Soft Money Going to States, Congressmen Propose Bill for Free Air Time for Candidates, Tax Credit for Small Campaign Contributions, and the Supreme Court Overturns Limits on Judicial Candidates Study Shows Soft Money Going to States A group of campaign finance reform groups have teamed up to create the first database tracking campaign contributions and expenditures on a state-by-state basis. A report released on June 25 by the Center for Public Integrity, the Center for Responsive Politics and the National Institute on Money in State Politics found that $236 million in soft money was transferred from national political parties to their state affiliates, which was then transferred to federal accounts to pay for federal campaigns – primarily for issue advertising. The full report and database are available on statesecrets.org. New federal regulations implementing the ban on soft money contributions to political parties passed as part of this year's campaign finance reform law will allow members of Congress to continue raising soft money for state parties. See related story. Free Air Time Following up on their success in passing the Bipartisan Campaign Finance Reform Act of 2002, Sens. John McCain (R-AZ), Russell Feingold (D-WI) and Robert Torricelli (D-NJ) and Rep. Martin Meehan (D-MA) announced plans in late June to file a bill that would require radio and television broadcasters to:

• Host at least two hours a week of programming on candidates and issues during the period just prior to an election, including debates, town hall meetings and interviews. The programs could not be broadcast between midnight and 6 a.m., and at least half must be in or near prime time.
• Pay an annual fee on their usage of the public spectrum (not more than 1% of gross annual revenues) to fund vouchers for federal candidates and political parties to broadcast ads. In order to qualify, a candidate must show he/she has raised a threshold of small donations. Parties could spend their vouchers on federal, state or local elections during each two-year election cycle.

The cost of television and radio advertising is considered a major factor in driving up the cost of elections and increasing the need for candidates to raise soft money. Proponents of free airtime say reducing the cost will help reduce the need for candidate fundraising. In a joint statement the sponsors said, “This proposal simply tells broadcasters to give back to the American people some of the extraordinary benefits they have reaped from the public airwave that they are licensed to use for free.” The bill has not yet been introduced. It is backed by a broad coalition of groups that will be conducting a series of forums on the issue this summer. For more details see the Alliance for Better Campaigns website. Bipartisan Bills Would Create Tax Credit for Small Contributions to Federal Candidates Reps. Thomas Petri (R-WI) and Paul Kanjorski (D-PA) introduced the Citizen Involvement in Campaigns Act of 2002 (H.R. 4980) on June 20. The bill would allow taxpayers to take a 100% tax credit on contributions to federal candidates or parties, up to a ceiling of $200, or a 100% deduction of up to $600 per year. In remarks introducing the bill, Petri said the program can help "balance the influence of large donors in the American electoral process." Sen. Byron Dorgan (D-ND) announced plans in late June to file similar legislation, but would limit the program to households with incomes up to $100,000. That bill has not yet been filed. Judicial Elections Also in late June the Supreme Court ruled that a Minnesota law barring judicial candidates from stating their opinions on issues that may come before the court is an unconstitutional infringement on free speech. The case, Republican Party of Minnesota v. White, is likely to invalidate similar laws in 47 other states. It does not overturn restrictions that bar judicial candidates from pledging to rule one way or another on specific issues. Spending on judicial elections has increased dramatically in recent years, increasing 60% between 1998 and 2000. The Chamber of Commerce has announced plans to spend $25 million on state judicial and attorney general races in states in the elections this fall.