Prop. 208 Deadline Fueled a Frenzy in Fund-Raising

Candidates in state races collected a record $155 million in the 22 months leading up to the election last Nov. 5--but it was on election day that voters gave them a reason to really get serious about campaign fund-raising.

According to new official figures released Wednesday, they raced to cash in before newly passed Proposition 208 slapped on severe campaign finance restrictions. In fact, state candidates amassed contributions at the rate of $235,000 a day until time ran out Dec. 31.

“A historic orgy of fund-raising,” said Jim Knox, executive director of California Common Cause, when told of the totals.

But the good news is, “we don’t expect to see anything like it ever again,” Knox said.

Proposition 208 places limits on donations and offers advantages to politicians who agree to voluntary spending limits.

By a solid margin, voters approved the measure in the November election, but made it effective only at of the beginning of this year, thus prompting future candidates into the mad dash for funds to beat the deadline.

In that eight-week period--the last gasp in a 20-year stretch of virtually unrestricted campaign financing at the state level--legislative and statewide office candidates collected more than $13 million, said Secretary of State Bill Jones, who released the spending report.

“With this rush for cash before the implementation of Proposition 208, we once again are shown the powerful position money plays in today’s political process,” Jones said.

Of the $155-million total flowing to state candidates during the entire 1995-96 campaign period, most was collected by those in legislative races. Elections took place for all 80 Assembly seats, as they do every two years, and for half the 40 seats in the state Senate.

But even for incumbents in statewide offices, for whom 1996 was not an election year, contributions totaled more than $24.5 million, according to Jones’ reports.

The figure in that case represented only that collected by incumbents, not their challengers, and that is only through 1996. New totals are due out this week showing contributions and spending to date by all prospective candidates for statewide office including governor and lieutenant governor.

Through 1996, the top contributions went to a politician who was not running that year, state Senate leader Bill Lockyer (D-Hayward). Lockyer drew in more than $4 million to spread around to fellow Senate Democrats who did run, allowing the party to maintain control of the upper house, the secretary of state’s report showed.

In contrast, Sen. Rob Hurtt of Garden Grove, who led the fundraising efforts for Senate Republicans, received $1.5 million in contributions.

Ironically, among Senate candidates last year, the two leaders in attracting contributions both lost their races. Former Assemblyman Rusty Areias collected $1.79 million and lost to Republican Bruce McPherson, who collected $1.5 million, in the race for a San Jose-area Senate seat.

Democrat Jeff Smith, who lost to former Assemblyman Richard Rainey in the race for an east San Francisco Bay Area Senate seat, raised $1.76 million to Rainey’s $1.3 million.

In the Assembly, where Democrats regained control, outgoing Democratic leader Richard Katz of Sylmar drew $2 million in contributions, which he spent on campaigns of new and incumbent fellow Democratic members.

In terms of leadership fund-raising, Katz’s total, and the $2.2 million collected by Democrat Cruz Bustamante of Fresno, who would become Assembly speaker, combined to exceed the $3.6 million raised by then Speaker Curt Pringle (R-Garden Grove), although his total was the most by a single Assembly member.