Council re-thinks campaign donation limit

Barbara Diamond

The City Council majority that voted three weeks ago to hike the

campaign contribution limit from $250 to $750 backed off at their

last meeting.

“It was my agenda item and I now believe $750 is too high,” said

Councilman Steven Dicterow.

The $500 limit, approved 3 to 2 on Oct. 21, was still too high to

be endorsed by Mayor Toni Iseman or Councilman Wayne Baglin, who was

on vacation when the original vote was taken.

“Faye and I were 35,000 feet up in the air and it was really

rough,” said Baglin. “I thought it was the weather, but I guess it

was what was going on in this chamber.”

The council is obliged by law to periodically review the city’s

municipal code section on election contributions. The review was held

at the Oct. 7 meeting and publicly noticed. The wording of the agenda

item did not send up any red flags and only a couple of residents

were at the meeting to testify.

More turned out for Tuesday’s meeting. Most of the 11 residents

who gave public testimony spoke against the increase to $750 and

urged the council to retain the $250 benchmark with increases only to

reflect inflation.

“We believe there should have been an effort made to gather input

form the community and city staff so the facts could be deliberated

prior to this decision,” said Linda Brown, co-chair of the Laguna

unit of the League of Women Voters.

Councilwoman Cheryl Kinsman, who is up for re-election next year,

asked speakers to explain why they felt it was acceptable to limit

candidates when political action committees have no limit.

It was the Lincoln Club that got limits thrown out,” said Jean

Raun, a member of the League of Women Voters, which supports

contribution and spending limits regardless of the source of funds.

The Lincoln Club, a countywide political organization with deep

pockets, successfully went to court to overturn spending limits.

“Cheryl assumes that people liked the court decision,” said

Village Laguna representative Barbara Metzger. “That was beyond out

control. Voluntary pledges are not.”

“It’s a little obscene to all of sudden have such a huge increase

in the contribution level in Laguna Beach,” Raun said. “The Times

(Los Angeles) made us look silly.”

Laguna’s $250 limit per election cycle was identical to other

Orange County cities of similar size that have limits, according to

league co-chair Brown. Laguna Beach ranks 26th out 34 cities in

Orange County in the number of registered voters, but the (proposed)

$750 contribution is the second highest among all cities in the

county that have limits, she said.

Councilwoman Elizabeth Pearson had suggested the $500 limit at the

Oct. 7 meeting, at which Councilwoman Kinsman proposed a $1,000 limit

-- $750 was accepted as a compromise.

“Some among the council majority claim the threat of independent

expenditures makes such a huge increase necessary and that low

contribution limits encourage such independent expenditures,” said

Brown. “The facts don’t support this.

“In the last election for city council, there were no independent

expenditures in San Juan Capistrano, Laguna Woods or Seal Beach --

cities that all had a $250 limit. Huntington Beach, with a

contribution level of $300, experienced independent expenditures in

its city council race of approximately $153,000.

Independent expenditure committees, which include named PACs, are

a wild card in any election, Brown said.

“When the ordinance was passed (in 1994), PACS were limited and

playing field was level,” Councilwoman Kinsman said. “Now it isn’t.”

She said PAC spending can put a candidate into debt because they

can outspend and spend more efficiently than individual candidates.

“I am trying to achieve a level playing field for everyone” said

Councilman Dicterow. “There is a dirty little secret in town. For the

past 20 years (elected officials) have been incumbents, former

council members or endorsed by major groups in town. They had great

name recognition.

“My goal was to see people who don’t have that can get elected. I

considered going below the $250 limit, but that gave the advantage to

those with more money, so I decided to experiment with raising it. If

it doesn’t work, we’ll bring it back.”

Derek Ostensen said that the larger contribution limit minimizes

the number of donors needed and increased their influence on the

candidates.

“The limit of $250 made everyone one they can contribute without

going up against a 750 pound gorilla,” Ostensen said.

Dicterow also proposed, at the Oct. 7 meeting, and the council

majority passed a reduced voluntary spending limit per election

cycle.

Most of the opponents of the increase in donation limits also

opposed the reduction in the voluntary spending limit from $30,000 to

$15,000. No one will make that pledge, according to Village Laguna

representative Metzgar.

“Thirty thousand is a more realistic limit,” said Doug Reilly.

Bill Rihn said the candidates can impose their own contribution

and spending limits.

“If you go over the pledge, so what -- there are no penalties,”

Rihn said.

However, Dave Connell, opposed the increase in the donation limit,

but liked the reduction in the spending limit.

“I was one-time candidate,” Connell said. “I got a tremendous

number of votes for just pennies.”

His candidacy was not successful and is blamed by some of the

city’s political observers as the reason Iseman squeaked by incumbent

council member Baglin in her first campaign. Baglin has never

publicly made that claim. He said he just didn’t work hard enough.

Baglin saw Dicterow’s agenda item before he left on vacation.

“I thought it was innocuous -- I didn’t know any action would be

taken,” Baglin said. “I have participated in seven elections in town.

I am no longer afraid of PACs or fat cats. If you work hard you can

get elected. Baglin said donors of $150-$250 made up about a third of

the contributions to his last campaign. Another third donated from

$75-$150 divided and the final third donating $50 or less. Some of

the most meaningful donations were $5 or $10, from people who gave as

much as they could, he said.

“I take pride not in how much money I raised, but on the number of

contributors to my campaign,” Mayor Iseman said.

The council tabled a proposal to put campaign contributions and

spending on-line, pending more information. Iseman and Baglin would

have moved ahead with the program, but were out-voted.