Campaign Finance Options: Public Financing and Contribution Limits Wendy Underhill Program Manager Elections National Conference of State Legislatures prepared for Oregon s Joint Interim Task Force on Campaign Finance Reform November 19, 2015
What Does NCSL Do? Serves 7,383 legislators and 25,000 legislative staff Provides non-partisan research & analysis Links legislators with each other and experts Speaks on behalf of legislatures in D.C.
Campaign Spending In 2012, $10.7 billion spent on all state races and above In 2014, $8.4 billion was spent Highest: California $551 million Lowest: Vermont $5.1 million Spending on Halloween: $7.4 billion
Campaign Finance Regulation Public Financing Contribution Limits Disclosure and Reporting Requirements
Public Finance Options
Public Financing
Clean Election Programs Arizona Connecticut Maine New Mexico (only for judges)
Case Study: Maine Adopted its Clean Election Fund 1996 Voters increased the funding in 2015 Legislature asked for the increase
Case Study: Connecticut Citizens Election Fund started 2008 Up to $6.5 million for a gov. candidate Funded by sale of abandoned property The citizens seem to support it
Matching Fund Programs Florida, Maryland, Massachusetts, Michigan, Minnesota, Vermont and West Virginia Funds often come from a tax checkoff or through a tax return donation
Case Study: Maryland Fair Campaign Financing Fund Only applies to Governor and Lt. Governor Match dollar for dollar (caveats apply)
Case Study: Hawaii Legislature sets a voluntary funding cap Matching funds available up to 10% Funded by voluntary $3 tax check-off
Case Study: New York City Matches 6:1 for donations up to $175 Must take part in a debate Must agree to disclosure requirements and spending limits
Case Study: Seattle 2015 local ballot initiative Created vouchers that citizens can use as campaign contributions $100 (or four vouchers) The yes vote was 63 percent Candidates can opt out
Wendy Underhill National Conference of State Legislatures 7700 E. First Place, Denver, CO 80230 303-856-1379 (o) 303-802-6673 (c) www.ncsl.org Wendy.Underhill@NCSL.org
Contribution Limits
No Limits on Individual Donors
Contribution Limits Outline Contribution Limits and the Supreme Court Federal Contribution Limits State Contribution Limits Recent State Legislation
What does SCOTUS Permit? Contribution limits that Are not too low Don t limit total contributions from a donor Don t effect independent expenditures
Federal Contribution Limits
State Contribution Limits States may place limits on contributions to candidates from: Individuals State Parties PACs Corporations Unions
Individual to Candidate Limits National Average National Median Highest Limit $50,000 (New York) Lowest Limit $500 (Alaska) Governor State Senate State House $5,619 $2508 $2,375 $3,800 $1,000 $1,000 $12,532 (Ohio) $170 (Montana) $12,532 (Ohio) $170 (Montana)
State Party to Candidate Limits 18 states have no limits 28 states have limits Illinois, Kansas, New Hampshire and New York allow state parties to donate unlimited sums sometimes.
PAC to Candidate Limits Most states PAC-to-candidate limits are the same as individual-to-candidate limits 9 state have higher limits for PACs Only one state is lower Massachusetts
Corporation/Union to Candidate Limits Unlimited Corp. To Candidate Alabama Missouri Nebraska Oregon Utah Virginia Prohibited Corp. to Candidate Unlimited Union to Candidate Alabama Iowa Mississippi Missouri Nebraska Oregon Utah Virginia Prohibited Union to Candidate Alaska Colorado Connecticut Iowa Kentucky Massachusetts Michigan Minnesota Montana North Carolina Ohio Oklahoma Pennsylvania Rhode Island South Dakota Texas West Virginia Wisconsin Wyoming Alaska Connecticut Michigan New Hampshire North Carolina Ohio Oklahoma Pennsylvania Rhode Island South Dakota Texas Wisconsin Wyoming
States That Adjust for Inflation
Spotlight on Surrounding States: Washington Individual Candidate Limits $1,900/election for governor $950/election for legislator Additional restrictions exist during the 21 days prior to an election
Spotlight on Surrounding States: More on Washington PAC Candidate Limits Same as individual limits Requires a Washington connection
Spotlight on Surrounding States: Still More on Washington Union/Corporation Candidate Same as individual limits Requires a Washington connection
Spotlight on Surrounding States: Idaho Individual Candidate Limits $5,000/election statewide $1,000/election legislative State Party Candidate Limits $10,000/election statewide $2,000/election legislative PAC, corporate and union limits are the same as individual limits
Spotlight on Surrounding States: California Individual Candidate Limits $28,200/election gubernatorial $7,000/election other statewide $4200/legislative State Party Candidate Unlimited
Spotlight on Surrounding States: More on California PACs Candidate Limits Regular PACs: same as individual limits Small Contributor Committees: $28,200/election gubernatorial $14,100/election statewide $8,500/election legislative Corporations/Unions Candidate Same as individual limits
Spotlight on Surrounding States: Nevada Individual Candidate Limits $5,000/candidate/election Has Limits on PAC, state parties, corporations and unions--same as individual limits
Spending on Legislative Seats Idaho: $17,419 Nevada: $64,754 Washington: $67,605 Oregon: $119,463 California: $377,642 Source: National Institute on Money in State Politics
States That Have Raised Contribution Limits in the Last 2 Years Alabama Arizona Connecticut Florida Maryland Massachusetts Minnesota Nebraska North Carolina Oklahoma Vermont Wyoming Michigan
Besides Raising Limits, What Else Are States Considering? Adjusting for inflation Lowered the reporting threshold Addressed independent expenditures Addressed enforcement/penalties
Enforcement Who will do it? What will the budget be? How much authority will they have? Is it insulated from partisan pressures?
Wendy Underhill National Conference of State Legislatures 7700 E. First Place, Denver, CO 80230 303-856-1379 (o) 303-802-6673 (c) www.ncsl.org Wendy.Underhill@NCSL.org