Some Finally Follow the Money : State watchdog agency sniffs out some funny business in Anaheim

The state Fair Political Practices Commission’s fine in a campaign contribution case in Anaheim is very encouraging, coming at a time when the public increasingly is fed up with the influence of money in politics.

The case, involving an Orange County developer, also illustrates the need to watch for end runs. California has a political reform act in place, but vigilance is required. While there was no question of spending limits being exceeded, this case did raise an important issue--the public’s right to know who really gives the money in the political system.

The FPPC fined Anaheim-based Arnold Construction $10,000 for not disclosing the source of campaign contributions. It determined that the company funneled $2,880 to candidates at various levels through what the commission calls “laundering.” The company gave the money through employees whom it later reimbursed--a process characterized euphemistically by the developer as “an administrative misapplication.”

The total amount was not a lot, and was spread to a number of campaigns, including those of Gov. Pete Wilson and Assemblyman Mike Gotch (D-San Diego). But such contributions can make a difference at the local level. For example, the $1,000 that went to Anaheim City Councilman Irv Pickler was significant because it was spent on a very close race. Anaheim, which has been awash in money from developers for years, is merely one example of what goes on in many other places. By the way, that city eventually passed a campaign spending limit that went into effect well after these particular violations. The impetus came largely from developers who saw campaign finance reform as a cost-containment measure. They were disgusted by how much they felt they had to donate to candidates. Wherever this game goes on it is suspect. It may be that big contributors enlist employees because their company is already over the limit in a jurisdiction where a campaign spending ceiling is in place. Or they may not want it known where the campaign money is really coming from.

Of course, candidates like the governor cannot be expected to know the source of every contribution. But their campaigns can help enormously by providing accurate records of who gives them money. And then the public must rely on attentive citizen watchdog groups to comb the lists and ask questions about who really gives the money in particular races.

In this case, it all came together, with the FPPC doing a laudable job of following up.