[Congressional Record Volume 143, Number 41 (Wednesday, April 9, 1997)]
[Extensions of Remarks]
[Pages E603-E604]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CAMPAIGN FINANCE REFORM

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                        Wednesday, April 9, 1997

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, April 9, 1997, into the Congressional Record.

                        Campaign Finance Reform

       There is surprisingly little pressure from constituents on 
     Members of Congress to act on campaign finance reform, even 
     though we have daily revelations of egregious excesses. The 
     growing sense in American politics today is that dollars 
     speak louder than ideas, access is bought and sold, 
     challengers and third parties are often drowned out, and many 
     of the best people are discouraged from running because of 
     the fundraising burden.


                          Problems With System

       Campaign finance reform is a constant game of catch-up, 
     with excesses followed by reforms followed by new ways to get 
     around the reforms. The present campaign finance laws passed 
     two decades ago have been simply overwhelmed by a flood of 
     money--more than $2 billion in the last election--and with 
     every election the problem gets worse. The laws are more 
     loophole than law, and politicians defend their practices by 
     resorting to legal mumbo-jumbo.
       Political campaigning has become distorted. Members spend 
     large amounts of time making phone calls to raise money and 
     attending fundraisers, which means a lot of time with people 
     who already support them and too little time with ordinary 
     voters who have not decided how to vote. So the system drives 
     a wedge between the elected representatives and those they 
     represent. When politicians become preoccupied with raising 
     campaign money, that also crowds out other activities like 
     writing laws and thinking about public policy.
       Those who contribute money are very concerned about a 
     ``shakedown'' atmosphere. They often feel they cannot get 
     their view across unless they contribute generously to 
     politicians they may dislike. The common feature of the great 
     debates in Congress over the last few years--including health 
     care reform, clean water, telecommunications, and regulatory 
     changes--is that they were all awash with money. Members used 
     these debates skillfully to get money from people who were 
     interested in certain legislative outcomes.
       The rising flood of money that flows into campaigns 
     undermines public trust. Nothing is more important in our 
     democracy today than the restoration of public confidence in 
     the integrity of the political system. To many Americans 
     it is money, not ideas and not principles, that reigns 
     supreme in our political system. Many people tell me the 
     political process is run by special interest groups, 
     powerful organizations, and foreign donors, so they see 
     little reason to vote. Cynicism is always the worst enemy 
     of democracy and it has certainly been strengthened by the 
     campaign finance system.
       Getting campaign reform is terribly difficult. The blunt 
     fact is that most Members of Congress and both political 
     parties prefer the system under which they were elected over 
     some untested scheme that might replace it. Moreover, it is 
     very difficult to devise a system that will reduce the role 
     of special interest money in politics and still not trample 
     on constitutional rights to express political views. It is 
     easy to be cynical and assume that nothing will happen on 
     reform, but we really do have a chance to break the cycle of 
     fundraising that demeans our politicians and our political 
     system.


                             current system

       Some progress in campaign finance reform has been made in 
     recent years. After the Watergate scandals, Congress 
     instituted public financing of presidential campaigns, limits 
     on contributions, and more disclosure of where money comes 
     from. These were major and important changes. But it is clear 
     the reforms did not go far enough, and means were devised to 
     get around existing law.

[[Page E604]]

       The current system is plagued by: rapidly rising costs, 
     driven largely by the growing importance and cost of 
     television in campaigns; major reliance on special interest 
     money; less competitive elections because of the imbalance in 
     resources between incumbents and challengers; and a host of 
     loopholes through which individuals and groups seek 
     influence. These include: ``bundling'', which involves the 
     collection of checks for a specific candidate by an 
     intermediate agent; ``soft money'', money that may indirectly 
     influence federal elections but is raised and spent outside 
     the purview of federal laws; and ``independent expenditures'' 
     which allow unlimited spending by groups to communicate 
     with voters for or against a candidate so long as there is 
     no coordination with the candidate. To illustrate the 
     extent of these loopholes, the amount of soft money raised 
     by both parties in recent elections has tripled in four 
     years from $88 million in 1992 to $263 million in 1996.


                                reforms

       I believe that reform has to move forward step by step. 
     That's why it is very important for the congressional 
     inquiries into White House fundraising and congressional 
     campaigns to proceed. I favor hearings with the broadest 
     scope. Many Hoosiers tell me the real scandal is not how the 
     law is broken but what's legal under the present system. 
     Congressional hearings can illuminate the problems and help 
     us enact legislation to solve them.
       A principal aim of a campaign finance bill must be to 
     create the conditions for more equal competition for more 
     offices, and that could include easier access to television 
     time for candidates. We should also close the loopholes in 
     the current law on bundling, soft money, and independent 
     expenditures. We should look at public financing for federal 
     elections, which I personally support, and limit the role of 
     political action committees. Certainly disclosure of spending 
     in politics has to be broadened and speeded up, and penalties 
     for overstepping the line should be made harsher and 
     immediate. The Federal Election Commission must be more 
     aggressive and vigilant in enforcing the election law.


                               conclusion

       Our failure to have effective campaign finance laws in this 
     country represents a major failure in American public policy. 
     We have a campaign finance system today that is gradually 
     eroding the public's trust and confidence. It is a slow-
     motion crisis, but it is a crisis.
       As we try to reform the system, we must not let the perfect 
     be the enemy of good. It is not possible to enact a perfect, 
     sweeping campaign finance reform bill today and perhaps not 
     in the future. But the worst abuses can be dealt with one by 
     one. We simply must keep at it and address the problems and 
     plug the loopholes in the law as they become evident. A long 
     journey begins with a single step.

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