1. Campaign Finance Reform Objective: Assess info on campaign finance reform and draw conclusions as to: 1)the constitutionality of various reforms, and 2)the arguments for and against reform proposals Concerns of reformers: The proliferation of PACs and the skyrocketing cost of campaigns... * ….Discourage non-wealthy candidates from running * ….Increase # Millionaire candidates (gap b/w govt and avg. citizen?) * ….Create Appearance or Existence of corruption & undue influence * ….Cause Elected officials to spend less time governing, because they are constantly fundraising

2. Campaign Finance Reform Federal Election Campaign Act (FECA) 1971 –Required Disclosure on spending & contributions 1974 - FECA Amendments –set up Federal Election Commission (FEC) –public financing of presidential campaigns –Contribution limits on Individuals & PACs Individuals: $1000 to candidate, $5K to PAC, $20K to party PACs: $5,000 to candidate / $15,000 to party –Spending limits on own campaign

3. Buckley v. Valeo (1976) Supreme Court Upheld: –Disclosure Requirements –Contribution limits on PACs & Individuals –Spending limits if use Public Financing Struck Down (as prohibiting Free Speech): –Limits on family contributions –Spending limits on own campaign (unless accept public Financing)

4. DISCUSSION Why did the court uphold contribution limits, but strike down spending limits on one’s own campaign? Should money in political campaigns be considered a form of protected speech? –Does $ = speech? –Do spending limits promote or limit speech? U.S. political culture values political equality. Is that value supported more by CFR or by a lack of restrictions financing? Which do you value more? Freedom of individuals to be unrestricted in giving $ to campaigns, or the right of citizens to be equally represented by public officials?

5. “Soft Money” Loopholes 1978 “Soft Money”: FEC allowed unlimited funds to be given to parties for “party activities” that don’t back a candidate by name –i.e. voter registration and get-out- the-vote drives 1995 “Independent Expenditures”: FEC allowed “independent” political advertising (issue ads) on behalf of a candidate if not done in coordination with the candidate

6. Explosion in Campaign Costs Source: http://www.opensecrets.org/softmoney/softglance.asphttp://www.opensecrets.org/softmoney/softglance.asp Link to 2008 campaign: http://www.opensecrets.org/pres08/index.phphttp://www.opensecrets.org/pres08/index.php

7. 2002 Bipartisan Campaign Reform Act Took effect November 6, 2002 Closes Soft Money Loopholes: –Bans “soft money” for party-building activities –Restricts ads referring to candidates (60 days before election) unless “hard money” used Raises limits on individual contributions: –from $1000 to $2000 for a candidate –from $20,000 to $25,000 for a party –from $5,000 to $10,000 for a PAC December 2003: Supreme Court upheld most of BCRA in McConnell v. FEC Sen. Feingold (D-WI) & McCain (R-AZ) Reps Meehan (D-MA) & Shays (R-CT)

8. New Loopholes Found 527 Organizations: a tax- exempt org. under IRS reg’s; created to influence election or appointment of candidates for public office –Can’t say “Vote for Obama” (but can make clear their views of candidate) –Is it possible to limit money in campaigns? –Link to 527 contributions http://www.opensecrets.org/52 7s/index.php http://www.opensecrets.org/52 7s/index.php Ad by Swift Boat Veterans for Truth Ad by Moveon.org

9. Discussion Questions Did the court rule correctly? Do limits on “soft money” violate free speech? Brainstorm other proposals to address the issue of the skyrocketing cost of campaigns. Want to know more about who is giving money to various politicians? –Go to www.opensecrets.org (Center for Responsive Politics) CLOSURE: List all the arguments for and against Campaign Finance Reform. What is the strongest?

10. Other Reform Proposals Anonymous Contributions Free Airtime for Candidates by Law Extend Public Financing to other Elections

11. http://newsimg.bbc.co.uk/media/images/45133000/gif/_45133456_camp_expenditure.gif

12. http://blogs.law.harvard.edu/vvvv/files/2008/06/campa ign-fundraising.png