Chapter 7 sec 3 government

1. Money and Elections
Senior Government

2. Why so Much Money?
Parties and candidates must have money,
without it, they cannot campaign.
-“Won't politicians buy their way into
office?”
-“Will special interest groups buy favors?”
-“Does this corrupt the election process?”

3. Campaign Spending
See page 197
The presidential election eats up the most
spending.
Congressional campaigns has doubled
since the 2000's.
$=radio and tv time, managers,
consultants, newspaper ads, pamphlets,
buttons, posters, stickers, office rent, web
sites....etc.!

4. Sources of Funding
Parties and candidates draw money from
private contributors and the public treasury.
Private and Public Groups:
-Small Contributors
-Wealthy individuals or families
-Candidates themselves!
-Political Action Committees (PACs)
Political arms of special interest and other
organizations with a stake in electoral
politics
-Temporary Organizations-fundraisers

5. Public Funding
Comes from subsidies-a grant of money,
usually from a government.
-Come from federal and state treasuries
-Very important at the presidential level.

6. Regulating Campaign Finance
First regulations in 1907
Today: Federal Election Campaign Act
(FECA)
-Response to Watergate Scandal
-Attempt to also close soft money
loophole
Congress does NOT have the power to
regulate the use of money in State and
local elections. They do this on their own!

7. Federal Election Commission
(FEC) administers all federal law dealing
with campaign finance.
-Independent agency of the executive
branch.
-Still somewhat ineffective
Requires timely disclosure of campaign
finance data
Places limits on campaign contributions
Places limits on campaign expenditures
Provides public funding for several parts of
the presidential election process

8. Requirements
Disclosure Requirements
-Spotlight the money in federal campaigns
No contributions in the name of another
group, no cash gifts over $100, no foreign
money
Limits on Contributions
-Individual=no more than $2100 in primary
and no more than $2100 in the election.
-Total limits = $101,400 in an election
cycle
PACs have limits, but they spread out
contributions.

9. Continued
Party nominees can spend no more than
$74.6 million
Presidential Election Campaign Fund
-Every person who pays income tax can
check off to donate up to $6 to the fund
-They finance conventions and elections

10. Hard $ vs Soft $
Hard Money
-Money raised
and spent to
elect
candidates for
Congress and
the White
House
Soft Money
-Funds given
to party
organizations
for such
“party-
building”
activities as
recruitment
and
registration
-Most
problems exist
here!