CA: Record campaign spending predicted in 2006, despite new limits

AP on Bakersfield Californian ^ | 3/7/06 | Michael R. Blood - ap

[NormsRevenge]

With new restrictions on political giving, this was supposed to be a challenging year for candidates to round up cash in the race for governor.

But with the contest barely under way, some experts already predict that the 2006 campaign will set a record for statewide political spending.

Even with first-time caps on donations, the combined $130 million spent by then-Gov. Gray Davis and other candidates for governor in 2002 is almost certain to be eclipsed. Davis' campaign spent a state record $78 million that year, and some say that figure might be toppled, too.

"All the factors, all the indicators, look to me like they are pointing toward record spending," said Garry South, chief strategist for state Controller Steve Westly, a Democrat seeking to challenge Republican Gov. Arnold Schwarzenegger.

"It's just never been proven you can reduce the amount of money that flows into politics, no matter how hard you try," South said.

For the first time this year, candidates for governor must live within the strictures of Proposition 34, which was enacted by voters in 2000. Individuals and political committees can give a candidate for governor a maximum of $22,300 for the June primary election and an equal amount for the November election - or $44,600 for the year.

But that's only a starting point.

State political parties are allowed to make unlimited donations to gubernatorial campaigns, meaning they will play a more prominent role in fundraising.

Each of the major candidates for governor - Schwarzenegger, Westly and state Treasurer Phil Angelides, another Democrat - is a millionaire and can use unlimited amounts of personal money in their respective campaigns. The actor-turned-governor has spent more than $25 million of his fortune on his political ventures over the years, as has Westly, a former executive for online auction house eBay.

"The spirit of Proposition 34 was to get more people involved in elections, but obviously multiple millionaires have their own rules," said Bob Mulholland, a senior adviser to Angelides.

In addition, outside groups, such as labor unions, can spend millions of dollars on so-called independent expenditures that can benefit a candidate.

Schwarzenegger, for example, is asking donors to a March 20 fundraiser to pay as much as $100,000 for a ticket package, an amount that at first glance appears more than four times the $22,300 individual limit for one election.

How is that possible?

Of that amount, the governor's campaign committee will take a cut - $44,600 - or the maximum individual donation for the June primary and November general elections. The remaining money goes to the state Republican Party.

The party can use up to $27,900 of that amount for "direct candidate support," such as financing political mailings or running phone banks to help elect Schwarzenegger. The remaining $27,500 can be used for other party expenses - anything from paying rent to registering voters.

But it doesn't stop there.

The Schwarzenegger invitation also notes that spouses and adult children are welcome to kick in. They "may each give $44,600 by separate check" signed by the spouse or adult child, or credit card, the invitation points out.

A report this month in Capitol Weekly, a political newsletter published in Sacramento, noted that families have been kicking in large sums to all three candidates. In one instance, a high school-age daughter of a major Schwarzenegger donor kicked in the maximum donation, $44,600. The campaign noted the check came from an adult, and that the governor welcomes supporters from all backgrounds.

The donations are legal.

Proposition 34 "is almost worthless as a reform in terms of contribution limits," said Robert Stern, president of the Center for Governmental Studies, a Los Angeles research group that studies campaign finance. "There's no doubt in my mind it's going to be a record" for spending in 2006.

Stern noted that the new contribution limit for governor - $44,600 for the year - is more than 10 times the amount permitted for individual donations to a congressional candidate.

In addition, Stern said, "We have wealthy people running this time, and there is no limit what they can put into the race."

The governor's campaign did not immediately respond to an inquiry regarding fundraising and spending in the 2006 campaign.

New limits in legislative races in recent years showcased how state parties moved into a new role, raising money and funneling it into tight races. It is a pattern that is likely to be repeated in the governor's race.

One of the first items on Westly's official Web site is a solicitation to contribute to his campaign. On his site, Angelides assures donors that "every contribution you make will help Phil Angelides bring fairness, responsibility and opportunity back to California."

Another route for money to flow into the campaign, at least indirectly, is political committees that support or oppose ballot proposals. Those committees can take unlimited donations.

Critics of Proposition 34 call it a flawed law. The state had no limits on contributions when the measure was adopted. But good-government groups accused the lawmakers at the time of putting it on the ballot for one reason - to block the potential for another, stronger, limit on donations.

"The donor who wants to find a way to spend money will do it," said Theis Finlev of Common Cause, the advocacy group that opposed the proposition.

[calcowgirl]

It's gonna be a long 9 months.