Arnold reported raising $512,500 in new campaign contributions over the last two weeks leading up to today’s high-priced fundraiser
at his Brentwood mansion. The contributions include a $25,000 gift from
State Farm Mutual Auto Insurance Company that could buy the insurer
entrance to tonight’s soiree, but breaks the company’s long-standing
practice of not giving to politicians.
The company ban on making donations to politicians
was explained last December by a lobbyist in the insurer’s Florida
branch: "The money belongs to the policyholder. They don’t believe it
is appropriate to pick sides…" in campaigns.
Though many State Farm executives and agents have donated to
Schwarzenegger in their personal capacity, this is the first corporate
contribution to a candidate in California by the nation’s largest
insurance company.
State Farm’s contribution went to Schwarzenegger’s California Recovery
Team, a general purpose committee, which "exists to help the Governor
accomplish his ambitious legislative and issue agenda." The committee
is not dedicated to the support of specific ballot measures, and has
been known to pay for Schwarzenegger’s travel and other expenses.
A cocktail reception fundraiser for Schwarzenegger’s committee is
scheduled for this evening at the governor’s Brentwood home. If given
for tonight’s event, State Farm’s $25,000 contribution places it at the
Silver level
and earns a spot on the Recovery Team "Advisory Council," including
four private meetings with Schwarzenegger and "regular conference calls
with the Governor and leading and well-known Californians from the
public and private sectors."
Maybe State Farm was compelled to break its long-standing policy
against donating to politicians because none has ever offered such a
direct trade of campaign cash for political access. $25,000 for a year
of in-person meetings with the governor and insider phone calls sounds
like too good a deal to pass up. But State Farm is spending
policyholder money to buy that access. The insurer should ask the
governor to refund the money, and recommit to its no-contribution
promise.
