FOR IMMEDIATE RELEASE Nov. 14, 2008

NORTH CAROLINA VOTERS FOR CLEAN ELECTIONS

Contact: Chase Foster, Coalition Director, NCVCE, 919.260.1872, chase@ncvce.org

INSURANCE INDUSTRY NO LONGER BANKROLLING COMMISSIONER OF INSURANCE CANDIDATES

Candidates running for the state's top insurance job are no longer receiving most of their campaign financing from the insurance industry because of a new public campaign financing program---says a new report by the non-partisan campaign reform group NC Voters for Clean Elections.

According to the study, the percentage of campaign money taken from the insurance industry and other industries directly regulated by the state insurance agency dropped from 66% in 2004 to below 5% in 2008.  Overall, regulated groups spent just 1/6th of what they did in 2004 on the Commissioner of Insurance race. 

The reduction can largely be explained by a new public campaign financing program which gives candidates a public grant to run for office if they agree to only raise contributions of $200 or less from registered voters in North Carolina and stop all fundraising between the primary and election.  Both Republican John Odom and Democrat Wayne Goodwin participated in the program, and as a result contributions from regulated industries plummeted.

"North Carolina's new Voter-Owned Elections program has fundamentally altered the influence of the insurance industry on this race," said Chase Foster, director of the group.  "When our next insurance commissioner is sworn in, there will be no special interest favors to call in or debts to pay.  Instead, he can focus entirely on serving the people of this great state."

The report also found that the average contribution for the two winning candidates went from $500 to $70, because of the requirement for hundreds of small donations and the ban on contributions greater than $200. 

Four candidates running for Council of State offices received public financing, including both Republican John Odom and Democrat Wayne Goodwin for Commissioner of Insurance as well as incumbent Republican auditor Les Merritt and incumbent Democratic Superintendent of Public Instruction June Atkinson who were both running for re-election.  According to NC Voters for Clean Elections, these candidates collected at least 4,376 small donations that averaged $47.  Donations came only from registered North Carolina voters living in all 100 counties.

"This program allows candidates to spend more time with average voters throughout the state," said Foster.  "By putting the focus back on voters, we're forming a more meaningful, participatory democracy."  

Highlights:

• Even though his race was not competitive, Commissioner of Insurance Jim Long raised $353,816 in the 2004 cycle, 66% of which came from the insurance industry or other groups his agency directly regulates. 

 

• In 2008, the percentage from regulated groups dropped to below 5% for both the Republican and Democratic candidates.  Their participation in public financing allowed them (in fact required them) to run without raising large amounts of money from these sectors. 

 

• Overall, the money from regulated industries went from $192,231[1] in the  2004 cycle to $31,269 in 2008—an 83% drop in total contributions from regulated industries.

 

• The average contribution in the 2004 cycle for Commissioner of Insurance Jim Long was $500.  In the 2008 election, the average for Commissioner of Insurance-elect Wayne Goodwin was $70, or less than 1/7^th of the 2004 average. 

 

• Public financing brings more voters into the process and pushes big money to the sidelines.

 

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