Ellis, Erpenbach Announce Major Campaign Finance Reforms

(MADISON)—Less than a half dozen special interest groups have hijacked state elections in Wisconsin and they are fueling a gubernatorial campaign set for obscenely high spending that could exceed $30 million before it’s over, two state senators said today.

As a result, Sen. Michael G. Ellis (R-Neenah) and Sen. Jon Erpenbach (D-Middleton) announced comprehensive campaign finance reforms which they intend to introduce as soon as the 2007-08 Legislative session opens.

“It is appalling to see the huge amount of spending going on across Wisconsin this campaign season,” Ellis said. “Current spending on the governor’s race has already exceeded $10 million – and even more is set to come as the campaign heads into its final week.

“What’s even worse is the starling rise in outside spending by groups who can skirt by our current laws, spreading some of the dirtiest negative ads without telling voters where their money comes from,” said Erpenbach.

Ellis and Erpenbach said they are alarmed by the influence of spending by groups other than the candidates themselves. Spending by outside groups already account for 40 percent of spending in this campaign, an unprecedented number. Ellis said many of the biggest special interest donors to either Mark Green or Jim Doyle are also major donors to the outside groups.

“I am certain that four or five special interest groups account for as much as 80 percent of all the money being spent in this gubernatorial election,” Ellis said.

“Unfortunately, because groups running phony issue ads can avoid disclosing the source of their funding, the public will never know exactly who is funding these ads,” said Erpenbach.

At the same time outside spending is hijacking the campaigns, the use of so-called issue advertising – which are unregulated in Wisconsin – has come to dominate the spending by outside interest. Issue ads escape regulation, including disclosure of their funding sources, because they don’t specifically advocate a vote for an individual. Rather, they urge voters to “call So-and-so and tell them you disagree with his record” on a particular issue.

“These ads, which are typically the most negative ads in a campaign, hide behind a technicality in the law,” Erpenbach said. “When they are run immediately before an election and they target a specific candidate, there’s no doubt these are campaign ads.

Ellis said advertising that endorses or criticizes a specific candidate or a specific office within the time frame of an election is clearly a campaign ad regardless of whether the advertising uses the phrase “vote for.” As such, they should be treated like any other campaign expenditure, including disclosure.”

Under their proposed bill, Ellis and Erpenbach said, groups who run advertising that identifies a specific candidate or otherwise identifies a specific electoral office within 30 days of a primary or 60 days of a general election would be treated the same as regulated independent campaign ads. That would require those groups to register with the State Elections Board and to file reports that disclose the source of their funding.

Another key feature of the Ellis-Erpenbach bill would be to provide matching grants to candidates who abide by spending limits if their opponents exceed those limits or if they are the targets of outside spending that exceeds a treshhold of 10 percent of the spending limits for their campaign.
“Our bill does not prohibit outside spending, nor does it require a candidate to limit spending,” Ellis said. “But it does provide for matching grants so that a candidate who does abide by limits has the wherewithal to respond if an opponent or an outside group tries to dump a ton of money into the campaign.”

Ellis and Erpenbach said their bill would be fully financed with a Public Integrity Endowment Fund supported by public financing. Under the bill, candidates who abide by spending limits would be eligible for a grant from the Clean Election fund, which is funded through a check-off on individual tax returns. The bill would also establish a Public Integrity Endowment that individuals or corporations could donate to and receive a tax credit. Both funds would also fund the matching grants available under the Ellis-Erpenbach bill. If necessary, general tax dollars would be used to supplement the Clean Election fund and the Public Integrity Endowment.

“Our elections are being hijacked,” Ellis said. “The public is being shoved aside by a few special interests who flood the airwaves with garbage and negative ads. As a result, campaigns become negative and personal. They avoid discussion of the issue that matter to most voters. Even worse, they threaten to turn off voters and endanger democracy.”

“Our bill will once again put the public interest front and center,” said Erpenbach.