Collins Redux : Brown Accuses Hayes Aide of Conflict

B.T. Collins, a colorful fixture in the Administration of Edmund G. Brown Jr., was thrust into the middle of the campaign for state treasurer Friday when Democrat Kathleen Brown, the former governor’s sister, sharply criticized him for raising money and doing political chores for incumbent Thomas W. Hayes.

Brown accused Collins, Hayes’ chief deputy, of a conflict of interest for sending out campaign fund-raising solicitations to Wall Street investment bankers and brokerages when his job in the treasurer’s office gave him influence over state business conducted with those firms.

Hayes, during a debate broadcast live in Los Angeles by Century Cable Television, strongly denied any impropriety and called Brown’s attack a cheap shot.

The exchange, the strongest yet in the increasingly contentious campaign for treasurer, was taped for broadcast later on other cable stations. The debate, sponsored by the League of Women Voters, marked the second time Hayes and Brown have appeared face-to-face.

On another issue, Hayes and Brown expressed clearly drawn differences over the level of the state’s bonded indebtedness. The Democratic challenger indicated she would follow a much more aggressive course in issuing bonds than the one taken by the Republican incumbent.

That dispute stems from the steadily growing backlog of voter-approved bonds for school and prison construction, earthquake safety, water cleanup and other projects. With voters approving $5 billion in new bonds during the June primary, the backlog now stands at about $12 billion. And voters are being asked to pass another $5.7 billion in bond proposals in the Nov. 6 general election.

Hayes, during the debate, said he was selling bonds as fast as he legally can and still keep the state on sound financial footing. To go any faster, he said, could lead to “financial disaster.”

Despite the go-slow approach, Hayes, appointed by Gov. George Deukmejian to fill the unexpired term of the late Jesse M. Unruh, said, “I’ve sold more bonds in two years than my predecessor sold in 10 years.” He said he believes the state can only digest about $3 billion worth of the $5.7 billion in bonds on the November ballot.

Brown, on the other hand, said one of her top priorities would be to clear the backlog. She disagreed with Hayes on the $3-billion cap, saying the state faces massive problems, such as crowding in schools, unaffordable housing, and air and water pollution. She argued that bonds are a good way to raise money to resolve the various problems.

In drawing Collins into the debate, Brown said Hayes’ chief of staff “has been not only campaigning up and down the state giving political speeches for you but he has in addition been doing political fund raising for you.” She also said her campaign staff had used public records to determine that at least 150 telephone calls had been made from Hayes’ state office to political consulting firms and campaign finance officials.

After the debate, a Brown aide distributed a letter signed by Collins that describes Brown as “an ambitious lawyer” and appeals for a $1,000 contribution on the argument that “Tom will need to raise $1 million in order to compete financially” with the Democrat. Brown did not identify the person who received the letter, identifying the individual only as “a person who does business with the state.”

Collins, who attended the debate, said he never made fund-raising solicitations on state time. “These letters are sent out by the campaign. Everything is done on an off-duty basis,” said Collins, one of the best-known political figures in the Capitol, who first received widespread attention as the combative director of the California Conservation Corps and then served as Jerry Brown’s chief of staff. Severely wounded in the Vietnam War, Collins also is active in veterans affairs.

Collins said that months ago he deposited $500 in personal funds with the treasurer’s office “just in case I screwed up and made a personal phone call.” He said that Hayes had installed a private phone line in his office for campaign-related calls. Collins also said that while he took checks for the Hayes campaign, “They are mailed to my house. I don’t think you are supposed to collect checks in a state building.”

Hayes vigorously defended his aide. He said fund raising, if not done on state time, is entirely legal. “He is a private citizen in his off-time. He has a right to do that,” Hayes said. Hayes explained that the phone calls from his office to political consultants were all related to efforts by his staff to track him down when he was outside the office conducting political business.

Brown said: “I’m just asking Tom Hayes to move him over to the political side. Put him on the campaign payroll.”