WMC seeks bailout for lobbying groups
Organization spent $1M in Supreme Court race
The uber-conservative Wisconsin Manufacturers & Commerce — the state’s business lobby — has long fought most tax increases and deficit spending.
But now that there might be taxpayer-funded bailout money on the table, WMC appears to want a piece of the action for itself and other Wisconsinbased lobbying groups.
In a letter last month, WMC wrote the state’s congressional delegation asking that trade associations be eligible for the Paycheck Protection Program in the next round of coronavirus stimulus money.
These groups are needed, WMC said, because they are “voices of our members and their industry sectors, relaying critical information to decision-makers about the needs and experiences of our members.”
In other words, these trade associations lobby the governor and Legislature for their own special interests.
But that’s not all.
The bailout letter was dated April 8, one day after the spring general election in which WMC’s political arm dumped more than $1 million into helping Supreme Court Justice Daniel Kelly’s failed campaign.
Kelly, a conservative, was beaten by liberal Dane County Jill Karofsky by 10 percentage points.
It was also written shortly before the powerful business lobby got state Republican leaders to weaken workers’ compensation protections for first responders in the state’s coronavirus relief legislation.
And now the folks at WMC, headed by CEO Kurt Bauer, don’t want to talk about the letter.
Asked if the state’s business lobby would seek money from the bailout fund if it were eligible, a spokesman for the group was tight-lipped.
“Please refer to our letter for comment,” said Nick Novak, vice president of communications and marketing.
Novak wouldn’t even say if all those signing its letter are members of WMC: “Our member list is confidential, so I am not able to answer your question.”
Finally, Novak didn’t even respond when questioned about whether it was hypocritical for the right-wing group to seek government bailout money.
Scores of Wisconsin groups signed the letter asking for trade associations to be given access to the PPP money in the next round of stimulus funds. That program provides loans to small businesses hit hard by the restrictions put in place to halt the spread of COVID-19.
Among those signing on were such political heavyweights as the Wisconsin Dairy Alliance, the Wisconsin Paper Council and the Wisconsin Realtors Association. Another 65 local chambers of commerce also put their names on the document.
Each of these groups are made up of businesses that put their money together to form a nonprofit that then lobbies for those companies’ interests. Many of those trade groups have a separate arm that provides campaign donations or spend money independently in support of candidates.
The letter comes as there is a push nationally to make sure these trade groups, organized as 501(c)(6) nonprofits, are made eligible for the small business rescue program. They were specifically excluded from tapping these funds in the first round of coronavirus stimulus spending.
“Lobbyists have stepped up a campaign to make sure professional influence peddlers are eligible for the PPP, or P3, funds,” wrote Lee Fang of The Intercept. “Senior Democratic lawmakers, including House Speaker Nancy Pelosi, plan to accommodate the demand and change the eligibility standard so that small business bailout money can flow to business advocacy groups.”
WMC has been out in front of this push.
In its April 8 letter, it said these trade groups are “performing an essential role for our state’s businesses” during this critical period.
“We transmit information, answer questions, and ensure that our members have the tools they need to comply with the deluge of laws, orders and regulatory changes that are being introduced,” WMC wrote.
But not all groups that signed the WMC letter said they would seek bailout funds.
The Wisconsin Realtors Association, which has 10 lobbyists, put its name on the letter. But Mike Theo, president and CEO of the organization, said it would not seek any bailout funds.
Theo signed on because the position was consistent with that of the National Association of Realtors.
Others made it clear they are in need of any help they can get.
Kristine Hillmer, head of the Wisconsin Restaurant Association, said her organization is not just a trade group but a small business that is hurting financially. She said the PPP money would be a financial lifeline for the group.
“We’ve been hit hard financially at a time when our industry is counting on us more than they ever have to help them navigate a situation that sometimes changes hour to hour,” Hillmer said. “As an organization, we’ve done furloughs, cuts in pay, and cuts in schedules across, plus are scrutinizing every expenditure.”
Wisconsin Grocers Association CEO Brandon Scholz said he signed on to the letter to help his members. He said many hometown grocers are struggling to get personal protective equipment, such as gloves and masks, as well as sanitary wipes and plexiglass barriers at checkout counters.
Scholz said he would use any PPP money to pass on to his members.
“I’ll sign on to anything to help the grocers in the state get (personal protective equipment,” he said.
Interestingly, the Metropolitan Milwaukee Association of Commerce — Milwaukee’s business lobby — did not put its name on WMC’s letter.
MMAC President Timothy Sheehy said his organization is not opposed to getting government help. He said his group has taken advantage of the payroll tax credit and that its charitable arm has accepted funding from the Payroll Protection Program.
Sheehy said much of his effort in recent weeks has been helping his members as they struggle financially during the pandemic.
Asked if chambers of commerce should take government bailout funds, given their historic opposition to most tax increases and government debt, Sheehy said that was a concern. But he declined to speak for the entire industry.
“Each one has to make their own determination,” Sheehy said.
And WMC is already speaking out for them all.