By Staff Reporter It’s not often that state business and labor interests agree to oppose something, but both are against Proposition 25, the latest campaign finance reform initiative. The proposition imposes contribution limits of no more than $5,000 to any candidate or initiative, and bans direct corporate giving altogether. It would also provide up to $1 million worth of free broadcast advertising to any candidate or initiative campaign that agreed to abide by certain spending limits. The measure was put on the March 7 ballot by Ron Unz, the high-tech millionaire who championed the successful Proposition 227 campaign to end bilingual education after running unsuccessfully for the Republican nomination for governor against Pete Wilson in 1994. “California is one of only six states that has no limits on campaign contributions. It’s high time that we limit contributions and cut off the current practice of large corporations and unions writing huge checks of $100,000 or more,” said Prop. 25 co-author Tony Miller, former acting California Secretary of State and now a campaign and election law attorney. The initiative is under attack from both business and labor, each saying it gives an unfair advantage to the other camp. And both believe the public financing of broadcast advertising would allow more people who are against their agendas to put measures on the ballot. “This creates a very unlevel playing field,” said Fred Main, senior vice president of the California Chamber of Commerce. “Unions, which are already among the most significant contributors, can continue to contribute to the political process, while corporations are completely banned from contributing.” Labor makes virtually the same argument. “It takes an already unlevel playing field and makes it worse,” said Sharon Cornu, director of communications for the California Labor Federation. “You can have 15 executives from one corporation giving $5,000 each. There’s no way union members can match that individually.” Miller and Unz believe Prop.25 will avoid the court traps encountered by earlier initiatives because its limits are high enough to pass legal muster. They point to a recent U.S. Supreme Court ruling upholding contribution limits recently approved by voters in Missouri. But if the most recent statewide Field Poll is any indication, winning passage of Proposition 25 will be tough. That poll, taken earlier this month, shows only 38 percent of voters supporting the initiative, 38 percent opposed and 24 percent undecided. Under the initiative, if a candidate or initiative campaign agrees to abide by certain proscribed spending limits ($6 million for a statewide ballot initiative and gubernatorial campaign, $1.5 million for other statewide offices, etc.), that camp could receive up to $1 million in free broadcast media advertising. The exact dollar amount would be determined according to a complex matching formula. Another aspect of Prop.25 is more insidious, opponents say. Limiting direct contributions to candidates and initiative campaigns will only shift funds into the “soft money” arena of political action committees.
