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Inside California's Progressive “Dark Money” Machine: How Democrats Move Union Donations

RURAL COUNTY DARK MONEY

Political reporting is like writing a detective story: except for their bad scars, challenging dental work and thin lips, the bad guys frequently turn out to be not so bad. It’s the so-called good guys you have to watch out for. They’re not wearing fedoras or carrying a cannon beneath a trench coat. They don’t necessarily gargle with rye whiskey. Today they are more likely to wear a fine suit and claim they’re fighting for the marginalized, the oppressed – for social justice.

Take the case of Humboldt, a sparsely populated rural county near California’s Oregon border. The Democratic Central Committee there has taken a remarkable interest in state Sen. Josh Newman, a Democrat representing parts of Los Angeles, Orange, and San Bernardino counties over 500 miles away.

Since 2015, Humboldt’s central committee has raised over $1.4 million, primarily from California’s most powerful unions. The committee sent around 20 percent of that money, $275,000, to Newman’s political campaigns. By contrast, central committees in Los Angeles, Orange, and San Bernardino – the three counties Newman actually represents – sent him less than $2,000 combined.

It’s a puzzle. And it gets more puzzling: Humboldt is one of five Democratic Party central committees in five remote, sparsely populated California counties that move millions of dollars from powerful government unions into the campaigns of Democrats running in far-off districts.

UNION SUPPORT FOR NEWMAN

In the case of Newman, in return for support from the unions, he has taken up a crusade against conservative school boards that refuse to tow the union line. Last year, Newman authored Senate Bill 494, which prevents a school board from firing a superintendent within 30 days after an election; a bill crafted in response to the termination of Orange Unified’s district superintendent after the conservative board realized they needed someone who would implement the will of the people.

This legislative session, Newman is continuing his crusade against school boards with Senate Bill 907, which would add two new seats to Orange County’s five-member board and change the election date to counter the conservative majority. The legislation ignores other similarly situated boards in the state, confirming that this is a political hit job.

FIVE RURAL COUNTIES

For nearly a decade, Democratic central committees in Humboldt, Tehama, Napa, Mendocino, and Del Norte counties have contributed $7.2 million to state legislative candidates in distant counties. That represents about $21 per person from a combined population of just 457,000, a California Policy Center analysis of state campaign disclosures found. These 5 rural counties have received an average of 94 percent of their total funding from government and private-sector unions since 2015.

By contrast, the state’s remaining 53 Democrat central committees, representing nearly 39 million Californians, made campaign contributions of about $0.73 cents per capita during the same period.

“Moving big bucks through relatively obscure party county committees has become a significant way for special interests to get their dollars into play in partisan political races — without leaving their fingerprints on the contribution,” says Jon Fleischman, a Republican consultant, strategist, and former executive director of the California Republican Party.

DEMOCRATIC COORDINATION AND UNIONS

This system of funneling money through these committees is not directed by smoke-filled rooms of union bosses but is rather a completely formalized program that is overseen by the California State Senate Democratic Caucus. According to Kathy Cole, Chair of the Tehama County Democratic Central Committee (TCDCC), the TCDCC is one of several DCCs that is “part of a program overseen by the California State Senate Democratic Caucus in which funds, predominantly from labor unions, are deposited into our DCC bank account.”

“These funds are strictly for the Caucus to request that TCDCC send specific amounts to targeted state senate campaigns at strategic times in election cycles,” Cole wrote in an email responding to an inquiry by California Policy Center.

The program appears designed to mask the unions’ outsized role in state legislative races and pay-to-play lobbying. And it shows how the state’s government unions — teachers, police, prison guards, firefighters, and office workers — have used these remote county committees to discreetly fund the creation of a Democratic supermajority that has nearly doubled state spending — all while ignoring the government’s high-profile failure to deliver essential services.

After Cole’s original statement, she reached out the following day with second thoughts and requested a retraction.

“I am retracting my earlier statement, I am new to this role and still getting up to speed with the program. After discussing the program further with my colleagues, I wanted to provide some clarification. As you probably already know, TCDCC is affiliated with the California Democratic Party and is subject to their many rules, including endorsing candidates in partisan offices to ensure the Democratic Party speaks with one voice across the state. As a county party we have a vested interest in helping the CDP achieve its objectives to advance Democratic policies and elect Democratic candidates while also ensuring we can build the Democratic bench throughout the state, which can include contributions in key races.”

The California State Senate Democratic Caucus was contacted for further information about this program but has not responded at the time of publication.

When asked about the outsized role of union contributions to his committee, Jeff Tyrell, Chairman of the Mendocino County Democratic Central Committee, acknowledged that not only are “coordinated campaigns” taking place but that it is the exact purpose of central committees.

“I think that the difference of central committees is for this expressed purpose,” Tyrell said. “What central committees are intended to do is to work with the unions.”

The other 3 county committees, Del Norte, Humboldt, and Napa, were contacted for statements but have not responded to California Policy Center’s inquiry.

LEGALITY AND ETHICS

The distribution of millions to campaigns in distant districts, coupled with meager support for local representatives, demonstrates these committees’ prioritization of union interests over constituent concerns. This prompts fundamental questions for voters and reporters alike: To what extent are their local representatives funded by backchannel union sources? And how is the unions’ influence peddling impacting their local community? And while this may be technically legal, is it possible that the Democratic Party is illegally coordinating with the unions and county committees on where the money is going to be spent?

Jay Wierenga, Director of Communications for the Fair Political Practices Commission, stated that generally, “there cannot be coordination between state parties and unions in directing contributions to candidates.” Section 85704 of the California Code prevents unions from earmarking contributions on, “a condition or agreement that all or a portion of the contribution would be used to make a contribution to another specifically identified committee, ballot measure, or candidate.”

With funding sources intentionally obscured through channels like these rural central committees, voters — and reporters — must remain vigilant, delving deep into the union influences shaping their local candidates’ votes and the legislation pushed through the most influential Senate and Assembly committees.

If this financial pipeline was wielding this type of oversized influence on Republican candidates, you can bet the mainstream media reporters would label it “dark money” — evidence of nefarious activity by conservatives or “big business.” But because it is funding Democrats, it is considered par for the course.

 

BREAKDOWN OF THE FIVE DEMOCRATIC CENTRAL COMMITTEES BY COUNTY

Del Norte County

From 2015 to the present, Del Norte’s DCC received total contributions of $1,417,400.78. Fully 92 percent of that ($1,304,825.00) came from government and private-sector unions.

Del Norte’s DCC contributed just $350.56 to its local Assemblymember, Jim Wood, a Democrat who represents the 2nd Assembly District, including parts of Del Norte, Humboldt, Mendocino, Sonoma, and Trinity counties.

By contrast, the committee made political contributions totaling $635,000 to the following current public officials representing districts in places far from Del Norte County:

  • $160,000 to Assemblymember Sharon Quirk-Silva, who represents Assembly District 67 in Los Angeles and Orange counties. Quirk-Silva serves as chair of the Assembly’s Budget Subcommittee No. 5 on State Administration.
  • $110,000 to Assemblymember Al Muratsuchi who represents Assembly District 66 in Los Angeles County and serves as chair of the Assembly’s powerful Education Committee.
  • $90,000 to Assemblymember Cottie Petrie-Norris, who represents Assembly District 73 in Orange County and chairs the Utilities and Energy Committee.
  • $80,000 to James Ramos, who represents Assembly District 45 in San Bernardino County and serves as chair of the Assembly’s Rules Committee.
  • $75,000 to Assemblymember Sabrina Cervantes who represents the 58th Assembly district in Riverside and San Bernardino counties.
  • $50,000 to Assemblymember Rebecca Bauer-Kahan who represents the 16th Assembly District in Alameda and Contra Costa counties. She chairs the Assembly’s Committee on Privacy and Consumer Protection and Select Committee on Reproductive Health.
  • $40,000 to Assemblymember Josh Lowenthal, who represents Assembly District 69 in Los Angeles County. He is chair of the Assembly’s Select Committee on Automation and Workforce Development and the Select Committee on the Digital Frontier and Technological Accounting and Transparency.
  • $30,000 to Assemblymember Reggie Jones-Sawyer, who represents Assembly District 57 in Los Angeles County. Jones-Sawyer is chair of the Assembly’s select committees on the Status of Boys and Men of Color and Reparatory Justice.

Humboldt County 

From 2015 to the present, Humboldt County’s DCC received total contributions of $1,417,174. Fully 88 percent of that ($1,247,810) came from government and private-sector unions.

Humboldt’s DCC contributed just $157.95 to its local Assemblymember, Jim Wood.

By contrast, Humboldt County’s DCC made political contributions totaling $820,000 to the following current public officials representing districts in places far from Humboldt County:

  • $275,000 to Senator Josh Newman, who represents Senate District 29 in Los Angeles, Orange, and San Bernardino counties, and chairs the Senate Education Committee.
  • $235,000 to Senator Melissa Hurtado who represents Senate District 16 in Fresno, Kern, Kings, and Tulare Counties.
  • $170,000 to Senator Susan Talamantes Eggman, who represents Senate District 5 in San Joaquin County and portions of Stanislaus and Sacramento counties. She chairs the Senate Health Committee.
  • $65,000 to Senator Anthony Portantino who represents Senate District 25 in Los Angeles County. Portantino chairs the Senate’s powerful Appropriations Committee.
  • $25,000 to Senator Anna Caballero, who represents Senate District 14 in Merced, Fresno, and Madera counties.
  • $25,000 to Senator Henry Stern, who represents Senate District 27 in Los Angeles and Ventura Counties.
  • $25,000 to Senator Tom Umberg, who represents Senate District 34 in Orange and Los Angeles counties.

Napa County

From 2015 to the present, Napa County’s DCC received total contributions of $1,983,912. Fully 97 percent of that ($1,915,700.00) came from government and private-sector unions.

Napa’s DCC gave just $179.93 to its local Senator, Bill Dodd (a Democrat who represents Senate District 3, including Napa, Contra Costa, Sacramento, Solano, Sonoma, and Yolo counties) and $947 to Majority Leader Cecilia Aguiar-Curry, a Democrat who represents Assembly District 4, including parts of Napa, Colusa, Lake, Sonoma, and Yolo counties.

By contrast, Napa County’s DCC made political contributions totaling $1,213,870 to the following current public officials representing districts in places far from Napa County:

  • $447,000 to Senator Melissa Hurtado, who represents Senate District 16 in Fresno, Kern, Kings, and Tulare Counties.
  • $205,000 to Senator Catherine Blakespear who represents Senate District 38 in Orange and San Diego counties.
  • $186,870 to Senator Dave Min who represents Senate District 37 in Orange County and who chairs the Senate Committee on Natural Resources and Water.
  • $115,000 to Senator Josh Newman who represents Senate District 29 in Los Angeles, Orange, and San Bernardino counties. Newman is chair of the Senate Education Committee.
  • $90,000 to Senator Anthony Portantino, who represents Senate District 25 in Los Angeles County. Portantino chairs the Senate Appropriations Committee.
  • $75,000 to Senator Susan Talamantes Eggman who represents Senate District 5 in San Joaquin County and portions of Stanislaus and Sacramento counties. She chairs the Senate Health Committee.
  • $45,000 to Senator Henry Stern who represents Senate District 27 in Los Angeles and Ventura counties.
  • $25,000 to Senator Anna Caballero, who represents Senate District 14 in Merced, Fresno, and Madera counties. Caballero chairs the Senate Committee on Governmental Organization
  • $25,000 Senator Tom Umberg who represents Senate District 34 in Orange and Los Angeles counties.

Tehama County

From 2015 to the present, Tehama County’s DCC received total contributions of $2,177,844. Fully 97 percent of that ($2,114,310.00) came from government and private-sector unions.

Tehama County’s DCC made political contributions totaling $1,325,000 to the following current public officials representing districts in places far from Tehama:

  • $540,000 to Senator Melissa Hurtado, who represents Senate District 16 in Fresno, Kern, Kings, and Tulare Counties.
  • $240,000 to Senator Josh Newman, who represents Senate District 29 in Los Angeles, Orange, and San Bernardino counties. Newman is chair of the Senate Education Committee.
  • $220,000 to Senator Catherine Blakespear, who represents Senate District 38 in Orange, and San Diego counties.
  • $125,000 to Senator Susan Talamantes Eggman who represents Senate District 5 in San Joaquin County and portions of Stanislaus and Sacramento counties. She chairs the Senate Health Committee.
  • $80,000 to Senator Henry Stern, who represents Senate District 27 in Los Angeles and Ventura Counties.
  • $50,000 to Senate Dave Min who represents Senate District 37 in Orange County and chairs the Senate Committee on Natural Resources and Water.
  • $25,000 to Senator Anna Caballero, who represents Senate District 14 in Merced, Fresno, and Madera counties.
  • $25,000 to Senator Tom Umberg, who represents Senate District 34 in Orange and Los Angeles counties.
  • $20,000 to Senator Anthony Portantino, who represents Senate District 25 in Los Angeles County. Portantino chairs the Senate Appropriations Committee.

Mendocino County

From 2015 to the present, Mendocino County’s DCC received total contributions of $1,508,599. Fully 96 percent of that ($1,443,645) came from government and private-sector unions.

Mendocino’s DCC gave just $66.12 to its local assemblyman, Jim Wood (a Democrat who represents the 2nd Assembly District, including Mendocino, Del Norte, Trinity, Humboldt, Sonoma, and Santa Rosa Counties), and the same paltry amount ($66.12) to its local state senator, Mike McGuire (a Democrat who represents Senate District 2, including Mendocino, Del Norte, Humboldt, Lake, Marin, Sonoma, and Trinity counties).

By contrast, the committee made contributions totaling $490,000 to the following current public officials representing districts far from Mendocino County:

  • $100,000 to Assemblymember Al Muratsuchi, who represents Assembly District 66 in Los Angeles County and chairs the Assembly’s Education Committee.
  • $80,000 to Assemblymember Dawn Addis, who represents Assembly District 30 in Monterey, San Luis Obispo, and Santa Cruz counties.
  • $70,000 to Assemblymember Sabrina Cervantes, who represents the 58th Assembly district in Riverside and San Bernardino counties.
  • $65,000 to Assemblymember Sharon Quirk-Silva who represents Assembly District 67 in Los Angeles and Orange counties. Quirk-Silva serves as chair of the Assembly’s Budget Subcommittee No. 5 on State Administration.
  • $50,000 to Assemblymember Reggie Jones-Sawyer, who represents Assembly District 57 in Los Angeles County. Jones-Sawyer is chair of the Assembly’s committees on the Status of Boys and Men of Color and Reparatory Justice.
  • $50,000 to Assemblymember Pilar Schiavo, who represents Assembly District 40 in Los Angeles County and chairs the Assembly Military and Veterans Affairs Committee.
  • $45,000 to Assemblymember Cottie Petrie-Norris who represents Assembly District 73 in Orange County and chairs the Assembly Utilities and Energy Committee.
  • $30,000 Assemblymember Rebecca Bauer-Kahan who represents the 16th Assembly District in Alameda and Contra Costa counties. She chairs the Assembly’s Committee on Privacy and Consumer Protection and Select Committee on Reproductive Health.

 

Andrew Davenport is a Policy & Research Associate at California Policy Center. CPC President Will Swaim contributed to this report.