With six months left in 2008, candidates for City office in the 2009 elections are raising funds at an unprecedented rate. But amidst the heavy fundraising and spending during this busy political year, candidates have turned their focus to raising funds in smaller contributions, according to an analysis of financial disclosures filed with the Campaign Finance Board covering the six-month period ending July 11, 2008.
Campaigns filed financial disclosures with the CFB on Tuesday, July 15 for all financial activity between January 12 and July 11, 2008. This was the fifth scheduled disclosure filing (Statement #5) for the 2009 election cycle. Click here to see a list of disclosure statement filing deadlines for the 2009 elections.
“The renewed focus on small contributions shows that last year’s reforms are taking hold,” said Amy Loprest, Executive Director of the CFB. “Matching funds provided through the Campaign Finance Program enable average citizens to weigh in to the political process in a meaningful way. While ‘pay-to-play’ contributions are becoming a thing of the past, campaigns are replacing them with small-dollar contributions—which is exactly what the law intended.”
With all three citywide offices open in 2009, as well as four of five borough presidencies and two-thirds of the Council—a situation not unlike 2001, when term limits took effect for the first time—interest in the upcoming elections is very high. These trends provide good reason to believe the 2009 elections will conducted amidst record participation by the citizens of New York City.
OVERALL FUNDRAISING SLOWS
For the first time in this election cycle, fundraising for local offices has slowed. Though candidates are still raising money for the 2009 election cycle at a record pace, less money was collected by candidates for city office over the past six months (January-July 2008) than over the previous six months (July 2007-January 2008).
Net contributions by disclosure period through Statement #5,
2001 and 2009
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Still, more was raised than in the comparable period during the 2001 election, putting candidates on pace to make the 2009 elections the most expensive in memory. The results may suggest that fundraising has hit a plateau, or that attention has temporarily shifted to imminent elections at the state and federal level.
Though fundraising slowed, the number of candidates raising funds increased from 88 to 131. Additionally, more contributors gave money to City campaigns during the past six months than in any of the previous filing periods, suggesting that small contributors are starting to play a greater role in City campaigns.
Number of contributors, small contributors, and average contribution size
by filing period, 2009 elections
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SMALL CONTRIBUTIONS INCREASE
Campaigns are doing more to reach out to small contributors. A central goal of the Campaign Finance Program is to enhance the voice of small contributors by matching them with public funds. Small contributions help decrease the possibility or perception of corruption in the political system, and they create a more active class of citizens who invest not only their money, but their time in the political process.
During the six month period that ended July 11, 2008, campaigns brought a new focus to raising small contributions. The chart below shows the percentage of contributors who gave $250 or less during each six-month fundraising period since the start of the 2009 election cycle.
Percentage of contributors giving $250 or less by filing period,
2009 elections
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During the last six months, nearly 72 percent of all contributors to city campaigns gave $250 or less—compared with only 57 percent of all contributors through January 11, 2008.
A CFB analysis of contributions through January 2008 showed that small ($250 or less) contributions made up a smaller proportion of overall fundraising than in previous election cycles. (For 2001 and 2005, the proportion of small donors over the entire election cycle was 77 percent and 74 percent respectively.) This past six-month period seemed to reverse that trend.
Changes to the Campaign Finance Act that took effect in January may be partly responsible for the increase in small contributions.
The matching rate was changed to emphasize smaller contributions. For the 2009 election, the CFB will match the first $175 of contributions from City residents at a rate of $6 to $1, which provides even greater incentive for campaigns to reach out to average citizens who may not be able to afford to make large campaign contributions.
New limits on contributors who are “doing business” with the City took effect. Following the certification of Phase 1 of the Doing Business Database, the new, lower limits for individuals connected to entities holding City government contracts, franchises, and concessions became effective on February 3, 2008, less than one month into the filing period. The new limits also covered registered City lobbyists as of that date.
These are encouraging signs for the City’s political system as the 2009 election approaches.
SPENDING SWELLS
While campaigns increase their focus on smaller contributors, they are also spending at rates previously unprecedented this early in the election cycle. Over the past six months, $2.6 million in campaign funds were spent, a 34 percent increase from the same time frame in the 2001 election cycle. Over the entire election cycle to date, candidates have spent more than $8 million—almost twice as much as during the first five disclosure periods of the 2001 election cycle.
Net expenditures as of filing Statement #5, 2001 & 2009
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Certainly, as more candidates commence raising and spending money, overall spending has steadily increased since the start of the election cycle. But even when taking the increased number of candidates into account, the average candidate has spent 36 percent more through the first 30 months of the 2009 election cycle ($55,000) as was spent for the similar period for 2001 ($41,000).
Campaigns that join the Campaign Finance Program agree to limit their spending as a condition of receiving public funds. Those limits help reduce the pressure for candidates to engage in an endless chase for campaign cash, and help provide a more level playing field for candidates. Separate limits are applicable to the primary and general elections, as well as for the three “out years” leading up to the election year.
For more information or detail about campaign fundraising and spending, please visit the CFB website’s financial summary page or the searchable campaign finance database.