LOD: Sizing Up Small Gifts

The recent Supreme Court decision knocking down rescue funds is pushing advocates of public campaign financing to look at alternative models that meet many of the goals of the Voter-Owned or Clean Elections approach. In a new report, the Campaign Finance Institute has applied its favorite model to state legislative elections in six Midwestern states. Its model matches on a five-to-one basis the first $50 an individual donor gives a qualified candidate; i.e., a $50 donation earns the candidate $250 in public funds. (The model follows a six-to-one matching program that has worked well in New York City and a variation is used in the federal Fair Elections Now Act.) The new CFI report points out that small donors typically account for only 3% to 12% of the money raised in state legislative campaigns. That share would rocket up thanks to the public funds triggered by small donations – and it would make small donors more important to candidates thanks to the matching funds. Rather than restrict opposition or outside spending, which the Roberts’ Court abhors, the model focuses on providing incentives that empower small donors and increase their influence in campaigns.