Silicon Valley candidates spent hundreds of thousands on recount

New campaign finance filings show Assemblymember Evan Low significantly outspent his opponent, former San Jose Mayor Sam Liccardo, on lawyers related to the April recount that solidified both their spots in the November runoff for Congressional District 16.

While both candidates claim to have not been involved in the recount request, they received hundreds of thousands of dollars earmarked for the recount. The candidates’ July quarter financial filings with the Federal Election Commission showed it was spent primarily on lawyers to observe the recount. The recount was paid for by a super PAC called Count the Vote, which formed on April 9 and received money from a pro-Liccardo super PAC.

Filings also show Liccardo has out-fundraised Low by a two-to-one margin. Liccardo has raised $4,338,802 from Nov. 30, 2023 to June 30. Low’s campaign reported raising $2,489,160 from Dec. 4, 2023 to June 30.

But that doesn’t include money that super PACs have spent independently in support of both candidates, according to Larry Gerston, a San Jose State University political science professor emeritus.

“Without a complete understanding of where all the money is and comes from — it’s sort of an incomplete story,” Gerston told San Jose Spotlight. “We often don’t have a better understanding of the money until sometimes after the election. We’re operating in the dark.”

A chunk of those millions were specified for the highly contentious recount between Low and Santa Clara County Supervisor Joe Simitian which occurred in April and knocked Simitian off the ballot .

Over the past three months, Low received $180,312 in donations to support the recount and spent $ 168,365 of it — $ 144,160 of which went to lawyers. Liccardo received $69,300 earmarked for the recount this past quarter and spent $34,042 of it this year — almost entirely on legal services.

Neither campaign directly paid county elections officials for the recount process itself.

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Both candidates have outstanding debts to legal firms employed to observe the recount. Low owes $77,442 to Elias Law Group and Liccardo owes $36,160 to Kaufman Legal Group PC. With the debts factored in, neither candidate has any leftover money earmarked for the recount.

Campaign committees are allowed to receive money earmarked for recount purposes, rather than in the general or primary elections, and can use it for activities related to a recount, such as legal fees, according to FEC spokesperson Miles Martin, who spoke about recount funds broadly. He said any leftover money cannot be transferred to the general election unless in special circumstances, such as when the committee asks donors for a re-designation of  their donations.

“Both sides each had a vested interest in whether the primary count remained a three-way race or became a two-way race. It’s clear — we saw that in the press releases and the statements,” Gerston said. “It would be a joke to think they did not have interest in what was going on or that they weren’t connected. That goes for both sides.”

Liccardo campaign spokesperson Gil Rubinstein said the money was spent primarily to have lawyers observe the recount efforts to maintain its integrity, which he added is standard in this type of recount.

Low’s campaign didn’t respond to requests for comment.

Jonathan Padilla, a longtime supporter and ally of Liccardo, initially requested and put down a deposit for the recount earlier this year — which he claimed was on behalf of Low. Low disavowed Padilla’s claim. A super PAC called Count the Vote formed on April 9 and sent checks to county elections officials covering the recount costs.

A pro-Liccardo super PAC called Neighbors for Results, which former New York City Mayor Michael Bloomberg infused with $500,000 in February , paid $102,000 to Count the Vote between April 12-17. Neighbors for Results spent nearly $458,000 in support of former San Jose Mayor Liccardo between January and March, according to federal elections data. Both political action committees list Matthew Alvarez of Rutan & Tucker LLP as treasurer.

The question of who was behind the decision to request the recount drove a contentious wedge in the local political sphere — and calls for transparency were made by the district’s current congresswoman, Anna Eshoo, as well as the Santa Clara County Democratic Party.

Low at one point unsuccessfully tried to stop the recount after Padilla changed his request for a manual recount to a machine recount. Low’s attorneys sent a letter to the Santa Clara County Registrar of Voters saying it affected the recount request deadline and therefore couldn’t move forward.

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The $2 million fundraising gap between Low and Liccardo seems to put Liccardo in a good position, San Jose State University political science professor Garrick Percival said.

“Liccardo is drawing from a lot of networks he’s built over time as mayor,” Percival told San José Spotlight.

But he agrees the direct fundraising disclosures paint an incomplete picture.

“Of course the big thing will be independent expenditures coming in after Labor Day, when campaigns start to heat up,” Percival said. “Low is well behind but the total amount he’s been able to raise — $2 million for a congressional race — that puts him in place to do a lot of things he wants to do.”

Contact Brandon Pho at brandon@sanjosespotlight.com or @brandonphooo on X, formerly known as Twitter. Contact B. Sakura Cannestra at sakura@sanjosespotlight.com or @SakuCannestra on X, formerly known as Twitter.

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