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16 Mar 2018

PAC-Money Chaos: Who, in Part, Paid for an Ad Attacking Gavin Newsom? Organizations Supporting Him

Written by  Dan Morain, CALmatters
Gavin Newsom. Gavin Newsom. Charlie Nguyen via Wikipedia.org

An independent political action committee paid for an ad slamming Lt. Gov. Gavin Newsom—partly with money from groups that are backing his run for governor.

Welcome to the wild ways of campaign money, circa 2018.

The ad comes courtesy of the Asian American Small Business Political Action Committee, one of scores of campaign organizations that, by law, must be disconnected from candidates who may benefit from their spending.

Its name aside, the Asian American Small Business PAC is funded by Chevron, AT&T, Pacific Gas and Electric, Southern California Edison and many other big business and labor organizations that are political players in Sacramento.

The anti-Newsom ad, like many of its ilk, employs ominous music, fuzzed-up photos and a narrator who uses innuendo as she cites an affair Newsom had in 2005, revealed in 2007, when he was San Francisco mayor. All that is typical of attacks by independent campaign groups. What sets this one apart is its funders.

One is the California Teachers Association, which has endorsed Newsom for governor and donated $29,200 to him in December. A few months earlier, the teachers’ union gave $25,000 to the Asian American Small Business PAC.

The California State Council of Service Employees (SEIU) donated $29,200 to Newsom for Governor in February, at about the time the ad surfaced. A year earlier, the SEIU, which largely represents government workers, gave $10,000 to the Asian American Small Business PAC.

Same with the Union Pacific Railroad, the PricewaterhouseCoopers accounting firm, the San Francisco-based garbage and recycling company Recology, and the Viejas Band of Kumeyaay Indians, which owns casinos in San Diego County. They and others donated to Newsom’s election effort and to the PAC, which seeks to derail Newsom’s campaign.

Top executives with 21st Century Fox gave to Newsom for Governor, while the corporation gave to the PAC. Donors to Newsom's gubernatorial campaign accounted for more than a fourth of the $420,000 raised by the PAC in 2017.

For now, the ad lingers on the committee’s website and has not been broadcast. But as of Dec. 31, the committee had $256,000 in the bank, which means it could fund wider distribution as the June primary election nears.

Dave Low, executive director of the California School Employees Association, called the ad a “complete surprise.” The union, which represents public-school employees who are not teachers, donated $29,200 to Newsom in February and $12,500 to the PAC last year.

Low said he called Bill Wong, the longtime consultant to the PAC, demanding that the ad be taken down. When his request was rejected, Low decided that the school employees’ union no longer would give to the committee.

“It’s not something CSEA would fund or back,” Low said.

Wong, who declined to comment, left as the committee’s consultant in November and now is a top aide to Assembly Speaker Anthony Rendon, overseeing Assembly Democrats' campaigns.

In the past, Wong was an adviser to Treasurer John Chiang, another Democrat running for governor. The Asian American Small Business PAC contributed $20,000 to Chiang’s gubernatorial campaign in 2016. Chiang has denied any responsibility for the ad.

By law, donors to the PAC and other outfits like it cannot dictate how their money is spent. They gave believing their money would benefit Democratic candidates who are Asian-American, and that their donations would help ingratiate them with Asian-American lawmakers.

Jennifer Webber, an Oakland consultant who works for the committee, sent an email to justify the ad: “People from within and outside the Capitol are calling for its culture to change. The PAC felt it was important to raise these questions about Newsom so Californians can evaluate whether he is the person who can lead that change. We don’t think he is.”

Rebecca Zoglman, of the California Teachers Association, called the spot "disappointing" and said it “screams a little bit of desperation.” It fails to focus on issues that matter, such as public education and health care, Zoglman said.

Donors who were shocked by how their money was spent should have considered the group's history. Although it's run by and supports Democrats, it spent $124,000 in 2015 against state Sen. Steve Glazer, a Democrat from Orinda.

To help Glazer's Democratic opponents, the committee tried to prop up a Republican candidate who had dropped out of the race and endorsed Glazer. In attack mailers sent to Republican voters, the committee said Glazer had been "advising liberal Jerry Brown" and managed Brown's 2012 campaign for a ballot measure that raised income and sales taxes to help fund schools.

The statements were intended to inflame Republicans who were considering supporting Glazer. Leaders of the unions who gave to the committee winked at the duplicity in 2015, because they hoped to replace him with a labor-friendly Democrat.

Not one to forget, Glazer said in an email that "the people behind this committee are sleazeball operators without integrity or conscience who have no business working in California politics." That, of course, assumes integrity and conscience are part of the job description.

CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.

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