Thursday, October 30, 2008

Newspaper asks, "Who is Howard Rich?"

A month ago, after Howie Rich appeared in a YouTube interview with South Carolina's Republican Party chairman, the Spartanburg Herald-Journal published an article that asked in its headline, "Who is Howard Rich?" It gave a simple answer to its own question: "He's one of the most popular figures in South Carolina politics. He's also one of the most despised."

What makes him popular and despised at the same time, the Herald said, was "his willingness to spend hundreds of thousands of dollars - in his own name, through a network of LLCs, through like-minded associates and through groups such as South Carolinians for Responsible Government, Conservatives in Action and the S.C. Club for Growth - in an effort to create a Legislature in his image."

It has made Rich "a political superstar," the paper said.

The issues he pushes make him public enemy No. 1 for some members of both parties. Causing the most heartburn is his desire to create a private school system funded by taxpayer dollars. But Rich's fan club includes some of South Carolina's top-ranking Republicans. State Republican Party Chairman Katon Dawson fawned over him in a soft-hitting interview that was broadcast over the Internet. Spartanburg County GOP Chairman Rick Beltram wants to worship at his feet, or at least his hip pocket.

Leading the "Get Rich, Quick" club are top Democrats and public education supporters. Spartanburg County Democratic Party Chairman Glenn Lindman calls him a "disaster waiting to happen." State Rep. Mike Anthony, D-Union, the public information officer for Union County Schools, says Rich is pouring money into candidates who are willing to "sell their souls" to get elected.

The local Republican Party chairman, Rick Beltram, told the paper that when South Carolina elected Mark Sanford its governor, it opened the door to Howie Rich, since both have "strong libertarian leanings."

Rich "sailed under the radar for a time," the paper said. He gave thousands of dollars in contributions to candidates and committees through several companies that he owns in New York. His activity was discovered when someone found the same address attached to many different entities popping up on campaign disclosure forms. He used this system in 2006 to funnel more than $51,000 to the pro-voucher Republican candidate for superintendent of education. She was narrowly defeated.

This spring, the paper said, "he pumped at least $500,000 into primary races across the state - including six in Spartanburg County." In some cases, Rich gave the money directly to candidates, but in other cases he contributed to a group called South Carolinians for Responsible Government and the South Carolina Club for Growth. Those groups then paid for television ads and mail flyers.

No one knows how much money Howie Rich contributed to those front groups because "SCRG is not required to report where its funding comes from or where it spends its money because it is an 'advocacy group'."

Bob Walker, the veteran lawmaker from Landrum who had become chairman of the House Education Committee, was one of Howie Rich's targets.

While [Lee] Bright got the most money locally, Joey Millwood scored the biggest victory. Millwood unseated Rep. Bob Walker, the chairman of the House Education and Public Works Committee. Millwood collected at least $50,000 from Rich and his associates, and also benefited from "advocacy" mailings by SCRG and Conservatives in Action.

Who is Howard Rich?

The local Democratic Party chairman predicted a quid pro quo relationship behind Howie Rich's contributions. "If Rich spent that much money to buy a seat, he says, he's going to expect something in return," he paper said.

"If you're that beholden to that man for that amount of money, you're representing his interests," Lindman said. "And his agenda is in conflict with what's in the best interest of Spartanburg County and the state."

It looks like Lindman is right. Both Bright and Millwood, the two candidates who won with Rich's funding, support Rich's school voucher plan.

Bright said he would support a voucher plan for students in failing schools. Millwood, like Rich, said he favors a tax credit. When asked how low-income students would benefit from a tax credit plan, Millwood said, "I'll have to get back to you." He said there were "a lot of student grant organizations out there," but when asked where they were he said he didn't know and that he'd never looked into it.

The Herald found another troubling pattern in Howie Rich's political activism:

Most of Rich's money showed up in the "dark period" between the date candidates had to file pre-election disclosures and the time voters went to the polls. That prevented voters from knowing who was receiving his funding, and how much they were getting. Rich said he wasn't trying to hide anything.

"I made donations based on when the support would have the most impact," Rich said. "No other reason."

The paper said that school vouchers are only one of Howie Rich's favorite issues. He has also poured money into state ballot initiatives for "spending limits, based on a formula of inflation plus population growth, and private property rights - particularly regulatory takings legislation."

But the Herald didn't name which states have been Rich's targets for political activity. It did say that Rich has accused opponents of his ideas and his contributions deceitful.

While Rich claims deceit on the part of opponents, it's his initiatives that have run into trouble with the law. In 2006 in Montana, for example, a district judge threw out ballot measures to cap state spending, enact a takings law and to make it easier to recall judges because of fraud by out-of-state, paid signature-gatherers, the newspaper The Missoulian reported. The state supreme court upheld the ruling.

The paper also added this warning to the voters of South Carolina who hope this sort of politics is temporary:

In his interview with Dawson, Rich said that he and his groups "weren't going anywhere."

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