BIPARTISAN GROUP INTRODUCES PRESIDENTIAL PUBLIC FINANCING FIX Legislation by Senators Feingold, Collins and Representatives Price, Shays Would Protect Integrity of Electoral Process and Reduce Role of Big Contributors Download Video or Audio December 5, 2007 Washington, D.C. – U.S. Senators Russ Feingold (D-WI) and Susan Collins (R-ME) and U.S. Representatives David Price (D-NC) and Christopher Shays (R-CT) have introduced legislation to repair and strengthen the presidential public financing system. The Presidential Funding Act of 2007 addresses problems that have developed in the system, which was put in place following the Watergate scandal. The presidential public funding system is intended to protect the integrity of the electoral process by allowing presidential candidates to run competitive campaigns without becoming overly dependent on private donors. Also cosponsoring the legislation in the Senate are Barack Obama (D-IL), Dick Durbin (D-IL), Hillary Clinton (D-NY), Joe Biden (D-DE), Chris Dodd (D-CT) and John Kerry (D-MA). Other House cosponsors include Representatives Chris Van Hollen (D-MD), Mike Castle (R-DE), Rahm Emanuel (D-IL), and Todd Platts (R-PA). “In the two decades since Watergate, public financing made presidential elections more competitive and reduced the appearance of corruption that accompanies a wide-open money chase,” Feingold said. “But the system clearly needs to be updated to increase voter confidence in the electoral process by making the candidates less dependent on wealthy contributors.” “Current estimates are that the 2008 contest for the presidency of the United States will cost more than one billion dollars. As a result of these skyrocketing costs, candidates are going to be spending more time holding exclusive, high-dollar fund-raisers than meeting the voters and discussing the issues. Clearly, the system is flawed. The Presidential Funding Act of 2007 would make important and sensible improvements to our nation’s campaign-finance system. This legislation would go a long way in helping to eliminate special-interest money from the presidential campaigns and restoring the public’s faith in the election process,” said Collins. “Neither party is immune from the current fundraising arms race, which is why we need a bipartisan solution that will return the system to sanity,” Price said. “The voters win when all candidates can spend more time talking to the American people than raising money.” “The Presidential public financing system is worth preserving and improving,” stated Shays. “Several factors -- including the front-loading of the primary process, the emergence of extremely wealthy candidates and the unpopularity of the tax check-off -- have combined to render the system of presidential public financing in serious need of repair. I am grateful for this bipartisan, bicameral legislation which makes several changes to the presidential public financing system to make the public financing system more attractive to candidates and more fair for those who choose to participate.” From 1976 to 2004, the presidential public funding system produced competitive elections in which Republicans were elected five times and Democrats three times, while challengers managed to be victorious in three of the six elections in which the incumbent was a candidate. But the front-loading of decisive primaries and the emergence of candidates able to raise money far in excess of the primary election spending limits have exposed the weaknesses of the current system. Both major party candidates accepted public financing for the 2004 general election, but candidates from both parties opted out of the primary election system. In the 2008 election, most of the leading candidates have declined to accept matching funds, and, for the first time since the system began, one or both major party nominees may refuse the general election grant in order to be able to spend unlimited money. The system will likely become even less attractive to candidates in the future if it is not revised and updated. The bill is supported by a wide range of organizations supporting campaign reform including Americans for Campaign Reform, Campaign Legal Center, Common Cause, Committee for Economic Development, Democracy 21, League of Women Voters, Public Campaign, Public Citizen, and U.S. PIRG. ###   Summary of the Presidential Funding Act of 2007 Increases the amount of matching funds for the presidential primaries from a 1:1 match for up to $250 of an individual's aggregate contributions, to a 4:1 match for up to $200 of an individual's contribution received on or before March 31 of an election year. The match increases to 5:1 if a qualifying candidate remains in the race after April 1. Eliminates the state-by-state primary spending limits and increases the overall spending limit for candidates who participate in the presidential primary public financing system from the current level of approximately $50 million to $100 million. In addition, qualifying candidates who remain in the race after April 1 may spend an additional $50 million prior to the general election. Increases the spending limit for participating general election candidates from its current level of $75 million to $100 million. All spending limits are indexed for inflation beginning in 2009. Provides that to qualify for public financing in the primary election, a candidate must raise $25,000 (increased from $5,000 under current law) in each of 20 states, of which no more than $200 can come from any one individual. A candidate also must commit to accept public financing in both the primary and general election in order to receive public funds for the primary election. Moves the starting date for the payment of matching funds to primary candidates from January 1 of the election year to six months before the first presidential primary or caucus. Also establishes a single date - the Friday before Labor Day - for payments to the major party nominees. Provides that if one or more participating candidates in the primary election are running against a non-participating candidate of the same party who raises or spends more than 120 percent of the primary election spending limit, the spending limit for participating candidates is increased to $150 million during the pre-April 1 period and $200 million for the whole primary period. An additional 1:1 match of eligible contributions will also be provided to participating candidates. Should a non-participating candidate spend more than 120 percent of the increased spending limit, the limits are increased by another $50 million. Therefore, the maximum primary spending limit is $250 million, if a non-participating candidate spends more than $180 million before April 1 or $240 million after April 1. Provides that if a participating candidate in the general election is running against a non-participating candidate who has raised or spent more than $300 million for the combined primary and general election, the amount of the public funds provided to the participating candidate is doubled from $100 million to $200 million. Increases the limit on coordinated spending by a national party and its presidential candidate from approximately $15 million to a total of $50 million, with $25 million of that amount available to be spent between April 1 and the nominating convention. These limits are indexed for inflation, and the limit between April 1 and the convention is lifted if a non-participating candidate from the opposing party remains in the race. Requires presidential campaigns to disclose all individuals or groups, not just lobbyists as under current law, that bundle contributions totaling more than $50,000 in the four year election cycle. Increases the amount of the check-off on the income tax form to fund the public financing system from $3 to $10 per individual and from $6 to $20 for a married couple, and indexes these amounts for inflation. Directs the IRS to require that approved tax preparation software does not automatically accept or decline a check-off of taxpayer funds for the public financing system. Takes effect on January 1, 2009. This bill would apply to the 2012 presidential election.

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