Mountain of Cash Fuels Newsom’s Surge to Recall Election End Line

Governor Gavin Newsom’s offer of defense a recall in California has been bolstered in the past few months by a tens of millions of dollars in infusion from major donors that gave him a tremendous financial advantage over his Republican rivals on the final leg of the race.

There had been moments over the summer when Mr. Newsom, a Democrat, had appeared in public polls as vulnerable as California’s unique callback rules seemed to provide an opening for the Conservatives in one of the nation’s most trusted democratic states. But Mr. Newsom raised more than $ 70 million in an account this year to combat the recall, much of it in July and August, which allowed him and his allies to dominate the television network and promote their opponents online .

California has no restrictions on donations to recall committees, and Mr. Newsom has taken full advantage of these loose rules. His contributions included an early $ 3 million from Reed Hastings, the CEO of Netflix; $ 500,000 from liberal philanthropist George Soros; and $ 500,000 from Hollywood producer Jeffrey Katzenberg. Dr. Priscilla Chan, a philanthropist and wife of Facebook founder Mark Zuckerberg, contributed $ 750,000 and real estate tycoon George Marcus gave $ 1 million.

Millions of dollars more came from stakeholders doing business in front of the state, including unions representing service workers, teachers and prison guards, the real estate industry, and Indian tribes who run casinos.

On the Republican side, the financial cavalry never made it.

Mr. Newsom’s aggressive efforts to deter other prominent Democrats from running for office cemented the party’s financial power to protect his post. When dismissed in California, voters ask themselves two questions: first, whether the governor should be removed, and second, who should be the replacement. During the last recall election in 2003, Democrats struggled with the notoriously unwieldy slogan “no recall; yes on Bustamante ”when Arnold Schwarzenegger, a Republican, moved into governorship.

This year, the state’s Democrats and Republicans seem to agree on one thing ahead of Tuesday’s election: Money mattered. All in all, Mr Newsom spent more on fighting the recall than he did on his 2018 election.

“If Gavin couldn’t raise the money, he could have lost in the face of the amount of apathy and fear,” said Kerman Maddox, a Democratic strategist in California who also served as a party donor. “I’ll just be real.”

Dave Gilliard, a Republican strategist who was involved in the recall effort, said of the cash gap, “It definitely made a difference.”

Despite the large sums of money involved in the recall, the total cost of the race is actually less than that of a single election last year, than Uber and Lyft have teamed up to successfully push for rules App-based companies allow drivers and other workers to continue to be classified as independent contractors. This ballot has drawn roughly $ 225 million in spending because of the state’s many large and expensive media markets, including Los Angeles.

Mr Newsom used his financial advantage to overpower his Republican rivals and supporters of the televised recall in July and August by a ratio of almost four to one, giving the $ 20.4 million for the $ 5.6 million, according to data -Dollars of callback advocates from ad tracking company AdImpact. Some of these advertisements framed the race in the crassest of words, with a passage saying that was the result of the recall “it’s about life and death” because of the coronavirus.

On YouTube and Google, the financial inequality was even worse. Newsom has spent nearly $ 4.1 million, according to Google’s disclosure documents, while its leading Republican opponent, radio talk show host Larry Elder, has spent just over $ 600,000.

the sudden appearance of Mr. Elder As the Republican front runner – he entered the competition in July and had raised more than $ 13 million by the end of August – Mr. Newsom supplied a finished Republican slide. A blatant conservative, Mr. Elder had left a number of radio clips outlining unpopular positions with the Democrats on issues such as the environment, abortion, and the minimum wage.

“Lo and behold, he received a gift from the gods on behalf of Larry Elder, the conservative African-American version of Donald Trump,” said Maddox, adding that the specter of an elder-governor had motivated donors large and small alike.

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9/10/2021, 1:05 p.m. ET

It hadn’t always been clear that Mr. Newsom would have such a crucial monetary advantage. Some party contributors were slow to get involved. Ron Conway, a San Francisco-based venture capitalist who made early stage efforts in the tech community to combat product recalls and fundraisers, said he was fired early. “Back then, a lot of people thought I was scare tactics,” he wrote in an email. “They don’t think so anymore!”

State records show that nearly two-thirds of donations of $ 10,000 or more went to Mr. Newsom’s primary account against recalls after July 1. And overall, more than 80 percent of the US $ 10,000 donations came from California.

“Democrats would rather not have to fund an off-year race in California,” said Dan Newman, an advisor to Mr. Newsom. “But they didn’t hesitate when it was clear what was at stake.”

Mr Newsom’s campaign said it was expecting 600,000 donations by the election after running a robust online donation program. Much of the money, however, came from huge donations, with $ 48.2 million in its main account against recalls from donations of $ 100,000 or more.

In late August, attendees at a donor retreat in Aspen, Colorado for Democratic Governors Association contributors said there was some grumbling and anger about the need to redirect all resources to a blue state like California – especially given the tough races in the world of governors are scheduled to take place in 2022.

The Governors Association has so far transferred $ 5.5 million to the Newsom operation against the recall.

“It’s not a good sign for the Democrats in 2022 when they have to burn millions of dollars on a recall in America’s most liberal state,” said Jesse Hunt, communications director for the Republican Governors Association.

From the start, Mr. Newsom’s campaign framed the recall as a Republican seizure of power, making it particularly unattractive for some major GOP contributors to get involved in the race, according to National and California Republicans. The unusual demand by the state that the names of the top donors appear in advertisements was also a deterrent, along with widespread disbelief that California could ever really be turned around.

“There are a lot of people who are for us but never believe it’s possible,” said Anne Hyde Dunsmore, campaign manager for Rescue California, one of the pro-recalls. “No, the money didn’t come in, and no, it wasn’t for lack of demand.”

Some major checks came. Mr. Elder received $ 1 million from Geoffrey Palmer, a real estate developer and major Republic donor. Saul Fox, a private equity manager, donated $ 100,000. And Mr. Elder quickly outstripped the rest of the Republican field in fundraising with donations large and small.

John Cox, the Republican who lost to Mr. Newsom in a 2018 landslide, has again spent millions of his own dollars. One of his costly moves was campaigning with a 1,000 pound Kodiak bear named Tag, Who else appeared in Mr. Cox’s advertisements.

Kevin Faulconer, a Republican former mayor of San Diego, raised more than $ 4 million for his candidacy, and Kevin Kiley, a Republican MP, raised more than $ 1 million.

Caitlyn Jenner, the transgender activist and former Olympian, received a wave of publicity their entry to the race. But their offer and fundraising have largely failed. By the end of August, Ms. Jenner had raised less than $ 1 million and had less than $ 28,000 in cash – with more than unpaid bills.

Gale Kaufman, a Sacramento-based Democratic strategist, said the fragmented and financially weak Republican field had “prevented them from ever launching a ‘yes’ campaign” – for the recall – “met with response.”

“They don’t speak with one voice and they don’t say the same thing,” she said.

Mike Netter, a Republican who was one of the early organizers of the recall, was frustrated by the Democratic attack that the push was a Republican attempt to seize power. He said there was little conservative support after supporters of the recall put the measure on the ballot.

“If we’re supposed to be so Republican, where’s our money? Where is the air cover from our supposedly right-wing secret organizations? ”Mr Netter said, referring to the lack of large donations from the party and leading Republicans such as MP Devin Nunes. “Nobody believed in us for so long. And it’s not that we have that much money. It’s not like the Koch brothers are my cousins ​​or anything. I went to the state of San Diego. “

Shawn Hubler contributed to the coverage.