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State Party Activity under the Levin Amendment
- Brookings Institution Press
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State Party Activity under the Levin Amendment Mark Brewer Mark Brewer has been chair of the Michigan Democratic Party (MDP) since 1995. He testified on behalf of two plaintiffs, the California Democratic and California Republican parties. In his declaration, Brewer described the Michigan Democratic Party’s goals, range of activities, structure, and expenditures . He gave particular attention to the potential effects of the Levin Amendment, a provision in the reform act that permits state and local party committees to raise and spend limited amounts of soft money for voter identification and mobilization efforts. Brewer highlights the complexities of this provision and contends that it will impose substantial accounting and compliance burdens on state and local party organizations. Although I am familiar with the term “soft money” being used to refer to unlimited contributions from individuals, labor organizations, and corporations , from the perspective of a state party committee, there is no such thing as unregulated “soft money.” There are federally regulated contributions and state-regulated contributions. In accordance with Federal Election Commission (FEC) regulations, 11 C.F.R. §102.5, MDP maintains a “federal account” to receive federally regulated contributions and “nonfederal ” accounts to receive state-regulated contributions, as described below. State-regulated contributions to state party committees—that is, contributions to the nonfederal accounts—are very frequently mischaracterized as “soft money.” Under Michigan state law, individuals and state-registered political and independent committees may contribute an unlimited amount to the state party’s nonfederal accounts, but contributions of treasury funds from labor organizations and corporations are prohibited, except to special accounts for building and maintaining party headquarters, holding certain state conventions and state party meetings, and covering expenditures in connection with ballot initiatives and other expenditures permitted by state law. Under state law, MDP is permitted to contribute up to $68,000 per general election cycle to a candidate for statewide office, $10,000 per general election cycle to a candidate for state senate, and $5,000 per general election cycle to a candidate for state representative. A state party may contribute up to $750,000 per general election cycle to a candidate for 137 03 1583-8 part1b 3/25/03 12:00 PM Page 137 governor who has elected to receive public funding. MDP contribution limits for local candidates range from $5,000 to $34,000 per general election cycle. The MDP may make unlimited contributions for state and local ballot questions. In nonpresidential election years, in which there is not a heavily contested U.S. Senate race, most of the state-regulated funds raised by the MDP are not transferred or raised by national party committees or their officers or agents, or by federal candidates, but by MDP officers and staff and state and local officeholders, candidates, and organizations. For example , in the 1997–98 election cycle, of the total of $7,744,536 raised by MDP, only $1,288,620 was transferred by national party committees, and of this, virtually all was transferred in exchange for federally regulated funds raised by MDP—and not transferred as a net contribution to the state party. In the 2001–02 election cycle, in which there were very few significantly contested federal elections, virtually all of the significant races were statewide, or state or local. In particular, MDP put most of its energy and resources into the race for governor, in which our party had an excellent chance of recapturing the governorship for the first time in twelve years. In this election cycle to date, MDP, its state and local candidates, and nonfederal committees such as the Democratic Governors Association have raised or contributed virtually all of the state party’s funding. Democratic federal officeholders in Michigan (U.S. senators and members of the U.S. House) help raise federally regulated and state-regulated funds for the MDP through direct solicitation and, more frequently, appearances at fund-raising events. In the most recent election, these federal officeholders helped to raise state-regulated funds for MDP in order to help elect the Democratic nominee for governor of Michigan, and to help elect other candidates to statewide and state office. In any given election year, MDP’s disbursements for advocacy of state and local candidates and of the party’s positions on ballot propositions are made without coordination with federal candidates and officeholders. In nonpresidential election years, such as 1998 and 2002, in which there are no or very few significant contests for federal office, MDP’s disbursements for voter registration, activities...