SUMMARY
Lt. Gov. Scott McCallum, 49, is a former three-term state senator from Fond du Lac who was first elected lieutenant governor on Tommy Thompson’s ticket in 1986, and then reelected with Thompson in 1990, 1994 and 1998. McCallum has been mentioned as a candidate for governor in 2002.
McCallum had more than $744,000 to spend during the 1998 election cycle. After starting the four-year cycle on Jan. 1, 1995 with a cash balance of $220,829, McCallum’s campaign raised $523,560 through December 31, 1998 (Chart 1).
The lieutenant governor’s campaign spent $487,923 during the four-year election cycle, including $317,107 in election year 1998. His campaign had a healthy cash balance of $256,673 at the end of 1998.
Although McCallum’s fundraising pales compared to that of his boss, Gov. Tommy Thompson, the lieutenant governor is an aggressive fundraiser who uses birthday parties and other gimmicks to raise money. For instance, McCallum’s "Lieutenant Governor’s Club" solicits a $250 annual contribution to his campaign in order to become a member. This money-making gimmick suggests that these contributors have greater access and influence with McCallum than regular contributors.
McCallum’s fundraising success comes from the name recognition gained through a lengthy incumbency and even lengthier loyalty to the Republican Party. Like Thompson, McCallum taps much of his money from the business community. However, McCallum relies more heavily on small business. McCallum relates to them well for numerous reasons. He reminds them he was once a small business owner, and that he can sympathize with them about their problems. His newsletter "Capitol Insight," frequently praises the contributions and importance of small business to a healthy state economy. In addition, McCallum has nurtured this relationship by being involved on government commissions and studies on small business regulation and promotion, workplace child care, technology, education, state product exports and Year 2000 preparedness.
INDIVIDUAL CONTRIBUTIONS
McCallum raised $434,892 from 4,132 individual contributions from 1995-98 (Charts 2 and 3). Individual contributions of $100 or more provided 84 percent, or $363,637, of the funds raised from individuals. Individuals who gave less than $100 are McCallum’s second largest source of campaign funds. The lieutenant governor received $71,255, or 10 percent, of all of his funds in small contributions.
McCallum received the most money from individual contributions of $250. From 1995-98, he received 749 of these contributions, accounting for 44 percent - or $187,250 - of all money that he received from individuals. Hence, the Lieutenant Governor’s Club plays the same important fundraising role for McCallum that the "Governor’s Club," with its $500 contributors, plays for Thompson. In McCallum’s case, no other range of contributions, as seen in figure 3, even approached the $100,000 mark.
The lieutenant governor raised healthy sums of money from individuals in several major industry groups (Chart 4).Like Thompson, McCallum’s fund raising shows much the same pattern as Thompson’s: major contributions from the business community. Manufacturing and Distributing interests led the list at $58,031 followed by individuals employed in the Construction industry, who contributed $37,424.
However, a large percentage of McCallum’s base of support is different from those who contribute to Thompson’s campaign. Of the $363,637 in individual contributions of $100 or more, $116,686 (32 percent) came from individuals who did not give Thompson a large contribution in 1995-98.
More than 120 family groups and individuals have given at least $1,000 to McCallum’s 1998 campaign (Table 1).Three family groups have given more than $4,000 in total contributions. The maximum amount a single individual can give to a candidate for lieutenant governor is $10,000.
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McCallum’s geographic distribution of contributors was somewhat similar to Thompson’s. Both of them received the largest amount of their large individual contributions from residents of Milwaukee and its suburbs. This is likely because a larger proportion of wealthy individuals are in that area of the state, and many of Milwaukee’s middle class and wealthy suburbs tend to vote Republican in races for state offices. This region provided McCallum with at least 35 percent, or $127,958, of the money raised by the campaign from large individual contributors. Dane County residents were responsible for at least 10 percent, or $37,614, of McCallum’s large individual contributions, followed closely by Fond du Lac County, where he raised at least 9 percent, or $33,887 of his large individual contributions. Only a tiny fraction, about 1 percent, raised in large contributions came from outside Wisconsin.
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COMMITTEE CONTRIBUTIONS
Unlike Thompson, the lieutenant governor drew very little in PAC contributions (Table 2), probably because PACs are mostly associated with business and economic interests that understand that the governor is the chief architect of state aid, spending and budget decisions that affect them the most. Contributions from political action committees, party committees and other candidate committees accounted for just 3 percent, or $19,050, of the money raised by McCallum in the 1998 election cycle, as seen in Chart 1. In all, three committees have contributed $1,500 or more. Committees are allowed to contribute up to $12,939 during a campaign cycle.
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CAMPAIGN SPENDING
Spending by McCallum’s campaign committee reflects the advantages of incumbency and of running on a joint ticket with governor. The campaign was active and staffed throughout the three off-election years. McCallum’s campaign spent $487,923 from 1995-98. In 1995 and 1996 spending averaged about $30,000 a year. In 1997 spending more than tripled - to more than $108,000 - and in 1998 it nearly tripled again - to $317,107.
Like many campaigns for state office, McCallum used most of his money on fundraising, staff salaries and consultants. The bulk of spending for these items occurred in the election year itself. For instance, McCallum’s total 1995-98 spending for campaign staff and consultants was $122,909, but more than half of that - $62,205 - was spent in 1998 alone. Campaign finance reports indicate that McCallum’s only paid campaign employee was finance director Jody Trochlell, who was paid between $2,000 and $3,000 a month in 1998.
McCallum’s campaign spent $23,153 on three out-of-state consultants in 1998. Spending on campaign consultants began in May 1997 when the campaign retained Darold Bauer of the Bauer Group in Omaha, Nebraska. Bauer was paid $3,000 each month plus air fare, expenses and one percent of the gross revenue raised by the campaign. His total for eight months of consulting amounted to $34,486.
In all, McCallum spent $159,229 on fundraising activities from 1995-98. The vast majority of these expenses were in election year 1998 when he spent $84,229. His fundraising expenses included printing, postage, food, telemarketing and direct mail.
But unlike other political candidates for a statewide office, McCallum did not spend much on advertising and other expensive methods of candidate promotion. That’s probably because his place on a joint ticket with an incumbent governor allowed him the luxury of letting Thompson’s committee pick up most of the costly promotional and advertising costs for the ticket.
*Candidate committees, parties, and legislative campaign committees are excluded from this chart.
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