1. Campaign Finance
Chapter 9

2. 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?

3. 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

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

5. 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

6. 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

7. 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

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

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

10. Identify the trend since 2000 in undisclosed political spending.

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

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

13. 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

14. 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

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

16. 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

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

18. 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

19. 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

20. 2012 Presidential Race

21. 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

22. 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

23. 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