January 21, 2010: Sunlight Foundation: Current Disclosure System Not Adequate to Handle Demands for Campaign Finance Transparency

The Sunlight Foundation’s Ellen Miller posts a scathing criticism of the Supreme Court’s Citizen United decision (see January 21, 2010) on the Foundation’s blog. Miller writes that the implications of the decision “are breathtaking—opening the floodgates of political money such as we have never seen before. If you thought Congress was ‘for sale’ to the highest bidder, you ain’t seen nothing yet. Nothing less than a fundamental rethinking of our campaign finance laws is demanded as a result of today’s decision.” Miller writes that transparency in donations and funding is not “a panacea for the horrific consequences of today’s decision, it is critically important as the shredded system is rebuilt. Today’s decision underscores the necessity of creating comprehensive real-time disclosure for all election spending—across the board—from when and how often candidates, individuals, and PACs report their contributions and expenditures to those involved in independent expenditures, issue ads, or direct election advocacy.” Miller focuses on the portion of the majority opinion that claimed Internet-based disclosure is sufficient to keep the public informed about campaign finance practices. The opinion, written by Justice Anthony Kennedy, held: “With the advent of the Internet, prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable for their positions and supporters. Shareholders can determine whether their corporation’s political speech advances the corporation’s interest in making profits, and citizens can see whether elected officials are ‘in the pocket’ of so-called moneyed interests.… This transparency enables the electorate to make informed decisions and give proper weight to different speakers and messages.… [M]odern technology makes disclosures rapid and informative.… A campaign finance system that pairs corporate independent expenditures with effective disclosure has not existed before today.” Miller agrees, but notes that “the disclosure system [Kennedy] describe[s] doesn’t yet exist. The current disclosure system is insufficiently ‘rapid and informative’ and does not make effective use of modern technology.” Miller predicts a “tidal wave of corporate campaign expenditures” that will not be exposed or held accountable by the current disclosure system. “The quarterly reporting system now in place is outdated and ineffective—ridiculous, in a word.” Miller concludes: “[T]his decision should trigger momentum toward ensuring that all election-related information is available online in real-time. Disclosure remains a crucial antiseptic to the corrupting influence of money in politics. We should ensure our system is as transparent as possible.” [Ellen Miller, 1/21/2010]