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Democrats Aren't Capitalizing on Republican Scandals (Update1)

By William Roberts and Jay Newton-Small

Jan. 19 (Bloomberg) -- Congressional Democrats, divided over changes to lobbying and ethics rules, have been slow to take advantage of the corruption scandals that have engulfed Republicans.

Representative David Obey, a Wisconsin Democrat, said many members of his party oppose tightening lobbying rules at a time when Democrats have a chance to regain a majority in Congress in the November elections.

``I've had a number of people who said, `Geez, you really want to do this, after the way Republicans have treated us?''' Obey said. ``Why would we guarantee them this stuff if we take control?''

Democrats risk squandering an opportunity to use the ethics issue for political advantage, said Marshall Wittmann, a senior fellow at the Democratic Leadership Council, a party organization, who previously advised Republicans. ``The leadership needs to get in and rattle some members and say, unless we take the initiative with bold and far-reaching proposals, the Republicans will steal this issue from us,'' he said.

Responding to lobbyist Jack Abramoff's Jan. 3 guilty plea in a federal corruption probe, Republicans on Jan. 17 announced plans to overhaul lobbying, including a ban on lawmakers accepting privately funded trips, free meals or valuable gifts. The Democrats followed yesterday with a set of proposals from House Minority Leader Nancy Pelosi and Senate Minority Leader Harry Reid that include an end to the Republican practice of pressuring corporations and trade groups to hire employees based on party affiliation.

`Culture of Corruption'

Representative Steny Hoyer of Maryland, the No. 2 House Democrat, said the Republicans, not lax regulations, were to blame for the ethics scandals. ``It is not the rules that are the issue, it's the character of the players that is the issue here,'' Hoyer said in an interview. ``That is what I want to focus on, the culture of corruption.''

Reported spending on federal lobbying has almost doubled in the last five years to $2.14 billion in 2004 from $1.47 billion in 1999, according to Political Moneyline, a Washington-based company that tracks political donations and lobbying. There are now more than 30,000 registered lobbyists in Washington.

``The real problem is the town is drowning in big money,'' Wittmann said.

The Abramoff investigation has ensnared former top aides to ex-House Majority Leader Tom DeLay, who is under indictment in Texas for alleged campaign-finance violations in a separate case. Representative Bob Ney, an Ohio Republican, said Jan. 16 he would step aside as chairman of the House Administration Committee because of allegations he received gifts from Abramoff.

Republicans' Margin

Republicans control the House by a margin of 231-202, with one independent, meaning Democrats need to gain a minimum of 15 of the chamber's 435 seats in this year's midterm elections to take control.

The prospect of a return to power -- and the political advantages that go with it -- may be a factor in the Democrats' divisions over a lobbying overhaul. As the Republicans showed when they took back the House in 1994, the majority party has a distinct advantage in fundraising from political action committees, said Kent Cooper, co-founder of Political Moneyline.

``Beginning immediately after Election Day 1994 going through Election Day 1996, business PACs gave $2 of every $3 to Republicans,'' Cooper said.

`Part of the System'

Frank Clemente, director of Public Citizen's Congress Watch, an advocacy group in Washington, said the Democrats may be counting on exploiting this funding source in the future. ``Democrats have been part of the system that has grown up in Washington over the last few decades,'' he said. ``They have yet to show they significantly want to change it.''

Republicans also are split over lobbying. Hastert acknowledged Jan. 17 that many of Republican lawmakers on a 90- minute conference call that day indicated that they weren't prepared to support their party's package.

Representative John Shadegg, an Arizona Republican who is one of three candidates to succeed DeLay as majority leader, said in a statement that a ban on privately funded travel is an ``overreaction that doesn't get to the root of the problem.'' DeLay permanently relinquished the leadership post on Jan. 7; elections to replace him will be held Feb. 2.

Former Representative Charlie Stenholm, a Texas Democrat, said Democrats lost control of the House in 1994 in circumstances similar to those now facing the Republicans. Stenholm said Democrats need to find a consensus on lobbying overhaul and then work with Republicans to pass legislation.

``We're divided,'' Stenholm said. ``If we are going to get back into the majority, we're going to have to find unity.''

To contact the reporter on this story: Jay Newton-Small in Washington at jnewtonsmall@bloomberg.net.

Last Updated: January 19, 2006 10:03 EST