Governor Calls Off Gathering of Donors

Gov. Gray Davis on Friday canceled a fund-raiser aimed at generating donations from boosters of high-speed rail, as his Republican challenger pointedly accused him of raising money from beneficiaries of legislation he has signed into law.

In an attempt to dramatize the point, GOP nominee Bill Simon Jr. traveled to the site of the canceled fund-raiser--the Santa Clara home of Rod Diridon, the Davis-appointed chairman of the High Speed Rail Authority--and called for an investigation of the governor’s “corrupt administration.”

“Sadly,” Simon told a cluster of reporters and TV crews outside Diridon’s home, “we now have the latest chapter of Gov. Davis auctioning off state policy to the highest bidder.”

At a minimum, Simon said, the governor’s fund-raising tactics were “unethical and beneath the dignity of the office of governor of California.” But he also suggested that the practice might be illegal, and called on Atty. Gen. Bill Lockyer to investigate.

Lockyer’s spokesman, Nathan Barankin, shrugged off the request as politically motivated: “There is nothing new about political charges and countercharges.... Nonetheless, we will carefully review Mr. Simon’s charges, and respond to them as appropriate.”

Diridon, a longtime backer both of Davis and of the concept of bullet train service in California, organized the fund-raiser, which had been scheduled for Friday afternoon, to pay tribute to Davis. In an e-mail to advocates of high-speed rail, Diridon urged people “who will build, operate and maintain the system throughout the nation and especially here in California” to attend the $2,000-per-couple event.

The fund-raiser would have been a day after Davis signed legislation placing on the 2004 ballot a $9.9-billion bond to help finance construction of a high-speed train system in California. Diridon attended the elaborate bill-signing event at the California Railroad Museum in Sacramento.

The Davis campaign committee, which on Thursday had defended his plans to attend the fund-raiser, switched positions on Friday, issuing a brief statement saying the governor would not attend and would return any checks from donors who had planned to go.

“The committee’s strict guidelines regarding the necessity for committee approval of all communications distributed by an event host were not followed in this case,” the statement said. “Under these circumstances, the governor decided it would be inappropriate to go ahead with the event.”

Despite the cancellation, Davis stood by Diridon, saying in a statement: “There is no reason at this time to ask for Mr. Diridon’s resignation. To our knowledge, he is doing a good job as chair of California High Speed Rail Authority. Clearly, he made a mistake with regard to the event and that’s why the event was canceled.”

The decision to cancel the fund-raiser--a rare occurrence for the governor--came a day after he appeared before the Sacramento Bee’s editorial board and defended his fund-raising practices. The governor has raised more than $62 million for his reelection, including $21.5 million so far this year.

“I have conducted myself in an appropriate fashion in accordance with the law and I have no apologies for what I’ve done,” Davis was quoted as telling the Bee.

Simon again criticized Davis for his practice of raising money in September, when he must decide whether to sign or veto more than 1,200 bills. The governor has raised more than $2.5 million so far this month. Simon renewed his pledge not to raise money during bill-signing season if elected.

Simon also called on Davis to release his fund-raising schedule, a demand rejected repeatedly by Davis. At the news conference, Simon mocked Davis’ remarks about the matter to the Sacramento Bee. When the board asked Davis to disclose his fund-raising schedule, the governor responded, “Why don’t you go to bed with me? Why don’t you move in? You’re not going to get it. Forget it.”

“Mr. Davis,” Simon said, “the people of California don’t want to go to bed with you. They just want you to put in an honest day’s work.”

On Friday, Diridon dismissed the Simon demonstration outside his house, saying: “It is his right, and it was a skillful political ploy.”

Citing Simon’s personal wealth, Diridon said he was proud that he had tried to help Davis’ reelection by offering to host the event. But he added that the governor had made the right decision to cancel. The juxtaposition of the Friday fund-raiser and the Thursday bill signing was an unfortunate coincidence that “gave the appearance of impropriety,” Diridon said.