New Jersey Gubernatorial Primary Sets Record for Campaign Spending
The recent New Jersey gubernatorial primary has become the most costly election in the state’s history, with spending exceeding $122 million. Notably, $67.6 million of this total was attributed to super PACs rather than the candidates’ campaigns. This marks a significant increase compared to the previous record of $42 million in super PAC spending during the entire 2021 election year.
This election exemplifies the growing influence of groups capable of raising and spending unlimited funds, a trend enabled by the Supreme Court’s 2010 Citizens United decision. The ruling has led to increased spending by wealthy entities in federal elections, a trend now evident in state races.
Super PACs can collect unlimited donations due to their legal independence from campaigns, which are restricted to a $5,800 contribution limit in the primary. Despite this, campaigns often provide guidance to supportive super PACs through shared media and strategy memos, as seen in the campaigns of Democratic nominee Mikie Sherrill and others did.
Mikie Sherrill benefited from $3.8 million in support from One Giant Leap PAC, with significant contributions including $900,000 from a PAC backed by the Laborers International Union, $250,000 from DoorDash, and $200,000 from tech entrepreneur Reid Hoffman, residing in Washington State.
Republican nominee Jack Ciattarelli received $1.3 million in assistance from Kitchen Table Conservatives, which obtained $500,000 from an Uber Technologies-funded group, $100,000 from investor Alan Fournier, and $90,000 from Garden State Success. Notably, Garden State Success, funded by Campaign for Great Public Schools, also donated $160,000 to One Giant Leap.
Further illustrating candidates’ reliance on supportive super PACs, Sherrill transferred $127,500 from her congressional campaign to One Giant Leap. In comparison, Rep. Josh Gottheimer’s congressional campaign contributed $11.7 million to a supportive super PAC, Affordable New Jersey. This strategy allows candidates to bypass laws restricting direct monetary transfers from federal to state committees.
The primary included a unique example of campaign outsourcing to a super PAC, as seen with New Jersey Education Association union president Sean Spiller. Despite raising under half a million dollars directly, his union funded a super PAC with over $37 million for his unsuccessful campaign.
The election also highlighted a trend of national interests disguising their spending via local-sounding groups, potentially misleading voters through political ad disclaimers. Uber, based in California, established Fair & Affordable New Jersey, funding it with $3.7 million, contributing $500,000 to Kitchen Table Conservatives in support of Ciattarelli, and $1 million to Workers for a Better New Jersey for Democrat Steve Fulop. The Democratic Governors Association also created Greater Garden State with $100,000.
New Jersey’s candidates’ reliance on super PACs is particularly notable given the state’s public funding for gubernatorial candidates. This program matches donations 2-to-1 and caps spending at $8.7 million for the primary. However, since the match applies to all donations, it doesn’t incentivize pursuing smaller contributions, potentially encouraging outside funding due to spending caps enacted pre-Citizens United.
Alternative public financing systems, such as New York State’s, focus on small donations from constituents, providing a greater match ratio, thereby encouraging candidates to prioritize grassroots fundraising. New Jersey might consider revising its system to eliminate spending caps and restrict collaboration with super PACs, following New York City’s recent actions did.
When New Jersey’s public funding program was enacted in 1974, Gov. Brendan Byrne said it would “remove from the office of the Governor the evil of the large, private contributions.” This year’s election suggests significant updates are necessary.
