Money and the Election Process

 Fund-raising activities by candidates and parties  Public funding —State and Federal funds given to candidates under certain circumstances... Regulating Campaign Finance Federal El

Money and the Election Process

 The great

paradox of

modern elections:

Money is a

corrupting

influence but

candidates can’t

do without it

Campaign Spending Amounts

 In 2004 the cost of all elections was $2

Billion

 House and Senate Campaigns cost 1

billion in 2000

 Money is required for mailings, campaign staff, radio ads, web sites, buttons, etc.

 Biggest single item?

 TV advertising—Runs approximately

$150,000 for 30 seconds in prime time.

Sources of Campaign Funding

 Private Givers —have always been the major

source of funding.

(PACs)

 Fund-raising activities by candidates and

parties

 Public funding —State and Federal funds given

to candidates under certain circumstances.

Regulating Campaign Finance

 Federal Election Campaign Act -

 Donations directly from Corporations, Labor Organizations and National Banks

 Donations from Government Contractors

 Donations from Foreign Nationals

 Cash Contributions over 100 Dollars

 Contributions in the name of another (straw donor schemes)

 Federal Election Commission

 Bi-Partisan Campaign Reform Act of 2002

Federal Election Commission

 The agency set up in 1974 by Congress to administer federal election laws

 Is an independent agency in the executive department

 President can’t fire members

 Members appointed by president and

confirmed by congress

Federal Election Commission

 Laws overseen fall into four

areas:

finance data

the Presidential election process

Disclosure Requirements

committee

source and accounted for

within 48 hours Also contributions over $1000 in the last 20 days of campaign

on behalf of a candidate must also file with FEC

Limits on Contributions

 Individuals limited to $2000 to any one

candidate in the primary and the same in the general election.

 Limited to $5000 a year to single PAC and

 Total contribution limit to candidates and PACs is 95,000, during any election cycle (the two years from one general election

to the next one).

The Role of PACs

 Neither corporations nor labor unions can

contribute to any candidate running for a federal office

 PACs are the political arms of special-interest

groups—business, labor, professional, cause,

and other organizations that try to influence

government policies.

 Clout of PACs comes primarily from their ability

to raise campaign money and their willingness to give it out.

 Are more than 4400 PACs today—

The Role of PACs

members of the sponsoring organization

sympathetic to their views OR have a

good chance of winning

federal candidate in an election, but they can contribute to as many candidates as

Limits on Expenditures

spending violate free speech.

 Thus cannot limit:

 However, Presidential contenders who accept federal subsidies ARE subject to limits on their campaign spending That is part of the deal.

Public Funding of Presidential

Campaigns

 Fed Election Campaign Act set up the

 Money is used every four years to finance 1) the preconvention campaigns, 2) the

national conventions and 3) the

presidential election campaigns.

 Money is administered by the FEC

Public Funding of Presidential

Campaigns

 Pre-convention Period

plus money received from the FEC

individual donation up to a total of half Does not

match contributions from PACs or political

organizations

Funding Presidential Campaigns

 Each major party nominee automatically qualifies for a public subsidy 74.6 Mil In 2004

 If the candidate accepts the money:

 Can spend no more than the amount of the subsidy

 Can not accept campaign funds from any

other source.

Soft Money

 Nature of the problem

 Bipartisan Campaign

Reform Act of 2002

 Limits soft-money

donations to political

parties

 Limits what parties

can spend on

campaigns