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Grading State Disclosure 2008 offers a clear contrast to the findings presented in Grading State Disclosure 2003 in both the quality and quantity of states’ programs for filing campaign finances electronically. In 2003, there were 35 states with electronic filing programs as compared to 42 today, including Kansas and Montana, which implemented new programs in 2008. Twenty-four states earned grades in the A range in 2008, up from just eight in 2003.

The higher performance in the electronic filing category stems from more states making electronic filing mandatory for at least some candidates. In 2003, just twelve states required both statewide and legislative candidates to file electronically; today, 24 states have mandatory programs for all statewide and legislative candidates, including South Carolina, which began its mandatory electronic filing program for legislative candidates since the last assessment. Further, four states have passed laws to implement or expand mandatory electronic filing over the next several years (Alaska in 2009; and Iowa, Louisiana, and Wyoming in 2010).

• States with the strongest electronic filing programs, all receiving an A+ and tied for first place in this category, are: Arizona; Colorado; Florida; Georgia; Hawaii; Illinois; Maryland; Massachusetts; Michigan; Missouri; New York; Ohio; Oregon; Rhode Island; South Carolina; Texas; and Washington.

• States with no electronic filing (all tied for the last place rank) are: Alabama; Idaho; Mississippi; Nebraska; North Dakota; South Dakota; Vermont; and Wyoming.

• 42 states have an electronic filing program for candidate campaign finance reports;
• 30 states have a mandatory electronic filing requirement;
• 24 of these states require electronic filing by candidates for both statewide and legislative office;
• 6 states require electronic filing for statewide candidates only;
• 12 states have voluntary electronic filing for statewide and legislative candidates;
• 39 states reported having adequate funds to administer their electronic filing program and 3 reported inadequate funding; and
• 8 states have no electronic filing program.

• 1 state added a mandatory electronic filing program for legislative candidates (South Carolina);
• 2 states added voluntary electronic filing programs (Kansas and Montana);
• 1 state passed legislation to require legislative candidates to file electronically beginning in 2010 (Louisiana); and
• 1 state passed legislation to require both statewide and legislative candidates to file electronically beginning in 2010 (Wyoming).

Types of Electronic Filing Programs

Mandatory electronic filing programs offer the public the best access to campaign finance data by ensuring greater numbers of candidates’ filings are easily and quickly posted online. States vary in terms of which candidates are required to file electronically, with 30 states requiring at least some candidates to do so. Most states’ electronic filing mandates are triggered when candidates reach a certain fundraising or spending threshold, with the threshold amount ranging from zero (Hawaii) to $250,000 (Connecticut). The average threshold for statewide candidates is approximately $20,000, while legislative thresholds are closer to $10,000 nationally on average.

While mandatory filing requirements are the ideal, and weighted heavily in this study, twelve states currently maintain electronic filing programs that are voluntary for candidates. It is important to note that these states, while receiving Fs in this category, are outperforming and rank higher than those states with no electronic filing program. Because electronic filing offers an easy and accurate way of complying with disclosure requirements, it is becoming more popular with candidates. Disclosure agencies continue to report increased use of voluntary programs, with participation rates for statewide candidates reported at 54 percent and 43 percent for legislative candidates, up from 25 percent and 27 percent in 2005, respectively.

Eight states do not currently have an electronic filing program for candidates. Wyoming’s new mandatory program is scheduled to be online in 2010. Idaho, Mississippi, Nebraska, and Vermont reportedly have programs in development while Alabama, North Dakota, and South Dakota have not reported any progress.

Electronic Filing Programs in the States
Mandatory: Statewide & Legislative Candidates		Mandatory:Statewide Candidates	Voluntary:All Candidates	No E-filing
24 States:		6 States:	12 States:	8 States:
Arizona	New Jersey	Connecticut	Alaska	Alabama
California	New Mexico	Indiana	Arkansas	Idaho
Colorado	New York	Louisiana	Delaware	Mississippi
Florida	Ohio	North Carolina	Iowa	North Dakota
Georgia	Oklahoma	Virginia	Kansas	Nebraska
Hawaii	Oregon	West Virginia	Kentucky	South Dakota
Illinois	Rhode Island		Minnesota	Vermont
Maine	South Carolina		Montana	Wyoming
Maryland	Tennessee		Nevada
Massachusetts	Texas		New Hampshire
Michigan	Wisconsin		Pennsylvania
Missouri	Washington		Utah
State has adopted or expanded mandatory electronic filing to begin after 2008    State has reported plans for an electronic filing program

Electronic Filing Methods

States offer electronic filing programs through the use of software, web-based systems, or both. Currently, all state electronic filing programs are operated at no charge to candidates, with 34 states operating web-based programs, 15 providing software, and seven offering both options. Thirty-three states have developed a standard filing format (technical specifications) for filers, ensuring that electronically-filed reports are compatible with the disclosure agency’s computer system and software, regardless of the filing method or software used. All 42 states with an electronic filing program offer training (such as classroom sessions and help desks) to assist electronic filers.

Funding and Support for Electronic Filing Programs

Adequate funding is a critical component of successful electronic filing programs; in addition to the resources necessary to establish a new program, disclosure agencies also need funding for hardware and software maintenance and upgrades, and to provide support and training to candidates. Most states recognize the need to continue to provide a stable funding stream that anticipates both program growth and the need to stay technologically current. The Grading State Disclosure 2008 survey showed that of the 42 states currently operating electronic filing programs, 39 (93 percent) reported having adequate funding for their existing electronic filing programs (Alaska, California, and North Carolina did not). However, the study also found that money is a barrier keeping 15 states from expanding or improving their existing programs.

The Grading State Disclosure 2008 survey also inquired about the level of technical support available to state disclosure agencies, as well as whether that support comes from “in house” or outside staff. Ninety-five percent of state disclosure agencies reported having access to “adequate” or “strong” technical support, up from 83 percent in 2007, with 73 percent reporting strong support. Of the states reporting strong technical support, 83 percent received either all or a portion of their technical support from within their own agency or department.