Campaign Finance Humor

Milestones in Campaign Finance

• 1971 Watergate: “Hush Money” Burglers hired by CREP. FEC created and spending limits.

• 1979 – 2002: Soft Money Era . Lincoln Bedroom visits. Ends with McCain-Feingold Act

• 2007 onward – Whittling begins. Soft money returns: 527s, “issue ads” and others grow.

Citizens United v. FEC 2010• Corporations and unions

can spend unlimited amounts from their treasuries on vote for/vote against independent ads.

• Cannot coord with candidates nor donate directly. Must disclose.

• Before: Only through PACS

• Opened era of Super Pacs and explosion of “Dark Money.”

• More big money influence

Citizens United

• President Obama called the Citizens United decision: “a major victory for big oil, Wall Street banks, health insurance companies and the other powerful interests that marshal their power every day in Washington to drown out the voices of everyday Americans

Hard Money is the Best • Under federal law, an individual in the 2016 election

cycle may contribute: – $2,700 to a candidate per election (primary and general are

considered two different elections)– $33,400 to a national political party committee per year– $5,000 to a PAC per year

•A PAC may contribute: – $5,000 to a candidate per election (primary and general) – $15,000 to a political party per year– $5,000 to another PAC per year

Bigger and Darker Money

• 501 C’s NON PROFITS • tax exempt• IRS code• varying political

involvement • 527’s tax exempt

under IRS rules • SUPER Pacs

Campaign Money with No Fingerprints

• https://www.youtube.com/watch?v=vVe7galMGuc

• http://www.nytimes.com/2015/06/03/us/politics/poll-shows-americans-favor-overhaul-of-campaign-financing.html?hpw&rref=politics&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well

Levels of Giving

• http://www.nytimes.com/imagepages/2010/09/21/us/politics/21money-graphic.html

Other terms

• Bundlers • PACS and Leadership

PACS• Party Committees• Public Matching

Funds

2012: The Most Expensive in History

• $6.3 billion

• ($300 million from outside groups)

The Big Givers

2012 Presidential: $1 Billion candidate spending

• https://www.opensecrets.org/pres12/#out

• Candidate $540.8 $336.2• Party $292.2 $386.2 • Outside $131.3 $418.6

• Total $964.3 $1.141 billion million

2016: Outside money (top) Candidate money (bottom)

Jeb Bush (R) $103,222,384$24,814,730

Hillary Clinton (D) $20,291,679$77,471,604

Ted Cruz (R) $38,655,257$26,567,298

Bernie Sanders (D) $25,044$41,463,784

Ben Carson (R) $7,295,668$31,409,509

Marco Rubio (R) $17,315,782$15,515,638

                                                                                                                                                                                                                                                                                                                                                                                                                                                               

And what about Donald Trump?

Donald Trump (R) $0$5,828,922

Outside groupsCandidate

Outside spending so far – incomplete disclosure

Not coordinated with candidate -- issue ads – not full disclosure

Type of Group Total Spent # of GroupsRegistered

# of GroupsSpending to date

Super PACs $95,079,020 1,702 65

Social Welfare 501(c)(4) $1,991,529 N/A 6

Trade Assns 501(c)(6) $2,965,477 N/A 1

Unions 501(c)(5) $0 N/A 0

Parties $570,166 72 4

Other (corporations, individual people, other groups, etc) $2,822,556 185 38

Grand Total: $103,428,748 2,026 114

Super Pacs 2016: Spent and Raised Right To Rise USA

supports Bush $52,247,651 Conservative $103,167,845

America Leads supports Christie $10,734,898 Conservative $11,003,304

Conservative Solutions PAC

supports Rubio $8,685,534 Conservative $16,057,755

New Day For America

supports Kasich $4,371,997 Conservative $0

Club for Growth Action

$3,759,266 Conservative $2,844,708

Security is Strength

supports Graham $3,504,375 Conservative $2,897,435

Believe Again supports Jindal $2,634,873 Conservative $3,685,918

New Day Independent Media Cmte

supports Kasich $2,489,336 Conservative $0

Families funding the race

• The 158 families each contributed $250,00 or more in the campaign through June 30, according to the most recent available FEC filings and other date, while an additional 200 families gave more than $100,000.

• Together the two groups contributed well over half the money in the presidential election – the vast majority of it supporting Republicans.

Families Mostly Backing Republicans

• Republicans: 138 Democrats: 20

What to look for: Giving and Spending

• GIVING • Patterns: regions, industries,

issue groups• Outliers, and oddities• Big v Small donors• Bundlers• Fed/State/Local races• New techniques and

colorful events (lavish excess)

• Periodic reports

• SPENDING • Air war v. ground war• Who’s getting rich

(consultants, ad buyers, pollsters)

• In what states• Big Data• Conventions,

Inaugurations • Burn Rate

SOURCES

• http://www.fec.gov/index.shtml

• https://www.opensecrets.org/

• http://sunlightfoundation.com/

• http://www.followthemoney.org/

handouts

• http://www.nytimes.com/imagepages/2010/09/21/us/politics/21money-graphic.html

• Also john edwards story and political consultants stories in gmail.

Super Givers So Far

Organization Total View* IndependentExpenditures

ElecComm

CommCosts

SuperPAC 527s† 501c

Right To Rise USA $44,541,053 C $44,541,053 $0 $0 x

America Leads $10,716,610 C $10,716,610 $0 $0 x

Conservative Solutions PAC $5,391,895 C $5,391,895 $0 $0 x

New Day For America $3,972,097 C $3,972,097 $0 $0 x

Club for Growth $3,834,726 C $3,834,726 $0 $0 x

VIEW ALL GROUPS