Clean Elections won't face expensive ballot-box fight

A measure given preliminary approval Monday by the state Senate would curb some activities of the Citizens Clean Elections Commission in promoting the organization. The new version of HB 2779 also would end the ability of taxpayers to get a dollar-for-dollar tax credit for donations to help candidates run for office.

In exchange, foes of public financing have agreed to scrap plans to ask voters to kill the system outright, a ballot fight that likely would be expensive, with neither side guaranteed a victory.

The deal also ends any threat to Tucson's public campaign financing system for mayor and City Council, as the ballot proposal would have banned all forms of public funding.

The 1998 voter-approved law allows candidates for statewide and legislative office to get public money for their campaigns if they agree not to take other outside cash. The amount is based on the office being sought.

A majority of the money comes from a surcharge on civil, criminal and traffic fines. But nearly half comes from a state income tax credit available to donors, a system that takes money out of the general fund.

Last year business interests and other foes of public financing convinced lawmakers to approve a ballot measure asking voters to constitutionally ban any public money from being used by candidates.

That language was declared illegal by a judge. Foes of public financing had recast it to comply with the court ruling and were prepared to send it to the ballot.

But that led to another fight: whether the commission was trying to influence the vote on its own future.

State law allows the commission to use 10 percent of what it collects for "voter education."

Those trying to kill public financing argued much of that spending cash was designed to oppose the referendum. A state judge disagreed. But the issue was headed to an appellate court.

Monday's deal calls for the law to be amended to specifically prohibit the use of voter education funds "to promote the benefits of the Clean Elections Act."

"In other words, no billboards at the hockey game, no TV ads saying 'Clean Elections is a wonderful thing,' " said state Sen. John McComish, R-Phoenix, who helped broker the deal.

Exactly where that line is may be subject to interpretation.

"In my view, we do exactly what we've always done," said Todd Lang, the commission's executive director.

He said the commission still will be able to use the money it gets to publicize why people should choose to run with public financing and how they can make that happen. And he said the billboards and ads on websites will remain.

"They're very effective," Lang said.

But where some have statements now like "Good politics," and how Clean Elections is "Good for Arizona," the new message instead will urge people to get involved in politics and run for office - and that public funding is available.

The other part of the deal relates to the source of the money.

Lang said about $6 million a year comes from those dollar-for-dollar tax credits. He said eliminating the credits will not hurt the system, inasmuch as the commission has been giving an extra $10 million a year in surplus money to the state general fund.

That still leaves the commission able to collect the surcharges on fines, which Lang said brings in about $15 million a year.

While he believes voters would have continued to support public funding, "Ultimately, we thought discretion was the better part of valor," Lang said.

McComish said he sees a negotiated deal as preferable to another ballot fight.