9.29.2006

Walmart Political Contributions:

Over the past four election cycles, the giant retailer has been steadily boosting its contributions to state and local politicians, just as such politicians have been taking on bigger roles in deciding key issues concerning the company's operations, from the local minimum wage and required health-care benefits to zoning for big-box retailers.
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Wal-Mart gave a total of $326,875 in the 2000 election cycle, $431,017 in 2002, and $857,179 in 2004, according to research by the Institute on Money in State Politics, a nonpartisan, nonprofit research organization based in Helena, Mont. For the 2006 election cycle, the company has given $644,655 so far and seems to be on track to hit a record for political contributions.
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Adding in money for ballot initiatives and other local issues brings the total of Wal-Mart state giving so far this cycle to $1.25 million.
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Wal-Mart says it's become necessary to step up its contributions. For two decades it largely shunned politics because company founder Sam Walton didn't believe such activities benefited his customers. In fact, Wal-Mart didn't hire any lobbyists or establish any political action committees until 1998.
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Today, Schwarzenegger has at least two more bills sitting on his desk that are targeted at Wal-Mart. One of the bills would require big-box retailers to conduct an economic impact report before opening large stores. Another would force large retailers to pay the legal fees of communities that win cases challenging zoning ordinances in court. Wal-Mart has sued towns with such ordinances in the past—Fresno and Turlock have won their cases and other towns have lost. But the huge legal bills that piled up during the court fights have scared other municipalities.

"The question now is: Will the governor succumb to the financial influence that Wal-Mart and the Walton family are trying to exert over his administration with their multimillion-dollar donations, and neglect a cry for help from small cities, small businesses, and workers?" asks California state Senator Richard Alarcon, who authored the latest bills.

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