PACs-Political Action Committees (Campaign Finance) Unit 3: Int. Groups, Media & Pol. Parties

I. Explosive growth of PACs What is a PAC? Legal arm of IG that is formed to give money to the political campaigns of people who are likely to make decisions that would benefit the group's interests In 1974, only 600 PACS existed. Now more than 4100. Reason: Cong wrote legislation that had the intent of preventing a few wealthy campaign contributors from helping candidates “buy” elections. Instead, cong. “opened up” campaign contributions to the masses, as represented by PACS.

FECA of 1974 did just that: 1. Individuals could contribute no more than $1000 (now $2600 for 2011-2012 cycle). 2. Individuals could also. However, contribute $10,000 to a PAC, with no limit on the number of PACS they could contribute to. 3. Furthermore, PACS could contribute 5x what an individual could contribute, and there is no limit on the total amount that a PAC can contribute in any one yr.

II. PAC contributions In 1972, PAC contributions to congressional races totaled only $8.5 million. By 2004, that figure was $384 million 50 House candidates raised > $500,000 each from PACS in 1998 (only 4 lost)

38 Senate raised > $500,000 each from PACs in 1998 (7 lost) PACs even donate to candidates facing no opposition at all! Why?

III. PAC strategies

Campaign contributions  Factors influencing who gets PAC $ Incumbents (Political party affiliation is of little to no importance) In 2004, 79% of PAC $ went to congressional incumbents/ only 7% went to challengers Winners Those who share similar philosophy Those likely to grant access Those in positions of special influence i.e. party leaders, comm. chairs Holds a committee seat of special importance to PAC PAC $ makes up higher % of congressional campaign $ than presidential $

Voter ed. Projects (mailings, fliers, commercials) American Crossroads

IV. Who has PACs?

Corporations 50% of all PACs. Largest growth in these since 1970s Ideological organizations- 25% Professional/trade/health associations – 15% Labor unions- 10% Overrepresentation of upper/middle-upper class and under representation of poor

V. Dangers of PACs

Ethical concerns: does a contribution “buy” anything? Special access of PACs that the average person lacks Drives up the cost of campaigning  more time spent by Cong fundraising

Over representation of those wealthy enough to have PAC representation Under representation of those lacking representation Further incumbency advantage in elections

VI. In Defense of PACs

PACs provide means of participation and rep. for average person W/o PACs perhaps only wealthy could afford to run for office 1st Amendment right to petition the gov’t

Contributions are non-partisan PACs provide pol. education PACs diversify pol. Funding. With over 4,100 PACs many interests are represented

VII. Super PACs and Citizens United In 2010, the Supreme Court heard arguments in the case Citizens United v. Federal Elections Commission B. Major Constitutional Questions? Are the bans and limits on campaign contributions on corporations and union set by BCRA constitutional? Rationale for questions: Companies and unions are made up of individuals people have freedom of speech liberties to donate to candidates for election unions and corporations should be treated as people

VII. Super PACs and Citizens United C. Effects of Citizens United decision There are no longer limitations on campaign contributions for unions and corporations for congressional campaigns- Unlimited Amount of $ Growth of Super PACs- a PAC that has the capacity to raise an unlimited amount of money Explosion of Super PACs during the 2012 election cycle Fear of not knowing who was really behind certain Super PACs i.e. American Crossroads – Karl Rove

VII. Super PACs and Citizens United D. Expectations and realities of Citizens United Fear of great influence by big corporations and unions on political process Expected that incumbents supported by Super PACs would dominate Results of 2012 election were varied Super PACs in Pop Culture: Americans for a Better Tomorrow, Tomorrow Stephen Colbert Herman Cain Mitt the Ripper

Lecture DQs List and discuss TWO factors for who gets PAC $ Identify ONE danger of PACS & ONE reason for defending PACs Explain ONE major impact of the Citizens United decision on campaign contributions