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OVERVIEW

OVERVIEW. I. Introduction: What kind of political system do we want II. Background: Problems with the current system III. Remedies: Limit the influence of big money. I. GOALS. We, the people. …want representatives who have time to do their jobs

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OVERVIEW

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  1. League of Women Voters of New York State

  2. LWVNYS

  3. OVERVIEW I. Introduction: What kind of political system do we want II. Background: Problems with the current system III. Remedies: Limit the influence of big money LWVNYS

  4. I. GOALS LWVNYS

  5. We, the people. . . …want representatives who have time to do their jobs …want a government responsive to our needs …want more people participating in the electoral process LWVNYS

  6. We, the people. . . …want to minimize the effects of big money in our elections …want a system that does not encourage corruption …want more diverse candidates LWVNYS

  7. How can we get there? • Campaign finance reform • Increase transparency, improve enforcement and lower limits • Fair elections: take the power of money out of elections and bring the citizens in LWVNYS

  8. Why now? • Governor Cuomo is committed to campaign finance reform • Public concern about the corrupting influence of big money in politics • Change is necessary LWVNYS

  9. II. BACKGROUND LWVNYS

  10. Is the influence of money in campaigns a new concern? No 1974: Federal Election Campaign Act places limits on individual, organizations, candidates 1867: Nation’s first campaign finance law (re: workers in naval yards) 1883: President Chester Arthur signed law prohibiting solicitation of political contributions from civil servants 1906: Attempts to limit corporate influence in federal elections go back to President Theodore Roosevelt 2010: Citizens United v. FEC LWVNYS

  11. What’s wrong with unregulated campaign spending? LWVNYS Adapted From

  12. What are the limits on campaign finance laws? • First Amendment to the Constitution protects free speech and association LWVNYS

  13. What cannot be limited by state and federal laws • Candidate spending except in context of voluntary public financing • Independent expenditures by an individual or entity • Contributions to entities that solely engage in independent expenditures • Spending to influence ballot proposals LWVNYS

  14. The four pillars of campaign finance regulation Effective Campaign Finance Regulation Contribution Limits Public Financing Effective Enforcement Disclosure LWVNYS Adapted From

  15. How does current New York law fall short? Limits contributions by individuals and corporations BUT limits are sky high and loopholes abound Prohibits personal use of campaign funds BUT rules are so vague that use of campaign funds for personal expenditures is rampant Establishes an enforcement body BUT body is ruled by partisan politics and is understaffed, underfunded, ineffective LWVNYS

  16. How high are New York state limits for contributions by individuals? LWVNYS

  17. How high are New York state limits for contributions by individuals? LWVNYS

  18. What else is wrong with New York State law? LWVNYS

  19. What is wrong with New York State law? No “Pay to Play” restrictions- additional limits on contributions from lobbyists and state contractors LWVNYS

  20. Result: Lobbyists play too big a role in funding campaigns • A NYPIRG study found that lobby firms, their PACs, and their employees contributed over $1.8 million to state-level candidates and party committees in 2011 • Lobbyists working for these firms contributed nearly 70,000 times more dollars per capita as ordinary citizens New York Public Interest Research Group 2012 Report LWVNYS

  21. What is wrong with New York State law? It does not limit contributions to party “housekeeping accounts”- funds parties can use for overhead expenses, including polls and get-out-the-vote drives LWVNYS

  22. Result: Cable Industry has contributed at least $2,688,000 over 10 years • More than $1 million to the NYS Senate Republican Campaign Committee Housekeeping Account • $463,000 to the NYS Senate Democratic Campaign Committee Housekeeping Account New York Public Interest Research Group 2012 Report LWVNYS

  23. What is wrong with New York State law? It does not have effective oversight and enforcement LWVNYS

  24. Result: Low deterrence = low compliance • Without effective enforcement, candidates circumvent present campaign finance laws with impunity. • Every year hundreds of donors give more money than allowed by state law • Scores of candidates fail to disclose the identity of donors in the run-up to Election Day • Thousands of filings contain incomplete or incorrect information New York Public Interest Research Group 2012 Report LWVNYS

  25. What is wrong with New York State law? No meaningful limits on contributions from corporations LWVNYS

  26. Result: Multiple contributions • Corporate subsidiaries and LLCs contribute many times the $5,000 limit to campaigns. For example: (see next slides) LWVNYS

  27. MetLife MetLife 81 subsidiaries 1 campaign coffer LWVNYS

  28. Koch Industries Koch Industries 12 subsidiaries 1 sub has 59 subs / LLCs 1 campaign coffer LWVNYS

  29. III. REMEDIES LWVNYS

  30. Reform Current Laws • The League’s position is that the following reforms to New York State’s campaign finance system are critical: • Lower contribution limits and close loopholes • Restrict or ban housekeeping accounts • Clarify restrictions on personal use • Increase disclosure and transparency • Put in place independent and effective enforcement LWVNYS

  31. Fair Elections for New York State • New York City is a model for a small donor matching system - Fair Elections • Familiar to about 40% of state residents, who are also city residents • Respected and effective system for over 20 years • Matching small donors contributes to citizen participation LWVNYS

  32. How does public funding of campaigns work? • Participation is voluntary • Candidates qualify by obtaining a “threshold” of contributions • Minimum number of contributions and amount required to qualify • Only contributions from constituents and individuals are counted LWVNYS

  33. What states have some form of public financing of campaigns? LWVNYS Americans for Campaign Finance Reform

  34. Benefit of small donor matching • Decrease influence of big money • Increase participation of small donors • Increase voter participation • Create more diverse candidate pool LWVNYS

  35. Increase participation of small individual donors Campaign Finance Institute 2012 Report LWVNYS

  36. What would happen if New York state adopted Fair Elections? Campaign Finance Institute 2012 Report LWVNYS

  37. What can we do? LWVNYS

  38. Action Steps • Contact governor and state legislators and tell them you support Fair Elections and comprehensive campaign finance reform • Write letters to the editor • Educate your friends and neighbors • Support the League’s efforts Thank you to Robert Sterling Clark Foundation for their generous support of this project. LWVNYS

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