Dean Fundraising Question: Matching Funds

[tsipple]

I'm a little unclear about how the matching funds work, and I'm hoping someone can help me understand all that.

The Feds match up to $250 for each individual contributor, right? Since Dean has the highest number of contributors, and since his average contribution is around 80 bucks, would this mean he'd get a disproportionate share of matching funds, other things being equal?

Also, I read somewhere that he filed the paperwork to receive matching funds. When do the matching funds start to arrive? And what's the limit?

So was the 3rd quarter -- around $15 million raised -- actually a circa $25 million quarter with matching funds? Any campaign finance geeks out there understand how this works? Thanks.

[w4rma]

1. information. Note, I hope that Gov. Dean will *not* accept matching funds

during the primary season because of the spending limits that are attached to them. IMHO, the system is currently broken: Bush will be spending at least $200 million while it is my understanding that the matching funds spending cap will be slightly less than $45 million.

It is my understanding that the Dean campaign is looking into opting out of the matching funds system to avoid the spending limits imposed by that system. It is my understanding that both the Dean and Bush campaigns plan to opt into the federal matching funds system for the general election that starts at around the time of the Party conventions.

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Primary election candidates seeking matching funds must also submit a letter of agreements and certifications. This document is a contract with the government. In exchange for public funding, the candidates promise to comply with the provisions of the Federal Election Campaign Act and the Presidential Primary Matching Payment Account Act. As part of this agreement, candidates pledge to limit national spending for all primary elections and to limit spending in each state based on its voting age population.2 Moreover, candidates must agree not to spend more than $50,000 of their personal funds in connection with the campaign.3 The candidates must also facilitate an audit of their campaigns and make any necessary repayments (see below).
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Expenditure Limits
To be eligible for matching funds, candidates must agree to limit their spending to specified amounts (discussed in the "How the Matching Fund System Works" section of this chapter). Primary candidates are subject to both state-by-state limits and to an overall, national ceiling. These limits have presented challenges both for the Commission and for the Presidential campaigns.

Although the limits are indexed to inflation, some campaigns have argued that the ceilings are too low.
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2. The national spending limit is $10 million increased each election cycle by a cost-of-living adjustment (COLA). In 1992, that limit was $27.62 million. Each state's spending limit is the greater of $200,000 plus COLA or $.16 times the state's voting age population. In 1992, the lowest state limit was $552,400. 2 U.S.C. Sec.441a(b)(1)(A).

3. 26 U.S.C. Sec.9033(a) and 9035(a).
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http://www.fec.gov/info/chone.htm

2004 Presidential Campaign Matching Fund Summissions
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Contributions from individuals where the aggregate amount contributed by the individual is $250 or less are eligible to be matched on a dollar for dollar basis from the Presidential Election Campaign Fund. This Fund includes proceeds from the voluntary check-off of $3 per person from income tax returns of eligible taxpayers. Candidates may submit any contribution from an individual (including those where the contribution amount is more than $250) in order to receive matching funds for the first $250 of the contribution. Some contributions included in these files, therefore, will also be included as detailed entries in the regular financial disclosure reports submitted by the campaigns.
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http://www.fec.gov/finance/2004matching/matching.html

FEC APPROVES MATCHING FUNDS FOR 2000 PRESIDENTIAL CANDIDATES
http://www.fec.gov/press/payout1.html