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'Super PACs' negate spending limits in L.A. mayor's race

As groups raising funds for Greuel and Garcetti pour money into the race -- a record $6.1 million so far -- voter-approved contribution restrictions become meaningless.

April 26, 2013|By David Zahniser and Maloy Moore
  • Los Angeles mayoral candidates Eric Garcetti and Wendy Greuel bump fists before they square off in a debate at USC earlier this week.
Los Angeles mayoral candidates Eric Garcetti and Wendy Greuel bump fists… (Brian van der Brug / Los Angeles…)

Strict limits on campaign contributions imposed by voters nearly three decades ago are crumbling in the Los Angeles mayor's race, with big donors using loosely regulated "super PACs" to help candidates like never before in a citywide election, a Times analysis has found.

Of the $17.5 million collected so far to support mayoral hopefuls Wendy Greuel and Eric Garcetti, roughly one-third — a record $6.1 million — has gone into independent political action committees that can accept contributions of any size.

The rise of the parallel campaign finance system, awash in five- and six-figure donations that dwarf the limits approved by voters, has watchdogs of political influence sounding alarms.

"This is not the system that the reformers envisioned," said Benjamin Bycel, who was executive director of the city's Ethics Commission in the 1990s. The surge in independent campaign spending, he said, "essentially guts" laws setting contribution limits.

Many of the outsized PAC donations come from interests with a financial stake in City Hall decisions, including public employee unions looking to protect pay and benefits that have long used their financial might to elect political allies.

But increasingly, other donors — developers, entertainment moguls, philanthropists — are utilizing the system of limitless donations to promote their favored candidates.

The rise of the super PAC in L.A. city elections is another byproduct of U.S. Supreme Court rulings that have gradually diluted federal, state and local efforts to limit campaign contributions and spending. Los Angeles' ethics laws cap individual and company contributions in mayoral contests at $1,300 during the primary election and another $1,300 in a runoff, if one occurs.

For decades, the high court has held that unlimited spending by independent campaign groups — and unlimited donations to those entities by individuals and companies — is constitutionally protected free speech. The only real restriction: The advertising, polling and get-out-the vote activities funded by the PACs can't be coordinated with campaign operations controlled by the candidates.

Independent expenditures first became a significant factor in L.A.'s mayoral elections in 2001, when $1.9 million was spent by unions, billboard companies and other business interests in the contest between James Hahn and Antonio Villaraigosa. In a rematch four years later, the number jumped to $4.3 million.

A watershed came in 2008, when organized labor spent more than $8.5 million to elect state lawmaker Mark Ridley-Thomas to the Los Angeles County Board of Supervisors. That was nearly nine times what Ridley-Thomas raised for his own campaign.

With mixed success, labor groups have been seeking to replicate that winning formula at City Hall and, this year, some prominent business interests have joined their efforts.

In the current mayor's race, two candidate super PACs — Working Californians for Wendy Greuel and Lots of People Who Support Eric Garcetti — have received the biggest share of the unlimited money, taking in five- and six-figure donations from unions, contractors, developers and others.

Garcetti is also getting help from the Committee for a Safer Los Angeles, created by Obama campaign fundraiser Samantha Millman. And Greuel has been assisted by a committee created and financed by EMILY's List, a Washington, D.C.-based group that backs Democratic women who favor abortion rights.

McCourt Group, headed by former Los Angeles Dodgers owner Frank McCourt, has given $50,000 to Working Californians for Greuel, which is headed by officials with the International Brotherhood of Electrical Workers, the union that represents Department of Water and Power employees. McCourt is expected to develop property near the team's Chavez Ravine stadium.

Petrochem Manufacturing, which produces road resurfacing materials for the city, gave $10,000 to Working Californians. Construction management firm AECOM, which regularly seeks city contracts at the airport and harbor, gave $25,000 apiece to PACs backing Greuel and Garcetti. And Meruelo Enterprises, a company involved in real estate, banking and media, spent $34,500 to help Garcetti.

The biggest super PAC donations by far have come from organized labor. The DWP union, which is looking to negotiate a new contract, has put at least $1.45 million into Working Californians for Greuel. Another private-sector branch of the same union, which is pushing for a law allowing new digital billboards in Los Angeles, gave the committee $250,000. So did the city firefighters union, which opposed Garcetti's vote to reduce staffing at stations during a budget crisis.

"The bottom line is, we would have given the same amount of money whether it was Wendy or whether it was Eric," said Frank Lima, president of the United Firefighters of Los Angeles. "The members didn't go with Eric based on the cuts."

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