April 10, 1997

Putting Campaign Spending into Context .

Dole and Clinton Campaigns Spent $232 Million. The Washington Post reported on March 31 that the Dole campaign and the Clinton campaign spent a combined total of $232 million in the 1996 presidential election. The Campaign Study Group, using reports filed with the Federal Election Commission, compiled the numbers for the Post.

Where the Money Came From. Of the money raised, 65 percent came from the public coffers, 27 percent from individual contributions and PACs, and 8 percent from political parties.

Where the Money Went. Of the money spent, 49 percent went for advertising, 26 percent for overhead, 15 percent for other campaign activity, 8 percent for fundraising, and 2 percent for polling.

Putting $232 Million into Context. While presidential election campaigns are essential civic exercises that come around only once every four years, that $232 million is still less than one dollar for each American. We can put this $232 million into context by seeing what else Americans have used $232 million for in just the past few years. For example, the vast and varied American economy has seen the following:

• The Olympic stadium in Atlanta cost $232 million. It is now home to the Braves.
• The Federal Government is building a complex in Research Triangle Park, North Carolina for $232 million to house employees of the Environmental Protection Agency.
• In just the first half of 1996, the video-games industry sold $232 million worth of 16-bit games, including Super Nintendo and Sega Genesis. (Total video-game market sales for just the first half of 1996 equaled $524 million.)
• Over the past five years, the insurance holding company Conseco has paid its chief executive officer a total of $232 million (a million less than Disney paid Michael Eisner).
• For its fiscal year ending in 1996, the National Collegiate Athletic Association (NCAA) had total revenues of $232 million.
• In 1996, the Philip Morris Company spent $232 million advertising cigarettes.
• The hospital at the University of Colorado has an annual budget of $232 million.
• Barefoot Inc., the nation's second largest lawn-care service company (with 4 percent of the market), was purchased by TruGreen-Chemlawn for $232 million.