The Independent View: NYC Unions Aim To Block Campaign Finance Disclosure Measure

NYC's Central Labor Council is considering suing to block a little known campaign finance disclosure ballot measure passed last November, according to two union officials who attended the CLC’s political director’s meeting, the first in six months.

The ballot measure, folded deep within a lengthy, multi-pronged question created by the New York City Charter Revision Commission, would require unions and other outside interest groups to disclose every dollar spent advocating for or against candidates, from paid canvassers to campaign mailers. The little-noticed measure passed along with a slew of other unrelated proposals with 80 percent of the vote.

Union officials say potential requirements making unions disclose how much money has been spent on internal communications with their members—through union newsletters, for instance—would be particularly onerous. This could force unions to open up their books to the Campaign Finance Board to show that all union electioneering activity was, in fact, being disclosed, according to Michael McGuire, political director for the Mason Tenders.

McGuire argued that the Federal Election Commission has already found that spending on internal communications with union members does not have to be disclosed and is protected by the first amendment. McGuire said that he is sure city unions would win a prospective lawsuit to overturn any provision require disclosure of internal communications. “The New York City Campaign Finance Board is asserting that the FEC is wrong,” McGuire said. “The talk is all somewhat vague for now, but we have said from the outset that we are sure we would win this case.”

CFB spokesperson Eric Friedman said the ballot measure was a victory for transparency. “The Charter amendment approved by the voters in November is meant to provide the public with more information about money spent to influence the outcome of city elections,” Friedman said in an email. “As we prepare to draft rules to implement the new disclosure requirement, we've sought input from those who will be affected. The Board has already held one public hearing in March, and is planning another after issuing a draft of the rules.”

The FEC requires groups to report costs greater than $2,000 related to campaigns “advocating the election or defeat of a clearly identified candidate.” How the Campaign Finance Board defines it's own rules, especially when it comes to communications solely to union members, is likely to determine whether litigation is ultimately filed.

City union officials said there were so many elections last year, they were distracted from fighting the disclosure measure at the ballot box. But along with a few legislative issues—like passing the living wage bill—fighting the measure has now become a major priority for city unions.

The charter revision commission decided to put the measure on the ballot in response to the 2010 Citizens United Supreme Court decision allowing unlimited spending by outside groups and the 2009 New York City elections, which saw heavy increases in outside spending from both unions and the real estate industry.

This is one of the reasons I voted yes to the commission's ballot measures.