Campaign Finance Laws Weakened

The Center for Governmental Studies has released a report on the state's Prop. 35 called "In the Dead of the Night: How Midnight Legislation Weakened California’s Campaign Finance Laws, and How to Strengthen Them.

Placed on the ballot by the Legislature in November 2000, Prop. 34 left California with exceedingly high contribution limits that have done little to reduce the impact of money on state politics.

The report describes how the California Legislature, in a midnight legislative session, placed Prop. 34 on the ballot to undercut a stronger measure, Prop. 208, enacted by voters in 1996.

“This report shows that Proposition 34 appears to have accomplished exactly what legislators wanted it to accomplish,” said center President Robert Stern. “It eviscerated the stronger contribution limits and campaign finance laws approved by the voters in Proposition 208. Contribution levels after Prop. 34 have been approximately the same as without any contribution limits.”

A center analysis of legislative races between 1998 and 2004 supports the conclusion that wealthy individuals and special interests continue to dominate contributions to state candidates and officeholders. Despite Prop. 34’s enactment, non-individuals - including PACs, corporations and political parties - still give in much higher ratios than individuals, and large contributions of $1,000 or more continue to outnumber small contributions to legislative candidates.

The report examines the history of the state’s campaign finance laws and makes specific recommendations to improve California’s campaign finance system.

The report found that candidate contribution limits imposed by Proposition 34 are too high, state political parties have become conduits for large contributions to candidates, contributions in non-election years often serve as governmental access or special treatment money which primarily benefits incumbents and independent expenditures and spending by wealthy candidates are a significant challenge.

The report is available at www.cgs.org.