Governor’s anti-gaming group raises zero dollars

Tim Molloy

Tuesday, Aug. 3, 2004 | 8:49 a.m.

LOS ANGELES -- Gov. Arnold Schwarzenegger has not received any contributions to his campaign to defeat two gambling initiatives on the November ballot, according to a fund-raising report released Monday.

The report to the Secretary of State's office for the reporting period between January and June showed that the committee to defeat Propositions 68 and 70 had spent $129,954.02 and had no more cash on hand. The committee has taken in only $150,000, all of which was transferred from Schwarzenegger's California Recovery Team, a committee to support the governor's initiatives.

Marty Wilson, the governor's chief political fund-raiser, said Schwarzenegger, busy working on the state budget, hasn't had time to raise money to defeat the propositions.

"He signed the budget on Saturday," Wilson said. "He has not had the opportunity to engage in any kind of in-depth campaign activity to this point."

The lack of contributions puts the governor at a major financial disadvantage in his efforts to defeat Proposition 68 and Proposition 70.

Supporters of the initiatives have raised millions of dollars, including a $10 million donation last month from the San Manuel Band of Mission Indians in support of Proposition 70. Two anti-Proposition 68 committees run by Indian tribes have raised $15 million.

Proposition 68 would allow card clubs and racetracks to operate slot machines, while the tribe-backed Proposition 70 would give tribes unlimited gambling rights.

Schwarzenegger formed his committee shortly before announcing new compacts with five tribes in June. The compacts could be challenged in court if either of the ballot initiatives passes in November.

The compacts, which were approved by the Legislature, were designed to give the state $150 million to $200 million annually in exchange for allowing five tribes to operate additional slot machines beyond the 2,000 limit. The tribes are also making a one-time $1 billion payment to the state this year. All will be paid by bonds sold by the tribes.

The tribes are the Pala Band of Mission Indians, the Rumsey Band of Wintun Indians, the United Auburn Indian Community, the Viejas Band of Kumeyaay Indians and the Pauma Band of Mission Indians.