Private Gifts Boost Races

With the Democratic primary fight for governor turning ever more bitter, state Treasurer Phil Angelides and state Controller Steve Westly reported spending a combined $56.9 million in their quest to challenge Gov. Arnold Schwarzenegger in November.

In a state where 30-second television ads often sway the electorate, Angelides has spent $16 million on broadcast and cable TV, while Westly has spent upward of $30 million on airtime, according to campaign reports filed with the state Thursday. The reports reflect spending through last Saturday.

Less than two weeks before the primary, millions are also being raised and spent daily by statewide and legislative candidates hoping to win their parties’ nomination, and by interest groups waging separate campaigns for candidates of their choice.

Angelides spent $20.6 million through May 20. Westly had spent $36.3 million as of that date. But while Angelides is being outspent, he is being helped by wealthy Sacramento developer Angelo Tsakopoulos and Tsakopoulos’ daughter Eleni.

The Tsakopoulos clan is financing an independent campaign on Angelides’ behalf. A report filed Thursday shows the father-daughter team, who are friends and have been business partners of the treasurer, have given a total of $8.7 million to the effort. The money is paying for ads featuring firefighters, police officers and a teacher touting Angelides’ record.

In a campaign stop Thursday, Westly criticized Angelides for accepting money from developers, saying: “You have to ask: ... What do they expect?”

Westly, a wealthy former EBay executive, is using his personal fortune to finance his campaign. He gave his campaign a $2-million infusion Thursday, pushing the total of his own money spent to $34.5 million.

Schwarzenegger, who has no opposition in the June primary, is nevertheless spending heavily -- $6.6 million so far this year. He has paid $1.5 million for consultants, $778,000 for campaign workers’ salaries and $1.2 million on fundraising and public appearances.

After starting the year with a deficit, the Republican governor reported raising $14.7 million between the start of the year and May 20. He had $9.7 million in the bank, though he also had unpaid bills of $1.38 million.

California’s voter-approved campaign finance law says donors cannot give more than $22,300 to candidates for governor in a single election, or a combined $44,600 for the primary and general elections.

In several instances, Schwarzenegger has received maximum amounts from donors, their spouses and children. Schwarzenegger contributor Robin P. Arkley II of Eureka, for example, gave the governor $44,600 earlier this year -- as did his wife and two daughters, for a combined $178,400.

The spending comes as a bill to restrict campaign spending sputters in the Legislature, and the California Nurses Assn. has submitted signatures to qualify a far-reaching initiative for November that would further cap campaign spending, ban corporate donations and create a public financing system.

“The system is so out of control,” said Rose Ann DeMoro, executive director of the California Nurses Assn., which helped defeat Schwarzenegger’s policy agenda last year. “The reform is needed now. It is urgent. This election is like a parody.”

Campaign finance reports show that as of this week, donors had contributed $110 million to candidates, propositions on the June and November ballots and party organizations in 2006.

Financial services corporations and individuals who describe themselves as investors, venture capitalists, bankers or having similar occupations accounted for $19 million of that, and organized labor for $10.2 million.

Several interest groups, seeking to expand their influence in state politics, have persuaded members to pay higher dues in recent months and years. One such group is the California Dental Assn., whose war chest is brimming with $1.7 million. Dentists reported raising $707,000 for the entire year in 2000.

“We want to have the potential to have a meaningful impact,” said Liz Snow of the California Dental Assn.’s political action committee.

Much of the money being raised this year is not being given directly to candidates. In many instances, groups are paying for separate campaign efforts like the one Tsakopoulos is funding. California law requires that such campaigns be independent of candidates’ own campaigns.

Political players have spent $15 million so far on these independent campaigns. Assemblyman Jerome Horton (D-Inglewood) is benefiting from independent spending as he runs for a seat on the Board of Equalization, which oversees sales taxes and tobacco tax issues, among other things.

A group calling itself California African American Political Empowerment Political Action Committee is paying for a billboard visible from the Santa Monica Freeway in West Los Angeles featuring a picture of a firefighter that says firefighters, nurses and teachers support Horton.

Those financing the effort include donors with tax issues before the board and legislation in the Capitol: cigarette and alcohol companies, Indian tribes that own casinos, dentists and real estate agents.

In one of the more high-profile statewide races, Oakland Mayor Jerry Brown, seeking the Democratic nomination for California attorney general, reported $4.4 million in the bank after raising $1.28 million so far this year.

As of May 20, Brown had not purchased television airtime.

Brown’s opponent, Los Angeles City Atty. Rocky Delgadillo, has raised $1.48 million this year, and had spent $3.4 million, including $2.5 million for television advertising. He had $450,000 in the bank.

Sen. Chuck Poochigian (R-Fresno), the presumptive Republican nominee for attorney general, has raised $900,000 this year and has $3.2 million in the bank.

Spending in the primary campaign is relatively modest by California standards. That’s because there is only one ballot measure attracting donors’ interest: Proposition 82, which would raise income taxes by $2.4 billion annually on wealthy Californians to pay for preschool.

The measure’s main promoter is filmmaker Rob Reiner, who with his family has spent $5.77 million on the measure. Teachers unions, which would probably represent preschool instructors, have chipped in $2.5 million. The Service Employees International Union, which also could represent some workers, has donated $15.7 million.

Foes have raised $6.3 million, with venture capitalists, money managers and others who describe themselves as investors giving the bulk at $3.75 million.

The California Democratic Party is heading into the election with far more money than the state Republican Party. The GOP reported $2.45 million in the bank, compared with $8.8 million for the Democrats. Political parties play a key role in campaigns, using their money and organization to boost their party choices.