Archive for July, 2013

Is Reform Coming to Illinois?

Posted on: No Comments

I read the news today and oh, boy…another Illinois politician is under investigation.

The Chicago Sun Times reports an FBI investigation underway on Chicago Alderman Joe Moore (49th Ward) for firing two employees, who had allegedly complained about doing political work while on city time.

It’s no secret that Illinois has had its fair share of ethical discrepancies toward the conduct of business in the political arena.

However, some believe that the culmination of political scandal over the recent years may have finally reached its tipping point, which begs the question: Will Moore’s case be the final straw that breaks the camel’s back?

Many wonder if the feds will come down hard on Moore. But will more instances like this finally make Illinois voters realize the need for a near complete overhaul of our states ethics and good government laws?

I don’t know but I do know is that in 2014, voters may finally have the chance to vote on one of the largest and most sweeping reforms in over 30 years. Yes for Independent Maps is currently gathering signatures to place a constitutional amendment on the ballot to reform our state legislature’s redistricting process by creating a non-partisan redistricting commission similar to California, Arizona, Missouri, Florida, and a handful of other states.

An amazing first step towards saving Illinois from a handful of corrupt elected officials would be to create an independent mapping process.  Why?

gerry-mander-gif

First, simply changing the way that state legislative districts are drawn will create an unprecedented level of transparency. It will also create more competitive districts. If it is successful, we will see like-minded communities protected rather than split apart for political purposes.

Secondly, if this amendment passes it will send a deafening boom to elected officials all over the state of Illinois and hopefully open the door to more good government policies.

The deafening boom of this amendment becoming law will remind elected officials how important integrity and ethics are to the people of Illinois.

CFO Consulting is proud and excited to be working with Yes for Independent Maps and to be helping them raise the money they will need to pass this amendment. We believe that reforms like this bring great transparency to the political process and help to create a better government that is capable of serving its citizens.

To learn more about the work we are doing with Yes for Independent Maps visit them at www.independentmaps.org.

By Nick Daggers, Vice President, Fundraising

Is it a Problem that the Vast Majority of our Electoral System is Financed by Men?

Posted on: No Comments

mad_men_cover_1

A significant amount of journalistic attention is devoted to examining how campaign contributions influence who we elect to the U.S. Congress.  Such concern over the potential for “special interests” to exert inordinate amounts of power on our elected officials is clear; it is  antithetical to the notion of the “common interest” that underlies the foundation of our democracy (previously discussed here).   However, while it is often the case that special interests are presumed to be narrow interests  (i.e. “big oil,” unions, corporations, etc.), there is relatively less attention paid to how our campaign finance system affects groups that are too broad or cross-cutting to be called “special interest,” but may nevertheless be significantly impacted by the current campaign finance system. Specifically, the question I address here is whether it is possible that the campaign finance system is contributing to the gender disparity in Congress.  Is it a problem that the vast majority of our electoral system is financed by men?

Why the Gap?  How does the campaign finance system contribute to the problem?

Those that argue overt discrimination against women is a thing of the past note that women perform just as well as men in general elections. For example, no one was shocked this past April when Robin Kelly was elected in a special election to fill the seat previously held by Jesse Jackson Jr. in Illinois.  However it is also true that women generally have to raise more money to perform as well as men at the polls, while at the same time women perceive fundraising to be more difficult than men.  But why?

I suggest two reasons.  The first is the undisputed gender gap in resources: men make up a larger percentage of the work force and earn a higher income on average.  They therefore have more resources at their disposal to contribute to campaigns than women do.  The second, less obvious reason has to do with a particular FEC regulation governing the rules of “Separate Segregated Funds”  (SSFs), which comprise the vast majority of PACs that contribute to candidates and include corporations, membership organizations, unions, etc.  The regulation specifies that the only members of a company or organization that can be limitlessly asked to donate to the PAC are its executives, stockholders, and notably – their spouses.

While the 2012 Fortune 500 “boasted” a record number female CEOs, the grand total came to 18, just 3.6%.  The reality is that the majority of executives and stockholders are male, that in essence, are able to make contributions on their own accord as well as on behalf of their spouses. Taken to its furthest logical extent, the result is that a greater number of men enjoy de facto doubled contribution limits.

Gender of Contributor and Preferences Toward Male/Female Candidates

Of course for any of this to matter to gender fundraising disparity, it must be the case that women prefer female candidates and men prefer male candidates. To see whether there was any evidence for this, I took a sample that included 2975 individuals who made contributions to a subset of eight pairs of freshman candidates (one male and one female in each pair) within the critical first 100 days of the start of their respective campaigns.[1]

The table below presents the results of a quick analysis. I classified contributors that do not have employers and that list occupations such as “homemaker,” “self-employed,” “mother,” and “volunteer” as “working inside the home.”  Unsurprisingly, males constitute a higher proportion of overall contributors. When I exclude contributors (both male and female) that work inside the home, the average contribution for females declines substantially while the average contribution for males increases just slightly.  It also results in a decrease in the percentage of female contributors to 26%.  It is interesting to note that this percentage roughly corresponds to the percentage of women in Congress. (While this does imply causal relationship, it is nevertheless a fun number…not unlike Romney getting 47% of the popular vote in 2012).   Lastly, it is evident that females seem to prefer female candidates and males seem to prefer male candidates.

Does the Discrepancy Matter?

Arguably, the gender imbalance in Congress is only relevant insofar as it has an independent effect on legislative output that cannot be explained by other factors, such as partisanship.  In other words, if gender has no impact on an elected official’s behavior, then an imbalance, however disproportionate, may be functionally irrelevant.  Yet studies show female legislators devote more time and energy to what are informally referred to as “women’s issues,” including healthcare, children and families, women’s rights, gun control, and others.  Stylistically, women demonstrate more cooperative legislative strategies and collaborative approaches, while men tend to prefer more competitive, hierarchical tactics.  Thus it is reasonable to posit that a change in the proportion of women in Congress would have an impact on the nature and type of legislative output.

Particularly in a political time in which fundraising continues to grow in importance, it is important to be aware of how seemingly non-discriminatory formal institutions, such as the campaign finance system, may nevertheless result in discriminatory outcomes.

Contribution Statistics by Gender

Recipient Candidate

Male

Female

Total

Proportion

Average

Contributor

Male

1165 (58%)

870 (42%)

2035

68%

$899

Female

448(47%)

492 (53%)

490

32%

$920

Excluding Contributors Working Inside  Home

Recipient Candidate

Male

Female

Total

Proportion

Average

Contributor

Male

1150 (57%)

867 (42%)

2017

74%

$911

Female

336 (46%)

382 (54%)

718

26%

$799

Gender and Work Status of Contributor and Gender and Party of Recipient Candidate

Total

Mean

Work Inside

Average

Work Outside

Average

Males

To Male Democrats

801

$869

15

$582

786

$875

To Female Democrats

598

$857

3

$1525

595

$852

To Male Republicans

364

$1091

0

$0

364

$1094

To Female  Republicans

272

$901

0

$0

272

$901

Females

To Male Democrats

316

$1028

70

$1493

246

$874

To Female Democrats

379

$791

82

$972

297

$727

To Male Republicans

132

$1219

42

$1591

90

$942

To Female  Republicans

113

$795

28

$1019

85

$692


[1] The eight pairs, or sixteen total candidates, consist of individuals competing for Congressional office for the first time.  All chosen candidates won their elections in 2008 and subsequently were sworn-in during the 111th Congress.  The pairs were chosen based on the similarity of their ideology, district qualities, and partisan orientation.

 

By Erinn Larkin, Compliance Director, PACs and Parties