The Campaign Business

Presidential candidates had debts of about $11.5 million at the end of March, according to Federal Election Commission reports. Of the Democrats who have already dropped out of the race, Sen. Albert Gore (D-Tenn.)owed $1.5 million, Rep. Richard Gephardt (D-Mo.) owed $1.8 million and Sen. Paul Simon (D-Ill.) owed slightly more than $615,000. Of the Republicans who fell by the wayside, Sen. Robert Dole (R-Kan.) owed $1.8 million and television evangelist Pat Robertson owed $1.4 million.

At the end of 1986, the commission tallied debts of more than $40 million for federal candidates who were still reporting for various elections.

One can’t assume that all debts will eventually be paid, said Brad O’Leary, president of the American Assn. of Political Consultants. A campaign can easily go into debt for 5% of funds raised, he said. Anything beyond 10%, O’Leary said, “is very questionable if it will be paid.”

What accounts for the dramatic increase in campaign costs in the United States? One factor often cited by critics of campaign spending--television advertising--is not the real culprit when you look at the nation as a whole, said Herbert E. Alexander, director of the Citizens Research Foundation at the University of Southern California. “Television accounts for only about 10% to 15% of the nation’s campaign bill,” he said. Few of the candidates for the some 500,000 elected positions in the nation ever get near a television camera, he added.

Rather, Alexander said, a number of factors account for the rising costs, particularly the increased use of technology in campaigns and the greater use of professionals for all sorts of campaign tasks.

Television, however is a significant factor in major elections, including some statewide contests in big states. The Mondale-Ferraro Committee spent about 44.3% (more than $19 million) of the $45 million spent on the 1984 general election on media advertising, according to “Financing the 1984 Election” by Alexander and Brian Haggerty. Television advertising accounted for all but a small portion of that money. Travel costs accounted for more than 24.4% of the expenditures, followed by 7.7% for payroll and benefits and 6.6% for consulting contracts.

If the California Fair Political Practices Commission had its way, many political consultants would have to register with the state. A registration bill, introduced at the request of the FPPC, has thus far failed to clear the House Ways and Means Committee. Some political consultants oppose the measure as an attempt to license political consultants--an effort, they argue, that would be meaningless.

But the measure is merely an identification mechanism, said Keith Umemoto, administrative assistant to Sen. Alfred Alquist, D-San Jose, a legislative sponsor of the bill. “It provides more of an ability for people to cross-check references than by word of mouth,” Umemoto said.

A spokeswoman for the FPPC said the proposal grew out of problems in establishing responsibility for questionable campaign practices. The measure would provide a means of establishing contractual responsibilities. Consultants with contracts of at least $5,000 would have to register under the law.

Very few minority professionals have had the opportunity to share in the campaign dollar, because white candidates tend to hire people they know, said Rod Wright, a black Los Angeles political consultant. The Rev. Jesse Jackson “has done a much better job of trying to include minorities,” he added. Pat Tobin, president of Tobin & Associates, a Los Angeles public relations firm, said she doesn’t want to get extensively involved in politics, but is “very proud” of the opportunity to coordinate fund-raising events for the Jackson campaign.