6/4/12

State's top 100 political donors contribute $1.25 billion | California Watch

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MONEY&POLITICS|SPOTLIGHT

State'stop100politicaldonorscontribute$1.25billion
June4,2012|CoulterJonesandElizabethTitus

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TheRainmakers

Inastatewithnearly38millionpeople,fewhavemoreinfluencethanthetop 100donorstoCaliforniacampaignsapowerfulclubthathasdonated overwhelminglytoDemocratsandspent$1.25billiontoinfluencevotersover thepastdozenyears. Thesebigspendersrepresentatinyfractionofthehundredsofthousandsof individualsandgroupsthatdonatedtoCaliforniacampaignsfrom2001 through2011.Buttheysuppliedaboutathirdofthe$3.67billionlavishedon statecampaignsduringthattime,campaignrecordsshow. Withafewexceptions,thesecampaigneliteshavegottentheirmoneys worth,accordingtoananalysisbyCaliforniaWatchofdatafromtheNational InstituteonMoneyinStatePoliticsandstatefinancerecords. Thestatestop100donorsgavenearlyfivetimesasmuchtowinning candidatesastheydidtolosers.Andtheyhelpedsteerinitiativecampaigns tosuccessaswellabout55percentofeverydollartheycontributedto propositionsaidedawinningcampaign,theanalysisshows. Someofthesetop100donorsarecontinuingtodonateheavilyinthe2012 electioncycle.Fortheirpart,tobaccocompaniesPhilipMorrisandR.J. Reynoldshavespentmorethan$30millionsinceJanuarytodefeatan initiativeontomorrowsballotthatwouldincreasethecigarettetax. Majorplayerswithmajorstakesinstatewideissuesaregoingtomakesure theiropinionsareheard,saidJackPitney,apoliticalscienceprofessorat ClaremontMcKennaCollegewhofocusesonCaliforniaissues. Givenitssizeandwealth,Californiaautomaticallysetsnationalrecordsfor campaigndonationsmoremoneyisspenthereonpoliticsthaninanyother state. NotsurprisinglyforCalifornia,thetop100directedtheirmoneyinlargepart towardtheDemocraticParty,whichcontrolsthegovernorsofficeandthe stateLegislature.Overall,thesetopdonors50wealthyindividualsand50 specialinterestgroupsanalyzedbyCaliforniaWatchgavetwiceasmuch toDemocraticcandidatesastheydidmembersofotherpoliticalparties. Buttherewasasplit:SpecialinterestdonorsfavoredDemocrats,while individualdonorsfavoredRepublicansbyaslimmargin.

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TheRainmakers: California'stoppolitical donors,20012011

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Whenbrokendown,recordsshowthetop50groupcontributorsincluding laborunions,energycompaniesandtribalgovernmentswerethreetimes morelikelytogivetoDemocraticcandidates.Thetop50individuals, however,gaveslightlymoretoRepublicans. Thestatesmostextravagantindividualdonorandbiggestcampaignloseris StephenBing,therealestatescionandHollywoodproducer.Hegave moremoneythananyotherindividualtoastatecampaign$49.5millionin 2006tosupportProposition87,knownasthealternativeenergyoiltax, whichfailed.

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State's top 100 political donors contribute $1.25 billion | California Watch
ButBingprovedthatahandfulofCaliforniasrichestspecialinterestsand individualshaveanoutsizedvoiceinelectionshere.Thecampaignhe spearheadedbecameoneofthemostexpensiveinCaliforniahistory, drawingmorethan$156millionincontributions.Chevron,AeraEnergyand OccidentalOil&Gasdonatedacombined$80milliontofightBings measure. Thebiggestspecialinterestdonor,theCaliforniaTeachersAssociation, spentmorethan$118milliononcampaignsinthestateduringthepastfive electioncyclesandthefirsthalfofthisone.Theunionhasfocused overwhelminglyoninitiatives,spending$100millionofthatwarchest advocatingandopposingballotmeasuresoverthepastdozenyears. DeepestPockets Morethanathirdofitsspendingwenttofightjustfourpropositionsthatwere keypiecesofGov.ArnoldSchwarzeneggersattemptedgovernmentoverhaul in2005.Themeasuresallofwhichfailedwouldhaveextendedthe probationaryperiodforteachers,alteredtheformulaforfundingpublic schools,requiredemployeeconsentonunionduesandremovedredistricting powersfromtheLegislature. Eighttribalgovernmentsalsomadethelistoftopspecialinterestdonors.But twostoodout:ThePechangaBandofLuiseoIndiansandtheMorongo BandofMissionIndiansspentacombined$80millionin2008supporting fourpropositionstoexpandtribalgamblingoperationstheyallpassed. IndividualdonorsfavorGOP Bing,whoalsodonatedtoDemocraticcandidates,wasabitofanoutlier amongthelargestindividualdonors.Thefivemostgenerousdonorsgave twiceasmuchtoRepublicansthantoDemocrats. AndrewJerryPerenchio,theformerchairmanandCEOofUnivision,and CharlesT.MungerJr.,awealthyStanfordphysicist,werethestates secondandthirdlargestdonors.Perenchiogaveatleast$9.3milliontothe statesGOP,andMunger,whocontributedmostlytoballotmeasures,is activeinRepublicanpolitics. CaliforniaWatch,workinginpartnershipwithaStanfordUniversity investigativereportingclass,attemptedtoreachseveralofthetop50 individualdonors.Nonewouldcommentforthisarticle. Butsomeoftheeliteinstitutionalcontributorsweremoreopen.TheCalifornia TeachersAssociation,whichhas325,000members,saiditusesaninternal councilofmorethan800memberstovoteonwhichcandidatesandcauses

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tosupport. Whencollectingduesfromitsmembersforpoliticalcauses,theunionoperatesatwotieredsystem.Members give$8eachyeartoacommitteethatsupportscandidatesand$36annuallytoaballotmeasurecommittee. Theyhavetherighttooptoutofbothcommittees. TocampaignagainstSchwarzeneggers2005ballot measures,membersvotedtoincreaseitsannual contributionsto$60forthreeyears. Wewerestartingtoseealotofthingssurfacethatwe feltweredangerousandweneededtodefendagainst, saidDeanVogel,presidentoftheunion.Itwasntso muchaneedtopromoteanything,butawaytodefend againstegregiousattacksagainstpubliceducation. Amongthetop50individualdonors,mendominatethe ranks.Onlyfivearewomen.
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ProtestersslamGov.ArnoldSchwarzeneggerata 2010rallysupportingtheCaliforniaTeachers Association,thestatestoprankedcampaigndonor. Thegroupspentalargeportionofitspoliticalbudget fightingSchwarzeneggerduringhisadministration.

AnnHowlandDoerrdonated$3.1million,mostofiton twosuccessfulpropositionbattles.Shespent$1.9 millionforProposition71in2004,whichsupported stemcellresearch,andshegave$1milliontodefeat Proposition23in2010,whichwouldhavesuspended

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State's top 100 political donors contribute $1.25 billion | California Watch

Californiaslawtocurbgreenhousegasemissions. Doerrshusband,venturecapitalistL.JohnDoerrIII,gavemorethan$9milliontopoliticalcausesandwas thestatesfourthlargestdonor. Selffundedcandidateswerenotincludedintheanalysis,leavingformereBayCEOMegWhitmanoffthelist. Whitmanspentmorethan$140milliononherfailedgubernatorialcampaignin2010. CaliforniaWatchsanalysisfocusedondatathrough2011.Butthesamegroupoflargedonorsiscontinuingto exertinfluencewithdonationstofightballotinitiativesin2012,accordingtodatafromtheCaliforniasecretary ofstatesoffice. AlongwithPhilipMorrisandR.J.Reynolds,whicharespendingtensofmillionstofightProposition29on tomorrowsballot,PacificGas&ElectricandPerenchioeachdonated$100,000thisyearinsupportof Proposition28,whichwouldalterthestatestermlimitlaw. TobaccocompanieshavealonghistoryofbigspendinginCaliforniainitiatives.R.J.ReynoldsandPhilip Morriscombinedtospend$60.5millionopposingProposition86in2006,whichalsowouldhaveincreased taxesoncigarettes.Morethan$83millionwasdonatedinsupportandoppositionofthemeasure,but proponentsofthetaxwerevastlyoutspent,4to1. Inpractice,oneindividualorgroupwithdeeppockets canhaveagreaterimpactonballotmeasuresthanwith anysinglecandidateselection.Undercampaignfinance laws,individualsandgroupsarelimitedinhowmuch theycangivetocandidates.Butdonationsto committeessupportingoropposingballotmeasuresare effectivelyunlimited. Fordonors,despitealowersuccessrate,aninitiative campaignisasaferbet. Whenyougivemoneytoaperson,thatpersoncould endupbeingadisappointment,Pitneysaid.Aballot initiativeisaninanimateobject.Itcannotdoublecross you. Equalchancesinballotmeasurespending ThadKousser,apoliticalscienceprofessoratUCSanDiego,saidgroupsopposinginitiativeshavejustas muchchanceofsuccessasgroupssupportingthem.Inarecentstudy,Kousserandacolleaguefoundthat from1976to2004,moneyspentfororagainstballotmeasureshadequaleffectsontheoutcome. YoucantgetanythingpassedwithjustmoneyinCalifornia,hesaid.Youcantjustspendyourwayinto publicsupport. Koussersaidhedoesntseeadirectrelationshipbetweendonatingtocandidatesandinfluence.Onaper dollarbasis,hesaid,directlobbyingcanbemoreeffective. Campaigncontributionsopenalegislatorsdoortoyou,Koussersaid.Youneedtosendthelobbyisttowalk throughthedoorifthataccessisgoingtogetyouanywhere.Partly,youspendthatmoneyoncampaignsto makesureyourvoiceisheardduringthelobbying. AT&Tspreaditscontributionsaroundmorethananyothertopdonor.The companydonatedtomorethan700differentcampaigns.Lessthan10 percentofthenearly$10millionitdonatedwenttoballotmeasures.Ofthe rest,$3.7millionwenttoRepublicansand$5.3millionwenttoDemocrats. PacificGas&Electric,thethirdlargestdonor,gavetonearly600different campaignsforpoliticalcandidates.Democratsreceived$3.2million, comparedwith$1.8millionforRepublicans.Themajorityofits$67millionin donationswenttosupportoropposeballotmeasures. Politicalcontributionscomefromthecompanysshareholdersfundandnot frompublicutilitycustomerspayments,spokeswomanLynseyPaulosaid.

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Wethinkitsimportanttoparticipateinthepoliticalprocess,Paulosaid.Thatincludescontributionsto campaignsandengagingwithindividualswhohavethepotentialtomakedecisiontoaffectourcustomers, employeesandourcompany.

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DemocraticpoliticalstrategistBobMulhollandsaidspecificissuesmotivatetopdonorsmorethanindividual candidates,whichisoneofthereasonswhypropositionsgarnerlargecontributionsfromaselectgroup. Somepeopledontwakeupeverydaythinkingaboutpolitics,buttheyaremovedbythingsthatare happeningintheworld,hesaid.Theyhavetheresourcestospend,andtheybelieveinthecause. Mulholland,whoisnotemployedbyanycampaignsthisyear,isadelegateforCaliforniaattheDemocratic NationalConventioninSeptember.Heseestopdonorsmakinguplessofaroleinstatepoliticsastechnology enablescampaignstotargetandtailormessagestouniquedonorsandelicitsmalldonations. Thefuturemeansmoremoney,hesaid.Yes,certaingroupswillcontinuetodonate,butthefutureismore campaignswillhavemoredonors.Thatsgoodforcampaignsbecausethatallowsyoutoquicklyraisemoney whenyoureunderattack.Youhavealargepoolyoucangoto.
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ThisstorywaseditedbyRobertSalladayandMarkKatchesandcopyeditedbyNikkiFrickandChristineLee. Filedunder:Money&Politics Tags:Californiapolitics,donations,elections,fundraising

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