Campaign Financing

• Cost of Modern Campaigns• Campaign Reform Legislation

• Post-Watergate Reforms (FECA)• Bipartisan Campaign Reform Act (BCRA)

• Sources of Campaign Funding• Campaign Finance Regulation and the First Amendment

• The Rise of SUPER PACS• Public Funding of Campaigns

Total Federal Campaign Costs

2008 Presidential Elections

FECA & the BCRA• FECA

• Disclosure requirements• PACS: federally mandated, regulated fundraising organizations that

represent groups and can contribute directly to campaigns • Federal Election Commission to oversee regulations• Partial public funding for presidential campaigns• Contribution limits• Problems with FECA: Soft Money (issue ads/party building)

• BCRA• Limits soft money contributions to parties• Limits issue ads within 30 days of primary and 60 days of general

elections (overturned)• Limited amount of candidate’s own money that can be spent

(overturned)• Problems with BCRA: 527 and 501(c) organizations

Sources of Campaign Funding• Individuals• Parties• Political Action Committees• Member PACs• Personal Savings• Public Funds • Soft Money Groups

BCRA Individual Contribution Limits

Sources of Campaign FundingDirect Support• Individuals: See Chart• Parties: $5,000/election to House candidate and

$42,600/election to a Senate candidate• Political Action Committees: $5,000/election to a

candidate, $15,000/year to party• Member PACs: same as other PACs• Personal Savings: no limits• Public Funds: presidential election

Indirect Support• Soft Money Groups: 527 & 501(c) organizations• SuperPACs

How Do PACS Allocate Their Contributions?

527 & 501(C)ORGANIZATIONS

527 Ads

Super PACS• Colbert Super PAC website• Colbert Super PAC Power Transfer • Colbert Romney Ad• Current Super PAC Ads

Areas of Debate

• Should the government regulate campaign spending?

• Buckley v. Valeo: Are limits on campaign expenditures consistent with the 1st Amendment?

• Should we adopt a mandatory system of publically financed campaigns?