Businesses Laundering Money for Arnold

(Really, Really dirty – promoted by SFBrianCL)

(crossposted on the BetterCA blog, My Left Wing and BooMan)

The San Fransico Chronicle has obtained an email sent to tech industry leaders who are joining Arnold on a trip to China. In that message they are wink wink, nudge nudge told not to reimburse the organization sponsoring the trip, but pay for their own flights and costs, AND drop $50k in the coffers of the California State Protocol Foundation, which incidentally doesn’t have report contributions.  They are intentionally laundering money that pays for the Governor’s trips overseas, and Arnold’s people say: “Sorry we can’t control what our friends do.”

High-tech leaders who may accompany Gov. Arnold Schwarzenegger on a November visit to China are being encouraged to avoid paying directly for the trip and instead make hefty donations to a nonprofit committee supporting the governor because the “contributions are not required to be reported,” according to an e-mail obtained by The Chronicle.

The arrogance is really quite astounding:

“The money that comes in can be used for anything. … It can be used for foreign trips,” Dicke [CFO for the Protocol Foundation] said. “The donors expect confidentiality. … We’re not required to disclose them, so we don’t.”

They are right; the letter of the law says that big business can contribute unlimited amounts of funds to organizations that then pay for the Governor to fly around the world.  But that is a far cry from the claims of independence from special interest groups like the Protocol Foundation that the Governor has tried to build his reputation on and far from what has been done in the past.  

Why do these donors expect confidentiality?  What do they have to hide from?  Why would they not want the public to know they are funneling money to the Governor?  Finally, why do they expect it when Gray Davis’s supporters did not?

Garry South, who was senior adviser to former Gov. Gray Davis, confirmed that Schwarzenegger’s Democratic predecessor also had a “host committee” — but he noted there was a key difference.
“Under Gov. Davis, a voluntary decision was made to report who gave money to that host committee,” South said. “We decided it was not worth shielding these people from exposure — that we had to release and report it.”

South, now an adviser to Controller Steve Westly, a Democratic gubernatorial candidate, said the TechNet’s solicitation crossed the line because it was “literally out there telling companies to launder contributions.”

“This is the pattern and practice of this administration — to try and hide as much of the money as you can,” he said.

The plethora of pro-buisness groups that have sprung up since the Schwarzenegger administration took office is another example of the message I noted earlier: “Say one thing, do another.”  It is up to you to send a message in return: “This is unacceptable and we will reject you and your big business supporters.”

About Calitics

Contact Calitics

Please contact us!  We can be reached best via email.
To contact the entirety of the editorial board, please email calitics at calitics DOT com To reach individual members of the board, send an email to the following user names at caliticsDOTcom:

Brian Leubitz: brian

Jeremy Woodburn: jsw

Julia Rosen: juls

David Dayen: dday

Lucas O'Connor: lucas

Robert Cruickshank (in Monterey): robert

Dante Atkins (hekebelos): dante 

What we are about:

1) Building a progressive online community that will:

 A) provide individual Californians a place to discuss progressive issues.

 B) enable local and statewide progressive candidates and elected officials a platform for discussing issues and campaigning.

 C) Be fun!  I love politics, especially the crazy breed that is California politics.

What you can do here:

Once you have signed up as a user, you will be able to do pretty much anything on the blog.  You can post comments, recommend diaries, or even write your own diaries.  You have a lot of control over this site, and if you don't like something that you can't change, I'll probably change it for you.  I want everybody to find calitics.com a very user-friendly site.  So, if you have a problem, just email me: brian (at) calitics (dot) com.

About Brian Leubitz (the blogger formerly known as SFBriancCL) Brian Leubitz's Facebook profile

Small Brian Image Hi!  Thanks for visiting Calitics, and I guess, wanting to know a little bit more about me. I used to be an attorney at a firm in San Francisco, specializing in patent prosecution of semiconductor products, but left before I went totally insane.  I recently completed a masters in public policy at UC-Berkeley (the Goldman School of Public Policy).

I started Calitics back in September of 2005 because of a lack of transparency in the statehouse. While federal politics gets a lot of attention from national media, and local politics from local media, state level politics often misses out.  That is unfortunate, especially in California. We have a massive budget, massive problems, and tremendous opportunities. I love local and state politics as it offers far more interaction than the distant DC politics.  Plus, after somewhat abandoning local politics for so long, Democrats need to focus on building a solid network in every state.  Hopefully, Calitics can contribute to the continued vitality of California's progressive movement.

Personally, I live in San Francisco with my husband (screw  you Prop 8), who is also named Brian. In addition to my blogging, I also help campaigns reach out to the netroots, and have worked with campaigns like No 98/Yes 99, Mark Leno for Senate, Lois Wolk for Senate, and No on 1A.

Thanks for dropping by.  Have fun and Join in!

About the Logo:
The pictures are, from left to right, The Golden Gate Bridge looking towards Marin, Lake Tahoe, California Redwoods, the Hollywood Sign, and surfers waiting by a San Diego beach. Brian took all of the pictures, with the exception of the picture of the beach with surfers.  The beach picture is licensed under Creative Commons Licensing Program and was taken by Flikr user Eggz, whose work is available at: http://scotteggers.photoreflect.com/.
The picture of the cattle ranch is from Ted Holzem, Mintier & Associates and is in Tulare County.

Traffic Stats