Nov. 6, 2001
Money Will Flow in Race to Succeed Jesse Helms
By J. Barlow Herget
RALEIGH - When Jesse Helms and Jim Hunt battled for Helms’ U.S. Senate seat in 1984, the state of Texas also elected a senator. So much Texas money, however, flowed into the North Carolina race, mostly for Helms, that one newspaper ran a story titled “Texas’ other senate race.”
The elections for high-profile offices attract large sums routinely today. The Hunt-Helms race set a record in 1984 for Senate campaign spending at $25.6 million. Helms raised $15.9 million and Hunt collected $9.7 million, much of it from outside North Carolina. Accepting money from out-of-state sources used to be a political drawback for the recipient. It left him or her open to charges of being influenced by “outsiders.” No longer.
Contributions come from all over, and the campaign for Helms’ successor in 2002 will provide a case study for the high cost of campaign financing in the current political market. There is no doubt that our Senate race will be high-profile. Democrats hold only a one-vote majority in the US Senate, which means that any open seat such as North Carolina’s draws national interest … and money.
So, where will the money come from?
Personal wealth has become one of the easiest and most successful ways to pay for campaigns. North Carolina’s own Sen. John Edwards, a wealthy attorney, illustrated that if you’re willing and able to risk your own money, you can become a serious contender without the typical preparation of holding other, lesser offices. Edwards spent over $3 million from personal funds to win the Democratic Primary in 1998. That pales in comparison with other recent big-spenders such as media billionaire Republican Michael Bloomberg who has spent over $41 million this year in his campaign for New York City mayor.
Candidates who bring personal wealth to next year’s Senate race include Republicans Elizabeth Dole and Lexington attorney Jim Snyder, and Democrat Erskine Bowles. Snyder is following Democrat Edwards’ game plan and already has announced he will pay for television ads to be aired before the year is out. Bowles, investment banker, former White House Chief of Staff and son of one-time gubernatorial candidate “Skipper” Bowles, probably brings the largest bank account to the race. If the 1998 race is any guide, candidates can expect to spend between $3 million and $5 million to win the primary.
Individual contributions account for another source of money, but one that requires constant calling. Republican Senate candidate Richard Vinroot candidly talked about the necessity for such time-consuming work in his run for governor in 2000. Unlike in state elections, where contributors can give up to $4,000, individuals in federal elections are limited to donations of $1,000 ($1,000 for the primary; another $1,000 if there’s a runoff; and $1,000 for the general election). You have to call hundreds of people to raise $1 million this way, or you can use large-scale direct mail solicitations. Helms has been a master with direct mail; 65 percent of his 1984 funds came from people who gave him $200 or less, much of it from such mailings.
If campaign trends from the 2000 election continue large sums of “soft money” will pour into North Carolina from two other major sources. One group is comprised of the respective political parties, which typically don’t get involved until after the primary election. Special interest or “issue advocacy” groups constitute the other money cow.
In a study by the Center for the Study of Elections and Democracy at Brigham Young University, researchers found that tens of millions of dollars from such organizations were spent on key House and Senate races in the 2000 federal elections. This “supplemental” campaign spending sometimes amounted to more than the candidates raised and spent themselves.
The political parties, thanks to a loophole in the law, can raise unlimited amounts of money and direct it to targeted campaigns. They can raise hundreds of thousands of dollars in “soft money” from individuals and special interests such as labor unions or business groups like Citizens for Better Medicare, a pharmaceutical lobby. While the money from political parties is kept separate from the candidate’s on the books, it is spent on political advertising and get-out-the-vote (GOTV) campaigns which are hardly distinguishable from the candidates’ own work.
Issue advocates include legitimate non-profit organizations, but some of them are nothing more than election-year fronts for individuals or business interests. The Brigham Young study reported that in 17 competitive races, $95 million was spent on television and radio advertising. The sources for the money were as follows: $40 million from political parties, $35 million from candidates, and $20 million from interest groups.
All of these sources will be in play in next year’s Senate race. The odds, as in the notorious 1984 election, favor the candidate who invests, raises, or receives the most money.
Barlow Herget is a businessman and former member of the Raleigh City Council.
743 W. Johnson St.
Suite E
Raleigh, NC 27603
919.839.1200