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CNN Live Saturday

Questions About Gov. Gray Davis' Fund Raising Practices Arise Today

Aired August 30, 2003 - 18:13   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


ANDREA KOPPEL, CNN ANCHOR: Campaign funding is taking center stage in the California recall race. California Governor Gray Davis is being criticized for alleged close door deals with Indian tribes and those are not the only campaign donations coming under fire. Our Miguel Martinez (sic) is in Los Angeles with the very latest.
That's right, we heard, I guess a few weeks ago when this whole thing started, Arnold Schwarzenegger saying, he didn't need anybody else's money. what brought about the change Miguel?

MIGUEL MARQUEZ, CNN CORRESPONDENT: Well certainly, he's taken some money, but he has given his money, about 2 million bucks of it, to his own campaign, but he is taking other donations, which is raised some questions about whether or not he is really as free of special interests as he claims he is.

But you are right, today is certainly money day in the California recall and there's a lot of fire -- most of the fire is coming over the cash that Native Americans and their casinos are contributing to this campaign. Governor Gray Davis has come under fire for proposing that Native American tribes be allowed to put forward candidates to sit on the board that regulates Indian gambling. It's called The Gambling Control Commission out here.

The casinos want things like more slot machines. And the state is in the position to grant them that wish. The governor says, this is standard practice. He's always allowed interested parties to recommend their own candidates for board positions, but it is he that makes the final decision.

(BEGIN VIDEO CLIP)

GRAY DAVIS, GOVERNOR OF CALIFORNIA: Absolutely, absolutely. They are sovereign nations and they are entitled to make recommendations. I will make the final judgement.

(END VIDEO CLIP)

MARQUEZ: Arnold Schwarcenegger doesn't quite see it that way. In a statement Schwarzenegger said quote, "This is yet another example of Davis putting his own political interests ahead of the public interest." unquote.

Cruz Bustamante, the most prominent Democrat running to replace Davis, if he loses the recall, is dealing with his own money issue today. Under California campaign finance law, candidates running for governor are only allowed to raise $21,200 from any 1 source, but Bustamante has been raising, literally, hundreds of thousands of dollars from tribes and depositing money in an account that predates the campaign finance reform law of 2001.

The California of Fair Practice Commission has said that's not exactly proper fundraising, but Bustamante says, he's done nothing wrong.

(BEGIN VIDEO CLIP)

CRUZ BUSTAMANTE, LT. GOV. CALIFORNIA: We are doing everything according to the law. Everything -- we've had our attorneys look at it, we've had the FPPC (ph) look at it, and as far as we're concerned we're complying with every piece of th law. If there was a change, of any kind, we would comply with that, but right now the law is the law and we're following the law.

(END VIDEO CLIP)

MARQUEZ: Is it a loop hole or is it legal, stay tuned. I'm sure this is not the last we hear of the money issue. All the campaigns out there are looking for as much money as possible so that in the final weeks of election, they can saturate the air waves with TV and radio ads out here in California and still have enough dough left over to get the voters out on election day -- Andrea.

KOPPEL: And we're only talking about another 5 weeks. That's just incredible. Is there a ceiling on just about how much any candidate is allowed to raise.

MARQUEZ: Well there's sort of just 2 different questions here. One, on the yes or no on the recall, you can raise as much as you want to raise. So Governor Gray Davis, for instance, has several committees where he can raise unlimited amount of money and unlimited amount of any 1 individual or corporation.

Schwarzenegger has a yes on the recall committee where he can raise unlimited amounts of money, but when you are running for governor, you can only raise $21,200 from any 1 source, so we're waiting to see -- and they can raise as much as they need. It's -- I saw some estimations today that it takes about a million 5 to $2million a week to saturate the t -- the markets with TV ads and radio ads. So you can look to campaigns to start raising that kind of money. So in the last 4, 3 weeks or so, they just start going for it and hitting the air waves -- Andrea.

KOPPEL: Gosh, it's amazing to think, and this is only a recall race for governor, not a presidential campaign. Miguel Marquez, joining us in Los Angeles. Thank you very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




Arise Today>


Aired August 30, 2003 - 18:13   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDREA KOPPEL, CNN ANCHOR: Campaign funding is taking center stage in the California recall race. California Governor Gray Davis is being criticized for alleged close door deals with Indian tribes and those are not the only campaign donations coming under fire. Our Miguel Martinez (sic) is in Los Angeles with the very latest.
That's right, we heard, I guess a few weeks ago when this whole thing started, Arnold Schwarzenegger saying, he didn't need anybody else's money. what brought about the change Miguel?

MIGUEL MARQUEZ, CNN CORRESPONDENT: Well certainly, he's taken some money, but he has given his money, about 2 million bucks of it, to his own campaign, but he is taking other donations, which is raised some questions about whether or not he is really as free of special interests as he claims he is.

But you are right, today is certainly money day in the California recall and there's a lot of fire -- most of the fire is coming over the cash that Native Americans and their casinos are contributing to this campaign. Governor Gray Davis has come under fire for proposing that Native American tribes be allowed to put forward candidates to sit on the board that regulates Indian gambling. It's called The Gambling Control Commission out here.

The casinos want things like more slot machines. And the state is in the position to grant them that wish. The governor says, this is standard practice. He's always allowed interested parties to recommend their own candidates for board positions, but it is he that makes the final decision.

(BEGIN VIDEO CLIP)

GRAY DAVIS, GOVERNOR OF CALIFORNIA: Absolutely, absolutely. They are sovereign nations and they are entitled to make recommendations. I will make the final judgement.

(END VIDEO CLIP)

MARQUEZ: Arnold Schwarcenegger doesn't quite see it that way. In a statement Schwarzenegger said quote, "This is yet another example of Davis putting his own political interests ahead of the public interest." unquote.

Cruz Bustamante, the most prominent Democrat running to replace Davis, if he loses the recall, is dealing with his own money issue today. Under California campaign finance law, candidates running for governor are only allowed to raise $21,200 from any 1 source, but Bustamante has been raising, literally, hundreds of thousands of dollars from tribes and depositing money in an account that predates the campaign finance reform law of 2001.

The California of Fair Practice Commission has said that's not exactly proper fundraising, but Bustamante says, he's done nothing wrong.

(BEGIN VIDEO CLIP)

CRUZ BUSTAMANTE, LT. GOV. CALIFORNIA: We are doing everything according to the law. Everything -- we've had our attorneys look at it, we've had the FPPC (ph) look at it, and as far as we're concerned we're complying with every piece of th law. If there was a change, of any kind, we would comply with that, but right now the law is the law and we're following the law.

(END VIDEO CLIP)

MARQUEZ: Is it a loop hole or is it legal, stay tuned. I'm sure this is not the last we hear of the money issue. All the campaigns out there are looking for as much money as possible so that in the final weeks of election, they can saturate the air waves with TV and radio ads out here in California and still have enough dough left over to get the voters out on election day -- Andrea.

KOPPEL: And we're only talking about another 5 weeks. That's just incredible. Is there a ceiling on just about how much any candidate is allowed to raise.

MARQUEZ: Well there's sort of just 2 different questions here. One, on the yes or no on the recall, you can raise as much as you want to raise. So Governor Gray Davis, for instance, has several committees where he can raise unlimited amount of money and unlimited amount of any 1 individual or corporation.

Schwarzenegger has a yes on the recall committee where he can raise unlimited amounts of money, but when you are running for governor, you can only raise $21,200 from any 1 source, so we're waiting to see -- and they can raise as much as they need. It's -- I saw some estimations today that it takes about a million 5 to $2million a week to saturate the t -- the markets with TV ads and radio ads. So you can look to campaigns to start raising that kind of money. So in the last 4, 3 weeks or so, they just start going for it and hitting the air waves -- Andrea.

KOPPEL: Gosh, it's amazing to think, and this is only a recall race for governor, not a presidential campaign. Miguel Marquez, joining us in Los Angeles. Thank you very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




Arise Today>