This op-ed appeared in The State today. It was written by John Crangle, a longtime member of the SC Progressive Network and advocate for our clean elections initiatives.
By John Crangle
Common Cause of South Carolina
The controversy over Attorney General Henry McMaster’s acceptance and later return of $32,000 of campaign contributions from lawyers he hired to represent the state of South Carolina in a lawsuit against drug companies is yet another episode in a continuing chronicle of attorneys general taking campaign money from lawyers and parties having legal business with the state.
The problem arose when Attorney General Travis Medlock was running for governor, when Attorney General Charlie Condon was running for governor and U.S. Senate and now with McMaster running for governor.
The danger of conflict of interest, favoritism, abuse of office and corruption ia very real for attorneys general, who have in their jurisdiction great discretionary power. The attorney general can decide which lawyers are retained to represent the state in multimillion-dollar lawsuits, which in some cases produce huge attorney fees. Furthermore, the attorney general is in a position to file civil suits and to favorably settle suits benefiting an adverse party. In criminal matters, the attorney general has the power to decide whether to seek an indictment, whether to prosecute, whether to plead a case down or even dismiss.
All of these decisions can have catastrophic or highly beneficial consequences to the lawyers and parties involved. Many lawyers and clients would pay dearly for favored treatment by the attorney general in such cases.
It is all too easy for campaign contributions to influence the decision-making of attorneys general, especially in close cases where great civil or prosecutorial discretion is in play. Given the extensive history of public corruption in South Carolina over the years, it is not far-fetched to envision a future attorney general trading favors for campaign contributions.
Public financing of races for attorney general would be the best cure for the problem of corrupting campaign contributions. As a member of Gov. Jim Hodges’ Commission on Campaign Finance Reform in 2000-01, I argued that the danger of pay-to-play corruption was most acute in the office of attorney general due to the great discretionary power of the office and the enormous stakes involved in major civil and criminal cases. It also seemed that the cost of public financing for the attorney general race would be modest since at the time candidates were spending relatively small sums
The big objection to public financing is always that the taxpayers should not have to pay for the cost of election campaigns. Of course, the taxpayers already pay many costs of elections, including the expense of the S.C Election Commission, the county election commissions and all of the related costs of providing polling places, buying multimillion-dollar voting equipment and hiring poll workers. In case of election appeals and litigation, the taxpayers pay much of these costs too.
My proposal is to have an unprecedented public financing system for attorneys general whereby the ordinary taxpayers pay nothing, but the necessary money would be raised by a tax on campaign contributions to political candidates. As candidates for state and local office raise well over $20 million every four years, a tax of 10 percent would generate enough money to provide candidates for attorney general with public funds sufficient to communicate their positions and qualifications to the voters.
Supreme Court rulings give candidates the right to raise money for their own campaigns, so the state can only offer to give them public financing in exchange for voluntarily not raising money. So public financing alone wouldn’t accomplish our goals. But if we retain the existing laws that limit campaign contributions by source, amount and use, ban contributions from special counsel as suggested in a recent editorial column by Cindi Ross Scoppe and also add my proposal for public financing, we could deter conflicts of interest and abuse of office and inhibit corruption in the position of attorney general.
Finally, an especially and difficult manifestation of the problem is incumbent attorneys general raising funds for another office such as Congress or governor. Although we can’t prohibit an attorney general from raising money, for re-election or election to another office, we can prohibit an incumbent from transferring funds from an attorney general account to a campaign for another office. And we should.
Public financing for the attorney general’s race can serve as a pilot project. If voters and legislators conclude after a trial run that public financing has worked well for attorney general candidates, then public financing could next be tried for another office, such as governor or treasurer.








Support up for public campaign financing
Friday, December 18th, 2009‘Hustle for money’ compromises officials, group says, and more N.C. voters see that.
By Jim Morrill
The Charlotte Observer
When the N.C. Voters for Clean Elections began a decade ago, only a few reformers championed the idea of publicly financing state political campaigns.
Since then, North Carolina has adopted public financing for the campaigns of appellate court judges, three Council of State offices and local officials in one town.
“Little by little, we’re demonstrating that publicly financed election processes are not only possible but work better for candidates and voters alike,” said Chase Foster, director of the reform coalition.
Last week, more than 50 people gathered at a downtown Raleigh cafe to celebrate the coalition’s 10th anniversary. Among them were legislators and at least two statewide elected officials.
Ten years ago, North Carolina still had a reputation for clean politics. Since then, voters have seen a former state House speaker, a congressman, an agriculture secretary and two legislators imprisoned for corruption. This fall, a special state prosecutor began to investigate a former governor.
All that helps fuel hopes for more changes. Advocates of publicly financed campaigns point to polls they say show growing public support.
An Elon University poll last month showed 87 percent of North Carolinians think campaign contributions influence elected state officials. And a statewide survey by Public Policy Polling in November found 65 percent say they’d support giving “a limited amount of public funds” to candidates.
“More people recognize that we’ve got to address the heart of the problem, and that’s the hustle for money that’s going on in big campaigns,” said Bob Hall, director of Democracy North Carolina, a watchdog group. “That is translating into support for public financing of campaigns.”
Public-finance advocates say the escalating costs of campaigning has forced candidates to rely heavily on political action committees and other special interests. They say 90 percent of campaign money in North Carolina comes from less than 1 percent of the population.
There are several proposals for further public financing in the General Assembly, and at least one in Congress.
All but a handful of the 120 co-sponsors of the federal Fair Elections Now Act are Democrats; one of the few Republicans behind it is Rep. Walter Jones, of Eastern N.C.’s 3rd district. Virtually all the sponsors of the state legislation are Democrats.
“It’s absurd,” state Republican Sen. Bob Rucho of Matthews said of public financing. “As far as I’m concerned, there’s still freedom of speech. You should be able to put the money you want to in a campaign and say what you want to say. The taxpayers shouldn’t be burdened with this cost.”
North Carolina’s judicial public financing program is funded by voluntary tax check-offs and by $50 fees on lawyer licenses. While some N.C. elections have been funded with tax money, that could change.
Plans to expand public financing in Council of State races would be funded entirely by assessments on those doing business with the particular agency or are regulated by it.
To qualify for public funding, candidates typically have to raise a number of small contributions and agree to spending limits.
Rep. Rick Glazier, D-Cumberland, said recent headlines about politicians in trouble adds momentum to the push for public financing.
“People are looking for ways this doesn’t spiral so far out of control,” he said, “that we lose the capacity of the public to really be the key factor in democracy.”
Tags: campaign finance reform, public financing
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