Brief History of CFR in Oregon
In 1994, Oregon voters enacted CFR by vote of 72%
Banned corporate and union contributions
Limits on individuals were $500 for statewide race and $100 for legislative race
In 1997, Oregon Supreme Court decided that Oregon Constitution (Article 1, Section 8) does not allow any limits on contributions

Slide 2

Campaign Spending Skyrockets in Oregon
In 1996, total spending on Oregon campaigns was $4.2 million
In 1997, all limits were removed by Oregon Supreme Court, leaving Oregon one of 5 states with no limits at all
In 2002, total spending was $27 million plus $15 million for Governor race = $42 million
In 2004, total spending was $29 million
(no race for Governor)

Business Outspends Everyone
Corporations outspend labor unions by 5-1 and everyone else by 100’s to one
In 1996 (CFR temporarily in place), business outspent labor by $1.9 million in Oregon
In 2002 (with no CFR), business outspent labor by $11.4 million

Loot for Legislative Races
State Senate Races:  Candidates spending more than $500,000 each:
In 2004: 7
In 2002: 6
State House Races:  Candidates spending more than $250,000 each:
In 2004: 11
In 2002: 10

Governor Race Gushes Cash
Candidates for Governor of Oregon spent $15 million in 2002
Each major party candidate spent over $4 million in general election
Ron Saxton’s campaign manager says he plans to spend over $6 million in 2006

Wealthy Business-People Make Big Contributions - 2002
To the 2002 Mannix campaign for Governor:
Lauren Parks contributed over $540,000
Rod & Rich Wendt (timber) gave $250,000
Joan Austin (medical equipment) gave $200,000
James Monaghan (rock products) gave $115,000
Ron Coffman (ranching) gave $71,000 + $60,000 more from his corporation

Wealthy Execs Fork Over the Bucks – 2006 Primary for Gov
In the 2006 primary for Governor:
Loren Parks gave $713,000 to Mannix
Rod Wendt (timber) gave $100,000 to Saxton
Bill Swindells (timber) gave $100,000 to Saxton

Corporate Interests Do “Independent Expenditures”
“Independent Expenditure” campaigns help favored candidates in a deniable way by attacking their opponents.
The 2006 Oregon primary included:
Loren Parks - $170,000 against Ron Saxton
Grand Rhonde Tribe - $820,000 against Kevin Mannix (R) and Ted Kulongoski (D)

Corporate Interests Pile on the Cash – 2006 Primary for Justice
2006 primary for Supreme Court Justice, Jack Roberts spent over $400,000:
$150,000 from National Ass’n of Manufacturers
$50,000 from Loren Parks
$10,000 from Seneca Jones Timber
$ 5,000 from Lone Rock Timber
$ 5,000 from Freres Lumber

Average Person is Left Out
In 2002 election for Oregon Legislature:
98.5% of Oregon voters contributed nothing
69% of money came from just 1,183 donors--averaging $6,700 each
Only 2% of the money came from those contributing $50 or less

Money Buys Election Results
Oregon Legislature:  biggest spender won 91% of races in 2002 and 2004
Only exceptions in Oregon Senate were 3 former legislators who spent average of $195,000 each
Only exceptions in Oregon House still spent average of $167,000 each

Political Results: Enron, PGE
Enron buys PGE in 1997 and raises rates by $400 million per year
Enron/PGE charges us over $900 million to date for “state and federal income taxes” never paid by PGE or Enron
Enron/PGE destroys over $100 million in PGE employee pensions
Why is this allowed to happen?

"Why"
Why?
Because PGE/Enron has handed out over $500,000 to candidates for the Oregon Legislature
and both major parties

Oregon Corporate Taxes Go Down, Down,  Down

Money Buys Political Results:  Corporate Taxation
Council on State Taxation (2005): Oregon ranks 47th among states in business taxes per $ of economic activity
In 1975, corps paid 18.5% of income taxes in Oregon; now they pay 4%
“Kicker” just cut 2005 Oregon corporate income taxes by 36% ($101 million) and will cut next year’s by 61% ($238 million)

Oregon Taxes the Working Poor
Oregon ranks 2nd highest in U.S. in share of  state and local taxes paid by individuals, not business
Oregon has the 5th highest income taxes in U.S. for a family of 3 earning minimum wage
Oregon has 2nd highest income taxes in U.S. for family of 4 at 125% of poverty line

Political Results: Restaurants, Bars, Gambling
Video poker parlors receive $160 million per year in commissions
Audits show could cut in half (as in Canada) and produce $80 million per year for schools
In 2004, Oregon Lottery Commission decided to reduce commissions by only 3%
Why is this allowed to happen?

"Why"
Why?
Because the Lottery Commission is appointed by politicians, and Oregon Restaurant Association contributed over $1.2  million in last 3 elections.

Political Results:  Tobacco
SB 738 would require sale of only fire-safe cigarettes in Oregon, as in other states
SB 544 would require smoke-free bars and bowling alleys
Tobacco, restaurants forked over $626,000 in 2002-04 contributions to sitting legislators
The Oregonian says this is a disgrace

Need Constitutional Amendment
Measure 46 is one-sentence amendment to Oregon Constitution:
Notwithstanding any other provision of this Constitution, the people through the initiative process, or the Legislative Assembly by a three-fourths vote of both Houses, may enact and amend laws to prohibit or limit contributions and expenditures, of any type or description, to influence the outcome of any election.

Protect from Legislative Repeal
Measure 46 allows initiatives to set or amend limits on contributions and expenditures
Measure 46 allows Legislature to change limits, only with 3/4 vote of both houses
Legislative repeals and harmful amendments in Colorado (2000), Massachusetts (2003), Ohio (2004), and Missouri (2006) were by simple majority votes

Colo Legislature Destroys Limits
In 1996 Colorado voters enacted statutory contribution limits by 2-1 vote
In 2000 the Colorado Legislature raised the contribution limits:
from $500 to $5,000 for governor
from $100 to $1,500 for State Senate
from $100 to $1,000 for the State House
Legislature repealed bans on corporate and union contributions

Other Legislatures Destroy Limits
Massachusetts in 2003 (by voice vote) repealed “clean money” public funding system enacted by initiative
Ohio in 2004 had “emergency session” to increase limits by factor of 4 and open corporate loopholes
Missouri in 2006 repealed all limits, which had been enacted by voter initiative

Measure 47: Contribution Limits
Bans all contributions for or against candidates by corporations and unions
Limits individual contributions to:
$500 in each statewide race (primary & general are considered 2 separate races)
$100 in non-statewide race (legislative seat, city council, county commission, etc.)
$2,500 per year in total to all campaigns, committees, and political parties

States with Overall Limits on Individual Contributions

Small Donor Committees
Under Measure 47, Small Donor Committees (SDCs) can accept only contributions from individuals of up to $50 per year
Membership groups, including unions, can allocate dues to the SDC, up to $50 per member per year
Each union local with authority to support or oppose candidates can form an SDC

Independent Spending
Measure 47 bans all independent expenditures for or against candidates by corporations and unions
Such bans upheld by U.S. Supreme Court in 1990; reiterated by the Court in 2003
Measure 47 limits independent expenditures by an individual to $10,000 per year, with detailed disclosures in the sponsored ads

Measure 47:  Disclosures in Ads
by Independent Expenditures
Every ad must prominently disclose top 5 contributors (of $500 or more) to the campaign, their lines of business, and the amounts each has contributed
Anyone making independent expenditures must report outlay of $1,000 or more within 5 days (or 1 day if close to the election)

Detailed Disclosures in Ads
Must state name of contributor, primary businesses engaged in, and total expenditures during election cycle
Information must be current within 5 days of the TV or radio ad
Video disclosure must remain on regular screen long enough to be fully read
Audio disclosure must be spoken no faster than 5 words per second

Limits Use of Candidate Wealth
Candidate cannot contribute more than $50,000 to her own statewide race or $10,000 to her non-statewide race
Non-incumbent candidate can spend 50% more than these limits from her personal funds
Every ad must disclose amount candidate is contributing to own campaign, if over $5,000
All other contribution limits automatically adjust, if candidate exceeds limits on using personal wealth

Limits are Constitutional
Measure 46 will be part of the Oregon Constitution and overturn the Oregon Supreme Court’s 1997 decision striking down contribution limits enacted by  voters in 1994
The U.S. Supreme Court has upheld similar state limits on contributions (Missouri 2000)
10 States and D.C. already limit aggregate individual contributions

Limits are Constitutional  2
U.S. Supreme Court has upheld complete bans on corporate contributions and corporate independent expenditures
U.S. Supreme Court has upheld complete bans on labor union contributions and (implicitly) independent expenditures
11 states have limits on use of candidate personal wealth in campaigns

Oregon Near Worst in Campaign Contribution Disclosure
Pew Trust, UCLA Law School studies in 2003 and 2004 gave Oregon “F” in disclosure content accessibility and online usability; Oregon among worst 5-10 states
Pew’s 2005 study gave Oregon “F” in disclosure content accessibility and “D” in online usability
Oregon has no searchable online list of candidates and contributors

Oregon Near Worst in Contribution Disclosure (#2)
Oregon has no printed list of candidates’ contributors until months after the election
2005 Legislature enacted bill requiring Secretary of State to implement web-based electronic reporting with  searchable database (after one politician pocketed $60,000 of contributions; was not illegal)
No deadline for SoS to implement this system; not yet in place

Endorsements 1

Sierra Club of Oregon
OSPIRG (Or State Public Interest Research Group)
Alliance for Democracy
Pacific Green Party
Clackamas County Democratic Party
Oregon Gray Panthers
Physicians for Social Responsibility
Northwest Progressive Community
First Unitarian Church Action Groups
Health Care for All Oregon
Universal Health Care for Oregon
Native Forest Council
Jackson County Citizens for the Public Good
Women's Int’l League for Peace and Freedom
Rural Organizing Project (Measure 47)              (continued)

Endorsements 2

State Senator Charlie Ringo
State Senator Ryan Deckert
State Senator Bill Morrisette (Measure 46)
State Rep. Dave Hunt (Measure 46)
Dave Mazza, publisher of The Portland Alliance
Ken Lewis, former President, Port of Portland
Ron Buel, founder of Willamette Week
Drew Kaza, 2004 congressional candidate
Harry Lonsdale
Dan Meek
Lloyd Marbet
Tim Hermach
Delores Hurtado
Barbara Kemper
Andrew Harris, MD

too many others to list

Oregon Voter Poll, Aug 2005
Riley Research
Question:
Oregon currently has no limits on campaign contributions for any state or local office.  Would you favor or oppose the establishment of some kind of campaign contribution limits?

Get Involved!

FairElections Oregon
www.FairElections.net
1-800-939-8011   503-246-2906
info@FairElections.net

Oregon Voter Poll, Aug 2005
Support for Contribution Limits