Prop. 208’s Donation Limits Confound Candidates

As if running for office weren’t complicated enough, a new headache is looming for local folks eyeing races next year for county supervisor, city council, school district and other seats.

The problem stems from the passage of Proposition 208, a measure voters approved in November that placed limits for the first time on how much contributors can give to state candidates. For statewide races, the fund-raising season began June 2. For local races, the fund-raising season opens Dec. 1.

The measure grandfathered a hodgepodge of local contribution-limit laws, as long as the restrictions were approved by a vote of the people. And that’s where things have gotten tricky, as the state Fair Political Practices Commission tries to weigh local ordinances that often conflict with the statewide law.

In Orange County, the cities of Santa Ana and Irvine and the county itself have voter-approved local campaign contribution limits higher than Proposition 208’s, which will remain in effect. Orange and Anaheim had council-approved limits replaced by the limitations of Proposition 208. All other cities went from no contribution limits at all to a labyrinth of rules and regulations that has even veterans stumped.

The confusion has hampered some candidates eager to plan fund-raisers but fearful of running afoul of the law.

“It’s very confusing to a lot of us,” said Orange City Councilman Mike Spurgeon, elected to the council in 1990. “Right now, there’s mass confusion on the part of the little guy. There are more questions than anyone has answers for. My advice is to get a professional treasurer or forget it.”

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Anaheim Mayor Tom Daly, eyeing a race for county supervisor, said he’s very aware of the pitfalls of Proposition 208. He’s just not sure what they are.

“I’m still trying to figure out what’s permissible,” he said. “But everyone else in the state of California is trying to figure it out too.”

County government watchdog Shirley Grindle, a backer of Proposition 208 and co-author of the county’s contribution ordinance, said she has been flying to Sacramento on her own time to help the commission sort things out. She has found herself the only person in the room who isn’t a lobbyist or a political attorney.

“Things are getting so complicated, I’m afraid they’re going to have to build a new prison for all of the felons they’re going to create,” she joked. “We’re in a transition period and it’s rough no matter which side of the fence you’re on.”

She’s unhappy that the commission is mixing some elements of Proposition 208 into existing ordinances, resulting in higher limits than local voters intended.

Under Proposition 208, candidates for local office can raise $250 per person per race. It doubles to $500 if the candidate agrees to abide by voluntary spending limits. Political parties and so-called small-contributor committees can give more.

But the voluntary spending limit is one problem that Grindle has red-flagged to the FPPC. The commission ruled that, if local limits aren’t adopted separately, the limit automatically becomes $1 for every resident. Political parties are allowed to give, for example, up to 25% of that amount for each race.

In Orange County, with 2.7 million people, that means combined contributions from political parties could be $675,000 per race. In a city like Anaheim, for example, with 300,000 people, parties combined could give up to $75,000 per race.

Another problem, Grindle said: An FPPC interpretation of Santa Ana’s $1,000 limit means small-contributor committees--like labor unions--can give $2,000 per candidate per election, doubling the limit that local voters passed.

Professional campaign treasurer Jane Willett of Corona del Mar said she has begun calling the FPPC for “even the most stupid questions” because interpretations change daily about what can be raised.

And the concerns aren’t confined to mere amounts, she said. One portion of the new law requires treasurers who have received checks exceeding the contribution limit to hold onto them for 45 days to determine if the donor wants the surplus amount applied to a future contribution period.

“To have a check hanging around, you’re asking for trouble,” Willett said. “You’re asking to either lose it or have it be misreported.”

FPPC spokesman Gary Huckaby said the agency is swamped with calls from every corner of the state.

Complicating the advice are two lawsuits against Proposition 208, filed by the Republican and Democratic parties, which the state Supreme Court has said it will hear before the end of the year.

Potential candidates wondering how to start planning their races are encouraged to get copies of the FPPC’s interpretation of the proposition, Huckaby said, as well as advice letters dealing with local ordinances.

Those documents are available by fax by calling (888) 622-1151, or they can be downloaded from the FPPC’s Web page at www.fppc.ca.gov/fppc/.