Posted on 10/02/2006 9:51:29 AM PDT by PissAndVinegar
Eliot L. Spitzer's campaign account bulges with money from the Big Apple and from growing regions of the country, such as Texas and Southern California, where his checks bear the names of Spielberg, Streisand and Reiner.
Upstate New York has given him just 18 cents of every dollar.
New York's sky-high campaign limits let a California filmmaker, billionaire or movie star give more to a like-minded candidate in New York than they can give to a hopeful in their own state, or to a federal candidate for that matter.
In Spitzer they see a rising star who as governor can affect the business climate in New York City, speak up for gay marriage, stem cell research and abortion rights, and perhaps affect the partisan balance in Congress when New York redraws its House districts after 2010.
"Spitzer is the overwhelming favorite to become the next governor of New York, and is on everyone's watch list for national office," said an invitation urging the faithful to open their wallets for him at a San Francisco fundraiser in May.
But what does that mean for listless upstate? Will those millions distract the all-but-elected Spitzer from focusing on a region that lacks an economic engine like New York City's and needs overhauls in state law?
"Our limits are so high and our loopholes are so big, it's pretty easy for the voice of the electorate to get lost in that echo chamber of money," said Liam Arbetman, who researches campaign contributions for the Albany watch group Common Cause New York.
"It's not so much a failing of Eliot Spitzer for taking the money, it's a failure of the system to allow such high amounts," Arbetman said. "It's the failing of the system that kind of hurts upstate."
Spitzer has raised roughly $38 million - $24.5 million of it from the New York City metropolitan area, including Connecticut and New Jersey. About $6.4 million came from 43 other states. Upstate donors, more numerous than those in other states, gave him a similar amount, $6.7 million, led by the Hudson Valley and Capital District and its knot of lobbyists.
The jury is out on whether a Gov. Spitzer will cater to the interests that gave him such a commanding fundraising lead over Republican John Faso. Spitzer's staff says he will continue displaying the independence that made him a household name as attorney general.
"If most of his contributors are from New York [City], does that suggest he will be a better rep for the city? Absolutely not," said Spitzer spokeswoman Christine Anderson, who also said Spitzer wants to change New York's campaign finance laws and supports government financing of campaigns to level the playing field.
"He has always made his decisions irrespective of campaign contributions," she said. "His decisions are based on what's right."
Even in New York City, Spitzer has said his top priorities are to reform Albany and boost the upstate economy. But no matter how well intentioned he is, can he turn his back on his major donors?
"I think everybody is willing to admit that money buys access," said Kevin Hardwick, a Canisius College political science professor, asked to comment on the implications for upstate. "It may mean that people in other places will have more access than upstate New York, even people in other states."
What's meant by access? Donors get heard. Phone calls get returned. Sometimes it means a place at the table. Deputy Erie County Executive Bruce L. Fisher once worked for Paul Simon, the late Democratic senator from Illinois. "Paul Simon used to say, "If you gave me a hundred dollars, I'll try to get back to you. If you gave me a thousand dollars I'll get back to you that night,' " Fisher said. "Money does mean access."
New York lets individuals and limited liability companies give $50,000 in an election cycle to a statewide candidate facing a primary and general election, $50,100 if the candidate is a Democrat because of the party's enrollment edge. While corporations are limited to $5,000 to all candidates in a calendar year, any subsidiary can give $5,000 as well.
The Brennan Center for Justice at the New York University Law School says New York could halve its contribution limits and they would remain among the nation's highest.
Politicians need money to fuel their campaigns. But with early money, they build momentum and discourage challengers. Just as Mario Cuomo did before him, Spitzer tapped the lodes of Democratic money found in California, especially Los Angeles, Beverly Hills and San Francisco, which alone counts 20 billionaires.
Even before Gov. George E. Pataki announced he would not seek a fourth term, Spitzer had collected from Barbra Streisand; Don Henley, the Eagles lead singer who would eventually give $25,000; Alan F. Horn, the president and chief operating officer of Warner Bros. Entertainment; and a host of other Southern California interests. Spitzer would collect more over the months from filmmakers Steven Spielberg and Rob Reiner, actors Michael J. Fox and Ben Affleck, and the Norman Lear Trust.
By Primary Day, Spitzer had drawn more from California, $1.36 million, than from Erie and Niagara counties, $1.2 million. The amounts were bigger, too, averaging $2,800 for each California transaction to Erie Niagara's $1,030. Florida and Texas gave him roughly $1 million each.
"Why is a guy from Texas contributing to Eliot? That would be a fair question," said Thomas Ajamie, a Houston lawyer who specializes in recovering money for victims of dishonest business practices and gave nearly $11,000. "I handle these types of cases, in courtrooms or in arbitrations, so when I hear about a guy who worked in the government, who cared about investors, individual investors, and started reading about him . . . I started contributing to him."
From California and nationwide, money has poured in from insurers, investment firms, hedge-fund moguls, computer makers, Wal-Mart, rental car companies, racetrack operators, horse breeders, limited liability companies, real estate tycoons and property managers.
Spitzer's father, Bernard, made his fortune in real estate, and Eliot owns properties that he borrowed against for his unsuccessful first run for attorney general. Eliot Spitzer has "an understanding of the problems and importance of real estate as an industry," Steven Spinola, president of the Real Estate Board of New York, told the Real Deal, a monthly magazine about New York City real estate.
New York now has a pay-to-play culture. Over a two-year period earlier this decade, vendors who won state contracts gave $2.2 million to the state's elected leaders, according to a trio of watchdog groups.
This summer, the New York Daily News found Spitzer had taken more than $200,000 from companies bidding for the rights to run the Aqueduct, Belmont and Saratoga horse-racing tracks. The winning bidder will get a percentage of the $3.4 billion bet each year on horse races and a shot at part of the video lottery terminal business at the tracks.
Spitzer's staff has said he won't take money from a person or company with a pending business matter before his attorney general's office, but that doesn't mean he won't take money from anyone in an industry with a pending business matter.
The Spitzer campaign has accepted hundreds of thousands of dollars from the hedge fund industry, which he had investigated for the practice of after-hours trading in mutual fund shares. Hedge funds had capitalized on those trades while others were shut out.
Among the large hedge-fund donors was San Francisco's Barry Rosenstein, founder and managing partner of Jana Partners. He gave Spitzer $50,100, as did Rosenstein's wife, Lizanne, the most an individual can give a New York candidate for governor. Two limited liability corporations registered at the same address gave Spitzer another $20,000.
Spitzer certainly has collected money from upstate and the familiar milieu of givers to state leaders: law firms, trial lawyers, seasoned lobbyists, labor unions, developers and wealthy business owners crossing party lines, such as J. Patrick Barrett, the Syracuse-area millionaire who was chairman of the state Republican Party 16 years ago.
For Pataki, Barrett heads the committee deciding which entity should maintain the Aqueduct, Belmont and Saratoga tracks, but he said that when he had Spitzer's ear recently, he urged him to focus on upstate, especially Barrett's beloved Adirondacks region.
"He assured me he had a very genuine interest in developing the Adirondacks and Lake Placid," said Barrett, who gave Spitzer $50,000.
"And on a broader scale, he was very interested in job creation and development throughout upstate New York. Eliot's a very principled guy . . . I don't think that money, per se, is going to sway him."
Come on P&V, democrats and celebrities don't have to play by the same rules as the rest of us.
To me, it looks like the NYers are committing suicide.
This guy seems like he has the potential to be more damaging to the State of NY than Grayout Davis was to the State of CA.
On the other hand, Cuomo was elected and re-elected in NY, so what can you expect?
To any large company traded on Wall Street - pay up or be 'investigated'.
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