Dollar-strewn path to White House

Press, 18 May 1984, Page 13

Dollar-strewn path to White House

On the rocky road to the Democratic Presidential nomination — which ends on June 5 with the California primary election — there has been one steady factor: the eagerness of the eight contenders. now reduced to three, to prove themselves ’‘not for sale,” not pliable tools of "special interests” — big oil. big steel, big unions.

Big bucks, however, are still at the heart of the American political system: and in an election year which will witness the most costly Presidential race in United States history, Democrats and Republicans alike are finding new ways around the 1974 post-Watergate campaign finance reform laws that limited political spending and corporate largesse. Walter Mondale, Gary Hart and Jesse Jackson have regrouped in California in their final battle for a chance to take a crack at Ronald Reagan in November. Here, the Democrats' three musketeers will splurge their last Presidential

primary dollars to win the Golden State’s crucial 345 delegates — the largest block in the nation. Here, at the party’s National Convention in San Francisco in July, the victor will be announced. At the “Americans for Hart” headquarters in a rambling villa overlooking Sunset Boulevard, the Colorado senator’s strategists are planning to spend around $1.5 million on a media campaign for this media-minded state. Some 80 per cent of the money will go on 30-second television spots, several featuring Hollywood stars.

On the other side of town, in a high-rise suite in staid Santa Monica. the former Vice-President’s aides are worried. Walter Mondale, the Democratic establishment's favourite, expected an easy run to San Francisco. He overspent in the East and South and now finds himself dangerously close to the federal limit of $24.2 million on primary campaign spending. "Gary Hart will outspend us two to one in California,” said a Mon-

WILLIAM SCOBIE in Los Angeles on the enormous and growing cost of winning a nomination and electing a President.

dale aide. If the victory were to go to Hart on June 5, that could result in a deadlocked convention. Both Mondale and Hart, vying for the “Mr Squeaky-Clean” title, swore last year to reject special interest money from the political action committees (P.A.C.s) which have become a major way to funnel corporate and union funds to candidates. “The time has come,” said Mr Mondale, in his announcement speech, “to declare that the government of the United States is not up for sale.” A fortnight ago, the Hart campaign caught Mondale cheating, accepting P.A.C. money through the subterfuge of 125 so-called "delegate committees" over which, he said, he had no control. Faced with repeated challenges from his rival, Mr Mondale was forced to

give the money back — about $350,000. If money cannot buy the nomination or the White House, certainly neither comes cheap. By the time all the bills are in this year on all sides, a staggering $3lO million will have been spent. Where does the political moneycome from? Where does it go? All three Democratic hopefuls insist that they rely on computerised direct-mail solicitation, small individual contributions, fund-rais-ing banquets, celebrity concerts, and other charity gimmicks that can bring in as much as $500,000 a shot. Above all, there is “soft money.” “This is the term,” explained a Hart aide, “which has come to be used for unlimited millions a big corporation or a wealthy individual

can give to state or national parties. It would be illegal if given directly to a Presidential candidate, but in fact the cash goes to help his campaign.” The Reagan-Bush drive pioneered the use of soft money in the 1980 election, raising up to $l5 million in almost total secrecy. The Carter team discovered the ploy in the last days of the contest. Soft money is spent ostensibly on such activities as voter turnout programmes, registration, absentee ballots, party telephone banks, TV spots that promote the party, not a specific candidate. The Democrats do not intend to be caught napping in 1984. Democratic <ational Committee chairman Michael Steed expects to raise up to $lB million in soft money for the final round against Reagan. “We’re going for corporations and labour people who can write big cheques,” he says. “Some donors think they’ve ‘maxed-out’ (reached the $25,000 limit). We will tell them there is no ‘max out.’ If

you’ve gone to the limit federally, you can switch to non-federal.” How much the Republicans will collect in soft money is not clear. In California alone, says a G.O.P. spokesman, John Meyers, the state party plans an outlay of $lO million on registration drives, absentee ballots, and soft money moves to help the incumbent. The ReaganBush machine has already collected the legal maximum for preconvention spending — $l4 million. To that will be added $lO million in federal matching funds. Although unopposed for the nomination at the Republican convention in Dallas next August, the President will spend the entire $24 million. His political strategists, led by Richard Wirthlin, whose computerised opinion polls detect every tremor in the heart of Middle America, are using the money to lay the groundwork for the real fight, with Mondale or Hart, in the autumn.

Copyright — London Observer Service.