Alaska News

At donor meeting, Charles Koch urges wealthy conservatives to do even more

DANA POINT, Calif. — The hundreds of wealthy conservatives gathered Saturday afternoon on the grand lawn of the St. Regis Monarch Beach had already poured millions into helping build a network of nonprofits that is now one of the most potent forces in American politics.

But Charles Koch, the billionaire industrialist who leads their effort, wanted them to do more.

"Will you stand with us to help save our country?" Koch implored, standing on a riser as he addressed the attentive crowd. "It can't be done without you and many, many others. So I pray that you will help us in this, I think, long-term, life-or-death struggle for our country."

That cause, Koch told them, was eliminating obstacles to create a "truly free society." He ticked off several pressing goals, such as reducing irresponsible government spending and doing away with corporate welfare, and lambasted big banks for their reliance on government bailouts.

Left unmentioned was the role the network will play in shaping the 2016 elections through its deeply funded political nonprofit groups, which do not have to disclose their donors. But the operation's might was clear in the array of prominent GOP figures who flocked to Dana Point for the network's summer conference, including five presidential candidates and a group of U.S. senators and governors.

"Your help over the last election cycle produced the numbers that we have today," Sen. Tim Scott, R-S.C., told attendees Saturday night during an alfresco dinner held on one of the resort's palm-tree-fringed lawns. "The major contributions and investments that you have made have played a major role."

Sen. Dan Sullivan, R-Alaska, a freshman who benefited from significant investment by Koch-backed groups in his race, said that "the group you helped us elect — and I'll speak for my class — it's a great group."

ADVERTISEMENT

Twelve years after Koch hosted a gathering of like-minded libertarians frustrated by the growth of government, the political and policy network he and his brother David Koch helped set in motion is entering its most ambitious phase yet, with plans to spend $889 million by the end of 2016.

Network-backed advocacy groups such as Americans for Prosperity are expanding their efforts to mobilize a national, data-driven ground operation. A super PAC supported by the Kochs and their allies plans to spend an estimated $100 million this cycle.

And the donor network the brothers created — now overseen by Freedom Partners, a Virginia-based business chamber — continues to swell. More than 450 wealthy contributors were expected to attend this weekend's conference, including 146 first-timers, officials said.

"We're really excited about the movement that you all are helping us to build," Kevin Gentry, a Koch Industries official who serves on the board of Freedom Partners, told the donors at the welcome reception. "Anything you can do to take up the reins of leadership and to expand our ranks and build this movement — it's the only way we're going to accomplish our goals."

For the first time, news organizations were allowed in to cover the traditionally private confab, on the condition that the donors present not be named without their permission. The gathering — which took over much of the Spanish-style oceanfront resort — had the feel of a lavishly produced wedding held under tight security.

Only registered attendees were allowed down the drive of the resort, and men with earpieces hovered in the front lobby. Out on the grand lawn, waiters circulated with trays of chilled Evian through the crowd of men in blue sports coats and women in cocktail dresses. There were crystal chandeliers dangling from tall metal poles and meticulous arrangements of votive candles and cacti on the tables.

The move toward more openness comes after the Kochs have been vilified on the left by critics including Senate Minority Leader Harry M. Reid, D-Nev., who spent much of the 2014 elections castigating them as "shadowy billionaires."

On Saturday, Charles Koch made a sly reference to his Democratic nemesis. Stumbling as he stepped up onto a riser, he quipped: "That was Harry Reid that was trying to trip me there. I didn't see him, but I know he's watching."

"No, he's got the bad eye. He's probably not even watching us anymore," Koch added, referring to the eye injury Reid sustained in an exercise accident.

While the Freedom Partners network is not expected to get behind a single candidate in the crowded GOP primary, it is helping elevate a select group through invitations to network-backed events.

Six Republican White House hopefuls were invited to this weekend's meeting: former Florida Gov. Jeb Bush, Sen. Ted Cruz (Texas), former Hewlett-Packard chief executive Carly Fiorina, Sen. Rand Paul (Ky.), Sen. Marco Rubio (Fla.) and Wisconsin Gov. Scott Walker. All committed to attend except for Paul, who said it conflicted with plans he had to campaign in Iowa.

Fiorina and Walker were the featured guests Saturday afternoon. Sitting on a stage on the resort lawn, they fielded questions separately from Politico's Mike Allen, seeking to demonstrate their conservative bona fides and win over the deep-pocketed contributors in the audience.

Walker, who received strong network backing in his fight with labor unions in Wisconsin, called himself "proud" to talk with the group.

"I wish the whole world could see what goes on," he said. "So many of you here aren't here because of any interest on behalf of your personal finances. You're here because you love America."

He compared the donors to people without "a lot of net worth" at tea party rallies "who care deeply about the future."

"David and Charles have harnessed that frustration and said, 'Instead of being angry about it, let's do something about it,' " he said.

For her part, Fiorina said the network was "supported by people of great accomplishment and intellect and patriotism."

ADVERTISEMENT

"These are people who care deeply about our nation," she said when asked why she came. "The foundation that the Koch brothers have built has invested in the power of ideas. They've invested in the power of ground games.

They've invested in the power of lifting people up."

Asked whether there is too much money in politics, Fiorina accused the mainstream media of fixating on conservative donors.

"I don't remember seeing big newspaper articles about George Soros or Tom Steyer," she said, referring to two huge benefactors of liberal causes. "The media doesn't like one kind of money but is okay with another kind of money."

That got some of the loudest applause of her half-hour appearance.

"Everyone has a right to speech," she added. "Any kind of speech costs money in this country."

ADVERTISEMENT