In a new sign that high-tech companies are emerging from their reticence, or distaste, at playing traditional politics, an activist group's study reported Monday that the industry is beginning to make some big-time political contributions.
The Center for Responsive Politics study shows tech, though still behind heavyweights like tobacco and telecom, is starting to get into the same league in federal campaign contributions.
In the 1995-96 election cycle, the computer industry spent US$7.3 million on PACs, soft-money contributions to the Republican and Democratic national committees, and individual contributions to candidates for president, the Senate, and House. That amounted to a more than 80 percent increase over 1994, when the industry gave about $4 million. In the last election cycle, 53 percent of the tech dollars went to Republicans.
Among the biggest donors: Ross Perot-founded Electronic Data Systems, which gave nearly $400,000; and Future Tech International, which gave more than $350,000. Microsoft ranked seventh, ponying up about $235,000, and Steve Jobs' Pixar Animation was eighth, giving $150,000.
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Top 10 Contributors
- -Electronic Data Systems__$389,449__Future Tech International__$352,500__ECM Corp.$311,709__Gateway 2000$310,750__Diamond Multimedia Systems__$260,000__Sterling Software__$242,567__Microsoft__$235,584__Pixar__$150,000__Powersoft__$144,000__Diamond Multimedia Systems__$138,648____Source: Center for Responsive Politics__The tobacco and telecom industries - two of the most aggressive players in Washington - gave $10.1 million and $11 million, respectively, to campaigns and parties. However, those figures only account for the 10 to 15 tobacco giants, and the seven Baby Bells, MCI, AT&T, and Sprint. Total computer industry contributions account for about 600 companies, said Jennifer Shecter, researcher at the Center for Responsive Politics.
Not surprisingly, the top recipients of computer contributions were representatives from high-tech states. Representatives Tom Campbell (R-California), Rick White (R-Washington), and Anna Eshoo (D-California), who each introduced legislation that would make it more difficult for investors to file class-action suits when volatile (read: high-tech) stocks don't pay off, got $65,000, $36,600 and $23,000, respectively.
The largest contributor across the board was Electronic Data Systems. The $12.4 billion designer of computer systems for processing welfare and Medicaid applications lobbied Congress to allow private companies to administer social services in Texas - a radical plan supported by Governor George W. Bush that President Clinton ultimately rejected. Not coincidentally, Texas Republican Senators Phil Gramm and Kay Bailey Hutchison, who both favored the privatization, were the two top recipients of computer-company contributions - with $163,000 and $172,000, respectively.
Despite the huge increase in campaign spending, and the formation of efforts such as Silicon Valley's Technology Network political-action committee, tech still lags behind the rest of well-connected Washington in one crucial area: lobbying.
Virtually all the big computer companies have lobbying efforts under way, though many hire Washington firms instead keeping a stable of full-time lobbyists on staff.
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Lobbyist Head Count
- -IBM__24__Intel__12__EDS__12__Microsoft__6__Netscape__1__ In 1996, the high-tech companies that gave campaign contributions spent $19.9 million to hire lobbyists. IBM, which spent the most on lobbyists - $4.9 million - spent only about $88,600 on individual campaign contributions and belongs to no PACs and gave no soft money, the study said. Other high-tech companies that spent the most on lobbyists were EDS, Texas Instruments, Microsoft, Netscape, Intel, Oracle, and Sun Microsystems.
Although $19.9 million may sound like a lot of money to spend on lawyers, the high-tech industry still has a long way to go in lobbying spending compared to tobacco and telecom. Philip Morris alone spent $19.6 million on lobbyists in 1996, and the telecom industry spent a whopping $42 million that same year, Shecter said.
