Refund program is remedy to big money politics

The ongoing financial problems of the Minnesota Republican Party are back in the news.

Chair Tony Sutton has resigned, and the Star Tribune reported: "Sutton took the helm of the state GOP in 2009 with more than $1 million in the bank. By January of this year, the party owed creditors $750,000, and still remains more than $500,000 in debt."

Sutton wrote in his resignation letter:

"Losing the [Political Contribution] refund program has had a devastating effect on our small dollar fundraising programs as compared to the past.... Party finance staff estimate the loss of the refund program cost us $2 million in lost revenue in 2010 and $1 million in 2011."

Never heard of the Political Contribution Refund? Here are the basics:

The PCR provides a dollar-for-dollar refund from the state Revenue Department for individual contributions of up to $50 ($100 for married couples) to state political parties. Participating candidates accept spending limits.

The PCR program is designed to work with the $5 income tax check-off for political parties. The intent is to keep big money from dominating our state politics.

Unfortunately, Gov. Tim Pawlenty unalloted the PCR -- effective July 1, 2009. His unallotments were ruled illegal, but the program remains unfunded.

We do have a serious problem with Minnesota's campaign finance system. But it doesn't have to do with money so much as with how we've been conditioned to think of campaign finance.

Powerful, big money interests try to buy "naming rights" to policies and programs. The inheritance tax is a "death tax" -- I'm sure you can name many other examples.

Public financing for candidates and parties has been branded too -- as "public money," which is "taken" from "hard-working taxpayers."

Is this a fair way of describing what is (or was) going on with PCR, what I call Minnesota's Citizens' Campaign Finance system?

Think of it this way (but don't get your hopes up): Suppose the Legislature decided to spend nothing. Wouldn't the state be morally obligated to return to each of us the money that had been collected from us in taxes?

This same principle applies to the PCR. If we want to spend $50 of our money on candidates or parties that we personally support, the Legislature won't spend that $50 of our money on anything else. Instead, the Revenue Department sends our $50 back to us. That's how the PCR system works.

The same principle applies to the $5 income check-off. If you decide to contribute $5 of your tax money to a political party, the Minnesota Revenue Department manages the transaction. The department pays $5 of the money you paid in taxes to the party you choose to contribute to.

When you check off the contribution, your tax bill or refund doesn't change. Why? It's because the Revenue Department is sending your money to the party you are contributing to.

The U.S. Supreme Court's Citizens United decision has greatly expanded the ability of corporations to spend their money promoting their agendas.

Now's the time to contact legislators and Gov. Dayton, and tell them to use part of our state surplus (our money!) to fully fund Minnesota's Citizens' Campaign Finance system.

Then, ask your members of Congress to use our Minnesota model at the national level.

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