Campaign Contribution Limits Back Before Charter Task Force

The Charter Study Task Force will discuss campaign contribution limits.

Currently, local residents can donate $5,500 to local campaigns, also the state limit, but some local residents believe that amount is too high.

The Task Force considered contribution limits on March 28. After deliberations, a motion was made and seconded to recommend leaving Pasadena’s default limits in place.

However, the vote was not concluded because a member of the Task Force asked consultants Baker Tilly for data on the comparison cities to see if there is a causal connection between low limits and independent expenditures.

Locals called for limits beginning back in 2020, before AB571 took effect. At that point, local races had no limits.

The City crafted an ordinance that would have allowed locals to continue to contribute without limits, only Jess Rivas voted against the ordinance.

The ordinance did not receive the two readings needed for it to become law.

Local residents supporting limits claim they lower the risk of corruption.

“If the limit is too high, it creates a barrier, and it lets big money gain power (corruption, bribery) and control of our community,” Julie McKune wrote to the task force.

Others claim that lower contribution limits would increase the candidate pool.

However, since the limit was set, there has not been an influx of candidates, and except for one race, the incumbents have continued to dominate the elections.

Consultants Baker Tilly said they found studies recommending lowering contribution limits in federal and state elections to reduce the influence of large donors with elected officials.

“We did not find one proving a direct connection between lowering limits and larger candidate pools, the consultants said.

Even if the City caps contribution limits, it cannot cap high-dollar contributions that will enter local races through independent expenditures.

An independent expenditure supports the election or defeat of a clearly identified candidate but is not made in coordination with any candidate or campaign.

The money can be used for ads, robocalls, mailers, yard signs, and other communications giving a candidate wide visibility.

To make matters worse, independent expenditures are harder to track than campaign contributions.

“The coffers of independent expenditure committees will expand because they provide a legal avenue for donors to give unlimited funds to support or oppose candidates for local races. Those funds can boost or overwhelm a candidate’s presence with voters through the purchase of communications including mailers, advertising, and social media posts,” according to Baker Tilly. “Neither the State of California nor any local government has the power to rein in independent expenditures. As a result, monies from large donors will continue to influence the political landscape.”

In the March election, voters were inundated with mail from independent expenditure committees across the county. In the seven Los Angeles City Council races on the March 5 ballot, $4 million in independent expenditure committees was spent on just two races, according to the LA Daily News.

Independent expenditure committees have been a part of local elections.

A $35,000 independent expenditure was filed by the California Apartment Association Housing Solutions Committee opposing Victor Gordo in his first campaign for Mayor without his opponent, then current Mayor Terry Tornek’s knowledge.

“In cities with low limits, a $5,500 donation would be made to an independent expenditure committee, in which case the names and amounts given by donors can be obscured through a series of legal maneuvers,” the consultants said. “Many observers would be unaware that an independent group is buying ads and paying for mailers on behalf of a campaign they have been following.”

The meeting takes place at 6 p.m. on Thursday in Council Chambers.