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Campaign spending reform
fills long-standing need

THE ISSUE State legislators have reached a compromise in barring political campaign contributions by city and state contractors.

AFTER stumbling last year in their effort to reform campaign spending rules, state legislators have agreed on a measure that would, at long last, prohibit companies that do business with the state or counties from making campaign contributions. The Legislature balked at the state paying for the entire campaigns of politicians who limit expenditures, but an experiment of that system merits further consideration in future sessions.

The Legislature approved a ban on contributions by state or county contractors three years ago but it was vetoed by then-Gov. Ben Cayetano because it was limited to campaigns of candidates for governor, lieutenant governor and mayor. The rationale of legislators was that they and county council members don't award contracts.

Governor Lingle vetoed last year's bill because it was badly written, including unintended meanings and confusing language. An improved relationship between the governor and Democratic legislators in the current session should have prevented that from occurring again.

This session's measure, approved by a joint House- Senate conference, includes campaigns of legislators and council members in the ban. City and state contractors had donated $50,000 to a state senator who successfully weakened to death a reform bill in the 2003 session, proving Cayetano's point.

Robert Watada, who will retire as director of the Campaign Spending Commission at the end of the session, calls the current bill "half a loaf." It bars contractors from making campaign contributions from the time a contract is executed until it is completed.

Last year's stronger bill would have extended the ban for two years beyond the contract's completion. It also would have prohibited company officials who had donated to a campaign from being awarded a state or county contract for a full year.

The legislators failed to agree on lowering the amounts that can be donated by individuals and requiring additional reporting to identify contributors. That identification is needed to determine whether the contractors are complying; past contractors have siphoned the contributions through employees, families and friends.

The Legislature gave serious consideration to a bill that would have used public money to finance the entire campaigns of state candidates who promise not to accept private donations. The bill was downsized to apply only to House candidates before it was put to sleep.

Opponents, including Lingle, cringed at the notion of "free money" from taxpayers going to candidates. "It would force them to support candidates they may be bitterly opposed to," she said.

That is true, but the state already provides matching funds to candidates who agree to limit spending. Maine and Arizona have adopted such "clean elections" systems and they have gained public support. Legislators next year should consider a pilot project testing the option in a few districts.

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