Research

How Lawmakers Leaving Office Can Use Leftover Campaign Funds

Quick Read
Illinois voters are often in the dark about how unused campaign funds are spent, but should know that these funds can be utilized long after a candidate has left public office.
  • There is at least $2.4 million in leftover campaign funds sitting in the accounts of legislators leaving the General Assembly this session
  • Illinois politicians can leave their campaign accounts open indefinitely, which allows them to continue using these funds even without seeking a specific office
  • Other states, such as California, require candidates to close their political committees 60 days after leaving office of losing an election
Shining a light on this often overlooked issue can help voters understand where their money goes, and how politicians can continue to use that money even after leaving the public eye.
Since early summer, the Illinois General Assembly has been experiencing what some news outlets have called “an exodus of lawmakers.” As of October 11, 31 legislators will not be returning to the seats they held at the beginning of the year. While six of those legislators are running for another office, 25 of them have either resigned mid-term or are not running in 2018. As these officials leave public office, many of them do so with significant campaign money left sitting in the bank.
Where Do Campaign Contributions Go?
Donating to a candidate’s campaign is a common way to get more involved in local politics. However, voters may be surprised to realize their money is not always used to help elect the candidate they originally contributed to.Under current Illinois campaign finance regulations, a political candidate’s campaign can donate, or “transfer out,” money to a different political candidate’s committee. Consequently, a political candidate is free to give their money to any other candidate, even one a contributor may not have supported. However, candidates are limited to an amount of $55,400 in transfers to another individual candidate per election cycle. This lies in stark contrast to the $5,600 that individual people are allowed to give to each candidate. 

When an elected official chooses to close his or her campaign committee, candidates may have leftover contributions in their campaign account. In Illinois, while a candidate can return remaining funds to their original contributors, they can also donate the funds to a charitable organization or another political organization. There is statutory language that states the charitable organization or political organization the candidate donates to must be consistent with the positions of the candidate, but this rule is not actively enforced.

One reason this limitation rarely comes into question is that elected officials typically either keep their committees open indefinitely, in case they wish to run in the future, or they transfer the remaining funds in their accounts before closing the committee. In the latter case, legislators frequently distribute remaining campaign funds.

Rep. Elaine Nekritz (left) and Leader Christine Radogno (right) are two high-profile legislators leaving the General Assembly

Transfer Trends for Retiring Legislators
The 25 legislators who are not returning to the General Assembly have a combined $2.4 million in campaign funds between them. Of those 25, committees for the five legislators with the most remaining money make up half that number, with approximately $1.3 million.

Legislators who have resigned or are retiring after 2018 have transferred $210,000 to other committees since June 1, including the contributions mentioned below. The vast majority of the funds transferred to other committees, $146,000, went to elected officials running for office in 2018. The other $64,000 was transferred to political party committees and PACs.

When spending down their accounts, former politicians and elected officials often transfer money to candidates who share their vision, supporting party organizations, or other political groups. While some people choose to keep their accounts open indefinitely, others transfer money out of their account in preparation of closing it down.

Already, there have been some large transfers by outgoing legislators.The largest transfer was from former State Rep. Elaine Nekritz to gubernatorial candidate and State Sen. Daniel Biss for $80,000. Nekritz, who recently left office, was able to transfer more than the $55,400 limit because contribution limits for the gubernatorial race have been lifted.

Other large transfers were made by former Senate Republican Leader Christine Radogno, who resigned in July, and State Rep. Emily McAsey, who resigned in June. McAsey made contributions totaling $55,000 to several General Assembly members running in 2018. Radogno transferred $37,000 to the Senate Republican Campaign Committee shortly after leaving the General Assembly.

How Other States Handle Transfers and Retirements
Illinois and most other states do not allow campaign contributions to be used for personal expenses, meaning donations cannot be spent on club memberships, college tuition, personal vehicles, or personal health care. However, restrictions specifically involving transfers are not as uniform. While Illinois politicians can transfer up to $55,400 to other candidate committees, restrictions on transferring funds between candidates varies in some states. 

For example, in Colorado, candidate committees are prohibited from transferring campaign funds to other candidate committees. In Arizona, laws are slightly less restrictive, generally allowing elected officials to transfer funds to other candidate committees if they are closing their committee and not running for re-election. However, Arizona politicians can only transfer within the personal contribution limit of $5,100.

On the other end of the spectrum, some states do not limit transfers between candidates at all. Candidates in Oregon are allowed to transfer unlimited funds to other candidates in the state, as long as the transfer is disclosed.

Between these extremes, many states allow some transfers of campaign funds while a candidate is still running or in office, but with limits. California, New York, and Illinois are all in this category. While Illinois law allows larger transfers, California and New York both restrict political candidates to contribution limits for individuals when making transfers. These limits range from $4,400 to $44,000 depending on the office and type of election.

The ability of candidates to keep campaign committees open indefinitely represents a unique feature of Illinois campaign finance law when compared to other large states, like California. In Illinois, former elected officials can hold onto tens or hundreds of thousands of dollars in campaign contributions they have collected over the years and continue to exert influence over politics for years after they leave public office. In contrast, California politicians are required to close their committees 60 days after losing an election or leaving office.

California’s requirement to close old campaign committees ensures political contributions are always attributable to a specific race. Furthermore, when candidates form a new committee, this notifies the public of the funds they have remaining and where those funds could be going. Making these disclosures is essential for maintaining transparency and accountability in the campaign finance process, which provides important information for voters, journalists, and the general public.

 

Issues like these lead us to explore new policy changes to improve transparency and accountability in Illinois. Do you think that politicians should be able to keep their campaign accounts open, even when they are not actively seeking office? Please email us at outreach@ilcampaign.org with your comments and questions on this issue.

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