1. Incumbents Always win!

2. Hey…must be the money!

3. How to Fix a Rigged System “If you aren’t an incumbent or you don’t have personal wealth, there’s almost no hope of winning.” ---Phillip Bradley, congressional candidate in 2002 A House incumbent in 2002 raised, on average, nearly $900,000 to keep a seat, must of it from vested interests. 98% of incumbents win re-election.

4. Where does the financial advantage come from?

5. Just how much does it cost?

6. THE FEDERAL ELECTION COMMISSION: The Federal Election Commission (FEC) is the independent regulatory agency charged with administering and enforcing federal campaign finance law. The FEC has jurisdiction over the financing of campaigns for the U.S. House, the U.S. Senate, the Presidency and the Vice Presidency.FEC Federal campaign finance law covers three broad subjects: –Public disclosure of funds raised and spent to influence federal elections; –Restrictions on contributions and expenditures made to influence federal elections; and –Public financing of Presidential campaigns.

7. Political Action Committees (PACs) Arms of labor unions, corporations, and interest groups that collect and donate money to political parties and candidates.

8. Types of Money Donations HARD $: Actual money donations; regulated. SOFT $: funds spent by organizations that are not contributed directly to candidate campaigns, and which do not "expressly advocate" the election or defeat of a candidate. Bundling is the practice of one donor gathering donations from many different individuals in an organization or community and presenting the sum to a campaign.

9. Hard Money v. Soft Money Limits by law for past 30 years Money raised and spent on candidates Congressional and Presidential elections Money from public sources No limits until ‘02 Money given to party and PACs Used for recruitment, voter drives Raised for one purpose…Ends up in a campaign Recent laws limiting

10. Money in the General Election Lots of $$$$ has been spent lately George W. Bush nearly $400 million in 2004 Barack Obama $600 million Question; accept public money for general cycle(with a cap on spending) or accept UNLIMITED private funds McCain public/Obama private

11. Public Funding of Presidential Elections This information is from www.fec.gov

12. Public Funding of Pres. Elections Primary $ –Must qualify for matching grants. Raise $5,000 in each of at least 20 states, with only $250 from any individual donor counting. Qualifying candidates can then receive public funds up to $250 per individual (matching $.) Must agree to: –Not use more than $50,000 of own personal funds –Abide by a nationwide limit on primary election spending –Abide by state-specific primary spending limits. »$42 million in 2008. Clinton & Obama did not take primary $ McCain did at first, and then gave it back.

13. Public Funding of Pres. Elections Convention $ –Each major party got $16.4 million in 2008 to finance its presidential nominating convention. –Host city and local groups may provide supplemental services to the conventions. –Minor parties can qualify for a much smaller grant.

14. Public Funding of Pres. Elections General Election $ –Each major party candidate gets $84.1 million in 2008. –Can take limited $ from private donators for legal & accounting expenses. –Can use up to $50,000 in personal funds. –Barred from accepting private donations (individuals or PACs).

15. Barack Obama did not accept public funding in 2008. Why did he back out of an agreement he had made with John McCain and decided not to accept public funding? This is why…

16. Little donors add up! Barack Obama (2008) –3.5 million people made donations to him. (1% of the total U.S. population!) –Average donation = $86 http://www.opensecrets.org/pres08/index.php

17. Problems: Challengers are at a great disadvantage when it comes to fund-raising. Too much of an incumbent’s money comes from special interest groups. This cuts out fresh blood and new thinking in Congress. No competitive races. As races grow more expensive, the money gap between incumbents and challengers is widening.

18. How to fix it: Fix the public fund: –Needs to be indexed for inflation. –Increase amount from $3 to $6. –Needs a nationwide public relations campaign to explain to people why they should check the box on their tax form. Broaden Public Financing –Extend it to congressional races to even the playing field.

19. How to fix it: Help Hill Challengers –Local stations should give free air time to challengers. –And air debates between candidates for Congressional seats. Overhaul the FEC –Give it some real authority to enforce the laws.

20. How to fix it: Encourage Small Donors –Small donors are the least corrupt source of campaign funds. –Give a tax credit to small donors. Let them get back up to $100 when they file their tax return.

21. 1974 Campaign Reform Law Limit on donations $1,000 (hard money) Corporations and unions have to form PAC’s to contribute money Set up the FEC Started PACs PAC requirements; 50 members Give to 5 different federal candidates No more than $5,000 per election per candidate and no more than $15,000 per year to any party (hard money) LOOP HOLE…soft money…money for “Party building activities” unlimite

22. 2002 McCain/Feingold Reforms Bipartisan effort to “clean up” fund raising #1 objective; end soft money Raised hard money to $2,000 max Outside Groups cannot run TV ads 30 days before election Loopholes: 527 groups

23. Campaign Financing Citizens United v. Federal Election Commission (2009) Argued before the Court twice. The case originally focused on a movie that was critical of Hillary Clinton during the 2008 presidential election. Found to be protected by free speech and not a violation of the FEC Defined corporations as people too

24. Campaign Financing McCutcheon v. Federal Election Commission (2013) Money= free speech Should be no limit on aggregate contributions Some fear there would be more corruption and candidates would find a way to pool money