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Key Facts on the Presidential Public Financing Program

The presidential public financing program is in serious trouble – and the facts show it.

Prior to the 2000 elections, only three presidential candidates “opted out” of the public financing system. They did so because each was independently wealthy. Since 2000, the list of candidates opting out has at least doubled to six, with the possibility that more may follow. This time, however, the choice to forego public funds is not because the candidates are independently wealthy, but because they can raise more money from private special interests than from the public financing program. Simply put, the current presidential public financing system needs a major overhaul.

Look at some of the key facts:

While 50 percent of total presidential campaign spending from candidates and parties in the primary and general elections combined came from public funds in 1976, that figure has fallen to 19 percent today.

  • Candidates who accept public funds in the primary election must still raise most of their money from private sources – usually special interests.
  • Any candidate who wants to challenge George W. Bush in the 2004 election using the public financing system will be outspent by more than 4-to-1 in the primaries and by more than 2-to-1 over the entire election cycle.
  • Even though the public financing program does not provide eligible candidates with enough public funds, it is going broke nonetheless.

The means to resolve these problems are well within reach, if only we could muster the political will. The presidential public financing system could survive the challenges posed from special interest money by turning to a full public financing program for both the primaries and the general election. Full public financing costs only a few dollars more per taxpayer than the current system, yet it could make the concept of special-interest free elections achievable.

The following are key facts about the presidential public financing system:
 

A. Total Spending on Presidential Campaigns

  • $160 million: Total presidential campaign spending by candidates and parties in 1976.[1]
  • $1,213 million: Total presidential campaign spending by candidates and parties in 2000.[2]
  • 50 percent: Percentage of total presidential spending by candidates and parties combined paid for by public funds in 1976.[3]
  • 19 percent: Percentage of total presidential spending by candidates and parties combined paid for by public funds in 2000.[4]
  • $274 million: Estimated total candidate expenditures by George W. Bush in the 2004 primary and general elections combined, if he declines to accept public funds and abide by the spending ceilings in the primary but then accepts public funds in the general election.
  • $119 million: Estimated total expenditures by the Democratic presidential nominee who accepts public funds and abides by the spending ceilings in the 2004 primary and general elections combined.

B. Primary Campaign Spending and Eligibility Criteria

  • $45 million: Spending ceiling in the 2004 primaries for candidates who accept public funds.[5]
  • $19 million: Maximum public matching funds in the primaries for each participating candidate.[6]
  • $200 million: Amount of private money George W. Bush is expected to raise and spend in the 2004 primary because he is opting out of public financing.[7]
  • 73 percent: Percentage of campaign funds raised by George W. Bush from individuals in the first three quarters of 2003 in checks of $2,000, the maximum contribution permitted.[8]
  • 86 percent: Percentage of campaign funds raised by George W. Bush from individuals in the first three quarters of 2003 in checks of $1,000 or more ($1,000 was the maximum contribution permitted prior to 2003).[9]
  • 35 percent: Percentage of all principal candidate campaign budgets paid for with public funds in the 1976 primaries.[10]
  • 18 percent: Percentage of all principal candidate campaign budgets paid for with public funds in the 2000 primaries.[11]
  • Qualification requirements for participation in the primary public financing program:
  • Raise $5,000 in each of 20 states in amounts of $250 or less to qualify for public financing – a total of $100,000.
  • Abide by the $45 million spending ceilings.

C. Nominating Conventions

  • $14.6 million: Official spending ceiling and public funds allocated to each of the 2004 major party nominating conventions.[12]
  • $49 million: Expected 2004 Democratic convention expenditures, including soft money.[13]
  • $64 million: Expected 2004 Republican convention expenditures, including soft money.[14]
  • Boston, July 26-29: Location and date of the Democratic Convention.
  • New York City (near “Ground Zero”), August 30-September 2: Location and date of the Republican Convention.

D. General Election Spending and Eligibility Criteria

  • $74 million: Spending ceiling and public funds allocated to participating candidates in the 2004 general election immediately after each major party’s convention.[15]
  • 95 percent: Percentage of all principal candidate campaign budgets paid for with public funds in the 1976 general election.[16]
  • 81 percent: Percentage of all principal candidate campaign budgets paid for with public funds in the 2000 general election.[17]
  • Qualification requirements for participation in the general public financing program:
  • Nomination by a party that garnered at least 5 percent of the last presidential vote qualifies the nominee for a bloc grant after the convention.
  • For a new party, receiving at least 5 percent of the presidential vote in 2004 qualifies a nominee for a bloc grant after the election.

E. Voluntary Tax Checkoff Program

  • Taxpayer Participation Rate in the Voluntary Tax Checkoff Program:[18]
  • High of 29 percent in 1981.
  • Low of 12 percent in 2001.
  • $19.3 million: Amount of tax checkoff revenues expected to be available in the Presidential Election Fund in January 2004.[19]
  • $36.6 million: Amount of public funds that presidential primary candidates are expected to be eligible to receive in January 2004.[20]
  • 53 cents on the dollar: Amount of public funds 2004 primary candidates are likely to receive initially for each public dollar earned because of a shortfall in the tax checkoff fund.[21]

F. Cost of Full Public Financing for Presidential Campaigns

  • $2 per taxpayer every 4 years (50 cents per year): Average cost of public funds distributed to the presidential candidates in the 2000 primary and general elections and to the major party conventions under the existing presidential public financing system.[22]
  • $5 per taxpayer every four years ($1.25 per year): Estimated average cost of replacing all private financing of presidential candidates in both the primary and general elections, and the nominating conventions, with full public financing.[23]

G. Miscellaneous

  • Candidates who otherwise may have qualified for public financing but “opted out” of the system in the primary election:
  • John Connally, 1980 Republican primary.
  • Ross Perot, 1992 United We Stand America primary.
  • Steve Forbes, 1996 Republican primary.
  • Harry Browne, 2000 Libertarian primary.
  • George W. Bush, 2000 and 2004 Republican primaries.
  • 3 out of 7: Number of presidential elections since 1976 in which a challenger defeated the incumbent.
  • $45 million (about 5 percent of all public funds allocated since program inception): Amount of public funds allocated to minor party candidates (and Lyndon laRouche) since 1976.[24]
  • 1904: First year public financing of presidential elections was proposed by Rep. William Bourke Cockran; advocated by President Theodore Roosevelt in 1907.[25]

November 3, 2003


 

[1] Herb Alexander, Financing the 1976 Election, at 166 (1979). Includes candidate expenditures, party expenditures and convention expenditures.

[2] Candidate expenditures from Candice Nelson, “Spending in the 2000 Elections,” Financing the 2000 Elections, ed. David Magelby (2002) at 24. Data supplemented with Public Citizen analysis of Federal Election Commission data. Includes presidential candidate expenditures, Republican National Committee and Democratic National Committee hard and soft money expenditures, and convention expenditures.

[3] Alexander, op.cit., at 173.

[4] Public Citizen analysis of Federal Election Commission data of total expenditures divided by total public funds allocated to primary candidates ($57.7 million), conventions ($27 million), and general election candidates ($147.6 million).

[5] 2004 primary spending ceilings and public fund caps are estimated based on 2000 spending levels. Official figures will not be released by the Federal Election Commission until later in the election season.

[6]Id.

[7] Estimates of eventual spending by the George Bush campaign in the 2004 primary elections range from $170 million to more than $200  million. See, for example, Thomas Edsall, “Campaign Financing Reshaped,” Washington Post (Aug. 5, 2003) at A1;  Marc Sandlow, “Bush Tops Field in Fundraising,” Seattle Post-Intelligencer (June 23, 2003) at A1.

[8] Public Citizen analysis of Federal Election Commission data.

[9]Id.

[10] Herb Alexander, op.cit. at 173. “Principal” campaigns refers to candidates who met the eligibility threshold for public financing, regardless of whether the candidate accepted public financing.

[11] Figures derived from Anthony Corrado, “Presidential General Election,” Financing the 2000 Election, ed. David Magleby (2002) at 89; and from Public Citizen analysis of Federal Election Commission data.

[12] Federal Election Commission, Press Release (June 30, 2003).

[13] Thomas Edsall, “FEC to Consider Lifting Ban on Soft Money,” Washington Post (July 23, 2003) at A4.

[14]Id.

[15] Estimated spending ceiling based on figures for the 2000 presidential election. The Federal Election Commission will not provide specific spending ceiling figures until March 2004.

[16] Herb Alexander, op.cit. at 173. “Principal” campaigns refers to candidates who met the eligibility threshold for public financing, regardless of whether the candidate accepted public financing. Though public funds are theoretically intended to cover a candidate’s full campaign budget in the general election, candidates are permitted to raise and spend some private money to cover limited compliance and fundraising costs.

[17] Figures derived from Anthony Corrado, “Presidential General Election,” Financing the 2000 Election, ed. David Magleby (2002) at 89; and from Federal Election Commission data. Though public funds are theoretically intended to cover a candidate’s full campaign budget in the general election, candidates are permitted to raise and spend some private money to cover limited compliance and fundraising costs.

[18] Compiled from Federal Election Commission data.

[19] Kenneth Doyle, “Presidential Campaigns: FEC Legislative Recommendations Exclude Big Changes,” Money & Politics Report (April 8, 2003).

[20]Id.

[21] Public Citizen analysis of Federal Election Commission data.

[22] Based on the $232.3 million in public funds distributed to candidates and the parties in the 2000 presidential election, divided by total number of taxpayers.

[23] Estimated cost per taxpayer for full public financing is based on 10 primary election candidates spending $45 million each, two major party conventions costing $15 million each, and two major party nominees spending $74 million each in the general election, divided by total number of taxpayers.

[24] Joseph Cantor, “The Presidential Election Campaign Fund and Tax Checkoff: Background and Current Issues,” Congressional Research Service Report (March 18, 1997); figures for 2000 derived from Public Citizen analysis of Federal Election Commission data.

[25] Craig Holman, “The Emergence of Public Financing of Candidate Campaigns From the Scandals of American History” Unpublished paper on file with the author (2002).


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