Rich Source of GOP Funds

To Republican politicians nationwide, Orange County’s image is of a sprawling money tree, sagging with riches to be spent on the Grand Old Party.

The image is no myth.

Orange County gives often and well to Republican candidates and their causes.

The county ranks among the top donors to federal candidates, outpacing such bastions of GOP big bucks as Nassau County, N.Y., and Oakland County, Mich., two areas that closely resemble Orange County in terms of wealth and Republican leanings.

At the state and local level, Orange County Republicans donate even more, powering the GOP drive to capture the state Legislature.

But the county’s biggest donors are no longer the land developers who controlled the local political finance game before California’s economic bust earlier in the decade.

The new big players are two ultraconservative Orange County businessmen drawn to politics by their religious beliefs: Howard Fieldstead Ahmanson Jr., the scion of a savings and loan fortune, and Sen. Rob Hurtt of Garden Grove, the Republican leader of the state Senate.

Hurtt, Ahmanson and a political action committee they co-founded with two other Southern California businessmen helped fund the campaigns of nearly two-thirds of the Republicans in the Assembly, and almost half of those in the Senate.

“The reason why we [Republicans] took over the Assembly was because of them,” said William Buck Johns III, a member of the conservative Lincoln Club, another top contributor to state and local campaigns.

During the first half of this decade, Ahmanson and Hurtt donated at least $7.1 million to local and state political causes. Their partners in what was originally called the Allied Business PAC--now known as the California Independent Business PAC--plowed another $1.4 million into state and local political campaigns over the same period.

In the pivotal months before the 1994 election, Hurtt and the PAC ranked second and third on the list of top 10 donors in the state, edging out such traditional givers as the insurance industry, doctors and trial lawyers. And they promise to remain at or near the top in 1996.

“Their influence on the Republican Party, I think, has been smashing,” said Jerry Sloan, president of Project Tocsin, a group that monitors the religious right. “They have literally taken over the party.”

Ruth Holton of California Common Cause said the contributions by Hurtt and Ahmanson reflect what is wrong with California’s political process. Currently, there are no limits to the amounts an individual or political action committee can contribute to candidates in California, one of only seven states that do not impose caps on campaign contributions.

But the days of limitless political philanthropy may be coming to an end in California.

Two citizen initiatives on the November ballot would impose campaign contribution caps of either $100 or $250 to candidates for state legislative office, and $200 or $500 to candidates for statewide office, such as governor. With these measures heading for a statewide vote, the Assembly recently approved its own measure, one that would impose a $1,000 limit on donations to legislative candidates.

Such restrictions are already in place at the federal level, where campaign contributions to any single candidate are capped at $1,000. But the federal restrictions haven’t dried up the flow of so-called “soft money,” which is given to the parties and passed on to candidates.

In spite of the federal restrictions, Orange County has proved a treasure trove for Republicans seeking federal office.

“What is undeniably true is that Orange County is among the best fund-raising locales in the country for Republicans,” said Dwight Morris, president of the Virginia-based Campaign Study Group, which analyzed Federal Election Commission reports for The Times.

From the beginning of 1991 to the end of 1995, Orange County residents donated $15.3 million to federal campaigns in contributions exceeding $200. Nearly two-thirds of that amount went to Republicans, according to FEC reports.

Because of Orange County’s wealth and its reputation for generous contributions to conservative campaigns and causes, GOP candidates from around the country have made it a regular stop on their fund-raising tours.

Newt Gingrich, for example, came prospecting in 1991 for money that he would later use to help win Republican control of the House. Former Marine Lt. Col. Oliver L. North and Utah Sen. Orrin Hatch tapped the county’s wealth for their Senate campaigns.

Former Tennessee Gov. Lamar Alexander, conservative commentator Patrick J. Buchanan, Texas Sen. Phil Gramm, Gov. Pete Wilson and presumptive GOP presidential nominee Bob Dole came to Orange County last year and raised a total of $652,381 for their presidential bids.

And just three weeks ago, Dole was back in Newport Beach so he could press the flesh with local party faithful who contributed $5,000 each for the honor of breakfasting with the candidate. The event brought in $105,000.

Ken Khachigian, a former Reagan speech writer who is California director of the Dole presidential campaign, said Orange County “is the equivalent of Los Angeles or San Francisco or Chicago or Manhattan in terms of people paying attention to it” as a source of campaign funds.

While most of this money goes from one Republican’s pocket to another’s, Orange County is not lacking for donors to Democratic candidates and causes. Indeed, among the top 20 Orange County contributors to federal campaigns from 1991 to 1995, Democrats outnumber Republicans.

Attorney Wylie A. Aitken, who chairs the Democratic Foundation of Orange County, said local Democrats are more inclined to give to federal rather than local election campaigns, because there are few opportunities for victory at the local level.

Last year, the Clinton-Gore ’96 Primary Committee raised $90,350 in Orange County, an amount that surprised even Aitken. Still, $90,350 for Clinton--compared to the $652,381 divided among the five Republican candidates who came calling--demonstrates the ability of Orange County to deposit money in GOP accounts.

But outsiders aren’t the main draw.

Morris, of the Campaign Study Group, noted that 17 of the top 25 GOP recipients of Orange County money are California-based candidates and party committees. Wilson’s brief flirtation with presidential politics yielded contributions totaling nearly twice what Dole raised last year in the county.

Candidates who raised the most money in Orange County were former U.S. Sen. John Seymour of Anaheim, Rep. Christopher Cox of Newport Beach, former U.S. Senate candidate Bruce Herschensohn and Rep. Ed Royce of Fullerton.

Another measure of the county’s financial muscle is the amount raised by local political action committees.

Irvine-based Fluor Corp., which has both government and private sector engineering and construction contracts worldwide, was not only the largest local PAC, but the third largest of all construction industry PACs across the country. It gave $634,550, with 61% going to Republicans.

Among individuals, real estate developer George Argyros has been the biggest local donor to federal campaigns, and among the most generous to state and local campaigns.

Almost single-handedly, Argyros has financed the campaigns to permit development of a commercial airport at El Toro Marine Corps Air Station, once it is closed by the military by 1999.

The question of the base’s future development--the single-largest land-use issue confronting Orange County--was taken to the voters in 1994 and again this year. Each time, the pro-airport campaign won a majority of votes. Each time, Argyros was the primary financial backer, spending a total of nearly $1.8 million to date, according to campaign finance reports on file at the county registrar of voters office.

Argyros steadfastly maintains he has not become involved for personal gain. Rather, he contends an international airport that can handle cargo flights, which are not allowed at John Wayne Airport, is vital to economic development.

“I think [an airport] is terribly important,” Argyros said. “It’s one of those things where you get involved, and before you know it, you’re there.”

At the state and local levels, there is no hiding the social conservatism that drives the money machine fueled by Ahmanson and Hurtt, the two top Orange County dispensers of contributions to state and local campaigns.

Ahmanson, a devout Christian and heir to a savings and loan fortune, and Hurtt, a Garden Grove manufacturer, made their presence felt in Sacramento in 1992 when they formed a PAC that pumped more than $1 million into state legislative races. Since then, their contributions and their power have grown.

Ahmanson has become a political icon, bestowing on his favorite conservative candidates and causes $3.7 million from 1991 to 1995. Hurtt now holds the highest-ranking Republican post in the state Senate. Hurtt gave $2.7 million through his Container Supply Co.

The PAC they co-founded with two other Southern California businessmen is one of the richest in the state, having spent nearly $1.8 million on local and state campaigns during the early 1990s.

While Ahmanson and Hurtt have eclipsed the campaign contributions of other local Republican donors, a third political player, Irvine Co. Chairman Donald L. Bren, remains an influential force because of his close, personal relationship to Wilson.

Bren’s personal contributions to Wilson--combined with the company’s financial commitment to the governor--have not only been at the state level, but also for Wilson’s brief presidential campaign earlier this year.

But where Bren and his Irvine Co. have been known to give money to candidates of both major parties, Hurtt and Ahmanson confine their giving exclusively to Republicans.

Both men are unflinching supporters of the so-called traditional values agenda, which seeks a ban on abortions, prayer in the classroom, and a greater reliance on private charities instead of government welfare programs. Both have strong ties to James C. Dobson, a psychologist-turned-evangelist, whose Colorado-based ministry is considered the wealthiest evangelical organization in the country.

Ahmanson is also the largest single donor to the Chalcedon Foundation, a small religious sect that advocates reconstructing society in accord with biblical tenets.

Ahmanson provided the seed money and later more than $700,000 in campaign cash for Proposition 174, the failed school voucher initiative. Other causes receiving money from Ahmanson were the Orange County Pro Life PAC, California Pro Life Council, Californians Against the Euthanasia Initiative, and the anti-affirmative action initiative that is on the November ballot.

Causes championed by Hurtt through his Container Supply Co. committee include the school voucher initiative, the California Gun Owners Assn., and Proposition 187, the anti-immigration measure.

Hurtt’s contributions to the PAC he formed with Ahmanson began to taper off when he was elected to the state Senate in 1993. Then last year, Hurtt dropped out altogether as a funding source for the PAC, using his money instead to promote Republican control of the Senate. Some believe he isn’t totally out of the picture in the PAC’s decision-making process.

“Hurtt is extraordinarily influential,” said Common Cause’s Holton. “I would have a hard time believing that he does not have influence on the contributions they make.”

As Hurtt’s public involvement with the PAC has begun to fade, Assembly Speaker Curt Pringle (R-Garden Grove) has taken a more active interest. According to Republican insiders, Pringle has forged a close working relationship with Ahmanson and his wife, Roberta.

The new alignment makes strategic sense. The California Independent Business PAC, which is what it began calling itself last year, will focus on Assembly races this fall, while Hurtt will concentrate on Senate campaigns.

A front-row witness to the PAC’s power was Assemblyman Brian Setencich (R-Fresno), a former pro basketball player whose largely unknown March primary opponent was bankrolled by the PAC.

“I figured they would come after me. I didn’t figure they would come after me that aggressively,” said Setencich, who was targeted because he sided with Assembly Democrats to become speaker for a few months last year. “It was not, ‘Vote for anything,’ it was, ‘Vote against Brian Setencich. He’s a bad, bad, bad person.’ ”

The media blitzkrieg financed by the PAC came just days before the election. “Every three minutes, I would see TV ads that would say, ‘Brian Setencich is a fool,’ ” he added.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Orange County: Giving Big to the GOP

Despite California’s economic downturn in the early 1990s, Orange County remained one of the best fund-raising areas for Republicans in the country. How Orange County’s 1991-95 donations to federal campaigns compared to other counties with similar median incomes and conservative voting patterns:

Orange County, Calif.

Per capita contributions: $6.50

To Republicans: $9,341,768 (60.9%)

To Democrats: $3,735,029 (24.3%)

To others: $2,255,286 (14.7%)

Population: 2.3 million

Median family income: $51,167

1992 presidential election vote:

George Bush: 44%

Bill Clinton: 32%

Ross Perot: 24%

****

Oakland County, Mich.

Per capita contributions: $5.90

To Republicans: $3,818,055 (58.7%)

To Democrats: $1,974,678 (30.3%)

To others: $706,774 (10.9%)

Population: 1.1 million

Median family income: $50,980

1992 presidential election vote:

George Bush: 44%

Bill Clinton: 39%

Ross Perot: 17%

****

Nassau County, N.Y.

Per capita contributions: $4.65

To Republicans: $2,984,656 (49.4%)

To Democrats: $2,095,598 (34.7%)

To others: $957,428 (15.8%)

Population: 1.3 million

Median family income: $60,619

1992 presidential election vote:

George Bush: 41%

Bill Clinton: 47%

Ross Perot: 13%

Note: Per capita contributions are by all residents to any federal campaign.

Sources: Federal Election Commission reports; U.S. Census; Times reports

Researched by Campaign Study Group / For The Times

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Contributions: State and Local

A look at the top O.C. donors and recipients of political money:

WHO’S WRITING THE CHECKS

A list of Orange County’s top contributors to state and local campaigns from 1991 to 1995 is no longer dominated by developers, who ruled the roost in earlier times. Instead, three of the top four donors were companies owned by religious conservatives and political action committees dedicated to funding the Christian conservative political agenda. (1)

DONOR:

1. Fieldstead & Co., philanthropic enterprise owned by S&L; heir Howard Fieldstead Ahmanson Jr.(2)

AMOUNT: $3,899,418

PARTY: Rep.

*

DONOR:

2. Allied Business/California Independent Business PAC, original PAC co-founded and supported by Ahmanson and Hurtt

AMOUNT: 3,434,210

PARTY: Rep.

*

DONOR:

3. Container Supply Co., Garden Grove firm owned by state Sen. Rob Hurtt

AMOUNT: 3,294,603

PARTY: Rep.

*

DONOR:

4. Irvine Co.

AMOUNT: 2,252,570

PARTY: Both

*

DONOR:

5. George Argyros, Arnel & Affiliates, real estate, investments (3)

AMOUNT: 1,131,895

PARTY: Rep.

*

DONOR:

6. Food 4 Less Supermarkets, operating group of Ron Burkle, who also owns Ralphs markets

AMOUNT: 1,092,263

PARTY: Both

*

DONOR:

7. Lincoln Club of Orange County, organization of conservative Republicans

AMOUNT: 1,067,448

PARTY: Rep.

*

DONOR:

8. Republican Central Committee of O.C.

AMOUNT: 853,439

PARTY: Rep.

*

DONOR:

9. PacifiCare Health Systems

AMOUNT: 708,284

PARTY: Both

*

DONOR:

10. Western Growers Assn.

AMOUNT: 620,851

PARTY: Both

*

DONOR:

11. Pacific Mutual Life Insurance Co.

AMOUNT: 371,305

PARTY: Both

*

DONOR:

12. FHP Inc.

AMOUNT: 360,767

PARTY: Both

*

DONOR:

13. Lane Sherman, Newport philanthropist, mother of State Board of Equalization Chairman Brad Sherman

AMOUNT: 294,585

PARTY: Dem.

*

DONOR:

14. Los Alamitos Racing

AMOUNT: 267,019

PARTY: Both

*

DONOR:

15. Dana Reed, Newport attorney

AMOUNT: 238,440

PARTY: Rep.

*

DONOR:

16. Mission Viejo Co.

AMOUNT: 219,496

PARTY: Both

*

DONOR:

17. American Restaurant Group, Velvet Turtle and National Sports Grill & Bar chains

AMOUNT: 210,000

PARTY: Rep.

*

DONOR:

18. Koll Co./Donald M. Koll

AMOUNT: 196,748

PARTY: Both

*

DONOR:

19. Gavin S. Herbert, Allergan Pharmaceuticals, Roger’s Gardens

AMOUNT: 160,465

PARTY: Rep.

*

DONOR:

20. Wylie A. Aitken, plaintiffs’ attorney

AMOUNT: 125,569

PARTY: Dem.

(1) Numbers may include expenses to maintain political contribution committees

(2) Includes contributions by Howard F. and Roberta G. Ahmanson

(3) Includes a $13,000 contribution in 1993 to then-Assembly Speaker Willie Brown, a Democrat

WHO’S CASHING THE CHECKS

Except for former Assembly Speaker Willie Brown and Board of Equalization member Brad Sherman, no Democratic candidates or political committees broke through the list of top 20 recipients of Orange County’s Republican money circles. State campaigns that raised the most money from Orange County’s major donors: (1)

Recipient:

1. Gov. Pete Wilson Committees

Amount:

$1,752,130

*

Recipient:

2. State Sen. Rob Hurtt (various committees)

Amount:

1,539,675

Recipient:

3. California Republican Party

Amount:

1,483,884

*

Recipient:

4. Assemblyman Jim Brulte (various committees)

Amount:

861,036

*

Recipient:

5. No on Prop. 167 (2)

Amount:

797,005

*

Recipient:

6. Maureen DiMarco for Superintendent of Public Instruction

Amount:

506,600

*

Recipient:

7. State Sen. Ray Haynes (various committees)

Amount:

535,521

*

Recipient:

8. Excellence Through Choice In Education (3)

Amount:

531,073

*

Recipient:

9. Assembly Speaker Willie Brown (various committees)

Amount:

384,156

*

Recipient:

10. State Sen. Cathie Wright (various committees)

Amount:

371,950

*

Recipient:

11. State Atty. Gen. Dan Lungren (various committees)

Amount:

337,028

*

Recipient:

12. State Assemblyman Phil Hawkins

Amount:

311,650

*

Recipient:

13. State Treasurer Matt Fong (various committees)

Amount:

294,345

*

Recipient:

14. Secretary of State Bill Jones (various committees)

Amount:

266,047

*

Recipient:

15. State Assemblyman Steve Baldwin

Amount:

264,475

*

Recipient:

16. State Assemblyman Jim Morrissey

Amount:

254,900

*

Recipient:

17. Dana Reed for state Senate

Amount:

248,640

*

Recipient:

18. Jo Ellen Allen for state Assembly

Amount:

220,708

*

Recipient:

19. Tom McClintock for Comptroller

Amount:

219,800

*

Recipient:

20. Brad Sherman (various committees)

Amount:

218,968

*

(1) Does not include contributions made by political action committees

(2) The unsuccessful “tax the rich” initiative in 1992, which sought to close major corporate loopholes in the state tax laws

(3) The failed school voucher initiative on the 1992 ballot

Source: Major donor reports and LegiTech

Researched by GEBE MARTINEZ / Los Angeles Times

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Contributions: National Politics

A look at the top Orange County donors and recipients of political money:

WHO’S WRITING THE CHECKS

Of the $15.3 million that left Orange County and went to campaigns for president and Congress from Jan. 1, 1991, to Dec. 31, 1995, Republicans gave more money than their Democratic counterparts by a 2-to-1 ratio. But Democrats outweigh Republicans at the top of the major donor list. These are the top 20 donors to federal campaigns from the beginning of 1991 to the close of 1995.

Donors

1. George and Judie A. Argyros, Arnel & Affiliates, real estate, investments

Amount: $224,500

Party: Rep.

****

Donors

2. Irvine Co., real estate development

Amount: $210,227

Party: Both

****

Donors

3. Robert E. and Elsa McDonough, RemedyTemp temporary services

Amount: $160,300

Party: Dem.

****

Donors

4. Food 4 Less Supermarkets

Amount: $152,886

Party: Dem.

****

Donors

5. Milan and Sally A. Panic, ICN Pharmaceuticals *

Amount: $152,319

Party: Dem.

****

Donors

6. FHP HealthCare

Amount: $122,500

Party: Both

****

Donors

7. Paul and Carol T. Goldenberg, retail television sales

Amount: $116,725

Party: Dem.

****

Donors

8. PacifiCare Health Systems

Amount: $88,971

Party: Both

****

Donors

9. Harold and Sandra Price, oil field servicing firm

Amount: $84,950

Party: Dem.

****

Donors

10. Howard F. and Roberta G. Ahmanson, philanthropy and religious causes

Amount: $82,750

Party: Rep.

****

Donors

11. Gavin S. and Ninetta K. Herbert, Allergan Pharmaceuticals, Roger’s Gardens **

Amount: $81,637

Party: Rep.

****

Donors

12. Edward T. and Regina V. McGrath, Home Savings of America

Amount: $79,750

Party: Dem.

****

Donors

13. Robert J. and LaDorna Eichenberg, local manufacturer

Amount: $77,550

Party: Rep.

****

Donors

14. Michael Fedderson

Amount: $77,000

Party: Dem.

****

Donors

15. Robinson and Phillips, plaintiffs’ attorneys ***

Amount: $75,000

Party: Dem.

****

Donors

16. American Restaurant Group, Velvet Turtle and National Sports Grill & Bar chains

Amount: $75,000

Party: Rep.

****

Donors

17. John C. and Donna S. Crean, mobile homes

Amount: $62,800

Party: Rep.

****

Donors

18. Jaguar Golf Mfg. Corp.

Amount: $61,000

Party: Rep.

****

Donors

19. Peter M. and Gail J. Ochs, Fieldstone Co.

Amount: $59,250

Party: Rep.

****

Donors

20. Mary Newman, arts patron

Amount: $56,750

Party: Dem.

* Includes contributions by ICN Pharmaceuticals

** Includes contributions by Allergan

*** Includes contributions by Mark P. Robinson

****

WHO’S CASHING THE CHECKS

National Republican and Democratic party committees and candidates from outside California have successfully raised money in Orange County. But the pattern of campaign donations suggests local contributors like to keep their money close to home. For example, Gov. Pete Wilson’s brief presidential campaign raised almost twice as much Orange County money last year as Sen. Bob Dole’s. The following federal campaign committees were the biggest recipients of the $11.2 million in campaign funds from Orange County from Jan. 1, 1991 to Dec. 31, 1995: *

Recipient

1. National Republican Senatorial Committee

Amount: $757,195

****

Recipient

2. U.S. Sen. John Seymour Committee

Amount: $598,849

****

Recipient

3. Republican National Committee

Amount: $557,985

****

Recipient

4. Christopher Cox Congressional Committee

Amount: $503,692

****

Recipient

5. Bruce Herschensohn for U.S. Senate

Amount: $391,919

****

Recipient

6. Ed Royce Campaign Committee

Amount: $347,700

****

Recipient

7. Pete Wilson for President committees

Amount: $299,030

****

Recipient

8. California Republican Party

Amount: $272,104

****

Recipient

9. Democratic Senatorial Campaign Committee

Amount: $287,278

****

Recipient

10. Democratic National Committee

Amount: $280,450

****

Recipient

11. National Republican Congressional Committee

Amount: $250,541

****

Recipient

12. Bush-Quayle Campaign committees

Amount: $247,767

****

Recipient

13. Republican Central Committee of Orange County

Amount: $243,376

****

Recipient

14. Dianne Feinstein for Senate committees

Amount: $235,000

****

Recipient

15. Clinton-Gore Campaign committees

Amount: $201,610

****

Recipient

16. Tom Campbell for U.S. Senate and Congress

Amount: $199,603

****

Recipient

17. Phil Gramm for President

Amount: $177,219

****

Recipient

18. Democratic State Central Comm. of Calif.**

Amount: $162,552

****

Recipient

19. Bob Dole for President Inc.

Amount: $155,472

****

Recipient

20. Comm. to Re-elect Cong. Dana Rohrabacher

Amount: $143,465

* An additional $1.8 million went to “soft money” accounts that go toward political party-building efforts and not directly to support candidates. Also, $2.2 million was donated through local political action committees.

** Federal account

Source: Federal Election Commission reports

Researched by Campaign Study Group / For The Times