American Government American Government and Organizationand Organization
PS1301PS1301
Wednesday, 24 MarchWednesday, 24 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))
Attitudes about Campaign FinanceAttitudes about Campaign Finance
Campaign MoneyCampaign Money
A good candidate and a good message are not A good candidate and a good message are not enough. Without money, the voters do not see enough. Without money, the voters do not see the candidate or hear the message.the candidate or hear the message.In contemporary candidate-centered campaigns, In contemporary candidate-centered campaigns, candidates (as opposed to the party candidates (as opposed to the party organizations) must assemble their own organizations) must assemble their own campaign teams, raise their own money, hire campaign teams, raise their own money, hire consultants and technical specialists, and design consultants and technical specialists, and design and execute their own individual campaign and execute their own individual campaign strategies.strategies.Recent elections reflect the rise in cost.Recent elections reflect the rise in cost.
Regulating Campaign MoneyRegulating Campaign Money
Taxpayers partially finance presidential Taxpayers partially finance presidential campaigns, but most of the money spent on campaigns, but most of the money spent on congressional elections comes from private congressional elections comes from private sources.sources.
But money is distributed very unequally, thus its But money is distributed very unequally, thus its role in electoral politics threatens democratic role in electoral politics threatens democratic equality and raises the suspicion that elected equality and raises the suspicion that elected officials will serve as the agents of their officials will serve as the agents of their contributors rather than their constituents.contributors rather than their constituents.
Efforts to Regulate Campaign MoneyEfforts to Regulate Campaign Money
Prior to the 1970s campaign money was Prior to the 1970s campaign money was effectively unregulated.effectively unregulated.
Congress had passed some limits on Congress had passed some limits on contributions and spending.contributions and spending.
The Corrupt Practices Act of 1925, which placed The Corrupt Practices Act of 1925, which placed unrealistically low limits on spending in unrealistically low limits on spending in congressional elections, was in force for more congressional elections, was in force for more than four decades, but no one was prosecuted than four decades, but no one was prosecuted under the act.under the act.
Efforts to Regulate Campaign MoneyEfforts to Regulate Campaign Money
As campaigns became more candidate-As campaigns became more candidate-centered and broadcast campaigning centered and broadcast campaigning became the standard, costs increased the became the standard, costs increased the demand for money, but many began to demand for money, but many began to fear that winners would favor contributors fear that winners would favor contributors over constituents.over constituents.
The legal response to this situation was The legal response to this situation was the Federal Election Campaign Act of the Federal Election Campaign Act of 1971.1971.
Federal Election Campaign Act of Federal Election Campaign Act of 1971 (FECA)1971 (FECA)
Required candidates running for political office Required candidates running for political office disclosedisclose an itemized accounting of all an itemized accounting of all expenditures and donations of more than $100. expenditures and donations of more than $100.
FECA 1974FECA 1974
Instituted a system for public financing of Instituted a system for public financing of presidential elections. presidential elections.
Limited individuals to $1,000 and $5,000 Limited individuals to $1,000 and $5,000 for groups. Created political action for groups. Created political action committees (PACs)committees (PACs)
Spending limits were also set for Spending limits were also set for congressional racescongressional races
Legal ChallengesLegal Challenges
In In BuckleyBuckley v. v. ValeoValeo (1976) the Supreme (1976) the Supreme Court upheld the reporting requirements Court upheld the reporting requirements and contribution limits, but rejected and contribution limits, but rejected spending limits on the grounds that they spending limits on the grounds that they interfered with political speech.interfered with political speech.
Soft MoneySoft Money
Concerned that spending limits were choking off Concerned that spending limits were choking off traditional local party activity in federal elections, traditional local party activity in federal elections, Congress liberalized FECA in 1979, amending Congress liberalized FECA in 1979, amending the act to allow unrestricted contributions and the act to allow unrestricted contributions and spending for state and local party-building and spending for state and local party-building and get-out-the-vote activities. These monies are get-out-the-vote activities. These monies are commonly called commonly called soft moneysoft money..In March of 2002, Congress passed a law In March of 2002, Congress passed a law prohibiting parties from raising and spending soft prohibiting parties from raising and spending soft party money for federal candidates.party money for federal candidates.
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.
Comparisons with Other CountriesComparisons with Other Countries
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
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”.
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.
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 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.
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
