Campaign Finance

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Campaign Finance
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1974 Campaign Finance Reform

• 1972 Watergate and illegal donations from
  corporation, unions, and individuals catalyzed
  change
• Brought about the 1974 federal campaign reform
  law and Federal Election Commission (FEC)

opensecrets.org
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Buckley v. Valeo (1976)

• The Supreme Court held that limitations on
  donations to candidates were constitutional
  because of the compelling state interest to
  prevent corruption or the appearance of
  corruption
• Spending limits or caps on the amount a candidate
  could spend are an unconstitutional abridgement
  of free speech under the First Amendment

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Buckley v. Valeo (1976)

• Speech that expressly advocates the election or
  the defeat of a candidate can be regulated
• Organizations could spend unregulated soft
  money for a variety of activities, including
  issue advertising
• Any advertising that expressly stops short of
  advocating the election or defeat of a candidate
  does not have legal limits

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Hard Money

• Money contributed directly to a candidate or a
  political party
• This money is regulated by law and monitored by
  the Federal Election Committee

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Table of Donation Limits
To Each Candidate To National Party Committee To state, district or local party To any other political committee
Individual 2500 (Inflation odd years) 30,400 10,000 5.000
National Party Committee 5,000 No limit No limit 5,000
State, district and local party 5,000 No limit No limit 5,000
PAC multicandidate 5,000 15,000 5,000 5,000
PAC not multicandidate 2,400 50 contributors 30,400 Registered 6 months 10,000 5 or more candidates 5,000 Federal office
Authorized Campaign Committee 2,000 Federal candidate No limit No more than 2000 No limit Another candidate 5,000
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Political Action Committees

• A political committee that raises and spends
  limited hard money advocating the election or
  the defeat of a candidate
• Organizations also can be established to raise
  soft money which only is used for issue
  advocacy
• Collect money from the groups employees or
  members and make contributions to candidates and
  parties
• PACs are required to register with the FEC
  within 10 days of their formation

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Soft Money

• Money contributed to organizations and committees
  other than candidate campaigns and political
  parties (except where legal to state and local
  parties for use solely in state and local races)

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Bipartisan Campaign Finance Reform Act

• Banned soft money contributions to national
  parties from corporations and unions after the
  2002 election
• Raised the limit on individual donations to
  2,000 per candidate per election

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Bipartisan Campaign Finance Reform Act (McCain
Feingold)

• Sharply restricted independent expenditures
• Corporations, unions, trade associations,
  nonprofit organizations cannot use their own
  money for an advertisement referring to a
  candidate by name 30 days before a primary and 60
  days before a general election

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501 Groups

• Operate for religious, charitable, scientific or
  educational purposes
• Non-profit and tax exempt
• They are not supposed to engage in political
  activities except for voter registration
• Social welfare, labor, agricultural, business
  leagues, chambers of commerce etc. can engage in
  political activities as long as it is not their
  primary purpose

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Expansion of Soft Money

• The Federal Election Commission has approved the
  spending of soft money on non-federal party
  building, administrative costs, voter
  registration, get out the vote, and issue
  advertising
• Cannot use the terms elect, send, vote against or
  defeatit is legal to use the names of the
  candidates

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Soft Money

• Legal John Smith is an honest man who stands up
  for the people. John Doe is a chronic liar who
  is advocating cutting Social Security
• Call John Doe and tell him who you feel about his
  candidacy

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Citizens United vs. Federal Election Commission

• Remove limits on independent campaign
  expenditures by corporations and labor unions
• Removed restrictions on calendar dates on
  campaign commercials
• Congress still can require corporations and
  unions to disclose their spending and to run
  disclaimers with their advertisements
  (Legislation is pending)

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SUPERPACS

• The 2010 election marked the rise of a new
  political committee, dubbed the "super PAC," and
  officially known as "independent-expenditure only
  committees," which can raise unlimited sums from
  corporations, unions and other groups, as well as
  individuals.
• Super PACs are required to disclose their donors,
  just like traditional PACs. However, many exploit
  a technicality in the filing requirements in
  order to postpone disclosure until well after the
  elections they participate in.

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SUPERPACS

• Restore Our Future Mitt Romney Winning Our
  Future Newt Gingrich Endorse Liberty Ron Paul
  Red, White, and Blue Rick Santorum
  Priorities USA Action Barack Obama
• Comedians Stephen Colbert and Jon Stewart have
  created America for a Better Tomorrow
  Tomorrow http//www.colbertsuperpac.com/

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SUPERPACS

• Many of the Super PACs are run by former
  employees of the candidate it supported, and each
  has attracted money from that candidate's
  associates
• Super Pacs use soft money, or they do not have a
  limit to how much money they donate, unlike the
  traditional PAC's which use hard money meaning
  that they are required under the 503(c)(3) tax,
  to pay a basic tax and reduces what they donate
  to.

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Public Financing - Primaries

• At the Federal level it is limited to subsidies
  for Presidential candidates
• Primary Candidates qualify by raising 5000
  each in 20 states
• Federal government matches dollar for dollar for
  every contribution to a campaign up to 250 per
  contribution
• Candidates agree to limit their spending
  according to a statutory formula

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Public Financing - Primaries

• 2008 Primaries Clinton, Obama, Giuliani, Romney
  and Paul refused the matching funds Tancredo,
  and Edwards elected to take the financing
• By refusing to take the matching funds,
  candidates can spend as much money as they can
  raise privately
• McCain, Biden, Dodd,

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Public Financing General Election

• In addition to primary funding, the federal
  government subsidizes the presidential nominating
  conventions of the major parties
• Nominees are offered government funds for the
  general election
• If they accept, they agree not to raise or spend
  private funds or to spend more than 50,000 of
  their personal resources

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Public Financing

• The presidential public financing system is
  funded by a 3 tax check-off on the individual
  income tax return
• In 2006 fewer than 8 of taxpayers were directing
  money to that fund
• Barack Obama was the first Presidential candidate
  to refuse public money in the general campaign

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Campaign Finance - 2008

• John McCain - Individual contributions
  199,883,256 54 PAC contributions 1,422,709
  0 Candidate self-financing 0 0 Federal
  Funds 84,103,800 23 Other 81,670,905 22
• Barack Obama - Individual contributions
  656,610,810 89 PAC contributions 1,580 0
  Candidate self-financing 0 0 Federal Funds 0
  0 Other 85,041,518 11

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Campaign Financing 2008

• Largest Campaign Contributors
• Barack Obama
• University of California 1,069,898 (The
  organizations
• Goldman Sachs 884,907 did not donate
• Harvard University 732,150 the money, their
• Microsoft Corp 714,358 PACs did. The funds
• Google Inc 704,649 were collected from the
• John McCain institutions from
• Merrill Lynch 361,620 individuals.)
• Citigroup Inc 304,051
• Morgan Stanley 263,277
• Goldman Sachs 229,695
• JPMorgan Chase Co 216,057

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Campaign Spending (Oct 20th, 2008)

• Total Spending by Presidential Candidates
• Total Spent Year
• 20081 1,324.7
• 2004 717.9
• 2000 343.1
• 1996 239.9
• 1992 192.2
• 1988 210.7
• 1984 103.6
• 1980 92.3
• 1976 66.91

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Campaign Finance Proposals

• Raising the limits on hard money
• Favor/Against
• Limiting the use of soft money
• Favor/Against
• Limiting the use of personal candidate funds
• Favor/Against
• Require corporations and unions to disclose their
  spending

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OPEN SECRETS

• http//www.opensecrets.org/pacs/superpacs.php?cycl
  e2012
• www.maplight.org