Although  campaign finance laws limit the amount an individual can donate to a particular  candidate, a California  Watch Investigation shows that several influential party donors, on both  sides of the aisle, are dodging the rules by funneling money through local  party committees.  County parties, in  many hotly contested races, have become middlemen in money laundering schemes,  acting as distribution centers for big donors that have exceeded their  contribution limits to individual campaigns.

Because local  committees also have contribution limits, donors send large sums of money to  county committees across the state, in turn, directing the committees to donate  the money to their candidate.  Often  times, the candidate's district is hundreds of miles away from the county of the  committee that is directly funding the campaign.

“In one case, a single donor gave more than $300,000 in one day to 10 Democratic county  committees from Humboldt to San Diego counties. Those committees proceeded to  make large contributions to high-profile Democratic Assembly and Senate races  at different times in the days leading up to the election.”

“In another  case, a Modesto assemblyman made contributions to two Republican committees, which quickly  turned around and contributed large amounts to the assemblyman's brother, who was  campaigning for a seat in a nearby district.”

When races are  tight, party central committees can funnel big donations quickly, evading  finance laws intended to level the playing field.  While individual donors are limited to $3,900  in legislative races, party committees in California’s 58 counties can receive  up to $32,400 from donors to distribute to campaigns of the “committee’s”  choice anywhere in the country.

“In coastal Mendocino County the local Democratic central committee  raised $235,000 in October 2008 alone – mostly from unions, insurers and  professional groups based in places like Sacramento, Los Angeles and even  Washington, D.C.”

“The party then  moved $200,000 into the campaign of San Diego Assemblyman Marty Block and  $107,000 to the state election campaign of Assemblywoman Joan Buchanan,  D-Alamo.”

“Republican  committees have employed the same strategy. In the last month before the 2008  election, the Riverside County Republican Central Committee gave $285,600  to candidates after receiving more than $200,000 in contributions that month  alone.”

This is testament  to why we need real campaign finance reform.   Should we get rid of regulations altogether?  Should we increase regulations on party  committees?  Should we cap total campaign  expenditures or go to a public finance system?   The answer is unclear, but one this is certain, the debate needs to  begin.