1. Campaign Finance

6. $8.29 per MN resident

7. Over 1 Billion dollars spent on 2008 presidential race 2012: $2.3 Billion by registered groups $4 Billion plus TOTAL

8. Five Key Campaign Finance Reforms  Hatch Act 1939  Federal Elections Campaign Act 1971 (amended in ‘74, ‘76)  Limited hard $ donations to $1k  Reporting requirements  PACs created (illegal for business to donate money before this)  FEC created  Buckley v. Valejo 1976  Legal to limit individual contributions  Illegal to limit candidate’s use of own money  BCRA 2002  Raised hard $ to $2k  Limited soft $ to local, banned to national  Recent: Citizens United 2010 unlimited $ from corporations, union, and individuals for elections BUT NOT to candidates

9. Buckley v. Valeo (1976)  SCOTUS struck down limits on how much individual candidates can give to their own campaigns  Perot in ’92, Romney in ‘08

10. Citizens United v. FEC (2010)  Corporate funding of independent political broadcasts in candidate elections cannot be limited under the First Amendment.First Amendment  5–4 decision  Hillary: The Movie was banned by BCRA from being aired within 30 days of the election  The Court struck down a provision of the McCain–Feingold Act that prohibited all corporations, both for-profit and not-for- profit, and unions from broadcasting “electioneering communications.”

11. See the Pattern? Law>Court Case>Loophole 1960s1970s1980s1990s2000s2010s FECA (’72) Buckley v. Valeo (‘77) BCR A (’02) PACs527s Citizens United v. FEC (’10)

12. 1972 1976 $70m 1980 $92m 1984 $104m 1988 $211m 1992 $192m 1996 $240m 2000 $343m 2012 FECA 1972 FECA 1974 Buckley v. Valeo 1977 BCRA 2002 McConnell v. FEC 2003 Presidential Election Spending FEC v. WI Right to Life 2006 2008 $1,324m 2004 $718m

13. Show me the money…  Matching funds from the Gvt  Individual contributions  PACs  Other organizations…

14. What would you do?

15. Matching Funds  The money from the Presidential Matching Fund:  Matches the first $250 of a contribution.  Funds political conventions  A Presidential candidate must…  Have broad-based public support (raise at least $5,000 in each of at least 20 states).  Agree to a spending ceilings:  $42 million in primaries  $84 million in general election  Spending limits in each state  Limit spending from personal funds to $50,000

16. Soft Money Pre-FECA Buckley v. Valeo (1977) Post BCRA Reform Soft money was unlimited money given directly to political parties. Soft money was unregulated and could be given to the party for ‘party building activities.’ Could not be given to candidates (but often indirectly benefited candidates) Soft money to parties NOW LEGAL 527s were a major loophole

17. PAC Contributions Pre-FECA Buckley v. Valeo (1977) Post BCRA Reform PACs were not very numerous or effective PACs gained legitimacy with FECA PACs a loophole that still allowed $ to flow $2,000 per candidate per election per PAC $5,000 per candidate per election per PAC

18. 527s People can give unlimited amounts to a 527. The 527 cannot give money to candidates but can make independent expenditures to ‘educate the electorate’ on important issues.

19. Individual Contributions FECA (1972) Buckley v. Valeo (1977) BCRANow Established limits on contributions ($1,000). Prior to FECA, there were no limits. SCOTUS upheld limits. Freedom can be limited for a compelling reason. $2000 per candidate per election – limit was raised. Limits adjust upwards with inflation (COLA).

20. Individual Contributions – Total Spending Limit Pre-FECA Buckley v. Valeo (1977) Post BCRA Reform No limit until FECA established a $25,000 limit over 2-year election cycle Limit affirmed by SCOTUS $95,000 in a 2- year election cycle No more than $37,500 can go to candidates COLAs every year

21. Federal Disclosure Pre-FECA Buckley v. Valeo (1977) Post BCRA Reform NoneFederal disclosure to the FEC is constitutional Disclosure beefed up but NOT for 501 (c) s

22. Federal Financing of Elections Pre-FECA Buckley v. Valeo (1977) Post BCRA Reform Public financing of presidential election established in FECA 1972 Use of public financing was upheld Candidates don’t use anymore: disadvantage because it limits their spending.

23. Independent Expenditures Pre-FECA Buckley v. Valeo (1977) Post BCRA Reform No limits until FECA outlawed independent expenditures Limits on independent expenditures violate the freedom of speech Ads made with independent expenditures can be banned 60 days before general election* *Now unconstitutional