10

CA17: Khanna tops Honda again in fundraising

Democratic congressional candidate Ro Khanna significantly outraised incumbent Rep. Mike Honda in 2015’s final quarter, and now has about three times as much money banked for their electoral rematch this year, according to initial reports from both campaigns.

Both Democrats want to represent the 17th Congressional District, which lies in the heart of Silicon Valley and is the first district outside Hawaii in which Asian-Americans make up a majority of voters. Khanna, a Fremont resident who served for two years in President Barack Obama’s Commerce Department, lost 2014’s bruising, nationally watched election by 3.6 percentage points as Honda held on for an eighth term.

Ro KhannaKhanna’s campaign said Wednesday that he raised more than $500,000 and spent about $117,000 from Oct. 1 through Dec. 31, leaving him with more than $1.7 million cash on hand and about $52,800 in outstanding debt.

“I am proud to see support for our campaign to strengthen the middle class create this type of enthusiasm and energy,” Khanna said in a news release. “Because we refuse to take PAC and lobbyist money, we’re going to need our grassroots support to take on the special interests and bring change to Washington. As we grow our campaign in 2016, we will continue to fund a grassroots campaign that engages and empowers the people of the 17th District.”

Khanna spent big on television ads and campaign consultants in 2014’s primary, leaving his campaign almost broke in the final weeks before that November’s general election; a super PAC called Californians for Innovation independently spent about $776,000 on his behalf to help bear him over the finish line.

Honda’s campaign said Wednesday that he raised $290,250 and spent $276,137 – a much higher burn rate than Khanna’s – in 2015’s fourth quarter, leaving him with $571,266 cash on hand and $20,907 in outstanding debt.

honda.jpgThe congressman “has raised more money at this point in the campaign cycle than in 2014, and like last time, the campaign is on track to raise the resources necessary to win this race,” campaign manager Michael Beckendorf said. “Even without the luxury of conservative millionaires and billionaires bankrolling his campaign, Mike Honda will win this race because he is the only candidate who has a track record of reaching across the aisle to deliver for Silicon Valley while standing up for justice and equality.”

But it’s not just re-election for which Honda is raising money. His campaign in the first three quarters of last year paid out a total of about $109,000 to two Washington, D.C., law firms and a San Francisco crisis-communications shop to combat the ongoing ethics investigation of which he’s a target. The House Ethics Committee is still probing whether Honda’s office and campaign broke House rules or federal laws by sharing resources, and it’s not yet known how much he paid his lawyers and spokespeople in the year’s final quarter.

Neither candidate’s full report to the Federal Election Commission is available yet; the filing deadline is Jan. 31. Khanna outraised Honda in 2015’s third, second and first quarters, too.

3

Will the rich buy California’s 2016 Senate race?

Campaign finance reform is needed to keep California’s 2016 U.S. Senate race from being bought by a small number of deep-pocketed donors, a consumer advocacy group said Wednesday.

The California Public Interest Research Group (CALPIRG) is pushing for a federal program that would match small contributions with limited public funds, so that grassroots candidates relying on small donors can compete with big-money candidates.

“California is no exception to the rule of big donor domination of politics,” CALPIRG campaign organizer Zach Weinstein said in a news release. “Any candidate who wants to run a viable campaign for Senate in 2016 will need to raise millions and millions of dollars to do so, and our current system makes that level of fundraising nearly impossible if you rely on small donors. Unless you’re connected to a network of big donors, you’re out of the running before you even start. The reforms we’re proposing could fundamentally change that system.”

U.S. Sen. Barbara Boxer, D-Calif., announced last week that she won’t seek a fifth six-year term in 2016. California Attorney General Kamala Harris declared her candidacy Tuesday, and although Lt. Gov. Gavin Newsom has opted out, several other well-known names are considering whether to run.

Candidates in California’s last four Senate elections raised an average of $8.76 million, according to a memo issued Wednesday by CALPIRG; the highest amount, $23.17 million, was raised by Boxer for her 2010 re-election battle against Republican Carly Fiorina, who raised $11.63 million.

Current rules say individual donors can give up to $2,600 to a candidate for a primary election and another $2,600 for the general election for a total of $5,200 per campaign cycle; the Federal Election Commission will to revise this limit upward in the next few weeks after receiving new Consumer Price Index figures from the Labor Department.

But based on the current limit, a Senate candidate would have to raise more than $13,000 from individuals every day from now until Election Day in order to hit the average $8.76 million mark, CALPIRG notes. For a candidate relying on donors who “max out,” that’s five donors per day; for a candidate relying on small donors giving an average of $150, that’s 88 donors per day.

“When campaigns are paid for by big donors, those are the voices candidates hear the loudest,” Weinstein said. “In a democracy based on the principle of one person, one vote, small donors should be at the center of campaign finance – not an afterthought.”

3

CA17: FEC reports reveal final spending frenzy

New Federal Election Commission reports shed new light on the frenzy of spending that occurred in the final weeks of the 17th Congressional District showdown between Rep. Mike Honda and Democratic challenger Ro Khanna, which Khanna lost by 3.6 percentage points.

Perhaps most illuminating is the report filed by Californians for Innovation, a super PAC formed by Khanna backers to raise and spend money independently in support of his campaign.

Californians for Innovation reported raising $310,000 and spending $484,692 from Oct. 16 through Nov. 24, leaving $14,930 cash on hand and no debt at the end of that time. In all, the super PAC raised $790,000 and spent $805,070 this year to support Khanna.

Notable donations during the final weeks included another $100,000 from Texas energy hedge fund billionaire John Arnold, bringing his and his wife’s total contributions to $350,000 – far and away the super PAC’s biggest benefactors.

The next-biggest contribution after mid-October was $70,000 from billionaire venture capitalist Vinod Khosla of Portola Valley. Other notable contributions included $25,000 from Ashok Krishnamurthi, vice chairman and co-founder of San Jose’s Xsigo Systems; and $25,000 from Anil Godhwani, CEO and co-founder at Milpitas’ Habitera Inc. (bringing Godhwani’s total contributions to $45,000).

And another $15,000 came in from San Francisco-based OO Investment LLC, bringing that shadowy entity’s total ante to $40,000. Corporate records reveal nothing about OO Investment’s partners or activities, and the lawyer designated as its agent has not answered repeated queries.

The super PAC’s money paid for radio ads and mailers on Khanna’s behalf as his own campaign – once far more well-funded than Honda’s – ran dry in the contest’s final weeks.

Khanna’s campaign raised $172,368 and spent $314,598 from Oct. 16 through Nov. 24, leaving $5,134 cash on hand but $114,415 in debts at the end of that period. Over the entire course of the campaign, Khanna raised $4,597,033 and spent $4,460,621.

Honda’s campaign raised $317,663 and spent $710,226 from Oct. 16 through Nov. 24, leaving $27,732 cash on hand and no debt at the end of that period. Over the entire course of the campaign, Honda raised $3,244,647 and spent $3,202,356.

4

CA17: Honda spends big while Khanna runs dry

That dull thud you heard echoing across the 17th Congressional District recently was the sound of Rep. Mike Honda’s campaign dropping a massive $651,000 in October’s first half, according to a report filed Thursday with the Federal Election Commission.

Ro Khanna, Honda’s Democratic challenger, spent only about $168,000 during the same time, his report shows – and his campaign is now on the financial ropes.

Recent polls have shown a close race between the seven-term incumbent Honda, D-San Jose, and Khanna, and each have tried to maximize their impact since vote-by-mail ballots went out Oct. 6.

Honda’s report shows his campaign – which started the month with about $1 million in the bank – raised another $106,000 from Oct. 1 to Oct. 15, leaving him about $420,000 cash on hand but just short of $10,000 in debt at the close of that period.

The lion’s share of the spending went to the Washington, D.C. media and strategic communications firm of Adelstein Liston: $370,960 for a digital media buy and another $66,926 for “media services.” Next came the San Francisco-based Terris, Barnes & Walters campaign firm: $107,348 for direct mail, and $25,000 for campaign consulting.

Khanna – who started this race with far more money but spent most of it before June’s primary, in which he finished 20 points behind Honda – had about $218,000 cash on hand at the start of this month but about $141,000 in debt.

His new report shows he raised about $97,000 but spent about $168,000 from Oct. 1 to Oct. 15, leaving him with $148,000 cash on hand but $141,000 in debt – so, about $7,000 in unencumbered money.

Most of Khanna’s October spending – almost $111,000 – went to Chicago-based AKPD Message & Media (run by Obama campaign paid-media mogul Larry Grisolano) for direct mail.

I don’t yet see a pre-general report for Californians for Innovation, the independent super PAC formed this summer to support Khanna’s campaign and bankrolled in large part ($250,000 that we know so far) by Texas energy hedge fund billionaire John Arnold. When I do, I’ll update this post accordingly.

UPDATE @ 10:20 A.M. FRIDAY: (Sorry this is late, but I made an executive decision to take last night off.) Californians for Innovation’s report shows it raised $90,000 and spent $233,000 in the first half of October, leaving it with about $175,000 cash on hand and $30,000 in debt as of Oct. 15. Other FEC filings show it has spent about $58,000 more since mid-month.

Its contributors in the month’s first half were:

  • Arthur Patterson of Accel Partners (Palo Alto) – $10,000
  • Venkatesh Harinarayan of Cambrian Ventures (Mountain View) – $25,000
  • Anand Rajaraman of Cambiran Ventures (Mountain View) – $25,000
  • Rajeev Madhavan of Magma Design Automation (San Jose) – $5,000
  • OO Investment LLC (San Francisco) – $25,000
  • I initially can’t find much about OO Investment, but I’ll pursue it.

    Most of the spending – about $214,000 – went to Mailrite Print & Mail Inc. of Sacramento for direct mail. The $30,000 debt is owed to veteran Democratic political consultant Roger Salazar of Sacramento, for campaign consulting services.

    2

    CA17: FEC reports show Ro Khanna running low

    Rep. Mike Honda still had almost $1 million banked for his re-election campaign at the end of September, while Democratic challenger Ro Khanna was almost out of money, new Federal Election Commission reports show.

    Honda, D-San Jose, reported raising $412,167.16 and spending $450,861.74 in this year’s third quarter, and had $964,638.14 cash on hand as of Sept. 30 with no outstanding debt.

    Khanna, a former Obama administration official from Fremont, reported raising $323,291.72 and spending $972,139.27; he had $218,106.35 cash on hand as of Sept. 30, but with $140,980.31 in outstanding debt.

    This is a tremendous turnaround from the campaign’s early days. Khanna had entered this race with a huge bankroll because he’d raised a record-setting $1.2 million in the final quarter of 2011, when people thought he would run to succeed Rep. Pete Stark in the 15th District. When Stark didn’t retire, Khanna pivoted instead to this 17th District race, and outraised Honda for the rest of 2013.

    But Honda has outraised Khanna in the first three quarters of 2014, while Khanna spent most of his campaign’s fortune before the primary – in which he finished 20 points behind Honda.

    Honda’s campaign said the new report shows Khanna’s campaign lacks enough money to meet its payroll and rent.

    “With less than 20 days to go until Election Day, Ro Khanna is 15 points down and in the position of deciding whether to spend his little remaining cash on his large staff or on continued attacks on Congressman Honda,” Honda campaign manager Doug Greven said in a news release Thursday. “Our campaign has nearly $1 million in cash, $900,000 more than Khanna, and we are just now starting to spend the majority of our resources when voters are paying the most attention to the election.”

    Honda’s internal poll showed him 15 points ahead; Khanna’s poll showed a dead heat, and spokesman Tyler Law said that’s helping raise new money.

    “The fact that the race is now a dead heat is also helping our final push to Election Day, both in terms of grassroots enthusiasm and financing,” Law said Thursday morning. “In fact, in the three days since we released our poll, we’ve raised nearly $55,000. We expect that kind of support will continue in the final weeks of this race.

    Law noted 70 percent of Khanna’s third-quarter contributions came from Northern California, while only 41 percent of Honda’s did.

    “With recent polls confirming this race is wide-open and the momentum is on our side, it’s clear that our early investments in an aggressive mail program and focus on building a state-of-the-art grassroots organization are paying dividends,” Law added. “As we’ve said all along, our team will have the resources needed to win in November. Just as importantly, we did it without taking a single dollar from PACs or lobbyists and have raised the vast majority from right here in the Bay Area — a stark contrast from our special-interest and Washington-funded opponent.”

    But Khanna is getting external help. Californians for Innovation – a Super PAC formed in August by Khanna supporter Ash Chopra of Menlo Park, a financial advisor with Merrill Lynch – has reported spending $211,036.36 on the race this month forvoter data, mailers and postage.

    Honda launched his first TV ad of the year on Sept. 29, and has had some help from the California Democratic Party to keep it on the air. Khanna, who aired a few ads before the primary, seems to be concentrating more on direct mail for his general-election advertising push.

    UPDATE @ 4:58 P.M.: Click here to read the more complete story, including who’s bankrolling the pro-Khanna Super PAC.

    10

    CA17: Mike Honda outraises Ro Khanna again

    Rep. Mike Honda significantly outraised his Democratic challenger, Ro Khanna, in the year’s second quarter and has considerably more money with which to start their general-election showdown, according to Federal Election Commission reports provided by the candidates Tuesday.

    Honda, D-San Jose, finished first in the June 3 primary election with 48.2 percent of the vote, while Khanna – a former Obama administration official from Fremont – finished second with 28 percent. Two Republican candidates, Vanila Singh and Joel VanLandingham, finished further back and so were eliminated.

    honda.jpgA report provided by Honda’s campaign Tuesday, combined with the one filed in mid-May, show he raised $522,086.37 while spending $542,605.07 from April 1 through June 30. This left him with $1,063,355.97 cash on hand as of June 30, but he also had $7,176.83 in debts, so his unencumbered cash was $1,056,179.14.

    “Following the decisive 20-point win in the primary last month, the Honda campaign continues its strong fundraising leading up to the November election,” campaign manager Doug Greven said in a news release. “Mike Honda’s network of grassroots supporters – more than 7,000 of whom have given to the campaign so far – continues to grow.”

    “We are going to keep this fundraising pace going and will have the resources to win in November while our debt-ridden challenger has some serious catching up to do,” Greven said.

    Ro KhannaKhanna’s report filed Tuesday, plus the one he filed in mid-May, show he raised $337,673.26 in the second quarter while spending a tremendous $1,461,930.52 – which accounts for almost half of his total spending since the campaign began. This left him with $867,672.16 cash on hand as of June 30, but he also had $239,131.92 in debts, so his unencumbered cash was $628,540.24.

    “There are only two numbers that matter in this reporting period: 50 and 202,” Khanna campaign manager Leah Cowan insisted in a news release. “That’s because a majority of Ro’s donations were under $50, while Rep. Honda doubled down on his 202 area code fundraising amongst Washington special interests. Understandably, the Honda campaign is eager to change the story after burning well over a million dollars and relying on desperate false attacks just to lose a majority of the vote. It’s become clearer than ever that voters will be supporting change in November, just as they did in the primary.”

    That said, Honda begins the general-election race with a 20-point primary win, a big edge in money, the name recognition of seven terms in office, and the bully pulpit of incumbency. Khanna aired several television ads before the primary; Honda has yet to go on the air.

    Read more, after the jump…
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