Please ensure Javascript is enabled for purposes of website accessibility
Recall Money Wars: What Do Newsom’s Million-Dollar Donors Want?
gvw_calmatters
By CalMatters
Published 3 years ago on
July 29, 2021

Share

Gov. Gavin Newsom may be fighting for his political life amid a fourth wave of COVID, a drought without modern precedent, another horrific fire season, a spiking murder rate and an increasingly credible-seeming recall.

But at least he has a lot of really rich political allies.

At last count, the main committee tasked with defending the governor against the Sept. 14 recall has raised some $39 million. Another allied committee and Newsom’s own 2022 campaign account, which state law allows him to draw upon this year, add another $4 million to that war chest.

That’s more than double all the cash raised by the committees campaigning for his ouster and the 46 candidates hoping to replace him, combined.

Ben Christopher

CalMatters

It also represents the generosity — or perhaps the strategic expenditure — of a broad coalition of some unlikely allies.

They include California’s largest teachers union and its most vocal charter school advocates; nurses and the hospitals they sometimes clash with; Realtors, developers, building trades unions and corporate landlords who have differing views on the housing crisis; defense contractors at Lockheed Martin; abortion rights advocates; new car dealers; and the financier-turned-liberal-megadonor George Soros. All have found common cause in keeping Newsom in his job.

A new CalMatters analysis of the donors to the main anti-recall committee found that organized labor threw Newsom the largest financial lifeline — roughly 45% of the total, including $1.8 million from the teachers union and $1.75 million from the prison guards this week.

Companies and individuals hailing from the state’s business community coughed up another 36% of the $39 million. The remainder came from an assortment of ideological interest groups, tribal governments, the California Democratic Party and small-dollar contributors. (CalMatters’ recall money tracker now shows where donations from a wide range of industries are going.)

Newsom’s Financial Defenders

Campaign contributions to committees fighting the recall. Click here to see individual contributors.

If political contributions are a vote of confidence, the votes of the well-heeled, powerful and influential are overwhelmingly in the incumbent governor’s camp.

Newsom’s current haul isn’t quite the $58 million that he raised during the 2018 race. And it’s dwarfed by recent corporate-backed ballot measure fights that have hit the 9-digit mark.

“This is a relatively painless way to strengthen your relationship with an incumbent governor.”

— Dan Schnur, Former Chairperson of California’s Fair Political Practices Commission

But if donations were votes, Newsom would defeat the recall in a landslide. The political reality could be far different: A new UC Berkeley Institute of Governmental Studies poll found pro- and anti-recall sentiment in a virtual dead heat among likely voters. That could provide Newsom’s allies with fresh incentive to pony up — and his campaign more reason to solicit money for the campaign ahead, especially to increase awareness and enthusiasm among Democrats.

The governor’s campaign seems to be taking the threat seriously. In a TV spot that hit the state’s airwaves Wednesday night, U.S. Sen. Elizabeth Warren of Massachusetts, a progressive icon, implored the electorate to vote no “to protect California and our democracy.”

Neither a boatload of money nor a crowded roster of well-financed supporters, however, is a sure recipe of electoral success. Last year, a campaign to repeal state restrictions on affirmative action outraised the opposition nearly 17-to-1, while racking up endorsements from every corner of California power and influence. It failed by 14 percentage points.

But there’s another, even more important reason for many to give, said Dan Schnur, former chairperson of California’s Fair Political Practices Commission and a past strategist for Republican politicians: “This is a relatively painless way to strengthen your relationship with an incumbent governor.”

California campaign finance regulations cap the amount of money that gubernatorial candidates can raise at $32,400 per person — a limit that covers the challengers seeking to replace Newsom. But no such limits apply to committees raising money for a general cause — like the one defending Newsom against the recall. That difference is allowing individuals and groups to write million-dollar checks to help the governor.

Here’s how the competition stacks up.

While candidates can only receive capped contributions or may self-fund, general pro-recall committees can receive unlimited contributions. All the pro-recall candidates and committees have raised $18.4 million combined, compared to $42 million for the anti-recall side.

Organized Labor to the Rescue

Just as the news of the surprisingly grim Berkeley poll was percolating through the California political universe, two more public employee unions — both political forces in their own right and conspicuously absent from the governor’s campaign finance filings — announced this week that they were opening up their coffers.

First, the California Correctional Peace Officers Association threw in $1.75 million. Then came the California Teachers Association with $1.8 million.

Just days after the check from the teachers landed in Newsom’s campaign account, he gave the closing keynote speech today at the union’s summer digital meeting. He applauded the union’s hard-fought legislative accomplishments, which, incidentally, served as a reminder to the teachers that the governor had helped secure them.

Though the teachers were the largest funder of Newsom’s 2018 campaign, that relationship got complicated last spring as Newsom and the union sparred first over when teachers would get vaccines, then how quickly schools should reopen.

But now, Newsom “is facing opponents who are funded by a network that wants to dismantle public education. The choice is stark and clear,” union president E. Toby Boyd said in a statement Wednesday.

Many of the top Republicans vying to take Newsom’s place in the governor’s office support bolstering charter schools, allowing families to spend publicly-funded vouchers on private education and making it easier to fire teachers deemed to be underperforming.

This Is Our Moment - California Teachers Association

“Newsom “is facing opponents who are funded by a network that wants to dismantle public education. The choice is stark and clear.”

— E. Toby Boyd, President of the California Teachers Association

The teachers and correctional officers join a financial field fighting the Newsom recall that is crowded with other organized labor groups, including other public employees, construction workers, nurses and other health care workers and food pickers and processors.

Service Employees International Union California, one of the state’s most influential organized labor groups, has kicked in $5.5 million through its various locals. The largest single contribution came from Local 2015, which represents nursing home employees and other long-term care workers.

Local president April Verrett declined an interview request, but emphasized in a statement that the union’s support is more than just financial: “We plan to mobilize our predominantly Black, brown, and immigrant caregivers, who have been on the front lines of this pandemic, to make their voices heard as we go door to door, over the phone and online encouraging a vote against the recall.”

For many labor groups, supporting Newsom in his time of need is an investment in the future. One of the governor’s longstanding health policy goals is to implement what he has called a “master plan on aging” to beef up the state’s patchwork system of elder care. The idea is still in blueprint form, but the promised overhaul would require a massive increase in state funding for health care and long-term care programs.

For other unions, supporting Newsom now looks a bit more like a thank you card. Prison guards, for example, aren’t reliable Democratic allies. But earlier this year, they scored a major pay hike from the governor and lawmakers over the objections of the state’s Legislative Analyst’s Office.

And the alternatives to Newsom on the recall ballot? For most labor groups, there are few appealing options: When he was mayor of San Diego, Kevin Faulconer made overhauling the pension system for former city employees a top priority. John Cox has repeatedly railed against the political influence of prison guards. And conservative radio show host Larry Elder opposes the minimum wage.

Familiar Financiers

But unions make up less than a majority of the contributors to the Newsom cause. The rest of the list is full of regular large donors to California political campaigns, including special interests and more than a few billionaires.

Netflix CEO Reed Hastings — a notable charter school advocate who supported Antonio Villaraigosa over Newsom in the first half of the 2018 campaign — gave the governor’s committee its largest single contribution of $3 million.

Other titans of Silicon Valley have lined up to back Newsom. In a public letter published in March, Laurene Powell Jobs, founder of the Emerson Collective and widow of Apple’s Steve Jobs; prominent Bay Area angel investor Ron Conway; and former Google CEO Eric Schmidt were among executives and venture capitalists to close ranks behind the governor. Since then donors from the tech sector have given nearly $1.4 million.

Another $1 million came from George Marcus, a Bay Area real estate mogul with a history of backing moderate Democrats and opposing rent control measures. More than $500,000 was donated by hedge fund heir Liz Simons, who in recent years has contributed millions to criminal reform justice efforts and progressive prosecutors, including Attorney General Rob Bonta.

And whatever Newsom’s conservative critics might say about his anti-business policies, there are plenty of proud capitalists on his roster of defenders. That includes typical big spenders such as the California Realtors, dentists and the building industry.

Unlike other sectors, which have largely consolidated in one camp or the other, developers are divided. While individual real estate titans including GOP mega donor Geoffrey Palmer support the recall, the California Building Industry Association, which lobbies in the state Capitol, is backing the governor.

Association President Dan Dunmoyer, who served as cabinet secretary to Arnold Schwarzenegger after he became governor in the 2003 recall, said that on policy, the governor has said many of the right things. Even if he hasn’t been able to deliver on those lofty goals, Dunmoyer said he wants to give the governor another year to “prove himself” before the next regularly scheduled election in 2022.

He said his group’s support for Newsom is also partly about timing. When so much is uncertain in California, a little stability might do developers good, he said.

Removing a governor, he said, is “just not really logical, especially in the middle of a pandemic, fire, housing, homeless crisis.”

About the Author

Ben Christopher covers California politics and elections. Prior to that, he was a contributing writer for CalMatters reporting on the state’s economy and budget. CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters.

[activecampaign form=27]

RELATED TOPICS:

DON'T MISS

Who Owns Businesses in California? A Lawmaker Wants the Public to Know

DON'T MISS

$11M State Grant Will Help Fresno’s Emergency Shelter Beds, Mental Health Services

DON'T MISS

City Council Finally Gives New NW Fresno Costco a Green Light

DON'T MISS

Prop 47 Reformers Send Nearly a Million Signatures to Sacramento

DON'T MISS

BTC Scammy Scams, Impact of Blockchain on Global Markets: Crypto The WonderDog Show

DON'T MISS

US Vetoes Full United Nations Membership for Palestine

DON'T MISS

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

DON'T MISS

Cavinder Twins Are Returning to Miami for Their Last Season

DON'T MISS

California Sets Long-Awaited Drinking Water Limit for ‘Erin Brockovich’ Contaminant

DON'T MISS

Savannah Bananas Dominate Social Media, Sell Out Stadiums Nationwide Including Fresno

UP NEXT

California Sets Long-Awaited Drinking Water Limit for ‘Erin Brockovich’ Contaminant

UP NEXT

See the Fully Equipped House Homeless People Built on LA Freeway Strip

UP NEXT

Vital Climate Tool or License to Pollute? The Battle Over CA’s First Carbon Capture Project

UP NEXT

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

UP NEXT

Paris Hilton Backs California Bill to Bring More Transparency to Youth Treatment Facilities

UP NEXT

Ex-Marine Gets 9 Years in Prison for Firebombing California Planned Parenthood Clinic

UP NEXT

California Officials Sue Huntington Beach Over Voter ID Law Passed at Polls

UP NEXT

Why Tortillas Sold in California May Be Forced to Add a New Ingredient

UP NEXT

Palestinian Supporters Block Golden Gate Bridge in Nationwide Protest

UP NEXT

Bureau of Prisons to Close California Women’s Prison Where Inmates Have Been Subjected to Sex Abuse

Prop 47 Reformers Send Nearly a Million Signatures to Sacramento

14 hours ago

BTC Scammy Scams, Impact of Blockchain on Global Markets: Crypto The WonderDog Show

14 hours ago

US Vetoes Full United Nations Membership for Palestine

15 hours ago

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

15 hours ago

Cavinder Twins Are Returning to Miami for Their Last Season

16 hours ago

California Sets Long-Awaited Drinking Water Limit for ‘Erin Brockovich’ Contaminant

17 hours ago

Savannah Bananas Dominate Social Media, Sell Out Stadiums Nationwide Including Fresno

19 hours ago

Biden is Off on Details of His Uncle’s WWII Death as He Calls Trump Unfit to Lead the Military

20 hours ago

Big Names in Rap, Christian Music, and Comedy Headline Must-See Weekend Entertainment

20 hours ago

US and UK Issue New Sanctions on Iran in Response to Tehran’s Weekend Attack on Israel

20 hours ago

Who Owns Businesses in California? A Lawmaker Wants the Public to Know

SACRAMENTO, Calif. — A California lawmaker wants to require business owners and landlords to disclose their identities under legislation aim...

1 hour ago

1 hour ago

Who Owns Businesses in California? A Lawmaker Wants the Public to Know

13 hours ago

$11M State Grant Will Help Fresno’s Emergency Shelter Beds, Mental Health Services

13 hours ago

City Council Finally Gives New NW Fresno Costco a Green Light

14 hours ago

Prop 47 Reformers Send Nearly a Million Signatures to Sacramento

Crypto the WonderDog Show
14 hours ago

BTC Scammy Scams, Impact of Blockchain on Global Markets: Crypto The WonderDog Show

15 hours ago

US Vetoes Full United Nations Membership for Palestine

15 hours ago

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

16 hours ago

Cavinder Twins Are Returning to Miami for Their Last Season

MENU

CONNECT WITH US

Search

Send this to a friend