As newly elected University of Nebraska Regent Dave Hergert is investigated for possible campaign violations, lawmakers discussed a measure Thursday aimed at strengthening the state's campaign spending law.

Hergert is being investigated for allegedly failing to report how much he spent on his campaign in a timely fashion, costing his opponent, former Regent Don Blank of McCook, an opportunity to collect thousands of dollars in matching state funds.

The Government, Military and Veterans Affairs Committee discussed a bill (LB188) by Sen. Chris Beutler of Lincoln that would tighten the Nebraska Campaign Finance Limitation Act.

"The people most likely to violate this law are people who have plenty of money," Beutler said.

The 1992 law was created to help level the playing field in campaigns.

Under the law, candidates for state offices have voluntary spending caps. For regents races, the cap is $25,000 for the primary and $50,000 overall.

Those who agree to abide by the limits qualify for public funds if their opponent exceeds the cap.

Hergert did not agree to the cap and spent $65,000 in last year's primary, thus qualifying Blank for $40,000 in public funds.

Hergert then estimated that he would spend $40,000 for the general election.

Hergert said that his campaign — as required by law — mailed notice to the Accountability and Disclosure Commission on Oct. 29 indicating that he had spent more than $16,000 — 40 percent of his estimate.

But the commission never got the letter, thus depriving Blank of another $15,000 in matching funds in the closing days of the campaign.

Hergert, who sent what he said was a copy of the letter to the commission after the election, did not immediately return a call to his office Thursday.

Hergert spent much of his money on advertising that attacked Blank.

"It was hammered home so heavily that I suspect that even my wife started believing it," Blank told the committee. "If this is the way campaigns have to be run, then I'm glad I'm at the twilight of my political career."

There also are questions about loans to Hergert's campaign.

The law says candidates cannot borrow money exceeding 50 percent of the total contributions they have received at any given time.

Hergert's campaign statement, which covered the period from Sept. 29 to Oct. 18, showed net receipts of $74,000.

But in reports of late contributions, Hergert reported loans from Valley Bank & Trust totaling $49,000 — about 65 percent of his total receipts.

Earlier this month, Hergert reported spending nearly $90,000 on the general election — nearly twice his estimate.

The law requires that candidates hold their actual spending to within 5 percent of their estimates. Any candidate who "willfully, knowingly, or intentionally" underestimates the actual spending by 5 percent or more can be fined up to $1,000 and can be charged with a misdemeanor.

But under present law, a candidate can simply give a pie-in-the-sky spending estimate with no intention of ever spending that much — thus blocking any matching funds from being released.

Beutler wants to tweak the law to allow the matching funds to be released once the non-abiding candidate reaches the spending cap.

Nebraska Legislature

Accountability and Disclosure Commission

University of Nebraska System