The Impact of Public Finance Laws on Fundraising in State Legislative Elections

Abstract

Campaign finance reform has become a hotly debated issue at both the federal and state levels. Maine and Arizona became the first states to implement a fully subsidized public finance system for legislative candidates during the 2000 election. Minnesota, Wisconsin, and Hawaii have provided partial public funding to legislative candidates for several elections. The experiences of these states provide an opportunity to evaluate public funding programs. This study addresses the question: Does public funding reduce the time that candidates devote to fundraising? Using data comprising a representative nationwide sample, we demonstrate that candidates who accepted full public funding spent less time raising money than other candidates, including those who accepted partial public funding. We conclude that full public funding has the potential to redirect modern campaign efforts away from the “money chase,” freeing time for other campaign activities.