The Electoral Process: Money & Elections GOVT.6c

Campaign Spending The presidential election eats up by far the largest share of campaign dollars. Money is spent in the following: Radio Television Professional campaign managers and consultants Newspaper advertisements Pamphlets Buttons Posters Bumper stickers Office rent Polls Data processing Mass mailings Web sites Travel: Gas, Busses, Food And the list goes on!

Campaigning for political office is expensive!!! Laws limit the amount individuals and groups may contribute to federal, state, and local candidates In state and local campaigns, campaign contributions are unlimited but must be reported Rising campaign costs require candidates to conduct extensive fund raising activities Increasingly, fundraising is done online Costs of Campaigns-.6c

Sources of Funding: Private Contributors Private contributors The major source of campaigning funds 1.Small contributors- $5-$10 – occasionally 2.Wealthy individuals and families – make large donations 3.Candidates and their families 4.Various nonparty groups Political action committees (PACs) “the political arms of special-interest groups with a major stake in public policy” 5.Temporary organizations 6.Fundraising events: private banquets, luncheons, picnics, receptions, mail, telethon, Internet solicitations

Sources of Funding: Public Treasury Public funds Subsidies A grant of money, usually from the government State treasuries

Regulating Campaign Finance Congress first regulated money for federal elections in 1907 making it unlawful for any corporation or national bank to make “a money contribution in any election” to candidates for federal office. Federal Election Campaign Act 1971, 1974, 1976 Bipartisan Campaign Reform Act of 2002 **Congress does not have the power to regulate the use of money in State and local elections

The Federal Election Commission The Federal Election Commission (FEC) Administers all federal law dealing with campaign finance Created in 1974 by Congress It is an independent agency in the executive branch Four laws they are to enforce under the Federal Election Campaign Act are: 1.Timely disclosure of campaign finance data 2.Place limits on campaign contributions 3.Place limits on campaign expenditures 4.Provide public funding for several parts of the presidential election process

Hard Money & Soft Money Hard money Money raised and spent to elect candidates for Congress and the White House – used for campaigning Soft money Funds given to party organizations for such “party-building activities” as candidate recruitment, voter registration, and get-out-the-vote drives and similar efforts The problem: Corruption of soft money

Hard Money, Soft Money Check it Out! Brain Break =relmfu =relmfu