Davis Leads Lungren in Funding; Cash Gushes in Other Races

Heading into the final four weeks of the campaign, Democratic gubernatorial hopeful Gray Davis had about twice as much cash on hand as Republican rival Dan Lungren, their latest campaign finance statements show.

State Atty. Gen. Lungren had $4.8 million in the bank, compared to Lt. Gov. Davis’ $8.2 million, according to the reports, issued this week for the period of July 1 to Sept 30.

The gap, which could be a significant advantage for the Democrat in the final blitz of television advertising, exists despite $1.6 million poured into Lungren’s campaign by the national Republican Party during the last two months. In contrast, Davis has received a modest $300,000 from national Democratic Party committees.

Altogether, Davis has raised $21.1 million this year, compared to Lungren’s $17.7 million. Dave Puglia, Lungren’s spokesman, predicted that Lungren will raise $3 million at major galas this week in Century City and San Francisco.

Meanwhile, California’s major electric utilities dumped $29 million into a campaign to defeat Proposition 9, an initiative they believe threatens their future by counteracting legislation approved two years ago to deregulate the industry.

And the utility initiative wasn’t the ballot’s priciest measure. By Sept. 30, gambling interests had raised a combined $60 million for the war over Proposition 5, which would allow Indians to operate casinos on their reservations as they see fit. Business-related initiative campaigns often draw far more money than races for statewide office, even for governor.

By the time all the television commercials are aired and mailers sent, campaign donors ranging from the insurance and oil industries to unions and trial lawyers to wealthy ideological warriors will have shelled out $300 million on California politics this year.

Winning at Any Cost

Spending on Campaign ’98 is sure to shatter all previous records, if it hasn’t already. The primary itself was a record, as candidates for statewide offices and legislative seats spent $137 million, Secretary of State Bill Jones reported.

“This is not even close to anything else we’ve ever had,” said Bob Stern of the Center for Responsive Government in Los Angeles. “This a supernova, record-breaking year. It certainly is blasting the California voters.”

Los Angeles-based Edison International, long a major campaign donor, contributed $13.6 million to the campaign against Proposition 9, while Pacific Gas & Electric of San Francisco kicked in $13.2 million. Sempra Energy of San Diego spent another $2.6 million.

In contrast, backers of the initiative have raised a mere $177,059 this year and had $28,000 in the bank.

“I feel like I’m marching up the beach on D-Day,” said Harvey Rosenfield, a Santa Monica attorney and consumer activist who is a main sponsor of the utility initiative.

The 1988 insurance initiative wars are the costliest to date, at more than $70 million.

So far this year, the biggest money--roughly $60 million--is being spent on Proposition 5, which is backed by many Indian tribes and would permit an expansion of casinos on reservations.

In a reflection of the fight over Indian gambling, Indian, Nevada and California gambling interests are spending hundreds of thousands of dollars on legislative races and campaigns for statewide offices.

While specific business interests focused on Propositions 5 and 9, the race for governor is attracting attention nationally.

Republican Lungren received $1.2 million from the GOP’s U.S. Senate campaign committee, plus $300,000 from the Republican National Committee, and $100,000 from the Republican Congressional Committee, according to the latest campaign finance reports.

Lungren got significant infusions from a trio of national Republican campaign funds--$1.2 from the GOP’s U.S. Senate campaign committee, which is also funding governor’s races this year--plus $300,000 from the Republican National Committee and another $100,000 from the Republican National Congressional Committee.

Additionally, Lungren received more than $800,000 from the insurance industry between July 1 and Sept. 30, $100,000 from Rupert Murdoch of News Corp., parent of Fox Broadcasting, and $200,000 from A. Jerrold Perenchio, majority owner of Univision, a Spanish-language television network.

Perenchio also gave Davis $235,000.

Davis’ new campaign finance report shows that he received $300,000 from the Democratic Governors’ Assn., plus $125,000 from the New York state Democratic Party.

Party officials said the national Democratic funds are being diverted to the state party’s voter outreach programs instead of the Davis campaign. “Frankly, we don’t need it,” said Davis campaign manager Garry South.

Davis continues to rely heavily on organized labor. At least a fourth of the $12 million Davis raised between July and September came from unions.

The largest single source was the Service Employees International Union. SEIU committees from California and New York and its national committee combined to give Davis $625,000.

Unions that represent state workers, including the SEIU, were especially big players on Davis’ behalf. If Davis is elected governor, their members stand to receive a pay raise denied them since 1995 by outgoing Gov. Pete Wilson.

Trial lawyers also are among Davis’ main benefactors. Attorneys who generally represent plaintiffs in civil cases gave Davis more than $600,000 between July and September.

Davis also is tapping the entertainment industry, receiving $50,000 donations from Steven Spielberg, Norman Lear and Jeffrey Katzenberg, and $25,000 from actor Tom Cruise.

In the race to succeed Lungren as attorney general, state Sen. Bill Lockyer had $1.6 million in cash, compared to Republican Dave Stirling’s $460,000. Unions gave Lockyer more than $200,000 between July 1 and Sept. 30. Trial lawyers donated more than $250,000.

Lockyer’s largest single donor during that period was the San Diego law firm of Milberg, Weiss, which gave him $50,000. Lockyer’s campaign took $25,000 from Bay Area contractor Oliver DeSilva, and $35,000 from Zenith Insurance Co., pushing Zenith’s total donation to Lockyer to $85,000 this year.

Stirling, who headed the Agricultural Labor Relations Board in the 1980s, is receiving money from California’s agricultural industry, as well as from traditional GOP donors, gambling sources and conservative Christians.

For example, Stirling’s largest single donor is conservative Christian Howard Ahmanson, an Orange County heir to a savings and loan fortune. Ahmanson has given Stirling $160,000 this year, including $25,000 last month.

Stirling also took $20,000 from Los Alamitos Race Course, owned by Dr. Edward Allred. Allred also donated to an independent campaign fund called the California Pro-Business Committee, which gave Stirling $20,000.

Sacramento Showdown

In the fight for control of the state Assembly, Speaker Antonio Villaraigosa was sitting on $3.7 million, while Assembly Republican Leader Bill Leonard had about $250,000 in cash. Leonard has raised $2.5 million this year, compared to Villaraigosa’s $4.5 million.

Villaraigosa is drawing on traditional Democratic donors including labor unions, which gave him more than $300,000 between July 1 and Sept. 30.

In other major campaigns:

* Lieutenant governor--Assemblyman Cruz Bustamante (D-Fresno) had $258,000 in the bank, and had raised $1.1 million through Sept. 30, much of it from labor, trial lawyers and gambling sources, plus $50,000 from E&J; Gallo winery and $25,000 from Perenchio.

Sen. Tim Leslie (R-Tahoe City) had $318,000 in the bank, and has raised $632,000 this year. His largest donor is Stockton developer and San Diego Chargers pro football team owner Alex Spanos.

* Proposition 10--Tobacco companies have spent $1.8 million against the measure, which would raise cigarette taxes by 50 cents a pack to fund child health and education programs.

* Proposition 1-A--Backers of the $9-billion school construction bond have raised $1.5 million. The California Teachers Assn. is the largest contributor, at $300,000.