Chapter 7.3 Money and the Election Process

What Does it Cost? : $1Billion : $1Billion : $3.5 Billion : $3.5 Billion Radio and Television Time Radio and Television Time 30 minutes of network time: $500, minutes of network time: $500, second prime-time spot: $150, second prime-time spot: $150,000 Professional campaign managers and consultants Professional campaign managers and consultants Newspaper advertisements Newspaper advertisements Pamphlets, buttons, bumper stickers, & posters Pamphlets, buttons, bumper stickers, & posters Office rent Office rent Polls & data processing Polls & data processing Mass mailings Mass mailings Travel & Food Travel & Food

Sources of Funding Private and Public Sources (mostly private) Private and Public Sources (mostly private) Only 10% of voters contribute money to finance campaigns Only 10% of voters contribute money to finance campaigns Small contributors: $5 - $10 Small contributors: $5 - $10 Wealthy Individuals and Families Wealthy Individuals and Families Candidates Candidates Ross Perot (1992): $65 Million Ross Perot (1992): $65 Million Political Action Committees (PACs) Political Action Committees (PACs) Temporary Organizations Temporary Organizations Subsidies Subsidies

Why People Give Belief in the party or candidate Belief in the party or candidate Access to government: making friends Access to government: making friends Political appointments Political appointments Social recognition Social recognition Policy-making influence Policy-making influence

Regulating Campaigns Campaign finance laws Campaign finance laws Disclosure Requirements Disclosure Requirements Limits on Contributions Limits on Contributions PAC Contributions PAC Contributions Limits on Expenditures Limits on Expenditures Public Funding (Subsidies) Public Funding (Subsidies) The Federal Election Commission (FEC) The Federal Election Commission (FEC)

Disclosure Requirements Requirements are so detailed that candidates now have at least one CPA Requirements are so detailed that candidates now have at least one CPA No one can make a contribution in the name of another No one can make a contribution in the name of another No cash gifts of more than $100 and foreign sources No cash gifts of more than $100 and foreign sources All contributions must be made through a single campaign committee All contributions must be made through a single campaign committee $200+ must be identified by source and date $200+ must be identified by source and date $5000+ must be reported within 48 hours $5000+ must be reported within 48 hours

Limits on Contributions No more than $2000 to any primary or general election No more than $2000 to any primary or general election No more than $5000/year to any PAC ($25,000 to any national party) No more than $5000/year to any PAC ($25,000 to any national party) Before this law it was far more generous Before this law it was far more generous Nixon Re-election (1970): Nixon Re-election (1970): W. Clement Stone - $2 million to Nixon W. Clement Stone - $2 million to Nixon Richard Scaife - $1 million Richard Scaife - $1 million

PAC Contributions Corporations and unions cannot contribute Corporations and unions cannot contribute PAC’s – the political arm of special-interest groups PAC’s – the political arm of special-interest groups 4,000 PAC’s today 4,000 PAC’s today PAC members donate money to the PAC treasury, which is used as campaign contributions PAC members donate money to the PAC treasury, which is used as campaign contributions No more than $5000 per election (to as many people as they choose) No more than $5000 per election (to as many people as they choose) 2000 Election: PAC’s gave $400 million 2000 Election: PAC’s gave $400 million

Limits on Expenditures Buckley v. Valeo, 1976 Buckley v. Valeo, 1976 “Money is speech.” “Money is speech.” Spending limits only apply to those who accept government money (FEC money) Spending limits only apply to those who accept government money (FEC money) Why is there a spending limit? Why is there a spending limit?

Public Funding of Presidential Campaigns $3 per tax return / $6 on a joint tax return $3 per tax return / $6 on a joint tax return Minor party candidates can receive public funding if: Minor party candidates can receive public funding if: They have won 5% of the popular vote in the last election They have won 5% of the popular vote in the last election They win at least that much of the total vote in the current election (Ralph Nader, 2004) They win at least that much of the total vote in the current election (Ralph Nader, 2004)

Hard Money, Soft Money Hard money – money raised and spent to elect candidates for Congress and the White House Hard money – money raised and spent to elect candidates for Congress and the White House Soft money – funds given to party organizations for “party-building activities” Soft money – funds given to party organizations for “party-building activities”