California: Fundraising loophole aids Burton. State Sen. take route denied to Bustamante

San Jose Mercury News ^ | Dec. 28, 2003 | Barry Witt

[John Jorsett]

When a state judge found Lt. Gov. Cruz Bustamante's attempt to use a campaign fundraising loophole to be illegal, it all but ended Bustamante's hopes in the recall election.

Despite that ruling, state Senate President Pro Tem John Burton continues to use the same practice to raise money far in excess of voter-approved contribution limits.

Since the Sept. 22 ruling, the state's most powerful Democratic officeholder has collected 72 contributions -- totaling $710,000 -- that exceed the $3,200 contribution limit for state legislators in Proposition 34. If he had adhered to the limits, he could have collected only about a third of that amount from those donors.

Whether Burton, who can't run for re-election because of term limits and isn't currently a candidate for any office, will be able to keep the money is an open question.

[calcowgirl]

The FPPC plans next month to address the conflict between its own regulations and the judge's decision. Burton is the only legislator continuing to raise large sums of campaign cash through the loophole.

"It's certainly clear now the most reasonable interpretation of Proposition 34 is to prohibit candidates from raising any funds above the limit after the effective date," said Paul Ryan, project manager for the National Resource Center for State and Local Campaign Finance Reform. "It's unfortunate that as high a profile figure as Senator Burton would engage in fundraising above the limits, whether or not it's technically in violation of the law."

Under the logic of McMaster's ruling, Burton could be forced to return far more than what he's raised in the past three months. Proposition 34 went into effect for legislators on Jan. 1, 2001, and since that time, Burton has raised $10.7 million. Of that amount, $9.2 million came in amounts greater than $3,200 from 815 donors, according to a Mercury News analysis of contribution reports. If he was forced to take no more than the limit from each of those donors, he would have to forfeit $6.6 million.

"Unfortunate"... but not suprising of Burton.
Sure hope he has to pay it back.