In San Diego

Follow the $$: Non-Monetary Donations

In San Diego

By Ryann Grochowski
Investigative Newsource

In the latest installment of the “Follow the Money” series, we examined the details behind what candidates can accept in contributions other than cash. These can include donations of items, supplies, property and professional services. Even though these donations don’t involve an exchange of cash, they must be properly reported by the candidate in his or her finance reports.

Q: What are included in non-monetary campaign donations?

A: There are a wide variety of examples, but basically anything that is of value to a campaign must be reported publicly. Refreshments at a campaign event, or the cost of the meeting place for the event itself, are a couple examples.

These donations must be of fair value. For instance, if a restaurant owner allows a candidate to use a banquet room in his restaurant for a campaign event, the cost of the room must be what it would cost for any person to rent it.

Another example would be loan forgiveness. If a candidate receives a campaign loan from a friend, and a friend later forgives or reduces the amount owed, that needs to be reported.

Q: Are there any regulations governing amounts of these contributions?

A: Yes, and they are just like the regulations on monetary contributions. Individuals may not give a candidate anything worth more than five hundred dollars per election, and organizations are not allowed to contribute to candidates.

Q: In a previous installment, we discussed candidates donating money to their own campaigns. Can a candidate do the same for non-monetary donations?

A: Yes, and just like monetary donations, a candidate can donate as many items to his campaign as he wants. It must be reported differently, though. For instance, if a candidate wants to donate office supplies to his campaign, he can’t go out and buy pens and paper from his personal checking account and “donate” the supplies. He must put that money into his campaign account first, and then buy the supplies from there.

Q: Are there any exceptions to these guidelines?

A: Volunteers who donate their time to help a candidate, with no expectation of reimbursement, would not be considered in violation of the limit on service donations.

Hoteliers, hospitality industry back DeMaio over others

In San Diego

By Ryann Grochowski
Investigative Newsource

Councilman Carl DeMaio strongly supports the convention center expansion and the hotel tax that will fund it. In turn, he’s attracting the financial support of local hoteliers, caterers and event planners in his bid for mayor.

Our analysis of campaign finance documents shows companies in the hospitality and tourism industry have donated at least $23,000 to DeMaio’s campaign. That’s nearly three times what they’ve donated to his competitors.

As councilman, DeMaio supported the creation of a taxing district that would add a one-to-three-percent surcharge on city hotel rooms. Hotel owners approved that tax on Tuesday.

Included in the industry’s donations is $4,175 from members and relatives of the San Diego Convention & Visitors Bureau board for fiscal years 2012 and 2011. ConVis is a private non-profit group of organizations that market county tourism.

Last month, DeMaio voted with the council majority to approve the switch of convention marketing duties from the public convention center board to ConVis. The move was criticized as a power play to get hotel owners to approve the room tax.

In a brief interview, DeMaio said these donors are no different than his others — their expectation is that he will “clean up the mess in City Hall.”

The convention center expansion has been a main issue in the mayoral race. Candidates District Attorney Bonnie Dumanis and Assemblyman Nathan Fletcher approve of the convention center’s expansion, though they have disagreed with the financing plan.

Dumanis’ campaign has received at least $8,600 from the hospitality industry, including $700 from ConVis board members and relatives. Fletcher has received at least $9,150, with $1,100 coming from board members.

Congressman Bob Filner, who opposes the tax and expansion plans, has received less than $300 in donations from hoteliers. No board members contributed to his campaign.

Filner has challenged DeMaio publicly and repeatedly about his support for the tax and the convention center expansion. He jumped on De Maio during a televised debate last week when DeMaio said the hotel tax wasn’t public money.

DeMaio said the center’s expansion was “critical to the economy” and that the transfer of marketing to ConVis would better the chances of bringing large events to the city. He also defended the hotel surcharge.

“The last two convention center expansions involved public money through the TOT, transient occupancy tax,” DeMaio said. “Under my Convention Center expansion proposal, the hoteliers will have to take the responsibility for financing the expansion.”

He added: “I believe that’s fair because taxpayers funded phase one and phase two of the convention center. It’s time for the business community to take the responsibility of phase three.”

Filner challenged the assertion.

“How can you call the vote on the transient occupancy tax not taxpayer-funded?” Filner asked. “It is a public tax and you’ve given the right to vote on that to a private group.”

To analyze the donations candidates received from the hospitality industry, Investigative Newsource looked for any donation from a person or company involved with area hotels, lodging, catering, parking or event planning, as well as any donations from board members listed on the ConVis website for fiscal years 2011 and 2012.

You can see our list of identified donors here.

Follow the $$: Ins and Outs of Campaign Finance

In San Diego

By Ryann Grochowski
Investigative Newsource

San Diego’s primary election is less than two months away, and candidates are raising and spending gobs of campaign cash. Limits on donations, loans and expenditures are strictly governed by the San Diego Ethics Commission, and the rules can be confusing. We’ve put together an occasional series to help you understand local campaign finance law and follow the money yourself. Our first installments tackle self-financing a campaign, contribution limits and campaign literature regulations.

Self-financing a campaign

This year is expected to be a record-breaker in political spending across San Diego.  Candidates in some of the city’s most contested elections have already lent and given their campaign large sums of money. Self-loans and donations are good ways to increase a campaign’s bottom line, but there are key differences between the two practices.

Q: What are they?
A: When a candidate lends himself money, he expects to raise enough to pay himself back. When he donates money, that’s money he doesn’t expect to get back. Also, candidates running for office in San Diego can lend themselves only $100,000 at a time, but there’s no limit on how much they can donate to themselves.

Q: Why do candidates give themselves money?
A: There could be a number of reasons. The candidate may simply need the extra money for campaign expenses. But political analysts also say it’s a matter of perception. If it looks like your campaign has a lot of cash, you look more successful and, thus, you’ll raise more from donors.

Q: Who’s doing this in local races?
A: Carl DeMaio, who’s running for mayor, has already lent and given himself quite a bit. He’s donated to his campaign about $390,000 as of March 17. He’s lent himself around $110,000, but has paid about half of that back. DeMaio’s competitors have pitched into their campaigns, too, just on a smaller scale. Bonnie Dumanis has lent her campaign $10,000; Nathan Fletcher has donated $500 to his campaign. As far as perception goes, the mayor’s race is a good example. In raw numbers, Carl DeMaio has raised the most money in the mayor’s race. But if you take away what’s he’s given to himself, Nathan Fletcher’s actually raised more outside cash.

To look up any city candidate’s campaign finance filings, go here.

Donation limits

Q: What limits are placed on donors?
A: San Diego has a pretty low ceiling on contributions. Individuals are limited to giving up to $500 to a candidate per election. That means if you donate $500 to Candidate A in the primary, and she wins and moves on to the general election in November, only then can you donate another $500 to her campaign. Also, only individuals can make donations. Corporations or partnerships are not allowed to contribute to city candidates.

Q: What about the independent expenditure committees that we’ve heard so much about?
A: That’s a little different. With independent expenditure committees, you’re not actually donating to a candidate. You’re donating to a committee that, by law, must not coordinate its efforts with a candidate. And there are no limits on donations to independent expenditure committees in the city. We will have more on independent expenditure committees soon, since they can be complicated.

Q: What are the rules for donations to committees that are for or against a ballot measure?
A: There are no donation limits there, either. The thought is that money can’t influence a ballot measure like it might influence a prospective officeholder.

Disclosures for campaign materials

This is the time of year when voters start finding their mailboxes stuffed with campaign mailers, and their phones ringing with campaign polls and robocalls. Campaign committees have to abide by specific regulations when it comes to telling voters exactly who’s behind those fliers and phone calls.

Q: How can voters find out who’s paid for a campaign filer or door hanger?
A: According to local law, any campaign literature, be it door hangers, news ads, mailers or posters, must say “Paid for by,” followed by the name of the candidate or committee that paid for the materials. It also must disclose the address and city of the committee and candidate, all in 12-point type. That’s different from state law, which only requires 6-point type.

Q: Are there any exceptions?
A: Yes, if fewer than two hundred of the campaign materials are created, there’s no requirement for a disclosure line.

Q: What about telephone calls from campaigns?
A: If a candidate’s committee calls more than 500 voters, the message must say “paid for” or “on behalf of” the candidate. The committee must also keep a copy of the phone message’s transcript, along with a tally of phone calls made, for four years.

Q: If there’s no disclosure on a mailer, is there a place that takes complaints from voters?
A: San Diego city campaign finance law is governed by the San Diego Ethics Commission. You can contact them if you have questions about campaign literature you’ve received.

PACs Playing Major Role in Congressional Fundraising

In San Diego

By Kevin Crowe
Investigative Newsource

As the June primary nears, candidates running for federal office in the 52nd and 51st Congressional Districts are drumming up support for their campaigns. Federal campaign finance reports the candidates filed over the weekend show Rep. Brian Bilbray is far ahead of his Democratic and Republican opponents vying for the seat in the 52nd.

Bilbray’s campaign has brought in just more than $1 million overall, and he has outraised all of his opponents combined in cash from donors and political action committees (PACs). The congressman has raised more than half of his money from PACs, most of which are based in Washington, D.C., and Virginia.

Port Commissioner Scott Peters has raised twice as much cash as his democratic opponent Lori Saladaña as they battle to make it through the primary in the 52nd. Peters’ campaign has brought in about $457,000 compared to Saldaña’s $214,000 since both committees started fundraising.

John Stahl, another Republican running in the 52nd, has a war chest second only in size to Bilbray’s, but almost all of that money has come from his personal loans to his campaign.

California State Senator Juan Vargas has also significantly outraised his opponent, Denise Moreno Ducheny, in his campaign to take the seat in the 51st Congressional District. Vargas has raised more than $400,000 while Ducheny has brought in about $210,000.

About half of Vargas’ cash has come from PACs and other committees, and he has loaned his campaign $60,000.

The graphic below breaks down the money flowing into candidates’ coffers by cash from donors, cash from committees such as PACs and how much of their own money they’re putting into the race.


Bob Filner Calls Report Inaccurate, We Respond

In San Diego

By Brad Racino
Investigative Newsource

Congressman Bob Filner has cited “inaccuracies” in our recent reporting on his remarks concerning the Port of San Diego — claiming the numbers prior to 2003 “Were not $4 billion.”

“[The ‘more than $4 billion’ numbers were from] this administration,” he said during an interview on KPBS Evening Edition, claiming he told Newsource the “no commerce” quote was meant for years “before that.’”

We just pulled up tonnage data from the Pacific Maritime Association, which goes back to 1995. This data is calculated using something called “revenue tonnage,” which takes into account worker hours and uses a formula to arrive at the total. So while these numbers do not represent the actual tonnage or overall value, they are closely related to both — and consistent in showing the port’s growth throughout the years prior to 2003.

Once again, Filner’s claims are wrong. The volume, according to the data, has nothing to do with the “current administration.”

(Note: We could not use actual tonnage or values because the Port of San Diego has delayed releasing the information).