Let's stop for a moment look at one case of special interest lobbying involving Gov.
Arnold Schwarzenegger.
The governor recently turned down a request by
Australia's BHP Billiton Ltd. to build an $800 million liquefied
natural facility off the coast of Oxnard and Malibu. Schwarzenegger rejected the
project after the California Coastal
Commission and State Lands Commission both turned down the
proposal last month, and after fierce objections from environmentalists.
Throughout the battle, BHP and other natural gas producers engaged almost every political player closely connected to the Schwarzenegger
administration. In fact, no other lobbying campaign since the 2003 recall has hired as many Schwarzenegger friends than the LNG effort.
Not everyone worked directly for BHP. But the full-court press over the past three years included Schwarzenegger political guru Mike
Murphy and his company, Navigators, which worked on an LNG coalition to move public opinion on the subject; Marty
Wilson, the governor's chief fundraiser, who also worked on the LNG coalition; and consultant Joe Rodota, a
behind-the-scenes Schwarzenegger advisor since the 2003 recall. BHP hired a Los Angeles law firm that employs George
Kieffer, a Schwarzenegger friend and the personal attorney to Maria Shriver, and Richard Costigan,
the governor's former legislative affairs director. And they engaged Karen Skelton, a prominent
consultant in Sacramento and a Shriver friend.
And yet the governor turned down the LNG terminal. Isn't this exactly the opposite of what Schwarzenegger critics suggested would happen? Why?
Indeed, how do politicians make their decisions? Do campaign contributions buy votes from elected officials? Does pressure from lobbyists matter? The general assumption in Sacramento and Washington D.C. is absolutely yes yes yes, when it comes to money. Many corporations and unions believe that, say, a $250,000 contribution to support a candidate is a prudent investment, particularly if they can reap millions from tax breaks or public pension boosts.
A new search engine that tracks the contributions made to California politicians, Maplight.org, has opened a debate over what causes elected officials to make specific votes. To N.Y. Times technology columnist Davis Pogue, the Maplight database is so disturbing that he must conclude: "I can't quite figure out why these contributions are even
legal. Let the various factions explain their points till they’re blue
in the face, sure — but to cut checks for millions of dollars?" "Another mind-blowing example: from the home page, click 'California.' Click 'Legislators,' then click 'Fabian Nunez.' The
resulting page shows you how much this guy has collected from each
special-interest group — $2.2 million so far — and there, in
black-and-white type, how often he voted their way. Construction unions: 94 percent of the time. Casinos: 95 percent of
the time. Law firms: 78 percent of the time. Seems as though if you’re
an industry lobbyist, giving this fellow money is a pretty good
investment."
A few people on Pogue's blog agreed. One man wrote: "Let's stop calling them contributions and start calling them what they really are, bribes. Or how about kick-backs?"
But then political scientist Matthew Jarvis and others jumped into the debate. Jarvis said that "establishing CAUSATION is much harder" than simply juxtaposing a particular vote next to the amount of money from special interests. More: "The problem is the reverse direction of causation. If you were a
large corporation seeking to get certain policies passed, you could try
to bribe members of Congress to pass that policy (which is,
essentially, the accusation that is made about votes and campaign
contributions). Or, you could take the approach that what you’d rather
do is elect those who already agree with you. So, when you see a correlation between money and votes, ask
yourself: who ELSE would they give the money to? Those who are going to
vote AGAINST them?"
When it comes to pressure from lobbyists, why did Schwarzenegger reject the BHP terminal off the coast of Malibu?
It's possible the massive lobbying effort just went too far, hired too many Schwarzenegger friends, and was too public. BHP Billiton paid Manatt, Phelps & Phillips, the prominent L.A. law firm that includes Kieffer, about $2.7 million to lobby the governor's office, the Lands Commission, the Coastal Commission and the Legislature on the project over three years. It should be noted that BHP Billiton never gave a campaign contribution to Schwarzenegger or any elected official.
Perhaps the deal died because of behind-the-scenes pressure from other friends and advisors, such as
environmentalists Bonnie Reiss and Terry Tamminen. Perhaps Schwarzenegger really did believe the project would
contribute to global warming, harm marine mammals, ocean
views and birds near Channel Islands
National Park.
Perhaps he knew he would never eat lunch in Malibu
again.
(Photos:
Win McNamee/Getty Images; BHP-Billiton-LNG International via AP)
The state Fair Political Practices Commission has given up trying to limit donations to candidate-controlled ballot committees, such as Gov. Arnold Schwarzenegger's California Recovery Team. Chairman Ross Johnson says he's disappointed with recent court rulings, and now is looking to the Legislature for reforms. Good luck!
The courts have said that Proposition 34, which restricts donations to candidates, allows politicians to operate separate committees that can raise unlimited amounts of money. The donations can only be used for legislative "advocacy" or ballot-measure business - descriptions that permit all sorts of campaign-like activity that promote the individual candidate.
The California Recovery Team is still collecting huge donations that ostensibly help pay for the governor's private jet travel and other major expenses. (Among them, the California Assn. of Hospitals and Health Systems donated $100K last week, amid ongoing negotiations over health care reforms in the governor's office.)
"The intellectual inconsistency of the courts astounds me," Johnson said in a statement. "What represents the greater potential for the appearance of corruption, $3,600 to a candidate’s reelection committee or $100,000 to
a ballot measure committee controlled by that same candidate? The
answer is obvious: The appearance of undue influence comes from the
receipt of the contribution, not in how the money is spent!"
A ballot measure committee that was working to advance Schwarzenegger's special election agenda in 2005, Citizens to Save California, filed a lawsuit challenging the rules in February 2005.
Superior Court Judge Shelleyanne Chang ruled the commission lacked legal authority to impose contribution limits on candidate-controlled committees. A Court of Appeal upheld the ruling last December, and now the FPPC under Johnson has decided it will drop the case altogether.
UPDATE: So let's just recap: The governor's only major accomplishment from the 2005 special election was to assure unlimited political donations to ballot committees, two years after winning the recall on a promise of sweeping away special interests.
 Former New York Mayor Rudy Giuliani's birthday is May 28, but he's nevertheless holding two "birthday celebration" fundraisers two days later in California to collect money for his presidential run. U.S. Sen. Hillary Clinton is scheduled to raise money in the state the next day.
Giuliani donors who raise $23,000 for the campaign receive 10 tickets to a VIP reception and, according to the invitation, "PHOTOS and a Preferred table seating of 10 at the Birthday Lunch." Presumably this is where contributors will hear Giuliani's Speech about Fighting Terrorism and watch Giuliani Eat.
(UPDATE: A birthday luncheon is being held in Burlingame May 30, followed the same day by an evening reception at the Beverly Hilton, featuring comedian Dennis Miller.)
Giuliani - with the help of his buddy Bill Simon, the financier who lost to Gray Davis in 2004 - has rounded up some well-known Republican donors on his finance team. They include venture capitalist Tim Draper and Floyd Kvamme, and takeover artist T. Boone Pickens. Giuliani also has Steve Kram, Gov. Arnold Schwarzenegger's former agent, and Michael Huffington, on his team.
Former state treasurer Phil Angelides and the wealthy Tsakopoulos family of Sacramento are planning a fundraiser this month for U.S. Sen. Hillary Clinton's presidential campaign. Angelo Tsakopoulos, a real estate developer, was a major donor to Angelides' gubernatorial campaign.
A major fund-raiser planned with Gov. Arnold Schwarzenegger last night to raise money for the debt-ridden California Republican Party was canceled because it failed to generate enough interest, sources told Political Muscle. The official line from the state GOP is that Wednesday's fund-raiser in Sacramento was "consolidated" with another event planned for May 22 in Los Angeles.
The cancellation comes as the California Republican Party is making a significant internal shift with a new top staff and a new focus.
Chairman Ron Nehring of San Diego is considered more conservative than former chairman Duf Sundheim, who worked closely with Schwarzenegger for three years. Nehring has hired a new chief operating officer and is working to pull the state GOP out of a $4.5 million campaign debt.
To put it mildly, the ideological gulf between Schwarzenegger and the California GOP leadership is wider than ever. Schwarzenegger, who was the keynote speaker at the Republican National Convention in 2004, has since courted deals with Democrats and openly declared he doesn't care about complaints from his GOP "base."
Rank-and-file members also have grumbled that Schwarzenegger did little to help conservative candidates such as Sen. Tom McClintock. In addition, the state party was asked to pay a friend and aide to Schwarzenegger, Walter von Huene, more than $100,000 in consulting fees, even though there was little evidence he was doing work for the party.
Because the Republican Party helped Schwarzenegger so much in last year's reelection campaign, the governor promised he would be the star attraction at GOP fund-raisers this year.
Meanwhile, he has been busy raising money for himself. The San Jose Mercury News reported recently that "since January, Schwarzenegger has pulled in $3.5 million in three different political committees — an average of $700,000 a month in this non-election year. Additionally, more than 100 private donors — including AT&T to Chevron and Oracle — paid $2.7 million total into a non-profit that paid for the governor's two-day inaugural soiree."
California GOP spokesman Hector Barajas said Schwarzenegger is still scheduled for the May 22 California Governor's Gala in Los Angeles. Another GOP fund-raiser, without Schwarzenegger, is scheduled for Napa on June 1 and 2. The event, hosted by Assembly Republican Leader Mike Villines and Senate GOP leader Dick Ackerman, costs $7,500 for a day trip and $10,000 for an overnight at the posh Silverado Resort.
(Photo: Alex Wong/Getty Images)
Hollywood cash isn't just for Democrats. The Associated Press looked at the entertainment industry's donations to Republican presidential candidates, who are arriving in California this week for a debate at the Reagan Library. Rudy Giuliani has the highest-profile donors:
"Adam Sandler, who shares a love of the New York Yankees with Giuliani and
tapped him for a cameo in his 2003 movie 'Anger Management,' contributed $2,100. 'Frasier' star Kelsey Grammer and his wife donated $6,900.
Mark Vahradian, who produced 'Annapolis' for Paramount, gave $2,100.
Writer- producer Lionel Chetwynd, an Oscar nominee for co-writing 1974's 'The Apprenticeship of Duddy Kravitz,' gave more than $4,200. Brad Grey,
who helped the mayor negotiate a book deal, kicked in $4,200 to
Giuliani's campaign. Grey, the former executive producer of a Giuliani
favorite - the acclaimed HBO mob drama, 'The Sopranos,' also
contributed to Clinton and Sen. Chris Dodd, D-Conn."
U.S. Sen. John McCain scored mega-producer Jerry Bruckheimer and "Saturday Night Live" creator Lorne Michaels. "Romney had only a single donor in the
first-quarter report listed as an actor, Tamara Gustavson, though he
collected money from producers and writers," the AP reports.
The Simi Valley debate tomorrow is allowing the major Republican candidates to hold fundraisers to scoop up more California cash. McCain has a reception in Beverly Hills today, while Giuliani has events in L.A. and Orange County. Romney held a fundraiser last night in Sacramento, and is planning an appearance on "The Tonight Show With Jay Leno" tonight.
(Photo:
Kevork Djansezian/AP; Matthew Peyton/Getty Images)
The California Correctional Peace Officers Assn. has donated $100,000 to an initiative campaign that would alter the state's term limits law--and extend the power of Senate leader Don Perata and Assembly Speaker Fabian Nunez, both facing retirement from the Legislature.
Yesterday, the same day the $100K donation was publicly reported (PDF) by the union, Nunez and Perata unveiled a plan that would force 8,000 inmates into lockups out of state. The CCPOA, not surprisingly, hates this part of the Nunez-Perata prison overhaul--it takes away their best customers.
"We are going to do everything we can to point out the dangers of this plan," Lance Corcoran with the union told The Times. He said prisoners who don't want to move could create peril for officers: "We're going to have to fight them out of their cells," he said.
The CCPOA contribution to the Committee for Term Limits & Legislative Reform was made April 11, and reported yesterday.
No wonder U.S. Sen. Barack Obama is doing so well in fundraising. The presidential candidate from Illinois is sending campaign solicitations to reporters at their offices. (Pictured.)
Obama's solicitation includes a "Dear Friend" letter informing me he is running for president and promising to "rebuild an ethic of politics as broad as our nation's spirit," a business reply envelope, and a color brochure.
Obama's mass mailing is apparently directed at non-Democrats as well as members of his own party, since I'm registered decline-to-state. That's because independents can vote in the Democratic primary this year, unlike with the Republican Party and my dead grandmother. A year after she died at age 94, she is still receiving fund-raising mail from Obama's campaign. For the record, I'm not sending Obama any money and neither is my grandmother.
The Center for Responsive Politics reports that Obama raised $4,156,450
in the first quarter from California, leadings all other candidates in
the cities of Merced, Oakland, San Diego and Santa Cruz. But U.S. Sen.
Hillary Clinton was first in the state, with more than $5 million
overall.
A state-by-state breakdown of presidential campaign contributions shows Democrat Hillary Clinton and Republican Mitt Romney cleaning up in California compared to their counterparts, and the entertainment industry favoring Clinton more than Barack Obama as well. LA Observed. And Center for Responsive Politics.
UPDATE: Also check out the city-by-city rankings (click on the "Metro" tab.) Rudy Giuliani does fairly well in smaller areas such as Salinas, and he leads Republicans in the Riverside-San Bernardino sprawlopolis. John Edwards takes Sacramento and Chico, and Obama does well in Oakland.
Since we're getting a celebrity fix today, W magazine takes a look at the heavy hitting political consultants in Hollywood. Celebrities aren't making up their own minds about politics, folks - they have people for that. LA Observed has the rundown, but here is a snippet from W:
"Barbra Streisand has long been advised by Marge Tabankin, who came to
L.A. after having once worked in the Carter administration. For years,
Steven Spielberg has called upon Andy Spahn, who once worked for the
Democratic congressional and senatorial campaign committees, while Rob
Reiner (pictured) works with Chad Griffin, a former press aide in the Clinton
White House who first met the director while showing him around the
West Wing during a research trip for American President. 'You have a lot of people who are very wealthy and very concerned
about different aspects of society, and they want to use their money
and influence in the best possible way,' Reiner says." (Photo: Rich Pedroncelli/AP)
Spiderman, Zoolander and Mr. Spock went for Barack Obama, but Hillary Clinton can count on Hugh Hefner and Marla Maples. That's the news from the freshest presidential campaign reports, which show a long list of Hollywood donors to seven major candidates.
A few contributors sat on the fence, such as Steven Spielberg, who donated to both Clinton and Obama. The Illinois senator seemed to attract a hipper crowd than the New York senator, whose celebrity stable looks straight out of a Trousdale Estates cocktail party, circa 1986.
Here's the list, culled from The Hill and the New York Post:
- Clinton:
Candice Bergen,
Christie Brinkley (pictured),
Chevy Chase,
Hugh Hefner,
Christine Lahti,
Barry Manilow,
Rob Reiner, Marla Maples,
Rosie O'Donnell,
Jerry Springer,
Elizabeth Taylor, Steven Spielberg, Timbaland, Barbra Streisand.
Obama:
Jennifer Aniston, Steven Spielberg, Jackson Browne,
Morgan Freeman,
Tom Hanks,
Dennis Haysbert,
Tobey Maguire (pictured above),
Zach Braff, Angela Bassett, Barry Manilow,
Branford Marsalis,
Eddie Murphy,
Ed Norton,
Ben Stiller,
Gene Wilder, Leonard Nimoy.- Christopher Dodd:
Edie Brickell,
Michael Douglas,
Steve Martin,
Lorne Michaels,
Paul Newman,
Elisabeth Shue,
Paul Simon,
Joanne Woodward.
- John Edwards:
Larry David,
Seth Green (pictured),
Don Henley.
- Dennis Kucinich:
Mark Ruffalo
- Bill Richardson:
Michael Douglas,
Rosie O'Donnell,
Rob Reiner
- Rudy Giuliani:
Kelsey Grammer,
John O’Hurley,
Adam Sandler,
Ben Stein.
Seth Green?
Anyway, hat-tip to Wilshire & Washington, which also featured this item: "Christophe, Deja Vu?: According to The Politico, the Edwards campaign paid $400 for a haircut at Beverly Hills-based Torrenueva Hair Designs on Feb. 20 and another $400 on March 7."
(Photos: Ed Betz/AP;
Franck Robichon/EPA;
Charley Gallay/Getty Images)
 The first big campaign contributions are rolling in for an initiative that would alter California's 1990 term limits law, allowing lawmakers to serve 12 years in either house. The initiative, which also would extend the power of Senate leader Don Perata and Assembly Speaker Fabian Nunez (pictured), received a nod of approval yesterday from AG Jerry Brown.
Not surprising, the donations are coming from public employee unions. On Monday, the California State Council of Service Employees Issues Committee, representing one of the largest unions in the state, contributed $200,000 to the Committee for Term Limits and Legislative Reform. Another $50,000 came from the California School Employees Assn., which represents the cafeteria workers, attendance clerks, office staff, janitors and other "classified" employees.
View PDF filings of contributions here and here. It takes about $1.5 million to place an initiative on the ballot. The term limits effort is expected to eventually attract many millions - from all corners of the establishment, not just unions.
(Photo: Rich Pedroncelli/AP)
News Corp. honcho Rupert Murdoch and his wife, Wendi Deng, are hosting a fundraiser Thursday night in New York for Gov. Arnold Schwarzenegger. Media giant News Corp., which operates Fox News, 20th Century Fox and the N.Y. Post, has been a generous donor to the governor in the past. (Through the U.S. company, News America Corp.)
Schwarzenegger travels to Washington D.C. on Wednesday to give a speech on global warming, then heads to Manhattan.
Murdoch's properties have not always been kind to Schwarzenegger. In 1988, a British tabloid owned by Murdoch, News of the World, printed a story claiming Schwarzenegger once admired Adolf Hitler and held anti-Semitic views. Schwarzenegger sued the tabloid and the writer, forcing an apology and winning damages in 1989 and 1993.
The Murdoch dinner is one of a dozen events planned through June by the governor's central fundraiser, Renee Croce. Most of the receptions and dinners are scheduled for private homes, including at Schwarzenegger and Maria Shriver's Brentwood estate on April 25 and June 6 for high-dollar donors.
The governor also has two Gala Unity dinners scheduled to for the California Republican Party - May 9 in Sacramento and May 22 in Los Angeles. The governor has promised to help the GOP retire a $4.6 million debt left over from the 2006 election, after it spent about $20 million on a get-out-the-vote campaign.
The more intimate money-raising affairs include dinner May 10 at the Los Gatos home of Robert Emami, the president of ROEM Corp., a developer, and a cocktail reception April 18 at the home of regular donor Alex Spanos, the owner of the San Diego Chargers and a developer as well. On May 18, TV producer Andy Heyward and his wife, Amy, are hosting a reception at their Los Angeles home; the Heywards also served on the host committee for a Hillary Clinton fundraiser last month. Events in Manhattan Beach, San Diego, the Inland Empire and Los Altos also are planned.
Meanwhile, the SF Chronicle notes that Schwarzenegger's "Pimp My Ride" appearance has a connection to a major donor.
(Photo: Chris Pizzello/AP)
Large-scale campaign contributions continue to roll into Gov. Arnold Schwarzenegger's campaign committee, the California Recovery Team. Even though the governor won re-election last year, the committee pays for "legislative advocacy" - promoting ballot measures and the governor's travel when he speaks about his Capitol agenda.
Since our last report, Schwarzenegger has received a $25,000 donation from Passages Malibu - the lavish addiction treatment center where oil heir Brandon Davis reportedly stayed. The center, operated by a father-and-son duo, offers intense counseling from a 10-person team for a reported $40,000 a month fee.
Although well-heeled clients pay their own way at Passages, the governor recently called for a $25 million cutback in funding for Proposition 36 programs, which provide drug treatment instead of jail time for offenders.
In addition, shopping center magnate Rick J. Caruso added $100,000 to Schwarzenegger's account. William E. Bloomfield, whose Web Services company provides laundry machines, donated another $200,000. His wife had already pitched in $100,000. And Howard Leach of San Francisco, the former ambassador to France, added another $25,000.
Since March 9, the committee has raised $712,700.
In addition, a newly created Schwarzenegger "officeholder" account - which can raise $200,000 a year to pay for the governor's expenses - received $45,000 in donations from drug maker GlaxoSmithKline Inc., Disney, the Western Manufactured Housing Communities Assn., and William Lyon Homes.
Sam Zell - the new billionaire owner of this blog, the L.A. Times and other Tribune Company properties - has contributed to a handful of political candidates in California, including Gov. Arnold Schwarzenegger during his special election campaign nearly two years ago.
On the national stage, the Chicago property magnate appears to be decidedly post-partisan. Since the 1990 election, Zell and his family have given $181,500 to
federal campaigns, parties and PACs, 49% to Democrats and 47% to
Republicans, LA Observed says.
But Zell, who has a home in Malibu, has dabbled in California politics as well. He donated $7,429.33 to Schwarzenegger's political fund, the California Recovery Team, in June 2005. That's about when the Republican governor was amping up a November special election with four initiatives that eventually failed. The exactness of the amount suggests that Zell helped host a fund-raiser for Schwarzenegger, who has occasionally traveled to Chicago to collect cash from donors.
In 2001 and 2002, Zell gave a total of $6,000 to Richard Riordan, the former Republican mayor of Los Angeles, for his campaign for governor. And Zell donated $1,000 to Democrat Steve Westly's state controller campaign in 2002. Search for his donations here.
UPDATE: Zell's Equity Residential and Equity Office each gave $10,000 to the California Recovery Team in 2005, and those two companies also donated $5,000 apiece to Californians for Schwarzenegger 2006, the governor's reelection committee. In addition eight Zell employees have donated a total of $8,200 to Schwarzenegger's campaigns.
(Photo:
M. Spencer Green/AP)
Afraid political donors won't give the maximum amount at your fundraiser? Invite a guest of honor who could be packing heat.
U.S. Sen. Barbara Boxer (D-Calif.) isn't running for re-election until 2010, but she's already booked a fundraiser at Ron Burkle's lavish estate scheduled for this Sunday, Wilshire & Washington reports. The Beverly Hills event will feature Sen. Jim Webb of Virginia as the guest of honor. Despite a Washington D.C. gun law against anyone possessing weapons, Webb's executive assistant was arrested Monday for carrying a loaded gun that apparently belonged to Webb into the Capitol.
 By
Wednesday, when President George W. Bush spoke at the Radio and
Television Correspondents' Association dinner, he was joking: "And I'd like to thank Senator Webb for providing security."
Meanwhile, Wilshire & Washington wonders why Boxer would hold a fundraiser four years before she's up for re-election. Perhaps she sees the shadow of Gov. Arnold Schwarzenegger, who nevertheless has said he's only focused on being governor and not unseating Boxer.
In addition, House Speaker Nancy Pelosi is hosting a $25,000 fundraiser at the home of Barbra Streisand on April 12 for the Democratic
Congressional Campaign Committee. "Will Streisand sing?" W&W asks. "The invite says only, 'musical performance with David Foster and special guest.' "
(Photo:
Chip Somodevilla / Getty Images; Karen Bleier / AFP-Getty Images)
The liberal Courage Campaign has launched a new website aimed at tracking presidential candidates that use California as a cash ATM rather than talking about "our issues." Gov. Arnold Schwarzenegger has been selling the same idea - making sure the national candidates are asked tough questions about California.
I'm a bit skeptical - I think presidential candidates do talk about the issues. And what is the functional equivalent in California of an ethanol subsidy to an Iowa voter? Offshore oil drilling perhaps. Otherwise, California voters tend to care about the same things that other voters care about: immigration, health care, traffic, the environment. Still, it does feel cheap when presidential candidates hold California fundraisers without a single public event. Check out ATM Watch, inaugurated by Assembly Speaker Fabian Nunez (pictured).
 Whoops.
Art Torres, the chairman of the California Democratic Party, says he will not attend a planned roast for Duf Sundheim, the former chairman of the state GOP, after discovering the private event would also raise money for the California Republican Party.
Democratic spokesman Roger Salazar said Torres agreed to appear at the Sundheim roast as a professional gesture, but he "would absolutely never attend a fund-raiser for the Republican Party."
Torres (pictured below) was unaware the reception was a $250-a-person fund-raiser until contacted by Political Muscle. "This was represented to him as a friendly roast for his former sparring partner," Salazar said, "but they never sent us the invitation."
The GOP roast for Sundheim, who stepped down this year after four years as chairman, is scheduled for April 14 at the Escondido home of Kristina and Larry Dodge. The Dodges run the American Sterling Group, a conglomerate with interests in banking, insurance, real estate and entertainment. Other roasters include former Assembly Republican leader Scott Baugh of Orange County.
 Hector Barajas, GOP spokesman, confirmed the event would raise money for the Republican Party. Barajas said Torres' staff was informed the April event would be a fund-raiser--a fact that should have been otherwise obvious, he said.
"It's a roast of Duf in the home of a major donor for the California Republican Party. My understanding is this had been agreed to in December." Barajas said Torres is still welcome, if "he wants to raise money for the Republican Party."
Phil Angelides raising money again. Not so much.
UPDATE: Julia Rosen looks at Angelides' recent effort and concludes: "The ask was dumb, the execution horrible and the response tepid. It
was painful to watch."
 "At (Ron) Burkle's home, where guests dined in a tented lawn and ate a dinner of chicken and mashed potatoes, Hillary Clinton was introduced by Mary Steenburgen, a longtime friend and supporter. Organizers played a song that Merle Haggard recorded, 'Let's Put a Woman in Charge.' "
Also, Barbra Streisand says: "I don't like microphones." Variety.
Afterward, Dan Morain reports, Clinton planned fund-raisers in Woodside and Redwood City. "The first is being hosted by Susie Tompkins Buell, founder of the Esprit clothing line, and Cisco Systems counsel Mark Chandler; the second by Oracle Corp. President Charles Phillips."
(Photo: Ethan Miller / Getty Images)
Three months after his inauguration, Gov. Arnold Schwarzenegger continues to receive large donations to his campaign-related committees.
The California Recovery Team reported $275,000 in contributions this week, including $100K from Paula Kent Meehan. In the early 1960s, the Beverly Hills entrepreneur took $3,000 she made from appearing in a Hamm's Beer commercial and built the Redken haircare empire with Jheri Redding. Another $100K came from Margaret M. Bloomfield, whose Web Service Co. is a major supplier of laundry machines. Home builder Eli Broad sent $50,000.
This should allow them access to the governor's home for a private cocktail party and dinner. The governor's office says repeatedly that campaign donations never influence Schwarzenegger's decisions on public policy. Julie Soderlund, the governor's spokeswoman, said last week that private meetings with donors are a chance for the governor
to "present his vision for California, not the other way around."
The governor also collected some cash for his regular campaign committee, Californians for Schwarzenegger 2006, during a fundraiser in San Antonio. The governor was in Texas on Tuesday for a ceremony where telecom giant AT&T donated $500,000 to a charity he co-founded, After-School All-Stars. The chairman of the charity, former San Antonio mayor Henry Cicneros, also donated $5,000 to Schwarzenegger's campaign committee.
The governor has received $5,000 donations in recent weeks from executives at AT&T, which successfully lobbied California to allow it access to the $5.3 billion cable market, the Bee reports. The money helps the governor retire campaign debt.
Another $5,000 donation came from Tesoro, the oil refiner with major operations in California. Company CEO Bruce Smith spoke to the National Petrochemical & Refiners Assoc. this week in San Antonio. In his keynote address to the annual meeting, Smith spoke about regulations to curb global warming, including those now being written in California, and said: "It is vital that our voice be heard and not overlooked."
(Photo: Dino Vournas / Reuters)
Get ready for another onslaught of political money-grubbing in Los Angeles. U.S. Sen. Hillary Clinton and John Edwards have back-to-back fundraisers scheduled Friday and Saturday with industry types and other Southern California players. Wilshire & Washington has the lowdown on the guests.
Clinton's fundraiser Saturday takes place at Green Acres, the lavish former Harold Lloyd estate now owned by supermarket mogul Ron Burkle (pictured). He talks about his relationship with the Clintons and the Saturday fundraiser in the NYT.
(Photo:
Keith Srakocic / AP)
Last year, Gov. Arnold Schwarzenegger effectively opened up California's $5.3 billion cable market to Verizon and AT&T. His signature on the heavily lobbied legislation shifted control of the lucrative market from municipal governments to the California Public Utilities Commission, which now claims its authority to regulate the cable-video market may be limited.
Schwarzenegger's signature on the legislation - and the overwhelming approval by the Democratic Legislature - followed one of the most expensive lobbying campaigns in California history over a single bill.
AT&T in 2006 gave $744,614 to political candidates and campaigns, including $44,600 to Schwarzenegger, the Associated Press has reported. The company spent $23.6 million to hire lobbyists and pay for television commercials promoting the cable bill. Verizon and its employees contributed $395,347 to political
candidates and campaigns, and the company spent $2.3 million on
lobbying expenses.
But there was one more payment to make. Yesterday, Schwarzenegger left his job in California to attend a ceremony in San Antonio, where AT&T donated $500,000 to the governor's charity, the After-School All-Stars. Schwarzenegger is honorary chairman of the charity, and does not receive an income from its operations, although his friends do.
Under campaign finance rules, the telecom giant could not have given Schwarzenegger's reelection campaign more than $22,300. As the Times reported earlier, Schwarzenegger has used a web of nonprofit groups that allow him to collect donations without restrictions and delay the release of the source of his donors. One foundation even paid the rent on his hotel room in Sacramento, thanks to developers and farmers.
AT&T and Verizon say their donations are necessary because state government has so much power over their business interests, and they need to be engaged with lawmakers and the public. The governor's office, meanwhile, says political donations never influence Schwarzenegger's decisions.
(Photos: William Luther / San Antonio Express-News via AP)
A prankster in the Capitol is circulating a doctored fund-raising invitation that lists Senate leader Don Perata as the star of a golfing weekend for pro-business "New Democrats" and their contributors.
Political Muscle and Perata's office have received a few phone calls asking why the Senate leader would be so blatantly hypocritical. On Monday, Perata made a big stink about three Senate Democrats who attended their own pro-business fundraiser, locking them out of their offices as punishment.
Read previous posts about this here and here and here.
But alas, someone took the original fund-raising invitation for the Democrat-friendly group, Californians for Jobs and a Strong Economy, and added Perata's name to the top. It's now circulating around the Capitol and being taken seriously by some. "It's clearly just a joke for word-of-mouth circulation," said Alicia Trost, Perata's spokeswoman. "We have absolutely no association with the event."
Assemblymembers Nicole Parra, Joe Coto, Mike Davis, Cathleen Galgiani and Jose Solorio are inviting contributors to the Friday, April 27, "New Democrats Cup" at the Ritz-Carlton in Half Moon Bay. For $40,000, donors receive lunch, a round of golf, dinner for four, four rooms at the Ritz-Carlton, along with a second round of golf for four on Saturday. More exclusive access to lawmakers, for a price.
(Photo: Rich Pedroncelli / AP)
Hank Dempsey in the California Law Review has written a detailed critique of ballot-measure committees controlled by candidates. These tax-exempt groups collect unlimited donations and often act as a sort of legal slush fund for candidates. Schwarzenegger has his own, the California Recovery Team, which is selling dinner and cocktail receptions at the governor's Brentwood mansion for as much as $250,000.
Dempsey, a third-year UC Berkeley law student, concludes: "Unless campaign finance law is permitted to evolve with changes in the political environment, California voters' faith in representative government may dissipate even further. ... The initiative fund-raising loophole ... must be addressed if we are to reassure the 78% of California voters who in 2005 believed their state government was 'run by a few big interests.' "
Check out Dempsey's California Law Review article here (PDF). Hat tip to Rick Hasen, who also has written extensively on this subject.
The financiers and business groups that work with California's wealthy public pension system and elected officials operate sort of like they did at Rick's Cafe Americain in "Casablanca."
Any suggestion of gambling in the joint would be shocking, shocking.
Last year, the $153 billion public teacher pension fund, CalSTRS, voted to stop doing business with financial firms that make large-scale campaign contributions to board
members - including the state treasurer and controller - or the
governor, who has several appointees on the board.
The limit was set at $1,000, which is fairly severe compared to what they've been used to. In fact, investment
banks, venture capitalists, hedge funds and financial advisory
services gave at least $27 million in 2006 to political campaigns, including the treasurer, controller and governor, the Times' Evan Halper and Dan Morain discovered last year.
Now, the details of the regulations are being written in preparation for a final vote, and business lobbyists have launched a full-scale assault to water down or eliminate the CalSTRS contribution limits.
Halper dug up some of their arguments against the proposed changes. The central theme is that CalSTRS cannot name a single instance where a campaign contribution influenced a board decision. And they say giving money to politicians on the influential board is an exercise of political rights. The Association of California Insurance Companies wrote the board:
The California Bankers Association complained that the contribution limit would "force persons and entities in this state to largely forfeit these rights as the price of doing business with CalSTRS or even contemplating doing business with CalSTRS."
Where are the ordinary citizens arguing for these free-speech rights,
the ones who have no financial interests before the pension board or
elected officials in Sacramento? There are none. The people fighting to
make large-scale donations to CalSTRS board members all have business
before the state.
The biggest assault came ...
Read on »
Gov. Arnold Schwarzenegger and Maria Shriver are selling cocktail parties and dinner at their private Brentwood home to donors who contribute as much as $250,000. There is no Lincoln Bedroom at the Schwarzenegger-Shriver mansion, but they have a nice swimming pool and 11 bathrooms.
 A fund-raising invitation obtained by Political Muscle invites well-heeled donors to a cocktail reception April 25 at their Mandeville Canyon estate, followed by another reception and dinner June 6 for donors who contribute either $100,000 or $250,000. The governor has divided his donors into "executive" and "advisory" committees for his California Recovery Team, a political fund that can accept unlimited donations.
The required contribution to visit the governor's house ranges from $25,000 to $250,000 for the highest level, a Founding Member. Read invite here (PDF).
Included in the price: access to the governor. The biggest donors are being invited to four additional private meetings with Schwarzenegger, according to the invitation. "Members will also be included in regular conference calls with the governor and leading and well-known Californians from the public and private sector," the invite says. In the past, Schwarzenegger's sale of private meetings to donors has been questioned by campaign ethics watchdogs, who ask: Can a special interest group meet with the governor without having to give a donation? (Yes.)
The June 6 fundraiser at his home contradicts Schwarzenegger's desire to ban fundraising while he is negotiating with the Legislature on the multibillion-dollar state budget. June is the most heated month for budget negotiations, when scores of lobbyists seek favors from the administration and lawmakers.
Julie Soderlund, the governor's campaign committee spokeswoman, said the private meetings with wealthy donors are a chance for the governor to "present his vision for California, not the other way around." In other words, the meetings are not designed for donors to seek special treatment for their pet issues, but to hear him give a speech and talk about his agenda.
 Robert M. Stern, president of the Center for
Governmental Studies, said the amounts being requested are "staggering" and
clearly open doors closed to ordinary people. He said such large donors
are "going to get immediate access" if they have a problem with the government.
"It has to be worthwhile for people to go," Stern
said about the dinner and receptions. "I don't think people are going to pay
$250,000 just to listen to the governor. … If I pay $250,000 and I call the
governor up, I am going to get a call from him or his chief of staff or a
person who has to deal with my problem."
Schwarzenegger and Shriver aren't reclusive -- they frequently open their home to political guests. Assembly Speaker Fabian Nunez and Senate leader Don Perata have been invited there. But it's rare for the couple to open their home to donors.
Why is the governor raising money only a few months after being re-elected and with no immediate plans to run for another state position?
For one, he still has considerable expenses. Schwarzenegger's private jets cost hundreds of thousands of dollars to lease. The 501(c)4 California Recovery Team can accept unlimited donations, unlike the governor's re-election campaign account, and the money can be used for his jet as long as he's flying somewhere talking about his policies. Soderlund said the CRT will pay for "legislative advocacy" -- helping the governor sell his agenda in Sacramento, from health care reform to rebuilding the state's infrastructure.
(Photo: Brian Baer / Pool - Getty Images)
 Republican presidential candidate Rudy Giuliani is in Brentwood today for a fund-raiser at the home of the former ambassador to Finland and the European Union, Rockwell Schnabel, and his wife, Marna. Industry types expected.
A little about Schnabel (pictured) from Mother Jones: He's a venture capitalist in information technology and communications, and he's worth an estimated $600 million. As a Commerce Department official appointed by President George H.W. Bush, he helped deliver $4.5 million in aid to Los Angeles after the Rodney King riots.
He has written a book about the European Union becoming the next superpower. A pillow in his Brentwood home has this phrase embroidered on it: "If you can't dazzle them with intelligence, bluff them with nonsense."
The California Clean Money Campaign and California Common Cause are serving as hosts to a conference on "the benefits" of the public financing of campaigns in Pasadena and San Jose this month. The Center for Governmental Studies, Lake Research Associates, the L.A. Ethics Commission, the New York City Campaign Finance Board, New York University's Brennan Center and San Diego State University are participating.
 U.S. Sen. Barack Obama has just announced his next big California fund-raiser, scheduled for March 17 at the tony Mark Hopkins Hotel in San Francisco.
On his last visit Feb. 19-20, Barack attended a few small money-raising events in the Bay Area, but sucked up most of his cash in Los Angeles, at the Beverly Hilton and David Geffen's estate. And he organized a public rally in an ethnically diverse neighborhood.
Obama collected an estimated $2 million on his last California trip, but he reportedly remains behind U.S. Sen. Hillary Clinton in the money-raising game. She expects to raise at least $60 million in 2007 alone.
 A source sent Political Muscle Obama's newest California fund-raising pitch. It asks for "chairs" to raise $100,000 for Obama before March 31. Co-chairs are asked to raise $50K from their friends, family and acquaintances, and a lowly host needs to find $25K for his presidential campaign. Visa and Amex accepted.
So far, the chairs of the March 17 event include Steve Westly, the former state Controller and eBay millionaire who ran unsuccessfully for governor last year; Bill Orrick, the Silicon Valley mega-attorney; Hummer Winblad venture capitalist Mark Gorenberg; techie and political activist Wade Randlett; Silicon Valley attorney John Roos; and San Francisco attorney Jeffrey L. Bleich.
(Photo: LM Otero / AP)
Read on »
Presidential candidates don't just come to California because we're rich. They come because we spend more money on national campaigns by proportion than any other state. Dan Morain cataloged the examples: 
"A UCLA linebacker shells out $11,100 to help a Republican senator in Pennsylvania. A businessman from the small Northern California town of Eureka spends $515,000 to defeat a powerful Democrat in South Dakota. A Silicon Valley couple funnels cash to elect Democratic secretaries of
state in swing states like Ohio who will oversee voting in the coming
presidential election"
That's the gravy. Here's the potatoes: "Californians spent at least $502 million on federal campaigns in the
last four years, federal campaign records show — 24% more than
runner-up New York and about 13 % of all federal campaign funds raised
nationally."
Read the story here.
"The voters almost feel like they have a duty to reject that kind of endorsement. They're thinking, 'What do I care what that movie star thinks?' I'm going to make up my own mind."-- Art Torres, the chairman of the California Democratic Party, speaking about the political obsession with Hollywood and its money.
Barack Obama spent about 25 minutes lecturing Hollywood donors about their "enormous power" and giving his stump speech. Jennifer Aniston found him "lovely." Obama collected about $1.3 million at the event. Read the "pool" report from Carla Marinucci of the S.F. Chronicle after the jump.
Read on »
 California is preparing for a blitz of Democratic presidential candidates over the next several days to scoop up some cash and spark some media interest as the state prepares for its early February primary.
Republicans are eying the Golden State as well. Rudy Giuliani just left the state, but U.S. Sen. John McCain is expected next week in Los Angeles to promote Gov. Arnold Schwarzenegger's global warming policies and raise some money. McCain's chief strategist, John Weaver, told Politico that California is "a golden opportunity for the GOP to reclaim the national mantle," and asserts that Arizona senator "is the one guy who can do this while holding the base together."
U.S. Sen. Barack Obama is in the Bay Area for a fund-raising reception Monday at the Westin St. Francis Hotel, billed as a tribute to U.S. Senator Barbara Boxer "in honor of her 30 years of service." Tuesday, Obama is holding a 2 p.m. rally at the Rancho Cienega Sports Complex in Los Angeles.
Afterward, there is a private reception with Hollywood players David Geffen and Jeffrey Katzenberg at the Beverly Hilton Hotel, followed by a private dinner at Geffen's Malibu estate for donors who have committed to raising $46,000 from 20 people.
 (Obama then heads back to Iowa, flying right over a presidential candidates' forum in Nevada that other Democrats are attending. Former First Lady Nancy Reagan has invited GOP candidates, meanwhile, to debate May 3 at the Ronald Reagan Presidential Library in Simi Valley.)
U.S. Sen. Hillary Clinton is meeting with Google executives next Friday and attending a luncheon fund-raiser at the Sheraton Palace Hotel hosted by Susie Buell, co-founder of Esprit clothing, real estate mogul Walter Shorenstein, Emily's List and financiers Tom Steyer and Kat Taylor.
About 150 people have signed up for a fund-raiser tonight at the home of venture capitalists Andy and Deborah Rappaport to raise money for former U.S. Sen. John Edwards, the Mercury News reports. Edwards also has scheduled a Los Angeles event next week hosted by Korean-American developer Chris Pak and a Hollywood soiree in early March at the home of Endeavor's Adam Venit and co-hosted by producer Armyan Bernstein, Washington&Wilshire says.
Iowa Gov. Tom Vilsack is doing the "Tonight Show" tonight in Burbank. New Mexico Gov. Bill Richardson travels to the Bay Area on Tuesday for meetings with supporters. U.S. Sen. Joe Biden of Delaware has an L.A. fund-raiser scheduled for next Wednesday. And U.S. Sen. Christopher Dodd of Connecticut has a Thursday luncheon scheduled for Prego Ristorante in Irvine.
(Photo: Darren McCollester / Getty Images; Gerald Herbert / AP)
Rick Hasen of Loyola Law School, California's resident expert/blogger on campaign finance reform, performs some useful fear-mongering about a case headed to the U.S. Supreme Court. The outcome could potentially "increase corporate dominance over election
campaigns and make it easier for stealth donors to hide their true
identities. And that is something we all should fear." "What's really at stake is whether General Motors and
the AFL-CIO will get to spend millions from their treasuries on TV and
radio ads likely to influence the outcome of federal elections, and
ultimately whether they and wealthy individuals funding these ads who
want to shield their identities from public scrutiny will get a
constitutional right to do so."
Get scared by reading his article here.
Assembly Speaker Fabian Nunez has a combined $7.1 million on hand. "Not bad for a politician who
is barred from seeking reelection under the current term limits law." Capitol Weekly. "In his Assembly account, the Speaker has $5.47 million, $4 million of
which came in a "rebate check" from the state Democratic Party. Because
the money was moved through the party, it's impossible to track the
original source of those funds."
 Couldn't get enough of that fantastic 2006 race for governor? Do you miss those hilarious stories about "typical Phil" and "hot-blooded" Latinas?
You can preserve those heartfelt memories with Schwarzenegger "Protecting the California Dream" merchandise. The governor is having a fire sale to dump all the unwanted goods on joinarnold.com, and raise a little money.
An urgent notice went out this week to Schwarzenegger supporters asking them to purchase Arnold swag, which is "now commemorating the governor's historic reelection campaign. ... A few items are already gone, so visit the store now and be sure the pass this 'End of Days' notice along to your friends and family."
Hurry, the sale ends Dec. 29 to make way for "Arnold for Board of Equalization" merchandise.
 To get the full flavor of the glorious awfulness of political fundraising in California, I only have to travel a few feet to the desk of colleague Dan Morain. On the wall behind his cubicle in the Sacramento bureau, Morain keeps invitations to money-raising events that have been hosted by politicians over the years.
Who wouldn't want to have spent Valentine's Day with Sen. Carole Migden for $1,000 per person? Or travel to Las Vegas with Republican leaders Dick Ackerman and Kevin McCarthy with overnight accommodations at the MGM Grand? How about a $5,000 "couple's package" with Sen. Abel Maldonado to recreate the winery-whinery movie "Sideways," with a two-night stay at the Windmill Hotel in Buellton and dinner at the Hitching Post?
Another $5,000 would have bought VIP seating at the Hollywood Bowl to see the Rolling Stones with Senate leader Don Perata. Before he was ousted as Assembly Republican leader, George Plescia hosted a "Texas Hold 'Em & Reception" poolside at the Hyatt Regency Sacramento for another $1,000. Good times.
 We're bringing you this cornucopia of excess in honor of U.S. Rep. Richard Pombo, the Bay Area "farmer" who is leaving Congress soon to pursue other goals. Pombo is the outgoing chairman of the Committee on Resources, the folks in charge of protecting our wondrous environment.
So it would be natural that in 2004 Pombo would host a $5,000-a-person fundraiser in South Dakota for his political committee, the fantastically named RICHPAC, where donors could hunt buffalo, pheasant and delicious prairie dogs.
We're going to miss you, Richard Pombo.
(Photos: Robert Salladay / LAT; Chris Richards / AP)
A few things for Saturday:
- Gov. Arnold Schwarzenegger wins court ruling allowing unlimited donations to his ballot measure committee. Ruling seen as "gutting" contribution limits, but court says Fair Political Practices Commission overstepped authority.
- L.A.'s Richard Alarcon is "born to run." Editorial says "ambitious politicians are hardly uncommon. But Richard Alarcon seemingly craves every office."
- Lt. Gov. Cruz Bustamante is a film buff. Filmmaker overwhelmed by honor.
- Incoming insurance commissioner Steve Poizner predicts big earthquake, wants cheaper coverage.
California's 2006 campaign season has set a new record — more than $600 million in campaign contributions and personal donations were raised to fund ballot measures and state races. To put this in perspective, the combined cost of all the races for Congress across the nation are expected to add up to $2.4 billion this year. Dan Morain reports today that, with few exceptions, the biggest spenders won.
- "When it was all said and done, in this year alone my primary opponent and Gov. Schwarzenegger's team spent upwards of $120 million, most of it on media telling people a story about me.... Look, $120 million was just an avalanche of money.
—Phil Angelides
- Proposition 86, cigarette tax: "With a negative ad campaign totaling nearly $60 million, Big Tobacco has once again demonstrated its willingness to sacrifice public health for its own bottom line.... Prop 86 was defeated by a $60 million onslaught of ads."
—Emily Clayton, CalPIRG health care advocate
- Proposition 87, oil tax: "Unfortunately, the oil companies' $100 million advertising campaign to defeat Prop. 87 is a somber reminder of just how much money the oil industry will spend to protect their profits and keep us dependent on oil."
—Authorless statement from CalPIRG
- Proposition 89, campaign finance reform: "Across the board, the biggest winner on Tuesday in California was big money."
—Rose Ann DeMoro, executive director California Nurses Assn.
Our money watcher, Times staff writer Dan Morain, reports from Los Angeles:
In what likely was his final campaign finance report before election day, Gov. Arnold Schwarzenegger disclosed a $10,000 donation from San Francisco attorney Jeremiah Hallisey, who was one of the main fund-raisers for Democratic Gov. Gray Davis, the man Schwarzenegger unseated three years ago. Also included on the report was a $1,000 donation from John Tunney, the former Democratic U.S. senator living in Pacific Palisades. Treasurer Phil Angelides took in a smattering of last-minute donations from organized labor.
Almost four out of five campaign contribution dollars accepted by California lawmakers came from people or groups based outside their districts, according to a new study by the nonpartisan group Maplight.org, which sifts data on campaign contributions and votes in the California Legislature.
The five lawmakers who raised the greatest percentage of contributions from outside their districts are all Assembly Democrats: Cindy Montanez of San Fernando, Sally Lieber of Mountain View, Ron Calderon of Montebello, Ed Chavez of La Puente and Lloyd Levine of Van Nuys.
According to the report, 98.8% of Montanez's donations in 2003 and 2004 came from outside her northeast San Fernando Valley district.
"This is another piece of information that shows how disconnected legislators are from voters and how little ability voters have to hol | |
Throughout the battle, BHP and other natural gas producers engaged almost every political player closely connected to the Schwarzenegger
administration. In fact, no other lobbying campaign since the 2003 recall has hired as many Schwarzenegger friends than the LNG effort.
A few people on Pogue's blog agreed. One man wrote: "Let's stop calling them contributions and start calling them what they really are, bribes. Or how about kick-backs?"
