SAN DIMAS, Calif. -
A spokesperson for the corporate said will help it have greater control over contributions to candidates who support CUs.
Sheri Ledbetter, WesCorp's director of public affairs, will serve as chairman of the PAC. She told the Credit Union Journal the PAC formally launched Feb. 13, following five months of preparations. Just two days later, she said, funding had nearly reached the "modest goal" of $10,000 within one year.
"Next year is a presidential election year, which brings heightened political activity. We thought anything less than $10,000 would mean we would not be able to be active," she said.
Traditionally, only the state trade associations have had political action committees, Ledbetter explained. However, in recent years, some CUs have formed PACs. As a federally chartered CU, WesCorp cannot cut a check directly to a PAC or a candidate. Because of this, Ledbetter has been forced to personally solicit contributions from individuals to participate in fundraisers for credit union-friendly candidates.
"This has been somewhat of a messy process," she said. "Having a PAC takes the burden off everybody. We are encouraging direct deposit for those who wish to participate, which makes it easy on them and on me. Then, we will be able to make decisions quickly when and where to offer support."
All contributions are voluntary, Ledbetter emphasized. She said it is illegal for an employer to state an expected contribution amount.
Only salaried, exempt employees at WesCorp are eligible to participate.
WesCorp's employees were given examples of how contributions would be deducted each pay period. Ledbetter said a $100 annual donation equals $4.17 from a paycheck, $600 is $25 per pay period, and $3,000 is $125.
The Federal Election Commission oversees PACs and requires regular disclosures and filings. Ledbetter said WesCorp contracted with a Los Angeles law firm that specializes in PACs and FEC compliance.
"The firm does compliance for other credit union PACs in California. This is a highly regulated area, so we didn't want to do that in-house; we wanted to let the experts handle it."
Bipartisan PAC
According to Ledbetter, WesCorp's philosophy will be to support candidates who support credit unions. She said the PAC will be bipartisan and will target people with integrity. "Ethics is important," she noted.
Because WesCorp is federally chartered, it will lean more towards federal candidates, Ledbetter continued. "We will participate in state elections as well. California to start, but not exclusively."
Some have questioned if a WesCorp PAC will compete with other political action committees in the CU movement. Ledbetter said because the FEC regulates how much a PAC can give to a candidate, it is easy for a PAC to reach its dollar limit.
"So having more PACs allows credit unions to continue to contribute to, for example [U.S. Rep.] Ed Royce [R-Calif.], the author of CURIA. Having our own PAC enhances advocacy efforts within the movement. WesCorp has always placed a priority on advocacy and governmental relations, but the PAC is a way to formalize that."
