Is there a way to beat this politically? (Racism in Northern Colorado)

[Writer]

The city of Greeley in Northern Colorado held a mayoral election on Tuesday. Not to get too detailed, but the citizens of Greeley voted out the incumbent mayor and replaced him with a conservative cop who claims that the rise of illegal immigrants in the city has led to a rise in gang violence.

Fear of illegal immigration has been particularly hot in this part of the country, as noted in this article: http://www.denverpost.com/ci_6932520?source=rss

Rep. Marilyn Musgrave of Colorado's 4th CD has already raised the spectre of "evil" illegal immigrants by claiming that the SCHIP bill would give benefits to the children of illegal immigrants. I would guess that she would use it again to maintain her seat next November.

The fear in voters living in Northern Colorado has been stoked by conservatives' raising the illegals as boogeymen ready to commit violent crime. How can liberals combat that fear? What can they do? If they stand up and call out these activities as racism, voters will get angry because they themselves will feel maligned. However, they cannot stand idly by and allow this type of fear-mongering to continue.

What can liberals do when faced with this type of irrational fear? Can they do anything at all?