An Analysis of Walmart & Walton Family Political Spending 2000-2012 C ONTENTS Introduc on ......................................................................................................................................... 1 Walmart and the Walton family spend millions to influence the democra c process, dispropor onately suppor ng conserva ve poli cians and causes.................................................... 3 The Walton family, while dispropor onately suppor ng Republican candidates, has not limited themselves to moderates within the GOP ........................................................................................... 5 Case study: Steve Womack (R, AR-03) gets tens of thousands from Walmart and the Waltons in one month ................................................................................................................................................... 6 Ac ons speak louder than words......................................................................................................... 8 Walmart forces costly special elec ons, perver ng the democra c process and reinforcing its reputa on as a drain on local economies ......................................................................................... 15 Case study: The Waltons’ pet cause, undermining public educa on ............................................... 16 T HIS REPORT WAS PRODUCED BY M AKING C HANGE AT W ALMART . F OR MORE INFORMATION , VISIT WWW .C HANGE W ALMART . ORG I NTRODUCTION Walmart has gone to great lengths in recent years to burnish its reputa on as a posi ve, environmentallyfriendly contributor to communi es across the country and around the world. But for even longer, the company has been increasing its presence both in Washington, DC, and in local poli cs na onwide. The sides it takes and the poli cians it contributes to are more telling than any press release or PR stunt. Just as the total amount of money in poli cs increases with each passing presiden al elec on cycle,1 Walmart and the Walton family have drama cally increased their spending compared with a decade or more ago. Through corporate poli cal ac on commi4ee spending, contribu ons by execu ves and family members associated with the company, direct spending by the corpora on on state-level poli cs where permi4ed, and likely many more undisclosed channels, Walmart is a major player seeking to advance an extreme par san agenda, typically in ways counter to average Americans’ interests. Walmart’s political action committee Like many companies, Walmart has a poli cal ac on commi4ee—Wal-Mart Stores Inc. PAC for Responsible Government—that solicits money from employees and then spends it to advance the company’s poli cal objec ves. There was a me when company founder and family patriarch Sam Walton said that Walmart had no place in poli cs, but those days are clearly over.2 The Walmart PAC has gone from spending virtually nothing in federal elec ons in the early nine es to topping $2 million in three of the last five federal elec on cycles.3 Addi onally, many states permit direct corporate spending on elec ons, and Walmart engages in this as well.4 The Walton family and political spending At the same me, the Walton family, whose members own over half of Walmart common stock and occupy three seats on the company’s board, use their vast fortune to influence the poli cal process at all levels. Heirs to the founders of Walmart, the Waltons are the richest family in America, with over $115 billion.5 In many ways, the Walton family is the public face of the company founded by Sam Walton and his brother Bud. Their wealth is inextricably linked to Walmart’s success, since it comes almost exclusively from their holdings in the company and their ac ons—poli cal or otherwise—are o?en seen as reflec ng on the company itself. The Waltons are able to wield their fortune in ways ordinary Americans cannot, influencing our democracy and contribu ng to a poli cal system where the strength of voters’ voices is rela ve to the size of their wallets, not the number of ballots cast.6 During the 2012 elec on cycle, members of the Walton family spent over $1.3 million in federal elec ons, favoring conserva ve candidates and causes by a landslide.7 They spent hundreds of thousands more at the state and local levels, forcing their values—and vision of corporate-style educa on reform in par cular—on communi es where they do not even reside.8 1. h4p://www.opensecrets.org/bigpicture/ 2. h4p://www.pbs.org/wgbh/pages/frontline/shows/walmart/secrets/lobby.html 3. Analysis of data from the Center for Responsive Poli cs: h4p://www.opensecrets.org/pacs/lookup2.php? strID=C00093054&cycle=2012 4. h4p://www.followthemoney.org/database/topcontributor.phtml?u=2772&y=All&incy=1&ince=1&incs=1&incf=1 5. h4p://www.forbes.com/billionaires/ 6. The following Waltons are included in this analysis: Ben Burdi4, Whitney Kroenke Burdi4, Elizabeth Laurie Dubbert, Patrick Bode Dubbert, Ann Kroenke, Josh Kroenke, Stanley Kroenke, Bill Laurie, Nancy Laurie, Melani Lowman-Walton, Carrie Penner, Greg Penner, Joseph Thomas ProieJ, Annie ProieJ, Alice Walton, Benjamin Sharpe Walton, Carolyn Walton (through 2000), Christy Walton, Helen Walton, James M. Walton, Jim C. Walton, John Walton, Lucy Walton, Lukas Walton, Lynne Walton, Rob Walton, Sam Walton, Samuel R. Walton, Steuart Walton, Thomas Walton, Tillie Walton. 7. Analysis of Data from Center for Responsive Poli cs: opensecrets.org 8. h4p://walmart1percent.org/educa on/ 1 Walmart Lobbyists On top of direct contribu ons to elected officials and candidates, Walmart also employs and contracts with an army of lobbyists who are charged with advancing the company’s interests in Washington, DC. The company’s spending in the capital increases with each passing year, and its scores of lobbyists advance Walmart’s interests on a surprising breadth of issues at dozens of federal agencies. In 2012, Walmart spent $6,130,000 on federal lobbying. The company employed or contracted with 81 lobbyists, the vast majority of whom have made their way through the “revolving door” between Capitol Hill and lobbying firms.9 The company’s top lobbying issues were taxes, labor, homeland security, trade, consumer product safety, and the food industry.10 While federal law requires that Walmart disclose the issues it lobbies on and what it spends, unfortunately, Walmart does not have to explain what side it takes. So while it is clear that Walmart has lobbied on the forma on of unions, corporate tax reform, port security, and online privacy, the company’s stance on these issues must be surmised. Walmart and the Waltons are able to hide much of their political activity While federal, state, and local regula ons require the disclosure of much poli cal spending, there is a poten ally vast array of poli cal spending by both the company and the family that goes unreported. Walmart belongs to a number of trade associa ons and other tax-exempt groups that influence elec ons and the poli cal process. Walmart is not required to and currently does not disclose the amount of its dues and other payments made to these organiza ons that are used for poli cal purposes. Some of the higher profile organiza ons of which Walmart is a member include the U.S. Chamber of Commerce, the Retail Industry Leaders Associa on, Business Forward, and the Business Roundtable. Trade associa ons and nonprofit “social welfare” organiza ons like Karl Rove’s Crossroads GPS or Americans for Prosperity are shrouded in secrecy: they are not required to disclose their donors, and their spending is not reported to any public agency.11 This is commonly referred to as “dark money.” In a report by Demos and US PIRG Public Educa on Fund last June, the authors wrote that “there is moun ng evidence that nonprofits will again outspend Super PACs in 2012” just as they did in 2010,12 and the public has no way of knowing who is behind much of the funding. As Lee Fang recently wrote in The Naon, “the hundreds of millions slushing in secret money is bound to lead to another major scandal. And that scandal will likely to produce a lot of liability for the corpora ons involved.”13 At the state level, Walmart was a long me member of the controversial American Legisla ve Exchange Council (ALEC) un l May 2012. ALEC is infamous for promo ng legisla on that advances a conserva ve ideological agenda and benefits its members at the expense of everyone else. The organiza on developed and promoted an -union legisla on in Wisconsin and Ohio,14 as well as Arizona’s an -immigrant SB 1070.15 It has also been an ardent supporter of the priva za on of educa on,16 voter-ID laws17–which distort our democracy by making it 9. h4p://www.opensecrets.org/lobby/clientlbs.php?id=D000000367&year=2012 10. h4p://www.opensecrets.org/lobby/clien ssues.php?id=D000000367&year=2012 11. h4p://www.demos.org/sites/default/files/publica ons/MegaphonesMillionaires-DemosUSPIRG.pdf 12. Ibid. 13. h4p://www.thena on.com/blog/173590/why-mandate-disclosure-because-corpora ons-lie-voluntary-poli caltransparency 14. h4p://www.commoncause.org/aR/cf/%7BT3c17e2-cdd1-4df6-92be-bd4429893665%7D/MONEYPOWERANDALEC.PDF 15. h4p://www.prwatch.org/node/10980 16. h4p://www.commondreams.org/view/2011/07/14-12 17. h4p://www.propublica.org/ar cle/everything-youve-ever-wanted-to-know-about-voter-id-laws 2 harder for low-income people and people of color to vote–and is becoming increasingly known for having developed the “Stand Your Ground” law that became notorious following the death of Trayvon Mar n.18 Under intense public pressure, Walmart withdrew from ALEC in May 2012. The Walton Family Founda on has clear es to ALEC,19 but has so far refused to sever es with the group. A note on the Walmart Foundation as “a lever” While the scope of this report is deliberately limited to poli cal spending, it should be noted that the way in which the spending of the tax-exempt Walmart Founda on is regularly used to advance the interests of the company has come under increased scru ny of late. Leslie Dach, Walmart’s Execu ve Vice President for Corporate Affairs who recently announced his re rement, has spoken of the importance of the company’s philanthropic endeavors to improving Walmart’s reputa on. He described that reputa on as “a lever” in pursuing the company’s goals, which include expanding into urban America. In February, 2013, The Naon magazine released a 4-page memo20 from the Walmart Founda on that details the ways in which support from the founda on comes with clear expecta ons about the ways in which grantees can “honor” Walmart and even suggests that organiza ons may consider presen ng awards to the company and the Founda on. In March 2013, President Obama nominated Sylvia Ma4hews Burwell, the president of the Walmart Founda on, as director of the federal Office of Management and Budget.21 W ALMART AND THE W ALTON FAMILY SPEND MILLIONS TO INFLUENCE THE DEMOCRATIC PROCESS, DISPROPORTIONATELY SUPPORTING CONSERVATIVE POLITICIANS AND CAUSES From the 2000 elec on cycle through the 2012 cycle, the Waltons and the Walmart PAC spent nearly $17 million in federal elec ons. 18. h4p://www.prwatch.org/news/2013/02/11995/anniversary-trayvon-mar ns-death-alec-backed-stand-your-groundlaws-remain-books 19. h4p://thinkprogress.org/poli cs/2011/08/05/288823/alec-exposed-corpora ons-funding/ 20. h4p://www.thena on.com/sites/default/files/RECOGNIZING%20THE%20WALMART%20FOUNDATION%20FOR%20ITS% 20GOOD%20WORKS.pdf 21. h4p://blogs.wsj.com/washwire/2013/04/10/path-looks-clear-for-omb-nominee-burwell/ 3 Millions Walmart PAC spending has dramacally increased $2.5 $2.18 $2.06 $2.04 $2.0 $1.86 $1.72 $1.5 $1.28 $1.0 $0.58 $0.5 $0.01 $0.06 $0.11 $0.18 $0.18 $0.0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Source: Analysis of data from the Center for Responsive Polics Since the 2000 elec on cycle, more than $11.6 million—69% of Walmart and the Waltons’ contribu ons—has gone to Republican candidates and commi4ees.22 Over this me period 83% of the Waltons’ contribu ons, including their contribu ons to Super PACs, went to Republicans.23 As the following analysis shows, the candidates supported by Walmart and the Walton family also dispropor onately favored conserva ve causes and issues. Millions The Waltons overwhelmingly favor Republicans $1.0 $0.90 $0.80 $0.77 $0.8 $0.62 $0.6 $0.50 $0.40 $0.37 $0.4 $0.33 $0.2 $0.08 $0.04 $0.01 $0.02 $0.07 $0.02 $0.0 2000 2002 2004 Democrats 2006 Republicans Source: Analysis of data from the Center for Responsive Polics 22. Analysis of Data from the Center for Responsive Poli cs, opensecrets.org 23. Ibid 4 2008 2010 2012 The Waltons spend big on super PACs With some of the deepest pockets in America, the Waltons are spending millions to shape our democracy to serve their own interests. Despite the fear of a landslide of corporate poli cal contribu ons following the Supreme Court’s landmark federal elec on decisions in 2010, the top five contributors to super PACs during the 2012 cycle were individuals,24 each of them worth half a billion or more.25 The Waltons gave just shy of $900,000 to super PACs during the 2012 cycle.26 Of that, $400,000 went to Restore Our Future, the super PAC associated with Mi4 Romney. Alice Walton and Jim Walton each gave the PAC $200,000.27 As of June 30, 2012 there were 220 ac ve super PACs, which have raised more than $312 million for the 2012 elec on. Most of the contribu ons to super PACs had come from individuals, not corpora ons. Individuals had given $230 million to super PACs as of the end of June.28 In fact, there were only 356 donors—including Jim and Alice Walton—who had given over $100,000 to super PACs.29 Contribu ons of over $100,000 from individuals made up 63% of all super PAC contribu ons. Only 0.01% of Americans give more than $10,000 to Congressional campaigns in any elec on cycle.30 Jim, Lynne, Alice, and Samuel R. Walton each crossed this threshold during the 2012 cycle. When all federal giving is included, each of those four Waltons contributed well over $100,000 during the 2012 cycle. T HE W ALTON FAMILY, WHILE DISPROPORTIONATELY SUPPORTING R EPUBLICAN CANDIDATES, HAS NOT LIMITED THEMSELVES TO MODERATES WITHIN THE GOP In 2012, Jim Walton contributed to the re-elec on campaign of Loy Mauch,31 an Arkansas state legislator who has called the Confederate flag a “symbol of Jesus Christ” and acknowledged membership in the “neoconfederate” secessionist group known as League of the South.32 A?er Mauch’s views and Walton’s contribu on made headlines, Jim Walton asked that the contribu on be returned. In his le4er to Mauch, Walton wrote, “The contribu on was made because of your support for educa on reform in Arkansas. Since making the contribu on, however, I have learned about some of your views on other issues with which I disagree.”33 However, Mauch’s views on educa on are fairly extreme as well. For example, Mauch wrote in a le4er to the editor of the Arkansas Democrat-Gaze4e in 2006, “Public educa on was forced upon the South during Reconstruc on to complete the aim of the radical socialists, which was to destroy Southern conserva sm.”34 24. h4p://projects.propublica.org/pactrack/#contribu ons=all 25. h4p://www.publicintegrity.org/2012/04/26/8754/meet-super-donor-all-stars 26. Analysis of Data from the Center for Responsive Poli cs, opensecrets.org 27. Ibid 28. h4p://www.demos.org/sites/default/files/publica ons/MegaphonesMillionaires-DemosUSPIRG.pdf 29. h4p://www.demos.org/sites/default/files/publica ons/MegaphonesMillionaires-DemosUSPIRG.pdf 30. h4p://www.theatlan c.com/poli cs/archive/2012/07/big-campaign-spending-government-by-the-1/259599/ 31. h4p://walmart1percent.org/2012/10/15/jim-walton-backs-loy-mauch/ 31. h4p://www.ark mes.com/arkansas/the-south-shall-rise-again/Content?oid=1380685 31. h4p://www.ark mes.com/ArkansasBlog/archives/2012/10/26/jim-walton-asks-and-gets-return-of-loy-mauchcontribu on 32. h4p://walmart1percent.org/2012/11/02/does-jim-walton-think-public-schools-are-a-communist-plot/ 33. h4p://www.ark mes.com/ArkansasBlog/archives/2012/10/26/jim-walton-asks-and-gets-return-of-loy-mauchcontribu on 34. h4p://walmart1percent.org/2012/11/02/does-jim-walton-think-public-schools-are-a-communist-plot/ 5 Jim Walton and his wife Lynne have also contributed $3,000 to extremist Arkansas State Senator Jason Rapert (R-Conway) since December 2010, according to financial reports filed with the Arkansas Secretary of State.35 Rapert has faced recent public scru ny for his an -gay and an -choice posi ons – and for using racially- nged language to a4ack President Obama at a rally in 2011.36 Rapert invited na onal cri cism in early 2013 by pushing radical an -choice legisla on through the Arkansas State Senate.37 Rapert’s bill could effec vely outlaw abor ons a?er six weeks and force women seeking to terminate a pregnancy to submit to a vaginal probe. Rapert proudly declares himself a birther and a4acks the state Supreme Court for knocking down a ban on gay adop ons.38 CASE STUDY: STEVE WOMACK (R, AR-0 3) GETS TENS OF THOUSANDS FROM W ALMART AND THE W ALTONS IN ONE MONTH Before being elected to represent Northwest Arkansas in Congress in 2010, Republican Steve Womack may have been best known for his virulently an -immigrant views as mayor of Rogers, AR, home to many Walmart execu ves. During his tenure there, Womack faced a class ac on lawsuit. According to Newsweek: "If you're coming to America illegally," [Womack] declared in his campaign, "you don't want to come to Rogers." A year later the Immigra on and Naturaliza on Service had two agents temporarily housed in the Rogers Police Department. And in March that collabora on--and the alleged abuses it generated--prompted the Mexican American Legal Defense and Educa onal Fund (MALDEF) to file a class-ac on suit against the city and the police for racial profiling.39 The Walmart PAC and individuals with close es to the company are important donors to Womack. During the 2012 cycle, he was their top Congressional candidate by a landslide, according to the Center for Responsive Poli cs.40 Walmart and the Waltons gave tens of thousands to Womack during the 2012 elecons Womack for Congress (Campaign commi4ee) Razor PAC (Leadership PAC) Walmart PAC $10,000 $10,000 Waltons $15,000 Walmart execs and AR-based employees $29,450 $5,000 $54,450 $15,000 Source: Analysis of data from the FEC 35. h4p://www.sos.arkansas.gov/filing_search/index.php/filing/search/new 36. h4p://thecabin.net/news/local/2013-01-31/senate-panel-oks-bill-ban-abor on-if-fetal-heartbeatdetected#.UQ0kTGexWrA 37. Ibid 38. h4p://www.huffingtonpost.com/2011/04/07/arkansas-supreme-court-ban-gay-adop on_n_846174.html 39. h4p://www.thedailybeast.com/newsweek/2001/06/03/a-town-s-two-faces.html 40. h4p://www.opensecrets.org/orgs/toprecips.php?id=D000000367&type=P&sort=A&cycle=2012 6 Contribu ons from the Walmart PAC, Walmart employees, and the Walton family yielded $54,450 for Womack’s campaign during the 2012 cycle. His leadership PAC received another $15,000—27% of its total receipts—from the Walmart PAC and Walmart employees. The Walmart PAC made the maximum permi4ed contribu ons Womack’s campaign, as did each of the three Waltons who contributed. Addi onally, the Walmart PAC gave the maximum to his leadership PAC. Interes ngly, more than half of all these contribu ons came in during a very lucra ve window in June 2011. Three Waltons gave Womack’s campaign $5,000 each all on the same day that month. Around the same me, Walmart employees made contribu ons to his campaign and leadership PAC totaling $20,650. These came from execu ves with recognizable names like Doug McMillon, Charles Holley, and Susan Chambers, plus about two dozen others. The apparent coordina on of funding to the Womack campaign by the Walmart PAC, highranking Walmart employees, and the Walton family suggests that Bentonville’s poli cal strategy is pursued in tandem by all three sources. June 2011 was the most lucrave month for Womack’s campaign and Walmart Date Donor Total contribuons to Womack commi)ees June 10-15, 2011 Walmart PAC $2,000 June 11-28, 2011 Walmart employees $20,650 June 28, 2011 Alice, Jim, and Lynne Walton $15,000 June 2011 Total $37,650 Source: Analysis of data from the FEC In July 2012, Rep. Steve Womack of Arkansas offered an insight into Walmart’s legisla ve priori es not generally present in the retailer’s federally-mandated but opaque lobbying reports. Speaking to Bloomberg about a bill that would have allowed states to collect sales tax on online purchases made from out-of-state merchants, Rep. Womack said, “This is Wal-Mart’s top issue, if not one of their top issues.” Womack, who wrote the bill, went on to explain, “Wal-Mart is important to me because they are headquartered in my district.”41 Then, in October 2012, his campaign brought in another $10,500 from Walmart employees and execu ves.42 Walmart has yet to find success with its “top priority,” but Womack hasn’t given up either.43 And his latest run for Congress offers insight into the ways that the Walmart PAC, company execu ves, and the Waltons from me to me act in concert. 41. h4p://www.bloomberg.com/news/2012-07-20/wal-mart-pushes-web-sales-tax-as-washington-clout-grows-retail.html 42. Analysis of Womack campaign filings with the Federal Elec on Commission: h4p://query.nictusa.com/cgi-bin/ cancomsrs/?_12+H0AR03055 43. h4p://www.poli co.com/story/2013/03/online-sales-tax-might-have-to-stand-on-its-own-88958.html 7 A CTIONS SPEAK LOUDER THAN WORDS Although Walmart’s public rela ons machine has worked hard in recent years to make the company more palatable to more tradi onally liberal groups in America, a comparison of the company’s PAC and family’s poli cal contribu ons with scorecards compiled on key votes by organiza ons working to support immigrant rights, LGBT-rights, and environmental protec on among other things, makes clear the company’s dispropor onate support for poli cians working to support the status quo. In each of the following areas, the company’s PAC dispropor onately favored candidates who are weak on these issues. As the following charts reveal, the reality of Walmart’s support for conserva ve poli cians consistently runs counter to their public rhetoric around support for progressive policies and ini a ves. Gun control A number of tragic incidents in 2012 brought gun control and the forces shaping American public policy on the issue—like the Na onal Rifle Associa on and the American Legisla ve Exchange Council—into the spotlight. But while Walmart’s role as the na on’s largest seller of guns and ammuni on has been widely reported, their role in suppor ng a pro-gun poli cal agenda has not been widely understood. From 2005 through 2012, the Walmart PAC gave nearly $1.7 million to candidates endorsed by the NRA.44 The Waltons gave another half a million to NRA-endorsed federal poli cians over that me period, including super PAC funds. Among candidates with scores from the NRA, 58% of the Walmart PAC’s contribu ons and 76% of the Waltons’ contribu ons went to those endorsed by the pro-gun lobby. And the NRA only endorsed less than a third of candidates to whom it gave scores.45 In fact, among poli cians with 2012 grades from the NRA, three quarters of the Waltons’ 2005-2012 contribu ons went to candidates with scores between A+ and A. Only 31% of candidates received such high scores. The Walmart PAC and Waltons favored NRA-endorsed candidates 100% 24% 42% 50% 76% 58% 0% Walmart PAC contributions Candidates endorsed by the NRA Walton contributions Candidates not endorsed by the NRA 44. The statements in this paragraph are based on an analysis of contribu on data from the Center for Responsive Poli cs, opensecrets.org, compared to NRA endorsement data, www.nrapvf.org/ 45. www.nrapvf.org/ 8 Beyond their direct support for NRA-endorsed candidates, Walmart and the Walton family have also helped support a pro-gun agenda through their par cipa on in the right-wing American Legisla ve Exchange Council. ALEC, a membership organiza on made up primarily of companies and conserva ve state legislators, produces right-wing model legisla on that is then introduced in state legislatures na onwide.46 ALEC’s pro-gun efforts have included opposing bans on semi-automa c weapons47 and opposing wai ng periods for background checks.48 ALEC also helped propagate the notorious “Stand Your Ground” law linked to the killing of Trayvon Mar n in Florida last February. The “Stand Your Ground” law, which ini ally shielded Mar n’s shooter from arrest in weeks following the killing, came out of an ALEC working commi4ee co-chaired by a Walmart execu ve in 2005.49 Last year, amid intense public pressure, Walmart withdrew from ALEC. However, there is no evidence that the Walton Family Founda on has withdrawn from ALEC, despite the fact that civil rights leaders and others have called on them to do so. As the country’s biggest seller of firearms and ammuni on, Walmart has relied on gun sales to improve its poor performance. In 2011, Walmart reportedly began stocking more guns to boost its flagging same store sales.50 Following the tragic shoo ngs in Connec cut last December, Walmart pulled the type of assault rifle used in the a4ack from its website, but it was s ll available in about 1,700 stores na onally.51 The move belied Walmart and the Walton family’s support of pro-gun poli cians and the company’s reliance on gun sales. Environment Walmart and the Walton family finance poli cians who fight ac on to address the climate crisis, including funding the campaigns of some of the most powerful climate change deniers in Congress. Between 2005 and 2012, Walmart and the Waltons gave $2.1 million, more than half of their total Congressional campaign dona ons, to members of Congress with life me scores of 30 or less on the League of Conserva on Voters scorecard.52 During the 2011-2012 elec on cycle, 70% of contribu ons from Walmart and the Walton family went to lawmakers who voted in favor of the Keystone XL Tar Sands Pipeline compared with only 60% who voted for it.53 In June 2012, Walmart chair Rob Walton gave $10,000 to a super PAC running ads cri cizing Rep. Jeff Flake’s (R-AZ) vote against the pipeline.54 46. h4p://www.alecexposed.org/wiki/ALEC_Exposed 47. h4p://alecexposed.org/w/images/0/00/7J11-Resolu on_on_Semicopy_Exposed.pdf 48. h4p://alecexposed.org/w/images/3/37/7J10-Resolu on_On_Firearms_Purchase_Wai ng_Periods_Exposed.pdf 49. h4p://walmart1percent.org/2012/03/27/whats-the-walmart-connec on-to-the-shoo ng-of-trayvon-mar n/ 50. h4p://www.thena on.com/ar cle/171808/how-walmart-helped-make-newtown-shooters-ar-15-most-popular-assaultweapon-america 51. Ibid 52. h4p://scorecard.lcv.org/sites/scorecard.lcv.org/files/LCV_Scorecard_2012.pdf 53. Analysis of contribu on data from the Center of Responsive Poli cs, opensecrets.org, with vo ng records from the Congressional record. 54. h4p://walmart1percent.org/2012/07/20/rob-walton-secure-arizona/ 9 The Walmart PAC and Waltons funded supporters of the Keystone Pipeline 100% 12% 31% 50% 88% 69% 0% Walmart PAC contributions Pipeline supporters Walton contributions Pipeline opposition Marriage equality and LGBT rights Neither Walmart nor the Waltons have an encouraging track record when it comes to suppor ng gay rights. As the country faces a watershed moment for LGBT equality, the Walton family and Walmart con nue to heavily back opponents of progress and send clear signals that they are on the wrong side of history. Hundreds of corpora ons filed briefs with the Supreme Court in support of same sex marriage in 2013, but Walmart was not among them. In fact, Walmart finds itself near the bo4om of the Human Rights Campaign’s Corporate Equality Index for 2013.55 Among other things, the report notes that Walmart does not offer health, dental, or vision benefits to same sex partners and the company does not have company-wide organiza onal competency programs highligh ng sexual orienta on and gender iden ty. The Waltons appear to be similarly-minded when it comes to blocking progress. In 2008, Jim Walton gave $75,000 to the Arkansas Family Council Ac on Commi4ee, which at the me was suppor ng a ballot measure to prevent gay families from adop ng.56 Walton’s contribu on amounted to over 55% of all the money the group raised that cycle.57 The measure passed but has since been struck down by the Arkansas State Supreme Court (although defended by Walton-backed extremist state representa ve Jason Rapert). Meanwhile, every year since 2002, the Walton Family Founda on has made grants to the Chris an missionary group Young Life.58 The group specifically prohibits gays and lesbians from serving as staff or volunteers with the organiza on.59 55. h4p://www.hrc.org/corporate-equality-index/#.UVNgr2dvZ8E 56. h4p://www.followthemoney.org/press/ReportView.phtml?ext=7&r=406 57. Ibid 58. Data from Walton Family Founda on IRS Form 990, reviewed at Guidestar.org 59. h4p://greaterpuyyl.younglife.org/Documents/Faith%20and%20Conduct%20Policies.pdf 10 So it is perhaps unsurprising that both Walmart and the Waltons tend to favor candidates with abysmal track records on gay rights. Among members of Congress listed in the Human Rights Campaign’s latest scorecard,60 the overwhelming majority of the Waltons’ campaign contribu ons from 2005 to 2012 went to those who either oppose or are silent on gay marriage. Only 6% of their contribu ons went to members of Congress who support gay marriage, even though more than half the public and 35% of Congress do.61 The Waltons’ contribuons almost completely exclude pro-marriage equality candidates 100% 6% 23% 50% 94% 77% 0% Walmart PAC contributions Supporters of marriage equality Walton contributions Opposed to or silent on marriage equality The Walmart PAC doesn’t fare much be4er. Their contribu ons don’t stack up well against the Human Rights Campaign’s overall scorecard or on the issue of gay marriage, in par cular. The majority of the Walmart PAC’s contribu ons went to candidates with scores below 25 out of 100.62 In fact, the PAC gave over $1.5 million between 2005 and 2012 to candidates with scores of 0 alone. Over the same me period, 77% of the PAC’s contribu ons went to those who either oppose or are silent on gay marriage. Combined, only 21% of Walmart and the Waltons’ contribu ons over this me period went to proponents of equality.63 Minimum wage The Waltons, the face of the one percent in America, have made their fortune from Walmart. It’s a fortune built on the backs of low-paid workers, da ng back to the company’s founding. When President Kennedy extended the minimum wage to apply to retail workers, Sam Walton did all he could to avoid paying it, breaking his company up into a series of smaller companies in an a4empt to exempt them from the law. Ul mately, a federal court ruled against Walton and ordered him to pay back his employees what they were owed, plus a penalty. He paid up, but not stopping there, Sam Walton told his employees that he’d fire anyone who cashed the check.64 60. h4p://www.hrc.org/files/assets/resources/112thCongressionalScorecard_2012.pdf 61. Analysis of data from the Center for Responsive Poli cs and comparison of scorecard data from the Human Rights Campaign, h4p://www.hrc.org/files/assets/resources/112thCongressionalScorecard_2012.pdf 62. Ibid 63. Ibid 64. h4p://prospect.org/ar cle/wal-marts-image-0 11 Back then, the minimum wage was $1.15. Since that me, it hasn’t come close to keeping up with infla on, so the House recently voted on a measure to increase it to $10.10 and index it to infla on. It didn’t pass, with 54% of the House vo ng against it.65 The Waltons’ recent contribu ons do provide some insight into how the Waltons are carrying on the tradi on of the family patriarch, however. From 2005 to 2012, a staggering 95% of the Waltons’ poli cal contribu ons to House members who voted on the minimum wage increase went to those who opposed the measure. The Walmart PAC and Waltons favored House members who voted against raising the minimum wage 100% 5% 41% 50% 95% 59% 0% Walmart PAC contributions Walton contributions House members in favor of minimum wage increase House members against minimum wage increase The Walmart PAC also favored opponents of the minimum wage hike. Among House members vo ng on raising the minimum wage, three-fi?hs of the Walmart PAC and Waltons’ contribu ons from 2005 to 2012 went to those opposing the increase.66 Immigration One of Walmart’s newest trade associa ons is Business Forward. The group is made up of a number of major corpora ons and has allied itself with the White House, receiving excep onal access to high-ranking officials.67 While the group meets with White House representa ves to discuss immigra on reform,68 it is important to note that Walmart’s ac ons speak louder than any front group’s words. The company’s track record in the La no community is abysmal, and the Walmart PAC and Waltons’ poli cal contribu ons dispropor onately favor an -immigrant poli cians. Between 2005 and 2012, 52% of the Walmart PAC’s poli cal contribu ons went to members of Congress with scores of 25 and below on the William C. Velasquez Ins tute’s Immigrant Jus ce Scorecard from 2010 (the most recent available).69 On the other hand, only 45% of those ranked received such low scores. 65. h4p://www.washington mes.com/news/2013/mar/15/house-defeats-minimum-wage-increase/ 66. Analysis of data from the Center for Responsive Poli cs and Congressional vo ng record, h4p:// projects.washingtonpost.com/congress/113/house/1/votes/74/ 67. h4p://freebeacon.com/corporate-cash-financing-obama-501c4/ 68. h4p://www.whitehouse.gov/blog/2011/05/31/people-are-talking-and-people-want-immigra on-reform 69. h4p://wcvi.org/jus ce/reportcard/reportcard_home.htm 12 Many elected officials who received contribu ons from Walmart PAC and the Waltons also supported E-verify, immigrant deten on, militariza on of the U.S.-Mexico border, and funding local law enforcement agencies to conduct enforcement of federal immigra on laws.70 More than half of the Walmart PAC and Waltons’ contribuons went to an-immigrant candidates 100% 48% 42% 50% 52% 58% 0% Walmart PAC contributions Candidates with scores 25 and below Walton contributions Candidates with scores 26 to 100 Up and down the supply chain, Walmart’s ac ons tell a similar, an -La no and an -immigrant story, star ng with workers directly employed by the company. Walmart’s low wages are not good for anyone, but minori es are dispropor onately represented in low-paying posi ons. While people of color made up 37% of Walmart’s US workforce in 2012, only 27% of first and mid-level officials and managers were minori es.71 Women Just two years ago, Walmart’s lawyers found themselves before the Supreme Court because of a class ac on lawsuit brought against the company by its female employees, who believed they had been discriminated against. The Supreme Court was tasked with deciding whether or not the women could be considered a class, not whether or not Walmart had discriminated, but important stories and details of what it’s like to be a woman working at Walmart emerged along the way. In 2001, a sta s cian studied Walmart’s records and found that found that female Walmart employees at all levels earned less than their male counterparts.72 Women at Walmart earned $5,200 less per year than men, on average. Women who worked in hourly posi ons earned $1,100 less than men in the same posi on. Women in salaried posi ons earned $14,500 less than men in the same posi on. In 2012, women made up 57% of Walmart’s workforce in the U.S., but they held only 42% of top and mid-level management posi ons.73 70. Analysis of data from the Center for Responsive Poli cs and comparison of Immigrant Jus ce Scorecard h4p://wcvi.org/ jus ce/reportcard/reportcard_home.htm 71. h4p://corporate.walmart.com/global-responsibility/diversity-inclusion 72. h4p://www.walmartclass.com/sta cdata/reports/r2.pdf 73. h4p://corporate.walmart.com/global-responsibility/diversity-inclusion 13 The Walmart PAC and Waltons’ poli cal contribu ons reflect this track record. Among candidates with scores on the American Associa on of University Women’s 2012 Congressional scorecard, the majority of the Walmart PAC and Waltons’ contribu ons went to those with scores of 25 and below.74 The scorecard factors in a range of issues including the reauthoriza on of the Violence against Women Act, the Paycheck Fairness Act, Planned Parenthood funding, and educa on. Candidates with low scores on women’s issues received disproporonately more from the Walmart PAC and the Waltons 100% 15% 47% 50% 85% 53% 0% Walmart PAC contributions Candidates with scores 25 and below Walton contributions Candidates with scores 26 to 100 Civil rights The Leadership Conference on Civil and Human Rights evaluated the 112th Congress based on votes including misguided a4empts to protect voter ID laws, a4acks on worker rights, the Ryan budget, and extending Bushera tax cuts.75 A comparison of this scorecard with the Walmart PAC and Waltons’ contribu ons from 2005 to 2012 shows that, among candidates with scores, the Walmart PAC and Waltons favored candidates who failed to protect civil rights. In fact, 85% of the Waltons’ contribu ons went to candidates with scores of 25 below, out of 100. 74. Analysis of data from the Center for Responsive Poli cs and the AAUW Ac on Fund scorecard for the 112th Congress, available online: h4p://www.aauwac on.org/wp-content/uploads/2012/09/CVR2012.pdf 75. h4p://civilrightsdocs.info/pdf/vo ng-record/leadership-conference-vo ng-record-112-congress.pdf 14 The Walmart PAC and Waltons favored candidates with low scores on civil rights 100% 15% 48% 50% 85% 52% 0% Walmart PAC contributions Candidates with scores 25 and below Walton contributions Candidates with scores 26 to 100 The Walton family further undermines Americans’ civil rights through the Walton Family Founda on’s con nued membership in ALEC. Legisla on supported by the right wing group and its members includes the recent round of voter suppression laws introduced in 27 states. Supporters of discriminatory voter ID laws claim they want to reduce voter fraud, but such fraud almost never actually occurs, and never in amounts large enough to impact the result of elec ons.76 These laws have a dispropor onate impact on the poor, the elderly, and people of color. WALMART FORCES COSTLY SPECIAL ELECTIONS, PERVERTING THE DEMOCRATIC PROCESS AND REINFORCING ITS REPUTATION AS A DRAIN ON LOCAL ECONOMIES Walmart has undertaken a controversial strategy to expand its footprint in California in the face of increasing public opposi on. The company has increasingly been using the ballot ini a ve process to threaten costly special elec ons and circumvent environmental review. 76. h4p://www.propublica.org/ar cle/everything-youve-ever-wanted-to-know-about-voter-id-laws 15 The process is simple, as California Watch explains: The Arkansas-based retailer has hired paid signature gatherers to circulate pe ons to build new superstores or repeal local restric ons on big-box stores. Once 15 percent of eligible voters sign the pe ons, state elec on law puts cash-strapped ci es in a bind: City councils must either approve the Wal-Mart-dra?ed measure without changes or put it to a special elec on. As local officials grapple with whether to spend tens of thousands or even millions of taxpayer dollars on such an elec on, Wal-Mart urges ci es to approve the pe on outright rather than send it to voters.77 Walmart has honed this tac c in ci es and towns across the state, perhaps most notably in San Diego, where it spent over $2 million paying elec on lawyers, campaign consultants, and public rela ons firms in an effort to open four new stores and fight big box regula ons.78 The company gathered the necessary signatures for a referendum to repeal big box legisla on in 2011, at a me when no other elec ons were slated. A special elec on would have cost the city $3.4 million. The City Council, forced into a corner, overturned the law instead. As one City Council member put it, "Let's be clear, this is a dark day for democracy."79 Walmart’s strategy has the added benefit of helping the company avoid lawsuits under the California Environmental Quality Act, which concerns the environmental and traffic impacts of development projects— the law does not apply to ballot ini a ves. CASE STUDY: THE WALTONS’ PET CAUSE, UNDERMINING PUBLIC EDUCATION The Waltons do not shy away from opportuni es to use their inherited fortune to influence poli cs and pursue right-wing poli cal goals. The same holds true of their goal to undermine public educa on. In recent years, the family has spent more than $1 billion in efforts to “infuse compe ve pressure into America’s K-12 educa on system.”80 81 This is a vast sum despite the fact that it is spent mostly in states where no Walton family members live or have children in school, that compe ve market principles don’t apply to educa on,82 and that allowing the wealthiest members of our society to dictate public policy ma4ers like educa on by slinging around their wealth is profoundly an -democra c. The Waltons are funding the corporate educa on reform movement in two ways: through the Walton Family Founda on and through local-level poli cal dona ons. Since 2005, the family’s tax-exempt founda on has given more than $1 billion to corporate educa on reform causes.83 Walton grantees include: 77. h4p://californiawatch.org/money-and-poli cs/wal-mart-ramps-ballot-threats-speed-new-stores-13678 78. Ibid 79. h4p://www.huffingtonpost.com/al-norman/wal-mart-buys-san-diego_b_818540.html 80. h4p://www.waltonfamilyfounda on.org/educa onreform 81. h4p://waltonfamilyfounda on.org/mediacenter/walton-family-founda on-invests-$159-million-in-k12-educa onreform-in-2011 82. h4p://dianeravitch.net/2012/10/11/the-case-against-for-profit-entrepreneurs-in-educa on/ 83. Based on reports of grant funding in 2005, 2006, 2007, 2008, 2009, 2010, and 2011 on the Walton Family Founda on website (and archived versions of the website from the Internet Archive, h4p://www.archive.org). 16 • Myriad voucher and charter school advocacy organiza ons, including the Milton Friedman Founda on for Educa onal Choice; union-buster Stand for Children;84 and Michelle Rhee’s pro-priva za on, prohigh stakes tes ng organiza on, Students First.85 • The Alliance for School Choice, a pro-voucher organiza on led by Betsy DeVos of Michigan’s notorious right-wing DeVos family. (Carrie Walton Penner is an ASC board member.)86 • The Na onal Right to Work Legal Defense and Educa on Founda on.87 Since 2000, members of the Walton family have spent at least $24 million dollars funding poli cians, poli cal ac on commi4ees, and ballot issues at the state and local level that favor their corporate approach to school reform.88 At local levels of government, where fundraising totals are smaller than those at the federal level, Walton largesse can go a very long way toward shaping public policy. • 2012 charter school ballot iniaves In November 2012, residents of Washington State voted on I-1240, an ini a ve that would essen ally permit charter schools in Washington, which currently doesn’t accommodate them, and that included a fairly aggressive “parent trigger” clause. The signature filing deadline was July 6, 2012; five days later, Alice Walton—who lives in Texas, not the Pacific Northwest—gave $600,000 to the pro-charter school commi4ee.89 By Elec on Day, she had given a total of $1.7 million and become the cause’s second largest donor. Similar ini a ves had already been rejected by Washington voters three mes since the ‘90s. In fact, in 2004, John Walton was the biggest contributor to that year’s failed charter school ini a ve, giving over $1 million.90 This year, the measure—nicknamed “the billionaires’ ini a ve” because of massive financial support from Walton and other colossally wealthy donors like Bill Gates—passed with 50.69% of the vote.91 Alice Walton contributed another $600,000 in support of a cons tu onal amendment in Georgia allowing the establishment of charter schools.92 The measure passed. • Wisconsin 2010 From 2009-2010, the elec on cycle that brought Republicans to power in Wisconsin, Alice Walton was the top individual donor to Wisconsin legislators according to WisconsinWatch.org. Alice and five other Waltons were among the top fi?een poli cal donors in Wisconsin legisla ve races during that elec on cycle.93 The legisla ve victories they contributed to, combined with the family founda on’s mul -million dollar efforts to fund experiments in school choice in the state, serve as a mul -pronged approach to further their conserva ve agenda. 84. h4p://sea4leduca on2010.wordpress.com/2011/07/09/stand-for-children-stands-for-the-rich-and-the-powerful/ 85. h4p://dianeravitch.net/2013/01/08/michelle-rhees-upside-down-agenda/ 86. h4p://www.allianceforschoolchoice.org/leadership 87. IRS Form 990 report from Walton Family Founda on. Accessed at Guidestar.org 88. This figure—which includes dona ons to candidates for school board posi ons, educa on PACs, and charter school ballot ini a ves—is likely an underes mate, as local-level campaign finance informa on is more difficult to access and is held by varying jurisdic ons. It is based on data obtained from campaign finance databases in California, Colorado, Florida, Georgia, Indiana, Louisiana, Massachuse4s, Michigan, Missouri, New Jersey, Virginia, Washington, and Wisconsin. 89. h4p://blogs.sea4le mes.com/uwelec oneye/2012/07/26/charter-schools-ini a ve-1240-bankrolled-by-techmillionaires/ 90. Analysis of data from Washington State Public Disclosure Commission: h4p://www.pdc.wa.gov/MvcQuerySystem/ Commi4eeData/contribu ons?param=QVBQUlIgIDEwNQ====&year=2004&type=ini a ve 91. h4p://vote.wa.gov/results/current/Ini a ve-Measure-No-1240-Concerns-crea on-of-a-public-charter-schoolsystem.html 92. h4p://walmart1percent.org/2012/11/09/elec on-day-2012-in-review-grading-the-waltons/ 93. h4p://www.wisconsinwatch.org/2011/09/18/school-choice-part-1/ 17 The Waltons have spent $2.9 million in state-level poli cs in California over the past two decades, far more than in any other state. In 2006, Bay Area resident Greg Penner helped oppose an early childhood educa on ini a ve that would have increased taxes on the wealthy: • 2006 California early childhood educaon iniave The Waltons contributed to the defeat of one of the largest early childhood educa on ini a ves in state history.94 In 2006, Greg Penner, Walmart board member and son-in-law of S. Robson Walton, contributed $250,000 to “No on 82.” The so-called “Reiner Ini a ve” — named a?er its sponsor, actor and director Rob Reiner—sought to establish a universal preschool system in California for fouryear-olds by placing an addi onal income tax on individuals making more than $400,000 a year, and couples making in excess of $800,000. The Waltons are also a4emp ng to stack the deck in favor of their preferred candidates in local poli cal races—specifically those for school superintendent and school board, which typically get less a4en on and fewer campaign dollars but are cri cal in seJng educa on policy. For example: • Louisiana: In 2011, Greg Penner and Carrie Walton Penner each gave $5,000 to Kira Orange Jones, a candidate for the Louisiana State Board of Elementary and Secondary Educa on. Orange Jones, the Teach for America head in New Orleans, is said to have “[run] as the embodiment of post-Katrina reform efforts in New Orleans”— efforts that have focused on charter schools and school priva za on.95 In October 2012, Penner gave $2,500 to Sarah Newell Usdin, who successfully ran for the New Orleans school board. Usdin runs a New Orleans-based corporate educa on reform nonprofit. The Walton Family Founda on gave Usdin’s organiza on, New Schools for New Orleans, $1.2 million in 2012.96 • Indiana: In July 2012, Alice Walton gave $200,000 to state superintendent candidate Tony Benne4, who backs vouchers, charters, teacher merit pay, and high-stakes tes ng.97 Three months later, Greg Penner gave $5,000 to a candidate for the Indianapolis school board.98 • New Jersey: In Fall 2012, Greg Penner gave $8,000 to a poli cal commi4ee suppor ng a slate of candidates for the Perth Amboy, NJ school board.99 The poli cal ac vi es of the Walton family and Walmart frequently intertwine and reinforce each other, even when it comes to educa on reform. Last summer, Walmart sponsored a fundraiser concert in Los Angeles called “Teachers Rock,” which featured performances by well-known bands, appearances by celebri es, and scenes from Won’t Back Down.100 The film is a highly favorable treatment of “parent-trigger” laws, whose produc on was funded by conserva ve media company Anschutz Film Group.101 Parent-trigger laws are a controversial educa on reform tac c promoted by the notorious right-wing American Legisla ve Exchange Council (ALEC)102 and favored by the Walton family.103 94. h4p://walmart1percent.org/files/2012/02/WW-Poli cal-Giving_0602.pdf 95. h4p://www.nola.com/poli cs/index.ssf/2011/11/kira_orange_jones_elected_to_b.html 96. h4p://www.waltonfamilyfounda on.org/about/2012-grant-report#educa on 97. h4p://stateimpact.npr.org/indiana/tag/tony-benne4/ 98. h4p://www.schoolsma4er.info/2013/03/buying-indianapolis-public-schools.html 99. h4p://nepc.colorado.edu/blog/who-runs-reformy-campaign-money-machine 100. h4p://www.businesswire.com/news/home/20120724006523/en/TEACHERS-ROCK-Presented-Walmart-%E2%80% 9CWon%E2%80%99t-Down%E2%80%9D--Special 101. h4p://inthese mes.com/working/entry/13643/ walmart_anschutz_teachers_rock_wont_back_down_union_parent_trigger_viola_da/ 102. h4p://www.alecexposed.org/wiki/Bills_Affec ng_Americans%27_Rights_to_a_Public_Educa on 103. h4p://www.alternet.org/educa on/public-schools-billionaire-agendas-threat-parent-revolu on-campaign-0 18 Public school advocates cri cized Walmart for backing the “Teachers Rock” event, poin ng out that even the event’s name was a cynical choice given that parent-trigger laws prompt mass firings of school teachers and staff. Wrote educa on historian and professor Diane Ravitch: “Strange way to ‘honor’ teachers–by firing them and giving the school to a non-union private en ty to manage, which may hire only young teachers willing to work a 50-60 hour week at low wages. More ‘honors’ like this and there won’t be a teaching profession in America, just teaching temps.”104 Part of the proceeds from the Walmart-sponsored concert also went to a group with deep Walton connec ons: Teach for America. Walmart director and Walton family member Greg Penner is on the na onal board of directors.105 104. h4p://dianeravitch.net/2012/07/30/beware-sneaky-reformer-trick-in-l-a/ 105. h4p://www.teachforamerica.org/our-organiza on/boards 19 Unless otherwise noted, federal poli cal contribu ons data in this report were provided by the Center for Responsive Poli cs. UFCW and OUR Walmart have the purpose of helping Walmart employees as individuals or groups in their dealings with Walmart over labor rights and standards and their efforts to have Walmart publically commit to adhering to labor rights and standards. UFCW and OUR Walmart have no intent to have Walmart recognize or bargain with UFCW or OUR Walmart as the representave of Walmart employees. 20
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