By Geoff Lomax
Nepotism: The practice of giving patrons an unfair advantage or preferential treatment
Under the California Political Reform Act it is unlawful for elected officials to use public resources for a campaign activity. A fundamental precept is that the government may not ”take sides” in election contests or bestow an unfair advantage on one of several competing factions. Stanson v. Mott (1976). The reason for restricting activities with respect to ballot measures is that the use of taxpayer dollars distorts the debate and undermines the fairness of the election. Berkeley’s political establishment has disregarded these principles of fairness and neutrality in favor of enabling organizations receiving millions of dollars in city funds to simultaneously finance the FF campaign while censoring alternative viewpoints.
Since 2016, City Council has endorsed a series of ballot measures (O 2018, L 2022, FF 2024) intended to raise over $1 billion for infrastructure programs. However, Council has been deliberate in ensuring that these funds flow to their patron organizations. For example, Measure O restricted funds for housing development to a limited group of “qualified not-for-profit entities.” Predictably, these “qualified” organizations donated tens of thousands of dollars to individual candidates and the Council-sponsored ballot measure. After Measure O passed, these same organizations were recipients of millions of public dollars. Subsequently, when the Council placed Measure L on the ballot, they included the same restriction, and “qualified” organizations donated thousands more.
Financial Shell Game Launches Measure FF
One of the more intriguing examples of Council’s “revolving door” financing involves Walk Bike Berkeley. This “qualified” organization provided the first major cash infusion to the FF campaign, $15,000. However, these funds came through Oakland-based Bike East Bay. Walk Bike Berkeley is identified as an “intermediary” for Bike East Bay. More intriguing is the fact that Bike East Bay reports receiving over $10,000 per year over the past five years from the City of Berkeley (2019, 2020, 2021, 2022, 2023). [Please see comments below as Bike East Bay describes its role as a fiscal agent for funds raised by Walk Bike Berkeley.]
In short, an Oakland organization receiving over $50,000 at City Council’s discretion served as the financial foundation of the Measure FF campaign. If this shell game was not enough, the Measure L committee soon followed suit by transferring $12,000 to the campaign. Thus, from day one, the FF campaign amassed a massive campaign budget from organizations that are direct recipients of millions in Berkeley residents’ tax dollars doled out at City Council’s discretion. Meanwhile back at City Hall, Council requested and received an opinion from the City Attorney that they could participate in the FF campaign, freeing them to use their subsidized mailers and other resources to advocate for the measure.
Weaponizing the Political Reform Act to Censor Alternative Viewpoints
At the time of this writing, FF has a five-to-one financial advantage ($85,000 vs. $17,000) over a complementary measure. Measure, EE, is a modest (by Berkeley standards) grassroots campaign financed by voluntary individual contributions. For example, the EE campaign conducted a yard sale to engage community members and raise funds. It was disclosed to those who donated items and attended the yard sale that proceeds would support the EE campaign. Proceeds from the yard sale were subsequently reported to the Fair Political Practices Commission.
The FF campaign filed a complaint claiming the contributions were not itemized. In other words the campaign did not collect paperwork from persons donating items or purchasing them at the yard sale. In the FF campaign world, receiving $15,000 from a financial intermediary that receives ten of thousands in Berkeley taxpayer dollars (unbeknownst to most residents) annually is business as usual, but the voluntary and consensual contributions of residents at a yard sale must be prosecuted.
The Rise of the Machine and the Demise of Grassroots Democracy
Such political “meddling” is not necessarily new; what is different is the scale and methodological consistency. It's a well-oiled system where the dominant political class receives tens of thousands in donations from their political patrons (many of which are direct recipients of Berkeley tax dollars), makes these funds portable from election to election through the creation of campaign committees, and weaponizes laws intended to support fair elections to silence alternative viewpoints.
This playbook has become so ingrained in Berkeley’s political culture that it has been normalized. Many elected officials, who as aspiring progressive activists decried “big money” in politics and corporations deploying strategic lawsuits against public participation (SLAPP), are now lending their names to a campaign of moral equivalency. It’s a perverse and corrosive system that blurs the lines between public dollars and private interests at an unprecedented scale, further empowers the powerful, and intimidates those who would otherwise engage in the political process.* Welcome to the machine.
* In performing background research for this essay, numerous individuals, who were involved in prior ballot measure campaigns, provided examples of being subject to punitive actions resulting predominantly from bookkeeping errors involving small individual contributions. The resulting administrative burdens as well as fines and diminishment of character cause many to say they would “never again” engage the process.
The city auditor openly advocates for various ballot measures. Truly disgusting.
ReplyDeleteThanks for those insights. Along with other rather dubious features to their campaign, to my mind it undermines their supposed premise . And a Sierra Club endorsement? That says it all.
ReplyDeleteThanks, I had planned on voting 'no' and this affirms my decision. And when I see measures put forth by the obvious machine, I am not swayed to see it 'their' way. We are awash in machine politics and little is grassroots anymore.
DeleteYour work is so helpful & important. I trust your research but seeing the evidence would but be even more powerful to any doubters. This system is infuriating & corrupt and so harmful to this incredible city & community. I hope your work reaches more Berkeley voters and I wish you could share more of your insight on similar issues. I could not unravel the EE/FF mess from my brief look into it. Thank you for all your work & for sharing your perspectives & research.
ReplyDeleteSounds like Bike East Bay is now a political organization and I welcome further action against the COB circular contribution to FF. Last week's deceptive FF mailer covered in firefighters in action was a cloak of fire safety covering the union's endorsement of FF. Brother union supports more spending (seeing FF spends about twice EE) for more Public Works brothers' hours of work
ReplyDeleteVery informative. Could you provide a link to the City Attorney's opinion? Thanks.
ReplyDeleteyou're telling me Walk Bike Berkeley has a vested interest in making is safer to WALK and BIKE in BERKELEY???
ReplyDeleteDo you imagine that they succeed in that?
DeleteI hear that, when progressives order cheese pizza, they are really ordering child pornography.
ReplyDeleteYou don't know what a Fiscal Sponsor is. Walk Bike Berkeley does not get one cent from Bike East Bay.
ReplyDeleteHas it ever crossed your mind that perhaps, just maybe, the groups supporting FF are doing so in good faith? We could use Occam's Razor to deduce that FF probably has such broad support because it simply is the better measure. Or is it more likely that all the labor unions and climate groups and school board directors and democratic clubs and the city auditor and the current and former councilmembers are all colluding just for collusion's sake?
ReplyDeleteLabor unions frequently support tax measures in their own interests, as these funding "sources" to the City (and, conversely, burdens to small business and struggling middle class residents) provide the funding for Union members to benefit from more city construction projects. The measure (FF) with the higher funding potential gets their support, with no consideration that the taxpayer loses. Berkeley needs to do fewer projects, do them more efficiently (e.g. fewer overpriced projects like the recent $10MM North Berkeley Senior Center remodel), and should pay for street repairs from the general fund - not add further taxes on what is already one of the highest tax-burdened cities in the state.
ReplyDeleteHello this is Robert with Bike East Bay. To clarify, Bike East Bay is the fiscal sponsor of Walk Bike Berkeley, which confers our 501(c)3 non-profit allowances and restrictions. Fiscal sponsorship is a fairly common agreement offered by non-profits to local partners, and we have longstanding, similar relationships with more groups like the Albany Strollers and Rollers, Bike Walk Alameda, El Cerrito / Richmond Annex Walk and Roll, and others.
ReplyDeleteThis allows Walk Bike Berkeley to accept tax deductible donations, which go into a restricted fund that is only available to them for use for activities in alignment with their organization's mission. Walk Bike Berkeley has been receiving donations from individuals this way over multiple years, and in 2024 they decided to support the Measure FF campaign with a $15k donation from the amount they had accumulated. That donation was directly from the Walk Bike Berkeley restricted fund to the Measure FF campaign.
The additional funds referenced in this piece from the City of Berkeley to Bike East Bay are related to their sponsorship support for the annual Bike to Work Day celebrations, an event we have been partnering on for 25 years. The sponsorship funding from the City of Berkeley, as well as many other local jurisdictions and other groups, helps to cover Bike East Bay staff time for organizing the 100+ energizer stations that morning, communications and promo for the event, tote bag giveaways and prep, printing and related materials, and all of the other activities involved with organizing the event every year.
That sponsorship funding goes specifically into Bike to Work Day organizing, and is separate from the Walk Bike Berkeley restricted fund.
While our organization has endorsed Measure FF, we appreciate that Measure EE supporters also share most of our same concerns around traffic safety and sustainability. We believe that we can have differing opinions about which measure is best for Berkeley without spreading animosity.
Regardless of which measure wins, both Bike East Bay and Walk Bike Berkeley will be engaged in advocating for and honing the infrastructure projects that are funded by the measure. We each have been involved with various bicycle boulevard projects already underway, and have been effective at working with city staff to hone designs and further enhance safety outcomes.
We hope to be able to collaborate with Measure EE supporters after the election to continue this advocacy, which we will be more effective at if we can work together. Our Bike East Bay staff members are residents of local communities in Oakland, Emeryville, Berkeley, El Cerrito, and Richmond, and we get involved with this work because we care deeply about a healthy and sustainable future for the East Bay.
We are very accessible, so anyone who has questions about our work is welcome to contact us (https://BikeEastBay.org/contact) or come out to any of our free classes or events to meet us in person and learn what we are about. People who want to help shape the direction of the organization and ensure we stay true to our mission statement and work plans is also encouraged to get involved with our board of directors (https://bikeeastbay.org/board-of-directors/).
Thanks for reading, and if you see someone out there with a dozen bells on their bike that's probably me. So feel free to say "hi"!
Robert:
DeleteThank you for your thoughtful comments, and I share your commitment to a positive forward vision. Fun fact, I have supported these efforts by directing my Climate Ride donations to Bike East Bay, so I am a supporter of your important work.
As you may have noted, I characterized the measures as “complimentary” not “competing.” And for the record, I am not enamored with EE’s criticism of cycle tracks, as they are essential infrastructure in certain high-risk riding areas. With that said, I do believe EE represents the best model for how parcel tax funds should be directed to a clear and specific purpose.
You provide a cogent description of how funding sources are utilized based on donation source. The essay did not claim impropriety on the part of specific organizations, and this example was cited as the most recent in a pattern of Council-endorsed ballot measures. My specific concern is the erosion of the boundaries between ballot measures and taxpayer dollars. While not mentioned in this piece, I believe there is also a strong precedence in the act’s implementation that would require the Mayor and City Council to report actual and perceived conflicts of interests in these cases and therefore NOT participate in campaign committees etc.
Honestly, the straw that broke the camel’s back was the FF Campaign’s complaint. I suspect this may have been done without your endorsement, but this dynamic of creating conditions where only deep pocket campaigns can engage elections is anti-democratic and turns and act, intended to shine light on big money in politics, upside-down.
Best
Geoff Lomax
If you really mean what you say here, you should correct the false statement in the article saying that the funds that WBB donated to FF "came from Oakland-based Bike East Bay."
DeleteYour false claim:
One of the more intriguing examples of Council’s “revolving door” financing involves Walk Bike Berkeley. This “qualified” organization provided the first major cash infusion to the FF campaign, $15,000. However, these funds came from Oakland-based Bike East Bay. Walk Bike Berkeley is identified as an “intermediary” for Bike East Bay.
Of course, if you corrected that falsehood, you would also have to stop using the FF campaign as an example of "machine politics in action." I wonder if you can find a real example??
Delete