U.S. Presidential Hopefuls Release Campaign Finance Data

By Stuart Gorin

Democratic candidates edge out Republicans in the race for funds

At the end of each quarter of the calendar year, U.S. presidential candidates must reveal how much money they have raised to fund their campaigns. The monies pay for such expenses as campaign travel, office space, television and radio advertising, telephone service and printing literature.

The official figures for the three months ending September 30 will be released by the Federal Elections Commission (FEC) on October 15, but the staffs of many campaigns already are announcing the amounts they will report to the FEC.

Staffs of Democratic candidates in the 2008 race, especially the staff of New York Senator Hillary Clinton, tell journalists they raised considerably more money than did their Republican rivals. Republicans agree. Strategists in both parties say the imbalance indicates that Democrats currently are more energized in their battle to reclaim the White House.

Clinton's campaign said it received $27 million in donations during the 90-day cycle. Federal law allows her to spend approximately $22 million of that during the primary season; if she wins the party's nomination, the other $5 million will be available for the general election.

Although candidates are setting aside small portions of their fundraising for the general election, the bulk of it is being devoted to the primaries. Once the two parties' nominees are determined, the focus of the campaign will shift to the general election, and the national political parties - which remain neutral in the primaries - will become involved.

Illinois Senator Barack Obama, who takes second place behind Clinton in most opinion polls on Democratic candidates, reportedly raised $20 million during the third quarter. Aides said Obama's total includes donations from 93,000 new supporters, many of whom used the Internet to contribute.

On the Republican side, observers said former Tennessee Senator Fred Thompson, the most recent arrival to the campaign, raised more than $8 million during the period. Thompson also is depending on his Web site to gain contributions.

Without releasing a tally, former New York Mayor Rudy Giuliani, who is leading in opinion polls on Republican candidates, said he expects to do as well as others, and perhaps better than some. Observers expected the figure to be about $10 million.

A Republican familiar with Arizona Senator John McCain's campaign finances said he raised more than $5 million during the quarter. McCain said money never has been an important part of his campaigns and he is satisfied with how things are going.

Advisers to former Massachusetts Governor Mitt Romney, without revealing the quarterly figures, said they expected to have raised nearly $40 million over the first nine months of 2007 and that the millionaire businessman would supplement that with another $15 million of his own. His personal fortune is estimated at between $190 million and $250 million. Observers call Romney's candidacy a "hybrid" campaign - neither traditionally built on individual donations, nor a totally self-funded effort.

Candidates must follow specific rules about campaign fundraising. Over the years those rules have changed numerous times and faced many court challenges.

It is assumed widely that most donors to a campaign agree with their candidate's political views, but critics say some contributors expect something in return for their money, such as action on specific legislation. Therefore, in efforts to eliminate perceived political corruption, restrictions have been placed on fundraising sources and techniques, and the government offers candidates the choice of public funding to use, instead of their private financing.

Public funding money comes from taxpayers, who have the option on their federal tax forms to contribute $3 from their tax assessment to cover the cost of presidential campaigns. Candidates who opt to use these funds must comply with spending limits.

Former North Carolina Senator John Edwards, a Democratic presidential candidate currently third in many polls, announced that he will accept public financing during the primary season. This would give him an additional several million dollars, but, at the same time, will preclude him from further private fundraising.

According to FEC regulations, an individual may contribute no more than $2,300 to a candidate in a specific election, and $28,500 to a political party during any calendar year. These limits determine what portion of the total funds raised by a candidate is available for the primary campaign and how much must be held in reserve for the general election.

The first federal attempt to regulate campaign finance was in 1867, when the Naval Appropriations Bill prohibited officers and government employees from soliciting money from naval yard workers.

Among other important campaign finance milestones:

The Bipartisan Campaign Reform Act of 2002 distinguished between so-called "hard" money that is given only to candidates, and "soft" money that is contributed to political parties and political action committees, rather than to individuals.

The 2002 act, known as the McCain-Feingold bill because it was introduced in the Senate by Republican John McCain and Wisconsin Democrat Russ Feingold, still faces court challenges. Critics of the legislation say it restricts First Amendment free speech rights and that the ban on soft money simply redirects donations to special interest groups, which face less stringent oversight.

For more stories about the campaigns and candidates for the 2008 U.S. presidential election, see U.S. Elections.

Source: U.S. Department of State

judythpiazza@newsblaze.com

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