Jan 16, 2008 -- Bloomberg: Elections Regulator Can't Regulate Most Expensive U.S. Contest
By: Jonathan D. Salant and Lorraine Woellert

John Edwards, who is relying on federal money to help fund his presidential campaign, may not get any more. The list of lobbyists raising cash for the candidates, and how much they have brought in, remains hidden.

The Federal Election Commission doesn't have enough members to oversee what is expected to be the most expensive election in U.S. history. Down to just two of its six commissioners, the FEC can't assemble the quorum of four votes required to approve federal campaign funds, enact regulations, undertake fraud investigations or provide legal advice to candidates.

The reason: Senate Democrats have refused to confirm former Justice Department official Hans von Spakovsky to a seat on the FEC, and, in response, Senate Republicans won't let through President George W. Bush's three other nominees.

``There are decisions that need to be made; now there is no one to make them,'' said Gary Kalman, a lobbyist with the Boston-based U.S. Public Interest Research Group, which favors stronger campaign-finance laws.

Four Democratic senators, including presidential candidate Barack Obama of Illinois and Russell Feingold of Wisconsin, announced plans to block von Spakovsky. Senate Minority Leader Mitch McConnell, a Kentucky Republican, refused to allow the other nominees to get separate up-or-down votes, insisting they must be approved as a package with von Spakovsky.

Redistricting

While at the Justice Department, von Spakovsky was involved in overruling nonpolitical employees and approving an unprecedented mid-census congressional redistricting in Texas and a Georgia law requiring voters to obtain government-issued identification cards. The U.S. Supreme Court rejected some of the new Texas district lines, and a federal judge likened the Georgia law to the now-unconstitutional poll tax used to block blacks from voting.

Von Spakovsky, 48, has a ``demonstrated record of suppressing the right to vote,'' said Gerry Hebert, executive director of the Campaign Legal Center, a Washington-based group that opposes the nomination.

In 2006, Bush, 61, put von Spakovsky on the FEC while Congress was out of session and that appointment has expired.

With neither side backing down, the FEC has a backlog of cases. The two remaining commissioners, whose terms have expired, are serving only until their successors are named. They can still submit the agency's budget request to Congress, and hire and fire employees, spokesman Bob Biersack said. The staff can continue investigations.

Spending Limits

So far, former North Carolina Senator Edwards is the only top-tier presidential candidate to agree to limit campaign spending to $50 million in exchange for partial federal funding. His better-funded rivals for the Democratic nomination such as Obama, 46, and Senator Hillary Clinton of New York, 60, have decided to avoid the spending limits by forgoing federal money. Republicans such as former Massachusetts Governor Mitt Romney, 60, and former New York Mayor Rudy Giuliani, 63, have done the same.

The FEC can't approve any more money for Edwards, 54, beyond the $8.8 million it certified in December. The government has yet to disburse Edwards's money, though he can borrow against the promise of getting federal funds.

``We fully expect the FEC to meet their obligations under the public-financing system,'' Edwards spokesman Eric Schultz said.

McCain Undecided

Among Republicans, Arizona Senator John McCain of Arizona was certified to receive $5.8 million. His prospects were enhanced by his first-place finish in the Jan. 8 New Hampshire primary and he hasn't decided whether to accept public financing, said Jill Hazelbaker, a spokeswoman for McCain, 71.

Arkansas Governor Mike Huckabee, 52, whose shoestring campaign gained momentum after he won the Jan. 3 Iowa caucuses, has yet to apply for federal funds. Under public-financing laws, the government matches the first $250 of each individual donation up to a maximum of about $21 million.

The standoff at the FEC is being felt beyond the campaign. Also awaiting action are regulations identifying lobbyists who raise at least $15,000 over six months for a federal candidate.

In addition, Republican Senator Pete Domenici of New Mexico is waiting to hear from the FEC whether he can use campaign funds to pay legal expenses arising from a Senate Ethics Committee investigation. Domenici called then-U.S. Attorney David Iglesias before the 2006 elections about a criminal probe of local Democrats. The Bush administration later dismissed Iglesias and eight other U.S. attorneys, and Domenici announced plans to retire in October.

Unlimited Donations

Separately, a group called Speechnow.org has asked the commission to determine whether it can accept unlimited donations from individuals or must register as a political action committee, with a $5,000 limit.

Speechnow.org's head, David Keating, said the FEC's lack of a quorum is hindering the ability of his group to get involved in the elections. ``It's gagging speech by gridlock,'' said Keating, who also leads the Club for Growth, a Washington-based anti-tax group.

Spokesmen for McConnell and Senate Majority Leader Harry Reid of Nevada said they don't expect the deadlock to be resolved soon.

Former FEC Chairman Michael Toner said the candidates, interest groups and others who participate in U.S. politics are being hurt by this impasse.

"This is not the U.S. Senate's finest hour,'' he said.