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Davis rakes in donations at record-setting pace
San Diego Union Tribune/Associated Press ^ | April 7, 2002 | Alexa Haussler

Posted on 04/07/2002 12:32:57 PM PDT by ElkGroveDan

Many top givers have business ties with state

SACRAMENTO - Gov. Gray Davis has tapped labor unions, developers, and the financial and entertainment industries over the past three years to raise a record-breaking $42 million for his re-election bid.

He has appointed many of his largest donors to seats on key advisory boards; other contributors have received major state contracts. No evidence shows a direct relationship between Davis' political decisions and his hunger for contributions. But a massive campaign treasury inevitably brings, at a minimum, the perception of conflicts of interest.

And with the national lens on campaign finance reform, he has emerged as a poster child for eye-popping fund-raising.

"It takes your breath away," said Paul Taylor, founder of the Washington, D.C.-based Alliance for Better Campaigns.

A "who's who" of wealthy, influential donors from a spectrum of industries, Davis' list is led by screenwriter Stephen Bing - who has given more than $450,000 - and Spanish language television magnate Jerry Perenchio, with $375,000. Billionaire venture capitalist John Doerr has chipped in more than $100,000.

Many of Davis' donors do business with the state in some way, such as Delta Wetlands Properties of LaFayette, which gave Davis $115,000 in 2000 and 2001 and won state approval in early 2001 to operate a controversial reservoir project in the Sacramento-San Joaquin Delta.

He received more than $75,000 from Santa Monica-based Cadiz Inc., which wants to build a vast water-banking system for Southern California.

Cadiz CEO Keith Brackpool is a close adviser to Davis on water policy issues and was appointed by Davis to the resources committee of the state Commission on Building for the 21st Century. The commission includes a handful of other Davis donors, including developer Eli Broad and investor Ron Burkle.

Davis has appointed major contributors to state advisory and policy-shaping boards, from the Little Hoover Commission, a panel billed as an independent state oversight commission, to the University of California Board of Regents.

UC Regents Norman Pattiz, George M. Marcus and major Democratic contributor Haim Saban - all appointed by Davis - gave Davis a combined $388,000 in 2000-01 for his re-election. Another regent, Padres owner John Moores, contributed $125,000 in 2000. In 1998, he contributed $125,000, plus $10,000 for the inaugural, $27,633 through use of his plane on four occasions, and $3,662.24 for catering. Moores recently became the chairman of the UC Board of Regents.

In November, Davis will face Republican Bill Simon, a wealthy Los Angeles investor and political newcomer who used about $5 million of his personal fortune for his primary campaign.

In the first two years after he took office in January 1999, Davis raised an average of more than $1 million a month. By the end of 2000, with nearly two full years until his re-election campaign, Davis' campaign treasury brimmed with $26 million. At one point, experts say, Davis' campaign treasury was larger than those of presidential contenders George W. Bush and Al Gore.

Last year, as Republicans began to jump into the race to challenge him, Davis raised more than each of the two previous years: $14.6 million. He then began to spend liberally, using $10 million to air television ads attacking former Los Angeles Mayor Richard Riordan, who was beaten by Simon in the Republican primary.

In 2000 and 2001, Davis' largest contributors were labor unions, who gave him more than $4 million, followed by more than $2 million from the entertainment industry, according to an analysis by The Associated Press. Finance, health care and lawyers round out the top five industries that contribute to Davis.

The amount Davis had raked in by February had sailed past the record set by former Republican Rep. Rick Lazio, who raised $39.9 million in his failed 2000 Senate bid against Hillary Clinton in New York.

The governor's trademark fund-raising prowess has three reasons, colleagues said. First, Davis has experience. He started his political career raising money for Tom Bradley's successful 1973 race for mayor of Los Angeles. He is relentless, appearing at dozens of fund-raisers even as the state faced consecutive crises involving energy and the budget.

And his politics appeal to a wide array of donors.

"He's positioned himself as a moderate which allows him to leverage money from all sides, and that's what he does," said Jim Knox, executive director of California Common Cause.

While some political observers marvel at Davis' ability to raise money, his opponents often use it to attack him.

Riordan, for example, accused him frequently of "dialing for dollars" instead of attacking the energy crisis and budget shortfall. Arizona Sen. John McCain, one of the nation's leading campaign finance reform proponents, called Davis' fund-raising pace "reprehensible."

But supporters say Davis is doing what anyone running in the nation's most expensive state must do, particularly someone facing a wealthy opponent willing to spend millions of his own money.

"Until we change the system, he as much as anybody is a victim of it," said Tony Miller, a Democrat and former acting secretary of state who supports campaign finance reform.

Davis and his aides say he never makes decisions based on campaign contributions, and while he may be secretive about how he raises money, he's never apologetic about it.

"He spends very little time, if any at all, calling people up and personally raising money," said Davis campaign spokesman Roger Salazar.

Davis says his legislative maneuvers often conflict with the desires of his donors. One of the most high profile examples is Enron Corp., now in bankruptcy, which has given Davis $119,500, including $42,500 since he became governor.

But last year, as California was hit by a wave of rolling blackouts, Davis repeatedly accused Enron of gouging the state and contributing to its crippling energy crisis.

And Davis vetoed workers' compensation increases for his first three years in office, a move that angered the unions that make up his biggest contribution base but pleased his insurance industry donors. Davis signed legislation boosting the benefit this year.

Paul Maslin, Davis' campaign pollster, said voters "don't see any problem at all" with Davis' fund-raising. "This is politics, it's the biggest state in the country and it's not frankly a big story with them."

Mark DiCamillo, director of the Field Institute that conducts independent statewide polls, agreed.

"I suspect that . . . a relatively small proportion of California voters is even aware of the extent of fund-raising that the governor has at his disposal," DiCamillo said.

Still, large donations can sway politicians' decisions, said Larry Makinson, senior fellow with the Center for Responsive Politics, a nonpartisan research group.

"It means he's always looking over his shoulder wondering how this is going to go down, not just with the people of California, but with the legions of investors who laid their money down," Makinson said.

Plus, a staggering campaign fund discourages elective competition and shuts out those without personal fortunes, reformers say. Others wonder how Davis can govern fairly when he has received millions from scores of industries with something to gain from the state's top elected official.

"It's a fair question that people ask," said Taylor of the Alliance for Better Campaigns. "What is that money buying? Is it good government or is it some level of access or influence?"


TOPICS: Breaking News; Crime/Corruption; Government; Political Humor/Cartoons; US: California
KEYWORDS: backscratch; calgov2002; corruption; davis; extortion; payola; shakedown
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To: .38sw
Newbie FR here - I work in the entertainment industry and it's real hard to convince anyone around here what a complete nut Davis is. (At least from speeches I've heard him give recently) To help me out - what exactly has he done that has hurt people in labor unions? ( a lot of my friends are in motion picture unions) Thanks for you help.
21 posted on 04/07/2002 3:46:00 PM PDT by JH147
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To: dr_who
Bill Clinton is more like it. I wonder how he managed to shake down the developers.

Probably borrowed some FBI files from Hillary.

22 posted on 04/07/2002 3:49:46 PM PDT by Euro-American Scum
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To: JH147
I can't say that he specifially hurt people in unions, but as to hurting working people - the budget problems for one. In order to help with the budget shortfall, Davis approved the sales tax increase of 1/4%. He is for high taxes overall. That hurts working people. California takes around $9 per $100 earned (on average) for government. Arizona takes somewhere around $4 per $100. I don't think that's good for working people. His bungling of the energy crisis (which is another reason for the budget deficit) is costing working people big time. His administration brokered THE WORST contracts for energy which we will be paying for for the next couple of decades. If we don't pay for it directly in our power bills, we will pay for it in taxes. That hurts working people. And he has really done nothing to solve the fundamental problem with energy in this state. Many of the energy companies that WERE going to construct plants in California, have put their plans on hold because of the antibusiness attitude of California. He has threatened to prosecute energy executives because of the high electricity prices - even though investigations have shown there was no wrong doing. Who would want to invest in building power companies in California if you've got the governor threatening them with prosection? The lack of additional power generation will continue to plague California, and probably be an economic drag. I don't think that is good for working people. Davis is a disaster. But hey, he is 100% for abortion and for "sensible" gun control. What could be more important?
23 posted on 04/07/2002 4:01:08 PM PDT by .38sw
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To: JH147
Oh, I forgot. Roads. Davis dedicated a new freeway a few months ago (I think near San Diego?) and announced it would be the last freeway built in California. I don't know about you, but I don't enjoy sitting in heavy traffic and bouncing across potholes and generally rough roads. Most working people drive to work.
24 posted on 04/07/2002 4:08:18 PM PDT by .38sw
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To: ElkGroveDan
"Has anyone done Davis' genealogy? Is he related to Al Capone?"

I would guess the reveraaaand jesse jackass, shakedown King of the World.

25 posted on 04/07/2002 4:34:09 PM PDT by gc4nra
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To: ElkGroveDan
No evidence shows a direct relationship between Davis' political decisions and his hunger for contributions.

Perhaps there's no "evidence", but the relationship is clear. Consider the recent stories about the 34% pay increase for prison guards, costing $1 billion more over four years, (while closing five successful non-union prisons) between receiving large donations from the California Correctional Peace Officers Association, or about the $1.1 billion retirement increase for teachers after the California Teachers Association gave many donations to legislative candidates (and to Davis).

Report links money to key legislation The Sacramento Bee | March 19, 2002 | Kevin Yamamura

Davis - A big prison paycheck San Francisco Chronicle | April 2, 2002 | Editorial

California Issues: Education, Energy, Economy, Ethics The Four E s really only one issue California Political Review | 4/2/02 | Senator Ray Haynes

26 posted on 04/07/2002 5:17:12 PM PDT by heleny
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To: ElkGroveDan
I come home after a joyous weekend of DixieLand Jazz and you have this waiting for me. Good thing wifiepoo let me have my first Adult Beverage in months. My usual dime store Cabernet would not get me through this thread.
27 posted on 04/07/2002 5:50:34 PM PDT by tubebender
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To: ElkGroveDan
BTW...We have not recieved any mailings from the Simon camp to date?
28 posted on 04/07/2002 5:53:44 PM PDT by tubebender
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To: Ernest_at_the_Beach
LOL at the cartoon. No mention of the $250k from enron to gray-out in this article.
29 posted on 04/07/2002 5:59:28 PM PDT by quimby
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To: tubebender
BTW...We have not recieved any mailings from the Simon camp to date?

If you signed up at the Simon web site you should be getting 2 or 3 emails a week, including their weekly report that goes out Saturdays.

30 posted on 04/07/2002 6:01:25 PM PDT by ElkGroveDan
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To: tubebender
Good thing wifiepoo let me have my first Adult Beverage in months

he he I was in the same situation. It was self-imposed due to Lent, but then like an idiot I had to go and tell the wife, so she helped me stick to it. Now that you mention it, I think I'll pop on down to my favorite brewpub tonight.

31 posted on 04/07/2002 6:04:12 PM PDT by ElkGroveDan
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To: ElkGroveDan
He has appointed many of his largest donors to seats on key advisory boards; other contributors have received major state contracts. No evidence shows a direct relationship between Davis' political decisions and his hunger for contributions. But a massive campaign treasury inevitably brings, at a minimum, the perception of conflicts of interest.

No evidence? The first sentence is the evidence. Clintonian words, Clintonian politics.

32 posted on 04/07/2002 6:55:33 PM PDT by hattend
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To: tubebender
We have not recieved any mailings from the Simon camp to date

The most recent ones I have are
"Simon For Governor Weekly Report for April 5, 2002," which I received on 4/6/02, and
"Simon Highlights Davis Failures on Budget, Jobs," which I received on 4/3/02.
Maybe you should try subscribing again.

33 posted on 04/07/2002 7:08:36 PM PDT by heleny
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To: Ernest_at_the_Beach
GREAT cartoon.
34 posted on 04/07/2002 7:47:19 PM PDT by Gophack
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To: ElkGroveDan
Davis is corrupt. Everyone in Sacramento knows that he shakes down businesses for donations -- or screws them in legislation. If a Republican did half of what Davis does, he would have been forced to resign and prosecuted.

Davis has got to go. At some point, money won't help.

35 posted on 04/07/2002 7:48:51 PM PDT by Gophack
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To: JH147

36 posted on 04/07/2002 8:01:17 PM PDT by let freedom sing
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To: Billy_bob_bob
His policies have DAMAGED every single one of the workers in these industries, yet they vote for him. Like lemmings, like automatons. Mind boggling.
It is mind boggling. Totally mind boggling.
37 posted on 04/07/2002 8:43:48 PM PDT by samtheman
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To: ElkGroveDan
At least we know Davis is a relgious man. He's going to praying like hell that there are no power failures this summer. If just one major power outage happens for any reason in LA or SF, even the Democrat kool aid drinkers will drop him.
38 posted on 04/07/2002 8:50:15 PM PDT by Hillarys Gate Cult
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To: tubebender; ElkGroveDan
I've received plenty of email updates from the Simon campaign, and I think they're very well done.

For paper mailings, which cost money, I think he's holding fire until closer to the election - which I think makes sense.

D

39 posted on 04/07/2002 10:36:10 PM PDT by daviddennis
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To: ElkGroveDan
Watch out for Perenchio. He's behind Univision and is a staunch supporter of bilingual education. Why? Because if we taught english immersion, people wouldn't watch his spanish language TV anymore!

I actually admired Perenchio's career until I learned that little tidit ... you can see he's spending like mad to keep bilingual ed, even though it's terrible for kids.

D

40 posted on 04/07/2002 10:40:01 PM PDT by daviddennis
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