California Elections : Gray Davis, Other Democrats Lead Fund-Raising Derby

Democratic Assemblyman Gray Davis continued to outpace Republican state Sen. William Campbell last summer in raising and spending money to capture the open state controller’s post, according to the latest campaign finance statements filed in Sacramento.

The story is much the same for the Democrats who are seeking to keep their positions as attorney general, secretary of state and treasurer.

The two main committees supporting Davis (D-Los Angeles) raised a total of $1.19 million--including $175,000 in loans--during the three months that ended Sept. 30. By comparison, the committee backing Campbell (R-Hacienda Heights) raised $665,202, including loans of $75,000.

The Davis organizations spent $631,555, while the Campbell group paid out $442,797. Both campaigns spent the bulk of their money on broadcast advertising. At the end of the reporting period, Davis was left with $868,444 in the bank and $617,500 in debts, while Campbell reported $174,578 in cash on hand and debts of $181,950. “Our budget (for the entire campaign) is $2.2 million,” said Noel Gould, Davis’ campaign manager. “Based on the contributions we’re receiving now, I expect to meet, or more likely, exceed it.” Since the latest reporting period ended, Gould said, the Davis campaign has raised an additional $500,000.

Meeting the Budget

Campbell campaign spokesman Roger Scott said, “I think we’ll meet our budget, which is around $1.5 million.”

A two-term legislator whose district includes Beverly Hills and parts of West Los Angeles and the San Fernando Valley, Davis received significant contributions from labor groups, developers, the entertainment industry and financial interests.

For example, he received $20,000 each from Gersten Cos., a Los Angeles-based corporation that builds and manages apartment buildings, and MFH Finance Co. of New York. Burbank-based Warner Bros. Inc. gave Davis’ committees a total of $25,000.

Campbell, who was first elected to the state Senate in 1976 after four terms in the Assembly, received much of his money from Republican fund-raisers, the oil industry and other businesses.

Victory ’86 Fund

More than $75,000 of the money Campbell raised came from Victory ‘86, a Republican political action committee based in Costa Mesa. The committee was formed by Campbell and the Republican candidates for lieutenant governor, secretary of state and attorney general.

Other contributions to Campbell included $25,000 from Atlantic Richfield Co.; $20,000 from National Medical Enterprises Inc. of Los Angeles, which owns hospitals; $15,000 from Chevron Corp. and $10,000 from Californians for a Better Business Climate.

Former Assemblywoman March Fong Eu, seeking her fourth term as secretary of state, raised $170,244 and spent $156,379 during the summer, leaving her with $381,695 in cash on hand. Eu listed dozens of donations under $100. Large contributions included $5,000 from Frederick W. Field of Los Angeles, whose family once owned the Chicago Sun-Times; $2,000 from Laborers for Equality and Progress, the political arm of the construction workers’ union, and $5,000 from Culver City contractor David M. Shaby.

Nestande Far Behind

Bruce Nestande, Eu’s Republican opponent, lagged far behind, raising only $76,364 between July 1 and Sept. 30, including $30,000 that Nestande personally loaned to his campaign. Also a former Assembly member and now an Orange County supervisor, Nestande reported that he spent $63,751 and had $10,231 in the bank and $36,000 in debts.

Ron Rogers, Nestande’s campaign manager, cited a stiff Orange County limit on campaign contributions and the general obscurity of the secretary of state’s position as reasons for Nestande’s inability to raise large sums of money. Nestande’s largest contribution was $34,370 from Victory ‘86, the Republican fund-raising committee.

Nestande also received a financial assist from the Sacramento campaign management firm of Russo Watts & Rollins, which forgave a $49,577 debt incurred during the spring primary. Rogers said the debt was dropped because Sal Russo and Doug Watts, partners in the firm, are Nestande’s longtime friends.

Democrat John Van de Kamp, running for his second term as attorney general, reported he had $706,110 in the bank after raising $329,334 and spending $116,574. His major contributions included $5,000 from Excel Mineral Co. Inc., makers of Johnny Cat cat litter; $5,000 from California Trial Lawyers; $3,000 from the California Labor Federation and $5,000 from Galpin Ford Inc. of Sepulveda.

The Republican candidate for attorney general, Bruce Gleason of Sherman Oaks, had only $464 left after raising $13,389 and spending $13,800 during the summer months. Altogether he has raised only $23,675 this year. Gleason’s largest contribution this reporting cycle was $4,980 from Victory ’86.

All five Republican candidates for constitutional office benefited from a statewide absentee ballot mailer paid for by the California Republican Party. The mailing to GOP voters contained an absentee ballot application and a brochure promoting party candidates. The cost of the mailer was listed as an in-kind contribution in the amount of $34,525 to each of the five Republican candidates for statewide office.

Veteran California politician Jesse Unruh is running for his fourth term as state treasurer without a Republican opponent. Unruh, who has $1,549,548 in the bank, raised only $6,500 during the summer and spent $77,859. His expenditures included a $25,000 donation to Assemblyman Louis J. Papan (D-Millbrae), who is a candidate for the state Senate.