California Is Top Source of Federal Political Funds

California inched ahead of New York as the most golden state for federal campaign money as political figures from across the country found rich veins to mine in this state, according to a preliminary analysis of fund-raising in the last campaign.

From San Francisco and the Silicon Valley to Orange County and Hollywood, donors poured at least $83.7 million into the national parties and federal candidates from virtually every state, Federal Election Commission records show. Of the 25 politicians who received the most California corporate money, 18 are from outside the state, though former state Treasurer Matt Fong was the largest recipient of California-based corporate money for his failed run against U.S. Sen. Barbara Boxer (D-Calif.).

Significant recipients of Californians’ money included party leaders such as Senate Democratic leader Tom Daschle of South Dakota and House Democratic leader Richard A. Gephardt of Missouri.

California’s major donors heavily favored Democrats in the most recent election, according to the analysis by the Campaign Study Group, a Virginia-based consulting firm hired by The Times.

California’s overall sum of $83.7 million exceeded the $82.9 million that came from New York, which, with its large number of corporate headquarters, has long been the leading benefactor of federal candidates and national parties.

The sheer number of four- and five-figure donations is what pushed the total from the nation’s most populous state so high, said Dwight Morris of the Campaign Study Group. Almost 1,000 corporate and individual donors in California kicked in $10,000 or more to federal contests.

The Campaign Study Group analyzed individual and corporate donations of $200 or more in 1997 and through Oct. 14, 1998.

The overall totals of political money from California and other states are based on contributions processed by the Federal Election Commission through Jan. 2, and reflect the vast majority of donations in the 1997-1998 election cycle. Final numbers will not be available until March.

Even if New York reclaims its lead in the final tally, the findings show why politicians from Vice President Al Gore to conservative Christian Gary Bauer make repeated pilgrimages to the West Coast.

“California is a gold mine for both political parties,” said Steve Schmidt, spokesman for former Tennessee Gov. Lamar Alexander.

Alexander is one of seven Republican presidential hopefuls who have promised to attend next month’s state Republican convention in preparation for the California primary 14 months from now.

“Seven presidential candidates will be here in a 48-hour period. That’s how important California is,” said John Peschong, the Republican National Committee’s field representative for the state. “You’ve got to come to California for those millionaires, the ones who can write the $1,000 checks.”

Records show that although California is generally viewed as a swing state, its top 25 individual donors gave almost twice as much to Democrats as to Republicans on the federal level.

California’s major corporate donors--through their officers and political action committees--also favor Democrats, though by a slight margin.

Donors Elsewhere Favor Republicans

Outside California, large corporate donors heavily favor Republicans. Nationally, the top 30 corporate donors gave nearly twice as much money to Republicans as to Democrats--$27.5 million versus $14.2 million.

Only one California firm ranked among the country’s top 30 corporate donors. And that firm, BankAmerica Corp., no longer is based in San Francisco, the result of its merger with a North Carolina banking concern.

Among the other findings:

* The top individual donor to federal campaigns was San Francisco developer Walter H. Shorenstein, long a major donor and fund-raiser for Democrats. He gave at least $463,000 to the Democratic National Committee.

* Hollywood remains a major source of Democratic money. Four of the state’s top 25 individual donors and four of the top 25 corporate givers are part of the entertainment industry.

* Three more of the 25 top corporate donors are major land developers--the Fluor Corp. and AG Spanos, which give primarily to Republicans, and AKT Development, which gives mostly to Democrats. Orange County developer George Argyros was the second-largest individual donor, giving at least $250,000 to the GOP for use around the country.

* Six of the top 25 individual donors and two of the top 25 corporate donors are involved in a recently formed political group, Technology Network, an association of high-tech firms and venture capitalists who finance start-up companies.

Some donors, particularly corporate interests, answer pleas for money at least in part because they have issues pending before Congress. Donations help them gain access to officials deciding the issues.

But many individuals give for ideological reasons.

“I’m never going to run for office. But I’m willing to help people who I think have the right attributes to run for office,” said Howard Leach, a longtime Republican benefactor who was No. 21 among individual donors.

California is especially important for Democrats. Gore and President Clinton have been here dozens of times since 1992 to raise money.

Former New Jersey Sen. Bill Bradley, Gore’s only announced opponent for the 2000 Democratic primary, was here last month. U.S. Senate and congressional leaders also make a point of prospecting in Beverly Hills and California’s other pockets of wealth.

“California is one of the few places in the country that has a substantial base of wealthy Democratic donors,” said political consultant Darry Sragow, a Democrat. “If you’re running in Indiana, you could count on your fingers and toes the significant Democratic donors.”

Part of California’s appeal to out-of-state candidates is that it is, after all, a long way from Kansas.

A fund-raising gala in Beverly Hills gives candidates a chance to schmooze with Hollywood types. A Silicon Valley event gives them contact with movers in the high-tech world.

“That’s kind of fun for candidates,” said Robert Stern of the nonprofit Center for Governmental Studies in Los Angeles. “ . . . You have big liberal money and big conservative money; both parties are well-represented. A very important part of it is glitz.”

Big Money in Show Business

One such event took place in September at the Beverly Hills home of Haim Saban, No. 10 among individual donors. The featured guest was President Clinton. Madonna, Motown founder Berry Gordy and actress Mimi Rogers also were there. The event fetched $1.5 million for Democratic causes and candidates.

“We get contacted a lot. We respond some,” said Saban, part owner of the Fox Family Channel and producer of TV’s “Mighty Morphin Power Rangers.”

Saban said he supports the party because of its stand on such issues as tobacco control, abortion rights and support of Israel, and because of his concern that the GOP is the “captive of the religious right.”

San Diego attorney William S. Lerach, who was at Saban’s fete, also has hosted Clinton at his home. Lerach, No. 3 among individual donors, specializes in suing corporations over stock irregularities.

Major high-tech firms launched an initiative in 1996 to limit such suits by Lerach and others. He responded with an initiative to make it easier to sue firms for securities violations. Both failed, but only after the warring interests spent upward of $60 million.

In part because of that war, high-tech firms have become more active politically. Technology Network was created in the wake of the 1996 initiative war. TechNet members accounted for more than $1.5 million in donations through Oct. 14, with $915,000 going to Democrats and $668,000 to Republicans.

Even so, high-tech firms lag behind traditional corporate donors--such as Big Tobacco, Wall Street and telecommunications companies, which face significant federal regulation. Microsoft, the target of a federal antitrust action, is the only high-tech firm among the top 30 corporate donors nationally.

“To be giving a million dollars a year, you have to have some pretty significant government interests--and high-tech, by and large, does not,” said TechNet president Reed Hastings. “The [Silicon Valley] giving is by individuals who are doing what they think is right for the country.”

Unlike California law, which places no restrictions on contributions to state campaigns, federal law limits individual donations to $1,000 per candidate. Federal donors can give unlimited “soft money” donations to political parties.

Federal law also prohibits corporate donations directly to candidates. Corporate officers can give to candidates, however. Corporations also can form political action committees and give to parties.

In most instances, the top individual and corporate donors to federal campaigns also gave large sums to state campaigns. California state campaigns cost more than $300 million in 1998.

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Top Individual Contributors in California

Most of California’s top individual contributors gave more to Democrats than Republicans.

Donor: 1. Walter H. Shorenstein

Firm: Shorenstein Co.

Type of Business: Development

To Democrats: $478,500

To Republicans: 0

Total*: $478,500

****

Donor: 2. George L. Argyros

Firm: Arnel Development

Type of Business: Development

To Democrats: 0

To Republicans: $259,750

Total*: $259,750

****

Donor: 3. William S. Lerach

Firm: Milberg Weiss Bershad Hynes & Lerach

Type of Business: Legal

To Democrats: $227,750

To Republicans: $4,000

Total*: $231,750

****

Donor: 4. Donald G. Fisher

Firm: GAP Inc.

Type of Business: Retail

To Democrats: $17,500

To Republicans: $190,200

Total*: $214,400

****

Donor: 5. Paul Goldenberg

Firm: Paul’s TV King of Big Screen

Type of Business: Retail

To Democrats: $209,210

To Republicans: 0

Total*: $210,210

****

Donor: 6. Gail Zappa

Firm: Intercontinental Absurdities Ltd.

Type of Business: Recording

To Democrats: $201,750

To Republicans: 0

Total*: $206,750

****

Donor: 7. Ron Burkle

Firm: Yucaipa Corp./Ralphs

Type of Business: Retail

To Democrats: $202,000

To Republicans: $1,000

Total*: $203,000

****

Donor: 8. Robert E. McDonough

Firm: Remedy Temps

Type of Business: Employment

To Democrats: $186,000

To Republicans: 0

Total*: $187,500

****

Donor: 9. Eli Broad

Firm: SunAmerica Inc.

Type of Business: Financial Services

To Democrats: $171,580

To Republicans: $1,000

Total*: $172,580

****

Donor: 10. Haim Saban

Firm: Saban Entertainment

Type of Business: Entertainment

To Democrats: $161,744

To Republicans: $2,000

Total*: $167,119

* Some totals include contributions to third-party candidates and unaffiliated political action committees.

Compiled by the Campaign Study Group of Virginia from computerized Federal Election Commission records. Covers contributions of $200 or more through Oct. 14, 1998.

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Top Corporate Contributors in California

The top contributions from California corporate interests, including political action committees, lean slightly toward the Democratic Party.

* Some totals include contributions to third-party candidates and unaffiliated political action committees.

*--*

Company To Democrats To Republicans Total* 1. BankAmerica Corp. $333,440 $643,137 $991,217 2. Chevron Corp. $223,142 $623,503 $848,145 3. Walt Disney Co. $332,655 $433,682 $801,762 4. Arco $242,349 $478,729 $727,828 5. Northrop Grumman Corp. $207,750 $440,800 $649,000 6. Edison International Cos. $202,441 $394,143 $610,209 7. Universal Studios $443,858 $134,400 $592,258 8. E & J Gallo Winery $523,932 $23,050 $546,982 9. Shorenstein Co. $505,000 0 $505,000 10. Yucaipa Corp./Ralphs $462,357 $19,500 $485,857

*--*

Compiled by the Campaign Study Group of Virginia from computerized Federal Election Commission records. Covers contributions of $200 or more through Oct. 14, 1998.

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Highest Campaign Donations

Federal election contributions from California inched ahead of New York’s in the final weeks of the most recent campaign, according to a preliminary analysis of federal election records.

*--*

% of U.S. State Donations total 1. California $83.7 million 11.1% 2. New York $82.9 million 10.9% 3. D.C. $75.8 million 10.0% 4. Texas $41.6 million 5.5% 5. Florida $34.5 million 4.6% 6. Illinois $34.4 million 4.6% 7. Pa. $27.8 million 3.7% 8. Ohio $26.1 million 3.5% 9. Virginia $25.7 million 3.4% 10. New Jersey $25.2 million 3.3%

*--*

Compiled by the Campaign Study Group of Virginia from computerized Federal Election Commission records. Includes contributions processed by the Federal Election Commission through Jan. 2.