August Fundraising Orgy in Sacramento

Jamie Court, President of the Santa Monica-based Foundation for Taxpayer and Consumer Rights, has an op-ed in today's LA Times revealing how disgusting August is in Sacramento.

Today is the height of the dollar derby, with at least 20 fundraisers scheduled. It almost makes you feel sorry for the special-interest groups. "For the month of August, we don't see our family," a lobbyist told the Capitol Weekly. "Under the current system, they have to ask, and we have to contribute."

Despite politicians' protestations that campaign contributions do not influence them, big money makes a big difference in the legislative frenzy. Is it any coincidence that big-money lobbies win and consumers lose?

While drivers suffer from skyrocketing gasoline prices, oil companies have reaped billions of dollars in profits and poured millions into state political contributions. Five bills to combat high gasoline prices have already failed this year, including legislation to reform price-gouging laws. A new state report showing that oil refiners' actions spurred high prices could lead to reconsideration of these measures, but campaign contributions are likely to stand in the way.

On another front, AT&T and Verizon and their employees have given more than $1 million to state lawmakers and their political parties. After AT&T hosted a golf fundraiser for Democrats that raised $1.7 million this spring, Democratic Assembly Speaker Fabian Nuñez raced deregulation of the pay-TV industry through the Legislature. The bill, making its way through the Senate this week, allows AT&T and Verizon to lay fiber optic lines without having to seek approval from local governments. Health insurers and HMOs contributed nearly $1 million to Schwarzenegger and a bipartisan group of legislators in the first half of this year. Those companies staved off legislation this year to improve policy protections and are regrouping to stop the cost controls in a universal healthcare bill to be heard this week in the Assembly.

On November 7, we can clean up this mess.

This could be the last August for the cash dash. Proposition 89 on the November ballot would establish public financing of campaigns, paid for with a tiny increase -- 0.2% -- in the corporate profits tax. So candidates who kick the fundraising habit would not have to prostitute themselves for private financing. Few politicians would opt out of accepting public money if their publicly funded opponents could match them dollar for dollar.

The same special interests and lobbyists nibbling, sipping and twisting arms this week will be putting up big money to stop Proposition 89. Their ads will rev up fake outrage that any tax would pay for politicians' campaigns. What they won't mention is how the price of our gasoline, healthcare, housing and telephone bills is a lot higher when lobbyists do the paying.

Indeed.