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MAJOR FINDINGS
Campaign money—not votes—is now the currency of our
democracy, determining who is able to run a viable campaign for
office, who usually wins, and who has the ear of elected officials.
This study examines federal contribution data for the 2002 and 2000
election cycles by zip code, side-by-side with 2000 U.S. Census
data on race and ethnicity. The unfortunate conclusion is that,
in a political system in which you have to pay to play, people of
color are largely excluded from the game. This report confirms similar
patterns to those detailed in our 1998 Color of Money report, which
examined federal campaign contributions made in the 1996 elections,
contrasted with 1990 U.S. Census data.
We examined more than $2 billion in individual contributions (of
more than $200, referred throughout the report as "$200+")
to federal candidates, parties, and Political Action Committees
(PACs), attributable to more than 25,000 zip codes nationwide over
the course of two election cycles, 2000 and 2002. We compared these
data with U.S. 2000 Census information on race, ethnicity and income
of people ages 18 and over by zip code.
While campaigns, parties, and PACs are required to provide details
on the names and addresses of donors of more than $200, they are
not required to list the race or ethnicity of these donors. Therefore,
to conduct this analysis, we use zip codes as the bridge between
information on campaign contributors and U.S. Census data on race
and ethnicity. This methodology has certain limitations. We are
not able to pinpoint precisely how much money comes from a particular
racial or ethnic group. Nevertheless, the geographical element is
informative, demonstrating a pattern of exclusion from the political
money game in neighborhoods where the population is predominantly
people of color.
It must be noted here that there are many complexities in determining
how to present information about racial and ethnic minority populations,
which are extremely diverse. While "black" and "Asian"
are considered racial categories by the U.S. Census, "Hispanic"
or "Latino" is not. Rather, "Hispanic" or "Latino"
refers to ethnicity, and people who are Hispanic or Latino can be
of any race. These issues are discussed more thoroughly in the methodology
section of this report.
We include statistics on wealth and poverty because these are a
significant determinant of campaign contributions. The neighborhoods
that contribute the most campaign cash are also largely predominantly
non-Hispanic white—but they are also among the nation's wealthiest.
This comes as no huge surprise—decades of discrimination against
people of color in this country has contributed to an uneven distribution
of wealth that favors the white majority.
OUR ANALYSIS SHOWS:
- Neighborhoods comprised mostly of people of color are severely
underrepresented in the campaign finance system. Given that money
typically determines who wins political races, this means that these
neighborhoods are effectively disenfranchised. Indeed, nine out
of ten individual federal campaign dollars come from majority non-Hispanic
white neighborhoods. Yet nearly one out of three adult Americans
is a person of color.
- Nearly ninety percent of the more than $2 billion contributed
by individuals in the two recent federal elections comes from zip
codes that are majority non-Hispanic white. In comparison, just
1.8% of campaign funds come from predominantly Latino zip codes,
2.8% from predominantly African American zip codes, and .6% from
predominantly Asian Pacific American neighborhoods.
- The top contributing zip code nationwide—10021, on Manhattan's
exclusive Upper East Side—is the source of $28.4 million for
federal campaigns in the 2002 and 2000 elections, and is home to
91,514 people ages 18 and over, 86% of whom are non-Hispanic white.
Nearly 40% of the households have incomes of $100,000 or more. This
one zip code contributes more campaign cash than:
-- the 532 zip codes nationwide with the largest percent of African
American residents, representing 7,654,609 people ages 18 and over,
84 times more people than live in 10021;
-- the 533 zip codes nationwide with the largest percent of Latino
residents, representing 9,355,643 people ages 18 and over, 102 times
the number of people writing the zip code "10021" on the
return flap of their envelopes;
-- the 167 zip codes nationwide with the largest percent of Asian
Pacific American population, representing 3,523,852 people ages
18 and over, 39 times the number of people who call 10021 home.
- The neighborhoods supplying most of the money for federal campaigns
in this country are also among the nation's wealthiest. Nearly one
out of two federal individual campaign dollars ($200+)—$991
million—comes from a person living in a wealthy zip code,
although just 12% of the adult population lives in these neighborhoods.
Meanwhile, just 5.9% of individual campaign dollars—$118.8
million—comes from poor neighborhoods, although nearly 9%
of adult Americans live in these communities. Another way to look
at it: individuals living in wealthy neighborhoods supply eight
dollars for every one dollar that people living in poor communities
give to federal campaigns.
SIZE OF CONTRIBUTIONS
- Contributions of $1,000 or more make up nearly $1.7 billion of
the individual contributions to federal campaigns ($200+). Predominantly
non- Hispanic white neighborhoods supplied about 90% of both large
contributions of $1,000 or more and of moderate contributions of
$200-$999.
TOP CONTRIBUTING STATES
- The top ten contributing states account for 59% of the individual
federal campaign cash contributed in the two elections; the top
20 states, 81%. In all of these states, the pattern is sustained
of most campaign cash coming from predominantly non-Hispanic white
wealthy neighborhoods.
- California supplies more individual campaign cash ($200+) to
federal campaigns than any other state—$273.1 million in the
2000 and 2002 election cycles. (Five California metropolitan areas
make the top 25 contributing metropolitan areas nationwide list1:
Los Angeles-Long Beach, San Francisco, San Jose, Orange County,
and San Diego, as well as several top contributing zip codes nationwide,
such as 90210, 90024, and 90067.) The state is immensely diverse.
Nearly one out of two of the residents are people of color (28%
of Californians are Latinos). Yet 85% of the cash comes from zip
codes that are predominantly non-Hispanic white, while these areas
contain 55% of the state's population. Two-thirds of the state's
campaign cash comes from wealthy neighborhoods, though just about
one out of four Californians live in these communities. In contrast,
just eight percent of contributions come from poor neighborhoods.
- New York ranks second in individual federal contributions ($200+)—$205.7
million, 2000 and 2002 election cycles combined. The state is home
to top contributing metropolitan areas New York City and Nassau-Suffolk,
NY, not to mention the generous Manhattan zip codes of 10021, 10022,
and 10028. Ninety-four percent of the campaign cash comes from predominantly
non-Hispanic white zip codes, although only 71% of the population
lives in these neighborhoods. Sixty-four percent of the state's
population is non-Hispanic white. Wealthy neighborhoods supply 78%
of the campaign cash, even though just 19% of New York state residents
live in these neighborhoods. Two percent of the campaign cash comes
from poor neighborhoods, home to 16% of the state's population.
- Texas ranks third in individual campaign contributions ($200+)—$152.1
million. Houston and Dallas are among the nation's top contributing
metropolitan areas. Fifty-six percent of the population is non-Hispanic
white. Yet 77 % of the campaign cash comes from predominantly non-Hispanic
white neighborhoods, home to 64% of the state's population. Nearly
half (43%) of the contributions come from wealthy neighborhoods,
even though just 10% of the state's population lives in these neighborhoods.
Six percent of the contributions come from poor communities, although
15% of the state's population lives in them.
- Florida is the source of $112.1 million in individual federal
contributions ($200+). Miami and West Palm Beach-Boca Raton make
the list of top contributing metropolitan areas nationwide, and
Palm Beach zip code 33480 is one of the nation's most generous to
federal campaigns. Eighty-three percent of the contributions come
from non-Hispanic white neighborhoods, where 79% of the state's
population resides. Sixty-eight percent of the state population
is non- Hispanic white. Wealthy neighborhoods supply 37% of the
campaign cash, though just seven percent of the state's population
lives in these areas. Five percent of the money comes from poor
communities, which are home to seven percent of the state's population.
- Eighty-nine percent of New Jersey's $92.3 million in individual
campaign contributions ($200+) in the 2000 and 2002 election cycles
come from majority non-Hispanic white neighborhoods, home to 78%
of the state's population. The state is home to Newark and Bergen-Passaic,
two of the country's top contributing metropolitan areas (both bedroom
suburbs of New York City). Nearly 70% of the state population is
non-Hispanic white. Three-fourths of the contributions come from
wealthy neighborhoods, although just one-third of the state's population
lives in these neighborhoods. Meanwhile, about two percent of contributions
come from poor neighborhoods, home to four percent of the state's
population.
TOP CONTRIBUTING METROPOLITAN AREAS
- More than half—$1.1 billion—of the individual campaign
contributions ($200+) made to federal campaigns in the 2000 and
2002 elections come from just twenty-five metropolitan areas. The
campaign money flows disproportionately from non-Hispanic white
and wealthy neighborhoods.
- New York City, where much of the nation's financial industry
is centered, tops the list for contributions, with $155.7 million
($200+) contributed by individuals to federal campaigns in the 2002
and 2000 elections. People of color make up more than half of the
population. But 93% of contributions come from non-Hispanic white
zip codes, where just half of the metropolitan area's population
lives. More than 84% of contributions come from wealthy neighborhoods,
although just 19% of the metropolitan area's population lives in
them. Just two percent of contributions come from poor neighborhoods,
although 28% of the metropolitan area's population lives in these
communities.
- The nation's capital, Washington, DC-MD-VA-WV, home to thousands
of lobbyists, ranks second for contributions with $141.8 million
in individual contributions ($200+) to federal campaigns 2000 and
2002 election cycles. One out of four of the metropolitan area’s
residents is African American, and another 17% are Latino, Asian,
or other racial/ethnic minorities. However, 85% of the metropolitan
area’s contributions come from majority non-Hispanic white
neighborhoods, home to 67% of the metopolitan area’s population.
Seventy percent comes from wealthy neighborhoods, where 44% of the
metropolitan area's population lives. Poor neighborhoods supply
just under three percent of the contributions.
- Los Angeles-Long Beach, the epicenter of the entertainment industry,
is the third top contributing metropolitan area, with $101.7 million
in individual contributions ($200+) to federal campaigns in the
2000 and 2002 election cycles. Sixty-five percent of Los Angeles'
adult residents are people of color, 40% of whom are Hispanic. Yet
85% of contributions come from majority non-Hispanic white neighborhoods,
home to 32% of the population. Wealthy neighborhoods donate 64%
of the contributions, although just 16% of the metropolitan area's
population lives in them.
- Chicago, home of the commodity markets, is the fourth top contributing
metropolitan area, with $80.2 million in individual contributions
($200+) to federal campaigns in the 2000 and 2002 election cycles.
Ninety-three percent of the money comes from majority non-Hispanic
white neighborhoods, home to 66% of the metropolitan area's population.
People of color account for nearly 40% of the metropolitan area's
population. Seventy-eight percent of the contributions comes from
wealthy neighborhoods, although just one out of four Chicagoans
lives in them. Only two percent of contributions come from poor
neighborhoods, home to nine percent of the metropolitan area's population.
- San Francisco is the fifth top contributing metropolitan area,
with $51.5 million in individual contributions ($200+) to federal
campaigns in the 2000 and 2002 election cycles. Nearly one out of
two San Franciscans is a person of color. Nevertheless, 82% of the
contributions come from majority non-Hispanic white neighborhoods,
home to 57% of the metropolitan area's population. Wealthy neighborhoods
supply 81% of the contributions, while 61% of the metropolitan area's
population lives in them.
TOP CONTRIBUTING ZIP CODES
- The neighborhoods providing the most campaign cash are among
the most exclusive nationwide—and are all predominantly non-Hispanic
white and wealthy. Unsurprisingly, all of these zip codes are in
metropolitan areas that are on the top contributing metro area list.
- On the Upper East Side of Manhattan, where top zip codes 10021
(#1, $28.4 million), 10022 (#2, $15.1 million), and 10028 (#7, $8.8
million) are located, family-sized apartments often sell for $10
million. Dwellers have the Guggenheim Museum as a neighbor, and
shopping at Bloomingdale’s, Calvin Klein, and Versace, is
all near by. Between 86% and 88% of the population is non-Hispanic
white and nearly 40% of households enjoy incomes of at least $100,000.
Big contributors from these zip codes include Republican donor Henry
Kravis of Kohlberg Kravis Roberts, a firm well known for leveraged
buyouts in the 1980s and Democratic donor Bernard Schwartz, CEO
of satellite communications company Loral Corporation.
- Lincoln Park (60614, #3, $12.7 million), in Chicago, is an upscale
lakeside neighborhood, home to many of the city's most popular restaurants.
Eighty-six percent of the population is non-Hispanic white, 35%
of the households enjoy incomes of $100,000 or more. Big donors
from the zip code include Democratic donor Fred Eychaner, president
of Newsweb Corporation.
- In Los Angeles, the famous zip code of Beverly Hills, 90210 (#10,
$8 million), where 85% of the population is non-Hispanic white and
55% of households enjoy incomes of $100,000 or more, makes the list.
So does 90024 (#4, $11.9 million), in Westwood. Sixty percent of
the population is non-Hispanic white, and one out of four households
has incomes of $100,000 or more. (The zip code also includes parts
of the UCLA campus, and it is likely the student population accounts
for the somewhat increased diversity and lower income level in this
zip code.) Century City, 90067 (#5, $11.2 million), is home to the
posh Century Plaza Hotel. Eighty-five percent of the population
is non-Hispanic white, and 40% of households have incomes of $100,000
or more. Big contributors from these zip codes include Universal
Studios patriarch and the late Democratic donor Lew R. Wasserman
(90210) and Gerald Parsky (90024), president of Aurora Capital Partners
and key operative for President George W. Bush's campaign in California.
- In Washington, DC, 20007 (#8, $8.4 million) is in the exclusive
northwest quadrant of the city. It includes sections of Georgetown
with its tony boutiques and posh restaurants, one of the most expensive
neighborhoods in the city. Eighty-three percent of the population
is non-Hispanic white, and nearly 40% of households have incomes
of $100,000 or greater. - Palm Beach, Florida, 33480 (#9, $8.4 million),
is oceanside and boasts expensive hotels such as The Four Seasons
and Hilton. Ninety-five percent of the population is non-Hispanic
white, and 45% of households have incomes of $100,000 or more. Wealthy
contributors include Republican donor Robert Rich, Sr., founder
of Rich Products Corporation, which produces a wide range of processed
food items.
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