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For Immediate Release:
June 24, 2004 |
Contact:
or
(916) 446-4741
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Get Big Money out of California's Ballot Questions
Californians should pay close attention to what regulators at
the Fair Political Practices Commission (FPPC) do about big money
in ballot campaigns, according to TheRestofUs.org, a non-partisan
watchdog.
"Big money is distorting and corrupting California's ballot
initiative process," said Derek Cressman, director of TheRestofUs.org.
"The initiative is for citizens to use when wealthy private
interests prevent the legislature from protecting the public interest.
There's a problem when those same private interests, like Indian
casinos, can then turn around and influence ballot measures through
big money campaigns."
There are additional concerns when candidates control ballot
measure campaigns. For example:
Governor Schwarzenegger's staff are suggesting that he
will raise some $20 million, possibly from Indian tribes, to defeat
two ballot measures dealing with gambling on this fall's ballot.
· Lieutenant Governor Cruz Bustamonte was fined by the
FPPC for taking unlimited contributions (largely from Indian tribes)
into an old candidate committee which he then transferred into
his ballot committee against Proposition 54. But nothing to date
would have prevented Bustamonte from soliciting unlimited contributions
directly into that ballot committee. Indeed, his committee did
receive direct contributions from:
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The Santa Rosa Rancheria for $478,000 |
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Jerry Perenchio for $100,000 |
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AFCSME for $200,000 |
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Angelo Tsakopoulos's AKT Development Corporation for $45,000
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· Arnold Schwarzenegger's committee to support Proposition
49 in 2002, which helped position him to run for governor, received
contributions from:
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The Emulex Corporation for $60,000 plus at least another
$320,000 from its CEO Paul Falino |
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Richard Santullie, CEO of Net-Jets Corporation for at least
$100,000 |
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Todd Wagner of Dallas, Texas for at least $600,000 |
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Jeff Pericho of Univision for at least $1,000,000 |
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Conexant Systems for $50,000 |
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The Morongo Band of Indians for $25,000 |
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The Yucaipa Companies LLC for $100,000 |
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Developer Alex Spanos for $100,000 |
Arnold Schwarzenegger and Steve Westley's Committee to
Support Propositions 57 and 58 received contributions from:
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Western Manufactured Housing Companies for $50,000 |
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Kaiser Foundation Health Plan for $150,000 |
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the California Building Industry Association for $50,000 |
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Anheiser-Bush for $100,000 |
According to Cressman, there are at least two serious problems
for our democracy with contributions this massive:
1) Wealthy interests can easily drown out the voices of the rest
of us in public debate about ballot measures, creating an unlevel
playing field for public policy decisions. It is particularly
troubling when corporations or tribes use state-conferred advantages
that allow them to accumulate massive amounts of money to distort
the political process.
2) Many donors who give to ballot committees that are controlled
by candidates, future candidates, and officeholders, have business
pending before the state of California or other private interests
at stake dealing with state action or regulation. They could easily
gain privileged access and favorable treatment by public officials
by giving such huge amounts to ballot campaigns either controlled
by or prominently featuring those elected officials.
On Friday, the FPPC has the opportunity to do something about
the second problem by counting contributions to a candidate controlled
ballot committee as contributions to the candidate that are already
limited by current law and by requiring all ballot committees
that use candidates as spokespersons to abide by candidate contribution
limits.
The first problem is more vexing and would require action by
the legislature and approval by the courts. Some courts have indicated
that they would uphold a ban on corporate contributions to all
ballot committees, whether or not they are tied to a candidate.
The California legislature could pass such a law. The courts could
also go further and reverse their previous rulings that struck
down commonsense contribution limits to ballot measure committees.
But, the courts cannot do this unless a state such as California
or a local government enacts limits that can create a test case.
"The FPPC cannot solve all of our problems with money in
ballot initiatives this Friday. But it could take a step in the
right direction by limiting what candidates can raise for initiatives,"
concluded Ned Wigglesworth, a researcher for TheRestofUs.org.
TheRestofUs.org is a non-partisan watchdog that exposes the
role of big money in politics and tells citizens what we can do
about it.
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