NH Senate Candidates Use New Way to Raise Money

By David Darman on Thursday, January 24, 2002.

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Senator Bob Smith and Governor Jeanne Shaheen have set up a relatively new form of fundraising committee, allowing them to raise unlimited amounts of so called, ?soft money?. The practice is acceptable under federal campaign law, but critics say these new committees are another reason to enact sweeping campaign finance reform. NHPR?s David Darman has more.

Governor Shaheen is not officially a candidate for U.S. Senate. Yet, she has set up a combined fundraising committee with the Democratic Senatorial Campaign Committee. Jeff Cronin of Common Cause in Washington, D.C. says these new committees allow money to come from contributors who are prohibited from giving directly to candidates.
10 36 ?They can take unlimited checks from corporations, unlimited checks from labor unions and unlimited checks from wealthy individuals.

The contributions to a combined committee are also not subject to limits that apply to individual and political action committees.
This loophole in campaign finance law proved lucrative for several senate candidates in 2000. According to the Federal Election Commission, Senator Hilary Clinton raised more than 13 million dollars in her joint committee. The F-E-C says Attorney General John Ashcroft raised 2.6 million dollars for his re-election campaign for Missouri Senator ?although he lost.
Under federal law, candidates who employ the committees can?t spend the money themselves. But the senatorial committees can transfer the money to state parties. Originally the money was used for so called ?party building? exercises, for example, ?get out the vote? efforts. But Larry Noble of the Center for Responsive Politics says a ruling by the Federal Election Commission changed the way this ?soft money? could be employed.
17 17 what?s happened over the years is its evolved into being used for activity that is clearly candidate specific. Even though it doesn?t say ?vote for? the candidate, it will extol the virtues of the candidate or attack the candidates opponent?17 30

In 2000, state parties often spent their millions on television ads that were virtually the same as the candidates? own ads. Although Democrats say they fully support fixing the campaign finance system, Tovah Ravitz Meehan of the Democratic Senatorial Campaign Committee says they will continue using the joint fundraising committees.
25 40 we operate within the full parameters of the law. When and if that changes, and there are the democratic votes to do that, we will then change the way we operate. But until then, I think it would be foolish on the part of democrats to take a step back, unilaterally disarm, and let the republicans move ahead with this. 25 101

This lesson certainly hasn?t been lost on either party in New Hampshire. Democrat Jeanne Shaheen has a joint committee, even though her campaign is only, ?exploratory? so far. Among Republicans, incumbent Senator Bob Smith also has a committee. The only senate candidate who not set up a joint committee is Congressman John Sununu, who is challenging Smith. But Sununu could still decide to establish a joint committee, since there are more than 8 months before primary election day.