1. Section 1—The Nominating Process Money and the Election Process  The great paradox of modern elections: Money is a corrupting influence but candidates can’t do without it.

2. Section 1—The Nominating Process Campaign Spending Amounts  In 2004 the cost of all elections was $2 Billion  House and Senate Campaigns cost 1 billion in 2000  Money is required for mailings, campaign staff, radio ads, web sites, buttons, etc.  Biggest single item? TV advertising—Runs approximately $150,000 for 30 seconds in prime time. TV advertising—Runs approximately $150,000 for 30 seconds in prime time.

3. Section 1—The Nominating Process Sources of Campaign Funding  Private Givers—have always been the major source of funding. Small Contributors Small Contributors Wealthier persons Wealthier persons Candidates themselves Candidates themselves Special interest groups/Political Action Committees (PACs). Special interest groups/Political Action Committees (PACs). Temporary organizations Temporary organizations  Fund-raising activities by candidates and parties  Public funding—State and Federal funds given to candidates under certain circumstances.

4. Section 1—The Nominating Process Regulating Campaign Finance  Federal Election Campaign Act - Prohibits: Prohibits: Donations directly from Corporations, Labor Organizations and National Banks Donations directly from Corporations, Labor Organizations and National Banks Donations from Government Contractors Donations from Government Contractors Donations from Foreign Nationals Donations from Foreign Nationals Cash Contributions over 100 Dollars Cash Contributions over 100 Dollars Contributions in the name of another (straw donor schemes) Contributions in the name of another (straw donor schemes)straw donorstraw donor  Federal Election Commission  Bi-Partisan Campaign Reform Act of 2002.

5. Section 1—The Nominating Process Federal Election Commission  The agency set up in 1974 by Congress to administer federal election laws.  Is an independent agency in the executive department. President can’t fire members President can’t fire members Members appointed by president and confirmed by congress. Members appointed by president and confirmed by congress.

6. Section 1—The Nominating Process Federal Election Commission  Laws overseen fall into four areas: Timely disclosure of campaign finance data Timely disclosure of campaign finance data limits on contributions limits on contributions limits on expenditures limits on expenditures public funding for several parts of the Presidential election process public funding for several parts of the Presidential election process

7. Section 1—The Nominating Process Disclosure Requirements  No gifts in the name of another.  Cash gifts limited to $100.  No gifts from foreign sources.  All advertising must bear the name of the candidate.  All contributions must be made through a single committee.  Only the committee can spend the money.  All contributions above $200 must be identified by source and accounted for.  All spending over $200 must be accounted for.  All contributes above $5000 must be reported to FEC within 48 hours. Also contributions over $1000 in the last 20 days of campaign.  Any independent committee spending more than $250 on behalf of a candidate must also file with FEC

8. Section 1—The Nominating Process Limits on Contributions  Individuals limited to $2000 to any one candidate in the primary and the same in the general election.  Limited to $5000 a year to single PAC and $25,000 to a national party.  Total contribution limit to candidates and PACs is 95,000, during any election cycle (the two years from one general election to the next one).

9. Section 1—The Nominating Process The Role of PACs  Neither corporations nor labor unions can contribute to any candidate running for a federal office.  PACs are the political arms of special-interest groups—business, labor, professional, cause, and other organizations that try to influence government policies.  Clout of PACs comes primarily from their ability to raise campaign money and their willingness to give it out.  Are more than 4400 PACs today—

10. Section 1—The Nominating Process The Role of PACs  PACs get money from contributors and members of the sponsoring organization.  Are usually focused on narrow issues.  Distribute money to candidates sympathetic to their views OR have a good chance of winning.  Spent more than $600 Mil. in 2004.  PACs are limited to $5000 to any single federal candidate in an election, but they can contribute to as many candidates as they want. $15000 limit to parties.

11. Section 1—The Nominating Process Limits on Expenditures  Buckley v. Valeo– stated that limits on spending violate free speech.  Thus cannot limit: how much candidates spend how much candidates spend how much of their own money candidates spend how much of their own money candidates spend how much third parties spend to promote a candidate. how much third parties spend to promote a candidate.  However, Presidential contenders who accept federal subsidies ARE subject to limits on their campaign spending. That is part of the deal.

12. Section 1—The Nominating Process Public Funding of Presidential Campaigns  Fed. Election Campaign Act set up the Presidential Election Campaign Fund.  Money is used every four years to finance 1) the preconvention campaigns, 2) the national conventions and 3) the presidential election campaigns.  Money is administered by the FEC

13. Section 1—The Nominating Process Public Funding of Presidential Campaigns  Pre-convention Period Primaries are funded by money raised by candidates plus money received from the FEC. Primaries are funded by money raised by candidates plus money received from the FEC. To be eligible for the public funds and candidate must To be eligible for the public funds and candidate must raise at least $100,000 in contributions from INDIVIDUALSraise at least $100,000 in contributions from INDIVIDUALS In lots of $5000 in each of at least 20 statesIn lots of $5000 in each of at least 20 states Built from donations of not more than $250Built from donations of not more than $250 If meet this test, FEC will match the first $250 of each individual donation up to a total of half. Does not match contributions from PACs or political organizations. If meet this test, FEC will match the first $250 of each individual donation up to a total of half. Does not match contributions from PACs or political organizations.

14. Section 1—The Nominating Process Funding Presidential Campaigns  Each major party nominee automatically qualifies for a public subsidy-- 74.6 Mil. In 2004  If the candidate accepts the money: Can spend no more than the amount of the subsidy Can spend no more than the amount of the subsidy Can not accept campaign funds from any other source. Can not accept campaign funds from any other source.

15. Section 1—The Nominating Process Soft Money  Nature of the problem  Bipartisan Campaign Reform Act of 2002  Limits soft-money donations to political parties  Limits what parties can spend on campaigns