Democrats Lead State GOP in Race for Funding

California’s Democratic Party has more than twice as much cash in the bank as the state GOP, but Gov. Arnold Schwarzenegger’s fundraising prowess is helping the Republicans narrow the gap, contribution reports for the first half of the year show.

The Democrats had nearly $11 million in the bank as of June 30, while the GOP had $5.1 million, according to the reports filed with the state Monday. The Democrats had raised $7.7 million since January and the Republicans had raised $5.4 million.

But Schwarzenegger pulled $17 million into his various campaign committees during the first half of the year for the promotion of his causes. He has vowed to help Republicans whittle away at the Democrats’ long-standing control of the state Senate and Assembly in the Nov. 2 election.

The state GOP also reported raising $4.4 million in a separate fund regulated by federal campaign law, compared with $1.3 million by the California Democratic Party in a similar fund. Under new federal laws, state parties increasingly must rely on money subject to the tighter federal rules for many traditional campaign activities.

Noting that the party controlling the governor’s office almost always takes the fundraising advantage, Democratic Party executive Bob Mulholland said: “This Democratic Party is doing better than the Republicans ever dreamed of when they were out of the governor’s office.”

Still, the Republican governor, who ousted Democratic Gov. Gray Davis in October’s recall, proved several times that he could pump up Republicans simply by appearing at their events. He boosted the GOP’s fortunes in May by headlining a fundraiser at the Century Plaza Hotel that raised $2 million.

“The California Republican Party has not had a seven-figure fundraiser in a long time,” said Marty Wilson, one of Schwarzenegger’s top political aides.

In a closely watched legislative contest, Stockton Mayor Gary Podesta has raised $1.4 million and has more than $1 million in the bank for his campaign to unseat Sen. Mike Machado (D-Linden). Machado has $613,000 in the bank.

Schwarzenegger has helped Podesta raise money, as has one of the governor’s largest donors, Stockton developer Alex Spanos. Donors affiliated with Spanos’ companies, including his San Diego Chargers football team, have given Podesta at least $66,300. Since the recall campaign, Spanos and family members have donated $1.06 million to the California GOP.

“With their dazzling new wunderkind, it is very easy for Republicans to attract dollars,” said Board of Equalization Chairwoman Carole Migden, a Democrat seeking a state Senate seat from San Francisco. Migden is a major fundraiser, reporting $1.7 million in the bank, even though she is expected to win her Senate race easily. “I don’t know that we’re bracing for a stellar year, but I think we’ll hold our seats.”

The ChevronTexaco oil company was the largest donor to the state GOP in the first half of the year, at $463,000, followed by the Irvine Co., a developer, at $350,000. Other major GOP donors included 21st Century Insurance, at $148,400; the Viejas Band of Kumeyaay Indians, at $138,400; and Altria Corp., the cigarette company formerly known as Philip Morris, at $137,400.

The California Teachers Assn., which represents public school educators, was the largest single donor to the California Democratic Party, at $751,000, followed by the California Council of Service Employees, which represents state and local government workers, at $426,000. Hollywood producer Stephen Bing was the largest individual contributor to the state Democratic Party, at $153,000.

Sen. Don Perata (D-Oakland), vying to become Senate leader when President Pro Tem John Burton retires this year, was among the largest donors to the state Democratic Party, at $325,000. Two rivals, Sen. Martha Escutia (D-Whittier) and Sen. Sheila Kuehl (D-Santa Monica), each gave $26,600 to the party.

Several candidates who filed Monday are aiming for campaigns beyond November. Oakland Mayor Jerry Brown began raising money in mid-May for a planned 2006 run for California attorney general. Since then, Brown, the former governor and candidate for U.S. Senate and president, has amassed $988,000.

As a candidate for statewide office, Brown is allowed to raise money in increments of up to $10,600. But tapping his lengthy list of backers, Brown drew 1,369 donations of $100 or less, and an additional 96 for less than $1,000. Altogether, he has reported receiving 1,717 individual donations.

The Monday reports show that the most expensive contests on the November ballot will probably be propositions. Some of the measures are:

* Propositions 70 and 68, competing gambling initiatives. Indian tribes seeking unfettered casino expansion rights have raised $16.7 million for Proposition 70. Card rooms and horse tracks have raised $11 million for Proposition 68, which could allow them to operate lucrative slot machines. The racetracks and card rooms had $300,000 in the bank, while tribes opposing their initiative had $4.3 million.

* Proposition 72, a referendum to repeal a statute approved last year requiring that employers provide workers with health insurance. Supporters led by the California Restaurant Assn., and major retailers have poured $2 million into the campaign this year, compared with $1 million for the law’s supporters.

* Proposition 64, an initiative to limit lawsuits against businesses. Backers reported collecting $4.2 million. Some of the larger donors include Southern California Edison, California car dealers and Kaiser Foundation Health Plan.

* Proposition 71, to provide state money for stem cell research. Backers reported raising almost $7 million. Opponents did not report raising significant sums.

* Proposition 63, an initiative to impose an extra tax on people whose annual income exceeds $1 million to expand mental healthcare. Supporters, including mental healthcare agencies, have raised $2.1 million.