What is The Independence Institute, and who pays them $2 million a year?

Phil Blocked Unblock Follow Following Mar 22, 2017

The Colorado legislature is discussing transportation spending, which means that we’ll be hearing from the Independence Institute again. Here’s a Colorado Springs Gazette editorial quoting them. There’s a Denver Post article criticizing an Institute policy proposal. But who are these guys, and why does anyone care?

The Independence Institute is a “libertarian think tank” founded in 1985. In Colorado, they’re mostly known for transportation policy. The Institute fiercely opposed FasTracks, the light rail system built in Denver, and argues against subsidies for public transportation. Or even the existence of public transportation, really. They oppose and criticize RTD for any reason they can imagine. This 2002 piece titled “Is RTD Passing Gas?” claims that light rail can produce more ozone than 8,000 cars. The author is Dennis Polhill, who founded Pavement Management Systems, a road management consulting firm. This editorial questions high-density developments around light rail stations, arguing that they “should be recognized as blighted areas.” Their “Fix Our Damn Roads” ballot measure asks for a 2% cut to the state budget, and spending that money on roads. Which means, of course, less money for education, prisons, Colorado Parks & Wildlife, etc. You get the idea. The Institute also publishes information related to school choice, gun control, and tax policy. Their current president, Jon Caldara, received a salary of $132,742 for FY 2015. The Institute’s Research Director, David Kopel, was paid $181,250. For 2015, their revenue was $2,716,740. This was similar to revenue for previous years, meaning the Institute consistently pulls in $2 mil a year.

Where does that money come from? The donor list is mostly companies that profit from cars (no wonder they hate RTD!), and from the suburban sprawl that cars make possible: oil companies, General Motors, housing developers, and construction companies. Phil Anschutz, son of an oilman, shrewd entrepreneur, and the richest man in Colorado, is a donor. Which helps explain why the Gazette cares what the Institute has to say: of course an Anschutz owned newspaper would give voice to an Anschutz supported lobbying organization.

In 2014, the Institute sued the FEC in Independence Institute v. Federal Election Commission. The Institute was running radio ads which were political in nature, but did not directly support a specific candidate. Since it was within sixty days of an election, they were required to reveal donors “who contributed an aggregate amount of $1,000 or more” to the ads. The Institute did not appreciate this level of transparency, and argued it was a violation of their 1st Amendment rights. They lost the case.

The Independence Institute is a 501(c)(3), meaning that contributions are tax deductible. So that’s what the Institute is: tax free lobbying for some of the richest companies in the state.