Arnold and Cruz in trouble over campaign funds

January 27, 2004 10:44 AM

The two top officials in California government are being sued for their campaign practices during the recall election.

Governor Schwarzenegger got some bad news this morning when Judge Loren McMaster ruled that the $4.5 million in bank loans his campaign received were illegal. The idea, of course, was to pay those loans back with political contributions from "powerful" (but not "special") interests after the election. Unfortunately for Schwarzenegger, the voters do not approve of this practice -- Proposition 34 prevents campaigns from taking out loans of more than $100,000 to prevent special interests from exerting even more influence over the governor. One of Arnold's attorneys, Colleen McAndrews, focused the blame on the Fair Political Practices Commission (FPPC) for misinterpreting Proposition 34, allowing the campaign to take out the loan.

A couple weeks ago, the FPPC sued Lt. Governor Cruz Bustamante, alleging that he accepted $3.8 million in contributions over the legal limit by funneling money into the bank account of his 2002 re-election committee. State law requires that all money go into a single account.

Isn't it ironic that the California voter revolt against politics as usual led to even more corruption? Maybe, just maybe, there's something wrong with the system itself? Ya think?

California says NO to everything! (11.09.2005)
Propositioning California (11.05.2005)
Schwarzenegger learning from the Greenwald playbook (10.23.2005)

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