Garamendi shows how to beat big bucks
`WE only get to vote every four years; Money votes every day," says a T-shirt often worn these days by disaffected voters tired of special interests buying influence over both state and federal governments.
That's often true in a system where most politicians depend on campaign donations to survive.
But big money was stymied, if narrowly, in at least one key California race this month, as state Insurance Commissioner John Garamendi won the Democratic nomination for lieutenant governor by about 6 percent over termed-out state Sen. Jackie Speier of San Mateo County. He overcame a last-month advertising blitz paid for by insurance companies unhappy over a key regulatory change he plans to make later this year.
The change: As called for by the 1988 Proposition 103 insurance reform initiative, Garamendi will eliminate ZIP codes where drivers live as the key factor in their car insurance rates. Instead, drivers' own records will become the most important pricing factor, with their home address then being far less important.
Garamendi clearly knew his planned rule change could throw a monkey wrench into his hopes of becoming lieutenant governor upon being termed out of his present job this year. "No one else has tried to do this, because everyone knows it's a political buzz saw," he said in an interview before the campaign began. "But it's what the law requires, and I'm going to do it anyway."
Garamendi did not make the change in his first term as insurance czar during the early 1990s because he had to spend much of his time in court defending the very existence of Proposition 103, which also rolled back most insurance prices. Later, while insurance industry pet Chuck Quackenbush was commissioner in the mid- and late-1990s, he never even considered a change. That left it up to Garamendi when he resumed the office almost four years ago, and he finally decided to act.
Changing the significance of ZIP codes in insurance pricing risked more than insurance company ire. The very idea infuriates many rural residents, who figure they face far less traffic congestion than city people, thus making their risk of accident and car theft less. Of course, it that's true, their driving and theft claim records should also be cleaner than those of urbanites, thus assuring them low rates even under the new system.
But it wasn't rural drivers who raised millions to attack Garamendi. It was insurance companies,
which put more than $2 million into a series of "issue" ads attacking him.
Garamendi did not fold under the pressure, unlike in 2003, when he first declared he would not run for governor as a recall replacement candidate, then said he would, and finally ran for cover as he pulled out under pressure from fellow Democrats within hours of announcing he would run.
In a classic example of smart politicking this spring, Garamendi turned on his attackers. "Blackmail!" he cried. "There was a threat made to me to back off or else," he said. "A $2 million negative campaign would be released against me if I persisted with the rule change. That is blackmail. That is extortion, and it may very well be an attempt to bribe me."
His outcry won him far more media attention and public note than the ads would ever get. They also fortified his reputation as a straight shooter, which he will need in the fall campaign against another blunt veteran politico, termed-out Republican state Sen. Tom McClintock of Ventura County.
The anti-Garamendi campaign was funded by five insurance companies: Farmers, 21st Century, State Farm, Safeco and Allstate. Their ads began airing in early May primarily in rural counties.
The insurance companies sounded a lot like automakers that automatically oppose any toughening of smog regulations and invariably claim improvements are impossible or at least impossibly expensive. Insurance firms claimed Garamendi's change would be unfair to rural residents. Their real, but unspoken, objection is just like that of the carmakers, namely that they would have to change some of their procedures, and this might cost them a bit of money.
But the primary election results make it clear this is one big-money campaign that failed. In fact, all it apparently did was raise public consciousness of rural rancher Garamendi, who easily beat two prominent state senators from the San Francisco Bay.
Cheap Car
|
