Davis Sets Record in Fund-Raising

Gov. Gray Davis, who opposes a March 7 ballot proposal limiting campaign contributions, collected a record-setting $13.2 million in his first year in office, making him one of the most successful fund-raisers in California’s political history.

A summary of Davis’ 1999 money-raising released Monday by his political strategist, Garry South, shows that the Democratic governor gathered political capital at a rate of more than $1.2 million a month last year.

While details of individual contributions were not yet available, they are expected to show that much of Davis’ political money was collected at intimate dinners with well-heeled executives from a wide variety of industries. At times, the governor attended two or three such dinners a week.

The frantic fund-raising at the front end of his four-year term puts Davis in a strong financial position against future opponents, and gives him a healthy reserve should campaign reform measures limiting contributions go into effect in California. On March 7, voters will decide the fate of Proposition 25, a measure that would put a $5,000 cap on contributions to statewide and legislative candidates, impose fund-raising blackout periods and allow candidates who voluntarily limit spending to receive taxpayer funds.

Another initiative that would limit campaign spending, Proposition 208, was approved by voters in 1996, but a constitutional challenge has stopped it from going into effect. A U.S. Supreme Court ruling last week, which upheld similar caps in a case involving another state, has made reformers optimistic that Proposition 208 will ultimately withstand the court challenge.

Davis has voiced strong opposition to the March 7 ballot measure, saying he opposes any public financing of campaigns and faulting the initiative for failing to place any restrictions on rich candidates who finance their own multimillion-dollar campaigns.

Former acting Secretary of State Tony Miller, one of the authors of Proposition 25, said Davis’ prodigious fund-raising will make him the “poster child” for the initiative.

“Never has a governor raised so much from so many special interests so early as has Gov. Davis. It is truly awesome,” Miller said. “But it’s unseemly. Clearly, voters look at this and it looks bad. There is a perception here that people are making contributions at the very least to gain access.”

Miller said he is not surprised that Davis has opposed his initiative, which would bar fund-raising in nonelection years like 1999. The proposal would allow fund-raising only 12 months before an election.

“Since when does the disease endorse the cure?” he asked.

But South said Davis opposes Miller’s initiative for the same reason that he engages in nonstop fund-raising.

“Rewind back to the primary in 1998,” South said. “This man had more money spent against him in the primary than anyone in history. Believe you me, that leaves an impression.”

Davis was opposed in the primary by two multimillionaries, businessman Al Checchi and former Rep. Jane Harman.

“Unless these so-called good-government types can figure out a way to limit the megalomaniacs with megabucks, people of modest means need to raise money,” South said.

Davis’ latest campaign report showed that he raised even more money in the last half of 1999 than he had in the first six months. His first six-month report showed he collected more than $6.3 million; his latest report showed more than $6.8 million.