Campaign Finance

1972/1974 Federal Election Campaign Act (FECA)

• Creates the FEC – federal election commission to regulate, oversee and enforce campaign

laws• Establishes limits on contributions – Supreme court is hearing a case this

year that could strike down these limits.– $1000 to candidate (election cycle)– $5000 to a PAC

• Enacts public disclosure (anything over $200)• Attempted to limit amount of “Personal Expenditures”

– Was overturned with Buckley vs. Valeo Business and Unions could not give directly to Candidates – PACs must be created

– But what is a PAC???

– http://www.colbertnation.com/the-colbert-report-videos/379369/march-30-2011/colbert-pac---trevor-potter

Funding for election(2012)

1.Senate and down are private funds

2.President is combo of private and publicA. Primaries – matching of $250 and below from individuals

-Must raise $5,000 in 20 states-agree to limit - No major candidate accepts anymore.

B. General election grants – to cover all expenses but agree to limit-2008 – Marked the 1st time a candidate turned down the monies (OBAMA)-2012 – Neither candidate accepted

C. 3rd Parties – monies if 5% popular vote the previous election cycle will get a percent. (25% gets you the whole thing)-Reform Party of 2000 was last to receive money.

Holes in the System• PAC’s grew in power

– Top in 2012 (National Association of Realtors-4m)

• Soft Money

- unregulated donations to organizations and committees.

- Not direct campaign money but party building and get out the vote.

• Bundling (Obama dominates here)

– Jeff Katzenberg for Obama (2.3m)

– Patrick Durkin for Romney (1.1m)

• Issue Ads (on a topic but not for a candidate)

• Independent Expenditures

- (spending money separate from candidate)

Bipartisan Campaign Reform Act 2002McCain-Feingold

Try to Patch the holes in the dam

• Ban on soft money (to parties)• Ban on private ads 60 days before election unless follow all

FEC guidelines • Stricter disclosure rules (donations plus commercials)• Increase individual contributions

- 1,000 to 2,000 per candidate

The New Holes or Ignored ones• 527’s replace soft money and issue advocacy.

– 2004 Swift boat Veterans – 22m– 2008 America Votes – 25m– 2012 Act Blue – 12m

• Get out the vote.• Bundling still around• Independent Expenditures have been limited

near election time but still present in “New” Media

• Personal Expenditures– 49 individuals spent over $500,000 of their own

money

Citizens United v. Federal Election Commission – 2010

Holding: Political spending is a form of protected speech under the First Amendment, and the government may not keep corporations or unions from spending money to support or denounce individual candidates in elections. (5-4)What it means??? Unions and Corporations have the right to use money for political speech the same way individuals can. Creation of the SUPERPAC

1. http://www.youtube.com/watch?v=k5kHACjrdEY (8min youtube)2. http://www.colbertnation.com/the-colbert-report-videos/382013/april-14-2011/viacom-ruins-stephen-s-pac-dream 3. http://www.colbertnation.com/the-colbert-report-videos/382014/april-14-2011/colbert-super-pac---trevor-potter4. http://www.colbertnation.com/the-colbert-report-videos/405930/january-15-2012/colbert-super-pac-ad---attack-in-b-minor-for-strings

The 2012 Election – Presidential – Record amounts!

• Candidates Raised:– Obama: 726 m – Romney: 463 m

• National Party Raised:– Democrats: 255 m– Republicans: 371 m

• Endorsed Super Pac– Democrats: 78 m

• (Priorities USA action)• Top donor – Simons 5m

– Republicans 142 m• (Restore Our Future)• Top donor – Adelson 15m

The Next TOP 5 SUPER PACS•American Crossroads: 91m (Rove - Romney•Americans for Prosperity: 33m(Koch – Romney)•Crossroads GPS: 22m (Romney)•American Future Fund: 19m (out of Iowa – Romney)•Winning our Future: 17m (Burkette – Gingrich)Number 13 on Spending was 1st non-republican that was not Obama’s endorsed . Services Employees Union @ 5m.

Howard’s issue: Top Five Super Pacs including Priorities USA Actions spent over 98 % of their money on Negative Ads. No wonder we our divided

We are not done raising/spending the money (2012)

• House:– Avg. raised by Republican: $ 726,000– Avg. raised by Democrat: $639,000– Total spent on all House races:$1,065,456,561 – Most expensive: Florida 18th district – 24m

• Senate:– Avg raised by Republican: $2,753,968– Avg raised by Democrat: $3,748,615– Total spent on all Senate races: $701,231,207– Most expensive : Massachusetts: $82,390,661

Incumbent Advantage

• Senate– Incumbent: $11,846,506– Challenger:$1,380,952

Does money but elections?

But Freakonomics says NO

http://www.youtube.com/watch?v=b79Wx--057g