N.C. Politicians Wary of McCain's Finance Reform

Officials from the state's Democratic and Republican parties agree that reform is needed, but neither could suggest what type of changes should be adopted.

"I don't think anybody disagrees that something needs to be done," N.C. Democratic Party Executive Director Scott Falmlen said. "But the devil's in the details."

The McCain-Feingold bill, sponsored by Sen. John McCain, R-Ariz., and Russell Feingold, R-Wis., aims to put an end to soft money -- unregulated contributions to campaigns by corporations, labor unions and wealthy individuals.

N.C. Democratic and Republican leaders said they will not make an official statement on the bill until it is amended and all debate concluded.

"We have to wait and see what the final product is before we come out for or against it," Falmlen said.

While leaders from neither party would take an official stance on the bill, they said its current form is unacceptable.

N.C. Republican Party Chairman Bill Cobey said if the bill was passed and signed into law in its current form, it would benefit the Democratic party because the Democrats have a stronger relationship with labor unions.

The McCain-Feingold bill does not regulate union dues used for political purposes.

"We don't support giving up soft money if it doesn't mean (the Democrats) giving up mandatory union dues as well," Cobey said.

The Republican party has consistently raised more hard money than the Democrats, while soft money contributions have been about equal for both parties.

Cobey added that strict federal campaign contribution regulations implemented in light of the Watergate scandal of 1972 are the underlying cause of soft-money problems.

Current regulations limit individuals to $1,000 donations, something Cobey said has led to increased instances of special-interest groups making pacts with -- and donations to -- political parties.

Cobey and Falmlen both said they favor parts of an alternative proposal by Sen. Chuck Hagel, R-Neb.

Hagel's proposal would cap corporate contributions at $60,000 per election and raise individual contribution limits from $1,000 to $3,000.

But Duke University political science Professor Scott De Marchi said any reform would have more impact on congressional elections than the presidential race because money is more important for candidates' exposure in smaller, local races.

"There's a lot more (financial) strategy at the congressional level," he said.

Although De Marchi said he thinks the McCain-Feingold bill will fail, he said its failure could be a positive thing for campaign finance reform.

De Marchi said he feels McCain is already positioning himself for another run at the White House in 2004, a position that could be helped by the bill's defeat.

De Marchi said the bill's failure would reflect poorly on President Bush's political record in the White House and his ability to rally members of Congress.

McCain, who was running on a platform of campaign finance reform, lost to Bush in the Republican primaries last spring.

The State & National Editor can be reached at stntdesk@unc.edu.