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Gallegly, Opponent Rely on Big Money : Politics: PACs and major donors play important roles in financing the campaigns of the congressman and challenger Anita Perez Ferguson, a new study says.

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TIMES STAFF WRITER

Elton Gallegly and Anita Perez Ferguson have little in common politically.

Gallegly, a conservative Republican congressman from Simi Valley, and Perez Ferguson, an Oxnard Democrat who is a liberal on most issues, offer voters a wide choice in the race for the congressional seat representing most of Ventura County.

For the record:

12:00 a.m. July 8, 1992 For the Record
Los Angeles Times Wednesday July 8, 1992 Ventura County Edition Metro Part B Page 4 Column 4 Zones Desk 2 inches; 58 words Type of Material: Correction
Erroneous report--A national study on congressional campaign financing cited in an article Sunday reported that Rep. Anthony C. Beilenson (D-Los Angeles) received nearly a fifth of his contributions in 1989-90 from lawyers and lobbyists. After questions raised by Beilenson, Larry Makinson, author of the study by the Center for Responsive Politics, conceded that Beilenson received no money from lobbyists.

Still, the politically disparate candidates do have a common denominator: Both rely heavily on big-money contributors to finance their campaigns.

Gallegly’s contribution profile was contained in a new analysis published last week by the Center for Responsive Politics in Washington, D.C., a nonpartisan, nonprofit research group.

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According to the analysis, about 26% of the $600,000 in campaign cash collected by three-term Congressman Gallegly in 1989-90 was generated by special-interest political action committees; and 49% came from major donors, defined by the center as those who contributed $200 or more to his campaign.

The center’s study scrutinizes the 1989-90 fund-raising period only for incumbent lawmakers and not the challengers. Campaign expenditure reports for the 1992 primary, filed by Gallegly and Perez Ferguson, were used by The Times to update the study.

Gallegly’s fund raising for this election generally reflects the pattern in the study. Although his PAC contributions were down--13% of the about $91,000 that he collected in 1992--his individual major donors rose sharply over the level of two years ago, generating 64% of his campaign funds.

Perez Ferguson also relied heavily on PAC and major donor cash to fund her successful primary victory over rival Democratic contender Kevin Sweeney.

According to her expenditure reports through mid-May, PACs contributed 60% of the about $65,000 in campaign cash that she received through mid-May; and major donors, who contributed $200 or more, generated 21% of the money.

Under federal law, PACs cannot contribute more than $5,000 per election; individuals are limited to $1,000 per election; and major individual contributions of $200 or more must be reported by name.

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The Center for Responsive Politics, founded in 1983, studies the role of money in American politics. Its new publication, “Open Secrets,” analyzes computer data generated by the Federal Election Commission to provide a detailed profile of contributions for all 535 members of Congress.

The 1,500-page study underscores the extent to which the American political system is dominated by major contributors such as special-interest PACs and big-ticket individual donors, defined as people who give $200 or more to candidates.

Some political strategists, such as Sam Rodriguez, who manages Perez Ferguson’s campaign, argue that contributions in the $200 to $500 range do not necessarily represent big-ticket cash.

“That is not the standard,” he said. “Major donors are considered to be individuals who contribute $500 to $1,000.”

But Ellen Miller, executive director of the Center for Responsive Politics, said people who contribute $200 or more are the “people who have a stake in the outcome.

“Special interest money does not just come in the form of PAC money, it comes in the form of large individual contributions.”

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Gallegly is expected to have far more campaign cash than Perez Ferguson to spend in his reelection effort--somewhere in the $400,000 to $500,000 range. But Miller said it is nevertheless equitable to compare both candidates’ reliance on big money.

“It’s fair,” Miller said, because it shows “a political system dominated by big givers. So it fractures the political process in favor of people who have that kind of money to give and creates two levels of constituents--the cash constituents and the people who can’t pay to play.”

Gallegly’s contribution profile showed that financial, insurance and real estate companies were by far his biggest donors two years ago, contributing about 17% of his campaign cash.

Gallegly sits on the House Foreign Affairs and the House Interior and Insular Affairs committees. Miller said an analysis of his contributions showed that about 7% of his 1990 campaign cash came from sources that had an interest in issues pending before the Interior Committee.

In Foreign Affairs-related contributions, computer data showed an $8,600 contribution to Gallegly from a pro-Israel PAC and others with Israeli ties in the 1989-90 period.

Perez Ferguson political manager Rodriguez forecast that Gallegly will outspend his candidate by at least a 2-to-1 margin. So, he said, “we essentially have to out-campaign him and take it right to the voters.

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“Our grass-roots operation is one of the best in California. Gallegly will be on the airwaves. We’ll be on the ground.”

However, a Republican Party strategist, who requested anonymity, speculated that Gallegly’s campaign till may not brim with dollars to spend on his reelection effort.

“Gallegly may have trouble raising money because no one will believe he is being seriously challenged by this Latino woman,” the strategist said.

Meanwhile, Gallegly campaign adviser Ben Key said his candidate will take a back seat to no one when it comes to grass-roots campaigning.

“No one will out-organize Gallegly at the grass-roots level,” he said. “We have hundreds of volunteers.”

The Washington, D.C., research center also examined the campaign finances of two other congressmen who have represented portions of Ventura County or are campaigning to do so.

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Rep. Anthony C. Beilenson (D-Los Angeles), seeking reelection in a new congressional district covering the Thousand Oaks area of Ventura County, is one of a few members of the House who eschews PAC cash, according to the center. Instead, in 1989-90, Beilenson garnered about 17% ($39,550) of the money that he raised from lobbyists and lawyers, the study showed.

Rep. Robert J. Lagomarsino (R-Ventura), defeated this year in the Republican primary in a new district covering Santa Barbara and San Luis Obispo counties, had more than 57% of his 1989-90 campaign receipts generated by PACs and major contributors, according to the study. Financial, insurance, real estate and agriculture interests accounted for about 19% of the $644,000 he raised during 1989-90.

Elton Gallegly’s Campaign Dollars

Source of funds in 1990 election Individuals, over $200 ($294,068): 49% PACs ($153,565): 26% Individuals, under $200 ($117,362): 20% Other ($34,459): 5%

Source of PAC money by sector Business ($141,365): 92% Ideology / single issue ($9,850): 6% Labor ($2,600): 2% Source: Center for Responsive Politics

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