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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.

    Posted on Thursday, October 23rd, 2014
    Under: 2014 general, Mike Honda, U.S. House | 4 Comments »

    CA17: Honda blasts firm fined for wage theft

    Rep. Mike Honda talked tough Thursday against a Fremont company that the Labor Department has fined for unfair labor practices – the CEO of which is a donor to and endorser of his Democratic challenger, Ro Khanna.

    Electronics For Imaging paid several employees from India as little as $1.21 an hour to help install computer systems at the company’s Fremont headquarters, federal labor officials said Wednesday.

    Honda, D-San Jose, issued a statement Thursday saying these practices “constitute the most egregious type of wage theft and employee abuse. They undermine fair labor competition among businesses, and if left unaddressed they would erode the idea that this is an economy of opportunity.”

    Honda said the Labor Department “operated within their guidelines to deliver justice” – a $3,500 fine plus payment of more than $40,000 in back wages – but wage laws must be updated to deter such things “especially for a publicly traded, multi-national corporation that generated $197.7 million in revenue in its last quarter.”

    “As soon as Congress comes back into session, I will introduce a commonsense change in our labor laws which will ensure that there a strong, effective minimum penalty in place for offenders, and increase the maximum penalty enough to deter unscrupulous employers from contemplating wage abuses against workers in the United States,” Honda said. “We will send a message that wage abuses are human rights abuses and competitive abuses that will not be tolerated by our economy and society.”

    EFI CEO Guy Gecht contributed $2,600 to Khanna’s campaign in September 2013, and is listed among Khanna’s tech-executive endorsements on the campaign’s website. (UPDATE @ 5:19 P.M.: Khanna’s campaign has just removed Gecht’s name from the endorsement list.)

    “The inexcusable exploitation by Electronics for Imaging goes against everything that Silicon Valley stands for,” Khanna spokesman Tyler Law said Thursday. “Their behavior is not representative of the hardworking and honest people who live and work in the 17th District, and should serve as a reminder of why we need strong labor laws in this country. Ro is encouraged that they have been fined by the Labor Department and is committed to forcefully confronting any company that engages in wage theft.”

    UPDATE @ 5:45 P.M. FRIDAY: The Alameda Labor Council, which staunchly supports Honda, has called upon Khanna to refund Gecht’s money; Khanna has declined.

    Posted on Thursday, October 23rd, 2014
    Under: 2014 general, Mike Honda, U.S. House | 30 Comments »

    CA17: Some of Honda’s wins seem shared at best

    Rep. Mike Honda has been touting his accomplishments on the campaign trail this week, but a few of those accomplishments appear to be his by extension.

    During Monday night’s televised debate between Honda, D-San Jose, and Democratic challenger Ro Khanna, Honda responded to Khanna’s jibes that he’s not bipartisan enough by rattling off a few examples of bills or issues on which he has worked across the aisle.

    DEBATE BETWEEN REP. MIKE HONDA AND CHALLENGER RO KHANNAOne example he cited was H.R. 2061, the digital Accountability and Transparency Act of 2013 by Rep. Darrell Issa, R-Vista. The bill standardizes and publishes the U.S. government’s reports and data compilations on financial management, procurement and aid, with the goal of creating more transparency for taxpayers, improving federal management and reducing costs.

    “Darrell Issa and myself, we passed the DATA bill, the DATA Act, that requires the government agencies to tell people where the dollars are spent, how much it is, and to be transparent about it,” Honda said. “I think that’s across the (aisle) work.”

    And cosponsor it he did, though at the last minute. Honda signed on as the last of 10 cosponsors on Nov. 18, 2013 – six months after it was introduced, and the same day the House overwhelmingly passed it 388-1. Honda and Issa also co-authored an op-ed piece in the Silicon Valley Business Journal praising the bill, but that was this past June, more than a month after President Obama had signed the bill into law.

    When asked specifically what Honda did to help pass the bill, campaign spokesman Vivek Kembaiyan reiterated that Honda had supported the bill, co-authored the op-ed and was “one of 10 co-sponsors who worked to get the bill passed in the House and signed into law.”

    Also, in a mailer appearing in voters’ mailboxes this week, Honda claims he “secured $8.6 billion this year for early childhood education programs across the country, so every child can begin school ready to learn.”

    (Click to enlarge)
    Honda_Track_Proof_2_001

    That’s a reference to the Head Start program, for which funding was included in a big omnibus spending bill passed by the House in December on a 376-5 vote and signed into law in January. Honda wasn’t a cosponsor.

    “No bill is done by one person alone, but Congressman Honda has the influence, experience, and relationships to deliver for his constituents in a way no freshman can,” Kembaiyan said. “Congressman Honda used his position on the specific Appropriations subcommittee that oversees education funding to make sure Head Start received the $600 million increase that is benefiting children throughout the district and the country.”

    Honda is the least-senior of five Democratic minority members on the Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies.

    Khanna’s campaign is giving no quarter on these claims.

    “In a desperate attempt to rewrite his almost nonexistent legislative record, Congressman Honda is taking credit for things he didn’t do,” spokesman Tyler Law said Thursday. “This troubling strategy of misleading voters is yet another reason why the 17th District needs new leadership.”

    UPDATE @ 7:53 P.M.: I was unaware when I posted this item that Calbuzz earlier had posted something similar. We’re all covering the same race, seeing and hearing the same things, and talking to many of the same people; it seems Honda’s assertions are deemed newsworthy far and wide.

    Posted on Thursday, October 9th, 2014
    Under: 2014 general, Mike Honda, U.S. House | 4 Comments »

    CA17: Mike Honda launches first TV ad

    Rep. Mike Honda on Monday launched the first television ad of his 2014 re-election campaign:

    Honda, D-San Jose, ran no television ads before the June primary; his Democratic challenger, Ro Khanna, ran five, significantly depleting the much larger bankroll that Khanna had enjoyed. Now Honda has more money banked, and is starting with a classic incumbent’s ad: Touting his own record while never mentioning his opponent, so as not to give his foe any publicity.

    “This ad reflects a central theme of Congressman Honda’s re-election campaign, emphasizing his record of delivering for his constituents, including $900 million in federal funding for the BART extension to San Jose, which is creating 13,000 jobs,” Honda campaign manager Doug Greven said in a news release. “Ro Khanna had a free pass on the air during the primary election, but we are planning to have ads on television from now until Election Day.”

    Khanna spokesman Tyler Law said “an ad touting the Congressman’s ability to secure earmarks that no longer exist and taking credit for something that happened over a decade ago won’t change the fact that he has only passed one bill to name a post office in fourteen years and has one of the worst attendance records in Congress. That’s the real record that voters will be assessing as they cast their ballots.”

    On that note, Khanna rolled out his third direct-mail piece of the general-election campaign:

    (Click to enlarge…)
    VBM 3 Side 1

    VBM 3 Side 2

    Here’s my story from early August about Khanna’s attack on Honda’s attendance record.

    Posted on Monday, September 29th, 2014
    Under: 2014 general, Mike Honda, U.S. House | 7 Comments »

    CA17: Khanna’s mailers tout record, attack Honda

    Congressional candidate Ro Khanna, seeking to unseat fellow Democrat Rep. Mike Honda in the 17th Congressional District, has sent out his first mailers of the general-election season – one positive, one negative.

    The first mailer outlines Khanna’s record at the U.S. Department of Commerce, his experience teaching economics at Stanford, and his expertise on manufacturing, as well as his media endorsements:

    (Click to enlarge:)
    Khanna positive mailer

    The second mailer highlights what Khanna says is Honda’s poor productivity and attendance:

    Khanna negative mailer

    Khanna spokesman Tyler Law said in a news release that the ads “will outline a clear contrast between Congressman Honda’s history of not showing up and not getting the job done, with Ro Khanna’s record of growing American manufacturing jobs and championing bold policies to move the 17th District forward.”

    “Contrary to the Honda campaign, which falsely attacked Ro’s tenure at Commerce and has relied on its Super PAC to send racially coded mailers, our campaign will continue to highlight only the facts behind Rep. Honda’s record,” Tyler added. “We expect that the more voters learn about his failure to show up and deliver, the more eager they will be to vote for change.”

    But Honda campaign spokesman Vivek Kembaiyan replied later Wednesday that Khanna’s “desperate campaign will do anything to win, from misrepresenting Congressman Honda’s record of delivering for the district – like $900 million for the BART extension that is creating over 10,000 jobs – to embracing right-wing positions, like cutting pensions for middle-income workers, and right-wing supporters who are organizing The Tea Party Express on his behalf.”

    Posted on Wednesday, September 24th, 2014
    Under: 2014 general, Mike Honda, U.S. House | 1 Comment »

    CA17: Honda & Khanna on Tesla’s ‘gigafactory’

    Tuesday brought another terse exchange in the 17th Congressional District race, as Rep. Mike Honda encouraged electric-car maker Tesla Motors to put its next battery factory in California while Democratic challenger Ro Khanna accused Honda of being late to the party.

    Tesla logoPalo Alto-based Tesla builds its cars at the former New United Motor Manufacturing Inc. (NUMMI) plant in Fremont, but recently decided to site its first “gigafactory,” for producing the batteries on which those cars rely, in Nevada. California had offered the company a tax-break package that ultimately wasn’t as large as the $1.25 billion deal Nevada was willing to make.

    Honda, D-San Jose, joined with Reps. Raul Ruiz, D-Palm Desert; Jim Costa, D-Fresno; and 21 other lawmakers in writing a letter last week to Tesla CEO Elon Musk, urging him to consider the Golden State next time.

    “While any state would be thrilled for the opportunity to add thousands of high-tech manufacturing jobs, California has the supply of qualified workers to meet Tesla’s current needs, and the educational infrastructure to support further growth,” they wrote. “Our delegation is dedicated to continuing our thriving relationship with Tesla and supporting its prosperity in every way possible. We look forward to continued discussions at every level of government and hope that you will make California the home of your next Gigafactory.”

    Honda announced this in a news release Tuesday, in which he noted that “as the world capital of innovation, it makes sense that Tesla’s next Gigafactory be in Silicon Valley.

    “Our highly-educated workforce, abundant renewable energy resources, and world class research institutions makes the Bay Area a natural partner to build Tesla’s Gigafactory,” Honda said. “I look forward to working with Tesla, Governor Brown’s Administration, and my colleagues in the California Delegation to bring this game-changing battery facility to Silicon Valley.”

    Too little too late, Khanna said later Tuesday.

    “Congressman Honda is shutting the barn door after the animals are long gone,” he said in a news release. “We needed active leadership when the decision was being made – not after we lost the competition. It’s as if Congressman Honda just woke up and discovered that 6,500 good jobs have left the building.”

    Khanna wrote an op-ed last week suggesting better political leadership might’ve helped California land the Tesla battery plant, though what to offer the company ultimately was up to state lawmakers and the governor, not members of Congress.

    Posted on Tuesday, September 23rd, 2014
    Under: 2014 general, Mike Honda, U.S. House | 1 Comment »

    SD10: Wieckowski & Kuo speak out on Tesla

    Electric-car manufacturer Tesla’s decision to site its first “gigafactory” for battery production in Nevada has brought a wave of disappointment from Californians, including the two candidates hoping to represent the Fremont-based company’s 10th State Senate District.

    Assemblyman Bob Wieckowski, D-Fremont, looked for silver linings:

    Bob Wieckowski“While I am disappointed in Tesla’s apparent decision to locate its battery factory in Nevada, I am proud of California’s partnership with Tesla resulting in significant job growth in Fremont, Santa Clara County and among the automakers’ suppliers. I am hopeful that as the company grows, Tesla may build additional battery facilities or other specialized facilities in California as it scales up manufacturing for current and future products. Our region continues to benefit from the growth of auto research and design investments in the Bay Area and Tesla is an important part of that industry growth locally. With more than 6,000 employees in our state and the new Model X on the way in 2015, Tesla will continue to contribute to California’s position as the green technology leader and highlight our commitment to job creation.”

    But Republican candidate Peter Kuo noted the Legislature couldn’t reach a deal before adjourning last week on a bill to provide further incentives for Tesla to put the plant in California:

    Peter Kuo “Over the past year California, and specifically the Bay Area, has seen tens of thousands of current and future jobs depart for other states. Jobs fleeing California has become common place, this is unacceptable and unsustainable for our economy.

    “While my opponent Bob Wieckowski appears to dismiss the severity of this news, I am concerned about the economy and workers in this district. The type of policies that Bob has led on are a root cause of the exodus of businesses to more business friendly states. Since announcing my candidacy I have often pointed to California’s burdensome business climate that has resulted in an abysmal recovery in the Golden State. Tesla’s latest move hits close to home because many of those jobs could have filled by constituents of the 10th Senate District. I urge the legislature to take this seriously and stop the bleeding.”

    Posted on Thursday, September 4th, 2014
    Under: 2014 general, Bob Wieckowski, California State Senate | 2 Comments »

    CA17: Khanna’s endorsers & Honda’s border visit

    With today’s 17th Congressional District news dominated by the candidates’ agreement on debate terms and Ro Khanna’s rally outside Rep. Mike Honda’s San Jose office, I didn’t have room in the story for Khanna’s latest endorsements and Honda’s run for the border.

    Khanna is touting new endorsements from San Jose City Councilmen Pete Constant and Johnny Khamis; Santa Clara County School Board Trustee Grace Mah; Fremont Unified School Board Member Lily Mei; and former Fremont Vice Mayor and City Councilmember Steve Cho.

    Constant, Khamis and Cho are Republicans, while Mah and Mei are registered without party affiliation.

    “I’m very proud that my grassroots campaign is supported by so many leaders from different backgrounds and across the political spectrum,” Khanna said in a news release. “While my opponent has relied on national and special interest backing, our campaign has worked hard to gain the trust and respect of those who actually live and work in the 17th district. I look forward to taking this inclusive and accessible approach to Congress.”

    Constant said Khanna “has had strong bipartisan support since he launched his campaign, and I’m proud to be part of that. Unfortunately, Mike Honda has never been interested in working across the aisle, which is a stark departure from the long tradition of pragmatic leadership in Silicon Valley. Given Ro’s common sense approach and his unique understanding of economic issues, I’m confident he’ll be an effective representative for our region.”

    Meanwhile, Honda will be part of a bipartisan congressional delegation that tours the U.S.-Mexico border near McAllen, Tex., on Thursday and Friday.

    “The recent surge of unaccompanied children coming across our border brought to the light the need for greater resources and understanding for our immigration and asylum processes,” Honda said in a news release. “This trip will help us learn more about what happens when someone comes to the border, how they are treated, and what both the US and Mexico need to improve the situation.”

    Honda, who serves on the House Appropriations Committee, said such knowledge will help him and his colleagues work with their peers and the White House to “better appropriate funds so they meet the specific needs of those who are working on the US/Mexico Border.”

    Along with Honda, the delegation includes Phil Roe, R-Tenn.; Mark Takano, D-Riverside; Emanuel Cleaver II, D-Mo.; Dina Titus, D-Nev.; Michelle Lujan Grisham, D-N.M. They’ll visit the Hidalgo International Bridge, the McAllen Border Patrol Station, and the Department of Health and Human Services BCFS Harlingen Children’s Facility. They’ll meet with the Mexican Chamber of Deputies, key U.S. border patrol and enforcement officials, and a Mexican government delegation.

    Posted on Wednesday, August 27th, 2014
    Under: 2014 general, Mike Honda, U.S. House | 5 Comments »

    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…
    Read the rest of this entry »

    Posted on Tuesday, July 15th, 2014
    Under: campaign finance, Mike Honda, U.S. House | 10 Comments »

    CA17: Honda and Khanna battle for GOP votes

    With two Democrats having survived the 17th Congressional District’s primary to advance to November’s general election, the battle is on for the district’s Republican hearts and minds.

    Weeks after Jim Cunneen – the last Republican to represent Silicon Valley in Sacramento – endorsed Rep. Mike Honda, D-San Jose, for an eighth term, Republican former Rep. Ernie Konnyu has now cast his lot with Democratic challenger Ro Khanna.

    Ernie Konnyu“I have been in touch with Ro and his staff and look forward to help unite Republican and independent voters who supported me in the western portion of the Congressional district with the thousands of voters already backing Ro Khanna,” Konnyu, 77, of San Jose, said in a statement issued Friday.

    “My aim is to deliver to the House of Representatives a new bi-partisan Congressman from Silicon Valley ready to lead for jobs and greater Silicon Valley successes,” he said. “I trust that Ro will be good for America and great for Silicon Valley.”

    Konnyu was a South Bay Assemblyman from 1980 to 1986, when he was elected to serve what was then the 12th Congressional District. He served only one House term, primaried out in 1988 by a more socially moderate Republican, Tom Campbell.

    Honda finished first in last month’s primary with 48 percent of the vote, and Khanna – a former Obama administration official from Fremont – finished second with 28 percent. Republican Vanila Singh of Fremont got 17 percent and Joel VanLandingham of San Jose got 7 percent, and so they were eliminated.

    Only 19 percent of the district’s voters are Republican while 44 percent are Democrats and 32 percent state no party preference, but that GOP fifth of the electorate could be a crucial bloc if either campaign can mobilize it. While many had assumed Republicans might favor Khanna – generally seen as being a smidgen to the right of the ultra-liberal Honda, or at least, more attuned to the tech sector’s needs – a poll in May found 19 percent of GOP voters favored Honda while 18 percent favored Khanna.

    Singh sent a Fourth-of-July email to her supporters Friday saying that in recent weeks she has been “reaching out to voters, volunteers, and donors to keep this exciting and impressive movement that we have begun in motion! I am humbled by the endless amounts of phone calls I have been receiving both locally and nationally. This proves that we have laid the organizational foundation that will endure for those who share these ideals.”

    “As we celebrate our independence today, I hope you can join me in preserving their vision by continuing to fight for our beloved country,” Singh wrote. “These next couple months are just the beginning of an inspirational movement and it is imperative that we keep a presence at this very pivotal time in our nation. I want you to remember that these campaigns are about the people – make sure your voice is loud this November!”

    The message, however, made no mention of an endorsement.

    Honda and Khanna appear to be equally matched in campaign money to spend from now to November. You can bet that some of that money will be spent wooing the Singh and VanLandingham voters who are now up for grabs.

    Posted on Saturday, July 5th, 2014
    Under: Mike Honda, U.S. House, Uncategorized | 7 Comments »