News Corp. Gives Republicans $1 Million

News Corp. Gives Republicans $1 Million
By ERIC LICHTBLAU and BRIAN STELTER
copyright by The New york Times
Published: August 17, 2010
http://www.nytimes.com/2010/08/18/us/politics/18donate.html?_r=1&hp


WASHINGTON — With Republicans hoping to recapture a number of statehouses in November, the media conglomerate headed by Rupert Murdoch is inserting itself into the races in bold fashion with a $1 million donation to the Republican Governors Association.

The contribution from Mr. Murdoch’s News Corporation, which owns Fox News, The Wall Street Journal, The New York Post and other news outlets, is one of the biggest ever given by a media organization, campaign finance experts said.

Democrats seized on the donation as evidence of the News Corporation’s conservative leanings, with Media Matters for America, a liberal group that has tangled often with the company, calling it “an appendage of the Republican Party.”

But News Corporation executives said the political priorities at the Republican Governors Association and its emphasis on low taxes and economic growth dovetailed with the company’s own concerns. “News Corp. has always believed in the power of free markets, and organizations like the R.G.A., which have a pro-business agenda, support our priorities at this most critical time for our economy,” said Jack Horner, a company spokesman.

Mr. Horner said that the company’s corporate side made the donation with no involvement by its news operation and that the gift would not have any impact on newsgathering operations. “There is a strict wall between business and editorial,” he added.

Officials at the governors’ association did not respond to requests for comment. The contribution, first reported by Bloomberg News, was made in June and is included in the Republican group’s most recent second-quarter filings.

Over all, the group received $19 million in donations during the quarter, far outpacing the Democratic Governors Association in a campaign when 37 governors’ seats are up for grabs, according to the Center for Responsive Politics, a private research group.

The News Corporation’s contribution was one of three donations of $1 million or more that the Republican group received in the last quarter, with the Michigan Chamber of Commerce donating $1.48 million and David Koch, executive vice president of Koch Industries, giving $1 million.

The biggest donation to the Democratic governors’ group was $500,000 from the American Federation of State, County and Municipal Employees.

Democrats now hold 26 governors’ seats, but political analysts say that Republicans appear poised to pick up more in November even in states long dominated by Democrats. At stake is not only control of states’ executive branches, but also influence over the redrawing of Congressional district lines next year — a once-in-a-decade process.

The News Corporation and its political action committee, News America Holdings, have given donations over the years to both Democratic and Republican candidates and causes, but never in the amount approaching the June donation, records show.

As a “527” political association, the Republican governors’ group can raise unlimited amounts of money from corporate donors and individuals, and it was free to do so even before the Supreme Court’s landmark ruling this year in the Citizens United case. That ruling freed corporations to make direct political expenditures to influence campaigns, for instance, through media buys and commercials.

Dave Levinthal, a spokesman for the Center for Responsive Politics, said seven-figure donations from anyone to “527” associations were unusual, but a $1 million donation from a news organization was particularly rare.

The donation generated significant buzz in Washington on Tuesday. Much of it focused on Fox News, whose stable of highly rated, conservative hosts have made it the frequent target of liberals, who accuse the network of blurring the line between news and opinion.

In an e-mail to reporters, the Democratic National Committee said the donation showed that Fox News’ well-known mantra, “Fair and Balanced,” had been “rendered utterly meaningless.” Hari Sevugan, a D.N.C. spokesman, added that Fox News’ political coverage “should have a disclaimer for what it truly is — partisan propaganda.”

While many news organizations reported Tuesday on the $1 million gift, a late-afternoon search of Fox News’ Web site produced no mention of it.

Eric Lichtblau reported from Washington, and Brian Stelter from New York.