State Senate race: Big money prevails despite spending limit State Senate race: Big money prevails despite spending limit (February 25, 2004)

By Renee Batti

Almanac News Editor

Ted Lempert made campaign spending limits a key issue of his campaign to win the state District 11 Senate seat now held by Byron Sher, D-Palo Alto.

But what is emerging as possibly an even more urgent issue is the value and effectiveness of the voluntary spending limit candidates can place on themselves under the rules of Proposition 34.

Although Mr. Lempert agreed to the proposition's voluntary $637,000 spending cap, his opponent in the Democratic primary, Assemblyman Joe Simitian, points to the amount of money being spent in Mr. Lempert's behalf -- so-called soft money officially known as "independent expenditures."

Mr. Simitian didn't agree to the voluntary limit, saying from the beginning that because Proposition 34 does not restrict independent expenditures, it is a watered-down approach to real campaign spending reform.

Independent expenditures are made to support or oppose a candidate, but to be legal, the money must be raised and spent without any involvement of the candidate.

As of February 20, a total of $309,350 was independently spent on television and radio ads, mailers and other campaign material supporting Mr. Lempert, according to campaign finance documents -- an amount that brings the spending on Mr. Lempert's election bid much more in line with that of Mr. Simitian's.

Meanwhile, about $65,910 in independent spending in support of Mr. Simitian's election was reported last week by the California Correctional Peace Officers Association, which represents the state's prison guards.

Mr. Lempert has been quick to criticize the support, linking Mr. Simitian's vote in the Assembly of a large pay raise for prison guards to the growth in the state's prison budget. And that growth, he charged, is "at the expense of our schools."

In a press release issued last week, Mr. Lempert stated: "The state's prison budget has grown 31 percent in the last four years at the expense of our schools. And the biggest reason is the enormous donations from the California Correctional Peace Officers Association that distort the political system."

Mr. Lempert's campaign consultant, Michael Terris, was even harsher in his criticism: "When they spend money on Joe Simitian, the prison guard lobby must know that they are going to get something in return -- and the losers are going to be the school children of California."

Mr. Simitian scoffs at the criticism, noting that he would not have the support of the California Teachers Association and so many local school board members and educators from around the state if he didn't have a strong record of supporting education as an assemblyman.

"They know I have been fighting like the devil to get every dollar possible to educate our kids," he said. "It's too bad the Lempert campaign has gone this route."

Mr. Simitian said his "support" of the prison guards' raise was his vote to ratify the governor's negotiated contract with that employee group. The vote, he noted, was 79-0.

Reacting to the press release, an annoyed Mr. Simitian said he is amazed that Mr. Lempert "purports to be appalled by the fact that $65,000 has come in on the other side of the campaign" after benefiting from more than $300,000 in independent expenditures himself.

Nearly $200,000 of the $309,350 in soft money spent to support Mr. Lempert came from the Northern Californians for a Strong Economy, a "recipient committee" formed to support Mr. Lempert. The committee's treasurer is Ray Mattison of San Luis Obispo, who lists no address or phone number on the disclosure form filed with the Secretary of State's office.

Attempts to reach Mr. Mattison, whose phone number is unlisted, or any other officer of the committee were unsuccessful.

Large donors to the committee include at least four members of the advisory board of EdVoice, which Mr. Lempert co-founded and for which he serves as chief executive. They are Don Fisher of Atherton, founder and chairman of the Gap stores; John T. Walton of Bentonville, Arkansas, of the Walton family that founded Wal-Mart and a director of that corporation; R.B. Woolley of La Jolla; and Reed Hastings of Santa Cruz, CEO of NetFlix.

Other donors include Faculty for our University's Future Local Committee, sponsored by the California Faculty Association; and Political Action for Classified Employees, California School Employees.

Mr. Simitian noted the connection between the "so-called independent committee" and the large donors who sit on the EdVoice board, and dismissed Mr. Lempert's assertion that he is a champion of campaign finance reform as "disingenuous."

Other independent expenditures supporting Mr. Lempert have been made by the California Medical Association, the California Dental Association, and the Peace Officers Research Association of California Political Action Committee.

Mr. Lempert has raised more than $700,000 for his campaign. He said he will use the money that exceeds his spending limit for the general election, or will return it to donors.

Mr. Simitian has raised about $1,010,750 as of this weekend.

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