Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Hill retirees pledge good intentions Date: Mon, 16 Nov 92 17:03:26 EST Message-ID: \SE A;NATION \SS (WS) \HD Hill retirees pledge good intentions \BY Lee Bowman \CR SCRIPPS HOWARD NEWS SERVICE Many departing House members, eligible to pocket tens of thousands of dollars in surplus campaign contributions when they leave, say they'll give the money away instead. More than a quarter of the 160 House members who have served seven or more terms are leaving office. Under a grandfather clause in the House ethics laws, that group could convert between $10.4 million and $11.5 million in campaign committee funds to personal use, according to a review of recent financial reports. A loophole in federal campaign law allows members elected before 1980 to keep money left in their war chests when they retire, but only if they leave office by the end of this year. Those with the biggest cash balances all say they intend to use the money for charitable or political purposes or that they have made no firm plans for the money. Rep. Don Pease, Ohio Democrat, earlier this month announced that he would be disposing of the last $130,000 or so in his campaign fund through the Community Foundation of Greater Lorain County, which will use the money to set up a trust. Through that mechanism, said 61-year-old Mr. Pease, "my excess campaign funds will have a lasting influence on the community." The eight-term congressman has already given away more than $62,000 to various national and local Democratic committees, as well as $25,000 to Oberlin College, where he will be teaching part time in retirement. Likewise, 10-term Rep. Matthew Rinaldo, New Jersey Republican, who reported the most cash of any departing member, $994,348, intends to give it to "charitable and political causes," said aide John Arnold. "He's set up a committee to review all the solicitations, and they have been pouring in." There is no binding legal requirement that members keep their pledges not to spend the money on themselves. A study by the nonprofit Center for Public Integrity in Washington last year found that many former members have reneged on such promises in the past. "If the past is any guide, some of them who insist they are not going to spend it [for personal purposes] will spend it," said Charles Lewis, executive director for the center. Moreover, many members can continue to legally draw "campaign-related" expenses from the funds, such as legal fees, car rentals, offices and travel long after they leave Congress. A half-dozen of the departing members still have unfinished business with the special counsel investigating the House Bank overdrafts. The only retiring member who had definitely announced plans to keep the money, 14-term Rep. Walter Jones, North Carolina Democrat, died last month at age 80, leaving the $295,601 to his estate. Rep. Morris Udall, Arizona Democrat, 70, who resigned because of failing health last year, turned over $56,617 to his family after leaving office. With the deadline looming on retirement bonuses, some observers had expected a mass voluntary exodus of senior members from the House this year. Instead, just 32 grandfathered members are retiring; another 11 have been defeated in primaries or in the course of seeking another office. Those who planned on retirement generally have much more money on hand than those who had retirement thrust upon them. The retirees reported an average of $302,902 in cash on their most recent financial reports; those who lost elections had an average of $82,207. For instance, Rep. Stephen Solarz, New York Democrat, had amassed more than $1.8 million in his war chest at the end of 1990, the most of anyone leaving so far, but is now down to $431,000 following an unsuccessful primary bid. Rep. Carroll Hubbard, Kentucky Democrat, is down to $236,091 after losing to a primary challenger in May. He says he intends to use the money for political purposes: his own, in a comeback bid in 1994. "I'm keeping the fund intact, because I'm seriously thinking about running for Congress again," he said. A few members have already phased out their campaign operations, however. Rep. Glenn Anderson, California Democrat, wound up 24 years of congressional campaigning by making donations of several thousand dollars to a few charities in his hometown of Long Beach, and reported that of the $20.04 left in his account, he'd pay any outstanding bank charges and fees, and pocket the rest. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM