Simon Trails Davis in Major Fund-Raising

Since winning the Republican primary last month, gubernatorial candidate Bill Simon Jr. has raised less than half the amount of the man he hopes to beat, Gov. Gray Davis, according to a Times analysis of campaign finance reports.

Simon’s slow start in amassing the large contributions needed to wage his fall campaign has prompted concern in Republican circles, particularly since Davis already had $26 million in his campaign war chest when the general election campaign opened March 6.

Simon raised $486,900 in contributions of $5,000 or more in the four weeks after the March 5 primary, according to reports filed with the secretary of state’s office.

More than a third of Simon’s money--at least $170,000--came from his family. Aimee S. Bloom, his sister, donated $70,000, while two other sisters gave $50,000 each. Simon and his relatives were also the biggest donors to his primary campaign, with Simon himself giving $5 million.

But Davis took in more than twice as much as Simon--over $1.2 million in large contributions--in just three weeks after the election.

At this point in the general election campaign, state law requires candidates for governor to disclose all contributions of $5,000 or more within 10 business days of their receipt. Contributions of less than $5,000 are not required to be disclosed until July, when candidates must also report the cash they have on hand.

The contribution reports analyzed by The Times cover the first month after Simon, an asterisk in the polls as the year began, captured the GOP nomination by handily beating former Los Angeles Mayor Richard Riordan and Secretary of State Bill Jones.

In part to boost his fund-raising, Simon is now in Washington, D.C., where he is to meet with President Bush and Vice President Dick Cheney today at the White House. Bush plans to headline two fund-raising dinners for Simon later this month in Los Angeles and San Francisco.

The Los Angeles financier, who had never run for public office before entering the race for governor of the nation’s largest state, attended a fund-raiser Tuesday evening with Republican governors. He also has been courting members of California’s congressional delegation--most of whom endorsed Riordan in the primary.

Simon campaign strategist Sal Russo said that Simon’s fund-raising efforts were “right on target” and that the Bush dinners would be Simon’s biggest moneymaking events.

“We’re content with our progress,” he said.

But other Republican analysts suggested that Simon is lagging.

Allan Hoffenblum, a Los Angeles GOP strategist, said Simon’s fund-raising has been hurt because he has not convinced many Republican contributors that he can beat Davis in November.

“Simon’s job right now is to make people believe he can defeat Gray Davis. If people believe he can run a winning campaign, the money will no longer be an issue,” Hoffenblum said.

Many Observers Give Governor the Edge

Despite Davis’ lackluster popularity, many political observers assume that the benefits of incumbency, a hefty bank account and an experienced campaign team give the governor the edge over an untested challenger whose political views are more conservative than those of most Californians.

A national Republican strategist, speaking on condition of anonymity, said the vast majority of politically aware contributors look skeptically on the Simon campaign.

“They believe Simon is going to get painted into the corner as another typical right-winger and that he’s on the defensive against Gray Davis,” the strategist said.

He said Simon should have aired television ads immediately after the primary to define the general election campaign. “It’s very clear--Politics 101--the person who sets the agenda is the person who’s going to define the race, define the issues.

“There were one of two story lines that could have emerged after the primary,” he said. “Story line No. 1 was Gray Davis painting Simon as out of step with California, extreme on the environment, extreme on the [abortion] issue, extreme on gay rights and social issues.

“The other story line was Simon going out on TV, spending money--he’s a wealthy man--going after Gray as an ineffective, incompetent, overly political governor. It doesn’t seem like that’s happening.”

Simon strategist Russo acknowledged that rather than focusing on fund-raising, Simon concentrated on touring the state and talking about issues during the first two weeks after the primary.

Russo said Bush’s upcoming appearances on Simon’s behalf will send an important signal to Republican donors to get behind the GOP candidate. Sales of $1,000 tickets to the Bush events “are going quite briskly,” he said.

Davis campaign strategist Garry South said turnout at the presidential fund-raising dinners for Simon will reflect Bush’s popularity, not Simon’s.

“The word has gone out from the White House that they want these Bush events to be a success,” he said. Simon’s fund-raising may also be hurt by a perception that he can finance the campaign himself without large contributions, South said.

While Simon struggles to build his bank account for the long race to November, prodigious fund-raiser Davis continues to report a steady stream of contributions of $5,000 or more.

By far the largest contribution--just over a quarter of a million dollars--came from the California Correctional Peace Officers Assn. The donation came after Davis agreed to a substantial raise for state prison guards and recommended that five private prisons be closed.

The governor also received large checks from unions representing teachers, school employees, and insulators and asbestos workers--all of whom have an interest in who holds the governor’s office. Two timber companies were among his larger donors.

Biggest Donation From Moderate GOP Group

Simon collected his biggest donation--$100,000--from the New Majority political action committee. The group of moderate Republicans based in Orange County had supported Riordan in the primary, but they rallied behind Simon after his primary victory.

“We think it’s of paramount importance to defeat Gray Davis,” said Larry Higby, the group’s chairman. Higby said Simon would restore a sense of confidence in the governor’s office and help create a more favorable business climate.

The organization wants to broaden the Republican Party’s appeal to California voters by making the GOP more mainstream and less tied to conservative positions on issues such as abortion, Higby said.

“On the vast majority of issues, Bill Simon has our support,” he added.

Among Simon’s non-family donors was businessman Carl Lindner, a major investor in finance and insurance as well as Chiquita bananas and the Cincinnati Reds, who sent $25,000. A supporter of candidates in both political parties, Lindner also has given to Davis.

Much of Simon’s money continues to come from outside California, particularly the New York City area, where his late father, former U.S. Treasury Secretary William E. Simon, established a Wall Street investment company.

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Times staff writer Mark Z. Barabak in Washington contributed to this report.

(BEGIN TEXT OF INFOBOX)

Fund-Raising in the Governor’s Race

Gov. Gray Davis has raised more than $1.2 million since the March 5 primary--more than twice the amount collected by Republican challenger Bill Simon Jr. The slow start to Simon’s fund-raising for the fall campaign is raising concerns among Republican Party leaders, particularly when Davis already has built a huge campaign warchest.

GOV. GRAY DAVIS

Total: $1,287,624

Top Donors*

California Correctional Peace Officers Assn. PAC--$251,000

Martin J. Wygod, chairman, Medical Manager Corp.--$100,000

Glenn R. Doshay, investor, Polantir Capital Inc.--$50,000

National UAW Community Action Program, Detroit--$50,000

Reed Hastings, CEO, NetFlix--$50,000

Stanford Financial Group Co., Houston--$50,000

California Federation of Teachers--$25,000

Heat & Frost Insulators & Asbestos Workers, Local 5 PAC--$25,000

George E. Karetas, president, Premier Foods--$25,000

George M. Marcus, chairman, Marcus & Millichap--$25,000

Political Action for Classified Employees - California School

Employees Assn.--$25,000

Sierra Pacific Industries--$25,000

Simpson Timber, Sacramento--$25,000

Wine Institute Fund--$25,000

BILL SIMON JR.

Total: $486,900

Top Donors*

The New Majority PAC--$100,000

Aimee S. Bloom, Morristown, N.J.--$70,000

Bruce Karsh, Los Angeles--$50,000

Leigh S. Porges, Short Hills, N.J.--$50,000

Mary Simon Streep, New Canaan, Conn.--$50,000

Thomas N. Jordan, Healdsburg, Calif.--$25,000

Carl H. Lindner, CEO, American Financial, Cincinnati--$25,000

Leon M. Wagner, chairman, GoldenTree Asset Management, N.Y.--$25,000

* At this point in the general election campaign, candidates for governor must disclose all contributions of $5,000 or more within 10 days of receipt. Donations of less than that amount do not have to be reported until midsummer.

Source: California secretary of state

Graphics reporting by MALOY MOORE / Los Angeles Times