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Public Financing

The Real Deal

There's been a lot of talk lately about whether presidential candidates Obama and McCain have a "deal" to accept public funding if they are their parties' nominees.  What we should be talking about is why a "deal" has become necessary and why there is a serious risk that, if it ever existed, it will collapse under the weight of private money flooding the campaigns.  We also should be talking about what it means for our country that our leaders—President, Senators, Members of the House of Representatives—are dependent on funds raised from wealthy individuals and special interests to run for office.

For many years, every major-party candidate for president opted into our presidential public funding system to run his campaign.  There was no need to cut a deal.  There was enough money provided through the system to ensure that the candidates could vigorously compete. 

The presidential public funding system freed the candidates from the endless money chase.  They could spend their time talking to voters—and maybe even listening to them!—instead of ingratiating themselves to a minute clique of wealthy contributors with not-so-hidden agendas.  Because rich donors could not claim credit for the winner's success, there was reason to hope that the President would consult the interests of ordinary Americans when making national policy decisions.

Granted, some of the current candidates are less dependent on deep pockets than others.  But research released by the Campaign Finance Institute shows that, as of the end of 2007, only one candidate had raised even half of his funds from small donors-and he's not part of the "deal."  When all of a candidates' funds come from small donors or public financing, we'll have a lot less concern about who is likely to be pulling the policy strings. 

It is a simple matter to update the presidential public funding system provides so that it can provide the resources necessary for competitive campaigns.  There is already a bill that will do the job.  There is also a bill that would provide public funding for U.S. Senate, and there soon will be a House companion.  If our leaders can reach office without debts to donors, they are in a much better position to hear the voices of voters. 

The hope that our next President will listen to us should not be dependent upon a "deal" between two major contenders.  The candidates' "deal" should be with the people.  That is what democracy is all about.

Tags: Democracy, Campaign Finance Reform, Contribution Limits, Other Reforms, Disclosure, Public Financing

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Bloomberg’s Public Financing Misstep

Mayor Bloomberg recently complained publicly that a possible $90 million price tag might be too much to spend on providing public funds in municipal elections. He suggested a few changes to New York City's public matching funds system, stating: "If you don't have any competition, you shouldn't get money, and you shouldn't be able to hire relatives."

This is a tad misleading. Any candidate who is unopposed is ineligible for public matching grants. See New York City Campaign Finance Board Rules 5-01(i)(2). The Mayor may be referring to the more complicated problem of candidates who face only "nominal" opposition. Not being clairvoyant, there is no way for the Campaign Finance Board to know whether a candidate will garner 1 percent or 51 percent of the vote before the election. Therefore, it seems reasonable for the Board to continue to provide public funds to those who are opposed and withhold public funds from those who are unopposed.

As for hiring family members, any candidate in New York City is legally required to hire a treasurer for his or her campaign. For a small or a first time campaign, the only person willing to serve in this capacity might be a spouse or a sibling. Since candidates must have a treasurer, it makes sense that a treasurer who is a family member could be paid in part with public funds, once the candidate qualifies. But the Mayor may be right about compensating the other campaign workers who are not statutorily required. Using public dollars to pay a candidate's cousin to distribute campaign literature, when others would do it for minimum wage or on a volunteer basis, may not be the most prudent use of public funds.

However, with a proposed $9,989,000,000 (that's nearly $10 billion) budget for fiscal 2009, New York City could still definitely afford to spend $90 million (or less than one percent of its overall budget) on making its elections democratic.

Tags: Democracy, Campaign Finance Reform, Public Financing

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McCain’s & Obama’s Public Financing Pledge

For campaign finance junkies there were two very interesting reports out today.  One shows that Barack Obama raised a stunning $32 million last month.  And another shows that, until very recently, anyway, John McCain's campaign was virtually broke.

Does this tell us anything about how these two candidates might stack up against each other financially in a general election?  Maybe not.  An often overlooked deal between McCain and Sen. Obama last March to accept public financing if they both got their parties' nominations is suddenly seeming pretty important.

As David Kirkpatrick of the New York Times noted almost ten months ago:

"Such a pact would eliminate any financial edge one candidate might have and limit each campaign to $85 million for the general election. The two candidates would have to return any private donations that they had raised for that period."

But there's one more wrinkle to this story.  Just two days ago,  Politico reported that after a recent increase in fundraising (following his victories in New Hampshire and South Carolina) McCain is seeking to get out of the public financing program for the primaries.  The Federal Elections Commission might have to sign off on his exit from the program, which poses a problem given the current political stalemate handicapping the agency.

What this might mean for the "deal" struck between Obama and McCain regarding public financing for the general election is anyone's guess.

Tags: Democracy, Campaign Finance Reform, Public Financing

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The Alternative to Wooing Wealthy Candidates

*Cross-posted from The Huffington Post's Off the Bus 

You're way behind in fundraising for congressional races. The tide of public opinion is against you. What's a party to do? Recruit super-wealthy candidates, of course.

Last week the New York Times described the GOP's plan to seek candidates able to self-finance their campaigns to make up for relatively weak fundraising numbers. In the first 10 months of 2007, the Democratic Congressional Campaign Committee raised $16 million more than the National Republican Congressional Committee. The GOP's Senate committee raised just $26.3 million in the same period compared to the $45.1 million raised by its Democratic counterpart. Yet as the Times notes, the Democrats too have their share of deep-pocketed contenders.

The unabashed interest in wealthy candidates is one of this campaign season's most blatant signs that our system of choosing elected officials is broken. Instead of seeking out the brightest, most capable Americans to take on the tough issues facing our country, the parties are checking the wallets of potential candidates for American Express Black Cards.

So what's the alternative? Public financing of congressional elections. As we've seen on the state level in Maine and Arizona, public financing systems give candidates of any personal means the chance to attract public support and receive funds to run a competitive campaign. Public financing frees candidates from the pressures of fundraising, allowing sitting officials to concentrate on serving their constituents. Out on the trail, publicly funded candidates woo voters, not just big donors, by addressing the issues important to ordinary Americans. And individuals who would rather stick to the old system are able to opt out and raise funds privately.

A bill like the Fair Elections Now Act, introduced by Senators Durbin (D-IL) and Specter (R-PA), would go a long way toward making campaigns more about fitness for office and less about individual wealth or access to big donors.

Tags: Democracy, Campaign Finance Reform, Public Financing

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What to Do About Campaign Finance Loopholes

*Cross-posted from The Nation 

Let's set the record straight once and for all. The Supreme Court opened the soft-money floodgates in Wisconsin Right to Life v. Federal Election Commission last June, but it did not change disclosure rules. The real problem is that disclosure alone does not get us open, honest and accountable government, and closing every loophole won't either. What we need is public funding of federal elections, and we need it ASAP.

Contrary to a number of recent news reports (the New York Times article of November 12, "A New Channel for Soft Money Starts Flowing," is a good example), the Supreme Court has not sanctioned political advertising without disclosure. The Foundation for a Secure and Prosperous America would not be subject to disclosure rules for its current South Carolina ads featuring Senator John McCain, even if the Supreme Court had never decided the Wisconsin Right to Life case. (I leave aside the question whether the "foundation" should have been set up as a PAC.) The law that the Court reviewed does not kick in until thirty days before a federal primary election, and we're not there yet, even in South Carolina. When we do get there, the ad sponsors will be subject to the usual disclosure requirements. The Court did not touch them. (Not yet, at least.)

The June case was a challenge to a specific provision of the Bipartisan Campaign Reform Act ("BCRA," or "McCain-Feingold"), which barred corporations from using treasury funds for "electioneering communications"--certain political ads aired thirty days before a federal primary or sixty days before a general election. Wisconsin Right to Life is a nonprofit corporation that is covered by BCRA, and it wanted to use its treasury funds to run electioneering communications about Senator Russ Feingold and the filibuster of judicial nominations. The Supreme Court ruled that the ads were advocacy about an issue, not against Feingold, so the nonprofit could use its treasury funds for those ads.

Media critics are right when they report that the Supreme Court opened the door for more spending. It is fair to say, as the Times did, that "thanks to the recent Supreme Court decision," more soft money will start flowing. But the Court did not sanction secret financing of political advertising, and groups running electioneering communications should know that they are still required to disclose major donors and disbursements. In other words, if the South Carolina ads continue to run during the period thirty days before the state's mid-January primary, the undisclosed financiers of those ads will have to be disclosed (unless they contributed less than $1,000). If the advertisers don't disclose, they will violate federal law.

The media's relentless, and relentlessly narrow, focus on the ads and the spending obscures the deeper problem with our campaign finance system. We are fixated on the candidates' endless money chase and the expected flood of corporate funds into shadow campaigns. But we have forgotten why we care. The point is not to eliminate money from the political process but rather to ensure that we have open, honest and accountable government.

For that, we need fundamental reform, not just devices to close up loopholes. We need public funding of presidential and Congressional campaigns. With public financing of elections, elected representatives can respond to the interests of voters instead of worrying about the deep-pocketed donors on the lookout for loopholes.

Public funding won't stop the constant hunt for loopholes; that game will continue as long as wealthy interests want to influence politics. But loopholes just wouldn't matter as much if candidates had a meaningful alternative to private largesse. That option is public funding, and it is already working in states and localities around the country.

Federal bills have already been introduced for presidential and Congressional public funding. This is not rocket science. What are we waiting for?

Tags: Democracy, Campaign Finance Reform, Other Reforms, Disclosure, Public Financing

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Clean Money from “Corrupticut” to Congress

*Cross-posted from The Huffington Post 

Last night, a Republican was the victor in one of the most important political contests of 2007. With apologies to the debaters in Michigan, the contest last night with the most promise for a more accountable democracy was won by Jason Perillo. Perillo, a publicly financed Republican defeated a publicly financed Democrat in an historic special legislative election in a state, that just a few short years ago, was Exhibit A for the best government that money could buy. Our nation's political leaders, particularly those in Congress, and those traipsing through Iowa and New Hampshire, would do well to learn from a state that seized, rather than deferred, its reform moment.

A less likely catalyst for democratic change than Connecticut's 113th House District is difficult to fathom. Every two years since 1974 the people of the 113th-yes, the state ranked 48th in total area has 151 districts- elected, re-elected, and re-re-elected Republican Richard Beldon. Their unwavering and trans-generational loyalty made Beldon the longest continuously serving member in state house history. The last time someone other than Beldon won the 113th was the same day Richard Nixon defeated George McGovern.

But Beldon passed away earlier this year, and a special election was scheduled to replace him. Last night, that special election marked the first test of a landmark full public financing system enacted in the wake of state contracting scandals, corruption, and official resignations that left Connecticut's governor in prison. Candidates of both major parties participated in the program, eschewing special interest money in favor of untainted public funds.

Connecticut's public financing system, known as the Citizens' Election Program (CEP), is the first of its kind to be approved by incumbent legislators whose own elections could be affected. Similar public financing systems in Arizona and Maine were passed directly by voters via ballot initiative. In Connecticut, however, elected officials who had succeeded under the compromised status quo had the courage to strive-at their own risk-for a more open and competitive system. Because of that courage, a state that only recently was justifiably dubbed "Corrupticut" is now a model for states across the nation-and for the U.S. Congress.

As is true in Congress, the excessive influence of green in Connecticut affected those affiliated with both red and blue. Connecticut's many scandals resulted in the resignations Republicans and Democrats alike. Likewise, recent bribery, ethics, and contracting investigations involving members of Congress have involved powerful members of each major party. Viewed over time, one realizes that for every Randy "Duke" Cunningham yacht (R) there is a William Jefferson freezer (D) and vice-versa. In terms of the overall impact of a system of donor-capture on public policy, reciting just two notorious players from each party is akin to analyzing football teams by mentioning only their quarterbacks-the experts know that the truly severe problems are deep in the trenches and hidden from plain view. But the cross-party similarities of corruption in Connecticut and Congress underscore an important point: advocating for a government that is as responsive to mere voters as it is to donors should be a populist, not partisan push.

The people comprehend the problem. Nationally, in October of 2006, 75 percent of likely voters from across the political spectrum said that the problem of political corruption was "extremely important" or "very important" to them, while only 8 percent said it was only "slightly important" or "not at all important." And in a national exit poll of voters in the 2006 elections, "Corruption/Ethics" topped the list of issues cited as "extremely important."

The people also see the answer. 74 percent of those surveyed in a June 2006 poll said they supported a proposal for voluntary public funding of federal elections. Support included 80 percent of self-identified Democrats, 65 percent of Republicans and 78 percent of independent voters. The challenge is whether, as in Connecticut, understanding can be translated into action before it is too late. Because what happens to a reform moment deferred? Make absolutely no mistake: stakeholders in the status quo ensure that it dries up like the proverbial raisin in the sun.

Substantial steps are being taken to overcome that inertia. Most importantly, Senators Dick Durbin (D-IL) and Arlen Specter (R-PA) have introduced the Fair Elections Now Act. It is a federal adaptation of the "clean elections" models in place in Maine, Arizona and now, Connecticut. As is true in Maine and Arizona, where candidate participation and overall satisfaction rates are high, the federal legislation is much more than an anti-corruption measure. It also has the potential to invigorate public policy by emancipating even the best-intentioned politicians from the constant, unyielding tether of fundraising from the few, so that they might serve the many.

Consider that in the 2004 elections, less than 0.6 percent of Americans of voting age made a contribution to a candidate of more than $200, the threshold for public disclosure of donors. Then consider that the average House winner in 2006 spent $1.6 million and the average U.S. Senate winner in 2006 spent $9.6 million. The unavoidable consequence is that, on average, starting immediately upon election, the average House member must raise more than $1,000 per day, and the average U.S. Senator must raise more than $3,000 per day in order to sufficiently wage their next campaign. Still more to the point, nearly all of that fundraising comes from that same 0.6 percent of Americans. Even setting the anti-corruption interest aside, is it really a surprise, in such circumstances, that so many of our public policies reflect a compromised process, rather than a process of compromise?

The CEP will be available for all major party candidates and qualified minor party candidates for the legislature in 2008. For the citizens of the 113th, who now have their first new representative since just after Nixon's resignation in 1974, change was inevitable. For Connecticut, passing the CEP was anything but. It represented a difficult, sustained, and finally successful effort to turn scandal into progress. The result is a dramatic departure from the mores that gave rise to another resignation-then-Governor Rowland's in 2004. The Constitution State seized its reform moment, and seized back its good name. The time is now for Congress to do the same.

 

Tags: Democracy, Campaign Finance Reform, Public Financing

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Bringing Democracy to the Courts

*Cross-posted from The Huffington Post 

The desultory fight over Samuel Alito's nomination to the Supreme Court didn't exactly create a "teachable moment" on the central role of courts in our lives. But there's a sharp and growing debate in the states over an issue just as profound for democracy: How do we pick judges? How can we ensure they provide equal justice, rather than merely mimicking the special interests that put them on the bench?

This issue was thrown into sharp relief in a landmark ruling in New York recently. Last month, federal Judge John Gleeson overturned the state's system for picking Supreme Court judges. (That's what New Yorkers call trial court judges. Here in the Empire State, we think big!) These jurists are picked in an arcane system that wouldn't appear out of place in On the Waterfront. Even though there is an election in November, voters don't really get to choose the candidates. They're picked by local party leaders. The Brennan Center for Justice at NYU School of Law represented a brave local judge, Margarita Lopez Torres. She refused the corrupt Brooklyn Democratic boss's demands that she hire an underqualified-but-highly-connected law clerk, and was denied a place on the ballot. In her lawsuit, the federal judge ruled that the entire state's system needed to be overhauled, starting with fair primary elections. Meanwhile, the party boss is headed to jail for corruption.

Real primaries where voters have a real say is a good start, and certainly is better than boss-run courts. But we can do more. In particular, campaign reform makes at least as much sense for judicial races as for their congressional cousins.

A recent incident in Illinois showed the problem. A class action suit against an auto insurance company worked its way up through the courts. The appeals court - one level below the state Supreme Court - ruled for plaintiffs. Soon after, a new Justice was elected to the top court. Both sides in the case had poured funds into the race. The candidate who got over $1 million from the defendant's employees and its allies won. When the state's top court heard the case, the new Justice refused to recuse himself and cast the deciding vote on a $450 million claim for the insurer. This kind of ethical morass happens all the time, when judges are forced to raise funds from people or interests who practice in front of them. It's especially acute in big statewide races, where justices run in high-stakes, highly-funded campaigns. The U.S. Supreme Court may hear this case. We weighed in to ask the justices to decide whether the Constitution's requirement for due process means a judge should refrain from hearing a case like this.

Another solution is even broader. A state as Red as North Carolina recently enacted public financing for judicial races. Short of that, the Supreme Court can make clear that states can set spending limits for judgeship candidates. As you Con Law buffs will remember, Buckley v. Valeo held it was OK to pass laws that limit corruption, but the mandatory spending limits in federal law weren't needed and thus were off limits. Vermont recently passed mandatory spending caps, and to no one's surprise, the Court is deciding whether they are constitutional. We represent a group of current and former state court judges, who urge the Supremes to give states the chance to set mandatory caps for judicial elections.

In the end, the U.S. Supreme Court will help decide whether we can free state courts from the same special interest influence that has led to so much loss of trust in Congress. In what will be either sweet or bitter irony, Justices Roberts and Alito will now help decide whether the thousands of state judges can provide what the motto promises on the Supreme Court building: Equal Justice Under Law.

Tags: Democracy, Campaign Finance Reform, Public Financing, Fair Courts, State Judicial Elections

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