Frustration Triggers Election Activism vy Small-Business Owners

Campaign Contribution Analysis by Industry By Kent Hoover The Business Journals Texas Insider Report: WASHINTON D.C.  Re-energized small-business owners  frustrated with Obama administration policies are leading the charge in support of Republicans leading up to Novembers elections. Thats because theyre scared about the policies coming out of the Democratic-controlled Congress & President Barack Obamas administration according to the nations two largest business organizations.   Many fear increased health care & energy costs and are worried about the potential expiration of Bush-era tax cuts said NFIBs Lisa Goeas. All they have everywhere they turn is uncertainty.   If Republicans win control of the House they will owe a debt of gratitude to an energized business community. Business owners are more engaged in this election than in any in recent memory say the U.S. Chamber of Commerce and the National Federation of Independent Business. Business owners fear theyll face higher health care and energy costs and they still dont know whether they will be hit with a tax increase Jan. 1 said Lisa Goeas NFIBs vice president of politics. All they have everywhere they turn is uncertainty she said. Many small business owners have responded to this political threat by deciding to run for office themselves Goeas said. More than 30 of NFIBs own members decided to run for Congress this year she noted. These small business owners are different than the usual crowd of candidates Goeas said because they are so passionate about fixing Washington. I think a ton of them are going to win she said. Bill Miller the chambers national political director said an increasing number of business owners are looking beyond their own members of Congress and the committees that make policies for their industries. Theyre really taking a much more holistic look with regard to the makeup of Congress he said. Campaign Contributions by Industry Sector: Total -Democrats -Republicans

1. Finance/ins./real estate      $201698707     51      48
2. Ideology/single-issue           $138046242     64      35
3. Other                                            $131808077     51      48
4. Lawyers & lobbyists              $120886214      74      24
5. Misc. business                          $114261816       51      48
6. Health care                                $95010245        53      45
7. Communic./electronics       $57784777      65      34
8. Labor                                           $49102697        93        7
9. Energy/natural res.               $45852948        40      58
10. Construction                             $40737797      40      58

What youre seeing is a higher degree of interest and a real equity stake in this years congressional elections by more folks in the business community that youve ever had before he said. As a result the business community is providing more money more independent ads and more get-out-the-vote efforts to Republican candidates than ever before. Both the chamber and NFIB are backing a few Democrats who have voted their way on some key issues but their muscle is overwhelmingly behind Republicans. The chamber which spent nearly $37 million on political activities during the 2008 campaign may double that amount this year. NFIB will spend up to $4 million a smaller political pot than usual just because our members have been hit so hard by the weak economy Goeas said. Some businesses support Democrats Not all small business owners feel threatened by Democrats. Two organizations Small Business Majority and the Main Street Alliance think health care reform will help small businesses in the long run by providing better insurance coverage at a lower cost. They also think financial regulatory reform will protect small businesses from abusive practices and note that it was Democrats not Republicans who passed legislation that will increase the flow of credit to small businesses. Top PAC contributors to candidates: PAC Total  -Democrats -Republicans

1. Honeywell Intl.                              $2968000     54     46
2. AT&T                                                  $2779875     48     52
3. Intl. Bro. of Elec. Wkrs.               $2608873     98     2
4. Natl. Beer Wholes. Assn.            $2495000     56     44
5. Amer. Assn. for Justice              $2357000     97     3
6. American Bankers Assn.             $2133930     38     62
7. Operating Engineers Union       $2104300     89     10
8. Intl. Assn. of Fire Fight.              $1932000     83     16
9. National Assn. of Realtors         $1916798      59     41
10. Am. Fed. St/Cnty/Muni Empl. $1914500     99     0

Source: Center for Responsive Politics based on data released by Federal Elections Commission on Oct. 4

David Borris owner of Hels Kitchen Catering in Northbrook Ill. is worried that many of the gains that small businesses have achieved in this Congress will be jeopardized if Republicans win control of the House. It worries me he said. Borris who is on the national board of Main Street Alliance has donated more than $1600 to Democratic candidates and the Illinois Democratic Party. The Main Street Alliance itself however is not involved in raising money or running ads for Democratic candidates. There is no force comparable to the chamber or even NFIB making the business case for Democratic candidates in this election. Political action committees in some specific industries -- notably computers/Internet and electric utilities -- are giving most of their money to Democrats however. PAC donations however will be a drop in the bucket this year compared with independent expenditures by groups that dont have to report their donors. Some of these groups like the chamber are getting their money from businesses. Labor unions and other interest groups allied with Democrats are countering this business push with their own independent expenditures. Interest groups have run more than $100 million in advertising for congressional and gubernatorial races this election cycle according to the Wesleyan Media Project based at Wesleyan University in Middletown Conn. Among the 30 top interest-group advertisers Republican-leaning organizations have spent more than twice as much as Democratic-leaning organizations. Chamber into microtargeting Ads and political contributions are only part of the political operations of the chamber and NFIB however. Equally important are their direct communications to business owners. The chamber for example has developed a database of 6 million business-sympathetic individuals that it communicates with regularly Miller said. It has spent a lot of time and money on identifying audiences that would be most receptive to its message and mailing them the types of messages that work the best he said. Top interest group spenders on political ads

1. Republican Governors Assoc.  $12366821 Republican
2. Lets Get to Work $6983220 Republican 1604952 1242
3. U.S. Chamber of Commerce $6747946 Republican
4. Calif. Working Fam. for Jerry Brown  $6614872 Democrat
5. Am. Fed. St/Cnty/Muni Empl.  $6078031 Democrat
6. Crossroads Grassroots Policy Strat.  $5908584 Republican
7. Small Business Action Committee  $3740858 Republican
8. Florida First Initiative  $3527443 Republican
9. Back to Basics PAC  $3507733 Democrat
10. Americans for Job Security  $3281984 Republican

Note: Ad spending through Sept. 15 2010 Source: Kantar Media/CMAG with analysis by Wesleyan Media Project

Microtargeting in that regard is an important and unfortunately kind of expensive proposition Miller said. This sophisticated operation is an example of how the chamber has become in Millers words a miniaturized full-blown political party. It runs television and radio ads sends direct-mail pieces puts people on the ground in close races and works with state and local chambers to expand its reach. Labor unions however remain powerful political forces as well especially when it comes to getting their voters to the polls. Those groups have been and will continue to be formidable Miller said.