Campaign Finance

What is it?

• The amount of money a candidate raises and

spends on campaigning for elections

Campaign Spending

• Running for public office costs money

• Money is absolutely necessary for running for

office

– Without money you will not get elected

Problem

– The obtaining and spending off campaign funds

can be corrupt and excessive

Campaign Budgeting

TV and radio= 40-50%

Polling= 5-10%

Paid Staff= 5-10%

Candidate Travel= 5-10%

Fundraising and solicitation= 20-25%

**Average Total amount spent= $1 Billion**

**2012 Presidential Election = aprrox. $6 Billion**

2008 and 2012 Campaign Spending

• 2008 Presidential Campaign Spending

• 2012 Presidential Campaign Spending

Sources of Funding

1. Small Contributors– Those who give $5-$100 in cash

– 10% people actually do this

2. Wealthy Individuals of Families– “Fat Cats”

– Can give up to $2,500 per candidate per election

– Can give up to $5,000 per year to any PAC or interest group

– Can give up to $10,000 per calendar year to state of local party committee

– Can give up to $30,800 to a National Political Party

– Can give up to $117,000 total over 2 years

3. Candidates

– Individual candidates use their own money

– Ross Perot (1992) holds all time record, used $65

million of his own money

4. Political Action Committees (PACs and Super PACs)

– Funding vehicles through large corporations

– Channel money to candidates

– Individuals can give no greater than $5,000 to

PACs

– No regulations on PACs, or how many a

corporations can have

5. Temporary Organizations

– Groups formed for the immediate purpose of getting the candidate elected

– Fund-raising

• Dinners, door to door, receptions, phone

6. Party Donations

– Democrat and Republican parties can give to their candidate

• Soft Money = money given to the political party, indirectly give money to the candidate

• Hard Money = money given directly to candidate

7. Federal Funding

– Public Funds

– Government gives money to each candidate

whose party has received at least 5% of the

popular vote in a previous election

Regulating Campaign Finance

Federal Election Commission (FEC) – 1974

• Composed of six members, 3 Democrats and 3 Republicans– Appointed by President and approved by Senate

• Enforce limits on individual and organization contributions

• Administers federal funding for candidates

-5% rule

• Places limits on campaign expenditures

• Records contributions and money spent by each candidate

Ways around the FEC

• Donate large amounts of money to the Political parties

– Indirectly goes to candidate you want (ear mark)

• Issue Advocacy Ads

– Special Interest groups, Corporations, PACs, Super PACs

– Create commercials and ads supporting the candidate

• Cannot say for or against candidate

• Must say at the bottom which candidate the ad is for

• Does not have to include who financed the ad

• Donate large amounts of money to PACs

– Can donate to as many as you want

Challenging FEC rules

Buckley v. Valeo – 1974

Question?

• Should the Federal government limit the amount of your own money you can spend on your campaign?

Answer

• No, this is violation of the 1st Amendment, freedom of expression

Watergate Scandal

– Brought campaign finance under investigation

– Reason for stricter laws and regulations