Photo ops for sale, governor's ear, too
SCHWARZENEGGER TO HIT UP BUSINESSES BUT SAYS IT WON'T
AFFECT HIS POSITIONS
By Kate Folmar
San JoseMercury News Sacramento Bureau
Mar. 04, 2005
SACRAMENTO - Starting with
a visit to his annual bodybuilding extravaganza this weekend,
Gov. Arnold Schwarzenegger will begin a presidential-style
fundraising sweep for his re-election committee -- including
swanky events in Cincinnati, New York and Washington, D.C.
At the luncheons and dinners, representatives of banking,
pharmaceutical and other business groups with a stake in California
policy debates will pay thousands to dine next to, and have
photos snapped with, the Republican governor. The tour comes
as Schwarzenegger pushes a historic, multimillion-dollar initiative
campaign against what he calls ``special interests.'' And it
comes before Schwarzenegger has announced if he will run again
in 2006.
He'll spend much of this weekend at the Arnold Fitness Weekend
in Columbus, Ohio, his annual festival of fitness, supplements
and buff-dom.
While in Ohio, the governor will swing down to Cincinnati
today, as the star attraction of a fundraiser hosted by Carl
Linder, whose family runs American Financial Group and the
Cincinnati Reds baseball team. Then it's off to New York on
Monday, for a fundraising dinner hosted at the 21 Club by Gov.
George Pataki. Then on to Washington on Tuesday, where one
of the event hosts will be prominent GOP lobbyist Ron Kaufman
-- whose drug-company clients have a keen interest in California,
home to a pitched battle over spiraling drug costs. Thus far,
Schwarzenegger has sided squarely with big drug companies.
Even as he raises millions for his initiative push and his
re-election, Schwarzenegger appears to take great glee in criticizing
politicians who are beholden to contributors. At the same time,
his prolific fundraising has outpaced that of Democratic predecessor
Gray Davis -- who was recalled, in part, because of perceptions
that his policy stances were for sale.
Critics contend Schwarzenegger does much the same -- and gets
away with it. They've posted invitations to several of the
governor's fundraisers online (www.arnoldwatch.org).
No tit for tat
California law allows politicians to talk to donors about
their issues so long as they do not swap donations for decisions.
The governor says he does not do the bidding of donors.
``We make it very clear we raise money. It's all disclosed,''
said Rob Stutzman, Schwarzenegger's communications director.
``The people of California understand the governor can't be
bought. The governor needs to raise roughly $50 million this
year to beat back the special interests.''
Kaufman, the Washington lobbyist, says much the same. He is
a senior partner at the Dutko Group, whose firm represents
some 200 clients, including the Pharmaceutical Research and
Manufacturers of America (PhRMA) -- a big player in the prescription-drug
debates.
Recommended donation levels for the luncheon at Washington's
St. Regis Hotel -- billed as a ``business round-table luncheon''
-- range from $5,000 to $22,300. The biggest donors get to
sit at Schwarzenegger's table and take photos with him, according
to Roll Call's ``Heard on the Hill'' column.
In an interview, Kaufman stressed that his firm represents
the Pharmaceutical Research and Manufacturers of America only
on federal issues, not California ones. Merrill Jacobs, who
represents the pharmaceuticals group in Sacramento, said the
group does not donate to California candidates.
Kaufman said people attending the event are drawn by Schwarzenegger's
``star quality.'' Donations raised will be reported ``fairly,
quickly and accurately. That's the best campaign-finance reform
ever.''
Bad appearance
Events like the Washington fundraiser look bad, said Larry
Noble, executive director of the non-partisan Center for Responsive
Politics in Washington D.C.
``This is the way many politicians work,'' Noble said. ``They
raise money from industries they have helped and will help
in the future. What makes this most notable is it's being done
at the same time Arnold Schwarzenegger denies that he's doing
it.''
Drug companies have much to gain or lose with Schwarzenegger.
After vetoing measures that would have allowed importing cheaper
medicine from Canada, he is backing the industry's favored
alternative -- a bill this year that calls for voluntary discounts.
There are also voluntary and importation measures vying for
space on a special-election ballot. If the governor weighs
in, he could buoy them to passage or doom them.
Pharmaceutical companies have given more than $300,000 to
Schwarzenegger committees.
``The governor's office is for sale,'' said Jerry Flanagan,
of the liberal-leaning Foundation for Taxpayer and Consumer
Rights and ArnoldWatch.org. ``It's not rocket science to see
that big contributions equal favorable policy.''
After leaving Washington, Schwarzenegger will look for cash
in-state again midmonth. He's slated to attend a Palm Desert
cocktail reception hosted by Williams-Sonoma chairman Howard
Lester.
He'll also stop by the Westin Century Plaza Hotel in Los Angeles
on March 19 -- where a contribution of $89,200 or more will
allow donors to sit at the head table with the governor and
receive three photos with him (but please, only ``two people
per photo,'' the invitation notes).
Because the maximum allowable contribution to candidate-controlled
committees is $22,300, the invitation helpfully outlines how
two adults can each give the maximum amount to two committees
controlled by the governor to reach $89,200.
``There's a whole lot of fundraising going on -- that's a fair
statement,'' said Schwarzenegger fundraiser Marty Wilson. Even
though Schwarzenegger ran as a campaign-finance reformer, ``to
do the kind of historic reform that he wants to do, he's got
to take his message to the people. The most effective way to
do it is through paid media. We can only rev that Hummer up so
many days to reach the people we need to reach.''
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