2. 1 Civic Education Workshop Day 2: Campaign Spending

3. 2 Party Control of Elections Parties used to control, but no longer control: Patronage jobs Information (the press) The Ballot The Nomination Process

4. 3 Party Control (cont.) When parties had tighter control of elections, there was less uncertainty, which meant less money was needed They raised all the money they needed from “taxing” patronage jobs More uncertainty means candidates want to spend more on their elections Simultaneously, TV emerged, which is very expensive

5. 4 Importance of Money Allows you to run media-based campaigns Viewed by the press as an indicator of credibility Allows you to deter potential challengers

6. 5 Two kinds of Money Hard Money Size of contributions and disclosure of sources regulated by the Federal Election Commission Goes to Candidates Comes from National Parties, PACs, and individuals Spent on “express advocacy” for a candidate

7. 6 Two Kinds of Money (cont.) Soft Money Size of contributions unregulated Goes to Party committees (not candidates) Comes from corporations, unions, interest groups, and individuals Spent on “party building” and “issue advocacy” According to Common Cause, Parties have raised nearly $100 Million in the first six months of 2001-2002 Election cycle (GOP with two-thirds of it)

8. 7 Current Law on Contributions Individual Contributions $1,000 to candidate per election $20,000 to national party per year $5,000 to other political committee per year PACs $5,000 to candidate per election $15,000 to national party per year $5,000 to other political committee per year

9. 8 Proposed Reforms Proposed reforms Ban soft money contributions to parties Increase hard money contribution limits Leave PAC hard money rules unchanged Restrict “electioneering” ads run by corporations and unions close to an election Signed into law, but NOT for 2002 Are being challenged in the courts

10. 9 Taking Sides on the Reforms Supporters Say Makes large donations harder to make Increases disclosure of who pays for what Shifts party activity from large donors to grass- roots efforts Opponents Say Limits free speech and association Harms Political Parties Restricts State’s Rights to regulate elections