What is campaign finance reform?
Campaign finance reform is a far-reaching issue that addresses so many aspects of politics and government. Read our updated 2023 Citizen’s Report to learn all the basics and educate yourself on this important issue!
Key Elements of Campaign Finance Reform
Contribution Limits
Virginia has no legal limits on the amount any campaign funder may donate. At least 45 states and the Federal Election Commission limit the dollar amount of campaign contributions by donors whether they are individuals, corporations, public utilities, or PACs. Twenty two states and the Federal government ban campaign contributions from corporations.
Unchecked political spending in Virginia by corporations, unions, special interest groups, and wealthy individuals has overwhelmed the voices of individual citizens. In the 2019 legislative races in Virginia, 67% of all campaign contributions were over $25,000, contributing more than half of the more than $121 million that was donated to all candidates and political parties. This exorbitant political spending alienates common voters, causing them to believe government works for only those with money.
Increased Oversight
Existing campaign finance law in Virginia does little to hold candidates accountable. Reporting requirements are vague and oversight is currently limited to verifying the submission and timeliness of campaign finance reports. While the Virginia Department of Elections Campaign Finance Office is responsible for overseeing campaign finance reports in the state, the office lacks sufficient legal authority and the budget necessary to monitor campaign finance filings for accuracy and completeness. Efforts are underway to correct these issues, but there is still a lot of work to be done!
Increased Disclosure
Increased transparency through disclosure, the so-called “sunshine factor,” helps discourage some contributions from donors who want to remain secret or private, in particular dark money coming from out-of-state. Yet, in Virginia, there is nothing preventing candidates or obscure donors from being vague when filing reports on campaign contributions and expenditures. Investments need to be made in the Department of Elections which monitors campaign financing records. Investments in information technology would allow public access to disaggregated campaign finance data through an easily accessible online system which is searchable and sortable. Poor access to this data makes it difficult to verify the accuracy and completeness of reports, and complicates compliance with existing regulations.
Publicly-Funded Elections
Because of Virginia’s lax campaign finance laws, candidates turn to corporations, PACs, wealthy donors, unions, and special interest groups in order to be competitive in the state’s increasingly ex- pensive elections. This creates a system in which candidates are perceived to be more responsive to their donors than their constituents. Campaign finance reform measures like contribution limits and stricter disclosure laws can help alleviate this issue. In addition to these measures, publicly funded elections could also help to maintain the integrity and fairness of Virginia’s elections.
A Personal Use Ban
There are no legal restrictions on how candidates spend campaign funds, unlike 47 other states and the federal government. This means it’s perfectly legal for candidates in Virginia to use campaign contributions to pay for stays at lavish hotels, make investments, and pay country club dues.
This fact has become even more concerning as the amount of money being poured into state elections has grown substantially in recent years
– whereas spending in Virginia’s 2017 gubernatorial election totaled $66 million, spending in the 2021 gubernatorial election skyrocketed to nearly $138 million. Without a ban on the personal use of campaign funds, there’s no guarantee this money is being used solely for purposes related to campaigning.
A Constitutional Amendment
Addressing comprehensive campaign finance reform for Virginia requires measures not only at the state level, but also a national-level amendment of the U.S. Constitution. An amendment would allow Congress and states to regain their rights to regulate elections spending that have been severely curtailed by decisions of the Supreme Court of the United States (SCOTUS). In summary, these decisions equate “money as free speech” and “corporations as people.” More specifically, they have removed all limits on the amounts that individuals, corporation, and unions, can donate to independent (i.e., non-candidate/campaign) entities such as PACs.
How does this affect you?
Broadband Access
Internet service providers in the United States have spent more than $1.2 billion on lobbying since 1998. The telecom industry’s lobbying efforts have had tangible ramifications on state laws governing municipal broadband. In fact, facilitated by over 631 lobbyists, over $100 million was spent on lobbying in 2019 alone to protect business interests at the national and state level.
Education
The influence of Dark Money on public education is not new. For decades, groups funded by billionaires have worked to push policies and proposals that pull teachers, funding, and other resources from public schools, including efforts to promote school privatization, charter schools, vouchers, and other so-called “education reform” schemes intended to defund and dismantle public education. Recently, pressures have increased.
Healthcare Costs
In 2018, the healthcare industry employed more than 5 lobbyists for each member of Congress, spending more than $700 million on lobbying and support for actual or potential members of Congress. In the same year members of this industry gave $225 million to federal candidates, outside money groups and parties.
Public Utility Regulation
Virginia’s energy policies and prices are greatly influenced by energy-related companies and organizations, in particular Dominion Energy, the State’s largest electric utilities provider, enjoys a near monopoly. The energy industry donates to both political parties, spending more than half a million dollars in annual donations to members of the General Assembly, who, accordingly, enacted the 2015 “rate freeze” that led to an epic windfall, and more than an estimated $1.3 billion in overcharges since 2015.
This political spending creates a regulatory landscape which benefits the bottom line of energy and utility companies while discouraging climate technology innovation and raising utility prices for Virginia customers.
Nursing Home Standards
The $137 billion nursing home industry is one of the lobbying world’s quiet powerhouses. An increasing number of facilities have been purchased by out-of-state private equity firms. At the federal level, the industry has spent more than $4 million on lobbying over the past year. The industry launched a nationwide campaign at the beginning of the pandemic to escape accountability for negligent actions that result in harm or death of long-term care residents during the pandemic -- even if the harm is not due to COVID-19. Many states, including Virginia, have provided immunity from civil liability to nursing homes and/or healthcare providers, while other states have passed laws providing immunity from criminal liability.
Incarceration Rates
Despite comprising less than 5% of the global population, the U.S. has nearly 25% of the world’s prison population. More than 2 million people are imprisoned in the nation’s prisons and jails—a 500% increase over the last 40 years. Changes in law and policy, not changes in crime rates, explain most of this increase.
Want to know even more?
Check out some of our other briefs! Still have questions? Reach out to one of our members to get questions to your answers!
