Oakland Tribune: Governor hits trail vs. Dems, gambling

SACRAMENTO -- Gov. Arnold Schwarzenegger today begins a vigorous four-week campaign to oust incumbent Democrats from the Legislature and defeat two propositions that would significantly expand gambling in California.

The Republican governor begins this week with two town hall meetings -- today in Irvine and Thursday in San Jose -- urging voters to oppose Propositions 68 and 70, the former backed by racetracks and card clubs, and the latter heavily funded by some American Indian tribes that operate Las Vegas-style casinos.

The Los Angeles Times reported that Proposition 68 backers plan to meet today to consider suspending their campaign, which is lagging badly in public and private polls despite a multimillion-dollar ad blitz.

A decision to stop pushing Proposition 68 would be a significant victory for Indian tribes, which have been campaigning against it to protect their monopoly on slot machines, and for Schwarzenegger, who also opposes the initiative.

Schwarzenegger is ramping up fund-raising activities, with an average of one event per week planned through Election Day and a goal of raising more than $5 million. And his political team is keeping a close eye on competitive legislative races to determine where his campaigning might inflict the most damage to Democratic candidates.

"(Defeating Democrats) is a significant priority," Schwarzenegger communications director Rob Stutzman said Tuesday.

"He believes his agenda to create jobs and to be fiscally responsible has to do with adding Republicans to the Legislature."

The governor, who about seven days after the Nov. 2 election will travel to Tokyo to market California and promote trade -- a trip to China is likely next year -- also plans to continue campaigning for Proposition 1A, the proposed constitutional amendment that would prevent the state from raiding local property and sales tax dollars to balance its own budget.

Schwarzenegger might also campaign against Proposition 66, which, if approved by voters, would weaken the three-strikes law making individuals convicted of three felonies eligible for a 25-years-to- life prison sentence.

"He's very concerned about Prop. 66," Stutzman said.

But Schwarzenegger's main priority is defeating Propositions 68 and 70.

The passage of either would negate Indian-gaming compacts Schwarzenegger reached with about 10 tribes earlier this year, with Proposition 68 allowing gambling to expand into urban card clubs and horse racing tracks and Proposition 70 lifting limits on the number of slot machines and types of games offered at Indian casinos.

The administration estimates the compacts signed so far to be worth about $240 million in annual revenue to the state, plus a $1 billion one-time payment that has been earmarked for transportation. But proponents of Propositions 68 and 70 say their measures are a better deal for California.

"The best thing about Proposition 70 is its simplicity," spokesman Jamie Fisfis said. "It applies the state corporate income tax to the Indian gaming industry. Once voters understand that, it's pretty hard to shake them from supporting it, even if someone as popular as the governor says he can get a better deal."

Democrats, defending a number of legislative seats in November, also doubt Schwarzenegger's popularity will translate into victory at the polls.

Among the incumbents targeted by Republicans are Bakersfield Assemblywoman Nicole Parra, Montclair Assemblywoman Gloria Negrete McLeod and Stockton state Sen. Michael Machado.

The open Democratic seats high on the GOP takeover list include one Assembly seat encompassing Long Beach and the Palos Verdes peninsula and another comprising parts of San Mateo and Santa Clara counties.