Political Action Committees and Big Money

Political action committees (PACs) are organizations that raise and spend money to influence elections. In Philadelphia, as elsewhere, they range from union-sponsored committees and business groups to super PACs that spend unlimited sums on independent expenditures. This article describes how money flows through these channels and what rules apply, without assessing the motives of any donor.^[1]

1 Types of committees

• Candidate committees: subject to Philadelphia's contribution limits; see Campaign Finance in Philadelphia.
• Party and ward committees: see Democratic City Committee.
• Labor PACs: union committees fund candidates and field programs; see Labor and Politics in Philadelphia and Philadelphia Building and Construction Trades Council.
• Business and industry PACs: including real estate and development interests; see Developers and the Real Estate Lobby and Chamber of Commerce for Greater Philadelphia.
• Super PACs and independent-expenditure groups: may raise unlimited funds but may not coordinate with campaigns.
• Issue and advocacy groups: nonprofits and 501(c)(4) organizations whose donors may be less visible.

2 Rules on independent spending

Following U.S. Supreme Court decisions on independent expenditures, governments cannot cap how much outside groups spend independently of candidates. City law instead requires disclosure and prohibits coordination: spending that is coordinated with a candidate is treated as a contribution subject to the limits. The line between coordination and permissible parallel activity has been contested, as discussed below. State-level and federal-level committees file with the Pennsylvania Department of State or the Federal Election Commission respectively.

3 Examples from recent races

The 2023 Democratic mayoral primary was the most expensive in city history. Democratic candidates and the independent groups backing them raised more than $34.6 million; super PACs accounted for nearly $5 million of that, and four candidates, including eventual winner Cherelle Parker, had a super PAC supporting them. Allan Domb gave more than $11 million of his own money and Jeff Brown $4 million.^[2] In April 2023 the Board of Ethics sued a super PAC backing Brown, alleging coordination to exceed contribution limits; a judge dismissed the suit in September 2023, finding the claim contradicted part of the Board's own regulation, and the Board dropped the case and said it would revise its rules. The PAC denied the allegations.^[3]

4 Transparency and debate

Advocates for stricter rules say large donors and independent groups can overshadow ordinary voters and encourage pay-to-play appearances; see Conflicts of Interest and Pay-to-Play. Opponents say limits on contributions to candidates push money toward less accountable outside groups and that spending is protected speech. Good-government organizations such as the Committee of Seventy publish analyses of spending; see Good Government Groups. Local reporters track filings; see Local News Media in Philadelphia. Progressive groups also operate PACs; see Progressive and Grassroots Politics.

See also: Board of Ethics, Elections in Philadelphia, Running for Office in Philadelphia.

References

1. Philadelphia Board of Ethics, Regulation No. 1 (Campaign Finance); Pennsylvania Department of State, campaign finance information (vote.pa.gov).
2. Philadelphia Inquirer, "Philadelphia mayor race Democratic primary spending 2023," June 5, 2023.
3. Philadelphia Inquirer, "Philadelphia ethics board sued super PAC supporting Jeff Brown," April 10, 2023, and December 11, 2023; Billy Penn, May 4, 2023.