Disclosure Of Presidential Library Contributions Testimony Before The United States House Of Representatives Subcommittee On Government Efficiency, Financial Management, And Intergovernmental Relations, April 5, 2001 Paul C. Light, Vice President and Director, Governmental Studies I am delighted to testify before this subcommittee today on H.R. 577 and other pending legislation to require full disclosure of contributions to presidential library funds. I hardly need to remind this subcommittee of the perceived linkages between promised gifts to President Clinton's library fund and the pardon process. Whether the stories are ultimately proven true or false, the American public believes there was a pro quo for the quid.

There is no question that Americans have been following this story. According to The Pew Research Center for The People & The Press "news index" of public attention in February, 28 percent of Americans said they followed the controversy over the pardon process very closely, while another 32 said very closely. The story garnered more interest than President Bush's education plan, the California energy crisis, the collision of a U.S. Navy submarine with a Japanese ship, and the earthquake in India. Although this level of interest pales in comparison to the 61 percent of Americans who said they were paying very close attention to the rising price of gasoline last summer, it does suggest that Americans know what has been going on.

This kind of coverage may help explain why so many Americans are underwhelmed by the potential impact of campaign finance reform in restoring public confidence in our democratic process. Although more than three quarters of the American public (a) believes that campaign fund raising practices are corrupt or unethical and (b) favors limits on contributions to political parties, only 22 percent say that reforms would improve government very much. Part of the explanation almost certainly rests in the public's belief that contributors will find a way around the limits one way or another. Americans appear to believe that campaign money is like mercury—drive it from one corner of the political process and it will migrate to another. I have little doubt that most Americans would perceive contributions to the presidential library funds as yet another way for contributors to influence policymaking.

This is hardly the first moment in recent history when Congress has considered the need for disclosure of previously unregulated money. Congress has been trying to regulate campaign contributions for the better part of a century now, and may yet enact legislation this year to expand its regulatory framework to cover so-called soft money.

Campaign finance is not the only area where Congress has regulated contributions, however. In 1988, for example, Congress imposed disclosure requirements on contributions to presidential transition foundations for the express purpose of eliminating the appearance of conflicts of interest in advance of a president's inauguration. The Senate Governmental Affairs Committee became concerned about the pre-election period precisely because of what were perceived to be large amounts of unregulated, undisclosed contributions to the 1980-1981 Ronald Reagan presidential transition fund. While the Committee did not believe there had been any corruption or quid pro quo, it did conclude that the presence of undisclosed funding at such a sensitive moment in presidential time merited review.

It is important to note that the question before the Committee in 1988 was not whether contributors had purchased influence from the about-to-be-inaugurated Reagan administration, but whether the American public could draw the inference, however poorly grounded, that undisclosed contributions were somehow tainting the transition. It was out of concern for the perception of improper influence that the Committee acted unanimously to impose new regulations on what had been an entirely private, and heretofore, exempt source of funding. The 1988 act imposed three disclosure requirements and one contribution limitation on such transition funding, and, in doing so, closed the gap in disclosure between the end of the presidential election campaign and the beginning of the presidential administration:

The act requires the President-elect and the Vice President-elect to disclose to the Administrator all private money received for use in their preparation for the assumption of official duties, and requires the Administrator to make such disclosures public.

The act requires the President-elect and the Vice President-elect to disclose the names of all transition personnel, including their most recent employment and source of funding, thereby addressing "in-kind" support. The act also requires public disclosures of this information to be made before the initial transition team contacts a Federal department or agency.

The act requires the President-elect and Vice President-elect to provide an estimate to the Administrator of the aggregate value of in-kind contributions made between the election and inauguration, which were received for transition planning purposes for: (1) transportation; (2) hotel and other accommodations; (3) office space; and (4) furniture, furnishings, office machines and equipment, and office supplies. Requires the Administrator to make such information available to the public.

Finally, the act prohibits the President-elect and the Vice President-elect from accepting more than $5,000 from any person, organization, or other entity for transition purposes.

Under the act, the president- and vice-elect are required to disclose these contributions as a condition of accepting federal funding and support. Just as presidential candidates agree to contribution limits and disclosure in return for public financing, the President- and Vice-President-elect waive the traditional privacy protections given to 501(c)(3) tax exempt organizations in return for transition funding and the operating support of the General Services Administration.

I believe a similar spirit should prevail regarding contributions to the presidential library funds. If there is good reason to disclose and limit contributions to the presidential transition funds, surely there is equally compelling reason to disclose and limit contributions to the presidential library funds. In this regard, I do not believe H.R. 577 goes far enough in three respects:

First, I believe disclosure of contributions to the presidential library funds should be clearly linked to the provision of services by the National Archives and Records Administration. If presidents want their papers to be housed and maintained in their libraries, they must accept the limits on privacy for their donors. If the president rejects such limits, the National Archives and Records Administration could easily house the records here in Washington.

Second, I believe H.R. 577 should define the term "funds raised for the creation of a Presidential archival depository" more clearly to include pledges to be honored after an administration leaves office. As currently worded, the bill creates a substantial loophole that may encourage the very fundraising it seeks to limit. Indeed, pledges may create an even greater perception of conflicts of interest based on future behavior.

Third, I believe H.R. 577 should seek to limit contributions to the library funds of some amount not to exceed some reasonable amount such as $50,000. While acknowledging the difficulties of raising money for presidential libraries, and the need for large gifts to sustain such capital campaigns, the presence of huge gifts and pledges, no matter how well disclosed, will continue to create the appearance of potential quid pro quos.

Ultimately, the easiest way for Congress to completely eliminate the need for disclosure and limits on presidential library funds is to provide federal dollars for this purpose. It seems reasonable to suggest that the federal government has some interest in providing taxpayer funds for the express purpose of constructing safe repositories for presidential papers and associated mementos of an administration. The only caveat in doing so comes from the mercury-like behavior of contributions. Sooner or later, contributors will find a way to make their presence felt. The best Congress can do is to make sure that their presence is both revealed and limited. H.R. 577 and similar legislation in the Senate provide reasonable first steps toward this necessary disclosure.