Congress and Fundraising

Opportunities to discuss course content

• Thursday 10-2

• Friday 10-12

Learning Objectives• Analyze the theories of why people vote and

apply them to the 2012 Election.

• Evaluate the strengths and weaknesses of how presidential and congressional elections are financed.

PUBLIC FINANCING IN 2012

Government Money in the Primary

• Federal Money is available in primary and general election

• There are Eligibility Requirements, caps on spending, and caps on raising.

• 22 million from the G, and 55 million cap on spending

Federal Money in the 2012 Primaries

• In 2012, no one accepts it

• Candidate strategy helped end this

Public Funding for General Election

• Each candidate could receive 91 million in public money

• It doesn’t kick in until you are officially nominated

• This money served to reduce campaign costs and remove any potential for corruption

At the Presidential Level

This is Hard Money

WHY DO I NEED IT AND WHERE DO I GET IT?

Money

Why I Need Money to Run for office

• It buys advertising and mobilizes voters

• It converts itself

• In Scares away challengers

I Will Lose Without it

• There is no public money available or it is foolish to take it

• The Cost of Winning a seat

– 1.3 Million in the House– 7 Million in the Senate

WHERE WE GET OUR MONEY

Sources

• Individuals

• Parties

• Pacs

• Third Party Groups

How Much Can People Give?

Political Parties

The Role of the Internet

• Publicity

• Instant Access

• Low Opportunity Costs

• Currently favors the Democrats

Political Action Committees

• The Money Giving Arm of an Interest Group

• Can Give $5,000 per candidate per election

Different PACs have different Goals

• Issue PACS

• Labor PACS

• Ideological PACS

• Leadership PACS

PACS Give to Safe Seats

• Money flows to safe seats

• Giving money to losers has no return on investment

• If I wanted to buy seats, I would give to underdogs and closer races

Why do I give to Incumbents of any party?

• I care about the issues, not the label

• I want to keep my supporters in office

• Keep my enemies out

PACS Give to People Who Already Support them

• “Corporations Love Everyone”

• You want them to get reelected

• You want them to continue to support your ideas

Donors Do not Try and “Switch” People

• My money is not going to change their votes

• They won’t take my money anyway

If Money Buys votes, why don’t I give to undecided members

• Money could convince them to vote my way

• But what if it doesn’t

• Its safer to hang on to it

If I wanted to Buy Votes? Than why do I give to my friends?

• I give my money to my strongest supporters

• You want them to get elected and reelected

• You want them to continue to support your ideas

In Texas

Ted Cruz Paul Sadler

The Goal Of My Money

• Access

• A chance to meet with legislators

• Ensure my views are represented

NEW MONEY IN ELECTIONS

Citizens United vs. Federal Election Commission

• Corporations and labor unions can spend unlimited amounts of undisclosed money to call for the election or defeat of candidates all the way to election day.

• Can include the magic words

• Cannot be in conjunction with a candidate or party

Independent Expenditures in 2010

From The Right From The Left

Super PACS• Created by Speechnow

Decision

• Can collect unlimited amounts of disclosed money

• Can collect from “non-profits” who don’t

• Must be independent and can use magic words

501(C) “nonprofits”

• Can Spend Unlimited Amounts of Money

• Do not have to disclose their donors

• Can’t use the magic words

• Can’t be primarily engaged in politics

Top 501(c)’s

Karl Rove: Best of Both Worlds

American Crossroads Crossroads GPS• Super Pac

• Must Disclose Donors

• 501 (c)

• Doesn’t have to disclose donors

• Can give to other 501(c) groups as part of social welfare goal

Sheldon Adelson

• 92 Million total

• 20.5 Million went to Newt Gingrich

• The biggest donor of 2012

The Super Donors

OUTSIDE SPENDING IN 2012

Top Outside Spenders: 2012

Outside Spending in 2012

Advantages of Super Pacs

• They Can Spend the Unlimited Amounts

• Level the Playing Field

• Say things that a candidate would never say

Disadvantages of Super Pacs

• Message problems

• Cost-effectiveness

Impact of the Super-pacs

• GOP outspends 2-1, but Hard Money is still better

• Tend to give to ideologically pure and long-shot candidates

• Will have to re-evaluate themselves

THE ELECTIONThe Republicans

The Republicans

• Romney

• Perry

• Gingrich

• Santorum

Obama’s Super Pac Strategy

• Previously

• If You cant beat them, join them

• Creates a super pac

Obama in the Summer

• Preemptive Attack

• Battleground States

• Cost-Effective

Overall Spending