Campaign Finance Loopholes
Monday, December 28, 2009
Build a better mouse trap, and inevitably someone will build a better mouse. That’s the conundrum facing campaign finance advocates who, despite getting numerous laws in place at the state and federal level to limit big money contributions, have watched politicians and their allies figure out crafty ways of skirting the rules.
A new study by the Center for Governmental Studies (CGS) offers several prime examples of how elected officials have managed to legally receive six-figure donations from special interests that ordinarily are banned. For instance, Governor Arnold Schwarzenegger is prevented under California law from directly accepting more than $25,900 from each contributor during an election cycle. But through his ballot measure committee, “Schwarzenegger’s California Dream Team,” the GOP governor has taken in eight contributions exceeding $100,000, 15 contributions of $100,000, 16 contributions between $50,000 and $100,000, and 44 contributions between $25,000 and $50,000.
Another way of avoiding campaign finance limits is through inaugural committees. Republican Governor Sonny Perdue of Georgia legally received $200,000 from AT&T in 2007, “four times as much as any other donor and 20 times what the corporation could have donated directly to the governor’s reelection campaign,” according to the Center.
CGS proposes a law that considers almost all funds raised by politicians, campaign and non-campaign, subject to contribution limits. Opponents of campaign financing reform claim that it is a violation of the First Amendment.
-Noel Brinkerhoff
Politicians Evade Contribution Limits Using Loopholes in Laws: Unlimited Sums Can Still Flow into Many Political Funds (Center for Governmental Studies)
Loopholes, Tricks and End Runs: Evasions of Campaign Finance Laws, and a Model Law to Block Them (Center for Governmental Studies) (pdf)
Study: The First Amendment is a Loophole (by Jeff Patch, Center for Competitive Politics)
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