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The People's Business
(A Time for Change)

 

Part 2: Campaign Finance

 

Highlights of the History of
Campaign Finance Law

 

Public Funding

 
         
 
Campaign Finance – Ensuring Integrity in Elections


We notice two aspects of our current campaign process that are particularly bothersome:

1.     Campaigns go on too long.

2.     Campaigns are too expensive.

 


Why is the length of the campaign a problem?  Because it takes time away from doing the People’s Business.  This problem is deeply intertwined with the issue of Term Limits.  If we establish a limit of just one consecutive term for every federal office, this eliminates the problem of elected officials campaigning while in office.

Why is the expense of the campaign a problem?  The amount of money that goes into federal elections is obscene and it’s a waste.  For example the total net expenditure reported by all candidates during the 2007-08 presidential election was over $13 billion; the total net expenditure for the 2007-08 and 2009-10 senate races, which filled 72 of 100 seats, was over $1 billion; and the total net expenditure for the 2009-10 house elections was just under $1 billion.  What could we do with an extra $15-$16 billion dollars?

To put this amount of money into perspective, the President’s proposed budget for fiscal 2013 includes “$30 billion to modernize at least 35,000 schools…. $2.2 billion for advanced manufacturing R&D… and funding for biomedical research at NIH ($30.7 billion)....”   Based on these figures, with the money currently being spent on campaigning, we could modernize 17,500 schools, completely fund the manufacturing R&D effort, or provide half the funding requested for National Institutes of Health biomedical research.

Laws and Loopholes

A variety of laws have been passed, starting in 1867, to try to control the federal campaign process.  The purpose of these regulations has been to try to ensure the integrity of our elections by limiting contributions (and therefore influence) from the very wealthy and special interests, by controlling campaign funding sources and expenditures, and by requiring public disclosure of campaign finances.

There was little enforcement of any regulation until the Federal Election Commission was created for that purpose by the 1974 amendments to the Federal Election Campaign Act of 1971.  The 1974 amendments also established the system currently used for public financing of presidential elections and set limits on both contributions and expenditures in all Federal elections.

These limits immediately became the subject of a challenge in the Supreme Court in a case known as Buckley v. Valeo, which was decided in 1976.  The Court upheld the contribution limits as being necessary to safeguard the integrity of elections, but found that limits on expenditures, except by publicly financed candidates, abridged free speech. 

The Federal Election Commission was responsible, in a 1978 administrative ruling, for creating the distinction between “hard” and “soft” money.  It declared that the funding rules established by law only applied to political campaigns and not to “party building” activities.  “Hard” money was money acquired and spent according to campaign finance law, and “soft” money was unregulated.  Unfortunately, the FEC never clearly defined what a “party building” activity was.

Years later, during the 1987-88 presidential campaign, both parties discovered a loophole in the 1978 ruling, and “issue ads” were born.  Issue ads fell through the cracks of the law; they could say everything a campaign ad could, except “vote for candidate X.”  Since these ads supposedly did not promote a particular candidate, they could be paid for with soft money, which is much easier to get in large quantities than hard money, which has limits on both donation size and source.

The Bipartisan Campaign Reform Act of 2002 (BCRA), also known as the McCain-Feingold Act, attempted to regulate soft money and issue ads.  Again the Supreme Court got involved, and in a 5-4 decision known as Citizens United, it struck down major portions of the BCRA which it considered to unconstitutionally limit free speech.  In equating monetary expenditure with free speech, the court favored the deep pockets of PACs, unions, and other corporate entities to influence elections.  In addition, in deciding in favor of the “free speech” rights of corporations, this ruling took the step of granting Bill of Rights protections to non-persons.  Shortly thereafter, the Court of Appeals ruled in another case, SpeechNow.org v. Federal Election Commission, that PACs which only made “independent expenditures” could accept unlimited donations.   These two rulings combined to allow the creation of what we know as “Super PACs.”

Recently the Supreme Court again stepped in, invalidating a 100-year-old Montana law regulating corporate contributions at the state level, and opening the way for Super PAC involvement in state and local elections.

Our Conclusion

It appears to us that the courts, the PACs and the parties are the obstacles to a fair and commonsense electoral process.  There are no proposals currently before Congress, however, though Senator McCain, co-sponsor of the Bipartisan Campaign Reform Act of 2002 (BCRA), has been highly critical of recent developments and recent court rulings regarding Campaign Finance.   (VIEW PROPOSALS)

The Supreme Court has not even been consistent in its opinions.  The justices overturn the Bill of Rights when it pleases them, in the name of “the government’s interest” … for security (as in the recent strip-search ruling) or for the integrity of elections.  But they don’t see, or won’t recognize, that expenditures affect elections just as much as contributions.

Public funding is a good idea that doesn’t function in the political environment today.  Public funding won’t work unless all the candidates accept it.  A publicly funded candidate cannot compete in a world where money can buy as much “free speech” as an organization can afford.

 
Since the Supreme Court is so deeply involved in this issue, it will take a constitutional amendment to enforce limitations on campaign finance.  We need to follow the 1907 recommendation of President Theodore Roosevelt, who said that federal elections should be publicly financed and that there should be a ban on private contributions.  And we add, in the interest of protecting the integrity of our elections, we also need to place limits on PAC spending.
 
 

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Copyright 2012-13  Beaver Street Gallery
Last modified: July 20, 2013

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