
Governor Douglas vetoed a popular campaign finance bill on May 31st that had been passed earlier this year in a unanimous vote of the Senate and with tri-partisan support in the House.
VPIRG worked very hard to pass this legislation in order to have some reasonable contribution limits in place for the 2008 elections after the Supreme Court struck down Vermont’s landmark campaign finance law last year.
Unfortunately, the governor blundered badly by failing to do his homework before vetoing this bill – S.164. His stated objections don’t hold up to a review of actual facts. Consider his four principle concerns:
1) Proposed individual and party contribution limits will extend a form of political protection to incumbents.
Response:
Research presented to the House Government Operations Committee by UVM campaign finance expert Tony Gierzinski proves that House races run under the strict limits in place from 2000 – 2004 were more competitive (more incumbents lost) than in races run before or since.
VPIRG analysis of some of the most competitive House and Senate races in 2006 shows effective campaigns can be waged by challengers in Vermont under the limits contained in S.164. In fact, almost no candidates raised money in amounts that would violate the limits in S.164 despite the fact that the law allowed for larger gifts last year.
Finally, a 2006 academic research study found that, “Analyses of both the number of contributors and the dollar amount of contributions [to gubernatorial candidates] suggest no support for an increased bias in favor of incumbents resulting from the presence of campaign contribution limits. If anything, contribution limits can work to reduce the bias that traditionally works in favor of incumbents. Also, contribution limits do not seem to increase disparities between gubernatorial candidates in general” (emphasis deleted). Eom & Gross, Contribution Limits and Disparity in Contributions Between Gubernatorial Candidates, 59 Pol. Research Q. 99, 99 (2006).
2) The proposed limits on the activities of political parties will empower special interest groups – whose independent actions and expenditures are unlimited – and provide a platform for these well-financed, often out-of-state, organizations to run more ads and make more independent expenditures than ever before.
Response:
S.164 imposes far greater restrictions on PACs than on political parties. Both political parties and PACs are free to make unlimited independent expenditures under the bill (since they cannot be restrained constitutionally). But while political parties can give up to $30,000 to a candidate running for governor (and lesser amounts to down-ticket offices), PACs are limited to giving no more than what an individual may give ($2,000 for governor and less for other offices). Furthermore, political parties are given wide leverage to perform various party-building activities and provide direct support to candidates in ways that are exempt from the contribution limits. PACs are not given a similar exemption under S.164. Therefore, the suggestion that political parties will be unable to respond to an independent attack ad sponsored by a PAC is factually incorrect.
The theory that such attack ads will be prevented by some sense of mutually assured destruction is also highly suspect. The ads are run in order to attack a particular candidate. The “Swift Boat Veterans” were probably not much worried about being attacked themselves. More to the point, there’s a better way to prevent such ads from being run by “outsiders” in Vermont. The 2006 U.S. House race proved that a highly competitive race could be waged without resorting to such negative advertising. The major party candidates in that race both deserve credit for making clear from the outset that they did not welcome such spending on their behalf. They recognized that Vermonters generally do not respond well to such advertising. That’s the kind of leadership we could use from the governor.
3) This proposal could be attacked as being unconstitutional just like the old law was.
Response:
Any law can be challenged, of course. But S.164 is very different from the law struck down by the Supreme Court last year. The 1997 campaign reform law that was challenged by the Republican Party and Right to Life Committee was designed to force a reconsideration of a 1976 Court ruling that said essentially that money equals speech. That law also had the lowest contribution limits in the nation. It was no surprise to anyone that the legal case made it all the way to the Supreme Court. By contrast, the contribution limits in S.164 are nearly identical to the state of Missouri’s contribution limits that were upheld by the Supreme Court as constitutional in Nixon v. Shrink Missouri Gov’t PAC, 528 U.S. 377 (2000). This legislation (S.164) is on solid legal ground. However, the governor’s actions have opened the door to more litigation in Vermont because the old limits now in place could easily be challenged and quite possibly thrown out before November 2008. That would leave Vermont with no limits at all for next year’s elections!
4) The governor has also suggested that VPIRG’s work on the legislation was self-serving, that we will somehow derive a benefit if the law passes.
Response:
VPIRG is a nonpartisan organization that neither supports nor opposes candidates running for office. By contrast, it is Gov. Douglas who would benefit most by eliminating reasonable limits on what parties and very wealthy individual scan give. In the past he’s taken in more than $600,000 from the Republican Party in a single race! Now that’s self-serving.
A veto override vote is scheduled for July 11 at the State House.