05-2598. Price Index Increases for Expenditure and Contribution Limitations

AGENCY:

Federal Election Commission.

ACTION:

Notice of expenditure and contribution limitation increases.

SUMMARY:

As mandated by provisions of the Bipartisan Campaign Reform Act of 2002 (“BCRA”), the Federal Election Commission (“FEC” or “the Commission”) is adjusting certain expenditure and contribution limitations set forth in the Federal Election Campaign Act of 1971, as amended (“FECA” or “the Act”), to account for increases in the consumer price index.

Additional details appear in the supplemental information that follows.

EFFECTIVE DATE:

The effective date for the limits at 2 U.S.C. 441a(a)(1)(A), 441a(a)(1)(B) and 441a(h) is November 3, 2004. The effective date for the limits at 2 U.S.C. 441a(a)(3) and 441a(d) is January 1, 2005.

FOR FURTHER INFORMATION CONTACT:

Mr. Gregory J. Scott, Information Division, 999 E Street, NW., Washington, DC 20463; Telephone: [phone]; Toll Free [phone].

SUPPLEMENTARY INFORMATION:

Under the Federal Election Campaign Act of 1971, 2 U.S.C. 431 et seq., as amended by the Bipartisan Campaign Reform Act of 2002, Public Law 107-155, 116 Stat. 81 (March 27, 2002), coordinated party expenditure limits (2 U.S.C. 441a(d)(3)(A) and (B)), and certain contribution limits (2 U.S.C. 441a(a)(1)(A) and (B), (a)(3), (d) and (h)), are adjusted either annually or biennially by the consumer price index. See 2 U.S.C. 441a(c)(1). The Commission is publishing this notice to announce these limits for 2005 or the 2005-2006 election cycle.

Coordinated Party Expenditure Limits for 2005

Under 2 U.S.C. 441a(c), the Commission must adjust the expenditure limitations established by 2 U.S.C. 441a(d) (the limits on expenditures by national party committees, State party committees, or their subordinate committees in connection with the general election campaign of candidates for Federal office) annually to account for inflation. This expenditure limitation is increased by the percent difference between the price index, as certified to the Commission by the Secretary of Labor, for the 12 months preceding the beginning of the calendar year and the price index for the base period (calendar year 1974).

1. Expenditure Limitation for House of Representatives

Both the national and state party committees have an expenditure limitation for each general election held to fill a seat in the House of Representatives. The formula used to calculate the expenditure limitation in a state with more than one congressional district multiplies the base figure of $10,000 by the price index (3.831), rounding to the nearest $100. Based upon this formula, the expenditure limitation for 2005 House elections in those states is $38,300. The formula used to calculate the expenditure limitation in a state with only one congressional district multiplies the base figure of $20,000 by the price index (3.831), rounding to the nearest $100. Based upon this formula, the expenditure limitation for 2005 House elections in these states is $76,600.

2. Expenditure Limitation for Senate

Both the national and state party committees have an expenditure limitation for a general election held to fill a seat in the Senate. The formula used to calculate the Senate expenditure limitation considers not only the price index but also the voting age population (“VAP”) of the state. The expenditure limitation is the greater of: the base figure ($20,000) multiplied by the price index (which totals $76,600); or $0.02 multiplied by the VAP of the state, multiplied by the price index. Amounts are rounded to the nearest $100. The chart below provides the state-by-state breakdown of the 2005 expenditure limitations for Senate elections.

Senate Expenditure Limitations—2005 Elections

State	VAP (in thousands)	VAP × .02 multiplied by the price index (3.831)	Expenditure Limit (the greater of the amount in column 3 or $76,600)
Alabama	3,436	$263,300	$263,300
Alaska	467	35,800	76,600
Arizona	4,197	321,600	321,600
Arkansas	2,076	159,100	159,100
California	26,297	2,014,900	2,014,900
Colorado	3,423	262,300	262,300
Connecticut	2,665	204,200	204,200
Delaware	637	48,800	76,600
Florida	13,394	1,026,300	1,026,300
Georgia	6,497	497,800	497,800
Hawaii	964	73,900	76,600
Idaho	1021	78,200	78,200
Illinois	9,475	726,000	726,000
Indiana	4,637	355,300	355,300
Iowa	2,274	174,200	174,200
Kansas	2,052	157,200	157,200
Kentucky	3,166	242,600	242,600
Louisiana	3,351	256,800	256,800
Maine	1,035	79,300	79,300
Maryland	4,163	319,000	319,000
Massachusetts	4,952	379,400	379,400
Michigan	7,579	580,700	580,700
Minnesota	3,861	295,800	295,800
Mississippi	2,153	165,000	165,000
Missouri	4,370	334,800	334,800
Montana	719	55,100	76,600
Nebraska	1,313	100,600	100,600
Nevada	1,731	132,600	132,600
New Hampshire	995	76,200	76,600
New Jersey	6,543	501,300	501,300
New Mexico	1,411	108,100	108,100
New York	14,655	1,122,900	1,122,900
North Carolina	6,423	492,100	492,100
North Dakota	495	37,900	76,600
Ohio	8,680	665,100	665,100
Oklahoma	2,664	204,100	204,100
Oregon	2,742	210,100	210,100
Pennsylvania	9,569	733,200	733,200
Rhode Island	837	64,100	76,600
South Carolina	3,173	243,100	243,100
South Dakota	580	44,400	76,600
Tennessee	4,510	345,600	345,600
Texas	16,223	1,243,000	1,243,000
Utah	1,649	126,300	126,300
Vermont	487	37,300	76,600
Virginia	5,655	433,300	433,300
Washington	4,718	361,500	361,500
West Virginia	1,431	109,600	109,600
Wisconsin	4,201	321,900	321,900
Wyoming	390	29,900	76,600

Contribution Limitation Increases for Individuals, Nonmulticandidate Committees and for Certain Political Party Committees Giving to U.S. Senate Candidates for 2005-2006 Election Cycle

BCRA amended the Act to extend inflation indexing to: (1) The limitations on contributions made by persons under 2 U.S.C. 441a(a)(1)(A) (contributions to candidates) and 441a(a)(1)(B) (contributions to national party committees); (2) the biennial aggregate contribution limits applicable to individuals under 2 U.S.C. 441a(a)(3); and (3) the limitation on contributions made to U.S. Senate candidates by certain political party committees at 2 U.S.C. 441a(h). 2 U.S.C. 441a(c). These contribution limitations are increased by multiplying the respective statutory contribution amount by the percent difference between the price index, as certified to the Commission by the Secretary of Labor, for the 12 months preceding the beginning of the calendar year and the price index for the base period (calendar year 2001). The resulting amount is rounded to the nearest multiple of $100. The Commission has calculated the applicable percent difference to be 6.7 percent.

Contribution limitations shall be adjusted accordingly:

Statutory provision	Statutory amount	2005-2006 limitation
2 U.S.C. 441a(a)(1)(A)	$2,000	$2,100.
2 U.S.C. 441a(a)(1)(B)	25,000	26,700.
2 U.S.C. 441a(a)(3)(A)	37,500	40,000.
2 U.S.C. 441a(a)(3)(B)	57,500 (of which not more than $37,500 may be attributable to contributions to political committees that are not political committees of national political parties)	61,400 (of which not more than $40,000 may be attributable to contributions to political committees that are not political committees of national political parties).
2 U.S.C. 441a(h)	35,000	37,300.

Under the Act, the inflationary adjustments are to be made only in odd-numbered years and the increased limitations at 2 U.S.C. 441a(a)(1)(A), 441a(a)(1)(B) and 441a(h) are to be in effect for the 2-year period beginning on the first day following the date of the general election in the preceding year and ending on the date of the next regularly scheduled election. Thus the respective figures above are in effect from November 3, 2004 to November 7, 2006. The limitation under 2 U.S.C. 441a(a)(3)(A) and (B) shall be in effect beginning January 1st of the odd-numbered year and ending on December 31st of the next even-numbered year. Thus the new contribution limits under 2 U.S.C. 441a(a)(3)(A) and (B) are in effect from January 1, 2005 to December 31, 2006.

Dated: February 4, 2005.

Scott E. Thomas,

Chairman, Federal Election Commission.