Proposition 89: Take the “For Sale” sign off the State Capitol

Gray Davis’ $30 million in fundraising in an election cycle seems a quaint reminder of a simpler time. Since 2003, Arnold Schwarzenegger has raised $100 million for his various campaign committees. The governor wields a steady veto pen when bills that upset his contributors survive the legislature and reach his desk.

Of course, there are principled elected officials who vote against these big money donors. Some even take the money, smile, and then vote their conscience. There are simply not enough of them to make a difference on issues that face major corporate opposition.

This November, we can take the “For Sale” sign off the state Capitol. The Consumer Federation of Californiasupports Proposition 89, the Clean Money Initiative, because we must change the rules of politics before ordinary Californians will have a chance to put our interests on an even footing with big corporate donors.

Prop 89 would create a Clean Money Election system similar to the ones that now exist in Arizona, Connecticut and Maine.

The Clean Money and Fair Elections Initiative allows candidates who run for state office, and who agree not to accept private contributions, to receive public campaign financing. The funding comes from a 0.2% increase in the corporate tax rate. That’s less than 20 cents for every $100 of profits. Personal income tax rates are not affected.

These funds are available to candidates who demonstrate widespread support. A “Clean Money” candidate for the State Assembly would have to collect 750 contributions of $5 each to qualify for the $250,000 in public financing to run in the primary election. If you won your party's primary election in June, you'd receive an additional $400,000 to run your general election campaign.

The initiative also dramatically reduces the amount that businesses and others can give to candidates who decide not to participate in the Clean Money system.

The real beauty of Proposition 89 is that it stops a candidate who takes special interest money from drowning out a Clean Money opponent. If a well-funded politician tries to buy the election by spending record amounts of PAC dollars, Proposition 89 increases the public financing of a Clean Money candidate by up to five times, keeping the playing field level.

If you were running for governor you’d have to gather 25,000 small contributions to get public financing. In other words, to qualify for public financing you'd have to really go out and solicit support from the people -- not just from a small number of special interests or wealthy donors.

The Clean Money Initiative also sets strict limits on contributions to independent expenditure committees, political action committees and political parties.

Proposition 89 will limit contributions by corporations in support or opposition of a ballot measure to $10,000. That’s good news for consumers. Last year, pharmaceutical companies spent $87 million to defeat a ballot initiative that would have forced them to give drug discounts to moderate income families. Companies like Johnson and Johnson, Merck and Pfizer each ponied up $9.8 million to protect their bloated profit margins.

Proposition 89 may not be a cure all, but it is a huge step forward. It allows candidates who demonstrate a real base of public support to run competitively, freed from groveling before big check writers. That alone will make a big difference in the way the issues are debated.

The Consumer Federation of California has joined with The League of Women Voters, California Common Cause, The California Nurses Association and many others in saying “Yes on Proposition 89”. It’s our best chance to restore a system that has degenerated into “one dollar – one vote” back to the principle of “one person – one vote”.

The Consumer Federation of California is a non-profit advocacy organization. Since 1960, the Consumer Federation of California has been a powerful voice for consumer rights. CFC campaigns for state and federal laws that place consumer protection ahead of corporate profit. Each year, CFC testifies before the California legislature on dozens of bills that affect millions of our state's consumers. CFC also appears before state agencies in support of consumer regulations

Recent CFC legislative issues include: protecting consumer financial privacy, reforming accounting industry practices, enabling patients to sue HMO's for denial of care, holding homebuilders accountable for construction defects, prohibiting manufacturers from keeping secret vital safety information about defective products, enacting cell phone users rights, and strengthening food safety laws.