Thursday, March 4, 2010 4:57 PM
Study: CT. Public Finance Mixed
A new system of public financing for state candidates in Connecticut resulted in a decrease in large donors and an increase in individual contributors in 2008, according to a Campaign Finance Institute study out this week.
Under a state law that went into effect with the 2008 campaign cycle, candidates must collect a certain number of contributions between $5 and $100 in order to qualify for public funding. According to the preliminary findings, the law "stimulated" candidates seeking public funding to steer away from large donors and instead involve a larger number of small donors.
Understanding why more people get engaged in giving small contributions and giving in some contexts more than others was the initial intent of the research, according to CFI Executive Director Michael Malbin. "We also wondered if you could get enough people into that game to replace the large donors," Malbin said, by using tools such as rebates and tax credits on contributions and public finance.
Yet while the law in Connecticut enthused low-dollar contributors, the study found the candidates did not "reach out to a more representative set of donors and volunteers" than in 2006 because once they reached the qualifying threshold, addition money raised would roll over to the state.
To resolve the disincentive, Malbin proposed a solution earlier this year which, like the Fair Elections Now Act, would seek to lower contribution limits and provide matching funds to encourage small-money donors.
Connecticut's system, on the other hand, "requires candidates to buy into a spending limit, either full or partial," Malbin said. Most candidates opt out of public funding "afraid to buy into a spending limit because they don't know what might hit them at the end of the week."
"Instead of telling candidates to expect a spending limit, we propose -- like FENA -- to take a lower contribution limit. That kind of approach gives candidates incentive to activate more small donors than a closed funding system."
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