
DATE: Tuesday, September 30, 1997           TAG: 9709300233

SECTION: FRONT                   PAGE: A1   EDITION: FINAL 

SOURCE: BY TONI WHITT, STAFF WRITER 

                                            LENGTH:  148 lines

RACE MAY BE STATE'S MOST EXPENSIVE: VIRGINIA GOVERNOR'S CAMPAIGN THE WAR CHESTS OF BEYER AND GILMORE ARE BEING FILLED BY LARGE DONATIONS, WITHOUT THE LIMITS PLACED BY MANY STATES

With more than a month of campaigning and television ads to go before Election Day, the Virginia governor's race is shaping up to be the most expensive in the state's history.

The unprecedented fund-raising pace has been fueled by large donations that would be prohibited in most other states and in federal campaigns.

Virginia does not restrict who can contribute to a campaign or how much an individual, a political action committee or a company can give. Both gubernatorial candidates are reaping the benefits.

Democrat Donald S. Beyer Jr. and Republican James S. Gilmore III had raised almost as much by Sept. 1 as the 1993 candidates did during their entire campaigns.

Four years ago, in a hot contest between George F. Allen and former Attorney General Mary Sue Terry, Terry raised $6.5 million to Allen's $5.7 million.

This year, Beyer raised $5.17 million by the end of August, while Gilmore pulled in $5.12 million.

Traditionally, the tempo of contributions quickens at the end of a race. Allen raised more than 20 percent of his money in the final week of the campaign.

As money pours into Virginia politics in ever larger chunks, the trend raises questions about what return people expect for their investment.

Virginia is one of just six states - and the only one in the South - that don't restrict contributions. In federal races, individuals can give a maximum of $1,000 and political action committees are limited to $5,000.

This helps to drive up the cost of campaigns and potentially leaves the majority of citizens without the political influence that the big contributors have, say citizens and political experts.

The next campaign reporting period, which includes fund-raisers featuring Newt Gingrich and Al Gore, promises to push totals far above any other state campaign. In early October, Senate Majority Leader Trent Lott will appear at a birthday party/fund-raiser for Gilmore. (Tickets start at $250 per person.)

Gilmore and Beyer have received contributions many times larger than they could have gotten as candidates for the Senate, Congress or presidency. J. Douglas Perry, CEO of Dollar Tree Stores, gave Gilmore $78,000. Leonard Strelitz, CEO of Haynes Furniture, gave Beyer $25,000.

Laws governing gifts to campaigns vary from state to state. In North Carolina, donations are limited to $4,000 per election cycle, and candidates are prohibited from taking money from corporations and unions. Five other states in addition to Virginia have no restrictions on who can give or how much they can give.

Both candidates blame the cost of running political ads on television for driving the price of elections higher and higher.

Mark Miner, Gilmore's spokesman, said his campaign needs large donations, such as the $50,000 contribution from religious broadcaster Pat Robertson, because of Beyer's personal wealth.

``In our situation, we're running against an opponent that can write a check for $1 million,'' Miner said. ``Jim Gilmore has to go out and raise money so he can get on TV.''

Lenox Baker, a cardiac surgeon from Norfolk, said he felt compelled to donate $25,000 to Beyer to help offset contributions to Gilmore's campaign from large companies such as Philip Morris and Smithfield Foods. (Beyer announced during the summer that he won't accept contributions from tobacco companies, although the campaign did receive $10,000 from Philip Morris last year.)

``In order for there to be a level playing field, others have to donate on behalf of the people who need to be served, but can't afford to donate,'' Baker said. ``There's no doubt the Republican candidate has an advantage in these things.''

Historically, campaign coffers grow with each election cycle, but neither Beyer nor Gilmore believes Virginia needs to set contribution limits.

``No limits has been the way in Virginia - in all of the campaigns - and the system has worked pretty well,'' said Page Boinest, a spokeswoman for Beyer.

She said there's never been a suggestion that the big contributors have tried to influence winners.

But nationally there have been scandals about White House sleep-overs and possible influence-peddling by foreign officials.

Last spring, the Virginia Democratic Party returned $100,000 in contributions it received in 1995 from Roger Tamraz, an oil financier accused of buying high-level White House access. Tamraz has been brazen about his attempts to buy access. He said this month that he would give even more money to the Democratic National Party if it would buy him more time with the president.

Baker said most donations are aimed at influencing candidates. He advocated caps on campaign spending, which he said has ``become a bottomless pit.''

``It buys you access, there's no question about it, and that's what's scary,'' Baker said. ``I'm giving because I'm pro-choice and concerned about education, and Beyer represents my views.''

The more money a contributor gives, the more personal interest that person has in making sure his agenda is taken care of, said Larry Makinson, deputy director of the Center for Responsive Politics in Washington, an organization that lobbies for campaign finance reform.

``After this campaign is over there will be a small group of people to whom the new governor will be very grateful, and they'll be watching what he does,'' Makinson said. ``And that's exactly what the media and the people of the state should be watching also.''

This race has also attracted big donations from national organizations, especially party organizations that want to influence the outcome of November's race. Party leaders believe that Virginia is a political bellwether - that whichever party wins the governor's seat will likely take more such elections, especially throughout the South.

Allen's win ``was a precursor to the success we had in other states in governors' races and at the congressional level,'' said Iowa Gov. Terry Branstad, president of the Republican Governors Association. ``Before Allen won, we only had 16 or 17 Republican governors and now we're up to 32.''

The Republican National Committee gave Gilmore $410,000.

Vermont Gov. Howard Dean, president of the Democratic Governors Association, said the Democratic Party ``can't be a national party without the South.''

``We need strong Southern support, and Virginia is a lead state,'' said Dean, whose group contributed $35,000 to Beyer.

Makinson said that kind of national money is what helps make Virginia a bellwether.

``The biggest factor in campaign spending is competition,'' Makinson said. ``In races without a lot of competition very little money is spent. In Virginia there are no second terms for governors so it's always guaranteed that it's going to be competitive. The fact that there are no limits is also a reason that spending will just keep getting bigger.'' MEMO: ONLINE DATABASE

The full database of campaign contributions for statewide races is

available on Virginia Voter Net on Pilot Online. Reports for legislative

races will be added soon. Click to the News page at

http://www.pilotonline.com ILLUSTRATION: Color photos

Donald S. Beyer Jr.

James S. Gilmore III

Graphic

In 1993

For the entire 1993 campaign, George F. Allen raised $5.7 million

and Mary Sue Terry, Terry raised $6.5 million.

More to come in '97

Traditionally, the tempo of contributions quickens at the end of