New Small-Donor Matching Funds System in Montgomery County, MD

Yesterday, Montgomery County, Maryland voted to create a public matching funds program for county elections. The new system, based largely on New York City’s program, was adopted unanimously by the county council in the hopes it will “draw more small, individual donors into campaigns and limit the influence of special interest money,” according to the Washington Post.

This is great news, and a huge boost for reform prospects in other jurisdictions. The program should be of a significant size. Montgomery is the largest county in Maryland, with nearly one million residents. Its population is larger than six states, and all but nine U.S. cities. It borders Washington, DC, which means that lawmakers in our nation’s capital will see the results of this experiment in people-driven democracy unfold in their own backyard.

Here’s how it will work, and how it differs from New York City’s system. Like NYC’s program, the system is voluntary. Candidates who join must demonstrate significant public support by collecting a certain number of contributions from county residents in order to qualify for public funding.

New York City’s Campaign Finance Program matches the first $175 contributed by a New York City resident to qualifying candidates at a rate of $6-to-$1, for a maximum of $1,050 in matching funds. Montgomery County’s system is similar. The program will match contributions between $5 and $150 from county residents. For county executive candidates, the first $50 will be matched at a rate of $6-to-$1; the next $50 at $4-to-$1; and the next $50 at $2-to-$1. This means that three contributions of $50 will be matched with $900, while a single $150 contribution will be matched with $600. For county council candidates, the matching rate starts at $4-to-$1 for the first $50; $3-to-$1 for the second $50, and $2-to-$1 for the next $50.

Unlike NYC’s program, candidates who join Montgomery County’s new system will not have spending limits, and contributions are limited to the maximum matchable amount, $150. Public funds are capped, but candidates who “max out” may continue to raise and spend small-dollar contributions. The lower contribution limit and graduated matching rate will ensure candidates rely on small contributions to fund their campaigns. (See the CFB’s 2013 post-election report, p. 130, for a discussion of spending limits in future cycles in NYC’s program.)

For evidence their proposal would work, the Montgomery County Council looked to New York City, citing the results of a study by the Brennan Center for Justice and the Campaign Finance Institute, which showed that small donors to New York City Council candidates in 2009 came from a diverse range of neighborhoods across the entire city, covering 90% of the city’s census blocks. By comparison, in NY State Assembly races, which lack public financing, small donors in the 2010 elections came from only 30 percent of the city’s census blocks. (For a look at donor diversity in the 2013 elections, visit the CFB’s contribution maps, prepared by the Center for Urban Research at CUNY.)

Montgomery County’s public financing system will take effect for the 2018 elections. Here in NYC, we will be watching closely to see the results!