Last week, I wrote about a controversial new Missouri law, which took effect August 28, that drastically
minimizes the requirements for teacher certification in Missouri. Another new law that took effect on August 28 repealed the campaign contribution limits for individual donors to Missouri candidates for state office, overriding a 2007 Missouri State Supreme Court ruling that had overturned parts of a 2006 campaign finance bill, signed by Gov. Matt Blunt, abolishing individual contribution limits. That bill had also placed a “blackout” on candidates receiving donations during legislative periods.
Missouri has had a controversial and meaningful history with campaign contribution limits since 1994, when initially the state legislature passed a bill placing donation limits; however, a voter referendum in which 74% of voters elected to place even stricter limits on donations took effect before the bill became effective. Nonetheless, a subsequent legal challenge to the strict limits of the voter referendum led to the 8th Circuit Court of Appeals overturning the referendum based on First Amendment concerns.
After this defeat, the initial 1994 bill then became effective, and a 1997 amendment placed the limit at $1000, with a mechanism for adjustment of that amount for inflation. This lead to another legal challenge, making it all way to the U.S. Supreme Court in Nixon v. Shrink, where the Court re-visited Buckley v. Valeo for the first time in 23 years. In Buckley, the Court held that $1000 limits on campaign contributions for federal candidates were constitutional and not a violation of the First and Fourteenth Amendments; at the same time, the Court overturned limits placed on expenditures for a candidate as being unconstitutional restrictions on First Amendment free speech. With Nixon, the court held that the $1075 limit on Missouri contributions was not unconstitutional when taking inflation into consideration, and that the state did not need to show real harm in order to justify its contribution limits.
As of this year, the limits had not changed much:
The limits had been $325 for state House candidates, $675 for Senate candidates and $1,350 for statewide candidates. Committees not connected with a specific candidate were allowed to accept and donate 10 times that much.
Nonetheless, even with contribution limits, the money still found its way into the campaign, albeit with a circuitous, complex, and veiled system of political action committees, not to mention less ethical reports of large corporations urging their executives to contribute to those candidates that were favorable to the company, with many businesses reimbursing the executives, often as a part of routine pay raises. The Columbia Missourian recently noted of the ways around limits:
Missouri voters overwhelmingly backed contribution limits in 1994. But the cost of Missouri’s major campaigns has continued to climb into the double-digit millions. To get around the limits, big donors routinely pass their contributions to candidates through various local political party committees, which have been allowed to provide roughly 20 times the amount of aid to candidates as individual contributors
One ironic twist in this saga involves Jay Nixon, who argued before the U.S. Supreme Court on behalf of the state in Nixon. Nixon, the democratic candidate for governor, has repeatedly voiced his feelings against abolishing the limits, recently stating:
“This is a sad day for everyone who believes that regular Missourians, not wealthy special interests, should have the most powerful voice in electing our leaders,” Nixon said in a statement. “By signing this bill, Gov. Blunt has cleared the way for big corporations and wealthy interests to give millions to candidates. It’s a clear step in the wrong direction.”
Nonetheless, Nixon, according to the Post Dispatch, has played by the new rules, raising $410,000 from “big donors”, including $100,000 from St. Louis personal injury attorneys Gray, Ritter and Graham. Of course, Republican candidate Kenny Hulsof has raised $1.6 million from big donors, and the Dispatch notes that this year’s race is shaping up to be the most expensive in Missouri history:
With the caps being lifted, the race for governor could well break 2004’s record as the most expensive gubernatorial race in state history. Even before the limits were erased, Nixon was on pace to break the record amount raised by a single candidate.
As of mid-July, Nixon had raised about $8.2 million. The record raised by a single candidate is $11.4 million, by Claire McCaskill in 2004. In that election cycle, McCaskill won a hard-fought primary against incumbent Gov. Bob Holden before losing the general election to Republican Matt Blunt.
The article points out that many of Nixon’s largest donations have come from personal injury attorneys (Nixon opposes tort reform), while many of Hulsof’s have come from big business, which are hoping to minimize their future risks through tort reform. The Kansas City Star analyzed the Ethics Commission filings as of Tuesday (candidates are required to file a report with the Ethics Commission within 48 hours of a donation over the traditional limits):
Hulshof had filed two reports listing 25 contributions averaging $48,360 each. Even without counting the Republican Governors Association’s contribution, Hulshof still pulled in nearly 50 percent more than Nixon and his average contribution was $25,375, or 23 percent larger.
Another interesting development is that Hulsof has continued to raise large amounts of cash from political action committees, even though that flies in the face of the earlier justifications for the abolishment of limits. Critics of the limits argued that they created an opaque system in which it was impossible to see who was handing out substantial sums of money. The new bill’s sponsor, Sen. Charlie Shields (R-St. Joseph) recently stated:
“We hope to go back to a system where people will send money directly to candidates,” Shields said. “You’ll be able to track that, and if contributions are not going directly to candidates, you’ll have to question the motives.”
While that may be true, many large donors will still hope to remain anonymous, and the PAC route still allows this. One argument against the new bill is that it goes against the clear wishes of the electorate since 74% of those voting in 1994 were in favor of the limits. Those in favor of the new bill cite the increasingly high costs of running an effective campaign.
Although the GOP traditionally has benefited the most from large donors, some are pointing to the Barack Obama campaign as evidence that the gap has closed considerably, and Missouri State University Political Science professor George Conner notes that Democrats have evolved:
“Democrats are now more focused on all aspects of fundraising than they used to be,” Connor said. “They have improved to the point that they have almost caught up with the Republicans and nearly overcome the advantage that Republicans traditionally held.”
It will be interesting to see the final numbers after this Gubernatorial election, just as it will be interesting to see what comes next for this issue. If past history is any indication, another round of legal challenges could just around the corner.

