During 1996, the Federal Election Commission encountered a number of challenges in its effort to administer and enforce the federal election laws. Against a backdrop of unprecedented campaign activity, Congress budgeted less money for the FEC than the agency had requested, the President left vacant one seat on the Commission and the courts rejected several FEC regulations and challenged the application of other provisions. The smaller budget required staffing reductions, curtailed the Commission's enforcement capacity and delayed the review of campaign finance reports. The vacant seat on the Commission meant that a near-unanimous decision (4 out of 5 votes) was required for every agency action. The court decisions led to increased election-related spending by corporations and unions, and--for the first time--permitted party committees to make unlimited independent expenditures.
The workings of the Presidential Election Campaign Fund presented yet another challenge to the agency. For the first time in the program's 20-year history, a temporary funding shortfall resulted in partial payments to primary election candidates. The shortfall affected payments during the first five months of the year; subsequent tax checkoff receipts and repayments from previous elections closed the gap. In another first for the public funding program, Reform Party nominee Ross Perot qualified for a $29 million general election grant, based on his vote percentage in the 1992 Presidential election.
Despite these challenges, the Commission successfully administered the election law. The agency streamlined many operations by completing, in 1996, the conversion from a terminal-based computer system to a PC-based system. Further, the Commission was ready at year's end to implement a new voluntary electronic filing program mandated by Congress. The Commission also improved its customer service by doubling the capacity of its automated flashfax system, expanding its digital imaging system for viewing reports filed by House candidates, PACs and party committees and by launching its own home page on the worldwide web. Both the flashfax system and the web site offered customers direct access to a wealth of FEC information, including campaign finance data on candidates and committees, publications and press releases. Underlying all these endeavors was the agency's ongoing audit and enforcement program. The FEC completed audits on 24 committees and brought 204 enforcement matters to conclusion.
The material that follows details the Commission's 1996 activities.