Public Financing
State treasurer would be added to the list of statewide offices in which candidates can qualify for public financing under legislation recommended for approval by a House committee on Wednesday. The House Elections Law and Campaign Finance Reform approved the bill in a party line vote, with Republicans opposing the measure. State Treasurer Janet Cowell briefly addressed the committee, emphasizing the special nature of the treasurers office as manager of the state pension fund. A longtime advocate of public financing for the office, Cowell said it is particularly susceptibility to accusations of pay-to-play because of the contracts awarded to investment fund managers. She said campaigning had little to do with traveling the state to meet voters directly. Mostly, I just sat in a room and dialed for dollars for a year and a half of my life, Cowell said.
But Republican committee members criticized using taxpayer money to pay for ads that those taxpayers might disagree with. The legislation calls for the qualifying treasurer candidates to receive money from a voluntary check-off on state tax forms, but General Fund money could also be tapped if the check-off doesnt produce enough money. House Minority Leader Paul Skip Stam, R-Wake, said there wasnt even a whiff of scandal around Cowell and challenged fellow committee members to cite an instance where a legislators vote was specifically due to a contribution. Rep. Alice Underhill, D-Craven, responded that the rising amounts of money needed to run for office create a barrier for many people. She said she spent more in her first race for the legislature than her father, longtime Agriculture Commissioner Jim Graham, spent in total running nine times for statewide office. She added that the time spent raising money prevents her from being a more effective legislator.
The debate over the bill came the same day that the Securities Exchange Commission announced new rules designed to discourage pension fund managers from relying on donations from the people whom they hire to invest the money. The rules would prohibit investment fund managers who contributed to treasurers or others who oversee public pension funds from receiving business from those pensions fund for two years. Besides allowing public financing of the states treasurers race, the bill would allow one more city to utilize public financing for local elections. It would also extend a program that allows a public financing in Chapel Hill, currently the only municipality where candidates for town council can tap public money to run.
(THE INSIDER, 7/01/10).
