An
alternative way to distribute public funding is the matching funds system in
which the government matches all or part of the funds raised privately by
electoral contestants. New York City has adopted such a system called “New York
City’s multiple match public financing system”. New York City provides public
money to candidates (capped at 55% of the maximum amount that a participating
candidate is allowed to spend) in exchange for the candidate’s acceptance of expenditure
limits and enhanced disclosure. This system supercharges small contributions by
matching up only the first $175 of each eligible contribution - even if
candidates can receive contributions larger than $175 - at a six-to-one ratio.[1]
Before becoming eligible to receive matching funds, participating candidates
must first meet a “qualifying threshold” by gathering contributions from a certain
number of constituents depending on the type of election (mayor, comptroller or
city council). This system creates an incentive for candidates to rely on small
donors.
[1] Thus, for a contribution amounting to $50, the match
amount will be $300 and the overall value of the contribution will be $350.
