Spending Measures Pit Union Cash, Development Interests’ Donations

The battle between rival ballot initiatives aimed at raising the state spending limit has boiled down to an expensive contest matching Orange County land developers and highway construction firms on one side and public employee unions on the other, official reports showed Friday.

The developers and highway construction interests are backing Proposition 72, which would free the state to spend as much as $1.6 billion more a year than is now possible. The measure would require that the current level of highway spending be increased by $725 million a year.

Supporters of the measure have spent more than $3.2 million, including $1.8 million that went into the campaign to put the measure on the ballot, according to spending and contribution reports filed with the secretary of state’s office.

$1.2-Million Deficit

The Proposition 72 campaign organization, headed by anti-tax crusader Paul Gann, reported a deficit of $1.2 million, including $833,767 in loans from the Irvine Co. of Orange County, a major supporter.

The latest reports showed that major new contributions came in from Rancho Santa Margarita of Mission Viejo, $75,000; the Koll Co. of Newport Beach, $50,000, and $58,502 from a business-backed group, Committee for Transportation.

Just over $2 million has been raised by supporters of the rival measure, Proposition 71, which would raise the state spending limit but provide no extra money for highway projects. Supporters of the measure who believe that it would make substantially more money available for the schools include state Supt. of Public Instruction Bill Honig, public employee unions and numerous school support groups, such as the PTA.

The latest reports showed that $1.1 million has been raised since February by supporters of Proposition 71.

Big contributions have come from the California Teachers Assn., $375,000; the American Federation of State County and Municipal Employees Union, $25,000; the Assn. of School Administrators, $45,000, and the California State Council of Service Employees, $55,000.

Opposition Groups

Supporters of Propositions 71 and 72 have also formed official groups opposing each of the measures.

Two committees are working to defeat Proposition 71. One, the Northern California-based Californians Against Higher Taxes, reported raising $34,706. The other, the California Tax Reduction Movement, the organization once headed by the late Howard Jarvis, raised $241,000 and reported spending all but $36,000 of it. Nearly all the contributions were in the range of $100.

In other filings with the secretary of state’s office, supporters of Proposition 70, a $776-million parks bond initiative put on the ballot by conservationists, reported raising $1 million. The conservation groups said they took in $112,762 in contributions of less than $100.

Larger individual contributions came from Capitol Gateway, a Sacramento firm, $10,000; Defenders of Wildlife, $3,000; the Irvine Co., $3,000; Pelican Timber Partners, $25,000; San Diegans for Parks and Wildlife, $15,000; the Save the Redwoods League, $4,000, and the Los Angeles chapter of the Sierra Club, $3,050.

Opponents of Proposition 70, mostly farmers and cattle ranchers, reported raising $85,430, of which $70,276 came in the form of donations for staff and office services by the California Farm Bureau Federation. The committee is called Citizens for Honest Park Planning Agriculture and Business.

AIDS Initiative

On another measure, opponents of Proposition 69, the AIDS initiative, have raised $191,411 to fight the measure that would require health officials to report the names of AIDS carriers to the state Department of Health Services. They have spent more than that, $226,778, reporting debts of $47,367.

Among the bigger contributors to the No on 69 campaign are the California Teachers Assn., $10,000; Cheers Kaplan & De Vargas, a West Hollywood restaurant and bar, $3,300; Levi Strauss & Co., $2,000; Pacific Telesis Group, $2,000, and Wells Fargo & Co., $2,000.

Supporters of Proposition 75, a bond measure to provide $800 million for school construction and rehabilitation, have raised $205,764.

Some of the major contributors to the school bond measure include the Assn. of California School Administrators, $5,000; the California Teachers Assn., $10,000; BankAmerica Corp., $5,000; Construction Industry Advancement Fund, $5,000; the Irvine Co., $5,000; Newhall Land and Farming Co., Valencia, $5,000, and Carmichael-Kemp Architects, $5,000.