San Mateo’s City Council has decided to maintain its existing strict campaign contribution limits and looking at further ways to ensure fairness on the campaign trail during elections.
The council used a Feb. 21 special meeting to discuss if it should repeal the existing campaign limits to align with looser state restrictions and what type of campaign finance reform it should consider. The 2022 campaign had seven candidates run and raise $199,036 in total contributions, with an average of around $28,000 raised per candidate. The 2020 elections saw $263,562 raised for only three candidates. Concerns have grown about the amount of money it takes to run for city government and the prohibitive costs that disillusion voters and make it harder for candidates to run.
The current city code, updated in 2017, says that individual contributions cannot exceed $500, and organization contributions cannot exceed $1,000. A candidate also cannot personally make a loan to their campaign that exceeds $15,000. State law sets contribution limits much higher at $5,500 for people, businesses and committees, something the council has felt was too high. Given the expenses and potential for undue influence, the council wanted to keep the current rules, and a majority favored looking into initiatives like public financing. Cities like Berkeley have adopted a policy where candidates receive a 6-to-1 match on campaign donations, with a limit of up to $60 being eligible for the 6-to-1 match. The council directed staff to look at different options to see what could work in the city.
Mayor Amourence Lee, a longtime advocate for campaign finance reform, was worried about independent expenditures going unchecked. Lee suggested further limiting contributions like a voluntary expenditure limit to help with equity and to ensure fairness in elections.
“I think that should be on the table to consider so that everyone can at least opt into an even playing field,” Lee said.
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The city must also contend with new state laws like Senate Bill 1439, which says that campaign contributions of more than $250 when the donor is an applicant for a license or permit would be a conflict of interest for local officials and would require recusal in certain situations, according to a city staff report. The situation could be solved by returning the contribution. Several councilmembers were worried a situation could arise where multiple councilmembers would have to recuse themselves, potentially affecting governance decisions. Councilmember Adam Loraine suggested shifting contribution limits to $250 to mitigate against the state law.
In November, the city also launched a new campaign finance dashboard that gives voters more detailed information on council election spending and financing data in 2022. The dashboard is the only one of its kind available in the county and is intended to increase transparency.
“The campaign dashboard is fantastic, and this is the way you make decisions,” Vice Mayor Lisa Diaz Nash said. "You see what the numbers are and see the relationships.”
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