American Government American Government and Organizationand Organization

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Friday, 26 MarchFriday, 26 March

AnnouncementsAnnouncements

Next midterm will be scheduled for Next midterm will be scheduled for Wednesday, April 7Wednesday, April 7thth (not Friday April 9 (not Friday April 9thth))

The Campaign Finance The Campaign Finance Regulation SystemRegulation System

Campaign finance operates through two parallel Campaign finance operates through two parallel systems: systems:

Money going directly to candidates is subject to Money going directly to candidates is subject to limits on the size of contributions and full limits on the size of contributions and full disclosure of sources.disclosure of sources.

Presidential candidates who accept public funds Presidential candidates who accept public funds also must observe spending limits. But money also must observe spending limits. But money raised and spent outside of the candidates’ raised and spent outside of the candidates’ campaigns (soft money, issue advocacy) is campaigns (soft money, issue advocacy) is lightly regulated and not subject to limits.lightly regulated and not subject to limits.

DisclosureDisclosure

Federal Election CommissionFederal Election Commission Search Search

Top Hard Money PAC contributorsTop Hard Money PAC contributors

DemocratsDemocrats International Brotherhood of Electrical Workers International Brotherhood of Electrical Workers

$2,536,525$2,536,525 American Federation of St/Cnty/Mun Employees American Federation of St/Cnty/Mun Employees

$2,457,974$2,457,974 Teamsters Union $2,369,595Teamsters Union $2,369,595 Association of Trial Lawyers of America $2,301,000Association of Trial Lawyers of America $2,301,000

RepublicansRepublicans National Association of Realtors $2,026,698National Association of Realtors $2,026,698 National Auto Dealers Association $1,687,700National Auto Dealers Association $1,687,700 National Beer Wholesalers Association $1,478,500National Beer Wholesalers Association $1,478,500 National Rifle Association $1,333,074National Rifle Association $1,333,074

Top Soft Money ContributorsTop Soft Money Contributors

Am. Fed. St/Cnty/Mun Employees Am. Fed. St/Cnty/Mun Employees $5,949,000$5,949,000AT&T $4,398,920AT&T $4,398,920Service Employees Int. Union $4,288,096Service Employees Int. Union $4,288,096Bank of America $3,147,824Bank of America $3,147,824Philip Morris $2,383,453Philip Morris $2,383,453Microsoft $2,316,926Microsoft $2,316,926Enron $1,657,555Enron $1,657,555

Hard Money Raised Over TimeHard Money Raised Over Time

Bipartisan Campaign Reform Bipartisan Campaign Reform Act of 2002Act of 2002

Also know as McCain-Feingold (who sponsored the Also know as McCain-Feingold (who sponsored the legislation).legislation).First, the law prohibits raising and spending of “soft First, the law prohibits raising and spending of “soft money” for federal candidates.money” for federal candidates.Second, the law redefines what constitutes a campaign Second, the law redefines what constitutes a campaign advertisement, subject to the disclosure requirements advertisement, subject to the disclosure requirements and contribution limits and contribution source and contribution limits and contribution source restrictions of federal law. restrictions of federal law. Third, it raised the limits on "hard money." The limits on Third, it raised the limits on "hard money." The limits on how much an individual can give to a federal candidate how much an individual can give to a federal candidate rose to $2,000 an election, from $1,000, with subsequent rose to $2,000 an election, from $1,000, with subsequent increases allowed for inflation.increases allowed for inflation.Upheld by the Supreme Court in 2003.Upheld by the Supreme Court in 2003.

Regulation on Political AdsRegulation on Political Ads

Advocacy vs. issue adsAdvocacy vs. issue adsDoes it include magic words such as “vote for” “elect” or “vote Does it include magic words such as “vote for” “elect” or “vote against”?against”?Most “issue ads” avoid the words but are still advocacy adsMost “issue ads” avoid the words but are still advocacy ads"Last year, John McCain voted against solar and renewable energy. "Last year, John McCain voted against solar and renewable energy. That means more use of coal-burning plants that pollute our air. That means more use of coal-burning plants that pollute our air. Ohio Republicans care about clean air. So does Governor Bush. He Ohio Republicans care about clean air. So does Governor Bush. He led one of the first states in America to clamp down on old coal-led one of the first states in America to clamp down on old coal-burning electric power plants. Bush’s clean air laws will reduce air burning electric power plants. Bush’s clean air laws will reduce air pollution more than a quarter million tons a year. That’s like taking 5 pollution more than a quarter million tons a year. That’s like taking 5 million cars off the road. Governor Bush, leading, for each day million cars off the road. Governor Bush, leading, for each day dawns brighter."dawns brighter." The BCRA provides a better definition: Any broadcast The BCRA provides a better definition: Any broadcast advertisement that depicts a candidate within 30 days of a primary advertisement that depicts a candidate within 30 days of a primary election or 60 days of a general election, and is targeted to the election or 60 days of a general election, and is targeted to the voting constituency of that candidate, constitutes an electioneering voting constituency of that candidate, constitutes an electioneering communication, subject to federal campaign laws. communication, subject to federal campaign laws.

Negative AdvertisingNegative Advertising

Attack opponent’s character and platformAttack opponent’s character and platform

When outcome is uncertain, competitive electionWhen outcome is uncertain, competitive election

Challengers more likely to use negative ads than Challengers more likely to use negative ads than incumbents (backlash against incumbents)incumbents (backlash against incumbents)

Designed to not only to change preferences but Designed to not only to change preferences but also behavior by discouraging turnout (for also behavior by discouraging turnout (for supporters of opponent)supporters of opponent)

GOP attack adsGOP attack ads

John Kerry, John Kerry, International Man of MysteryInternational Man of Mystery

Kerry vs. KerryKerry vs. Kerry

The First 100 daysThe First 100 days

Kerry Attack AdsKerry Attack Ads

Bush Misleading America and we are not Bush Misleading America and we are not going to take itgoing to take it

Keep our wordKeep our word

Issue AdsIssue Ads

MoveOn.orgMoveOn.org

Grassfire.orgGrassfire.org

Make America Work for UsMake America Work for Us

Where does the money go?Where does the money go?

Money is used to buy access, so it goes to Money is used to buy access, so it goes to individuals who stand a good chance of individuals who stand a good chance of getting elected. If the election is seen as a getting elected. If the election is seen as a toss-up, then it goes to both parties. toss-up, then it goes to both parties. Usually, it goes to incumbents. Usually, it goes to incumbents.

How money influences behaviorHow money influences behavior

Money flows to members who are either Money flows to members who are either strongly in favor or strongly against. strongly in favor or strongly against.

PACs through money to members who are PACs through money to members who are against legislation to against legislation to buybuy inactivity. inactivity.

““Why don’t you think of something else to Why don’t you think of something else to do with your time”. do with your time”.

Money just changes how people spend Money just changes how people spend their time. their time.

Bribery?Bribery?

Money buys Money buys timetime not votes. PACs give not votes. PACs give money because they want access. money because they want access. Contributing money is seen as an Contributing money is seen as an important advantage in getting important advantage in getting policymakers to pay attention to their policymakers to pay attention to their problems rather than someone else’s. problems rather than someone else’s. “Talking to politicians is fine, but with a “Talking to politicians is fine, but with a little money they hear you better”. little money they hear you better”.

Criticisms of PAC moneyCriticisms of PAC money

Operate primarily to protect incumbentsOperate primarily to protect incumbentsNationalizes campaign financing and weakens the link Nationalizes campaign financing and weakens the link between the representative and his or her district.between the representative and his or her district.Accountability. Money comes from outside the district. Accountability. Money comes from outside the district. Overrepresentation of business interests (rapid increase Overrepresentation of business interests (rapid increase in bus. related PACs)in bus. related PACs)Fragmentation of American politics by encouraging Fragmentation of American politics by encouraging groups that focus on narrow interests. groups that focus on narrow interests. Weakens the role of the individual in politics ($1000 Weakens the role of the individual in politics ($1000 opposed to $5000)opposed to $5000)Undermines political partiesUndermines political parties

The Flow of Campaign MoneyThe Flow of Campaign Money

Critical to the recent reform was the fact that the Critical to the recent reform was the fact that the unregulated campaign finance system (soft unregulated campaign finance system (soft money) outpaced the regulated system.money) outpaced the regulated system.

Spending in House and Senate campaigns also Spending in House and Senate campaigns also has continued to grow since FECA took effect, has continued to grow since FECA took effect, rising by an average of about 7 percent from one rising by an average of about 7 percent from one election year to the next.election year to the next.

Much variation, however, exists among Much variation, however, exists among congressional candidates. Some raise and congressional candidates. Some raise and spend a great deal, others do not.spend a great deal, others do not.

How Money is SpentHow Money is Spent