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Initiative Fundraising in High Gear

The lack of spending limits on proposition races brings flood of cash into campaigns from groups with business before the state.

THE SPECIAL ELECTION

October 27, 2005|Dan Morain, Times Staff Writer

SACRAMENTO — Five years after California voters put limits on how much money politicians can raise, three of the state's most powerful officials are accepting six- and seven-figure checks from interests with a stake in their actions.

Restrictions passed in 2000 capped the amounts that officeholders and candidates can take for their election campaigns. But eight statewide ballot measures are the object of politicians' fights in the Nov. 8 special election, and there are no limits on money raised for or against propositions.


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Individuals and entities with business before state government are donating large sums to Republican Gov. Arnold Schwarzenegger's effort to pass initiatives, or to the battle being waged against them by Democratic Assembly Speaker Fabian Nunez (D-Los Angeles) and Senate President Pro Tem Don Perata (D-Oakland).

The lack of contribution limits on initiative wars "opens the floodgates for special interests to contribute to candidates indirectly, to the candidates' pet causes and to the candidates' governing agenda," said Daniel Smith, a University of Florida political science professor who studies fundraising and government by ballot measure.

"And it opens the question of corruption or the appearance of corruption," Smith said.

Reports filed with the secretary of state's office show that Schwarzenegger accepted $350,000 from Wal-Mart heirs for his main initiative fund. Wal-Mart Stores Inc. and its chairman have given an additional $450,000 to the Schwarzenegger-backed campaign for Proposition 77, which would strip the Democratic-controlled Legislature of the power to draw its own districts.

This month, the governor vetoed union-backed legislation opposed by the retail giant.

Nunez took $150,000 from the electrical workers union on Oct. 5, less than a month after helping the union torpedo legislation it opposed. Nunez is raising money primarily to defeat Proposition 77. Perata, also campaigning against Proposition 77, accepted $100,000 on Oct. 7 from Mercury General Corp., an insurance company that has a significant Capitol lobby operation.

California caps single donations to legislative candidates at $3,300 and to gubernatorial candidates at $22,300, under the rules of Proposition 34, passed by 60% of voters.

A Sacramento judge ruled in March that officeholders and candidates can raise unlimited sums for and against ballot propositions.

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