McAuliffe For Governor

“This is your campaign. And I’m counting on you to help communicate our vision of economic opportunity and job creation across the Commonwealth of Virginia. But to do that, you need to know the facts.”

-- Terry McAuliffe

What kind of experience does Terry have that qualifies him to be Governor?

Terry’s political experience started with his father, Jack McAuliffe, who taught Terry from a very young age that Democrats fight for working men and women. When Terry was 14 years old, he started his own business – McAuliffe Driveway Maintenance – to help pay for college.

Terry spent much of his life turning around struggling businesses, starting new companies, and creating jobs. When he was just 30 years old, Terry was elected one of the youngest chairmen of a federally-chartered bank that was on the brink of failure – and he made the tough decisions that helped turn it around. He ran one of the top 100 home-building companies in the nation, building thousands of homes each year and putting people to work in good jobs.

Terry has been volunteering his time for Democratic causes and candidates for over 30 years. Like former Democratic Party of Virginia Chairman Mark Warner and current Democratic National Committee Chairman Tim Kaine, Terry has fought hard to advocate for working families across the country and Democratic Party principles. Under Terry’s leadership, the DNC underwent a long-term rebuilding process that ultimately helped Democrats take control of Congress in 2006 and the White House in 2008. Former Gore campaign chairwoman Donna Brazile noted that, “Terry has put the party in a strong strategic position.”

Bringing a business approach to manage the DNC, Terry brought the party out of debt for the first time in modern history. His successor, Howard Dean, said, “I am a big fan of Terry McAuliffe. Everything we do today stands on the shoulders of his fundraising efforts.”

Under Terry’s tenure, the DNC invested in a 175+ million person voter file used by Barack Obama’s campaign in Virginia that helped him carry the Commonwealth in the 2008 Presidential race. He increased the DNC’s email list from 70,000 to 3.8 million and grew the small donor base sevenfold to 2.7 million.

In the wake of voter suppression in Florida during the 2000 election, the DNC founded the Voting Rights Institute in order to take action against intimidation, election errors, and disenfranchisement. Terry restructured the Presidential nominating calendar, moving states like South Carolina, New Mexico and Arizona earlier in order to give African Americans and Latinos more influence in the primary process. Terry founded the DNC’s Women’s Vote Center in order to increase turnout in elections and establish a network of women from all backgrounds.

Is it true that Terry’s created thousands of jobs?

Yes. For example, Terry served as owner and Chairman of American Heritage Homes, one of the top 100 home-building companies in the nation. Under Terry’s leadership, the company expanded significantly and put thousands of people to work in good-paying jobs. Terry began creating jobs when he founded a driveway maintenance company just 14 years at old, and he has founded dozens more companies over the years.

Has Terry acted responsibly using personal associations in his business ventures?

Yes. Successful venture capitalists invariably use personal connections in order learn about new investments and structure deals that are mutually beneficial to the parties involved. And Terry’s had success as an entrepreneur.

As governor, Terry will use his personal contacts in order to bring businesses to Virginia and create jobs. Virginia has a lot to offer businesses that can bring jobs to the Commonwealth - a low tax base, low energy costs, and a world-class public education system. As someone with extensive business experience, Terry is uniquely qualified to sell large companies on Virginia’s business-friendly climate and explain – in terms they can understand – the advantages of locating their operations in our Commonwealth. The fact that Terry knows so many business leaders personally will only enhance his ability to create jobs.

Did Terry make money at the expense of union retirees when he went in on a special land deal with IBEW union bosses? After all, the union was sued by its members for investing in the project, it was forced to compensate the pension fund $5 million, and Terry walked away with millions despite only investing $100.

No. When Terry partnered with the IBEW pension fund to develop real estate, both Terry and the IBEW’s pension fund made money off the deal. The projects made a return of about 10.5 percent. Other large pension funds made a median return of 10.9 percent on their investments in the early 1990s. [Brewer, Beemer, Kuehnhackl & Koon, 12/12/97; Associated Press, 9/30/99]

In fact, the agreement between Terry and the IBEW stipulated that the IBEW received a "preferred return" on the invested capital, meaning that Terry would not make any money on the deal until IBEW made its money back, plus a return of almost ten percent. Any money made after that was subsequently split 50/50. Under Florida law, their partnership had to be established by paying a nominal fee of $100. Terry sourced the deal and brought it to IBEW for its consideration. IBEW then negotiated a partnership agreement where Terry would be the managing partner, IBEW would be the capital partner - a very common arrangement.

This incident was investigated by the Department of Labor’s Inspector General. The investigation focused on how the union structured its investments. Terry cooperated with the investigation, which never targeted him or accused him of doing anything wrong. [Pensions and Investments, 11/12/01]

This incident came to light as a result of Terry’s vociferous criticisms of George W. Bush’s shady business dealings and legislative agenda when Terry served as DNC Chairman. As the National Review’s Byron York wrote, Terry was “perhaps the most aggressive and public critic of George W. Bush's record in business... Much of this might have escaped public notice had McAuliffe not chosen to attack George W. Bush on the issue of business ethics." [National Review, 9/16/02]

Did Terry get a sweetheart deal when he turned a $100,000 stock investment in Global Crossing -- a company that suffered an Enron-style collapse after McAuliffe sold his stock -- into a multi-million dollar profit?

No. Terry was a venture investor in a company that built an undersea cable to carry Internet service to Europe. Today that company serves many Fortune 500 firms. Terry had no management role in the company and closed out his investment years before there were financial problems at the company.

Republicans in Congress investigated this and did not find that Terry did anything wrong. CNN Reporter Howard Kurtz noted that, "… in fairness to Terry McAuliffe, he sold his stock three years ago before there was any hint of trouble with the company." [CNN, “Reliable Sources,” 3/02/02]

Terry’s investment grew rapidly during the dot com boom because the company correctly foresaw that internet would be carried by undersea cables, not satellites. Venture capital investments are extremely risky and usually fail; when they succeed, they often yield substantial gains, which is what happened in this case.

Even then-RNC Chair Marc Racicot said there was nothing to this charge: “I know of absolutely nothing that he did wrong. You know, that's one of the things that causes me pause about our political affairs these days, is that by insinuation or some kind of innuendo, just because you want to win on a given day, you suggest things that are not supported by the evidence or that you don't believe to be true. What I know is what Terry McAuliffe has said. And I accept it at face value in the way that he's offered it. And I have no further questions.” [CNN, 1/30/02]

Did Terry engage an illegal activity funneling money into the reelection campaign of the former Teamsters' President, Ron Carey, in exchange for contributions to Democrats?

No. Time and time again, House and Senate Republicans, the RNC, and right-wing media have unsuccessfully tried to smear Terry by making false statements about his involvement. [RNC Press Release, PR Newswire, 1/08/00; Washington Times, David Limbaugh Commentary, 2/02/01; Detroit News, 3/24/00; Chicago Sun-Times, Novak Column, 2/05/01]

The truth is that this matter has been thoroughly investigated by both the Justice Department and Congress back in the 1990s. Terry was never a target of the investigation. He fully cooperated with investigators, was interviewed by federal prosecutors and even gave a deposition to Senate investigators. [Washington Times, 9/25/97]

Has Terry ever lobbied?

No. In the 1980s and early 90s, Terry ran a law firm that also had a lobbying unit. At the firm, Terry focused on business development and did not do any direct lobbying himself. Terry has a long history of standing up to corporate corruption, including throwing Enron lobbyists out of his office at the DNC in 2001.

Terry strongly believes in accountability and corporate responsibility. That is why he is the only candidate in this race, Democrat or Republican, to pledge not to take any corporate or corporate PAC donations from companies that have received taxpayer 'TARP' money. He has also called for a ban on all gifts and trips from lobbyists to lawmakers.

Some have accused Terry of raising money from a “Republican lobbying firm.” BGR is a bipartisan firm. Terry held a fundraiser at BGR in March. Out of 11 event chairs, 10 were Democrats, including Terry's longtime friend Jonathan Mantz, who has spent his career fighting for Democratic candidates and causes. Mantz was the principal host of the event. Throughout his career in Democratic politics, Terry has built relationships with many people, both Democrat and Republican. This ability to reach across the aisle is part of what will make Terry an effective governor.

How strong was Terry's support for Barack Obama?

Terry is intensely loyal, and he fought hard for Hillary Clinton in the Democratic primaries. Terry has been good friends of both Bill and Hillary Clinton for a long time. During the primary, Terry chaired her presidential campaign. He was pro-Hillary, not anti-Obama.

As soon as the primary fight ended, Terry led the charge for Hillary Clinton supporters to get behind Barack Obama. Before Hillary and Obama went to Unity, NH, Terry emceed an event with Hillary and Obama to help bring the party together. He toured 30 localities in Virginia doing events for Obama – canvass kick-offs, Get-Out-the-Vote rallies, and fundraisers. While many pundits speculated that Democrats would have a hard time unifying behind Obama’s candidacy after the long primary, exit polls show he won 92% of Democrats here in Virginia.

Terry is thrilled that Barack Obama was elected president and supports his efforts to turn this economy around. That is what he wants to do for Virginia.

How long has Terry lived in Virginia?

Nearly 20 years. Like many folks across the Commonwealth who have chosen to make Virginia their home--including Mark Warner, Tim Kaine, Jim Webb, and Brian Moran--Terry and his wife Dorothy chose Virginia as their home because of the great opportunities Virginia has to offer. They live with their five children in Fairfax County, where they attend St. Luke Catholic Church. Terry decided to run for Governor because he wants Virginia to continue to be a welcoming home full of opportunity for both Virginia natives and new residents.

Has Terry been involved in Virginia politics?

As Chairman of the Democratic National Committee, Terry invested unprecedented resources in Virginia Democrats’ grassroots political infrastructure. In 2001, when Mark Warner ran for Governor, the DNC gave $1.5 million to support Virginia Democrats up and down the ticket. In 2005, when Tim Kaine ran for governor, the DNC gave $5 million to Virginia Democrats – which, at the time, was the single largest donation from the national party of its kind.

How does Terry plan to keep the grassroots engaged in this election?

In 2008, Democrats had a great year because we had an unprecedented level of grassroots enthusiasm. It is critical that we continue the successes Democrats achieved here in Virginia. To that end, Terry is establishing the most comprehensive grassroots organization in the history of races for Virginia Governor. We have hired 40 field organizers, many of whom worked for Barack Obama’s campaign in 2008. Terry is working to bring thousands of volunteers into his campaign, some who are engaging in the political process for the very first time.

And Terry knows that if we want to put people back to work, we need all hands on deck. That’s why Terry wants to support Democratic candidates up and down the ballot. In the general election, regardless of whether he is the nominee, Terry will use the grassroots campaign we are building to assist other candidates.

In fact, Terry has already lent his campaign to Sharon Bulova for Chair of the Fairfax County Board of Supervisors and Ilryong Moon for Braddock District Supervisor. In extremely close races, Terry opened up his campaign headquarters, sent field organizers to staff polling locations, filled over 100 volunteer shifts, hung 2000 door hangers, and made over 22,000 phone calls.

The close results of these special elections show why it is so important for everyone to get involved and to engage new people in the process. That is how Terry’s campaign won Congressman Gerry Connolly’s St. Patrick’s Day Straw Poll, when he brought new people into the process and won “overwhelmingly,” according to the Washington Post. At the Straw Poll, Terry used his text messaging program to notify his grassroots supporters to hand over a green carnation to other Democrats in the room as a gesture of unity.

What's Terry's vision for Virginia?

For months, Terry has been traveling across Virginia – and everywhere he goes, he hears the same thing – we need to create jobs and protect our quality of life. We are facing the worst recession since the Great Depression, and that is why Terry will make growing Virginia’s economy his number one priority. Throughout his life, Terry has tackled big projects and turned struggling businesses into successful companies. That is the type of management and executive experience that Terry will bring to the office of Governor. Terry knows that Virginia’s long-term prosperity depends on the tough choices we make now. He will tackle our challenges by making smart investments in our workforce, in our transportation system, and in high-tech and high-growth industries like renewable energy. These investments will create not just any job, but good jobs with good pay and benefits.

Terry understands that there is no such thing as a Democratic job or a Republican job – we simply need to bring people together to create good jobs. As Governor, Terry will continue the bipartisan, problem-solving approach of Governors Warner and Kaine and listen to the ideas of Virginians from all walks of life. That is what Terry is doing on the campaign trail, and that is what he will continue to do as Governor.

Terry believes that our leaders must be held accountable for their policies – and his Business Plan for Virginia is his blueprint for creating, attracting, and keeping good jobs with benefits for every Virginia family. Many of the ideas in Terry’s Business Plan came from Virginians whom Terry has met all across the Commonwealth. As Governor, Terry will continue to bring new ideas to Richmond. Terry knows that the only way we can put people back to work is by bringing every idea to the table.