Total Campaign Outlays Approach $400 Million
SACRAMENTO — With campaign spending hurtling toward the $400-million mark for the year, one finance record has fallen and Gov. Arnold Schwarzenegger has extended his lead in the all-important money race over his Democratic challenger.
Campaign finance reports filed Thursday show Democratic Oakland Mayor Jerry Brown is swamping state Sen. Chuck Poochigian (R-Fresno) in the attorney general’s campaign. In the lieutenant governor’s race, state Sen. Tom McClintock (R-Thousand Oaks) has more money than Democrat John Garamendi, the outgoing insurance commissioner.
In the race attracting the most attention, Schwarzenegger had slightly less in the bank than Treasurer Phil Angelides -- $2.4 million to $2.8 million.
But the governor had spent $14.4 million -- including almost $9 million on television ads -- to Angelides’ $3.4 million, between July 1 and Sept. 30, the period covered by the latest report. Schwarzenegger also raised twice the amount that Angelides did -- $12.7 million to $5.7 million during that period.
Altogether, donors have given Angelides $16.1 million in 2006, to $31.7 million for the incumbent. The treasurer, who has spent $31 million so far this year, depleted his war chest in a tough primary against Controller Steve Westly.
Angelides’ campaign issued a statement citing candidate Schwarzenegger’s promise in 2003 that he wouldn’t raise money from “special interests.”
“Since then, he’s taken more than $100 million from oil companies, HMOs, drug companies and insurance companies,” the statement said. Schwarzenegger’s campaign statement said: “We are grateful for everyone who supports the governor and his vision to move California forward.”
Although Angelides’ fund-raising lags, his main patrons -- organized labor and real estate developer Angelo Tsakopoulos -- are paying for separate efforts on his behalf. Tsakopoulos and his family have given the California Democratic Party at least $2.7 million this year.
The state party, relying heavily on labor, has raised $23 million in 2006 and had spent $12.7 million on television ads between July 1 and Sept. 30. As of Saturday, the party had $9.9. million in the bank. The state GOP’s report had not been filed by press time.
Separately, the union-funded Alliance for a Better California is airing television ads blasting the Republican governor as part of an independent campaign that had cost $5.2 million as of Saturday. Donors include the California Teachers Assn., at $2 million; the Service Employees International Union, $3 million; and a state firefighters’ union, $500,000.
Oil companies battling rich Hollywood environmentalists and venture capitalists over the $4-billion oil tax proposed in Proposition 87 have created the year’s biggest-ticket item. The two sides have combined to spend $98.4 million, shattering the record for the most costly initiative in the state history.
The record dates to 1998 when gambling interests spent $93 million on an initiative to legalize Las Vegas-style gambling on Indian reservations.
Oil companies have pumped $52.7 million into the campaign against the tax and had spent at least $35 million on television advertising through Saturday.
Venture capitalists, Hollywood figures, and wealthy real estate heir and environmentalist Stephen L. Bing contributed $45.7 million to support Proposition 87, which would use the tax to pay for alternative energy projects. The Yes-on-87 campaign had spent $32.4 million on television ads.
In any other year, spending on Proposition 86, which seeks to raise tobacco taxes by $2.50 per pack, would be eye-popping. Tobacco companies led by Philip Morris USA and R.J. Reynolds have spent a combined $32.4 million on television ads opposing the tax.
Tobacco companies have raised $55 million to defeat the measure. Philip Morris, the world’s largest cigarette maker, has spent $28.8 million of its own money against it. Reynolds’ share is $19.8 million. The measure’s backers, including hospitals and healthcare groups, have raised $14 million and have $1 million in the bank.
Despite all the money being raised and spent, consultants say it’s not enough, at least not for some campaigns.
Managers of the No-on-Proposition 89 effort have raised $2 million but sent an e-mail to potential donors pleading for more. Proposition 89 would impose strict caps on donations and raise business taxes by $200 million a year to create a public campaign financing system.
“There is a real possibility that we may have to cancel the first week of the television schedule if we do not receive the pledges that have been made very soon,” the e-mail, dated Thursday, said. “To say that this situation is a major concern is an understatement.”
The California Nurses Assn., promoting Proposition 89, has raised $1.7 million since July 1 and had $296,000 in the bank as of Saturday. But according to the e-mail, the nurses have reserved $2.5 million worth of television airtime and could start airing television spots soon.
“It is a very difficult environment,” said consultant Frank Schubert, whose firm sent out the e-mail. “The governor is raising a great deal of money.... Certainly, we’re competing with ... the oil tax and the tobacco tax.”
Nurses spokesman Chuck Idelson would not comment on the e-mail but blasted foes of the initiative, saying: “They are raising money from every corporate interest in California. Those people are contributing money because they have enormous power and they want to keep it.”
By law, all candidates and ballot measure campaigns must disclose donations of $1,000 or more within 24 hours of receipt in electronic filings made on the California Secretary of State’s website. Those filings show donors have given at least $371 million this year, with more than four weeks left in the campaign.
Additionally, campaigns must make periodic filings such as those made on Thursday, disclosing all donations of $100 or more and detailing their spending. Here is a glance at a few races of note:
* Attorney general: Brown, the Democratic nominee, had $5 million in the bank, having raised $4.1 million and spent $3.1 million so far this year. His Republican foe, Poochigian, had $1.66 million in the bank. He had spent $3.4 million this year and raised $2.4 million.
* Lieutenant governor: Garamendi, the Democratic nominee, had $268,000 in the bank after spending $3.7 million this year, much of it in a hotly contested primary. Republican McClintock had $1.6 million in the bank and had spent $1.6 million this year.
* Insurance commissioner: Silicon Valley entrepreneur Steve Poizner, the Republican, has given his campaign almost $6 million this year. He reported $2 million in the bank and had spent $4 million this year. Lt. Gov. Cruz Bustamante, the Democrat, had $481,000 in the bank and had spent $751,000 this year.
* Treasurer: Atty. Gen. Bill Lockyer, the Democratic candidate, had $10.6 million in the bank and had spent $1 million this year. His foe, Claude Parrish, had not filed his report by press time.
* Legislature: In the race for a Santa Ana-area state Senate seat, Republican Lynn Daucher had spent almost $1.3 million and had $547,000 left for the final month. The California Republican Party had given her more than $700,000. Daucher’s Democratic foe, Orange County Supervisor Lou Correa, had $59,000 in the bank. The Democratic Party has yet to give Correa substantial sums.
Given that lawmakers drew district boundaries to heavily favor one party or the other, there are relatively few competitive legislative races, and none in Los Angeles County.
In the Palm Springs area, Assemblywoman Bonnie Garcia (R-Cathedral City) was out-raising Democratic challenger Steve Clute, a former assemblyman. Garcia had $218,000 in the bank, to Clute’s $26,300.
In San Diego County, Republican incumbent Shirley Horton of Chula Vista has raised nearly $600,000 this year and had $176,000 in the bank. Her Democratic opponent, retired college professor Maxine Sherard, had $98,000 in contributions.
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