Obama opts out of public campaign finance system

[Crossroads Inc.]

By JIM KUHNHENN, Associated Press Writer 59 minutes ago
WASHINGTON - Democratic presidential candidate Barack Obama said Thursday he'll bypass the federal public financing system in the general election, abandoning an earlier commitment to take the money if his Republican rival did as well.

Obama, who set records raising money in the primary election, will forgo more than $84 million that would have been available to him in the general election. He would be the first candidate to do so since Congress passed 1970s post-Watergate campaign finance laws. Sen. John McCain, the Republican nominee in waiting, has taken steps to accept the public funds in the general election.

Obama officials said they decided to take that route because McCain is already spending privately raised funds toward the general election campaign. Obama has vastly outraised McCain, however, and would likely retain that advantage if McCain accepts the public money.

The public finance system is paid for with the $3 contributions that taxpayers can make to the presidential fund in their tax returns.

"It's not an easy decision, and especially because I support a robust system of public financing of elections," Obama told supporters in a video message Thursday. "But the public financing of presidential elections as it exists today is broken, and we face opponents who've become masters at gaming this broken system."

Obama has shattered president campaign fundraising records, raking in more than $265 million as of the end of April. Of that, nearly $10 million was for the general election. McCain, on the other hand had raised nearly $115 million by the end of May,

But Obama's clear financial advantage over McCain is offset in part by the resources of the Republican National Committee, which has far more money in the bank than the Democratic National Committee. Both national parties can spend money on behalf of the presidential candidates.

The McCain campaign, in a statement, said Obama "has revealed himself to be just another typical politician who will do and say whatever is most expedient for Barack Obama.

"Barack Obama is now the first presidential candidate since Watergate to run a campaign entirely on private funds. This decision will have far-reaching and extraordinary consequences that will weaken and undermine the public financing system."

Obama said McCain and the Republican National Committee are fueled by contributions from Washington lobbyists and political action committees.

"And we've already seen that he's not going to stop the smears and attacks from his allies running so-called 527 groups, who will spend millions and millions of dollars in unlimited donations," Obama said.

Obama campaign lawyer Robert Bauer said he had met with McCain lawyers to discuss terms for both campaigns operating in the public financing system, but he said they could not agree on how to limit spending by the campaigns and outside groups heading into the late summer party conventions.

He said McCain has had an advantage because he has been running unopposed since he secured the Republican nomination early this year. "The important thing is that John McCain has been running a privately financed campaign for the general election since February," Bauer said. "The problem from our perspective is that the horse is long gone from the barn here."

Despite Obama's claim that outside groups allied with McCain will spend millions of dollars against him, few Republican-leaning groups have weighed into the presidential contest so far. In fact, Obama allies such as MoveOn.org are the ones have been spending money on advertising against McCain.

McCain and Obama both declined public financing in the primary contests, thus avoiding the spending limits that come attached to the money. McCain has been in a dispute with the Federal Election Commission, whose chairman earlier this year said McCain needed commission approval to decline the funds. The FEC has not had a quorum to act, however, because four of its six seats have been vacant pending Senate confirmation of presidential nominees. McCain lawyers have disputed the need for FEC approval.

Last year, both Obama and McCain indicated in separate commitments that they would participate in the public system for the general election, as long as both candidates agreed.

In response to a questionnaire in November from the Midwest Democracy Network, which is made up of nonpartisan government oversight groups, Obama said: "Senator John McCain has already pledged to accept this fundraising pledge. If I am the Democratic nominee, I will aggressively pursue an agreement with the Republican nominee to preserve a publicly financed general election."

While presidential candidates have rejected public financing in primaries, no major party candidate has bypassed the system in the general election.

Well now isn't THIS Interesting

[Qwerty 42]

This is very interesting. I cannot, for the life of me, even begin to see the angle McCain is even coming from in his criticism.

[Mayabird]

This is very interesting. I cannot, for the life of me, even begin to see the angle McCain is even coming from in his criticism.

Here's the line I heard on talk radio this morning at work: supposedly, by taking public money, you're not indebted to lobbyists and special interests who give you money. However, considering Obama raises his money from bajillions of little contributions from lots of people, rather than loads of cash from a few special interests (and this fact is well advertised), the argument doesn't hold up except with stupid people.

[Surlethe]

There's more to the "aggressively pursue an agreement" quote than just that. link

In February 2007, I proposed a novel way to preserve the strength of the public financing system in the 2008 election. My plan requires both major party candidates to agree on a fundraising truce, return excess money from donors, and stay within the public financing system for the general election. My proposal followed announcements by some presidential candidates that they would forgo public financing so they could raise unlimited funds in the general election. The Federal Election Commission ruled the proposal legal, and Senator John McCain (R-AZ) has already pledged to accept this fundraising pledge.

"If I am the Democratic nominee, I will aggressively pursue an agreement with the Republican nominee to preserve a publicly financed general election.

[Elaro]

This is very interesting. I cannot, for the life of me, even begin to see the angle McCain is even coming from in his criticism.

Well, since Obama pledged to use only public financing, Obama refusing federal money means he can use all of his donations, which, if things continue as they are, will give him a financial advantage over McCain.

There's also the question of him going against his word, but if we give Obama's lawyers the benefit of the doubt, then it's because a deal with McCain was not forthcoming. It would be McCain being difficult, not Obama. This is corroborated by this:

Obama officials said they decided to take that route because McCain is already spending privately raised funds toward the general election campaign.

Even though Obama called for returning the private money.

Thirdly, maybe McCain is arguing that if Obama doesn't use public financing, it would set a precedent for other politicians not to use it as well. This would "undermine" the system, in that it wouldn't be used, and the accountability inherent to that system. But that supposes that a) the politicians wouldn't be transparent themselves and b) that the PFS would become unusable through lack of use, which is kinda iffy.

So there's your angles.

[Guardsman Bass]

We'll have to wait until the next election to see if this has rendered public financing a corpse or not. Obama has had immense fund-raising success this year, but it's not clear that every candidate will be able to leverage a large group of small donors that way over the internet, since popularity is a major factor. If candidates both candidates go back on the public financing for the general election next election, then it is still alive and well.

[GrandMasterTerwynn]

We'll have to wait until the next election to see if this has rendered public financing a corpse or not. Obama has had immense fund-raising success this year, but it's not clear that every candidate will be able to leverage a large group of small donors that way over the internet, since popularity is a major factor. If candidates both candidates go back on the public financing for the general election next election, then it is still alive and well.

Public campaign financing in the United States is a joke. Unfortunately, it's a joke on the American voter. Much like getting hit in the groin with a football is a joke on the poor schmuck curled up in a fetal position on the lawn.

[Guardsman Bass]

We'll have to wait until the next election to see if this has rendered public financing a corpse or not. Obama has had immense fund-raising success this year, but it's not clear that every candidate will be able to leverage a large group of small donors that way over the internet, since popularity is a major factor. If candidates both candidates go back on the public financing for the general election next election, then it is still alive and well.

Public campaign financing in the United States is a joke. Unfortunately, it's a joke on the American voter. Much like getting hit in the groin with a football is a joke on the poor schmuck curled up in a fetal position on the lawn.

I wouldn't go that far. The general election funding system still seems to be popular; every president since 1972, when the system came into place, has taken the general election grant and its spending limits.

That's for presidential campaigns, mind you, not the other campaigns in an election year, for which public financing is a joke.

[Uraniun235]

Part of me says he's going back on his word, but part of me also says that it is completely strategically sound - the Republicans have really mastered the art of gaming the system, using the equivalent of sockpuppets to attack with a nigh-unlimited amount of money (and with really dirty attacks, too) while keeping the candidate's "official" campaign "clean".

[Shinova]

There was an article about this on Yahoo, and they were interpreting it as Obama going back on his word.

[Adrian Laguna]

Obama's is not going back on his word in any significant way, far as I am concerned, but he is going back on his word. He said he was willing to come to an agreement, McCain didn't play ball, so there was no agreement. However, he also said he would pursue said agreement "aggressively", and his attempts don't even count as half-assed. This is only to be expected, considering the run away success that private fund raising has been for him. Barack Obama may be the most awesome Presidential candidate we've had in decades, but he's still a politician, and a Chicago politician at that.