CalMatters data reporter Jeremia Kimelman contributed to this story. Westrups consulting firm, Sempervirent Strategies, is paid $10,000 per month by the Committee For California, its largest expenditure during the most recent two-year election cycle. In the event a campaign has money left over, there are a few options for what can be done with the funds: Cover costs of winding down a campaign, including "gifts or donations of nominal value" to campaign donors or staff who are not members of the candidate's family. If a candidate has dropped out, they can simply refund the money to their donors.They can also donate it to political allies, political parties, or (with a . By Browns gubernatorial terms, including but not limited to climate action, criminal justice reform and public safety, and education, spokesperson Evan Westrup said in an email. Democrats control far more of this "leftover" money than Republicans, $25.4 million compared to $5.5 million. Copyright 2023 CQ Roll Call. A representative for Chiang did not respond to emailed questions. Leave the surplus funds in the campaign account for use in a future election campaign. Want to submit a guest commentary or reaction to an article we wrote? There are seven ways that you may use that leftover money. Those who dont hold onto their money for a future campaign can give it to charity, return it to donors, donate to other candidates (within the statutory limitations of the state in which the candidate is running), use it to set up a political action committee or hand it over to their political party. Under the first group,[4] unexpended campaign contributions may be: In addition to the uses described above, a person elected to office may also use unexpended campaign contributions for any of the following additional purposes:[5]. The Straus Way: Start a PAC and Spend In Favor of Candidates State Rep.: Joe Straus (R-San Antonio) was speaker of the Texas House from 2009- 2017. That means former lawmakers who work for lobbying firms can contribute cash to erstwhile colleagues even as different laws impose bans for a period of time on directly lobbying them. Others are using the money to keep a foothold in the public arena, slowly spending down whats left on political donations, charitable contributions and administrative expenses. After you've repaid any loans to the campaign, whatever's left is surplus campaign funds. But you might be able to spend funds on a pizza dinner for campaign staff at work, he added. Many of the accounts hold massive debts and must remain open if the candidates ever plan to raise cash to pay off outstanding loans and bills. 0000014625 00000 n The Federal Election Commission (FEC) has outlined a series of rules for politicians' leftover campaign funds. 0000013579 00000 n On the Democratic side, retiring Arizona Rep. Ann Kirkpatrick has converted her reelection fund to a PAC called Moms Fed Up, according to FEC disclosures. 0000004547 00000 n Federal regulators last week allowed a legal loophole that could effectively let former members of Congress spend leftover campaign money on personal expenses. PACs can give bigger contributions to candidates up to $5,000 a year, compared with a limit of $2,000 per election for candidate reelection accounts. And some of the money is merely sitting idle, in accounts where nothing much goes in or out, save interest and annual state filing fees. Through a colleague at the consulting and lobbying firm Actum, where he is a managing partner, Nnez agreed to an interview for this story, but never followed up. Conklin said candidates are also permitted to keep the stash of cash to use for future political campaigns. Any earnings generated by the accounts are subject to taxes. Some of those ways are: Donate to a charity registered with the Secretary of State's office. Bklyner was the first to report on Goldens leftover campaign contributions. [3] See Rule 10.17(h) of the Secretary of States Rules Concerning Campaign and Political Finance. The 2026 treasurer campaign controlled by former Assembly Speaker Fabian Nez, for example, is sitting on nearly $2 million. Theyre even allowed to spend the funds any way they wish, with one notable exception. 0000059474 00000 n Florida Gov. Former Assemblymember Dario Frommer, who did not respond to multiple interview requests, still has $593,000 sitting in a committee for a 2026 controller campaign, all of it raised before he termed out of the Assembly in 2006. However, prior to 1993, U.S. The section of the FCPA that addresses unexpended campaign contributions is 1-45-106, C.R.S. startxref So, what happens to that money after the voters have spoken and the polls have closed? Nearly 100 committees are sitting on $35 million in leftover campaign funds. I hope theres more in my future. Taking it with them: Members leaving with money in the bank, Law is flexible about using nearly $53 million in campaign, PAC acounts, invest $5 million of his political money in a super PAC, found himself at odds with much of his party. By November, after another $350 payment to the committee treasurer, his lieutenant governor account had just $73.76 left. But they also serve as campaigns-in-waiting for presidential contenders - funding travel. Westrups consulting firm, Sempervirent Strategies, is paid $10,000 per month by the Committee For California, its largest expenditure during the most recent two-year election cycle. Ohio Republican Rob Portman, who is retiring after two Senate terms, had $3.6 million in his reelection fund after paying out almost $1.3 million in refunds through Sept. 30. A representative for Chiang did not respond to emailed questions. 0000007600 00000 n Miss that window and the funds are designated surplus.. In the 2004 presidential race, Senator John Kerry and incumbent President George W. Bush gave their leftover primary funds to the Democratic National Committee and the Republican National Committee. Leftover money can be transferred to other candidates' races, political parties, PACs, charities, even potential recounts. The harder part is when they go on a trip to Hawaii and attend an event, Stern said. If qualified by the petition method and filed an oath stating that it would impose an undue burden on your personal or other resources to pay the fee to verify petition signatures, you will first need to reimburse the state or local government entity, whichever is applicable. The statute classifies permitted uses of unexpended campaign contributions in two groups. De Lens most recent publicly reported contribution was a $25,000 payment filed on Election Day to the Santa Clara County Board of Education campaign of Magdalena Carrasco, his former romantic partner and the mother of his daughter. As of. 0000220193 00000 n Spokesperson Evan McLaughlin, in a text message, declined to provide further information on the goal of the account beyond the obvious motivation reflected in the committees name and the reputation of its sponsor.. These "zombie accounts" can allow politicians to use unspent campaign funds to buy influence and fuel Washington's corrupt "pay-to-play" politics. Top beneficiaries include an unsuccessful 2020 ballot measure to restore affirmative action in California, this years successful re-election campaign of Insurance Commissioner Ricardo Lara and the Los Angeles County Democratic Party. "Yes, they can use the funds to run for office again," he told this newspaper. This story was originally . And its perfectly legal, the New York State Board of Elections said. Leadership PACs are generally established as a way to allow political figures to support other candidates. However in those rare instances when there is a surplus: * They can return it. Sen. Heidi Heitkamp, D-N.D., at the Capitol on March 14, 2017. 0000002951 00000 n Answer (1 of 6): Because that's the American way! 0000220870 00000 n For more information on how you can spend surplus campaign funds, check out Surplus Funds FAQ. That's legal, too. Politicians are often left with unspent campaign funds after a successful election. Lockyer's seven-figure war chest is among the largest of nearly 100 accounts belonging to state political candidates with leftover campaign cash, according to a CalMatters analysis of California campaign finance records. Gina. Additional information on this topic is provided in a document on the Colorado General Assemblys website entitled Frequently asked questions and answers involving the conversion or use of unexpended campaign funds. In accordance with our customary recommendations on these matters, we also encourage legislators with questions to seek the advice and counsel of the Colorado Secretary of States Office as the body charged by law with the administration and enforcement of the states campaign finance laws. . Thats what remains of the $2.1 million the account received from Nezs treasurer 2022 committee in late August. He has doled out nearly $100,000 of that money over the last two years, mostly supporting political allies and causes. Prior to that, he was a contributing writer for CalMatters reporting on the state's economy and budget. [6] As with any other form of campaign expenditure, a candidate committee must disclose the use of unexpended campaign contributions in its regular campaign finance disclosure reports required to be filed by law.[7]. Neither Calderon nor Burke replied to emails and calls requesting comment. Some may keep their political money around in case they make another run for office in the future. The Ethics Committee has determined that a Member may, under House Rules, use campaign funds to pay the Member's travel expenses to attend the funeral of a retired Member, or a colleague's immediate family member. You likely have campaign funds remaining after the election and know there are probably some rules addressing the use of such money (after all, as you know from your campaign, there is never any shortage of rules governing the use of campaign money), but you dont know what they are. 0000218931 00000 n After finishing his second eight-year stint as governor in early 2019, Brown moved more than $14.7 million from his 2014 re-election campaign to the newly formed Committee for California. In the final weeks of the California election, industry and labor groups are spending millions to influence legislative races. Retiring lawmakers who keep their campaign committees active continue to face disclosure requirements, and there are limits on how much they can donate to candidates or other PACs. Nevertheless, Lockyer still has more than $1 million in a campaign account for the 2026 lieutenant governor race. The totals do not include committees for candidates who ran in 2022. 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