Gregg out-raises Pence during 6-month period

Democrat John Gregg raised more campaign cash than Gov. Mike Pence during the first half of the year — a surprising development given Indiana's Republican leanings and the inherent fundraising advantages of sitting governors.

But Gregg's fundraising coup was heavily dependent on a handful of $100,000 to $200,000 donations from regional and national labor unions. And Pence still has more than twice as much money as Gregg in his campaign coffers.

Overall, Gregg raised $1.76 million through June 30, about $125,000 more than Pence's $1.63 million haul.

Although that difference is not significant, Gregg's ability to out-raise Pence should be a concern for the governor, said Laura Albright, a political science professor at the University of Indianapolis.

"It's rare for a challenger to raise more money than an incumbent, especially a Democratic challenger in a primarily Republican state," she said. "I think it speaks to donors' concerns about some of the issues from the past legislative session."

That session was marked with controversy as Pence and his colleagues in the Republican-dominated General Assembly pushed a decidedly conservative agenda. Their efforts included a high-profile power struggle with Democratic state schools chief Glenda Ritz, a repeal of the state's wage-setting law for public construction projects and a religious freedom measure that set off a national firestorm.

"These figures show, once again, that Hoosiers are tired of being embarrassed by Mike Pence," Gregg said. "They want a leader. They want a governor who will bring us together to move Indiana forward."

Still, Pence's fundraising brought the total amount in his campaign war chest to $4.23 million — significantly more than Gregg's $1.84 million. And without a primary challenger, Pence isn't likely to burn through that money as fast as Gregg, who must contend with two opponents in the Democratic primary — Ritz and state Sen. Karen Tallian.

"We absolutely love where we are from a fundraising perspective," said Robert Vane, a spokesman for the Pence campaign, "especially in terms of our over 2-1 advantage in cash on hand and the fact that over 90 percent of our donors come from Indiana. We believe this is a record-breaking cash-on-hand amount for a sitting governor at this point in his first term."

It's not clear yet whether the other two Democrats in the race will be able to raise enough money to run formidable campaigns. Tallian reported less than $25,000 in contributions, and that included a $20,000 transfer from her state Senate campaign.

The Ritz campaign did not respond to messages from The Star seeking information about her fundraising figures. Candidates have until Wednesday to file their midyear reports.

One thing, however, is clear: The contentious issues of this year's legislative session appear to be driving much of the fundraising activity.

Organized labor staunchly opposed Pence's repeal of the state's common wage law, which allowed local boards to set wages — often union wages — for public projects. The governor and his supporters argued the change would save taxpayers money, but union leaders feared it would drive down wages and hurt working-class Hoosiers.

Those differences are reflected among Pence's and Gregg's largest contributors.

Fred Fehsenfeld of The Heritage Group contributed $100,000 to Pence's campaign, more than anyone else. The Heritage Group owns several companies, including Milestone Contractors, one of the state's largest highway construction contractors and the recipient of more than $600 million in work from the state since 2010.

Gregg's largest contribution — $200,000 — came from the Laborers' International Union of North America Political Action Committee in Washington, D.C. The union represents 12,000 workers in Indiana, including those who work on state highway projects. He also received contributions of $100,000 or more from five other trade unions.

The impact of the upheaval over the state's new Religious Freedom Restoration Act is less pronounced, but several Republican donors who have given Pence large contributions in the past opted not to do so during the six-month period. They include former Angie's List CEO Bill Oesterle, businessman Al Hubbard and philanthropist Christel DeHaan, who contributed $50,000 to Gregg.

One wild card in the race is Ritz. The former school librarian and union board member stunned many political observers when she defeated incumbent Superintendent of Public Instruction Tony Bennett with a low-profile, grass-roots campaign that tapped into teacher unhappiness with Bennett's reform agenda.

Still, political observers say any successful campaign for governor must include a robust fundraising effort. Whether Ritz can mount such an effort remains to be seen.

Call Star reporter Tony Cook at (317) 444-6081. Follow him on Twitter: @indystartony.