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??? – videos/379369/march /colbert-pac---trevor-potterhttp:// videos/379369/march /colbert-pac---trevor-potter

Funding for election (2012) 1.Senate and down are private funds 2.President is combo of private and public A. 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 – Marked the 1 st time a candidate turned down the monies (OBAMA) – Neither candidate accepted C. 3 rd 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 2002 McCain-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. (8min youtube) dreamhttp:// dream 3. potter 4. attack-in-b-minor-for-stringshttp:// 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 1 st non- republican that was not Obama’s endorsed. Services Employees 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 18 th 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