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AFSCME's Position – Campaign Finance Reform

Background

The 2004 election was the first election to be conducted under a campaign finance law enacted in 2001 that made substantial changes in the conduct and financing of election campaigns.  The law, known as the Bipartisan Campaign Reform Act (BCRA), was sponsored by Senators John McCain (R-AZ) and Russell Feingold (D-WI) and by Representatives Christopher Shays (R-CT) and Martin Meehan (D-MA).  In addition to the limited experience of only one election under BCRA, not all of the regulations related to the law have been finalized.  As a result, the full impact of BCRA on elections has not yet been realized.  Nonetheless, new efforts are underway to make additional revisions in campaign finance law.  AFSCME opposes these new efforts, not only because they are premature, but because they would limit the grassroots activities that help increase voter turnout and because they would further diminish the influence of ordinary Americans on the political process.  

Summary of legislation

Sens. McCain and Feingold and Reps. Shays and Meehan have introduced the “527 Reform Act,” (S. 271/H.R. 513).  (The bill’s name refers to section 527 of the Internal Revenue Code which explains the tax treatment of funds used for political activities conducted by a variety of organizations, including unions.)  S. 271/H.R. 513 would prohibit AFSCME International from providing financial assistance to AFSCME councils that conduct grassroots activities to encourage the general public to support endorsed state and local candidates.  The legislation also would prohibit AFSCME and other unions from supporting independent political organizations, like America Votes, that conduct grassroots activities to increase voter turnout on Election Day.

 Largely along party lines, the House passed an amended version of H.R. 513 in April 2006, by a vote of 218 to 209.  The amended version included a provision that would roll back a Watergate-era reform that limits the amount of money the national party committees can spend in coordination with federal candidates.  Because the Republican National Committee has historically raised more funds than the Democratic National Committee, removing the party spending limit would create an advantage for GOP candidates. 

After a Senate committee considered S. 271 and made amendments to it, it was reintroduced by Sen. Trent Lott (R-MS) and given a new number – S. 1053.  S. 1053 is even more harmful, because it reverses campaign finance reforms enacted in response to the Watergate scandal.  One of the changes would allow business trade associations to raise more political funds, strengthening the influence of business interests at the expense of working families.  A vote by the full Senate on S. 1053 has not taken place.

AFSCME position

Given the limited experience with BCRA and the incomplete regulations, it is premature to make further changes in the rules that govern the conduct and financing of elections.  In addition, campaign finance bills proposed thus far are deeply flawed, as summarized below.

• The McCain-Feingold/Shays-Meehan bill (S. 271/H.R. 513) and the amended versions (S. 1053/H.R. 513) would prohibit AFSCME International from providing financial support to AFSCME councils to conduct grassroots activities that encourage the general public to support endorsed candidates for state and local office.  The bill would also prohibit AFSCME from supporting independent 527 organizations that engage in grassroots activities.  In 2004, the grassroots activities of 527 organizations helped to produce the highest voter turnout since 1968.

• The bills roll back certain Watergate-era reforms that would create fundraising and spending advantages for GOP candidates. 

What you can do

Urge your Senators to oppose the “527 Reform Act” (S. 1053).  Let him/her know that this legislation would limit the ability of AFSCME councils to conduct grassroots activities in support of state and local candidates.  Also let them know that the bill would allow business interests to further dominate the political process at the expense of working families.

Department of Legislation
October 2006

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