As Gov. Gavin Newsom wraps up a month of high-stakes decisions about what should become law in California, he鈥檚 also making calls that impact many of the donors who just spent millions of dollars to help him defeat the historic Sept. 14 recall.
Labor unions, real estate moguls, tech titans 鈥� interest groups that lobby at the state Capitol often try to sway elections. That鈥檚 nothing new. But the attempt to remove Newsom presented them with an unusually stark opportunity to try to wield influence: Donors could give the governor for an election held the same week .
鈥淚t turbo-charged something that was already supercharged,鈥� said Jessica Levinson, a professor at Loyola Law School and former president of the Los Angeles Ethics Commission. 鈥淚t is this perfect storm highlighting for us how money works in politics.鈥�
Normally, the job of the most powerful decision-maker in California only comes before voters every four years. Regular elections in November take place after the governor has concluded signing bills for the year 鈥� and the law limits how much money donors can give. But those conventions didn鈥檛 apply to the recall.
鈥淚f you start from donation-land and you drive to decision-land, that road used to be a lot longer. But thanks to the recall it鈥檚 half a block away,鈥� Levinson said.
For some donors, the unusual election was just another way to give to someone they already supported: About 260 donors who contributed to the anti-recall committee also gave Newsom a total of $1 million this year for his 2022 re-election campaign.
Newsom has until Oct. 10 to finish signing the roughly 800 bills lawmakers sent him this year. His spokesperson Erin Mellon said: 鈥淭he governor鈥檚 decisions, always grounded in sound policy and good governance, are made in the best interest of the State of California.鈥�
Here鈥檚 a look at how Newsom鈥檚 decisions this year intersect with some key donors who contributed to the $71 million campaign war chest that helped the governor keep his job.
Hollywood: $3.9 million
The entertainment industry , but legislation never reached the governor鈥檚 desk. This year, show biz executives donated at least $3.9 million to help Newsom fight the recall as their lobbyists scored new industry tax breaks.
That generosity included a $3 million check in May from Netflix founder Reed Hastings, making him Newsom鈥檚 biggest individual donor.
In July, Newsom as part of the state budget that gives an additional $330 million in tax credits to film and television productions. The credits have not yet been awarded, but , scoring $43 million for three productions. The new tax breaks, when he signed them into law, will 鈥渇uel the California Comeback through thousands of good jobs right here in the Golden State.鈥�
The next month, , Hollywood bigwigs hosted a virtual fundraiser to help Newsom fight the recall. Campaign finance records show that in August director Steven Spielberg gave the anti-recall campaign $25,000, Disney Studios executive Alan Horn and his wife gave $50,000, and Jeffrey Katzenberg, the veteran film producer who recently founded a tech company, gave $500,000.
Katzenberg, in a recent , called the effort to oust Newsom a 鈥渘onsensical, idiotic recall鈥� and said governors across the country have faced extraordinary challenges in managing the pandemic. Newsom, he said, has 鈥渁ctually done a decent job, given the circumstances.鈥欌��
鈥淚f you start from donation-land and you drive to decision-land, that road used to be a lot longer. But thanks to the recall it鈥檚 half a block away.鈥�JESSICA LEVINSON, A PROFESSOR AT LOYOLA LAW SCHOOL AND FORMER PRESIDENT OF THE LOS ANGELES ETHICS COMMISSION
Tech: $3.8 million
Relationship status between Newsom and the tech industry? It鈥檚 complicated.
Tech executives who had a history of supporting Democrats, including Newsom, turned heads when they to throw the governor out of office, saying they were fed up with his pandemic management. Their money helped gather enough signatures to and their Silicon Valley fame gave the GOP-led campaign a bipartisan patina.
Tech investor David Sacks 鈥� who gave Newsom nearly $60,000 in 2018 only to spend more than $100,000 trying to oust him this year 鈥� said the recall was worth it even though Newsom won in a landslide.
鈥淚f you look at when Newsom relaxed the lockdowns, it was at every step of the recall process,鈥� . 鈥淎nd he got the education unions to stand down on the issue of school reopenings, I think because he was facing this recall. So鈥� the recall was worth it, just for that.鈥�
Other tech titans helped defend Newsom 鈥� to the tune of at least $3.8 million. That includes $750,000 from Pricilla Chan, wife of Facebook founder Mark Zuckerberg; $400,000 from Laurene Powell Jobs, the widow of Apple founder Steve Jobs; $500,000 from DoorDash executives and their spouses; $100,000 from former Google CEO Eric Schmidt; $100,000 from Airbnb; and $75,000 from Uber and its CEO.
鈥淚f you look at when Newsom relaxed the lockdowns, it was at every step of the recall process.鈥�TECH INVESTOR DAVID SACKS, WHO SUPPORTED NEWSOM IN 2018 BUT GAVE MONEY TO THE RECALL
Newsom doesn鈥檛 have a lot of tech-related legislation to evaluate this year. Most of the and never reached his desk.
But lawmakers did send him a by prohibiting them from marking up the price of food they deliver and requiring them to reveal any service fees to customers. Tech trade associations oppose it, arguing that fee arrangements between restaurants and delivery services should remain confidential. Newsom has yet to weigh in.
He already signed , where workers had complained of skipping bathroom breaks and safety precautions under pressure to meet quick delivery times.
And two years ago, Newsom signed sweeping legislation meant to curb the gig economy by limiting the use of independent contractors 鈥� a move that put him at odds with donors such as Uber and DoorDash.
Indian tribes: $3.8 million
Several native American tribes that run casinos donated a combined $3.8 million to help Newsom fight the recall as they pushed to expand gambling in California. Tribes are behind a proposed ballot initiative that would 鈥� if voters approve and if the governor sanctions it through compacts with individual tribes. The tribes鈥� proposal is one of a few that could be on the ballot next year.
In the Legislature this year, tribes lobbied for bills to expand recognition of Native Americans and change how the state and tribal governments work together on issues related to child welfare, foster children and firefighting.
Newsom on Native American Day last month, including legislation to at the state Capitol where a statue of a missionary was toppled amid protests against racism, replace the Columbus Day holiday in state courts with a 鈥淣ative American Day鈥� and establish recommendations permitting Native American students to wear cultural or spiritual items at high school graduation.
Newsom鈥檚 relationship with Native American tribes predates the recall. During his first year as governor, for 鈥渢he many instances of violence, maltreatment and neglect California inflicted on tribes.鈥� And he established a 鈥淭ruth and Healing Council鈥� to clarify historical records about the relationship between tribes and the state 鈥� efforts his office .
Real estate: $5.3 million
Developers, real estate investors and realtors gave at least $5.3 million to help Newsom fight the recall as their industry pushed legislation to make it easier to build more homes in California.
鈥淲e鈥檙e not building enough housing at all income levels in the state of California,鈥� Newsom said last week as he aimed at boosting development. 鈥淲e recognize that we鈥檝e got to make up for decades and decades of鈥� that neglect.鈥�
It was the second batch of housing bills Newsom has signed since the recall. The first that will allow duplexes in neighborhoods and let cities approve buildings with up to 10 apartments in areas near public transportation. Critics allowing 10-unit apartment buildings dubbed it a 鈥渂irthday present to developers.鈥� Supporters argue that building more homes will help Californians who in the state鈥檚 tight housing markets.
California鈥檚 shortage of affordable homes has been a focus of Newsom鈥檚 since he ran for governor in 2018. He campaigned on a goal to build 3.5 million homes by 2025, but so far has not come close. Newsom said the new laws he signed this year should help spur construction of 40,000 new housing units, plus 44,000 units and treatment beds for homeless individuals.
Of course, not all developers are on Newsom鈥檚 side. Geoff Palmer, who owns a company that has built many Southern California apartment buildings, was one of the biggest donors to the effort to recall Newsom. He gave $200,000 to help qualify the recall for the ballot and more than $1 million to support the candidacy of GOP radio host Larry Elder.
Labor unions: $25.7 million
Labor unions are the elephant in the room when it comes to money Newsom raised to fight the recall. Organized labor donated at least $25.7 million 鈥� or more than one-third of the total the governor raised to keep his job. Unions, of course, have deep ties to the Democratic Party and a stake in nearly every aspect of state government.
One labor leader cited Newsom鈥檚 actions to let child care workers unionize, provide extra sick leave during the pandemic and reverse cuts to in-home caregivers as reasons they put so much money and effort into helping him win.
鈥淪EIU members will fight to protect the significant gains for workers and communities that we secured in partnership with our pro-worker Governor,鈥� April Verrett, who sits on the executive board of SEIU California, said in a statement after the election.
SEIU donated $6.6 million to the anti-recall campaign and deployed thousands of its members to knock on doors and call voters.
Now the union, which represents nursing home workers, is waiting to see if Newsom will sign a package of bills it pushed to strengthen nursing home regulations.
Earlier this year, Newsom signed a , whose union donated $1.8 million to fight the recall. And, amid soaring tax revenues, he signed a . Teachers gave about $2.4 million to defeat the recall.
Construction workers gave nearly $7 million to the anti-recall campaign. , which would have been a boon to construction jobs, but was unable to convince lawmakers to agree.
The governor did not do everything labor unions wanted. He vetoed legislation that would have , triggering a protest in which they 鈥� the posh wine country restaurant where Newsom infamously dined with lobbyists during last year鈥檚 pandemic restrictions.
Newsom did not , despite lobbying by unions to do so, nor provide 鈥渉ero pay鈥� for frontline workers. He vetoed labor-backed legislation to . And despite expanding Medi-Cal health insurance to cover more low-income undocumented immigrants, he has not established a 鈥渟ingle payer鈥� health care system 鈥� something pushed by nurses unions that backed his 2018 election and gave him $1 million to defeat the recall.
CalMatters data reporter Jeremia Kimelman contributed to this story.
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