Former Davis Donors Give to Rivals; Schwarzenegger Breaks Money Vow
The governor is the top fund-raiser. The actor takes donations after pledging not to. Total spending looks low.
SACRAMENTO â€" Several donors who once backed
Gov. Gray Davis are now giving to others on the Oct. 7
recall ballot, including Republican Arnold Schwarzenegger,
who has abandoned his pledge not to take donations from
Orange County businessman Peter V. Ueberroth, also a
Republican, is tapping his business partners heavily. State
Sen. Tom McClintock (R-Thousand Oaks) is hoping to corral
donors by touting himself as the one true conservative, now
that Bill Simon Jr. has withdrawn from the race to oust and
And Lt. Gov. Cruz Bustamante, the one major Democrat on the
ballot, last weekend received more than $300,000 from a San
Diego County Indian tribe â€" his first
significant tribal gift in the recall campaign.
Contribution reports filed with the state show that donors
to the top-tier candidates include some who have tangled
with Davis in the past. Timothy C. Draper is one; he aired
television commercials in 2000 aimed at undermining Davis
while Davis campaigned against an initiative that Draper
But Davis continues to out-raise each of his rivals. He has
amassed $5 million so far this year, with more than
$755,000 flowing into his coffers on Friday and Saturday to
aid his anti-recall effort.
Davis' challengers have raised a total of $10 million. With
the election six weeks away, the campaign appears unlikely
to reach the $100-million price tag experts predicted when
Schwarzenegger is leading Davis' opponents in
contributions, having given himself $2 million and raised
an additional $1.2 million â€" despite his
promise at the start of the campaign not to raise outside
money. Former major league baseball commissioner Ueberroth
is next, having given his campaign $1 million and raised an
additional $1.2 million, much of it from business
Among the other major candidates, Bustamante has raised
$458,000, followed by Republican McClintock's $388,000.
Independent candidate Arianna Huffington has $190,000. And
donors have given $3.5 million to various committees
established to support the recall effort, according to
statements filed with the California secretary of
Actor Reverses Himself
Several donors to Schwarzenegger periodically have
business pending with the state, even though the actor said
upon entering the race that he was campaigning "without any
baggage," had not "sold out to any special interest" and
was "not taking any money from anyone."
Irvine Co. Chairman Donald Bren and his wife, Brigitte,
gave the entertainer $42,400. Bren has long been a donor in
state and national politics, particularly to Republicans,
although the Irvine Co. gave $72,500 to Davis in his first
Hilmar Cheese Co. is another Davis donor that has switched
to Schwarzenegger, giving him $21,200, the maximum that
individuals and corporations can give directly to
Several of the donors have been Davis critics in the past.
Draper, a Silicon Valley venture capitalist who financed a
failed 2000 initiative campaign to authorize tax-funded
vouchers for private schools, donated $21,200 to
Schwarzenegger, as did his wife and father.
"There is a real possibility he can turn the state around,"
Draper said. "As soon as I saw that he was running, I said
to myself, 'This is the right man for the right time.'
Schwarzenegger spokesman Rob Stutzman dismissed any
contradiction between the candidate's early statements and
his decision to accept donations, saying the entertainer
"will not play the special-interest game that plagues
politics in Sacramento."
"There are a multitude of people who want to help Arnold
get to Sacramento to reform the system," Stutzman said.
"Many of those donors will include people who have
contributed to other candidates in the past. The difference
is that they do not expect anything in return."
"To say a huge developer and other special interests won't
come knocking at your door is stupid," said Jamie Court,
executive director of the Foundation for Taxpayer and
Consumer Rights in Santa Monica. "He has to give this money
back or else he will look like Gray Davis."
Stutzman said Schwarzenegger will not accept donations from
public-employee unions or "single-interest trade
Schwarzenegger is among the candidates with two committees:
one to tout his candidacy and a separate committee to urge
that voters recall Davis. Although candidates can spend
unlimited sums on their own campaigns, state law restricts
donors to giving no more than $21,200 directly to
candidates. Contributors can give unlimited sums to a
recall committee. So far, home builder William Lyon of
Newport Beach is the one major donor to Schwarzenegger's
recall committee, having given it $100,000. Lyon is a donor
to GOP campaigns.
Campaign finance statements reflecting money raised since
June 30 are supposed to be filed with the California
secretary of state on Thursday. Those filings will show the
money that candidates and the various recall committees
have in the bank, an important barometer of a campaign's
health. Sixteen committees have been formed so far to
support and oppose the recall.
Additionally, interest groups can spend money in campaigns
that are independent of the candidates. No independent
expenditure committee specifically for the recall has been
Campaign finance expert Robert Stern, president of the
Center for Governmental Studies, said spending on the
recall will fall short of the $100 million predicted in
recent weeks, largely because of the attention that the
news media are giving to the campaign. Given that level of
interest, high-cost television ads, which could run $2
million a week for a major statewide buy, will be less
"This is what reformers want: more free media, more
interest and more discussion of an election," Stern
Following Schwarzenegger in the challengers' money
race is Ueberroth, who has given himself $1 million and
raised $1.2 million more. Ueberroth has said he expects his
campaign to cost about $10 million and that he would
probably donate about a third of that himself.
In the first weeks of the campaign, he has tapped business
partners who have joined him in resuscitating faltering
businesses. Those donors include John H. Myers, president
of GE Asset Management in New York, and his wife, Joann,
who each gave $21,200.
About 20% of Ueberroth's donations have come from out of
state, mostly New York and its suburbs. Many of those
contributors work in the financial world. But $700,000 has
come from Orange County, where he lives. Donors include
Bren, sports agent Jeffrey Moorad and William H. Roos, head
of the Newport Beach-based Pimco investment funds.
"He is a no-nonsense, get-it-done problem solver," said
William Thompson, Pimco chief executive. "He has no ax to
Thompson, asserting that Ueberroth's relatively low
standing in the polls is irrelevant at this point in the
freewheeling campaign, said: "I realize it's an uphill
battle, but anything's possible in this day and age. I'd
like to help give him a chance."
Bustamante, the sole big-name Democrat on the
ballot, is urging that Californians vote "no" on the
recall. He is also urging that voters support him in case
Davis is dumped.
In a fund-raising appeal, however, one of Bustamante's
supporters is urging in an invitation to an event next
month in San Jose that donors contribute to "help elect Lt.
Gov. Cruz Bustamante." The invitation makes no mention of
opposing the Davis recall.
The event is being sponsored by the Silicon Valley Latino
Democratic Forum, and Pete Carrillo of Silicon Valley
Advisors, a real estate consulting concern that has donated
$1,000 to Davis. Carrillo said Silicon Valley Advisors is
not involved in the fund-raising.
Other Bustamante donors have also given to Davis in the
past. Sacramento trial attorney and real estate owner
Morton Friedman and his wife, Marcine, have held
fund-raisers in their home for Davis, and were among a
group of donors who accompanied Davis on a 1999 trip to the
Middle East. But in this campaign, the Friedmans have given
Bustamante a combined $21,000.
And Bustamante is tapping unions, which have been among
Davis' most reliable donors. A major local of the Operating
Engineers based in Alameda gave $21,200 to Bustamante. The
local gave Davis nearly $800,000 in his first term. The
local is doing much of the work rebuilding the San
Francisco-Oakland Bay Bridge, a multibillion-dollar
state-funded effort that got underway during Davis' first
"Oh, no; oh, no, we are vehemently opposed to the recall of
Gov. Gray Davis," Cindy Tuttle, spokeswoman for the local,
said when asked if the union was switching allegiance. "But
people have two votes in this election We want them to vote
'no' on the recall and, if they choose to exercise their
second vote, we want them to vote for Cruz Bustamante."
Bustamante, who hopes to receive large donations from
Indian tribes that operate casinos, received his first
major contribution from a tribe last weekend: $321,000 from
the Sycuan Band of the Kumeyaay Nation, in San Diego
County. But the band sent the bulk of it, $300,000, to
Bustamante's old lieutenant governor campaign
Sycuan spokesman Adam Day said Bustamante's campaign
requested that the donation be deposited into the old
account. Some of the money can be transferred into
Bustamante's committees established to advance his
candidacy and to oppose the recall.
Bustamante's campaign aides did not return phone calls from
The one other current state office holder seeking
to replace Davis is Republican state Sen. McClintock of
Thousand Oaks. McClintock has never been a major
money-raiser but he hopes for more success in the recall
As of Monday, he had raised $388,500 since entering the
race to replace Davis.
"We think we need $4 million to run the race we want," said
McClintock's finance director, Sean Doherty. "And we'll get
Among McClintock's donors is Ron Unz, a millionaire sponsor
of the successful 1998 state initiative to restrict
bilingual education. Unz, a Republican, contributed $2,000
to McClintock, saying he is appalled by the number of
celebrities and millionaires essentially buying public
"You could put me in that category too," said Unz, chairman
of a software firm. "But I think it's a very unhealthy
thing if the only people who can run are people who can
afford to write checks or have celebrity."
(BEGIN TEXT OF INFOBOX)
Campaign money trail
These contributors have given the maximum donations
â€" $21,200 â€" to the following
For Arnold Schwarzenegger
Katherine H. Alden
Barratt Mortgage Co.
David G. Booth
Suzanne D. Booth
Susan T. Buffett
Warren E. Buffett
Christopher Cox Congressional Committee
Douglas E. Barnhart Inc.
Timothy C. Draper
William H. Draper
Fld Interests c/o Fritz Duda Co.
David W. Fleming
Paul F. Folino
Food 4 Less
Hilmar Cheese Co. Inc.
Hitchcock Automotive Resources
D.L. Horowitz / Horowitz Brothers 1975 Trust
Gerald L. Katell
Willa Dean Lyon
The New Majority Pac
Maria O. Shriver 1991 Trust
For Peter V. Ueberroth
Donald R. Beall
Joan F. Beall
Vicki U. Booth
William D. Booth
Daniel V. Inc.
James L. Easton
Phyllis F. Easton
William P. Foley II
J. Stuart Francis
David W. Hanna
Virginia L. Hanna
Nancy S. Kelleher
Richard M. Kelleher
Labor Relations Services Inc.
Paul C. Leach
Douglas J. Mackenzie
Charles D. Miller
Michael C. Mount
Joann B. Myers
John H. Myers
Nancy E. Thompson
William S. Thompson
Gail L. Ueberroth
John A. Ueberroth
For Tom McClintock
Residential Contractors Assn.
For Cruz Bustamante
Klein Financial Corp.
Northern California Carpenters Regional Council Small
Operating Engineers Local No. 3 Statewide Pac
Pacific Spanish Network Inc.
Southwest Regional Council of Carpenters CLIC of Southern
Sycuan Band of the Kumeyaay Nation
Source: California secretary of state. Compiled by Maloy