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Posted on Fri, Mar. 04, 2005 | |
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Governor hits the money trail TIMES SACRAMENTO BUREAU SACRAMENTO - Starting with a visit to his annual bodybuilding extravaganza this weekend, Gov. Arnold Schwarzenegger will begin a presidential-style fund-raising sweep for his re-election committee, including swanky events in Cincinnati, New York and Washington, D.C. At the luncheons and dinners, representatives of banking, pharmaceutical and other business groups with a stake in California policy debates will pay thousands to dine next to, and have photos snapped with, the Republican governor. The tour comes as Schwarzenegger pushes a historic multimillion-dollar initiative campaign against what he calls "special interests." And it comes before Schwarzenegger has announced if he'll run again in 2006. He'll spend much of this weekend in Columbus, Ohio, at the Arnold Fitness Weekend, his annual festival of fitness, supplements and buff-dom.
The governor will swing down to Cincinnati today as the star attraction of a fund-raiser hosted by Carl Linder, whose family runs American Financial Group and the Cincinnati Reds baseball team. Then it's off to New York on Monday for a fund-raising dinner hosted at the 21 Club by Gov. George Pataki. Then on to Washington on Tuesday, where one of the event hosts will be prominent GOP lobbyist Ron Kaufman, whose drug-company clients have a keen interest in California's pitched battle over spiraling drug costs. Thus far, Schwarzenegger's administration has sided squarely with big drug companies. Even as he raises millions for his initiative push and his re-election, Schwarzenegger takes great glee in criticizing politicians who are beholden to contributors. At the same time, his prolific fund raising has outpaced that of Democratic predecessor Gray Davis, who was recalled, in part, due to perceptions that his policy stances were for sale. Critics contend Schwarzenegger does much the same -- and gets away with it. They've posted invitations to several of the governor's fund-raisers online (www.arnoldwatch.org). California law allows politicians to talk to donors about their issues so long as they do not swap donations for decisions. The governor says he does not do the bidding of donors. "We make it very clear we raise money. It's all disclosed," said Rob Stutzman, Schwarzenegger's communications director. "The people of California understand the governor can't be bought. The governor needs to raise roughly $50 million this year to beat back the special interests." Kaufman, the Washington lobbyist, says much the same. He's a senior partner at the Dutko Group, whose firm represents some 200 clients, including the Pharmaceutical Research and Manufacturers of America, a big player in the prescription drug debates. Recommended donation levels for the luncheon at Washington's St. Regis Hotel -- billed as a "business roundtable luncheon" -- range from $5,000 to $22,300. The biggest donors get to sit at Schwarzenegger's table and take photos with him, according to Roll Call's "Heard on the Hill" column. In an interview, Kaufman stressed that his firm only represents PhRMA on federal issues, not California ones. Merrill Jacobs, who represents PhRMA in Sacramento, said the group does not donate to California candidates.
Kaufman said people attending the event are drawn by Schwarzenegger's "star quality." Donations raised will be reported "fairly, quickly and accurately. That's the best campaign finance reform ever." Events like the Washington fund-raiser look bad, said Larry Noble, executive director of the nonpartisan Center for Responsive Politics in Washington, D.C. "This is the way many politicians work," Noble said. "They raise money from industries they have helped and will help in the future. What makes this most notable is it's being done at the same time Arnold Schwarzenegger denies that he's doing it." Drug companies have much to gain or lose with Schwarzenegger. After vetoing measures that would have allowed importing cheaper medicine from Canada, he is backing the industry's favored alternative, -- a bill this year that calls for voluntary discounts. There are also voluntary and importation measures vying for space on a special election ballot. If the governor weighs in, he could buoy them to passage or doom them. Pharmaceutical companies have given more than $300,000 to Schwarzenegger committees. "The governor's office is for sale," said Jerry Flanagan, of the liberal-leaning Foundation For Taxpayer and Consumer Rights and of ArnoldWatch.org. "It's not rocket science to see that big contributions equal favorable policy." After leaving Washington, Schwarzenegger will look for cash in-state again mid-month. He's slated to attend a Palm Desert cocktail reception hosted by Williams-Sonoma chairman Howard Lester. He'll stop by the Century Plaza Hotel in Los Angeles on March 19 -- where a contribution of $89,200 or more will allow donors to sit at the head table with the governor and receive three photos with him (but please, only "2 people per photo," the invitation notes). Because the maximum allowable contribution to candidate-controlled committees is $22,300, the invitation helpfully outlines how two adults can each give the maximum amount to two committees controlled by the governor to reach $89,200.
"There's a whole lot of fund raising going on -- that's a fair statement," said Schwarzenegger fund-raiser Marty Wilson. Even though Schwarzenegger ran as a campaign finance reformer, "to do the kind of historic reform that he wants to do, he's got to take his message to the people. The most effective way to do it is through paid media. We can only rev that Hummer up so many days to reach the people we need to reach." |
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