Big money flows to Virginia race for governor

Out-of-state money is pouring into the Virginia governor's race, with Bob McDonnell the biggest beneficiary -- landing a $1 million check from the Republican Governors Association.

Terry McAuliffe, one of three candidates for the Democratic nomination, picked up $475,000 from two unions. Most of the cash -- $425,000 -- came from the American Federation of State, County and Municipal Employees. The International Association of Firefighters steered $50,000 to McAuliffe.

The burst of out-state-money, reported yesterday by the Virginia Public Access Project, is another reminder of the national stakes in the Virginia contest, campaign-finance experts said.

Virginia and New Jersey are the only states choosing governors in the first key elections after President Barack Obama's victory in November. Democrats carried both states four years ago.

"Rightly or wrongly, it will be seen as a referendum on both parties and the Obama administration," said Sheila Krumholz, executive director of the Center for Responsive Politics.

The Democratic Governors Association donated $100,000 to a new Virginia-based political-action committee, Common Sense Virginia. The PAC will use the money to assist the Democratic nominee chosen in the June 9 primary.

"Everyone knows this is an important race with national implications," said Tucker Martin, McDonnell's press secretary.

McAuliffe spokeswoman Elisabeth Smith said her candidate is grateful for labor backing and that big-dollar contributions are vital for Democrats, who have held Virginia's governorship since 2001, to be competitive.

The dollars tracked by the Virginia Public Access Project, an online watchdog of money in politics, originated with so-called 527 committees, named for the section of the federal tax code governing fundraising for activities such as voter mobilization and issue advocacy.

The Virginia law on reporting by such organizations was strengthened in 2006 after McDonnell's campaign for attorney general drew heavy criticism from Democrats for accepting $2 million from a 527 group, the Republican State Leadership Committee, which did not have to disclose the source of its funds.

McDonnell was narrowly elected attorney general in 2005, defeating Democrat R. Creigh Deeds by 360 votes.

Deeds, a state senator from Bath County, is seeking his party's nomination to run for governor, as is former Del. Brian J. Moran of Alexandria.

Virginia law now requires a 527 committee to register with the State Board of Elections as soon as it gives $10,000 or more to a Virginia candidate or political organization. The 527 committee also must disclose the sources of its money.

The Republican Governors Association received dollars from an array of sources, including PACs for such major corporations as Federal Express, Unisys, Reynolds American and UST, an arm of Richmond-based tobacco giant Philip Morris USA.

Contact Tyler Whitley at (804) 649-6780 or .

Contact Jeff E. Schapiro at (804) 649-6814 or .