Fund Raising by Politicians Is Boosted by 6-Month Year

How long is a year?

Well, according to the state Fair Political Practices Commission, it’s six months--at least in one particular case.

In a decision that will help many political candidates raise large amounts of money, the commission has ruled that the annual campaign contribution limits of Proposition 73 will initially apply only to a six-month period.

The agency, which oversees implementation of the campaign finance initiative, decreed that the current fiscal year began Jan. 1 and will end 181 days later on June 30. The emergency regulation issued last week means that candidates will have one extra shot at raising money from donors who otherwise would have already reached their legal contribution limits during the second half of 1988.

In the future, the panel ruled, fiscal years will each last 12 months.

‘Just Not Giving’

The commission’s action was prompted by an outcry from politicians of both parties who complained that they were unable to raise money during the first six months of this year because their regular donors were afraid of violating the new law.

“People are just not giving,” said Joseph Remcho, an attorney who is representing Assembly Speaker Willie Brown (D-San Francisco) and Senate President Pro Tem David A. Roberti (D-Los Angeles) in a lawsuit challenging the initiative. “Giving had really dried up until that regulation passed.”

Voters approved Proposition 73 last June in a bid to curb campaign fund raising, which has skyrocketed in recent years. Among its provisions, the law limits political donations in state and local races to $1,000 per fiscal year from individuals and up to $5,000 per fiscal year from political committees.

Under the proposition, fiscal years begin July 1 and end June 30. But at the same time, the measure’s contribution limits took effect on Jan. 1 of this year. The disparity between the dates left open the question of how the law applied to campaign donations made during the final six months of 1988.

Initially, the Fair Political Practices Commission ruled that candidates could spend any money received before Jan. 1 on future elections provided the donations were collected in accordance with the contribution limits of Proposition 73.

But in February, a Los Angeles Superior Court judge disagreed with the commission, ruling that the initiative did prohibit carrying over any money that was raised before Jan. 1 when the limits took effect.

The commission, which has appealed the judge’s ruling, decided to clarify the situation by declaring the first fiscal year covered by Proposition 73 to be only six months long.

“They painted themselves to a certain extent into a corner, and this was the only logical way out,” said Assemblyman Ross Johnson (R-La Habra), the author of Proposition 73 who has battled with the commission over how it should be implemented. “I think that some of the earlier decisions led inexorably to this current decision.”

John McLean, a spokesman for the commission, said the agency had received a flood of complaints from candidates who were hampered in their fund-raising efforts.

Difficult Dilemma

“It was everybody,” he said. “We’re talking legislators, local candidates--mostly incumbents.”

McLean said the commission was searching for a way out of a difficult dilemma. Some politicians, acting on the commission’s earlier rulings and the advice of the agency staff, had raised money last fall with the understanding they would be able to spend it in future elections, he said.

“The commission had a call to make about which interpretation made the most sense,” he said. “They thought this interpretation made the most sense.”

But Walter Zelman, a lobbyist for Common Cause, said the panel has chosen a solution that will favor incumbents who--unlike most challengers--are geared up to raise money now for elections that will not take place until next year.

“This six months is a one-time boost to fund raising,” Zelman said. “They chose the route that obviously is going to enable people to raise more money.”