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Activist Gives $1 Million to Help Prop. 25

California and the West

March 01, 2000|VIRGINIA ELLIS and JENIFER WARREN, TIMES STAFF WRITERS

SACRAMENTO — One of Gov. Gray Davis' richest and most loyal contributors shocked the political establishment Tuesday with a $1-million donation to the Proposition 25 campaign finance reform effort.

Longtime Democratic patron Max Palevsky of Los Angeles said he is sickened by the "corruption of the electoral process" caused by enormous sums being funneled to political campaigns. He made the donation to give the March 7 ballot measure a fighting chance in the preelection advertising war, he said.


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"I am making this million-dollar contribution," he said in a statement, "in hopes that I will never again legally be allowed to write huge checks to California political candidates."

The donation provides a large infusion of cash for the Yes on Proposition 25 campaign at a critical time. Opponents of the measure had just started a modest advertising effort that was causing the proposition to slip in the polls.

The initiative, sponsored by millionaire businessman Ron Unz and public interest activist Tony Miller, would limit contributions, require overnight disclosure on the Internet of donations above $1,000, ban corporate donations, restrict the times when political funds could be raised and provide taxpayer-financed advertising credits to campaigns that agree to overall spending limits.

Palevsky's donation came one day after The Times revealed that Davis, who raised a record-breaking $13.2 million in political funds in his first year in office, had mounted an aggressive telephone effort to solicit contributions from business interests for the campaign to defeat the proposal. In a one-month period, the "no" campaign reported raising $1.3 million and insiders said it was mostly the result of Davis' efforts.

"The huge corporations, wealthy individuals and unions that currently make unlimited contributions to California candidates are paying for a one-sided . . . advertising campaign against Prop. 25, thereby seeking to preserve our corrupt status quo," Palevsky's statement said. "My contribution is intended to allow the voters . . . to hear both sides."

Scott Macdonald, communications director for the No on Prop. 25 campaign, said his side will not be able to counter the television and radio advertising blitz that proponents of the initiative will now have the resources to launch in the final week before the election.

"A million-dollar check, seven days [before the election], that's just an amazing thing," he said.

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