CALIFORNIA ELECTIONS / PROPOSITION 167 : Backers Pin Hopes on a 900 Number

Warring campaigns over Proposition 167, the state tax reform measure on the Nov. 3 ballot, are taking two decidedly different roads to Election Day, with opponents collecting six-figure contributions from giant corporate sponsors and proponents launching an innovative $5-a-call 900 phone line.

The No on 167 campaign--calling itself Californians for Jobs, Not More Taxes--reported that it raised $3.2 million in the last three months. Most of the money is from oil, insurance and banking concerns that are targeted to lose tax deductions and face higher tax rates.

A complex package of tax increases and cuts, Proposition 167 would raise income taxes on corporations and some individuals. It also would cut the sales tax, eliminate the so-called “snack tax” and extend renters credits.

Among the largest contributions to the effort to defeat the initiative are: Chevron Corp., $360,000; Shell Oil Co., $340,000; American Council of Life Insurance, $335,000; Arco, $300,000; Anheuser-Busch Cos. $200,000; and BankAmerica Corp., $200,000, according to figures made public Wednesday.

“Large employers in the state are concerned about 167,” said Scott Macdonald, spokesman for the No on 167 campaign. “This is a big tax hit and it will (mostly) come from business.”

Larry Berg, director of the Jesse Unruh Institute of Politics at USC, said the numbers confirm that “They are taking this pretty damn seriously.”

The total amount raised to date by the coalition of business groups--$3.5 million--still pales next to the $68 million spent by the insurance companies in 1988 on a package of insurance reform initiatives.

Proponents of 167, meanwhile, are banking on an unusual direct-response television ad campaign to fund their effort.

Beginning Wednesday on at least two Los Angeles television stations, backers of Proposition 167 began airing a commercial that supports the initiative and asks viewers to call a 900 telephone number to learn more.

The call costs $5 for the first minute and $1 for each additional minute. Callers can listen to a taped message about the proposition and request literature and other campaign material.

“We expect tens of thousands of Californians will call,” said Stephen K. Hopcraft, campaign manager for the group calling itself Californians for a Recovering Economy. “We are depending on ordinary Californians who want a change.”

If they don’t call, the campaign could be a short one.

Hopcraft said his group is “rolling the dice with the entire budget on this.” The campaign, largely funded by public employee unions, has raised about $730,000 so far and is spending its last $200,000 on the television ads.

The No on 167 group has concentrated its campaign on radio ads. It says that Proposition 167’s tax increases will affect virtually all Californians and will drive jobs out of state.

Proponents of the initiative say business and the wealthy should pay their fair share of taxes to support needed public services. Opponents say the measure would cost California 100,000 jobs in layoffs and corporate relocations.

The 900-line telephone strategy is a twist on former presidential contender Edmund G. (Jerry) Brown Jr.’s innovative 800-line campaign.

Brown’s celebrated phone line attracted 280,000 callers who collectively pledged $6.5 million in campaign contributions, according to a campaign spokeswoman.

Battling Prop. 167

Proposition 167 would, among other things, reduce tax deductions for banks, insurance companies and oil producers while increasing the corporate tax rate from 9.3% to 10.3%. Here are the top contributors to the “No on 167” campaign for the three months ending Sept. 30, 1992: Chevron Corp.: $360,000 Shell Oil Co.: $340,000 American Council of Life Insurance: $335,000 Arco: $300,000 Anheuser-Busch Cos.: $200,000 BankAmerica Corp.: $200,000 State Farm Mutual Automobile Insurance: $177,000 Mobil Oil Corp.: $150,000 Farmers Insurance Group: $150,000 Union Oil Co.: $125,000

Source: Campaign filing, secretary of state