American Government Campaign Finance. Money in Congressional Elections The Cost of U.S. House Seat –$1 million for incumbents (4x as much as average challenger)

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Presentation transcript:

American Government Campaign Finance

Money in Congressional Elections The Cost of U.S. House Seat –$1 million for incumbents (4x as much as average challenger) –$1.2 million in open seat elections The Cost of a U.S. Senate Seat –$ 8 million

What does Money Buy… For challengers? –name recognition For incumbents? –ward off potential challenges –maintain on-going campaign organizations Money has a greater marginal effect on the number of votes a challenger gets…

The Effects of Money on Outcomes Challengers begin with less money and less committed votes. Incumbents begin with more money and votes. On average, the return from each dollar for a challenger is better than for an incumbent Challengers $ Raised and Spent Likely Votes Incumbents

Money in Presidential Elections Spending in 2004 election: –Bush: $345 million –Kerry: $310 million Total raised so far by presidential candidates for 2008 election: $420 million (and the election is still a year away!!) cle=2008http:// cle=2008

Campaign Finance Law $ in federal elections is policed by the Federal Elections Commission (created in 1974) Originally intended to do two things: –Reduce the importance of personal wealth and incumbency –Shift influence from the rich and corporate interests to the citizenry Types of regulations: –Reporting requirements –Contributions limits See:

Why FEC has failed to achieve its goals Buckley v. Valeo (1976) –struck down limits on what a person may spend on their own campaign –Money = Speech Loopholes in the law –Soft money –PACs

Recent Reforms Bipartisan Campaign Reform Act of 2002 –Banned use of soft money –Raised limits for hard money Individual: $2000 primary, $2000 general, per candidate Organization (PAC): $5000 primary, $5000 general per candidate

Impact of BCRA Rise of new independent, but Democratic leaning groups: 527s (named after a provision of the tax code) – – 527s don’t directly campaign for candidates, but they do things like: –Voter mobilization –Issue advocacy In 2006 elections, these groups spent $428 million!!!

527s: The Constitutional Question Independent spending –527s don’t make contributions to candidates –527s don’t sell access to candidates Is it constitutional to limit independent spending?

Campaign Finance Reform Proposals Let’s assume we would like to: –Reduce the importance of personal wealth and incumbency –Shift influence from the rich and corporate interests to the citizenry Come up with 1 reform proposal—explain what your proposal is how it will achieve these goals. Identify any potential drawbacks. Be creative—For inspiration, check out your POV reading: –Patriot Dollar Plan –Secret Donation Plan