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For immediate release.
January 27, 2001
Contact: Jesse Rutledge, N.C. Center for Voter Education,
(919) 839-1200

Center for Voter Education: Close “Soft Money” Loophole

RALEIGH – “Soft money’s” distorting and overwhelming influence on state political campaigns should be ended, says the N.C. Center for Voter Education, a nonpartisan organization that studies election reform.

“The problem with 'soft money' is that it’s loophole money,” said Chris Heagarty, executive director of the Center for Voter Education. “It’s a legal way to get around our campaign limits. How can the average voter match the financial clout of the Fortune 500 or the big labor unions?”

“Soft money” refers to campaign contributions made to national political parties that are exempt from standard federal and state campaign limits. In 2000 the North Carolina legislature, while trying to strengthen one campaign finance law, inadvertently opened a loophole in another that permitted national political parties to redirect these unlimited contributions straight to the campaign accounts of state candidates.

The Center praised the work being done federally by Senators John McCain (R-AZ), Russ Feingold (D-WI) and Thad Cochran (R-MS). The McCain-Feingold-Cochran Act would ban “soft money” and limit special interest political. The Center called for the state legislature to ban “soft money” altogether in North Carolina.

Because the contributions are so big, they make the average person feel they don’t have a place in politics anymore, argues the Center, which noted that turnout of registered voters in the 2000 election was the lowest in a generation. It attributes voter apathy in part to the dominance of big money, because it adds to the perception that special interests dominate the process.

“Everybody worries about special interests getting their way with government,” stated Heagarty. “Everyone deserves the right to know how candidates are paying for their campaigns. But we’re basically blindfolded as long as “soft money” is around.”

The Center for Voter Education estimates that over $9 million in “soft money” was put into North Carolina elections. Most of that money, they say, came from contributors outside of North Carolina.

“We saw checks of $100,000, $250,000, and more coming in from places like Las Vegas, New York City and Hollywood, in many cases going directly into the hands of candidates,” Heagarty said. “Why are we letting people outside of our state influencing our elections?”

Heagarty cited the Center’s public opinion research, showing that most North Carolinian’s object to the idea of money from outside of the state playing such a major role in state politics.

“We asked people if they felt candidates for state office should be permitted to accept funds from outside of the state,” he said. “The response was overwhelming: 71 percent felt out-of-state money shouldn’t be allowed, and only 21 percent thought it should be allowed.”

The poll was part of a major statewide survey of public opinion, conducted June 6-8, 2000, of 1,047 likely voters. A survey of this size has a margin or error of +/- 3 percent.

The N.C. Center for Voter Education is a non-partisan, not-for-profit organization based in Raleigh dedicated to improving the quality and responsiveness of North Carolina’s election system. Former U.S. Senator Robert Morgan serves as chairman of the board.

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