By Mandating Transparency, The NJ Legislature Can Protect the Gubernatorial Election

Hard to believe but the next election for governor is just two years away.

So let this column be the first to speculate about what will distinguish this election from ones in the past.

Of course, some things won't change. The Gubernatorial Public Financing Program will again be a staple of this election. This program provides matching funds to qualifying candidates of limited means and works to eliminate even the appearance of undue influence over the gubernatorial process.

By matching two public dollars to every dollar raised, candidates who qualify for the program can receive millions of public dollars to help them get their message to the voters. Considered a model for other states, the program has existed since the 1977 election. It has permitted individuals to be elected to the state's highest office who otherwise may not have been able to raise adequate funds to compete effectively.

So in this regard, New Jersey serves as the standard bearer for the conduct of gubernatorial elections. The program will continue to be the thread that connects to the past.

What will be different in the next election, however, will be the emergence of independent, outside groups. Their increased involvement makes the need for our strong public financing program even greater.

The New Jersey legislature can prevent these groups from having unfettered and often anonymous influence in the next gubernatorial election. But in order to do so, it needs to act this year and pass legislation making the actions of these groups transparent to the public.

What groups we are talking about? Among them are 527 nonprofits, which are permitted to participate in campaigns and only report twice per year to the IRS. These include organizations such as the Republican and Democratic Governor's Associations, as well as other political nonprofits. Other third-party groups involved in the political process include those that fall under the 501c4 tax code. These groups may not have politics as a primary purpose, but they can be involved in campaigns and are not required to disclose their financial activity publicly. Falling under this umbrella are such groups as the National Rifle Association, One New Jersey, and Better Education for New Jersey Kids, Inc.

Finally, there are now national super PACs that can establish separate accounts, one of which can accept unlimited donations and spend unlimited amounts. The super PACs often receive soft money contributions that they don't disclose. The rise of the super PACs was spurred by the U.S. Supreme Court's landmark Citizens United decision, which allows unlimited corporate and union contributions to political activities.

The fact that 527's, 501(c)'s, and super PACs loom over the next election is evidenced by the 2009 gubernatorial election, the recent legislative elections, and trends nationally.

Two years ago the Democratic and Republican Governors Associations, as well as labor unions, all participated independently in the gubernatorial general election. Millions were spent.

In this year's legislative elections, it is estimated that more than $800,000 was spent by independent groups to influence the outcome of the contest.

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