California lawmakers raise unlimited funds for personal causes

California Assemblyman Sandr? Swanson formed his own nonprofit foundation last year and raised tens of thousands of dollars from Capitol interests for youth scholarships.

Board of Equalization member Jerome Horton solicited $85,000 in 2010 and 2011, largely from major corporations, to bolster a nonprofit group run by his wife, Yvonne.

Assemblywoman Wilmer Amina Carter raised $34,000 the past two years for her Wilmer Amina Carter Foundation to help students at a Rialto school named after her ? Wilmer Amina Carter High School.

Only a handful of California's 132 statewide officeholders solicit for charity foundations they personally founded, but the practice has grown since 1997, when California opted not to set limits on such fundraising.

Pouring big bucks into a lawmaker's pet cause enables special interests to sidestep campaign contribution limits and make a positive impression on those whose votes they need.

Such fundraising also can be a boon to communities, particularly poor ones, in an era of fiscal belt-tightening.

"Some communities rely on movie stars," Horton said. "In poor communities, they rely on their public servants, their elected leaders."

Cumulatively, the Swanson, Carter and Horton foundations have raised money for projects ranging from student scholarships to food centers to tax-preparation assistance. The three officeholders have not been paid by their nonprofits, but analysts say that such ventures pay dividends by polishing political images and reputations.

"It's doing well by doing good," said Jack Pitney, government professor at Claremont McKenna College. "You want to come across as a good guy. A charitable foundation is a way of establishing a name for oneself."

Donors get something, too.

"Special interests are not in the habit of throwing money around," said Phillip Ung of California Common Cause. "This money is spent to influence legislators and other elected officials."

Gov. Jerry Brown has not formed a personal foundation, but as Oakland mayor he founded two charter schools for which he continues to raise money ? $2 million to $3 million annually, much of it from groups active at the Capitol.

"The donations to these schools help thousands of Bay Area students obtain a first-rate education," said Elizabeth Ashford, Brown's spokeswoman. "Governor Brown is committed to their success."

Assemblyman Tony Mendoza and his wife, Leticia, jointly formed the Southern California LEAD Foundation ? for leadership, education, advancement and development ? in 2009 to "improve the quality of life for Hispanic youth" in southeast Los Angeles.

Mendoza, D-Artesia, said he has solicited money for LEAD, but he is not the sole source of its funding and he recalls raising no donation topping $5,000, the level requiring disclosure. LEAD received $26,000 its first year, the only year for which its tax filings are available.

Mendoza said that neither he nor his wife is paid by the foundation and that its fiscal records are in disarray because its treasurer was Kinde Durkee, who was arrested last year and accused of stealing large sums of money from numerous political committees she managed statewide.

Donation limits urged

Contributors to lawmakers' charities, unlike those to their campaigns, are not required to report their donations publicly. Thus, there is no way to verify lawmakers' fundraising claims.

California sets strict limits on campaign donations. Lobbyists cannot give to legislative races, for example, but they can give unlimited sums to a lawmaker's foundation, and contributions of $4,999 or less need not be disclosed.

Source: http://www.modbee.com/2012/03/12/2108715/california-lawmakers-raise-unlimited.html

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