And now for the entertainment portion of our program--if you've got a recording of "Money Makes the World Go 'Round," by all means put it on!

I know we've had a lot of heavy reading already today, but Howie passed on this article from today's Wall Street Journal from Paraguay (it was originally forwarded, not surprisingly, by none other than David Sirota), and unfortunately it's one of those devil-in-the-details deals that would lose much of its, er, pungency if we attempted to summarize or paraphrase it.


Postcampaign Lobbying Thrives

Democrats Are Fêted
Ahead of Push
For Stricter Ethics Rules

By JEANNE CUMMINGS

WASHINGTON -- Democrats may be promising a clampdown on lobbyist freebies once they take control of Congress. But ahead of that push, party leaders are collecting lobbyists' checks, while Democratic staffers angle for jobs inside their well-appointed offices.Verizon Communications Inc. earlier this week sponsored a reception for newly elected Missouri Sen. Claire McCaskill. Illinois Democratic Rep. Melissa Bean was the beneficiary of a Tuesday night fund-raiser in the new Capitol Hill offices of the U.S. Chamber of Commerce. In addition to retiring Ms. Bean's debt, Chamber Political Director Bill Miller said the reception was a chance for corporations and lobbyists who didn't back her re-election to "meet her and see what a great representative she is."

Yesterday, Illinois Rep. Rahm Emanuel, mastermind of the Democrats' House takeover, accepted donations at Sonoma, a trendy Capitol Hill restaurant that features California cuisine to match the wine list, for his leadership committee, a type of account employed by ambitious lawmakers to make donations and curry favor with their colleagues.

Separately, Moses Mercado, the Democratic National Committee's deputy executive director, will soon be joining the Federalist Group, a lobbying group with close ties to the White House that went bipartisan about a year ago. Mr. Mercado "can help our clients deal with the new majority on Capitol Hill," says Wayne Berman, the Republican founder of the firm. Senior aides to incoming Senate Majority Leader Harry Reid also have been snatched up by lobbying shops, while Democratic lobbying firms, largely frozen out in Washington for years, are being courted by dozens of new potential clients.

Postelection fund-raising and political repositioning are hardly new in Washington. Candidates routinely use the last months of an election cycle to clear campaign debt. Lobbyists use the time to target freshmen who haven't staked out firm positions on the vast array of issues that come before Congress.

But the cycle turns especially intense when a major power shift is under way -- as is the case this year, for the first time since Republicans took Congress in 1994. For instance, receptions such as those being held this week, coinciding with the return of Congress for its lame-duck session, are prime networking opportunity for lobbying shops looking to hire Democrats, and aides looking to cash in on their new status.

Moreover, this year's packed schedule of fund-raisers and "debt reduction" events comes as incoming Democratic leaders tout a curb on the influence of lobbyists in Congress as a top priority when they take over next month.

Democrats are pushing to change lobbying rules after a string of scandals that tarnished Republican leaders and contributed to the defeat of several incumbents. Among the most notorious was that involving former lobbyist Jack Abramoff, who financed elaborate trips and provided free dinners to lawmakers and key aides to win help for his clients.

Incoming House Speaker Nancy Pelosi says she plans to make changes in House ethics rules the centerpiece agenda item for the new Congress. She successfully pressed House Democrats to cancel a planned caucus ski retreat in Vail, Colo., in January because it was likely to draw dozens of lobbyists and send a message that it was business as usual in Washington.

But the Pelosi rule changes will largely affect how lobbyists and lawmakers interact during the legislative calendar, when Congress is debating and voting on policy matters. They are aimed at curbing lobbyists' ability to lavish lawmakers with free trips, meals and gifts, such as skybox seats at major concerts and sporting events.

The new rules won't change the campaign-finance rules that dictate giving during the political season -- and that is what this week's events are all about.

"We will break the link between lobbyists and legislating," said Pelosi spokesman Brendan Daly. "People still need to raise money to run campaigns."

Fueling the frenzy is the Democrats' big victories in both the House and Senate, which caught some lobbyists by surprise and made them eager to make new friends. Campaign donations are recorded on an annual basis, so a check given now counts toward the 2005-2006 cycle. That gives lobbyists a window in which they can appear to be standing with a candidate at the time of the midterm victories. It also allows them to clear the way for yet another donation when the new Congress officially convenes in January.

It is akin to the business practice of "cleaning up the balance sheet before the quarter ends," says Anthony Corrado, a political-giving expert at Colby College, Waterville, Maine.

Some companies and lobbyists began shifting more donations to Democrats before Election Day. But Political Money Line, an organization that tracks political giving, reported last month that federal political action committees -- the kitties used by corporations and organizations to make donations -- held back $280 million in the final days of the midterm races. That is money now being tapped to welcome the old and new Democratic leaders back to town.

Burlington Northern Santa Fe Corp.'s RAILPAC this week reported postelection donations of $5,000 to the centrist New Democrat Coalition, $1,000 to newly elected Ohio Democratic Sen. Sherrod Brown and another $1,000 to incoming Colorado Democratic Rep. Ed Perlmutter.

To be sure, Republicans continue to raise cash too. Newly elected Tennessee Sen. Bob Corker is having his own "debt reduction" party this week. But for Democrats, whose minority status left them to struggle with postelection debt for the past 12 years, this is a prime opportunity to pay off debts from 2006, or to raise money for 2008.

Or to bask in their newly empowered status. Last night, incoming House Ways and Means Committee Chairman Charles Rangel hosted a Capitol Hill fund-raiser for his leadership committee. Mr. Rangel has never been seriously challenged. He was elected in 1970 with 87% of the vote and has won re-election by margins of more than 90 points ever since. But the New York congressman did shell out $370,000 to the House re-election committee to help his colleagues in last month's races. He now has a chance to recoup that investment -- and more.

Both the Democratic House re-election committee and Senate re-election committee have held events recently. The Senate reception Tuesday night was at the Acadiana Restaurant near Capitol Hill, featuring Louisiana cuisine. About a dozen senators attended, along with roughly 200 supporters and lobbyists, says an attendee.

Entry into the Senate and House committee fund-raisers ranged from $15,000 for those who want to be "co-hosts" to $2,500 for those content to be simply "guests." Invitations to both events were dispatched by e-mail to lobbying offices throughout the city. One Democratic lobbyist said the biggest change for him since the elections is, "I've got all these debt-reduction receptions to attend."