Fund-Raising Rose 38% in Final ‘Binge’

In an apparent final feeding frenzy before new restrictions on campaign money took effect, legislative candidates collected an unprecedented $121.7 million for last year’s elections, 38% more than the prior record, Common Cause reported Tuesday.

Even in a 20-year era of virtually unrestrained fund-raising that has regularly set new records, the Common Cause report said the unrestricted fund-raising “binge” of the 1995-96 election cycle was “extraordinary.”

“This is exactly what voters wanted to put an end to when they overwhelmingly approved Proposition 208,” said Common Cause Executive Director Jim Knox, referring to the political reform initiative approved in November.

The average cost of an Assembly race soared to $864,665 during the 1995-96 election cycle, up from $599,631 in 1993-94, while the cost of a typical Senate race rose to $1.7 million from $1.4 million, according to the report, written by Common Cause researcher Brian Tanner.

The report also noted that Senate leader Bill Lockyer (D-Hayward) has surpassed legendary former Assembly Speaker Willie Brown as what Knox called the “king of fund-raising.” Lockyer collected a record $7.1 million to be distributed to Democratic candidates for the 1996 elections, compared with Brown’s record of $6.8 million in 1994.

And, in what the report termed a “striking” development, the national Democratic and Republican parties also poured money into California legislative elections. The Democratic National Committee and its affiliates sent $9.6 million to Assembly and state Senate campaigns while the GOP and its “Unity Project” spent $7 million.

Looking at contributions from all sources, Democrats in the Senate narrowly out-raised Republicans during the last election cycle--$17.3 million to $16.1 million. In the Assembly, Republicans out-raised Democrats $35.8 million to $33.2 million.

The report covers the last election cycle before the enactment of Proposition 208, which was aimed at diluting the influence of big money on elections. Among other things, the initiative imposed limits on contributions and prohibited transfers of money among candidates and from legislative leaders to other candidates.

As usual, incumbents were the main beneficiaries of big money. Incumbents out-raised their challengers in all but two races in the last election, usually by a ratio of 5 to 1, the report noted. In nine out of 10 contests, the best-financed candidate won. Overall, 58 out of 60 incumbents in last year’s elections were reelected.

“We saw the same familiar patterns worsen in this election cycle,” Knox told a news conference.

Proposition 208, which Common Cause sponsored along with the League of Women Voters and the American Assn. of Retired People, is under attack in federal court. Opponents, including the state Republican and Democratic parties, some labor unions and an anti-abortion organization, claim the initiative is a violation of the constitutional rights to free speech and political association.

Knox, however, voiced confidence that the initiative would be upheld in court and would fundamentally change campaign financing in the state.

“I expect to be here in two years releasing a very different kind of study,” Knox said.

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Legislative Funds

Record contributions in 1995-96 further a trend in fund-raising for California legislative races. In 1976, contributions totaled $16 million--13% of last year’s $121.7 million. The only year in the last 20 that an increase did not occur was 1990, when fund-raising limits imposed by Proposition 73 were in effect. Here are the amounts in millions: