Research: Influence Of Out-Of-District Donors On N.C. Election Campaigns

On April 17, NCPIRG released “Looking for Funds in All the Wrong Places.” an examination of out-of-district contributions to the campaigns of some of the most powerful legislators in the state. Out-of-district financial contributions from special interests and wealthy individuals reduce the influence of citizens who actually live in the candidate’s district.

In the report, NCPIRG studied campaign contributions to chairs of the House and Senate Appropriations Committees and the ranking minority members, who are some of the most powerful members of the Legislature. The report revealed that, on average, a whopping 73 percent of money came from outside a candidate’s district.

Money and Elections
The role of out-of-district campaign contributions is extremely important because money predicts the winner of most races.

“When considering a run for office, the first questions to ask are about money. Am I rich? Do I know rich people who will give me money? If not, my chances of winning are slim and maybe I’d better pursue another line of work,” said Rob Thompson, NCPIRG advocate.

In North Carolina, the money that influences campaigns comes not only from wealthy interests in a candidate’s district, but also from sources elsewhere in the state and even from out of state.

• On average, one percent of funds from PAC contributions came from within the candidate’s district.

• Representative Joe Kiser raised zero dollars from his constituents, and Representative Beverly Earle raised only 7 percent of her money from in-district donors.

“It’s fundamentally wrong that out-of-district interests determine who runs and who wins the elections that determine our state’s leaders,” said NCPIRG’s Rob Thompson. “In-district voters, not outside special interests, should be determining who represents the state.”

PACs Give Big Bucks
Contributions from individuals were more likely to come from within the district than were contributions from political action committees (PACs). However, candidates raised more money from committees outside their districts than from individuals in their districts.

• On average, 62 percent of funds from individual contributions came from citizens within the candidate’s district. In contrast, 1 percent of funds from PAC contributions came from within the district.

• Together, the candidates raised $750,000 from individuals and $1.1 million from PACs.

The result is that a small number of special interests and wealthy donors heavily influence the outcome of North Carolina’s elections, even if they have little connection to a the constituents of a candidate’s district.

Clean Elections
Establishing a public financing system for North Carolina’s legislative elections would prevent special-interest money from overwhelming the interests of ordinary citizens. Under a public financing system, candidates who collect a requisite number of qualifying small contributions would be eligible for public funding for their campaigns, reducing the role of out-of-district contributions in the state’s elections.

“I hope this report serves as a wake up call for North Carolina lawmakers to implement a public financing system,” said Thompson.