Government and Politics

Campaign Fund May Fall Short

The proportion of taxpayers agreeing to channel $3 of their tax payments to presidential campaigns is dwindling, according to the Federal Election Commission. As a result, the FEC is warning that it may not have enough money for candidates in presidential primaries in 2000.

  • In 1992, when the amount filers could check off on their income tax returns was only $1, 18.9 percent agreed to payments to the presidential campaign fund from the U.S. Treasury.

  • The contribution was increased to $3 in 1993 and by 1995 only 12.9 percent checked the box.

  • The FEC reports that it raises $67 million to $70 million a year from the check-off procedure.

The agency first sets aside funds for the general election campaigns of the two major parties, as well as funds for which Ross Perot's Reform Party has qualified. Next, it must earmark about $14 million to pay for the Republican and Democratic national conventions. Only whatever is left can be used for the primaries.

The FEC estimates only about $25 million will be available for the primaries and there could be as many as a dozen presidential candidates.

Under complicated rules, candidates who agree to abide by spending limits get FEC matching funds. Observers say that, given the shortage of public funds, candidates may choose to opt out of the arrangement -- precipitating a campaign-spending free-for-all.

The 1996 election campaigns were the most expensive in history, according to a study by the Center for Responsive Politics.

  • Some $2.2 billion was spent by the two major parties, political action committees and other political organizations.

  • The median expenditure for a House race rose to $559,807 and for a Senate race to $3.5 million.

  • The study also establishes a significant shift in giving by corporations and other businesses away from Democrats and toward Republicans since the GOP took control of Congress in 1994.

  • Many of the largest labor unions, however, gave well above 90 percent of their money to Democrats.

Sources: Reuters, "Public Willingness to Fund Campaigns Faltering, FEC Says," Washington Times, and Jill Abramson, "'96 Campaign Costs Set Record at $2.2 Billion," New York Times, both November 25, 1997.

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