Campaign Finance Chapter 9

Brainstorm Does money corrupt policymakers?  Why or why not?  How?  In what ways?   Is there any legitimate (non-corrupt) form of money in politics? Is money necessary in political campaigns? Why or why not?

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. The First Amendment

Vocabulary Campaign finance key terms Handout: “What is Dark Money?”

Traditional Campaign Spending aka HARD MONEY Candidate Committees John McCain 2008 Political Parties Ex. The Arizona Republican Party Traditional Political Action Committees (PACs) The political arms of special interest groups and other organizations with a stake in electoral politics. Traditional Campaign Spending aka HARD MONEY

Political Action Committees (PACs) Created by law in 1974 to allow corporations, labor unions and others to donate money to campaigns. Donate to candidates who support their issue, regardless of party affiliation Super PACs: may raise and spend an unlimited amount of money (cannot give directly to, or coordinate with, candidate) Often run by people who are personally close to a candidate Can have donors who are shell corporations or nonprofits that don’t disclose donors

Campaign Financing Hard Money Comes from traditional political spending Soft Money Contributions (with no limits) used for political spending, often without disclosure of donors Campaign Financing

What are the key components to the definition of DARK MONEY?

What are the key components to the definition of DARK MONEY? Political spending… undisclosed donors/ source of moneg

Identify the trend since 2000 in undisclosed political spending.

a tax-exempt organization created for the purpose of influencing the election or appointment of public officials 527 GROUPS

What are the kinds of interest groups (501c Groups) that engage in political activities? Types of Dark Money

Diagraming campaign finance Begin with an individual and a political candidate. Diagram the possible ways that individual can give money to the candidate. Diagraming campaign finance

Money and Campaigning The Maze of Campaign Finance Reforms Federal Election Campaign Act (1974) Created the FEC to administer campaign finance laws for federal elections. Created the Presidential Election Campaign Fund. Provided partial public financing for presidential primaries (matching funds). Provided full public financing for major party candidates in the general election. Required full disclosure. Limited Contributions. Money and Campaigning

Money and Campaigning The Decline in Income Tax Check-Off Participation for Federal Financing of Campaigns

Restricting Soft Money Keating Five scandal McCain-Feingold Act (2002) also known as the Bipartisan Campaign Reform Act banned soft money, increased amount individuals can contribute, and limited “issue ads.” Restricting Soft Money

Brief Cases: Buckley & Citizens United 1976 Buckley v. Valeo Facts Constitutional /Legal Question Ruling of the Court Rationale & Impact Brief Cases: Buckley & Citizens United

1976 Buckley v. Valeo Facts Post-Watergate, Congress passed Federal Election Campaign Act of 1971 to ferret out corruption in political campaigns Law limited individual financial contributions to candidates and required reporting of contributions above a certain amount, among other components Created Federal Election Commission to enforce Constitutional /Legal Question Did limits on electoral expenditures violate the First Amendment’s freedom of speech and association clauses? Ruling of the Court ‘per curiam’ decision (by the court) in favor of Buckley. See below. Rationale & Impact 1 – No. Restrictions on individual contributions to political campaigns/candidates does NOT violate the First Amendment 2- Yes. Limits on expenditures by candidates and limitation on total campaign expenditures did violate the First Amendment 3 – Reporting and disclosure requirements infringe on First Amendment 4 – Public money can subsidize political campaigns, but candidates cannot be required to forego private contributions

2010 Citizens United v. FEC Background / facts Bipartisan Campaign Reform Act attempted to regulate “big money” contributions by restricting corporations and labor unions from funding “electioneering communications,” also requires disclosure of donors & disclaimers Conservative non-profit org Citizens United wanted to air anti-Hillary Clinton film during 2008 primary Constitutional / Legal Question Do BCRA’s disclosure requirements impose unconstitutional burdens when applied to “political speech?” If communication lacks clear plea to vote for/against a particular candidate, is it subject to regulation under BCRA? Should a feature length documentary be treated like a campaign ad? Ruling 5-4 in favor of Citizens United Rationale / Impact Disclosure requirements are constitutional – “governmental interest” Upheld ban on direct contributions to candidates from corporations and unions 1st Amendment: corporate/union funding of independent political broadcasts cannot be limited

2012 Presidential Race

Money and Campaigning Are Campaigns Too Expensive? Fund raising takes up lots of time. Incumbents do worse when they spend more money because they need it when they face tough challengers. The doctrine of sufficiency suggests that candidates need just “enough” money to win, not necessarily “more.” Money and Campaigning

The Impact of Campaigns Campaigns have three effects on voters: Reinforcement, Activation, Conversion Mostly, they only reinforce & activate Selective perception: pay attention to things we agree with. Party identification still has an affect Incumbents start with a substantial advantage The Impact of Campaigns

Understanding Nominations & Campaigns Are Nominations and Campaigns Too Democratic? Campaigns are open to almost everyone. Campaigns consume much time and money. Campaigns promote individualism in American politics. Do Big Campaigns Lead to an Increased Scope of Government? Candidates make numerous promises, especially to state and local interests. Hard for politicians to promise to make government cuts. Understanding Nominations & Campaigns