Limits for the Fat Cats

Unions, Indian casino operators, billboard companies and political parties spent a record $3.2 million in so-called independent expenditures during the 2001 Los Angeles elections. This flood of money, which is separate from regular campaign spending and not governed by the same rules, threatens to drown out campaign finance reforms that voters passed a dozen years ago.

Today the City Council has a chance to contain the torrent and help uphold voters’ desire to curb the influence of big donors. If, that is, council members can bring themselves to limit the money that helped many of them win office.

Los Angeles residents in 1990 voted to give public matching funds to candidates who abided by voluntary campaign spending caps. The measure also limited what a single donor could contribute. But big donors found a way to skirt those rules by sending mailers or buying billboards without contributing directly to or consulting with the candidate or campaign officials. No city or state has found a way to legally ban such spending. But the Los Angeles Ethics Commission recommends a way to reduce donors’ incentive to use the loophole.

Currently, independent spending above a certain level triggers the lifting of spending limits for all candidates in a race. The proposed rule would lift the spending cap, raise contribution limits and speed up public matching funds for all candidates except those whose outside expenditures went over the limit.

Council members Cindy Miscikowski, Wendy Greuel and Eric Garcetti have been outspoken supporters of containing independent spending. But Mayor James K. Hahn has said he will veto the measure. Hahn cites the city attorney office’s opinion that selectively lifting the spending cap would not withstand a court challenge. (The Ethics Commission, California Common Cause and the Center for Governmental Studies disagree.) Hahn, City Atty. Rocky Delgadillo and Council President Alex Padilla are the elected officials who have benefited most from independent expenditures, according to the Ethics Commission.

Should the measure not gain 10 votes to override a veto, a compromise circulating in the council would merely speed up public matching funds for the candidates who didn’t benefit from the independent expenditure. It’s better than nothing, but it doesn’t fully address the voters’ desire to rein in moneyed influence in government.

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To Take Action: To reach City Council members, call (213) 485-2121 or go to www.lacity.org/council.htm. Contact Mayor James K. Hahn at (213) 978-0600 or mayorhahn@mayor.lacity.org.