For Release: Monday, June 19, 2006 Contact: Bob Hall 919-489-1931

PROGRAM REWARDS CHIEF JUSTICE, OTHERS
FOR REFUSING SPECIAL-INTEREST DONATIONS

PAC & Attorney Donations Drop as Voters “Own” Elections

As legislators consider ways to wean themselves from lobbyists’ gifts and campaign donations, a report released today highlights the impact of North Carolina’s first program that rewards candidates for obeying various “public trust” conditions and fund-raising limits.

The General Assembly adopted the program in 2002 as a way to reduce the practice of judges accepting campaign donations from attorneys and others who may appear in their courts.

The report says that since the program’s adoption:

     • 20 of the 28 candidates in the 2004 and 2006 general elections for the N.C. Supreme Court and Court of Appeals have met the program’s conditions and received “clean” public funds for their campaigns.

     • On average, their campaigns rely on attorneys and special-interest groups for less than 14% of their non-family funds, compared to 73% for candidates in 2002, before the reform.

     • The program’s participants span the political spectrum, including incumbents and challengers, men and women, blacks and whites, Republicans and Democrats.

     • Thousands of registered voters – more than 4,000 in 2006 – are providing the modest qualifying donations that authorize the candidates to qualify for the public funds, the report says.

“There were lots of questions about whether this program could work,” said Bob Hall of Democracy North Carolina, the nonpartisan watchdog group that produced the report. “But it’s proving very popular with candidates, valuable for voters, and even effective against high-spending opponents who don’t like the public accountability rules built into the program.”

The report notes that Supreme Court Chief Justice Sarah Parker received an extra $54,595 last week for her election campaign in response to her opponent’s significant private fund-raising. She agreed to a spending limit for her campaign and raised several hundred donations from registered voters to qualify for a grant of $216,650 for her general election campaign.

But her opponent, Rusty Duke of Greenville, refused to accept a limit and has already raised more than $270,000 from attorneys, builders, developers, and other donors. That amount exceeds the limit Parker accepted, so she will receive “rescue” funds from the Public Campaign Fund.

“Rescue funds are an important safety feature,” Hall said. “Without them, a candidate would be handicapped for agreeing to stop fund-raising after qualifying for public funds.”

Parker is one of eight candidates for the N.C. Court of Appeals and Supreme Court who qualified for the benefits of the program this year, the report says.

At the end of May, those eight candidates received grants of between $144,500 and $216,650 for their campaigns – and agreed to take no funds in the general election from special-interest groups, attorneys or anyone else.

Four other candidates for the state’s top courts, including Duke, either did not try to qualify or were unable to collect at least 350 donations from registered voters, the minimum needed to demonstrate broad public support under the program’s rules.

The report points out that the program is “engaging a remarkably large number of people in judicial elections.” All eight of the qualifying candidates this year raised at least $10 from more than 500 North Carolina registered voters.

“This is essentially a sweat equity program, not a giveaway,” said Hall. “It allows the candidate who focuses on building grassroots support to leverage the approval of hundreds of voters into access to enough ‘clean’ money to run an effective campaign. Because the investment from registered voters is pivotal – through qualifying contributions and the Public Campaign Fund – this is called a ‘Voter-Owned Elections’ program.”

In the 2004 election, 12 of the 16 candidates used the program, including four of the five winners. The report says that special-interest groups and attorneys supplied less than 14% of the funds raised by those 12 candidates (excluding money provided by the candidate’s family).

By contrast, candidates in the 2002 appellate court races raised 73% of their campaign funds from attorneys and political committees. More than half – 55% – came just from attorneys.

Hall noted that a lobbyist making a case – and a donation – to a legislator presents similar conflict-of-interest issues to the relationships between attorneys and judges. “Regulating these relationships is important, but regulations have a limited value unless you offer public officials an alternative source of financial support so they don’t need the self-interested money,” he said.

As a result of a series of scandals in recent months, legislators are debating what type of gifts should be banned from lobbyists and whether a ban on lobbyists making, or raising, political donations would stand up to a constitutional challenge.

Another bill in the state House (H-1851) would begin a pilot program that offers a public financing option to candidates running for the state legislature in two House districts and two Senate districts. Its provisions are modeled on the program for appellate court elections. In addition, it provides rescue funds to a qualified candidate who is attacked by a 527 committee or similar electioneering group.

The bill was one of 10 recommended by the House Select Committee on Ethics and Governmental Reform, which began meeting after the House Speaker became embroiled in lobbying and campaign-finance controversies.

Several other states provide a public-financing option for legislative candidates, including Maine, Arizona, Connecticut and New Jersey’s pilot program.

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CLICK HERE for the full report on the Judicial Public Financing Program, 2004 - 2006.