CAMPAIGN CONTRIBUTION LIMITS
llinois has frequently been called the "wild west" of American campaigns based on its largely unregulated campaign finance system. Before a new campaign contribution limits system was approved in late 2009, Illinois was one of only five states with no restrictions on the size or source of campaign contributions.
While most states established limits on campaign fundraising as part of post-Watergate political reforms, Illinois has been one of a handful of states that imposes no limits on the amount of money candidates can collect from a single donor. Similarly, party bosses, legislative leaders and political action committees have been free to transfer unlimited supplies of cash to their favorite candidates during the heat of political battle. And, the state has few restrictions on donors that might benefit from some aspect of state government policy including contractors, lobbyists, corporations, unions and industry associations.
This limitless system has nurtured a political climate dominated by "big money" campaign contributions and the problem continues to grow. Former Gov. Jim Edgar gathered just eight contributions exceeding $25,000 during his eight years as governor. During four years as the state's chief executive officer, former Gov. George Ryan collected 35 contributions in the $25,000-plus category. But Rod Blagojevich made history during his six years as governor by collecting 435 individual contributions exceeding $25,000.
In this big money climate, candidates have largely ignored small donors as they target corporations, unions, deep-pocket special interest groups and wealthy individuals for campaign cash. During the 2005-'06 election cycle, Blagojevich's campaign fund collected $18 million, but only $380,000 or 2.1 percent, came from small individual donors. Other candidates during that cycle did a better job of reaching out to small donors, but such contributions failed to exceed 15 percent of total campaign receipts. Judy Topinka, Blagojevich's opponent for governor, collected 11.6 percent of her $9.5 million from small donors. Small donor contributions collected by Treasurer Alexi Giannoulias, Comptroller Daniel Hynes, Attorney General Lisa Madigan and Secretary of State Jesse White totaled 5.7 percent, 6.1 percent, 9.1 percent and 14.6 percent respectively.
This big money trend is troubling at multiple levels. The demand for campaign cash has been at the heart of the recent political corruption scandals infecting the state. The criminal complaint filed against Blagojevich alleged that the impeached governor was willing to trade state contracts, political appointments and other benefits to quench his thirst for heavy campaign contributions.
Big money is troubling in the context of conventional fundraising activities as well. Large donations tend to buy influence with lawmakers and purchased influence undermines the principles of honest public service. Abundant research indicates that large campaign contributions influence decisions made by state officials.
Finally, big money tends to be channeled to statewide politicians, legislative leaders and party chieftains, thus concentrating political power in the hands of a small number of people. With few limitations on transfers by these elected officials and party bosses, money is passed on to rank and file legislators. Indeed, most of the money in the biggest, most expensive legislative races comes from PACs controlled by legislative leaders, not constituents or even special interests. This flow of campaign cash permits the legislative and party leaders to purchase loyalties and further consolidate their bases of power. Voters are demanding campaign finance reform because they understand the link between big money contributions and governmental failures. According to a January 2009 poll conducted by Belden Russonello & Stewart, 78 percent of Illinois residents believe tougher campaign finance laws banning contributions by corporations would have an important impact on state government. Seventy-four percent expressed similar views with respect to labor unions.
Illinois has made some efforts to curb these potentially corrosive flows of big money campaign contributions in recent years. In May 2008 lawmakers attempted to reform the state's corrupt "pay-to-play" political culture by enacting a law restricting campaign contributions between state contractors and the elected officials charged with administering their contracts. This proposal was dubbed the "pay-to-play" ban.
In late October 2009, the General Assembly approved SB 1466, a bill that would create Illinois first-ever system of campaign contribution limits and strengthen campaign finance disclosure requirements. This legislation is a compromise that was negotiated between Democratic legislative leaders and reform advocates, including ICPR.
The new legislation, which was signed into law by Gov. Patrick Quinn on Dec. 9, 2009, is far from perfect. However, ICPR supported the bill because it will help reduce the influence of money in politics while also empowering the public with more timely information about campaign expenditures and contributions. We also recognize that the enactment of a system of contribution limits puts Illinois in a stronger position to enact a public financing system in the future.
The new law will improve Illinois’ campaign disclosure and finance system by:
- limiting the amount of money coming into the campaign system, by capping the amount of money (or services) all individuals, businesses, unions, associations and political action committees can contribute to candidates, political action committees and political parties;
- requiring all candidates and committees to file campaign expenditure and contribution reports every three months, instead of the current six months;
- mandating all contributions of $1,000 or more be made public within 5 business days – or within 2 business day, if the contribution is received in the weeks before an election;
- empowering the State Board of Elections to conduct random and for-cause audits to improve compliance with the law; and
- creating a public, searchable database of penalties assessed by the State Board of Elections for violations of limits and disclosure requirements.
This law also will create a new, bi-partisan task force to study the efficacy and impact of this limits system, while also proposing recommendations. The body also will be charged with studying how a public financing system of elections in Illinois could be created.
The limits portion of SB 1466 takes effect Jan. 1, 2011, after the conclusion of the already-begun campaign season, but some of the disclosure portions of the legislation will take effect July 1, 2010.
SB 1466 is the second campaign finance bill approved by the General Assembly in 2009. The first, HB 7, was approved by the General Assembly in late May 2009, over the opposition of ICPR and other reform groups who objected to the numerous loopholes in the bill. Although Gov. Patrick Quinn initially supported this legislation, he vetoed the bill in late August, after Illinoisans complained about this fatally flawed reform proposal.
This chart compares the vetoed HB 7 with SB 1466, the new campaign finance system.
Citizens United and the Decision's Impact on Campaign Finance In Illinois
Here's a link to the briefing on the new campaign finance law
