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Party Political Funding: Paying the Politicians at Poll Time

Does the American Presidential campaign provide a good comparison with the UK system?

The sums involved are astronomical in comparison to those in the UK. Analysts estimate that in the 2000 Presidential elections Bush-Cheney (presidential and vice-presidential candidates of the Republican party) spent $186 million, while Gore-Lieberman (Democrat party candidates) spent $120 million. This time around, the Democrats are expected to be able to spend $145 million and the Republicans $214 million.

US presidential candidates have two sources of funds as they fight to be elected. © Photolibrary Group

Campaign funds come from two sources in the US: 'soft' and 'hard' money. Hard money is provided upfront in the form of donations to one side or another. This donation is then publicised and rules are set to limit the total that can be raised in this way. Soft money comprises uncapped donations to political parties. These are used for so-called 'issue ads' that publicise a candidate's position or beliefs, or they can make attacks on an opponent's stance.

Swift Boat Veterans for Truth (SBVT) is a group set up to channel soft money into the 2004 George W Bush presidential election campaign. SBVT is a so-called '527' Group (American term for a tax exempt organisation). This money is used to influence voters in US elections. The way in which SBVT is trying to influence American public opinion is by undermining Bush's challenger, John Kerry. In response to Kerry's campaign strategy of promoting his own war record, (Kerry served in Vietnam, a conflict he later said was a grave mistake by the US), SBVT have alleged that he has not told the truth about his own role in South-East Asia.

The 'Open Secrets' Web site provides details of the disclosed use of money in US elections. This gives the latest information on the activities of the SBVT during the current race for the presidency. Information is given about the main donors to the group as well as details of the issue ads that SBVT have made, questioning the activities of the Democrat candidate, John Kerry.

Soft money donations were outlawed in 2002, but issue ads can continue as long as they are broadcast no nearer the election date than 60 days. Not surprisingly, with just over two months to go until the election date (at the time of writing), there has been a rush of issue ads lately. At the same time as making prohibiting soft money donations, the so-called McCain-Feingold Act raised the limit on hard money donations from $1000 to $2000.

Are there any answers to the political funding problem?

In the view of many observers and some politicians, the only way to avoid accusations of sleaze is to do away with the current way in which political parties are funded (that is to say, through donations and subscriptions) and replace it with public funding of the parties.

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