Independent Expenditures
The Giant Gorilla in Campaign Finance
a report by the
California Fair Political Practices Commission
June 2008
Commissioners ● Chairman Ross Johnson ● Timothy A. Hodson A. Eugene Huguenin, Jr. ● Robert Leidigh ● Ray Remy
TABLE
Executive Summary Introduction
OF
CONTENTS
3 5 8 11
The "Independent Expenditure" Dollars The 10 Who Spent $42 Million on "Independent Expenditures" The Next 15 Who Funds the "Independent Expenditure" Committees Campaigns Where "Independent Expenditures" Spent More Than the Candidates Three Races Where "Independent Expenditures" May Have Assured Victory How "Independent Expenditure" Committees Make a Joke Out of Contribution Limits Million Dollar Babies Peeling the Onion The 2008 Primary Election Update Recommendations Appendix A Appendix B Note on Methodology
15 21
23
37
41
49 53 60 82 84 85 88
E XECUTIVE S UMMARY
THE PEOPLE OF CALIFORNIA have repeatedly voted to limit the size of direct contributions to candidates for state office, most recently through Proposition 34 in November 2000. Previously, California voters approved Propositions 68 and 73 in 1988 and Proposition 208 in 1996. Very few provisions of these three measures remain in effect today.
Despite the public's demand to reduce the influence of special interest money in elections, the opposite has occurred, thanks, in part, to an orgy of spending by so-called "independent expenditures," also known as IEs. The emergence of "independent expenditures" has thwarted the will of the people, dramatically undermined California's campaign finance laws and doubtlessly influenced the outcome of numerous statewide and legislative elections. This report summarizes the California Fair Political Practices Commission's extensive study of "independent expenditures" and analyzes the impact of "independent expenditures" on campaigns for elected state offices. In addition, this report provides recommendations the Commission might implement under its current authority in order to provide greater public disclosure of "independent expenditures." The study deals solely with candidates for state offices. Highlights of the independent expenditure study undertaken by the Commission: Since Proposition 34 took effect on January 1, 2001, through the 2006 election cycle, more than $88 million was spent on "independent expenditures" benefiting candidates for state office.
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