Valley Candidates Lead U.S. in Using Own Cash to Run

Foreshadowing campaign spending sprees that could reach into the millions of dollars, two San Fernando Valley congressional candidates are leading the nation in lending personal cash to their races, federal elections records show.

Doug Kahn, a Democrat who is seeking the seat occupied by retiring Rep. Carlos J. Moorhead (R-Glendale), has put $400,000 into his campaign, more than any other challenger in the United States, according to reports filed with the Federal Elections Commission.

Brad Sherman, a Democrat pursuing the seat held by retiring Rep. Anthony C. Beilenson (D-Woodland Hills)--also ranked among the nation’s top campaign self-financers by infusing his own coffers with $275,000 in 1995.

Kahn, a wealthy businessman from Altadena, lent his campaign a total of $700,000 in 1995, records show, but he returned $300,000 to himself after deciding that he did not need to spend so much so early.

Kahn bankrolled unsuccessful campaigns against Moorhead in 1992 and 1994, losing 50% to 39% in his first try and 53% to 42% two years later. With Moorhead stepping aside after more than two decades in office, Kahn sees this year’s 27th Congressional District race as a golden opportunity--and he is laying out more money than ever before, according to his aides. But he must first get past Democratic challenger Barry Gordon in next month’s primary. Gordon raised $77,500 last year, of which just $1,250 came from personal funds.

Gordon is a former president of the Screen Actors Guild and has extensive contacts in the entertainment industry that could bring him more cash. Already, actors Kevin Costner and Ed Begley Jr. have written $500 checks to Gordon’s campaign fund.

Gordon suggested that his rival, Kahn, is spending such large sums to make up for deficiencies in his campaign.

“It takes money to run a campaign but it takes more than money to win an election,” Gordon said. “It takes a message and a track record.”

Whoever wins the Democratic nomination to replace Moorhead will face state Assembly Majority Leader James Rogan (R-Glendale) in November. The former judge reported $65,104 in contributions at the end of 1995, records show, with no funds coming from the candidate himself. But his contacts among conservative groups will likely boost his war chest significantly as the general election nears.

Kahn is the great-nephew of billionaire philanthropist Walter H. Annenberg and is worth somewhere between $2 million and $4.6 million--which campaign manager Ted Toppin calls “family money that has been passed through the generations.”

Kahn closed his typesetting company last February, donating the equipment to Pasadena High School, and is looking for new business ventures, Toppin said. On the ballot, Kahn will be listed as an “independent businessperson.”

Kahn’s $400,000 loan dwarfs the $53,230 that he raised from individuals and political action committees last year. Such self-financing raises concerns among watchdog groups, who fear that campaigning is becoming a hobby of the well-to-do.

“It is a joke to believe that anyone of modest means can successfully run for office today,” said Ellen Miller, director of the Center for Responsive Politics. “They can either tin-cup their way to election--and become beholden to the wealthy givers--or marry an heir or an heiress.”

Kahn, however, believes the personal funds allow him to spend more time reaching voters and less raising funds.

“He’s not trying to buy anything,” said Toppin. “The money allows him to tell voters that he wants to improve education, protect [reproductive] choice and preserve Medicare. . . . Steve Forbes proves you can’t buy an election.”

Forbes, the publishing magnate, has poured $25 million of his own funds into his presidential bid, yet is a laggard within the Republican field. He finished a disappointing fourth in the GOP primary in New Hampshire, but recovered enough to take first place in Delaware, where he was the only candidate to campaign.

In the race to represent Glendale, Burbank, Pasadena and Sunland-Tujunga, Kahn will not donate any more personal funds to his campaign for the March 26 primary, aides say. It remains an open question, however, whether more money will be doled out should he reach the general election.

Following close behind Kahn in personal contributions last year was Sherman, who is seeking to represent the 24th Congressional District--which stretches from Sherman Oaks to Malibu and includes Thousand Oaks in Ventura County. Sherman has put up $275,000 of his own money so far, ranking fifth nationwide. In comparison, he raised just over $12,000 from other contributors, according to year-end election reports.

A member of the state Board of Equalization and an accountant and attorney, Sherman said he financed his race for the tax board in 1990 by cashing out all his real estate investments and lending the money to his campaign. After he won, he was paid back most of the money in subsequent years.

Sherman is confident that the same process will unfold with his congressional bid. And he is prepared to kick in even more money should he reach the general election.

“Before I ask anyone to help me accomplish a project, I should do everything I can--and I have,” said Sherman. “It shows my supporters that I am not only serious, but committed.”

Although he is spending freely from his own pocketbook, Sherman said he supports limits on self-financing.

“I think it is impossible for the average middle-class person with no substantial wealth to run for a high office,” he said. “On the other hand, you take a look at city council races, and it’s possible.”

Rich Sybert, the leading GOP candidate for Beilenson’s post, borrowed significant sums from his savings two years ago to try to unseat Beilenson. This time, however, Sybert’s campaign will rely less on his personal assets.

“At this point, with fund-raising going as well as it is, it does not look like it’s going to be necessary” to tap into personal funds, said Sybert’s campaign manager, John Thees.

Sybert raised $112,000 last year, some of it going to help retire debts from the 1994 campaign, which hover around $500,000. Sybert’s latest reports list no additional infusions of personal money.

Other California candidates who dipped heavily into their own savings, according to the Roll Call newspaper, were psychiatrist Irwin Savodnik, a Republican who is spending $386,700 of personal money in his race against Rep. Jane Harman (D-Rolling Hills); and Michela Alioto, who put up $100,000 of her own funds in her challenge to Rep. Frank Riggs (R-Ukiah).

Though election laws restrict contributors from giving more than $1,000 to any one candidate, candidates themselves can pour as much as they want into their own efforts.

In all, 11 House challengers across the country spent $100,000 or more from their own bank accounts in 1995, federal election records show. There were 81 candidates who contributed at least $10,000 to their congressional bids, according to FEC documents.