Developer PACs outspend residents in Folsom elections. A proposal eyes balance
Development dollars in Folsom politics isn’t new for Tom Aceituno, who said developers have backed candidates and policies aligned with their interests since he arrived in town in the mid 1980s.
“It’s been going on forever,” he said.
One of the first times Aceituno said he noticed developer dollars in Folsom politics was in the late 1980s. Residents questioned developers who funded the city’s general plan update, according to archived Sacramento Bee stories, which reported that the state Fair Political Practices Commission launched an investigation and subpoenaed records on the issue.
At the time, then-City Manager William Kime said without contributions from developers it could have taken upwards of 10 years to update the general plan. The update was slated to cost $500,000, but Folsom could only afford to set aside only $50,000 a year for the plan.
Fast-forward four decades, Folsom is now considering a new charter amendment, proposed by the 2026 Ad Hoc Charter Review Committee, to potentially bring balance between developer-funded political action committees, often called PACs, and Folsom residents.
Developer dollars are still involved in Folsom politics through independent expenditures by PACs, which include not only developers but others such as public safety groups, to support City Council candidates. While Aceituno, a charter committee member and former councilmember, is not opposed to developers spending money on elections, he said, he’s concerned about the balance between Folsom residents and developer interests.
Aceituno’s concerns of imbalance come as independent expenditures are unlimited and individual contributions are capped at $150 by Folsom’s charter. Independent expenditures aren’t capped because of the U.S. Supreme Court’s 2010 ruling in Citizens United v. Federal Election Commission where justices found limits on independent expenditures — the use of dollars to advocate for or against a candidate independent of a campaign — infringes on free speech.
PACs ramp up spending on Folsom elections
Through independent expenditures, PACs spent more than $200,000 on the last Folsom City Council election, according to expenditure reports. That’s up from the nearly $79,000 PACs spent in 2022. Individual contributions to candidates were about $145,000 in 2024 and $48,000 in 2022.
The Committee for Home Ownership, sponsored by North State Building Industry Association, spent the most on independent expenditures at more than $76,000. In recent years, it collected donations from groups like Cresleigh Homes, Taylor Builders and Tri Pointe Homes.
Since name recognition often helps candidates succeed on Election Day, Aceituno said developer-funded independent expenditures — such as campaign mailers supporting candidates aligned with their goals — can indirectly shape City Council decisions.
“The business interests want to develop quickly,” he said. “The residents say, ‘Well, you can develop but let’s get our other things in place as we go along, make sure we get enough schools, make sure we get parks, make sure we get enough access to the freeway.’”
Three of Folsom’s five current councilmembers had more independent expenditure support than their election opponent.
‘Leveling the playing field’
Independent expenditures are separate from individual campaigns, and are not direct donations, so a candidate has no say over what messaging is provided or what groups support their campaigns.
“I was walking and knocking on doors one day, and I walked up and in sticking out of somebody’s mailbox is a picture of me that I’d never seen on a flyer that I’ve never seen,” said Mayor Justin Raithel, who benefited from at least $49,000 in independent expenditure support last election cycle.
While PACs advocated on behalf of Raithel, he said, he supports giving residents more leverage in terms of money spent on elections, which could be possible with the proposed charter amendment that would increase the $150 limit to $750.
The increase could help bridge the gap between individual contribution dollars and independent expenditures, Aceituno said.
“I brought it up as a way of leveling the playing field,” he said.
Folsom last asked voters to increase the limit to $500 in 2018, but it failed by about 400 votes, a little more than 1 percentage point.
“When you talk to people about campaign contribution limits, their natural instinct is to say, ‘Yes, we should have them,’” Aceituno said. “... People don’t understand there is a big difference between an individual candidate’s campaign limit and the fact that PACs are unlimited for independent expenditures.”
Last election cycle mailers funded by independent expenditures were sent out in opposition of City Council candidates Barbara Leary and Hla Elkhatib. Leary, who was active with the Sierra Club and won her race, said the mailers were sent out shortly before the election. She believes the mailers mischaracterized her viewpoints by taking Sierra Club newsletters out of context.
Although Leary’s campaign raised about double her PAC-supported candidate, she didn’t have enough money to share her perspective, and keep up with independent expenditures.
“If you’re a candidate who raised (less than the independent expenditures), you don’t have the resources at the last minute to put together a counter to that message,” Leary said.
Jag Nagendra, a City Council candidate for Folsom’s 3rd District, also said the change could help new candidates.
“Raising to $750 will bring up the financial strength of any new candidate who can probably run against an incumbent,” he said.
Timeline for potential charter change
The City Council’s next meeting is scheduled for Tuesday, where the charter amendment will likely be discussed. At the last meeting, the council debated what the new limit should be. Two other proposed amendments about committee authority and who the city attorney reports to will also be discussed.
If necessary, charter amendments discussions can continue at the June 9 meeting, according to a staff presentation earlier this month. A final public hearing is scheduled for June 23, followed by a final vote July 14 on which, if any, amendments the council will place on the ballot for voter approval.
