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Florida Man Buys State: Koch Impacts in the Sunshine State

Through their decades in business and politics, Charles and David Koch have honed their methods for rigging the system in their favor, both through their national operations and activities. Their history in Florida is indicative of this overall multifaceted strategy, which includes lobbying and raising funds for politicians, using their advocacy network to sway public policy, and leveraging financial donations to universities to buy professors that promote their worldview. Time and time again, the Koch brothers’ self-interested actions proved to be beneficial to their bottom line at the expense of hardworking Floridians.

One key aspect of the Kochs’ strategy was cultivating relationships with high-profile Florida politicians who were sympathetic to their message. Senator and likely GOP presidential candidate Marco Rubio was the only U.S. Senator to receive a 100 percent score from Koch-group Americans for Prosperity in 2013. In that same year, Sen. Rubio was the keynote speaker at the group’s “Defending the American Dream Summit” in Orlando. When Rubio served as Florida’s House Speaker, AFP Florida Director Adam Guillette said, “Speaker Rubio is a strong ally.” The relationship even goes both ways; Rubio’s former campaign manager served as the national strategic director of Koch’s Latino outreach organization, the LIBRE Initiative, before very recently taking a job with fellow Floridian Jeb Bush.

Similarly, Florida Governor Rick Scott can boast of strong ties with the Koch network. In 2011, Gov. Scott attended a secret invitation-only Koch meeting outside of Vail, Colorado, and in 2013, he spoke at the same summit in Orlando as Sen. Rubio. Americans for Prosperity organized rallies to support Gov. Scott’s agenda during his term and used their intensive field operations in Florida to boost his reelection campaign in 2014.

An American Bridge analysis of Governor Jeb Bush’s emails shows his friendly connections to several high-profile members of the Koch network. The relationship proved fruitful for the Koch brothers, as Bush intervened on their behalf multiple times during his tenure, most notably for a Georgia-Pacific pipeline that polluted the St. Johns River, damaging the ecosystem and the local economy that relied on a healthy river.

Days after taking office in 1999, Bush was receptive to Georgia-Pacific’s request for permission to build pipelines that would carry their pollution further downstream to the St. Johns River. Years later, just as Koch Industries was announcing their $7 billion purchase of Georgia-Pacific in the fall of 2005, Bush was facing scrutiny for his environmental record, which included removing the St. Johns River from the state’s cleanup list. Skip Livingston, a scientist who was known to be friendly to the paper industry, produced a study, “which blamed paper mill pollution for helping increase the St. Johns’ toxic algae blooms.”

While the company and their purchased trade association began to utilize litigation to block the full implementation of EPA regulations that would hurt their bottom line, Bush’s Department of Environmental Protection (DEP) conveniently began to lay groundwork for a backup plan to lower pollution standards in the St. Johns that synchronized perfectly with the ongoing court case. In December 2005, just after Koch had announced their purchase of Georgia-Pacific, Bush’s DEP announced that they were drafting a new rule on pollution standards in the St. Johns that was favorable to Georgia-Pacific.

Just a few weeks later, Bush was invited to attend a secret Koch conference in Palm Springs by Koch lobbyist Matt Schlapp, a former campaign and White House staffer for George W. Bush. The invitation came at the personal request of Charles Koch. Three days after receiving the invitation, Bush’s Department of Environmental Protection issued draft standards for water quality and pollution in the St. Johns that were “less restrictive” than the previous standards. Bush’s DEP spent March and April defending their proposed rule against criticisms that it would allow Georgia-Pacific and other polluters to choose for themselves how much pollution they could dump into rivers. In May, the Bush-appointed Florida Environmental Regulation Commission unanimously approved the standards.

In addition to his intervention on behalf of Georgia-Pacific, Gov. Bush also had longstanding ties to the Koch network through ALEC and State Policy Network affiliates, organizations that were incubated with and continually sustained by Koch money and support. In fact, during his tenure as governor, Bush personally approved the merger of his own education think tank with the James Madison Institute, a member of the State Policy Network. After his second term ended, James Madison Institute released the foundation and Bush once again served as its chairman.

For decades, the Koch brothers have used their advocacy organizations like Americans for Prosperity and its predecessor Citizens for a Sound Economy to promote policies that are harmful to Floridians. For example, AFP supported Rep. Paul Ryan’s budget that proposed voucherizing Medicare, a plan particularly impactful to Florida. A 2012 Kaiser Family Foundation study of Ryan’s budget found that in Florida “at least nine in 10 beneficiaries…would face higher premiums in their current plan.”

The Koch Brothers are so singularly dedicated to their bottom line that AFP even drew the ire of other conservative groups by opposing a proposed ballot initiative with broad support that would open Florida up to the solar industry, a move that would threaten Koch’s oil and gas operations. Conservatives for Energy Freedom co-founder Debby Dooley criticized AFP’s efforts by saying, “You don’t throw your principles out the window to benefit your corporate benefactors.”

In addition to looking out for their own interests, the Koch brothers proved themselves willing to advocate on behalf of corporations that donate to their organizations. In 1998, a federal project from the Army Corps of Engineers to restore the everglades put thousands of acres of land used for growing sugar cane at-risk for reclamation. Just as Citizens for a Sound Economy was taking $700,000 from the sugar industry, the group founded a Florida-based chapter and began advocating against the everglades project, allowing industry representatives to stay conveniently silent and feign support of the popular project.

Another Koch brothers’ strategy is to impose their political philosophy by donating to universities and insisting their financial support “go towards hiring professors, building economic research centers that promote capitalism or supporting research about libertarian politics.” In the last decade or so their donations to universities across the country ballooned from only seven schools in 2004 to 254 in 2014. A Tampa Tribune columnist described the agreement surrounding their giving to Florida State University where “Koch is accorded virtual veto power for its $250,000 per year” as “Too little money for too much input. A classic lose-lose.”

The Koch brothers have used their vast fortune to advance their own self-interest in the Sunshine State. From polluting the environment, to attacking Social Security and Medicare, to undermining public universities, everything they do is about making more money for themselves. Without proper checks and balances on the Koch network, they’ll continue to assert their oversized influence in Florida and across the country.

Shortlink

Georgia-Pacific Corporation

After Jeb Bush came into office, he didn’t waste time in helping to negotiate an agreement with Georgia-Pacific over the company’s pollution into the St. Johns River from their plant in Palatka, Florida. In 1999, days after Jeb Bush took office, GP and other paper mills began pushing for permission to build pipelines that would carry their pollution farther downstream. In 2001, Bush’s Department of Environmental Protection came to an agreement with GP, granting a permit that would allow GP to build a pipeline only if they could not meet water quality standards. Bush actually touted the agreement to constituents in emails in 2002, writing that he was “proud of our agreement with Georgia Pacific,” to one constituent, and telling another that “it is a win, win. the extremists are wrong again.’” In 2003, Bush told a Georgia-Pacific Vice-President that he was “a huge fan of what you are doing in Palatka County,” at the start of proceedings to grant the company an easement on construction of the pipeline. Bush’s remarks came as he presided over a meeting of the state cabinet in which the company was applying for an easement to the same permit he had negotiated and touted in the years before, coming to the company’s defense several times and praising their efforts. Bush’s actions seemed aimed at a successful attempt to block an amendment offered by then Attorney General Charlie Crist to that would have assured that the pollutant load from the Palatka plant would not increase if GP received the easement.

In October of 2005, Bush’s environmental record began to receive more scrutiny, including his efforts to remove many Florida waterways from the state’s cleanup list, including the St. Johns River. Koch Industries, meanwhile, was just weeks away from their November announcement of their $7 billion purchase of Georgia-Pacific. Georgia-Pacific’s new ownership didn’t waste any time. Before they had even fully finalized purchase of the company, Koch lobbyists and lawyers, were, suddenly, everywhere. On December 2, 2005, after more than a year of total disinterest in a water quality standards case brought against the EPA by Florida water activists and environmentalists, Koch Industries began to use GP’s newly purchased resources to fight regulations in court. They, along with Smurfit, another paper company, and the Florida Pulp & Paper Association (which was staffed with then GP and soon to be Koch lobbyists), filed a motion to intervene in the case, saying that “GP… would be substantially, directly, and adversely affected by the relief sought by plaintiffs.” The company and their purchased trade association then began to file several motions and actions designed at blocking the full implementation of EPA regulations that would hurt their bottom line.

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Georgia-Pacific In Florida: Facilities Overview

GP Facilities In Florida Included An Idled Southern Pine Sawmill Plant In Cross City, Florida. According to a state fact sheet from Georgia-Pacific, GP Facilities in Florida include Cross City Southern Pine Sawmill (Idled) producing Dimensional Lumber. [Georgia-Pacific State Fact Sheet, 4/13]

GP Facilities In Florida Included An Idled Softwood Plywood Plant In Hawthorne, Florida. According to a state fact sheet from Georgia-Pacific, GP Facilities in Florida include Hawthorne Softwood Plywood (Idled) producing Plytanium Plywood and Sturd-I-Floor. [Georgia-Pacific State Fact Sheet, 4/13]

GP Facilities In Florida Included An Oriented Strand Board Plant In Hosford, Florida. According to a state fact sheet from Georgia-Pacific, GP Facilities in Florida include Hosford Oriented Strand Board producing Oriented Strand Board. [Georgia-Pacific State Fact Sheet, 4/13]

GP Facilities In Florida Included A Pulp & Paper Mill In Palatka, Florida. According to a state fact sheet from Georgia-Pacific, GP Facilities in Florida include Palatka Pulp & Paper producing Consumer Tissue, Kraft paper and Linerboard. [Georgia-Pacific State Fact Sheet, 4/13]

GP Facilities In Florida Included A Chip Mill In Palatka, Florida. According to a state fact sheet from Georgia-Pacific, GP Facilities in Florida include Palatka Chip Mill producing Chips. [Georgia-Pacific State Fact Sheet, 4/13]

A Timeline Of Years-Long Efforts By Jeb Bush and Florida Republicans to Gut Protections That Would Safeguard the St. John’s River From GP’s Pollution

Background: Economic and Environmental Harm From GP’s Pollution In the St. John’s River

Small Businesses Impacts

Brooks Busey, Owner Of Sadler Point Marina, Warned That Many Individuals’ Livelihoods Depended On A Healthy St. Johns River. According to the Jacksonville Business Journal, “The issue isn’t just an environmental one considering the 4,000 direct and indirect jobs the Palatka plant supports, and the Riverkeeper had made the economic case for cleaning the river through its new campaign, which launched last month. The Cleaner GP campaign, which calls on Gov. Rick Scott to nix the pipeline, features Sadler Point Marina owner Brooks Busey saying his business is hurt when the river suffers. ‘My livelihood depends on a healthy St. Johns River,’ Busey is quoted as saying on the campaign website. Riverkeeper Executive Director Jimmy Orth said an unhealthy river affects marinas and the fishing industry, making the fight more than just environmentalists versus businessmen. ‘Business people want a fair playing field and this is not a fair playing field,’ Orth said. ‘Yes, they provide a lot of jobs, but they should have to meet the same water quality standards as other businesses.’” [Jacksonville Business Journal, 2/11/11]

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GP’s Economic Impacts and Worker Layoffs

Georgia Pacific Shuttered A Plywood Plant In Hawthorne, Laid Off 400 Workers; Plant Remains Closed

Georgia-Pacific Closed A Sawmill In Hawthorne, Florida. According to The Gainesville Sun, “An Austrian lumber company plans to build a $130 million sawmill near Live Oak employing 350 people, a project touted as a shot in the arm to the local economy while also raising concerns about its impact on the timber supply and competing sawmills as well as its cost to taxpayers. […] Bryan Olmert, president of Loncala in High Springs, said the mill will be good for forest landowners and encourage them to start planting trees again after other sawmills closed in the region in recent years, including the Georgia-Pacific plywood mill in Hawthorne.” [Gainesville Sun, 5/24/13]

2011: Georgia-Pacific Closed Its Plywood Plant In Hawthorne, Florida, And Laid Off 400 Workers In A Town Of 1,400 Residents. According to the Tampa Bay Times, “For nearly three decades, this rural community in north central Florida was home to a bustling mill that was the principal employer for its 1,400 residents. Then, in November 2011, the recession-induced collapse of the housing market forced Georgia-Pacific to close its plywood plant. All 400 employees were sent scrambling to find work weeks before the holidays. And the mill that once produced the sawdust-covered staples of the state’s housing market stood idle, cutting off the lifeblood of the local economy. ‘The mill was a boost to the entire town the schools, churches, local businesses,’ said Pastor Joe Williams. ‘All of a sudden, all that disappeared.’ Now, after two years the mill stands shuttered. Many of its employees have found other jobs but at lower wages, and local community leaders, who had hoped to get help from the state, say they are on their own. ‘We’ve tried to sell ourselves to [the state Department of Economic Opportunity],’ said Hawthorne Mayor Matthew Surrency, but the effort has yielded little return. The story of Hawthorne is not one Gov. Rick Scott talks about on his public relations roadshow as the state’s ‘jobs’ governor. It is a tale of the tens of thousands of private sector jobs lost in Florida since Scott took office in January 2011.” [Tampa Bay Times, 12/8/13]

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Flint Hills Resources

Price Gouging Complaints

Hurricane Katrina

Florida Regulators Subpoenaed 19 Oil Companies With State Terminals To Determine If They Were Price Gouging After Hurricane Katrina. According to the St. Petersburg Times, “As statewide complaints about surging gas prices continued to pour in by the hundreds Tuesday, Florida officials expanded a probe into price gouging and state lawmakers called for a cut in gas taxes. […] In the price gouging probe, Florida regulators turned their attention further up the supply chain, issuing subpoenas to 19 oil companies with terminals in the state. ‘While we’ve been looking at service stations, we need to look at the companies that supply the fuel to stations to determine whether price gouging is occurring at that level,’ said Florida Agriculture and Consumer Services Commissioner Charles Bronson, whose office oversees gas station pricing. The subpoenas seek records on what the companies paid for fuel and what they sold it for. Bronson’s office said the information will shed light on whether the businesses were price gouging or merely passing on the increased costs from refineries.” [St. Petersburg Times, 9/7/05]

In Florida, It Was Illegal To Price Gouge On Gasoline During An Emergency. According to the St. Petersburg Times, “Under Florida law, it is illegal to charge an exorbitant mark-up for essential items, such as gasoline, during an emergency. Violators face fines up to $1,000 per violation or up to $25,000 a day.” [St. Petersburg Times, 9/7/05]

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Koch Lobbyists In Florida

Fearington and Smith

The Registered Lobbyists For Koch Companies Public Sector, Koch Industries, Flint Hills, And Georgia-Pacific Corporations In Florida Are Mercer Fearington Jr. And James C. (Clark) Smith. [FloridaLobbyist.gov, 1/30/15]

  • Alongside Myra Carpenter, Charles Hood, And Foyt Tipton Ralston, Fearington And Smith Also Represented Georgia-Pacific Corporation In 2006. [Floridalobbyist.gov, accessed 1/30/15]

Peyton Fearington – Mercer Fearington’s Mother – Worked For Gov. Bush, Exchanged Emails With Bush Occasionally

Peyton Fearington Served As “One Of The Three Deputy Secretaries For The Department Of Business And Professional Regulation.” According to an email from Peyton Fearington to a constituent on September 4, 2001, “Dear Mr. Peace-Governor Bush has asked me to respond to your recent email regarding Stevens Bros. Funeral Home. I am one of the three Deputy Secretaries for the Department of Business and Professional Regulation, and directly work with the Division of Professions. There are several cases with Stevens Funeral Home for operating without a license. The Department is working to resolve these cases and gain compliance with licensure requirements. After these cases are resolved, then it is the function of the Board of Funeral Directors and Embalmers to determine whether a license should be issued. The next board meeting is scheduled for November 6-7, 2001 in Orlando, Florida. If I can be of further assistance please do not hesitate to contact me at (850) 921-7271. Thank you, Peyton C. Fearington, Deputy Secretary” [Peyton Fearington Email to Constituent, 9/4/01]

Gov. Jeb Bush Email To Peyton Fearington: “I Hope You Are Doing Well, Peyton. Long Time, No See.” According to an email from Gov. Jeb Bush to Peyton Fearington, “i hope you are doing well, Peyton. Long time, no see. Can you respond to Gerald Kisner? Jeb” [Gov. Jeb Bush Email to Peyton Fearington, 9/1/01]

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The Kochs’ Political and Advocacy Agenda In Florida

Americans For Prosperity - Florida

2011: Former Citizens for a Sound Economy-FL Director Slade O’Brien Became Florida Director Of Americans For Prosperity. According to the St Petersburg Times Blogs, “Slade O’Brien is the new state director of Americans for Prosperity-Florida, the free-market activism group announced Monday. O’Brien’s previous jobs include president of Florida Strategies Group, executive director of Florida Stop Lawsuit Abuse, and Florida director of Citizens of a Sound Economy.” [St Petersburg Times Blogs, 6/27/11]

AFP’s “Single Largest Field Operation” Was In Florida, Where The Group Had 10 Offices. According to the Associated Press, “In many places, the group [AFP] has more trained and paid operatives than the traditional political parties have. Nowhere is this more obvious than Florida, where the group has 10 offices, its single largest field operation.” [Associated Press, 10/12/14]

AFP’s Organization In Florida Rivaled The Size Of The Florida GOP. According to the New York Times Magazine, “Where does the money go? Americans for Prosperity obviously spends a lot on television, but it also maintains offices in 35 states with 600 paid staff members. The group funds phone banks, big-ticket events and many other details like beer cozies and water bottles. Its biggest chapter is in Florida, where its 50 paid staff members work out of 10 offices and constitute a year-round organization that rivals that of the state Republican Party.” [New York Times Magazine, 10/19/14]

The Koch Network’s Early And Longstanding Support for Marco Rubio

Sen. Marco Rubio Was The Keynote Speaker Of AFP Foundation’s 2013 “Defending The American Dream Summit” In Orlando. According to the Orlando Sentinel, “Republican U.S. Sens. Marco Rubio of Florida, Ted Cruz of Texas and Ron Johnson of Wisconsin are among headline speakers announced for the ‘Defending the American Dream Summit’ conference the conservative action group Americans for Prosperity Foundation plans for Orlando in late August.” [Orlando Sentinel, 7/29/14]

AFP Gave Rubio A “100 Percent Score” On Its Scorecard In 2013. According to the Tampa Bay Times Blog, The Buzz, “Last week, two groups issued vote scorecards that put Rubio squarely in the conservative camp. Americans for Prosperity gave the Florida Republican a 100 percent score on issues it rated.” [Tampa Bay Times’ Buzz, 2/25/13]

AFP-FL State Director Slade O'Brien: “We Are Pleased To Announce Senator Rubio Is The Only US Senator To Receive A Lifetime Rating Of A+.” According to the Tampa Bay Times Blog, The Buzz, “‘The AFP Scorecard is the best way for our activists to keep a close eye on Washington, and confront them when they don't vote responsibly,’ said AFP-FL State Director Slade O'Brien. ‘We are pleased to announce Senator Rubio is the only US Senator to receive a lifetime rating of A+.’” [Tampa Bay Times’ Buzz, 2/25/13]

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The Koch Network’s Support For Rick Scott

AFP President Tim Phillips: Gov. Rick Scott’s Leadership Has Led “To Impressive Job Creation, Better Education And A Balanced Budget, All Without Raising Taxes.” According to the Gainesville Sun, “AFP is welcoming Scott with open arms. ‘Since taking office two years ago, (Scott) has fought hard for the principles of economic freedom,’ AFP Foundation President Tim Phillips said in a statement announcing the governor's appearance. Scott's leadership has led ‘to impressive job creation, better education and a balanced budget, all without raising taxes,’ Phillips said.” [Gainesville Sun, 8/29/13]

AFP-FL State Director Chris Hudson: “Gov. Scott Has Continued To Fulfill The Promises He Made To Floridians When He Was Elected, By Cutting Taxes,” And “Trimming The Fat In State Government.” According to the Gainesville Sun, “Chris Hudson, AFP's state director, said his group applauded the budget based on the tax cuts, budget reserves, efficiencies in state government operations as well as Scott's efforts to continue to reduce overall state debt. ‘Gov. Scott has continued to fulfill the promises he made to Floridians when he was elected, by cutting taxes, trimming the fat in state government and working to push Florida's economy to be the best in the nation,’ Hudson said.” [Gainesville Sun, 6/2/14]

AFP President Tim Phillips On AFP Helping Scott Get Re-Elected: “We're Going To Use That Field Effort, Like We're Already Doing, To Educate Folks On His Record. And It's A Pretty Good One.” According to the Tampa Bay Times Blog, The Buzz, “Gov. Rick Scott is getting some help from Americans for Prosperity, which has begun phone banking and canvassing across Florida. The door-hangers pictured here are an example. ‘We're going to use that field effort, like we're already doing, to educate folks on his record. And it's a pretty good one,’ AFP President Tim Phillips said in an interview near the group's headquarters in Arlington, Va. AFP, which gets funding from the Koch brothers, has 10 field offices across Florida.” [Tampa Bay Times’ Buzz, 6/30/14]

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AFP And The 2012 Republican National Convention

“Through Huddles With Donors, Discreet Meetings With Fellow Operatives And The Occasional Public Event,” AFP And Other Groups “Maintained A Subtle But Pervasive Presence In Tampa” During The RNC. According to the Orlando Sentinel, “His meetings this week are just one example of how operatives of top-tier conservative groups are capitalizing on the convention revelry to quietly lay the groundwork for the final months of the campaign. Barred from direct coordination with political campaigns, super PACs and GOP-aligned nonprofit groups have no official role in the proceedings. But through huddles with donors, discreet meetings with fellow operatives and the occasional public event, the groups have maintained a subtle but pervasive presence in Tampa. On Tuesday, strategists from Crossroads, the U.S. Chamber of Commerce and Americans for Prosperity -- three groups that have employed their abundant war chests to become the center of gravity in this election -- gathered at a hotel blocks from the convention site to share political intelligence.” [Orlando Sentinel, 8/30/12]

AFP, Crossroads, And The US Chamber Of Commerce Met During The Convention “To Share Political Intelligence” And “Quietly Lay The Groundwork For The Final Months” Of The 2012 Presidential Campaign. According to the Orlando Sentinel, “His meetings this week are just one example of how operatives of top-tier conservative groups are capitalizing on the convention revelry to quietly lay the groundwork for the final months of the campaign. Barred from direct coordination with political campaigns, super PACs and GOP-aligned nonprofit groups have no official role in the proceedings. But through huddles with donors, discreet meetings with fellow operatives and the occasional public event, the groups have maintained a subtle but pervasive presence in Tampa. On Tuesday, strategists from Crossroads, the U.S. Chamber of Commerce and Americans for Prosperity -- three groups that have employed their abundant war chests to become the center of gravity in this election -- gathered at a hotel blocks from the convention site to share political intelligence.” [Orlando Sentinel, 8/30/12]

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The Koch Agenda’s Impacts and Potential Harm To Florida Seniors

The Koch-Backed Ryan Budget Would Hurt Florida Seniors

Americans for Prosperity Supported Ryan Budgets that Would Voucherize Medicare

2011

2011: AFP Backed FY 2012 Ryan Budget, Which Replaced Medicare With A Premium Support Plan. According to AFP’s congressional scorecard for the 112th Congress, AFP took a “yes” position the House vote on House Budget Committee Chairman Paul Ryan’s (R-WI) proposed budget resolution covering fiscal years 2012 to 2021 which included a proposal to replace Medicare with a premium support plan. According to the Congressional Research Service, “Under the new system, Medicare would pay a portion of the beneficiaries’ premiums, i.e., provide ‘premium support.’ The payments would be adjusted for age, health status, and income and would be paid directly by the government to the insurance plan selected by the Medicare beneficiary. In addition, plans with healthier enrollees, would be required to help subsidize plans with less healthy enrollees.” The vote was 2011 House vote 277. [AFP Scorecard for the 112th Congress, 2/1/13; CRS Report #R41767, 4/13/11]

  • Wall Street Journal: Ryan Plan “Would Essentially End Medicare.” According to the Wall Street Journal, “Republicans will present this week a 2012 budget proposal that would cut more than $4 trillion from federal spending projected over the next decade and transform the Medicare health program for the elderly, a move that will dramatically reshape the budget debate in Washington. […] The plan would essentially end Medicare, which now pays most of the health-care bills for 48 million elderly and disabled Americans, as a program that directly pays those bills. Mr. Ryan and other conservatives say this is necessary because of the program's soaring costs.” [Wall Street Journal, 4/4/11]
  • Ryan’s Budget Eliminated Traditional Medicare And Created A Medicare Exchange On Which Seniors Could Purchase Private Plans. According to the Congressional Research Service, “Individuals who become eligible (based either on age or disability) for Medicare in 2022 and later years would not be able to enroll in the current Medicare program. Instead, they would be given the option of enrolling in a private insurance plan through a newly established Medicare exchange.” [CRS Report #R41767, 4/13/11]
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Koch Opposition to Solar Energy In Florida

Tea Party Groups Were Put “At Odds” With AFP After The Groups Formed A Coalition With Progressive Organizations In An Effort To Open Florida Up To The Solar Energy Industry. According to a transcript of NPR’s All Things Considered, “Florida is one of several states where the Tea Party has embraced a new cause: solar energy. Tea Party groups are teaming up with progressive organizations to open up the solar energy industry. It's an unusual coalition and puts them at odds in some states with another conservative grassroots organization, the Koch brothers-backed Americans for Prosperity.” [NPR All Things Considered, 2/24/15]

Proposed Ballot Initiative Would “Allow Business Or Property Owners To Produce Up To 2 Megawatts Of Solar Power And Sell That Power Directly To Others, Such As Tenants, Without Having To Go Through A Utility.” According to the Tampa Bay Times, “If the proposed ballot measure passes, solar proponents argue it would open up Florida's solar energy market, which has largely stagnated for years. The measure would allow business or property owners to produce up to 2 megawatts of solar power and sell that power directly to others, such as tenants, without having to go through a utility.” [Tampa Bay Times, 3/7/15]

  • “Only Five States, Including Florida, Ban The Practice” Of Allowing Business Or Property Owners To Sell Solar Power Directly To Others. According to the Tampa Bay Times, “Under state law, only utilities can sell electricity directly to consumers, though solar proponents argue that 36 states allow the practice. Only five states, including Florida, ban the practice.” [Tampa Bay Times, 3/7/15]
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Citizens for a Sound Economy – Florida

CSE Was Created In 1984 By David Koch And Richard Fink. According to the New Yorker, “In 1984, David Koch and Richard Fink created yet another organization, and [President of FreedomWorks Matt] Kibbe joined them. The group, Citizens for a Sound Economy, seemed like a grassroots movement, but according to the Center for Public Integrity it was sponsored principally by the Kochs, who provided $7.9 million between 1986 and 1993.” [New Yorker, 8/30/10]

CSE Was “Principally” Sponsored By The Kochs, Who Gave $7.9 Million To The Group Between 1986 And 1993. According to the New Yorker, “The group, Citizens for a Sound Economy, seemed like a grassroots movement, but according to the Center for Public Integrity it was sponsored principally by the Kochs, who provided $7.9 million between 1986 and 1993.” [New Yorker, 8/30/10]

  • The Koch Brothers Were “Very Controlling” Of CSE. According to the New Yorker, “Within a few years, the group had mobilized fifty paid field workers, in twenty-six states, to rally voters behind the Kochs’ agenda. David and Charles, according to one participant, were ‘very controlling, very top down. You can’t build an organization with them. They run it.’” [New Yorker, 8/30/10]

CSE Worked For Public Policy Changes That Would Result In “Lower Taxes” And “Less Government. According to an archived page of the CSE website, “The members of CSE are fighting hard to restore America's freedoms and the values of our Founding Fathers. We work for public policy change that will result in lower taxes, less government, and more freedom.” [CSE.org via Archive.org, 12/3/03]

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CSE’s Florida Chapter Was Founded 7 Months Before Jeb Bush’s Election; Priorities Were Aligned With Those of Corporate Donors

Miami Herald: “Florida Citizens For A Sound Economy Is A 7 Month Old Chapter Of A National Nonprofit, Nonpartisan Organization That Was Founded In 1984 To Advocate Conservative Causes.” According to the Miami Herald, “Florida Citizens for a Sound Economy is a 7 month old chapter of a national nonprofit, nonpartisan organization that was founded in 1984 to advocate conservative causes.” [Miami Herald, 11/10/98]

CSE’s Ties To Corporate Donors

CSE Fought A Plan By The Army Corps Of Engineers Which Would Have Caused Florida’s “Three Biggest Sugar Enterprises…To Lose Thousands Of Acres Of Cane-Growing Land To Reclamation.” According to the Washington Post, “Derailing a multibillion-dollar federal plan to restore the Florida Everglades is just the kind of cause that suits Citizens for a Sound Economy, a conservative think tank that fights for smaller government. But soon after the group took on the Everglades project in 1998, the Washington-based nonprofit got an incentive that went beyond the purely philosophical. It received $ 700,000 in contributions from Florida's three biggest sugar enterprises, which stand to lose thousands of acres of cane-growing land to reclamation if the Army Corps of Engineers plan goes into effect.” [Washington Post, 1/29/00]

October To December 1998: CSE Took Sugar Industry Contributions Of $280,000 Each From US Sugar Corp And Florida Crystals Corp And $140,000 From The Sugar Cane Growers Cooperative Of Florida. According to the Washington Post, “CSE took in the sugar industry contributions--$ 280,000 each from U.S. Sugar Corp. and Florida Crystals Corp., and $ 140,000 from the Sugar Cane Growers Cooperative of Florida--from October to December 1998. That November, CSE Foundation issued a news release asserting that the Everglades project would cost $ 120 per household in Florida and could result in the loss of 2,879 jobs. The foundation also released a poll concluding that the vast majority of Floridians did not support tax hikes to finance the project.” [Washington Post, 1/29/00]

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CSE’s Agenda

CSE Supported Privatizing Social Security & Medicare

Peter Ferrara Argued For Privatizing Social Security In Miami Herald Op-Ed. According to an opinion by Peter Ferrara in the Miami Herald, “By contrast, for today’s young workers, the maximum annual Social Security tax -- including the employer’s share -- is almost $5,600 and will be near $8,000 by the end of the decade. Recent studies show that for most of these young workers, the benefits they are promised in return for these high tax payments represent a below-market, real rate of return of 1 percent or less. For maximum-income workers and most two-earner couples, the real return will be practically zero, and even negative in many cases. If these workers were allowed to invest an amount equal to their Social Security tax funds in an expanded IRA system, they could expect two, three or more times the benefits promised by Social Security.” [Peter Ferrara - Miami Herald, 8/11/85]

  • Peter Ferrara Was Chairman Of The Independent Retirement Alliance, A Project Of Citizens For A Sound Economy. According to an opinion by Peter Ferrara in the Miami Herald, “Peter J. Ferrara, a Washington attorney, has written numerous books and articles on Social Security and served as a member of the White House Office of Policy Development from 1982 to 1983. He is chairman of the Independent Retirement Alliance, a program of the Washington-based Citizens for a Sound Economy. He wrote this article for The Herald.” [Peter Ferrara - Miami Herald, 8/11/85]

CSE Analyst Michael Becker Supported Privatizing Medicare, Saying That It Was “Undermining The Quality Of Care Senior Citizens Receive.” According to St. Petersburg Times, “A similar plan for Medicare was put forth this year by Michael Becker, an analyst for the Citizens for a Sound Economy Foundation, a conservative research organization based in Washington. Claiming that ‘attempts to limit medical costs by bureaucratic intervention and price-setting are undermining the quality of care senior citizens receive,’ Becker says Americans should be allowed to establish Health Care Savings Accounts for which workers would receive income tax credits.” [St. Petersburg Times, 12/13/87]

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Bush Passed Tort Reform After Support from Koch-Controlled Groups

Citizens For A Sound Economy-Florida Earmarked $460,000 For Tort Reform In 1998, The Year That Jeb Bush Ran for Governor

Washington Post: “Jon L. Shebel, President And Chief Executive Of Associated Industries Of Florida…Credits CSE With Helping Enact The Broad Tort Reform Last Year That Was Business’s Top Priority In The State.” According to the Washington Post, “The Everglades has been just one of CSE's Florida projects. Jon L. Shebel, president and chief executive of Associated Industries of Florida, representing 10,000 businesses, credits CSE with helping enact the broad tort reform last year that was business's top priority in the state.” [Washington Post, 1/29/00]

Shebel: CSE “Made A Difference In Florida” Against “The Trial Lawyers, At Times CSE “Would Take TV, And We Would Take The Radio. They Have Access To Big Dollars That We Don’t Have Access To.” According to the Washington Post, “‘They've made a difference in Florida,’ said [Jon] Shebel. ‘We had a major war going on with the trial lawyers. At times [CSE] would take the TV, and we would take the radio. They have access to big dollars that we don't have access to. . . . It's added a new dimension.’” [Washington Post, 1/29/00]

CSE Documents Revealed $460,000 “Mainly In Corporate Donations” Dedicated To The Florida Tort Reform Project. According to the Washington Post, “According to CSE documents, at least $ 460,000, mainly in corporate donations, was earmarked for the [tort reform] project in 1998. The funds included the Huizenga contributions, $ 25,000 each from Hertz Corp. and DaimlerChrysler AG, and $ 10,000 from Dollar Thrifty Automotive Group.” [Washington Post, 1/29/00]

Shebel: Associated Industries Of Florida’s “Political Department Orchestrated The Whole Thing… We Called CSE And Said Here’s The Plan, Can You Do Something? They Did TV.” According to the Washington Post, “‘Our political department orchestrated the whole thing,’ said Associated Industries' [Jon] Shebel. ‘We called CSE and said here's the plan, can you do something? They did TV. We did radio, direct mail and all the analytical work.’” [Washington Post, 1/29/00]

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Koch-Sponsored American Tort Reform Association Backed Multiple Tort Reform Projects

Koch Industries Sponsored American Tort Reform Association As Early As 2004

Koch Industries Was A Member Of The American Tort Reform Association. According to the American Tort Reform Association Website, Koch Industries was a listed member. [ATRA.org, accessed 3/18/15]

2006: Koch Industries Was A Member Of The American Tort Reform Association. According to the American Tort Reform Association Website via archive.org, Koch Industries was a listed member. [ATRA.org via archive.org, 11/29/06]

2004: Koch Industries Was A Member Of The American Tort Reform Association. According to the American Tort Reform Association Website via archive.org, Koch Industries was a listed member. [ATRA.org via archive.org, 8/5/04]

2006: ATRA’s “Links To Other Civil Justice Reform Websites” Linked To Koch-Connected Sites, Including The Federalist Society, The Washington Legal Foundation, Citizens For A Sound Economy, And The Rand Institute. According to the American Tort Reform Association website, “Links to Other Civil Justice Reform Websites Other Organizations With Information on Civil Justice Reform Contact these organizations for more information about liability reforms. […] Citizens for a Sound Economy Conservative Grassroots Organization of Citizen Activists Fighting for Tort Reform. […] The Federalist Society Conservative/Libertarian Organization of Attorneys Concerned About the Legal System. The Rand Institute for Civil Justice An Affiliated Think Tank of the RAND Corporation. […] Washington Legal Foundation Defending and Promoting Free Enterprise and Individual Rights Through The Legal System.” [ATRA.org via archive.org, 10/9/04]

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Bush-Backed and Koch-Tied James Madison Institute Supported Bush’s Efforts On Tort Reform, Provided Academic Support for Goals of ATRA and FJRI

James Madison Institute Director Of Public Policy Robert Sanchez: “What Worries Business Leaders Is That Despite The Efforts” Of Jeb Bush, “Action Has Stalled On Key Issues Related To Tort Reform.” According to an opinion by Directory of Public Policy Robert Sanchez for the James Madison Institute, “In contrast, all four of Florida’s announced gubernatorial candidates have spent much of their adult lives in government service. Business leaders say the problem isn’t that any of them would be expected to be hostile to business; it’s just that they might lack [Jeb] Bush’s degree of understanding and empathy. […] What worries business leaders is that despite the efforts of a business-friendly governor, action has stalled on key issues related to tort reform.” [Robert Sanchez – James Madison Institute, 2006]

Sanchez: “South Florida Has Edged Higher On The List Of The Nation’s ‘Judicial Hellholes’ Where A Costly Combination Of Predatory Trial Lawyers, Runaway Juries, And Obliging Judges Often Results In Huge Verdicts Against Businesses.” According to an opinion by Directory of Public Policy Robert Sanchez for the James Madison Institute, “What worries business leaders is that despite the efforts of a business-friendly governor, action has stalled on key issues related to tort reform. Meanwhile, South Florida has edged higher on the list of the nation’s ‘judicial hellholes,’ where a costly combination of predatory trial lawyers, runaway juries, and obliging judges often results in huge verdicts against businesses and professional practitioners.” [Robert Sanchez – James Madison Institute, 2006]

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Jeb Bush’s Additional Longstanding Ties to the Koch Network Through ALEC and State Policy Network Affiliaites

Koch Control And Funding Of ALEC And The State Policy Network

Kochs Had Decades-Long Connections With ALEC, Charles Koch Provided “Support” for ALEC; Koch Foundation Kept ALEC Afloat With $400,000 Loan

David Koch Acknowledged That His Family “Exerts Tight Ideological Control” Over The Organizations They Fund. "Many of the organizations funded by the Kochs employ specialists who write position papers that are subsequently quoted by politicians and pundits. David Koch has acknowledged that the family exerts tight ideological control. 'If we’re going to give a lot of money, we’ll make darn sure they spend it in a way that goes along with our intent,' he told Doherty. 'And if they make a wrong turn and start doing things we don’t agree with, we withdraw funding.'” [The New Yorker, 8/30/10]

Charles Koch Said That He Provided “Support” for ALEC, Pacific Research Institute, Heartland Institute, Reason, Competitive Enterprise Institute, Among Others. “I provided the seed money for the Institute for Justice, and support for a wide range of other market-oriented organizations including National Center for Policy Analysis (NCPA), American Legislative Exchange Council (ALEC), National Foundation for Teaching Entrepreneurship (NFTE), Pacific Research Institute, Acton Institute for the Study of Religion and Liberty, Fraser Institute, Reason Magazine, Competitive Enterprise Institute (CEI), and Heartland Institute.” [Creating A Science of Liberty, 1/11/1997]

One Of ALEC’s “Long-Term Liabilities” In 1998 Included A $400,000 Loan From The Koch Foundation. According to ALEC’s 1998 Business Plan, “Entering 1998, ALEC's unaudited balance sheet is currently estimated to reflect $1,727,890 in current assets, including cash of $1,300,000, and $1,266,357 in current liabilities, including accounts payable of $600,000, state scholarships of $368,546, a line of credit for $150,000, and the current portion of certain equipment lease obligations totaling $72,000 . The long-term liabilities total $700,000 and include $440,000 to the Koch Foundation, $70,000 to the Tax Education Support Organization, deferred rent liability of $92,000, and the non-current portion of certain equipment lease obligations, totaling $72,000 .” [ALEC, 11/24/97]

Center for Public Integrity: “The Koch Brothers Have Decades-Long Connections With ALEC,” Gave Brothers Award In 1994.  According to The Center for Public Integrity:  “The Koch brothers have decades-long connections with ALEC, which gave the brothers the Adam Smith Free Enterprise Award in 1994.”  [The Center for Public Integrity, 1/31/2013]

ALEC Launched The Madison Group In 1986, Which Was Renamed to The State Policy Network In 1992

State Policy Network “Originated In 1986 As The Madison Group” Before Changing Name In 1992. According to State Policy Network’s website, “State Policy Network originated in 1986 as the Madison Group, an informal confederation of the state think tanks and their supporters named after the Madison Hotel in Washington, DC, where they first met. In 1992, SPN was established as an independent 501(c)(3) educational organization providing services to its members - the state-focused, free market think tanks and their national think tank partners. At that time, the goal was to encourage cooperation and collaboration among the fledgling state think tank movement, maintaining a basic schedule of meetings and providing advisory services as needed during its first five years of operations. The state policy research community rapidly grew and matured during the 1990s, SPN's Board of Directors realized the need for a stronger organization that would provide additional services. After extensive discussions, the existing Board took a bold and historic step in September 1998, dissolving itself and appointing a transitional Board to fulfill the broader role envisioned for the organization.” [SPN.org, Viewed 1/30/14]

The State Policy Network Was Previously Known As The Madison Group, Was Launched In 1986 By ALEC And Housed In The Chicago-Based Heartland Institute. According to the National Committee for Responsible Philanthropy: “The think tanks are loosely affiliated through the Madison Group, launched by the American Legislative Exchange Council or ALEC (see story, pf 20) and housed in the Chicago-based Heartland Institute. Founded in 1986, the Madison Group acts as a communication link among its 79members, which include not only state think tanks, but also conservative legal foundations and national groups like ALEC, Heritage Foundation and the National Rifle Association.” [National Committee for Responsible Philanthropy, Special Report: Burgeoning Conservative Think Tanks, Spring 1991]

Multiple Members of The Madison Group Were Koch-Founded Or Koch-Controlled Organizations

Multiple Members of The Madison Group Were Koch-Founded Or Koch-Controlled Organizations, Including Citizens for a Sound Economy, Institute for Humane Studies, Reason Foundation, Pacific Research Institute, Heartland Institute, And The Competitive Enterprise Institute. [National Committee for Responsible Philanthropy, Special Report: Burgeoning Conservative Think Tanks, Spring 1991]

The James Madison Institute Was A Member of The Madison Group As of At Least 1991. [National Committee for Responsible Philanthropy, Special Report: Burgeoning Conservative Think Tanks, Spring 1991]

ALEc and SPN Are “Sister Organizations” That Coordinate Extensively Behind Closed Doors Despite Claims of Independence

The Guardian: State Policy Network Is “Sister Organization” of ALEC. According to The Guardian: “One of its former executives was Ted Cruz, now US senator for Texas, who today is the keynote speaker at the national conference in Washington of SPN's sister organisation, the American Legislative Exchange Council (Alec).” [Guardian, 12/5/13]

SPN President Insists Think Tanks Are “Fiercely Independent” But Evidence Indicates That They Coordinate Extensively. According to the New Yorker, “According to a new investigative report by the Center for Media and Democracy, a liberal watchdog group, however, the think tanks are less free actors than a coordinated collection of corporate front groups—branch stores, so to speak—funded and steered by cash from undisclosed conservative and corporate players. Although the think tanks have largely operated under the radar, the cumulative enterprise is impressively large, according to the report. In 2011, the network funneled seventy-nine million dollars into promoting conservative policies at the state level. Tracie Sharp, the president of the S.P.N., promptly dismissed the report as ‘baseless allegations.’ She told Politico, ‘There is no governing organization dictating what free market think tanks research or how they educate the public about good public policy.’ But notes provided to The New Yorker on what was said during the S.P.N.’s recent twenty-first-annual meeting raise doubts about Sharp’s insistence that each of the think tanks is, as she told me, ‘fiercely independent.’ The notes show that, behind closed doors, meeting with some eight hundred people from the affiliated state think tanks, Sharp compared the organization’s model to that of the giant global chain IKEA.” [New Yorker, 11/15/13]

State Policy Network Members’ Combined 2011 Fundraising Was Over $83 Million And Included “Major” Koch Money. According to the Huffington Post, “In 2011, the State Policy Network and its affiliates reported raising a combined $83.2 million, according to the Center for Media and Democracy. While donors to the groups are not required to be disclosed, a 2010 document opened a window on some of them. They included the Donors Trust and the Donors Capital Fund, both secretive right-wing funding instruments, as well as Altria, AT&T, Comcast, GlaxoSmithKline, Kraft Foods, Microsoft, Reynolds American and Time Warner Cable. Multiple documents reviewed in the report also show that the Koch brothers, known for their extensive funding of conservative activist causes, are major funders of the State Policy Network and its affiliates through their linked foundations and Koch Industries. Many other wealthy conservatives have likewise pumped money into the network, including the DeVos family of Amway, the Coors brewing family, the Waltons of Walmart, and wealthy businessman (and North Carolina budget director) Art Pope.” [Huffington Post, 11/14/13]

State Policy Network Is An ALEC Member And Its Think Tanks Submit Model Legislation For Approval At ALEC. According to the Huffington Post, “The State Policy Network and many of its most active affiliates are members of ALEC, the secretive organization that brings corporations, conservative activists and state legislators together to write model state legislation. The network has also routinely sponsored ALEC's annual meetings. […] The think tanks in the State Policy Network also write model legislation and introduce it at private ALEC meetings to be vetted and approved for broader dissemination to statehouses, according to the [Center for Media and Democracy] report.” [Huffington Post, 11/14/13]

The James Madison Institute’s Long Ties to The Madison Group and State Policy Network

Orlando Weekly’s Edward Ericson: “The Madison Institute Is Not A Non-Partisan, Non-Political Idea Mill, But A Sophisticated Mouthpiece For Five Of The State’s Largest Businesses.” According to an opinion by Edward Ericson Jr. for the Orlando Weekly, “But a look at the Madison Institute's funding sources, matched with the ideas promulgated in its research papers, and finally the bills proffered and laws passed by the Legislature, reveal a compelling pattern. In short, the Madison Institute is not a non-partisan, non-political idea mill, but a sophisticated mouthpiece for five of the state's largest businesses, including Florida's largest land owner. The institute is also part of a national network of right-wing public policy centers pushing legislation in every state. None of which should be particularly shocking, but for this: It's illegal.” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

Ericson: “The Institute Is Also Part Of A National Network Of Right-Wing Public Policy Centers Pushing Legislation In Every State.” According to an opinion by Edward Ericson Jr. for the Orlando Weekly, “But a look at the Madison Institute's funding sources, matched with the ideas promulgated in its research papers, and finally the bills proffered and laws passed by the Legislature, reveal a compelling pattern. In short, the Madison Institute is not a non-partisan, non-political idea mill, but a sophisticated mouthpiece for five of the state's largest businesses, including Florida's largest land owner. The institute is also part of a national network of right-wing public policy centers pushing legislation in every state. None of which should be particularly shocking, but for this: It's illegal.” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

The State Policy Network Was Founded By Ed Fuelner, The Founding Director Of The Heritage Foundation, In 1984 As “The Madison Group.” According to an opinion by Edward Ericson Jr. in the Orlando Weekly, “In 1984, Ed Fuelner, founding director of the Heritage Foundation, the Washington-based granddaddy of right-wing think tanks, decided that his group's anti-federal ideology needed a companion force to shape lawmaking in the states as federal programs were cut and responsibilities ‘devolved’ to the state level. He envisioned a national network of mini-Heritages that would carry the gospel of ‘free market’ and conservative reforms to state policymakers who, with smaller and less worldly research staffs -- and no countervailing ideas from the left (or even the center) -- would more likely adopt Heritage ideas wholesale. It worked. By 1990, 74 state-level ‘think tanks’ had set up shop in 29 states, including 55 as part of a network called ‘The Madison Group.’” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

Ericson: A Member Of The State Policy Network “By Law ‘Does Not Attempt To Aid Or Hinder The Passage Of Any Legislation.’” According to an opinion by Edward Ericson Jr. in the Orlando Weekly, “‘We simply will not have power on the national level until we declare war on state legislatures,’ said Don Eberly, president of the Harrisburg, Pa.-based Commonwealth Foundation for Public Policy Alternatives, in an address to the Heritage Foundation in 1990. The Commonwealth Foundation is a member of the Madison Group (now called The State Policy Network, with 54 members), and, like other members, by law ‘does not attempt to aid or hinder the passage of any legislation.’” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

Ericson: Members Of The James Madison Institute’s Board Had “Parallel Interests In Such Timeless Principles In Reduced Taxes On The Rich, Privatization Of Government Services And Weaker Land Regulation.” According to an opinion by Edward Ericson Jr. for the Orlando Weekly, “Even while funding the institute, some donors lend executives to its board of directors. In 1995 that board included Hoyt Robinson Barnett, vice president of Publix Supermarkets; the late A.D. Davis, of the Winn-Dixie chain; and Jacob C. Belin, the former chairman and still a director of St. Joe. As representatives of some of Florida's most powerful businesses, these men have parallel interests in such timeless principles as reduced taxes on the rich, privatization of government services and weaker land regulation.” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

  • Ericson: “As If By Some ‘Mystical Process,’ The Madison Institute’s Advice Pushes Primarily For Those Things.” According to an opinion by Edward Ericson Jr. in the Orlando Weekly, “As if by some ‘mystical process,’ the Madison Institute's advice pushes primarily for those things. But instead of Jacob Belin telling legislators what he wants, Randall G. Holcombe does it for him. Holcombe is chairman of the Madison Institute's Research Advisory Council and an economics professor at Florida State University. He is an ‘expert’ whose opinion on matters like taxation, presumed to be the result of pure scholarly inquiry, carries more weight than that of a mere rich guy. In effect, the think tanks allow some of Florida's, and America's, wealthiest special interests to cloak their policies in the garb of scientific reason, common sense and populism. And they get a tax write-off for doing it.” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

Ericson: Think Tanks Like JMI “Allow Some Of Florida’s… Wealthiest Special Interests To Cloak Their Policies In The Garb Of Scientific Reason, Common Sense And Populism. And They Get A Tax Write-Off For Doing It.” According to an opinion by Edward Ericson Jr. in the Orlando Weekly, “As if by some ‘mystical process,’ the Madison Institute's advice pushes primarily for those things. But instead of Jacob Belin telling legislators what he wants, Randall G. Holcombe does it for him. Holcombe is chairman of the Madison Institute's Research Advisory Council and an economics professor at Florida State University. He is an ‘expert’ whose opinion on matters like taxation, presumed to be the result of pure scholarly inquiry, carries more weight than that of a mere rich guy. In effect, the think tanks allow some of Florida's, and America's, wealthiest special interests to cloak their policies in the garb of scientific reason, common sense and populism. And they get a tax write-off for doing it.” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

Ericson: “The Institute Has Taken The Lead In Putting Several Issues Before The Legislature.” According to an opinion by Edward Ericson Jr. in the Orlando Weekly, “Although not every Madison Institute position paper is draft legislation serving the interests of Big Land, the institute has taken the lead in putting several issues before the Legislature.” [Edward Ericson Jr. – Orlando Weekly, 4/27/98]

Jeb Bush’s Longstanding Ties to the Koch-Backed James Madison Institute

Bush Served On Board of James Madison Institute From 1990-1993, Until His First Run for Governor

Gov. Jeb Bush Was A Member Of The JMI Board Of Directors From 1990-1993. According to JMI’s 2013 Annual Report, The Honorable Jeb Bush, Miami served on the JMI Board of Directors from 1990 to 1993. [JMI Annual Report, 4/12/13]

JMI Noted That 3 People Had Been Elected To Florida Leadership After Serving On JMI’s Board, Including Jeb Bush, Tom Feeney, And Don Gaetz. According to JMI’s 2013 Annual Report, “Jeb Bush, Tom Feeney, and Don Gaetz: From JMI’s Board to Leadership Roles[…] Principled leadership doesn’t happen by accident. It is a lifetime commitment. That can certainly be said of many of the leaders who have served on The James Madison Institute’s board of directors over the past twenty-five years.” [JMI Annual Report, 4/12/13]

JMI: “While Most Of JMI’s Board Members Have No Inclination To Go Into Elected Office, A Few Have. But Before They Became Known To Most Floridians, They Took An Active Role In The Governance Of The Institute.” According to JMI’s 2013 Annual Report, “While most of JMI’s board members have no inclination to go into elected office, a few have. But before they became known to most Floridians, they took an active role in the governance of the Institute.” [JMI Annual Report, 4/12/13]

Bush Joined JMI’s Board When He Was 37 And “At The Time Of His Departure,” His Father Had Recently Lost His Re-Election Bid “But A New Star In The Bush Family Was On The Rise.” According to JMI’s 2013 Annual Report, “In 1990, at the age of 37, Jeb Bush joined JMI’s board of directors, a post he would serve in until 1993. At the time of his departure from JMI’s board, his father, President George H.W. Bush, had recently lost a re-election bid, but a new star in the Bush family was on the rise.” [JMI Annual Report, 4/12/13]

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The James Madison Institute Has Very Deep Ties to the Koch Network

Citizens for a Sound Economy And James Madison Institute Shared a Board Member In L. Charles Hilton

Citizens for a Sound Economy Board Member L. Charles Hilton Was Also A Board Member of James Madison Institute. [Citizens for a Sound Economy, 11/15/03]

Koch-Affiliated Entities Donated Over $1.4 Million Directly to James Madison Institute

The Charles G. Koch Charitable Foundation Donated $108,479 To The James Madison Institute Between 2007 And 2012. According to tax documents from the Charles G. Koch Charitable Foundation, the Koch Foundation made 6 contributions totaling $108,479 to the James Madison Institute from 2007 to 2012. [Koch Foundation Tax Documents, accessed 2/27/15]

DonorsTrust And Donors Capital Fund Donated $1,273,242 To The James Madison Institute Between 2005 And 2012. According to tax documents from DonorsTrust and Donors Capital Fund, the two organizations made 27 contributions totaling $1,273,242 from 2005 to 2012. [Donors Trust and Donors Capital Fund Tax Documents, accessed 2/27/15]

The Cato Institute Donated $100,000 To The James Madison Institute In 2006. According to tax documents from the Cato Institute from 01/01/2006 to 03/31/2006, Cato awarded $100,000 to the James Madison Institute “to help fund like-minded 501(c)(3) orgs.” [Cato Institute Tax Documents, 3/31/06]

The James Madison Institute Is Listed As A Partner Organization For The Charles Koch Institute’s “Liberty@Work” Program. According to the Charles Koch Institute, the James Madison Institute is a Liberty@Work Partner Organization. [Charles Koch Institute, accessed 3/2/15]

The James Madison Institute Is A Member Of The State Policy Network. According to the State Policy Network’s Member Directory, the James Madison Institute is an SPN Member. [SPN.org, accessed 2/27/15]

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Charles Koch Institute’s University-Giving Background

Center For Public Integrity’s Dave Levinthal: “When The Kochs Spend Money On Universities, Or Even High Schools, They Do It To Advance The Long-Term Objectives Of The Koch Political Network.” According to KCUR, “But, Dave Levinthal, at the Center for Public Integrity isn’t so sure. He’s studied Koch funding for years and says that when the Kochs spend money on universities, or even high schools, they do it to advance the long-term objectives of the Koch political network. ‘At every level that they can operate in, for all intents and purposes they are making investments that will build that next generation of Libertarian economic thinkers, and actors, business people and politicians,’ says Levinthal.” [KCUR.org, 12/17/14]

Koch Giving To Universities Rose From Seven Schools In 2004 To 254 Universities In 2014. According to Forbes, “Brothers Charles and David, who are each worth $42.7 billion and are tied at No. 4 on the Forbes 400 list of America’s Richest, have poured nearly $50 million into 254 universities nationwide since 2005, according to an interactive database recently published by Greenpeace. A decade ago, the same database reports, the Kochs gave to only seven schools.” [Forbes, 11/4/14]

Charles Koch Foundation Program Officer: “When We Support A School’s Initiative, It Is To Expand Opportunity And Increase The Diversity Of Ideas Available On Campus.” According to Inside Higher Ed, “Groups affiliated with the Koch brothers foundations have repeatedly denied that financial support of colleges infringes on academic freedom and did so when asked for a comment on Monday's campaign. ‘Academic freedom and the free exchange of ideas are cornerstones of our philanthropy,’ said John Hardin, a program officer with the Charles Koch Foundation, in an email. ‘When we support a school’s initiative, it is to expand opportunity and increase the diversity of ideas available on campus.’” [Inside Higher Ed, 11/4/14]

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Koch Attempts to Influence Florida State University

Koch Rejected Nearly 60% of Faculty Suggestions During First Round of Hiring

St. Petersburg Times: “During The First Round Of Hiring In 2009, Koch Rejected Nearly 60 Percent Of The Faculty’s Suggestions.” According to St. Petersburg Times, “David W. Rasmussen, dean of the College of Social Sciences, defended the deal, initiated by an FSU graduate working for Koch. During the first round of hiring in 2009, Koch rejected nearly 60 percent of the faculty’s suggestions but ultimately agreed on two candidates. Although the deal was signed in 2008 with little public controversy, the issue revived last week when two FSU professors - one retired, one active - criticized the contract in the Tallahassee Democrat as an affront to academic freedom.” [St. Petersburg Times, 5/10/11]

Tampa Tribune Columnist Joe O’Neill: “Whereas Most Donors… Are Limited In Influence, Koch Is Accorded Virtual Veto Power For Its $250,000 Per Year. Too Little Money For Too Much Input. A Classic Lose-Lose.” According to an opinion by columnist Joe O’Neill in The Tampa Tribune, “Speaking of FSU’s call, the Koch deal candidly smacks of a sell-out. Whereas most donors, no matter how prestigious and how appreciated and how generous, are limited in influence, Koch is accorded virtual veto power for its $250,000 per year. Too little money for too much input. A classic lose-lose.” [Joe O’Neill - The Tampa Tribune, 5/18/11]

Author Of University Inc. Jennifer Washburn Called The Koch Deal With FSU “Truly Shocking” And Said It Was “An Egregious Example Of A Public University Being Willing To Sell Itself For Next To Nothing.” According to St. Petersburg Times, “Jennifer Washburn, who has reviewed dozens of contracts between universities and donors, called the Koch agreement with FSU ‘truly shocking.’ Said Washburn, author of University Inc., a book on industry’s ties to academia: ‘This is an egregious example of a public university being willing to sell itself for next to nothing.’” [St. Petersburg Times, 5/10/11]

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David Koch & Palm Beach

Residents of Palm Beach

David Koch Is The Richest Full Or Part-Time Resident of Palm Beach, Florida. According to the Palm Beach Daily News, “Of the more than 1,000 names on the list are more than two dozen full- and part-time residents of Palm Beach and Manalapan. David Koch, executive vice president of Koch Industries, is the richest on the island, worth $17.5 billion, according to Forbes. Koch ranks as the 24th wealthiest person on the planet, along with three others: Sergey Brin and Larry Page of Google fame, and his older brother Charles Koch, who doesn't have a place here. William Koch, David's twin and fellow Palm Beacher, also is on the list, but is reported as having a net worth of ‘only’ $3 billion. He is ranked at No. 316, along with 26 others, including Hollywood types Steven Spielberg and George Lucas. Besides the Koch brothers, there are 23 other Palm Beachers who are worth at least a billion.” [Palm Beach Daily News via LexisNexis, 3/12/10]

David Koch Potentially Helped Pay To Build Public Bathrooms To Keep The Town From Providing Accessible Parking

Prior To The Construction Of The Bathrooms On Midtown Beach, The Town Of Palm Beach Was Required To Provide 25 Public Parking Spaces Within A Quarter Mile Of The Beach. According to the Palm Beach Daily News, “The addition of public restrooms would reclassify Midtown Beach as ‘primary’ instead of ‘secondary’ under state guidelines. That would enable the town to count toward the public parking requirement a surplus of public parking that is in the Midtown area. Because the state has given the town financial aid for beach improvements, it currently requires that 25 parking spaces be made available to the public within a quarter-mile of the ‘secondary’ Clarke Avenue access to the beach.” [Palm Beach Daily News, 5/14/11]

David Koch Lived On South Ocean Boulevard “Near Where Beach Parking Is Now Designated On Clarke And Barton Avenues.” According to the Palm Beach Daily News, “[James] Green represents the Lauders and Kochs, both of whom live on South Ocean Boulevard near where beach parking is now designated on Clarke and Barton avenues.” [Palm Beach Daily News, 3/9/11]

  • David Koch Lived On South Ocean Boulevard And Hired Attorney James Green To Represent Him. According to the Palm Beach Daily News, “Leonard Lauder of Barton Avenue and David Koch of South Ocean Boulevard have hired West Palm Beach attorney James Green who said he’ll discuss a waiver with state Department of Environmental Protection officials at a meeting next week.” [Palm Beach Daily News, 4/12/11]
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David Koch Received A Tax Exemption To Expand His Mansion

Palm Beach Officials Rewrote Tax Exemptions Governing Landmarked Buildings So That They “Apply Only To Renovations And Not To House Expansions Or Improvements.” According to the Palm Beach Post, “Town officials will write criteria so that tax exemptions for restoring landmarked buildings apply only to renovations and not to house expansions or improvements.” [Palm Beach Post, 2/1/02]

Palm Beach Councilman Allen Wyett Said The Exemptions Were “Rich Man’s Welfare.” According to the Palm Beach Post, “‘It's rich man's welfare,’ Councilman Allen Wyett said. ‘The rest of us taxpayers are subsidizing millionaires' welfare.’” [Palm Beach Post, 2/1/02]

Palm Beach Was Set To Lose As Much As $104,000 In 2003 In Property Tax Because “The Increased Value Of Landmarked Property Resulting From Restoration Is Exempt For 10 Years.” According to the Palm beach Post, “The town will lose as much as $104,000 next year in property tax because the increased value of landmarked property resulting from restoration is exempt for 10 years. That exempt value will total $25.5 million next year.” [Palm Beach Post, 2/1/02]

Palm Beach County Lost About $126,180 Less In Tax Revenue As Well. According to the Palm Beach Post, “Palm Beach County will receive about $126,180 less in taxes as well. The reduction does not apply to school or any other taxes.” [Palm Beach Post, 1/9/02]

Wyett Said That The Koch Tax Break Was As Much As $48,000. According to the Palm Beach Post, “‘Voters had in mind preserving the average home, not mega-mansions. Granting a $48,000 tax break is not what was envisioned by voters,’ Wyett said of Koch's estimated tax reduction.” [Palm Beach Post, 1/9/02]

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