Campaign Finance

1
Campaign Finance

• 13 September 2004

2
Campaign Costs

• House
• 677,000 average
• California District 27, 2000  James Rogan (R)
  spent 5,729,108 and lost to Adam Schiff (D), who
  spent 4,026,506
• Senate
• 3.6 million average
• In the 2000, Hillary Clinton (D) spent 26.3
  million to defeat Representative Rick Lazio (R)
  who spent 33.1 million

3
Incumbency Advantage

• In 2000, 392 of 399 House incumbents (gt98) were
  reelected
• 23 of 28 Senate incumbents were reelected (gt82)
• House incumbents had a more than 4-to-1 financial
  advantage over challengers, with an 8-1 advantage
  in PAC money
• Senate incumbents enjoyed more than a 2-to-1
  advantage
• The Frank

4
Incumbent Fundraising

• Time consuming
• Necessary to scare off challengers

5
Background

• Buckley v Valeo (1976)
• Cant limit spending (free speech)
• Can limit contributions
• Can require disclosure
• Bipartisan Campaign Finance Reform Act (BCRA)
• Also called McCain/Feingold
• Attempt to limit soft money

6
Individual Contribution Limits

• Up to 2,000 per candidate per election (indexed
  for inflation)
• But no more than 37,500
• Up to 25,000 per year to a national political
  party
• Up to 10,000 to each state or local party
  committee
• Up to 5,000 per year to a PAC
• But no more than 37,500
• Unlimited independent expenses
• Total Up to 95,000 per two-year election cycle

7
Party Committees

• National Committees
• Congressional Committees
• State Party Committees
• Can give up to 5,000 per House candidate per
  election
• National Committees
• Senatorial Committees
• Can give a combined total of up to 17,500 to
  each Senate candidate
• State Committees
• Can give up to 5,000 to each Senate candidate

8
Interest Groups (including corporations and
labor unions)

• Can not give money directly
• Independent expenditures are OK

9
Political Action Committees (PACs)

• PACs can accept money from corporations, labor
  unions, and other interest groups
• PACs can give up to 5,000 per candidate and up
  to 15,000 per party