Should Senators Operate PACs?
In the 2006 election cycle, 291 Leadership PACs contributed $42 million to incumbents and challengers running for Congress. In the 1998 cycle, there were only 120 Leadership PACs contributing $11 million. A four-fold increase in eight years -- yet the number of traditional PACs peaked in 1988.
In the 2006 election cycle, Sen. John McCain (R-AZ) raised, and spent, almost $8 million but contributed a mere $356,000 (5% of expenses) to other candidates. Sen. Barack Obama (D-IL) raised $4.4 million, spent $3.7 million and contributed $595,000 (16% of expenses) to other candidates. Finally, Sen. Hillary Clinton (D-NY) raised $2.9 million, spent $3 million and contributed $297,000 (10% of expenses) to other candidates. Her PAC ended the cycle with only $31,000 on hand (like McCain, at $33,000, but not like Obama, who ended with $678,000).
That's $15 million (in round numbers) raised (ostensibly) to help get your party elected or re-elected to Congress. It's almost enough to have given $5,000 (the limit per campaign cycle) to every congressional (Senate and House) race. But that's not how the money seems to be spent.
According to a 2006 report n the Washington Post, one of the reasons Leadership PACs are controversial is because they are so unregulated: for example, the "personal use" prohibition that applies to campaign committees is absent. Does that explain all the travel expenses in McCain's and Obama's PAC statements?
Under Federal Election Commission (FEC) rules, a Leadership PAC is known as a "nonconnected PAC" -- after all, it's not "connected" with an organization, it's associated with an elected official. The only restriction on spending is that the Senator or Representative cannot use the funds to directly support his or her personal campaign. Indirect support through polling or consulting? Sure.
But as we can see from looking at the campaign contribution to expenditure ratios for the three presidential candidates, not a lot of money is going to other campaign funds. It's going into travel (charters and limos), polling, direct mail, other political consultants.
PACs have been around since 1944. The FEC limits how much they can contribute per candidate per election cycle ($5,000) and how much an individual can contribute to the PAC per election cycle ($5,000).
And although PACs symbolize 'the problem' with money and politics to many people, a 2007 report by Congressional Quarterly noted that "the PAC issue" had become secondary to concerns over special interest monies through other channels (pdf). The number of PACs peaked in 1988, at 4,268. However, in 2004, incumbent members of the House received 41% of their campaign contributions from PACs, suggesting that they still have influence. In presidential elections, however, they are inconsequential.
Related:
What Is A Leadership PAC"
What Are Super-Delegates?
Money, Politics and Advocacy
Obama King of Leadership PACS
The Candidates: Missed Votes
The Making Of A Candidate
Top 10 Political Action Committees (PACs) - 2006