate for mayor and if he is, he is bound by the local law retroactively (like Fattah)."

---- I'm very glad to hear this. But who will enforce the law to ensure that candidates like Fattah and Saidel (or whomever else) do not use funds that were raised in excess of the limits? Exactly how will that work and what penalty will be administered for those who violate the law?

"Blackwell has legislation that was introduced last year to repeal my law, but doesn't have nine votes. Her desire to repeal it speaks to its effectiveness."

--- I haven’t read her legislation, but a desire to repeal your legislation is not necessarily an admission that your legislation is effective. There are perfectly valid constitutional and philosophical grounds upon which to challenge your (or any) campaign finance legislation. I don’t happen to agree with them, but they do exist.

"I don't know that Doc has not abided by the law - where do you get your information?"

--- I believe that Doc is taking advantage of one of the loopholes that your legislation was unable to address. Perhaps Doc himself has not raised funds in excess of your limits, but he will certainly be the beneficiary of the spending of third party PACs, like Draft Dougherty 2007, that will accept and spend contributions above the limit. That unfortunate reality in and of itself is a severe blow to your legislation's effectiveness.

"Simply put, I am unable to compare myself to myself. I've already accomplished more than anyone on this issue - a thorough examination of campaign finance reports will show that I took a lot of big money out of local politics at the right time. All campaign finance legislation has loopholes. Show me one that doesn't.
And...I'm not expending ANY more political capital on the issue."

--- That’s really unfortunate to hear. You scored a partial victory in getting legislation passed. Why quit? If you take any cues from the reformers on the federal level (McCain, Feingold, Shays, Meehan) you would know that legislation is only the first step. You need to see the fight through in terms of enforcement, the court challenges, and when appropriate, in closing the loopholes that your original legislation created.

"My job is to create more economic parity for the disadvantaged. My political mandate came from placing first in a majority of wards in my last election - I won 34 - Rizzo won 18 - no one else came close."

-- Since Philadelphia does not use an electoral college system to select its at-large council members, your finishing “first in a majority of the wards” is interesting to note but fairly meaningless. Jim Kenney finished first in the at-large race with 274,053 votes. Kudos to you for finishing third. And, to be fair, isn't your job as an at-large councilman to represent all Philadelphians, not just the disadvantaged?

"You can criticize whoever you like including me on this issue, but what will that accomplish?"

-- Please don’t be so defensive. I’m just trying to have a debate with you. What will it accomplish? I hope you will learn and grow and become a better public servant.

that's an odd amount

Cohen's staff did the lawyering for that case in-house, IIRC (I was part of the opposing counsel). Must have been copying and filing fees.

Learning and Growing :)

You took the long route toward understanding that no one ( Fattah, Saidel, or Doc) has actually violated the local law yet.

There's no debate - the law is what it is until it is changed.

WWGjr

P.S. Winning 34 wards (convincingly!) means that I have the largest base of support.

or at the very least, the bro

or at the very least, the broadest.

Enforcement

Do you have faith that it will be enforced?

Wow

I took the long route in order to educate you a bit. Your lack of foresight (not to mention your lack of a thoughtful response) is pretty shocking.

Enforcement

I am hopeful that it will be enforced by an independent Board of Ethics with charter-mandated authority.

WWGjr

Annonymity

Just because we don't require names-based authentication to post on YPP does not mean that people who hide behind annonymous screen names are ok. If you are going to confront another poster about their perspective on an issue at least have the decency to use a real name and email. Again not a requirement for the site, but it is a requirement to in order to gain any credibility when you speak.

WOW ... you're shocked. Doesn't take much.

You brought no new information to me - I've done what I'm going to do on the issue - and I've moved back to my core agenda.

In terms of foresight, I introduced the bill before "the bug" . I was concerned with the lack of voter participation in the 2003 primary even though I placed second in winning one of five nominations.

You have NO idea what it took to get that veto override on the bill.

Of course, the bill could have been stronger - and it could have failed like others before it.

But what are YOU going to do to change it? Probably nothing. And that doesn't shock me.

WWGjr

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