How does public financing work?

Posted: Thursday, June 19, 2008 10:45 AM by Domenico Montanaro

From NBC's Domenico Montanaro
With the news of Obama opting out of public funding, here's a primer on how it all would work:

How much money would a candidate get this year if they opt in to public financing?
$84.1 million (In 2004, candidates were eligible to receive $74.62 million for the general election. The FEC adjusts for cost-of-living.)

How does public financing actually work?
After each party's convention, the presidential and vice presidential nominees would submit a letter to the Federal Election Commission that they have agreed to take public funding.

That request would then be reviewed by the Office of the General Counsel at the FEC.

It would then be voted on by the commission, certified and submitted to the Department of Treasury. The Treasury then would issue the check to the candidate or candidates.

The Democratic convention takes place in Denver, Colo., from Aug. 25 to 28; The Republican convention will be in Minneapolis, Minn., from Sept. 1 to 4.

Where does the money come from?
That $3 check off on your tax return.

SOURCE: Federal Election Commission

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Comments

He would fare better just using his supporters funds!!!

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Obama For President!! (Sent Thursday, June 19, 2008 10:58 AM)

What a sad waste of $84.1 million taxpayer dollars the public funding of "Beggar Boy" McCain's pathetic losing campaign will be. What a hypocrite the beggar is saying he's for fiscal responsibility. He should reject and denounce this most worthless of all earmarks to prove he's sincere about not wasting taxpayer money.

On the other hand how wonderful it is that Barack Obama is going the free market route, not wasting taxpayer money. Yeah the repugnant ones talk a good game about free market stuff but their ancient beggar boy can't do the free market route to finance his losing campaign.

I'm really sick and tired of the MSM, even MSNBC tv, saying that Obama pledged to opt in for public financing. He never pledged or promised any such thing, he just said he'd pursue looking into it with the repugnant one's candidate. Well he's looked and correctly decided to not waste taxpayer money and just do the free market thing to get elected.

Go Obama 08/12!

Eric, Salinas, CA (Sent Thursday, June 19, 2008 11:04 AM)

How's public money work? It doesn't for Barack "I'll take public financing" Obama. Obama is so tied into environmental groups lobby money, he doesn't need public funds. Don't think so? Okay, so whats Obamas energy plan? That's correct, he doesn't have one. Not one more drop of oil. Not one more nuclear plant. Not one more coal mine. So who's agenda does that line up with? You are correct again, the tree-huggers, who are the #1 supporters of Barack Hussein Obama. 'Grassroots' support indeed.

Gandani Boadapudi, Detroit, MI (Sent Thursday, June 19, 2008 11:07 AM)

Public financing is when you have over 2 million individual donors and growing.

Just pass the plate at your town halls Mr. McCain, just pass the plate at your town halls.

Mister Anderson (The Matrix) (Sent Thursday, June 19, 2008 11:10 AM)

We have 84.1 million dollars sitting around, waiting for a Presidential candidate to take it? (Which they never do, unless, like John Edwards, they are falling behind and take the money to extend their campaign a few more months.)Is this a (sick) country, or what?

Amy B Portland, ME (Sent Thursday, June 19, 2008 11:10 AM)

If Obama opts out of public funding, where does that $84 million go? Who benefits from it?

M. Leake, Jacksonville, NC (Sent Thursday, June 19, 2008 11:11 AM)

As an Obama supporter, the Senator has my permission to opt out and I do believe I'll make another small donation today!

Senator Obama for True Leadership (Sent Thursday, June 19, 2008 11:14 AM)

With all the flip flop flap, can anyone believe what McCain says anymore?

Good move Obama !!

End Game (Sent Thursday, June 19, 2008 11:16 AM)

Obama is now at the whim of the lobbies that support him. Nothing new there. But the Obama supporters around here think Obama gets most of the money from them. What a crock. The big money comes from people like Georgie Boy Soros.

VA Whitley, San Diego CA (Sent Thursday, June 19, 2008 11:19 AM)

Hasn't McCain already violated McCain-Feingold a couple of times, first by borrowing against future public financing and then by using his wife's corporate jet for the campaign without reimbursing that expense? I don't understand how he can be critical if he isn't willing to follow the rules set out in his own legislation.

With that said, it would have been refreshing if both sides had been able to put aside their differences and come to agreement on public financing. But unilateral disarmament on the money front only helps the disarmed candidate's honor... it won't help him win the election.

http://ilfamilypolitics.blogspot.com

Midwest Mom, Illiana (Sent Thursday, June 19, 2008 11:22 AM)

you should read before you post on the net. the Oboma art about not tacking pub funds is at best poor.

big man (Sent Thursday, June 19, 2008 11:22 AM)

It seems to me if the election were fair and dealt with the issues the way they should, then public financing would make sense. But the smears, war machine and race hate from the Republicans and supporters are so bad this year that the Obama campaign has to spend a lot of money defending itself with more ads, more defense, etc.

But we have free speech in this country, and that means for everyone. I also think it's better to have the hate out front and in your face than have an undercurrent which can be hard to fight. At least you know who they are.

I also have faith in the American people. We can choose to be loving, fair and democratic if we want to be. It's our choice. YES WE CAN!

Obama,08

Andrea, New York City (Sent Thursday, June 19, 2008 11:23 AM)

Obama has more than 1.5 million donors. As far as I'm concerned, his campaign IS publicly financed.

another mama for obama (Sent Thursday, June 19, 2008 11:26 AM)

Dookie: "This is comical to see the Obama people saying it doesn't matter. Any time McCain has even slightly contradicted a prior position, you all have jumped down his throat".

The Obama supporters exhibit the most amount of denial and the highest level of being delusional that I've ever witnessed for any candidate. Every candidate has their flaws, but not to the Obama deciplpes. Barack himself could pass gas, and the Obama crew would smell roses. They are going to be so disappointed if Obama manges to get into office, and he implements less then 10% of the agenda they think he'll implement. America is not where Obama is politically. We are not an extreme liberal country. We are a moderate and slightly right of center country politically. Obama's klan will then just abandon Barack, similar to what they did with the Clinton's, and move on to the next pie in the sky candidate that pops up.

Victor Barham, Hershey PA (Sent Thursday, June 19, 2008 11:28 AM)

For all you Obama haters out there who keep saying that Sen. Obama is just another politician and will say and do anything to get elected. Well, you haven't been listening. The man has already done more in the two weeks that he has been the nominee than John McCain has in the three months he has been lollygagging aimlessly. McCain doesn't even have a VP yet. When is he going to do it---after the Repub Convention?

Sen. Obama has formulated a VP committee, changed the DNC headquarters to Chicago, effectively streamlining the political process, advised the DNC not to accept lobbyist and PAC money, and now has made history, yet again, by opting out of public financing. He is the most original statesman I have ever seen and is changing the face of politics in this country. I can't wait to see what else he will reveal in his innovative manner of governing. No one can rightfully say it is politics as usual.

GO MR. PRESIDENT!

J. Ellis, Virginia (Sent Thursday, June 19, 2008 11:30 AM)

This cannot be stressed enough: Sen Obama's majority of donations come from citizens. His campaign is already publically financed. His 1.5+ million donors have already spoken--with their wallets--on campaign finance.

I'm happy to continue to donate to Sen Obama's campaign. I have never elected to the $3 tax return option, since I cannot control to whom my money goes. I prefer to work directly with my chosen candidate.

It would've been nice if both campaigns could have come to an agreement, but given this 24/7 media age (and gotcha/You Tube politics), it wasn't going to happen.

The $3 tax return campaign finance system is broken, since there are SO many loopholes.

Sen Obama made a smart move.

Albert, Colorado Springs, CO (Sent Thursday, June 19, 2008 11:31 AM)

I'll never vote for Obama because I can't support a candidate who is such a good money manager and fund raiser. He couldn't possibly do anything for the economy or the country.

Bobbi, Eau Claire, WI (Sent Thursday, June 19, 2008 11:31 AM)

I cain't vote for Obama because I prefer the president to be a flip flopper on every issue this country lives and dies by.

Jerry/Corpus Christi (Sent Thursday, June 19, 2008 11:32 AM)

who wants a guy who has a huge grassroots fundraising organization behind him? what good would that do the country if so many supporters were willing to pitch in every time some crisis came up?

kenn (Sent Thursday, June 19, 2008 11:33 AM)

The republican nominee seeking "socialized" campaign funding? Is this "political welfare"?

What happened to the almighty free market - let the market determine how much the candidates can raise.

Republicans - get out there and sell your brand.

McEdsel (Sent Thursday, June 19, 2008 11:33 AM)

If Obama opts out of public funding, where does that $84 million go? Who benefits from it?

M. Leake, Jacksonville, NC
=============

Charlie Rangle gets it so he can build a cultural center with his name on it.

Ross Perot (Sent Thursday, June 19, 2008 11:34 AM)

The republicans have always been opposed to the public financing laws so it is fitting their candidate has committed to being a welfare king and accepting public financing...sheesh

Taking the money out of the hands of poor mothers to support wealthy politicians...double sheesh

Rick, NC (Sent Thursday, June 19, 2008 11:34 AM)

Obama is a fraud and a liar. Justify away.

No characrter.
No backbone.
No integrity.
No vote from me.

Tony, cincinnati, Ohio (Sent Thursday, June 19, 2008 11:36 AM)

"How's public money work? It doesn't for Barack "I'll take public financing" Obama. Obama is so tied into environmental groups lobby money, he doesn't need public funds. Don't think so? Okay, so whats Obamas energy plan? That's correct, he doesn't have one. Not one more drop of oil. Not one more nuclear plant. Not one more coal mine. So who's agenda does that line up with? You are correct again, the tree-huggers, who are the #1 supporters of Barack Hussein Obama. 'Grassroots' support indeed.
Gandani Boadapudi, Detroit, MI"

-------

First off, nice try throwing the middle name in. It's old, let it go. With a name like Gandanu Boadapudi, I would think you'd be more tolerant of uncommon names.

Second, a REAL energy plan, consists of finding and funding NEW energy sources, besides something like Oil or Nuclear power. An energy plan like McMummy's which would consist of drilling on MY Florida beaches is a band-aid, and it would not help one bit, especially since the main problem lies on the lack of oil refineries, and not our sources of oil.

Do some research curry boy, and think before you type.

Barack My World! (Sent Thursday, June 19, 2008 11:38 AM)

Good for Senator Obama. I just sent my pittance to him for the month. There are millions doing the same.

We don't need this crooked government's money nor the lobbyist money. We the "little" People will support Obama with our "little" donations. Thank you very much!!!

J Hallmark, Savannah, TN (Sent Thursday, June 19, 2008 11:39 AM)

I'm happy that Obama opted out of public finances. Part of the reason I didn't give the $3 on my taxes was I couldn't control where the money went. With Obama opting out, it means his campaign is financed ONLY by those who have personally donated to him. The McCain supporters who contributed their $3 should be happy about this move, as now they will not be indirectly financing the opposition campaign.

Chris, Manhattan, KS (Sent Thursday, June 19, 2008 11:40 AM)

"The man has already done more in the two weeks that he has been the nominee than John McCain has in the three months "

/////

Seeing you know about what Barack Obama has done, could you list all of his accomplishments for his entire political career? It shouldn't take up too much of your time or much space, because by my count, he has none.

Rene Smit, Collingsville, Ohio (Sent Thursday, June 19, 2008 11:40 AM)

Little idiots send their hard earned money in and the fat cats of both parties get what they want.You think someone who gets a campaign 100,000 dosent get better service than someone who gave 10 dollars then you dont know america and you dont know capitalism.

kenn (Sent Thursday, June 19, 2008 11:41 AM)

Obama decided to use grassroots donations instead of taxpayer dollars. Taxpayer monies that should be used for other things. He has the means to save the tax payer $84 millions and he should be punished for it? That's dumb.

Obama did the right thing. Obama is playing to win the presidency. He's not joking around. And if he can put McCain out because he isn't adequately financed, then Obama should. That's being shrewd. And that's exactly what we want in a president.

McCain needs the money because less than 10 percent of wealthy Repub donors have given to him.

Bobby H., Miami, FL (Sent Thursday, June 19, 2008 11:42 AM)

J. Ellis Virgina says: Sen. Obama has formulated a VP committee, changed the DNC headquarters to Chicago, effectively streamlining the political process, advised the DNC not to accept lobbyist and PAC money, and now has made history, yet again, by opting out of public financing.

But J.Ellis, what has Obama ever done for the people of this county? All these things you list are what Obama is doing for himself. Can you name one thing he's done for the people?

Crash Dog (Sent Thursday, June 19, 2008 11:43 AM)

How about the folks back home in the projects and slums they could use some of those millons OBAMMA is raising no wait till you can send them my money that works out better for OBAMMA

kenn (Sent Thursday, June 19, 2008 11:43 AM)

You McCainites:

Obama IS Publicly funded!! 2 million plus individual donors, averaging almost $100 each, No PAC Money, Lobbyist firm money!

Oh and for you idiots that will say "well employees of Oil companies have donated to his campaign"

Listen, come closer . . . closer . . .:

THEY ARE CITIZENS TOO!! wtf? Does where they work to support their children and families invalidate their rights as citizens? Does that mean that he now OWES the oil companies favors? No! He owes the PEOPLE of this country and they come from everywhere . . . including OIL COMPANIES!

My God: You people are unbelievably dense about this!

And again read the questionnaire. It has all the answers you need!

Matthew (Sent Thursday, June 19, 2008 11:44 AM)

I'm sure if neither man uses the money, the Liberals will use it for some stupid earmark, like Charlie Rangel did.....

jerry/corpus christi texas (Sent Thursday, June 19, 2008 11:45 AM)

When your done solving the worlds problems campainging maybe go back and help the folks you left behind

kennnnn (Sent Thursday, June 19, 2008 11:46 AM)

Obama once again amazing.....Suggestion for low income people. Take at $25.00 of your bush stimulus check and send to Obama campaign...pay your bills with the rest. That is what we are doing....be sure to thank Bush for money to send Obama :)

Mindi Detmer Auburn Hills Mich (Sent Thursday, June 19, 2008 11:47 AM)

Bobbi, Eau Claire, WI and folks like you have got another lame excuse right?

Did u guys know that the gas prices are due to the Enron loop hole supported by John McCain and Phil Graham?

New Wave (Sent Thursday, June 19, 2008 11:47 AM)

face facts people we want obama to win if he takes 84 million instead of taking 150 million we would not think he stands by princalbes we would think he is stupid i mean come on 150 or 84 million duh it is a no brainer
the real story here is that mcain thinks he should take the 84 million what a rube this highlights how bad mcnutjob is with numbers

mike ca (Sent Thursday, June 19, 2008 11:47 AM)

Obama has 2 millions donors? There are over 200 million adults in the US, so you're saying Obama's donors total about 1% of the people. Call me unimpressed.

Yancy White, Reedsburg, PA (Sent Thursday, June 19, 2008 11:47 AM)

All the sour grapes from the GOP side! Look, our candidate is a phenomenal leader. We want to finance his campaign. We want him to change his financing strategy, because we can him provide more funds than can the public financing process. We know that McCain will benefit from rich donors underwriting 527 ads and we want to counter that with our massive and focused campaign to put Obama in the White House to save our precious country.

Jim, Santa Cruz (Sent Thursday, June 19, 2008 11:51 AM)

I'll never vote for Obama because I can't support a candidate who is such a good money manager and fund raiser. He couldn't possibly do anything for the economy or the country.
Bobbi, Eau Claire, WI

who wants a guy who has a huge grassroots fundraising organization behind him? what good would that do the country if so many supporters were willing to pitch in every time some crisis came up?
kenn

****

Are we in bizarro land or did someone post as these two.

DV, CA (Sent Thursday, June 19, 2008 11:52 AM)

Why don't they use that 84.1 million in flood ravaged Iowa? I'm sure the victims would appreciate that.Or would that make too much since because it is "earmarked" for the election..

The McCain people are just chomping at the bit today, aren't they? McCain has had a free ride in the media while Obama gets criticized for EVERYTHING (or pounced on as it is the verb of the day)..Obama would get backlashed if he wore tighty whities instead of briefs, the way things go. He can't do a thing right in the eyes of the McCain supporters.

Kim W Virginia Beach, VA (Sent Thursday, June 19, 2008 11:53 AM)

Hey Tony in Cincinnati,
McCain Character = Leaving first wife after her unwavering support.
McCain Backbone = Falling in lockstep with Bush/Cheney
McCain integrity = All of his votes and maneuvering to oppose closing the "Enron loophole"

All that equals your vote? Congratulations, and good luck in the soup-line.

By the way, exactly how is McCan't a hero? What heroic thing did he do?

Ven Kahn, San Diego, CA. (Sent Thursday, June 19, 2008 11:56 AM)

What percentage of contributors to McCain are rich like Cindy McCain or even less than her but recieve the Tax Cuts of the wealthy worht over $5 million versus the same percentage that Obama receives from same group?

John - Missouri (Sent Thursday, June 19, 2008 11:56 AM)

Obama is a fraud and a liar. Justify away.

No characrter.
No backbone.
No integrity.
No vote from me.

Tony, cincinnati, Ohio (Sent Thursday, June 19, 2008 11:36 AM)
*****************************************************
Tony is uninformed and has nothing to say.

No education in civics
No intelligence
No concrete examples to back his opinions
No body cares who you vote for

Mark,Seattle (Sent Thursday, June 19, 2008 11:56 AM)

All the sour grapes from the GOP side! - Jim Santa Cruz

Jim, you miss the point. Obama lied. He said he'd take public financing, and now he backed out. That's all that is being pointed out.

And you precious country will be saved even when Obama doesn't get in office. John McCain is good man that loves this country. He'll do just fine.

Daniel Fronn, Cederberg, Ky (Sent Thursday, June 19, 2008 11:57 AM)

Actually, its more like 900K, a very small percent of which has paid the max of $2300. This as compared to McCains 150k-175k small donors. Most of McCains money comes from PACs and Corporations. So, Yancy, you should be impressed.

DV, CA (Sent Thursday, June 19, 2008 12:01 PM)

Barack My World! "First off, nice try throwing his middle name in."

You embarrassed by Barack's middle name Barack My World? Does it make you uncomfortable? Does it make you want to not have women wearing scarfs in any picture with your hero? What exactly is the problem Barck My World?

Liberals - the biggest racists on Gods green earth.

Lyle C. Wagonwheeler (Sent Thursday, June 19, 2008 12:03 PM)

I know I've missed the timeline to speak on this; but here goes. The idea of public Finance is theoretically good. As with anything else in the public domain, it is the implementation that is so grossly flawed.

I think the $3 check box for Presidential elections should be abolished and a more important use of the check box would be to standardize federal elections in all 50-states. This idea that one states' lack of preparedness or attention to detail can derail the 'will of the people' for days, weeks or months is an ongoing concern. Public Financing is occurring, by virtue of the fact that individual's make contributions. Maybe a better litmus would be to segregate individual contributions to presidential campaigns versus corporate or lobbyist contributions. I don't have the answers; but it is an understatement to say the existing system is broken. A "Clean House" approach should happen on a lot of these public policy topics. A harsh review needs to ask the fundamental question, "Who does this policy serve?" If time and again the answer is 'the candidate' or 'congress' we should revamp it.

Clara Kansas City, MO (Sent Thursday, June 19, 2008 12:04 PM)

It's all public financing when you get down to it.

And the rule is to take the most you can get. Obama knows that and always knew it. It's all part of his doctrine of pre-emption. Set up a scenario that has an escape clause and just go with whatever works out best. And be sure to smear your opponents in a subtle way with the set-up. Then depend on you syncophant disciples to help you with the rationalization later.

This is change? This is hope? Sounds like well-oiled Chicago politics to me. Maybe we should drill there.

Eric, Salinas: Why do the Democrats need 527's when they have you? You're a perfect example of Obama's hypocrisy when he says he's interested in working out something that would work out for both sides. Nothing but self-serving bull**** and interest only in your own side.

You are a mean-spirited vicious person and not worthy of the Obama "message".

Richard, Washington State (Sent Thursday, June 19, 2008 12:05 PM)

VA Whitley, San Diego CA (Sent Thursday, June 19, 2008 11:19 AM), what's the problem? I'm sure McBush can get more money from Claytie Williams can't he. All he has to do is disrespect some more women and the check will be in the mail.

Slap a Ho and make some money (Sent Thursday, June 19, 2008 12:05 PM)

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