Alarcon, Katz Rely on Non-Valley Donations

Engaged in one of the region’s toughest primary contests, Democrats Richard Alarcon and Richard Katz have received the vast bulk of their campaign dollars from sources outside the San Fernando Valley state Senate district they seek to represent.

Residents and businesses from the district, which stretches from Pacoima to Studio City to Northridge, contributed only 8% of the money raised by each camp.

Both have campaigned hard on the theme that they have local roots and are not beholden to outside interests. But considering the Valley as a whole, 85% of former state Assemblyman Katz’s money and 82% of City Councilman Alarcon’s comes from outside, a Times analysis shows.

*

Neither candidate was surprised by the findings. They noted that the district is home mostly to working-class residents and small businesses. “People in the 20th Senate District are not likely to write large checks,” said Alarcon, a council member for five years.

Katz said the analysis does not take into account that the many labor unions and business groups that have contributed are based elsewhere in the state but have members who live in the district.

Political observers say it is common for well-known elected officials to receive much of their money from outside their district because they have greater access than lesser-known candidates to political action committees and interest groups throughout the state.

In contrast, newcomers tend to raise about half their funds within their district, said Allan Hoffenblum, a veteran political consultant. “When you are a challenger, it’s hard to get political action committees and interest groups to support you,” he said.

The analysis also shows that Alarcon, whose past fund-raising for his City Council seat has been sharply restricted by local contribution limits, has raised individual donations that are on average twice as large as those received by Katz, a former party leader in the Assembly who has shown a prowess for fund-raising.

Alarcon’s contributions averaged $873 while Katz’s came in average increments of $480, according to the analysis of data on more than 500 contributions the candidates received through March 17.

Katz said the lower average for his contributions shows he is running a grass-roots campaign.

Alarcon responded: “People are simply willing to spend more for my candidacy.”

In the fund-raising period between July 1, 1997--when each campaign reported having begun raising money for this race--and March 17, 1998, Alarcon got 231 contributions totaling $201,761, according to records. During that period, Katz took in 300 donations totaling $144,237.

Katz also boosted his coffers by transferring $130,400 to his campaign from a 1996 Assembly campaign account that Katz and the Democratic Party used to help elect other Democrats to the Assembly. The account, which held as much as $2.8 million in 1996, included contributions from large corporations and political action committees. The 1996 money was not analyzed for this report.

The analysis showed that one-third of Alarcon’s money through March 17 came from transportation firms, developers and labor unions.

Katz got more than a third of his contributions from attorneys, the entertainment industry and transportation firms, according to the study.

It is not surprising that the transportation industry has contributed heavily to both camps. When Katz was in the Assembly, he headed the powerful Transportation Committee and sponsored several laws on highway safety and truck inspections. If elected to the state Senate, Katz is considered a top candidate to head its transportation panel.

Alarcon heads the City Council’s Transportation Committee and will retain that post if he loses the state Senate race. As head of the committee, he is in a position to influence franchise contracts with taxi firms and tow truck services in the city.

The transportation industry gave $28,248 to Alarcon and $12,000 to Katz, according to records.

Each candidate said that generosity is because each works well with the industry.

“They must be very pleased with my work on the Transportation Committee,” Alarcon said. “I think it’s a compliment to my work.”

One of the largest contributions to Alarcon--$10,000--came from Dean Nichols, manager of Chesapeake Leasing, one of the biggest taxi cab firms in Virginia. Nichols could not be reached for comment.

Alarcon said he is not sure why a taxi firm from Virginia would be one of his larger donors. “I really don’t know why they gave that kind of amount except that I think they support my efforts,” he said.

Alarcon also received $5,000 from Yellow Cab Co. of Northern Orange County, $2,500 from Los Angeles Checker Cab and $5,000 from Laidlaw Transit Services, which has three bus contracts with the city.

Steve Keiper, a vice president of Laidlaw, said the firm contributed to Alarcon’s campaign because it is impressed by his work in City Hall, not because Alarcon may vote on transit contracts in the future.

“Over the years, we have given support to a number of council people, and not for any particular reason,” he said.

Another large contribution to Alarcon--$5,000--came from William Burke, the co-founder and president of L.A. Marathon, which has a contract with the city to operate the race until 2005.

Burke said he contributed to Alarcon because he was impressed with his skill resolving a personnel dispute during a recent meeting of the South Coast Air Quality Management District. Both men are members of the board.

“I just was so impressed by his inordinate logic in a matter that was so inordinately complex,” Burke said.

Katz’s largest single donation--$10,000--came from the California Trucking Assn.

A spokesman for the association said the contribution is a show of appreciation for Katz’s Assembly work with the trucking association on safety issues.

“The trucking industry is a very complex industry,” said spokesman Beau Biller. “It takes years to educate an elected official on the issues involved.”

Attorneys and law firms also contributed heavily to Katz.

*

Christine Spagnoli and the Santa Monica-based firm of Greene, Broillet, Taylor, Wheeler & Panish, gave a total of $3,000 to Katz. Spagnoli said she has known Katz for years and contributed because she respects his abilities as a lawmaker.

She added that Katz formed strong relationships with many attorneys and law firms when he led the Democratic Party members in the Assembly in 1996. “I’m sure he has a lot of old relationships with attorneys who feel he is a very good legislator,” she said.

Contributions from the entertainment industry have accounted for 10% of Katz’s money so far.

Katz’ wife, Gini Barrett, is a former senior vice president of the Alliance of Motion Picture and Television Producers. Katz said he has many friends in the industry dating to 1985, when he was a member of the California Film Commission, which sought to keep filmmakers from leaving the state.

The primary election is June 2.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Campaign Finances

Alarcon

Money raised in the Valley: 18%

Money raised outside the Valley: 82%

Average contribution: $873

Total: $201,761

*

Katz

Money raised in the Valley: 15%

Money raised outside the Valley: 85%

Average contribution: $480

Total: $144,237

Source: Los Angeles Times computer-assisted analysis of data on more than 500 contributions reported by the candidates through March 17.