PHILADELPHIA – April 26, 2007 – The Committee of Seventy today called the creation of “527” committees “another brazen attempt to avoid the City’s campaign finance law.” This statement comes in the wake of published reports of the formation of a 527 committee to raise issues about Democratic mayoral candidate Tom Knox. There are reports of other 527 committees being formed in advance of the May 15, 2007 primary election.

“’527 committees’ are ‘issue advocacy groups’ that advocate either on behalf of or in opposition to political issues, not to elect or defeat a particular candidate,” explained Seventy’s President and CEO Zack Stalberg, who noted that this distinction allows 527s to obtain a tax-exempt status and avoid the purview of the Federal Election Commission. “However, when the purported mission of a committee is to simply attack a candidate, you have to ask whether that committee is crossing the line.”

Stalberg explained that his comments are based on reports published earlier today quoting former City Commissioner Alex Talmadge as stating that the intent of the new Economic Justice Coalition for Truth “527” committee was to “raise enough money to get television ads on before the election to raise issues people don’t know about [Democratic mayoral candidate Tom] Knox. “If this is truly the group’s aim,” Stalberg remarked, “it doesn’t appear to be legitimate issues advocacy, but blatant negative advertising.”

Stalberg, who has criticized Knox’s personal campaign spending when his less wealthy opponents are constrained by the City’s campaign finance law, emphasized that his statement is

in furtherance of Seventy’s mission to safeguard the integrity of the elective process, not to support Knox or any other mayoral candidate. “Our concern is to make sure that 527 committees are not created as subterfuges for evading campaign finance limits and personal accountability by all candidates,” he said. He noted that the 527 committee Swift Boat Veterans for Truth, which spent over $22 million to attack John Kerry in the 2004 presidential election, recently agreed to pay penalties in conjunction with a settlement reached with the Federal Election Commission after the Commission determined that some of the group’s activities were, in fact, improperly focused on influencing the election’s outcome.

Stalberg called upon the Board of Ethics to take a position on whether the Economic Justice Coalition for Truth is a genuine 527 committee and, furthermore, independent of any of the candidates in the Democratic primary, as well as the Democratic party organization. “If this committee, or any other 527 committee, is truly acting at the behest of another candidate in the race or of the Democratic party, it is important to get the truth out in the open. The public needs to know who is behind all 527 committee efforts,” added Stalberg. According to rules of the Internal Revenue Service, the next deadline for reporting donations to 527 committees is not until July 31st.

“Once again, Seventy cautions voters not to be unduly persuaded by positive or negative ads aired by any candidate or committee,” said Stalberg. “Voters should do their own homework on the issues, the candidates’ background and their vision for the future of Philadelphia.”

The Committee of Seventy is a non-partisan organization conducting a permanent campaign to improve the Philadelphia region by demanding ethical conduct of public officials, safeguarding elections, promoting government efficiency and educating citizens.

# # #