AD WATCH
Title: “Only One”
Producer: Don Sipple
Script: An announcer says: “The Indian casino tribes are the most powerful special interest in California. They’ve spent $120 million on politics in the last five years. The Sacramento Bee reported on Aug. 28 they had a closed door meeting where Davis, Bustamante and McClintock all made promises to them. Only one major candidate didn’t go -- Arnold Schwarzenegger. The L.A. Times reported on Sept. 20 that casino tribes are spending lavishly in the recall election. $600,000 to McClintock, $5 million for Bustamante, and $400,000 to Davis. Only one major candidate doesn’t take their money -- Arnold Schwarzenegger.” Then Schwarzenegger’s voice is heard saying: “Their casinos make billions, yet pay no taxes and virtually nothing to the state. Other states require revenue from Indian gaming, but not us. It’s time for them to pay their fair share. All the other major candidates take their money and pander to them. I don’t play that game. Give me your vote. I guarantee you things will change.”
Announcer: “Paid for by Californians for Schwarzenegger.”
Accuracy: The tribes have spent $120 million in California politics since 1998, most of it to back propositions that legalized casino gambling on Indian reservations. Tribal sovereignty makes the casino profits exempt from federal taxes. Workers at the casinos pay federal income and payroll taxes. The casinos pay about $130 million annually into two state funds, one of which is supposed to cover public costs related to casinos. Localities complain that the funds are insufficient, buttressing Schwarzenegger’s argument that the tribes pay “virtually nothing.” Other states have negotiated agreements with casino-owning tribes that yield more income for state coffers. Tribal leaders point out that Schwarzenegger took contributions from them for Proposition 49, the ballot proposition he sponsored last year.
Analysis: In this ad Schwarzenegger, who pledged to run a positive campaign, furthers an attack on his rivals that could open him to charges of hypocrisy. Although his allegations are factually correct, Schwarzenegger is attacking rivals by name in this ad -- his television ad did not name Bustamante, Davis or McClintock. Schwarzenegger has taken money from a variety of business interests, including construction, development, wine, agricultural and movie executives.
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Compiled by Times staff writer Joe Mathews
Los Angeles Times
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