Vote YES on Proposition 15!
Speaker Training and Volunteer
Orientation
April 2010
www.YesOnProp15.org
Overview for Today
•Welcome
•The Problem:
Special Interest Money Controls our Elections
•The Solution:
Proposition 15, he California Fair Elections Act
•We need you!
What You Can Do
That Amount of Money in Politics is Outrageous and
it is Corrupting the System
• Over $1 billion has been raised by Californian
politicians since 2000. (California Fair Political Practices Commission)
• The highest-spending candidate won 93% of the time
in California from 2002-2006 (CCMC study based on SoS data)
• Candidates raise most of their money outside of the
districts they represent! E.g. only 14% of money Los
Angeles city council candidates raised comes from
individuals in their district (CCMC study based on LA Ethics Commission data)
• In competitive races, congressional candidates spend
34% of their time fundraising (Publication in American Politics
Research)
Supreme Court Decision Allows Unlimited
Corporate Expenditures on Federal Races
• Citizens United v. FEC removed all limits on
independent expenditures by corporations or any
other groups in federal races.
• Will this lead to a corporate takeover of
elections?
Not if Proposition 15 is Passed!
Prop 15 is Best Response to the Supreme
Court Decision
• Candidates who use it would be banned from raising
any money from corporations or other sources.
• They would receive enough public funds to compete
with candidates backed by corporations or other
private interests.
• Like California, Maine has never had corporate
expenditure limits, yet 85% of their legislature
was elected with Fair Elections.
Fair Elections Work!
Nearly 400 candidates from different backgrounds have
been elected with this system in eight states and two cities
– new people with new ideas from all walks of life, not the
same old career politicians.
• 85% of the Maine legislature was elected with Fair
Elections – not a single dime of private money spent on their
campaigns after they qualified.
• 81% of the Connecticut legislature was elected with Fair
Elections the first time they used it in 2008!
• 8 out of 11 statewide officeholders in Arizona
• Governor Janet Napolitano(D) was elected in 2002 using Fair
Elections running against a wealthy privately-funded opponent,
and re-elected in 2006 with it. Current Governor Jan Brewer
(R) was also elected with Fair Elections.
Solution:
Proposition 15
The California Fair Elections Act
•A voluntary, pilot program
for to make available public
financing for qualifying
Secretary of State
candidates in 2014 and 2018
•On the June 8, 2010 ballot
.
Official Ballot Title and Summary
CALIFORNIA FAIR ELECTIONS ACT.
Repeals ban on public funding of
political campaigns. Creates a
voluntary system for candidates for
Secretary of State to qualify for a
public campaign grant if they agree to
limitations on spending and private
contributions.
Each candidate demonstrating enough
public support would receive the same
amount.
Participating candidates would be
prohibited from raising or spending
money beyond the grant. There would
be strict enforcement and
accountability.
Funded by voluntary contributions and
by a biennial fee on lobbyists, lobbying
firms, and lobbyist employers.
Who supports the California Fair
Elections Act?
• Passed by the Legislature (AB 583) and signed
by Governor Schwarzenegger
• AARP
• American Federation of
State, County, and Municipal
Employees (AFSCME)
• California Church IMPACT
• California Primary Care
Association
• Equal Justice Society
• Sierra Club
• Nearly 400 other statewide
and local organizations and
leaders
The California Fair Elections Act:
•
Changes the way we finance election campaigns, so politicians
can focus on California's serious problems.
•
Gets politicians out of the fundraising game so they will focus on
the job we elect them to accomplish.
Prop 15 is tough:
•
It imposes strict reporting requirements and prohibitions on
campaign spending for participating candidates.
•
It imposes stiff penalties for violators including fines, possible jail
time, and prohibitions from running for office in the future.
•
It prohibits participating candidates from raising or spending
money beyond the limited public financing. Fair elections
candidates are banned from raising money from lobbyists, their
clients, or anybody else!
Why the Secretary of State?
The Secretary of State guards the very integrity of our
electoral process and serves as the “referee” of elections.
• Chief Elections Officer oversees all federal and
state elections within California
– Compiles election returns and certifies election results
– Ensures election laws and campaign disclosure
requirements are enforced
– Tests and certifies all voting equipment
• Implements electronic filing and Internet disclosure
of campaign and lobbyist financial information
• Least expensive of statewide races!
How Fair Elections Funding Works
1. I am allowed to raise a
small amount of seed
money
2. I qualify by gathering enough $5
contributions and signatures
3. I agree to strict spending limits and
spending no private money
4. I get a base amount of public
funds for primary and
general elections
5. Outspent or attacked by
outside groups? I get
“Fair Fight” matching
funds to respond.
6. If elected, I am
accountable only to
the voters!
1. Total Seed Money Allowed
(You don’t have to remember this!)
Secretary of State candidates are allowed to raise a total of
$75,000 as seed money from California residents, with a
maximum of $100 per contributor.
•Used to pay expenses to help them gather the $5 contributions
and signatures needed to qualify
•Even the candidate is limited to giving $100 in seed money.
2. Qualifying Contributions
(You do have to remember this!)
Office-qualified candidates must gather 7,500 $5
contributions and signatures to qualify.
•Contributions and signatures must be from registered California
voters.
– Contrast this with the current system, where most of money
candidates raise is raised outside of their districts
– Almost everybody, no matter how poor, can afford $5 if they really
believe in a candidate. And their $5 is as powerful as any rich
person’s $5
•All $5 contributions must be turned into the FPPC when they
qualify, as well as any unused seed money funds.
3. Agree to Spending and Fundraising Limits
Candidate agrees to strict spending limits and agree
not to raise any private money, other than seed money
and qualifying contributions, and to abide by strict
administrative controls.
• After they qualify, prohibited from raising or spending money
beyond the limited public financing (including their own money),
and are banned from raising money from lobbyists, their clients, or
anybody else.
• Strict spending and reporting requirements
• Violators would face fines, possible jail time, and prohibitions
from running for office or acting as a lobbyist or state contractor in
the future.
4. Funds Given to Office-Qualified Candidates
Base Funding Provided:
• $1.0 million in the primary
• $1.3 million in general election
• Both amounts are just a little more than our current
Secretary of State, Debra Bowen, spent in her
winning campaign in 2006. AND:
– They wouldn’t have to spend all the time fundraising that
she did, instead being able to spend all their time talking
with voters
– Fair Elections funding goes further, because there are no
fundraising expenses (typically 20-30% of amounts raised!)
5. Fair Fight Matching Funds
• If outspent by high-spending privately-funded candidate,
candidates receive additional funds on a dollar for dollar basis
up to 4x the base amount.
• If attacked by independent expenditures, or their opponent gets
supported by IEs, candidates also receive additional funds on a
dollar for dollar basis up to 4x the base amount.
• Maximum $4.0 million in the primary
• Maximum $5.2 million in the general election
• Most ever spent was $3.3 M in the 2002 primary by Kevin
Shelley and $1.8 M in the 2006 general by Bruce McPherson
Who pays?
• The California Fair Elections Act Pays for itself
– Increased annual registration fees on lobbyists, lobbying
firms, and lobbyist employers to $350 a year
Guess how much they pay now!
Who pays?
• The California Fair Elections Act Pays for itself
– Increased annual registration fees on lobbyists, lobbying
firms, and lobbyist employers to $350 a year
Lobbyists currently pay only $12.50 a year, less than
barbers and cosmetologists!
– Voluntary contributions to “Voters Fair Election Fund” on
state tax returns
– $5 contributions, excess seed money, and fines.
• TAXPAYERS AND PUBLIC FUNDS ARE PROTECTED.
It will not increase taxes or take away from other important
programs.
Prop 15 Repeals the Prohibition on Public
Financing of Campaigns in California!
• Prop 73 in 1988 prohibited “any public moneys for the purpose
of seeking elective office”
• Only charter cities are exceptions
– e.g. Los Angeles, San Francisco, Oakland, Sacramento, Long
Beach, San Jose, Palo Alto
CFEA would completely repeal that prohibition. That means:
• ANY city and county in California would be free to pass public
financing of campaigns if they choose to.
• The legislature and governor could expand public financing to
ANY and EVERY state office if they choose to, without having
to go to the ballot again.
Unfair Attacks on Fair Elections
• “We should spend taxpayer dollars on other
priorities”
– No taxpayer dollars will be spent. It is funded by
voluntary contributions and by raising the fees on
lobbyists, lobbying firms, and lobbyist employers
– Leaders can’t address our priorities now because they
spend so much time fundraising
– Politicians currently represent priorities of their
donors, not voters
• “Fringe candidates will get taxpayer dollars”
– Signature and $5 thresholds assure broad public
support
– Hasn’t been a problem in Arizona or Maine
Unfair Attacks in their Official Opposition
Ballot Argument
•
“Proposition 15 is a Trick”
– They say it’s a trick because it will repeal the prohibition on public financing
of campaigns from a proposition written by politicians 20 years ago.
– That’s not a trick – the point of a pilot is that it can be expanded!
•
“Proposition 15 Does Not Stop the Influence of Special Interest
Money”
– They say that it’s cynical to “force lobbyists to fund the campaigns for
Secretary of State, the same official who regulates lobbyists.”
– That’s the point! The regulated generally are the ones who pay for
regulator.
•
“Proposition 15 is Full of Hidden Loopholes”
– They say it has a loophole because candidates can raise money for their
legal defense funds and their inaugural funds.
– Participating candidates have strict new limits on what they can raise for
those funds.
– What do you think they would have said if the public paid for them?
Unfair Attacks in their Official Opposition
Ballot Argument
• “Taxpayer Financing of Political Campaigns is a
Bad Idea”
– Big money special interest financing of political
campaigns is a much worse idea!
– They say “there’s almost no restriction on how the
candidates spend their money”.
– Not true! Fair Elections candidates have greater
restrictions than privately-funded candidates, such as
not being allowed to pay their family members.
• “Proposition 15 Raises Taxes”
– Another lie, unless you consider fees on lobbyists and
those who hire lobbyists a “tax”.
Voters are ready for Proposition 15
• 79% of likely voters say state government is "pretty much
run by a few big interests looking out for themselves"
rather than "for the benefit of all the people.“ (PPIC)
• Likely June 2010 voters support the California Fair
Elections Act by a nearly 3-1 margin (63% yes/22% no)
• Strong support across members of all political parties and
geographic regions of California:
– 65% of Latinos, 65% of Democrats, 65% of independents, and
58% of Republicans support.
• When voters heard both pro and con messages, support
actually increased to 69% yes and only 18% no
– So it’s important to get our message out there!
Fair Elections Save Voters Money!
• Both Arizona and Maine passed low-cost prescription drug laws
soon after they got Fair Elections.
• In 2009, with 81% of the legislature elected with Fair Elections,
Connecticut expanded their bottle bill after decades of being
stopped by lobbyists
– Generates nearly $17 million in revenue annually for the state,
paying for their entire Fair Elections system with one bill!
• North Carolina's Insurance Commissioner was elected with Fair
Elections in 2008 and then did a study finding insurance
companies were overcharging ratepayers.
– He then required them to return $50 million to consumers, with
interest, in addition to reversing a 9.4% rate increase and banning
further increases until 2011.
Talking about Proposition 15
• Help Spread Consistent Message
Across All of California
• Repeat the Key Messages
• Personalize the Message
The California Fair Elections Act
Everybody Read Along!
•
Changes the way we finance election campaigns, so politicians
can focus on California's serious problems.
•
Gets politicians out of the fundraising game so they will focus on
the job we elect them to accomplish.
•
Imposes strict reporting requirements and prohibitions on
campaign spending for participating candidates.
•
Imposes stiff penalties for violators including fines, possible jail
time, and prohibitions from running for office in the future.
•
Prohibits participating candidates from raising or spending
money beyond the limited public financing.
Key Message:
Change the way we finance election
campaigns
Read Along – Memorize this one if you can and use
it as your opener!
“The amount of money in politics is
outrageous, and it is corrupting the
system. Since 2000, over $1 billion dollars has
been raised by California politicians. All this
fundraising buys access for the special
interests, but it shuts out the rest of us. We
need to change the way we finance
election campaigns so politicians stay focused
on the job we elect them to accomplish.
Key Message:
Get politicians out of the fundraising game
Read Along – Memorize this one if you can and use it as
your opener!
“Politicians in California spend too much time
raising money for their next re-election. We
have many serious problems to fix in
California, from our schools to our water crisis
to our health care system, but our elected
officials have to spend too much time in
fundraisers and not enough time doing what
they are elected to do. We need to get
politicians out of the fundraising game so
that they will focus on our priorities.”
Secondary Message:
Eliminate Big Money’s Unfair Influence
“We’ve stopped being a state ruled by the people, and
have become a state ruled by the special interests. We
need to eliminate Big Money’s unfair influence on
elected officials who ultimately dictate the public
policies that affect us the most. Passing this
proposition will allow elected officials to start focusing
solely on our interests, instead of returning political
favors to their campaign donors.”
Secondary Message:
We need candidates with the best ideas, not
the best fundraisers.
“It almost seems like a requirement that to run for
office and win, a candidate needs to be very wealthy
or know wealthy donors. But there are plenty of
qualified Californians, with good ideas who can’t
compete in today’s money-driven elections. We need
to open up the process because our Secretary of
State should be the person with the best ideas and
experience, not the best fundraiser.”
Secondary Message:
New people with new ideas can run.
“We know this reform will work because it’s working in
other states. Nearly 400 candidates from different
backgrounds have been elected with this system in
seven states and two cities — new people with new
ideas from all walks of life, not the same old career
politicians. Because they never take campaign
contributions, they can speak their mind and work for
the people, not the special interests.”
Let’s Look at the Speaker Binder and
Materials!
Get Everybody to sign the Pledge to
Vote forms -- and make at least $5
Contributions!
Break – 10 minutes
• Think about a key topic you would like to
speak about for 1 minute
Exercise: “The Elevator Speech”
• Going down an elevator, you are asked “What
is Fair Elections?”
• You have about 30 seconds to spark interest.
Exercise:
• Think about what you’ll say (5 min)
– You can write it down in note form to start
– But you’ll have to say it without notes later
• Practice your elevator speech in groups of 2
(5 min)
• Give your speech in front of the class!
Example Elevator Speech
"Would you agree that the amount of money in politics is
outrageous, and that it is corrupting the system?
Since 2000, over $1 billion dollars has been raised by California
politicians. All this fundraising buys access for the special
interests, but it shuts out the rest of us.
We need to change the way we finance election campaigns so
politicians stay focused on the job we elect them to accomplish.
That's why we all need to vote Yes on the California Fair
Elections Act next June!
Here’s a flyer, I hope you’ll vote yes and maybe think about
helping!”
Help Us Change Politics From This:
To politics with Fair Elections:
Extra detail
slides
for specific
questions
Secretary of States and Elections
• California Secretary of State Kevin Shelley was forced to
resign in 2005 after one of his fundraisers was found to have
laundered $125,000 of taxpayer money into his campaign
account
• Florida Secretary of State Katherine Harris in 2000 and Ohio
Secretary of State Kenneth Blackwell in 2004 were viewed by
many as partisan in those close presidential races
• Voting machine makers Sequoia Voting Equipment and
Election Systems & Software have contributed to California
Secretary of State candidates.
• Diebold has contributed to Secretary of State candidates in
other states, including Ohio, where in 2004 its CEO said he
was "committed to helping Ohio deliver its electoral votes to
the president."
National “Fair Elections Now Act”
Bipartisan bill introduced on 3/31/09 by Sens. Dick Durbin (D-Ill.) and Arlen
Specter (R-Pa.) and by Representatives John Larson (D-Conn.) and Walter
Jones (R-N.C.) to provide Fair Elections funding to Congressional Senate
candidates.
• Participating candidates prohibited from getting more than $100 per contributor,
but are allowed to raise unlimited amounts from those small donors
• Qualify for House races by raising $50,000 from 1,500 donors in their state.
–
Senate candidates must have from 2,500 donors (in Alaska) to 28,500 (in California)
• Provides substantial Fair Elections funding to participating candidates
–
$900,000 for primary and general combined for Congressional candidates
–
From $1.5 M (Alaska) to $14.5M (California) combined for Senate candidates
• Donations of $100 or less from in-state contributors are matched on a 4-1 basis,
up to a total cap of 3x base funding
• Participating candidates receive a 20% reduction from the lowest broadcast
rates and also receive media vouchers worth between $100,000 and $5.3 M
(California senate candidates) depending on number of Congressional districts.
Meant to provide enough funding open up the process to non-wealthy candidates,
eliminate pay-to-play politics of large donors, and encourage participation of
small donors.
Third Party and Independent Candidates
“Office-qualified” candidates, i.e. running as candidates for parties that
received at least 10% of the vote in the previous election for that
office/district or in the previous gubernatorial election automatically
qualify for full funding levels at the normal number of signatures.
Candidates from other parties and independents can:
* Qualify as Performance-Based Candidates if they gather twice the normal
number of qualifying contributions (15,000)
- They get full funding in the general election and full matching funds
- If they have a primary receive 20% of the normal base funding ($200,000).
Candidates from other parties (but not independents):
* Qualify for partial funding by gathering half the normal number of qualifying
contributions (3,750)
- They get 25% of the base funding in the general election ($325,000)
- If they have a primary receive 20% of the normal base funding ($200,000)
Prop 89 vs Prop 15
Prop 89, the initiative that lost in 2006 after being put on the
ballot by the California Nurses Association, is different from
Prop 15 in multiple major ways:
Prop 89
Prop 15
Cost
~$150 million / year
(all state offices)
~$2 million / year
(Secretary of State only)
Main
Funding
Source
Corporate tax increase
Lobbyist registration fee increase
Contribution
Limits
Strict new limits on contributions to
candidates
No change to current limits for
non-participating candidates
Ballot
Initiatives
Limited corporations to only $10,000
contributions to ballot committees,
but no limits on unions.
No change
Prop 89 vs Prop 15
Prop 89, the initiative that lost in 2006 after being put on the
ballot by the California Nurses Association, is different from
Prop 15 in multiple major ways:
Prop 89
Prop 15
Cost
~$150 million / year
(all state offices)
~$2 million / year
(Secretary of State only)
Main
Funding
Source
Corporate tax increase
Lobbyist registration fee increase
Contribution
Limits
Strict new limits on contributions to
candidates
No change to current limits for
non-participating candidates
Ballot
Initiatives
Limited corporations to only $10,000
contributions to ballot committees,
but no limits on unions.
No change
Title on the
Ballot
“Political Campaigns. Public
Financing. Corporate Tax Increase.
Contribution and Expenditure Limits.
Initiative Statute.”
“California Fair Elections Act”
Incumbents Outspend Challengers Over 4-1
All state races involving incumbents in 2002-2004
$160,000,000
$150M
$140,000,000
$120M
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$35M
$35M
$40,000,000
$20,000,000
$0
All Races (258 races)
Total Incumbent Spending
Only Contested Races (129 races)
Total Highest Spending Challenger
Calculations made by the California Clean Money Campaign based on data from the California Secretary of State website.
The Difference That Clean Money Makes
Percent of Races Won by Biggest Spenders
100%
93%
90%
79%
80%
70%
60%
50%
40%
Only 2% of the races
had a significant
difference in money
between the major
party candidates.
30%
20%
10%
2%
0%
2002-2006 California
Races
1998 Arizona General
Races
2002 Arizona -- Races
Decided By Money
For questions contact Trent Lange, VP of California Clean Money Campaign, TLange@CAclean.org
Health Care Contributions
• The healthcare industry -- including HMOs, health
professionals, hospitals and nursing homes, and
pharmaceuticals -- contributed $825 million to candidates for
federal office from 1990-2008.
• The healthcare industry spent $3.4 billion to lobby the federal
government on health policy matters from 1998-2008,
including $480 million in 2008 alone.
• Annual contributions from the healthcare industry increased
sevenfold from $21.9 million in 1990 to nearly $150 million in
2008, placing it in the top three contributing industries to
Congress and the President.
• Joe Lieberman Determines Health Care Bill: Has received
more than $1 million in insurance company campaign
contributions since 1998
Example of Problem at the Federal Level
A record $3.1 billion was spent on federal races in 2008
Bankrolling Politicians Pays Off Big Time
According to the Center for Responsive Government, 161
financial institutions have received federal bailout money.
• Initial investment: $114.2 million ($37.5 million to
contributions to candidates and almost $76.7 million in
lobbying expenditures in 2008 by the financial institutions)
• Yield: $700 billion in TARP funds plus more in hidden loans
• Rate of return: more than 2,500%
• Potential cost to the public: $2,000 per man, woman, and
child in the USA
Banks receiving TARP funds have even used taxpayer dollars to
lobby Congress!
Campaign Spending is Out of Control
•
Candidates for governor can receive $25,900 per contributor
•
The 2010 Gubernatorial race is estimated to cost between $150-$200 million
•
Nearly $700 million was spent in 2008 on candidates and initiatives combined
Total Expenditures for Gubernatorial Races 1978-2006
Inflation
Expenditures
$200,000,000
$180,000,000
$160,000,000
$140,000,000
Gubernatorial Races
1978-2010
Total Expenditures vs.
Inflation
Dollars
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
1978
1986
1994
1998
2002
2006
2010?