MONEY & POLITICS

HOW MUCH $ WAS SPENT IN PRESIDENTIAL ELECTION BETWEEN BUSH & KERRY

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WHERE DO THEY GET ALL THAT MONEY? PRIVATE CONTRIBUTIONS:

• 1.Small ($5-10) 10% of voters
• 5.Temporary Fund-raising organizations •Social events •Telethons •Internet •Direct Mail
• 2. Wealthy Individuals and Families
• 3. Candidates and their Families
• 4. PACS

WHERE DO THEY GET ALL THAT MONEY? PUBLIC FINANCE:

• Subsidies (Grants)

PER CAPITA SPENDING

• 1960 -- $2.54 per voter
• •1980 -- $13.87 per voter
• •2000 -- $49.92 per voter

HARD MONEY VS. SOFT MONEY

• Hard Money= money raised and spent to elect Congress and President
• Soft Money= funds given to party organizations to “promote the party”
• – Candidate recruitment –Voter Registration –Get on the Vote Campaign

FEC FEDERAL ELECTION COMMISSION

• Require the timely disclosure of campaign finance data
• Place limits on campaign contributions
• Place limits on campaign expenditures
• Provide public funding for several parts of the presidential election process

1. DISCLOSURE

• No one can contribute in the name of another
• $5,000 or greater reported within 48 hrs.
• $1,000 within 20 days of election.
• •No cash gifts greater than $100
• Loans/contributions >$200,note source/date

2. CONTRIBUTIONS LIMITS

• No person can contribute more than $2100 for primary, $2100 for general election.
• No person can contribute more than $5000 to a PAC
• No person can contribute more than $26,700 to national party committee
• Total max per federal election cycle, $101,400
• No corporate or labor union contributions (only PACs)

3. EXPENDITURE LIMITS

• Supreme Court ruled limits unconstitutional (violation of the 1st Amendment)
• Can be limited if candidate accepts FEC subsidies
• Limits (2004) PRECONVENTION $37 MILLION General Campaign $74.6 million
• Can collect up to $18.6 m primaries, $75m general

4. PUBLIC FUNDING

• Taxpayers can designate up to $6 of their tax refund to public funding
• Complicated criteria to qualify