Last week's U.S. 9th Circuit Court decision to throw out provisions of the Proposition 73 campaign reform rules is not expected to open the flood gates for business contributions to the political process.
Last Tuesday's court edict wipes out the $5,000 limit on contributions from political action committees to an individual candidate and permits PACS such as those operated by business firms to make unlimited donations.
But companies aren't necessarily poised to expand their campaign contributions. Rethinking their role in state politics for the past couple of years, some industries are even cutting political donations to legislative candidates.
Last year, for example, United for California, a 20-year-old political action committee, folded its operation. Funded by some of the state's largest corporations, the PAC gave generously to "pro-business" candidates that often challenged incumbents.
"Business is frustrated with the legislative gridlock that exists in the state capital," said Cynthia Suzuki, political affairs director for the California Chamber of Commerce. Business leaders point to this summer's budget impasse as an example of what they see as ineptitude in Sacramento. They also complain about the lack of action on big issues such as the state's water problems, the deteriorating infrastructure and the growing strength of the no-growth movement.
But more than anything, "business is tired of being hit up for contributions," said Kirk West, president of the California Chamber of Commerce. "They see all of this money going to pollsters, consultants, lawyers and political gurus, and they begin to wonder whether it's worth it."
The California Chamber of Commerce's directors recently turned down a staff proposal for creating a new PAC that was to make contributions in legislative races. Although it has a PAC that funds ballot measures, the chamber has no program for making donations to state candidates.
"The standard misconception is that business is pushing money on the legislature but, in fact, businesses are being actively solicited for funds all of the time and the top executives don't really enjoy it," said Tracy Westen, executive director at the California Commission on Campaign Financing, a nonpartisan organization that studies state political issues. "Unlike other business decisions, they don't know what they are getting for their money and they are afraid to ask."
