Late Surge of Cash Props Up Campaigns : Politics: Biggest flow of money is from businesses trying to defeat Proposition 167, which would raise taxes on wealthy and corporations.

With the Nov. 3 election fast approaching, businesses large and small have gone on a spending spree and groups ranging from the Catholic Church to labor unions have pumped in six-figure infusions of cash seeking to influence votes, campaign reports showed Friday.

The biggest single deluge of money went to the campaign to defeat Proposition 167, a measure that seeks to raise taxes on wealthy individuals, corporations, banks and oil producers.

In a five-day period that ended Friday, companies such as Disney, Chevron and Philip Morris dumped $1.88 million into the campaign against Proposition 167. In all, businesses have donated more than $8.5 million in trying to defeat the measure.

Proposition 167’s backers have spent less than a tenth of that and are $160,000 in debt. In a news conference, supporters pointed to the millions going into the campaign against their ballot measure, and proclaimed that it proved their point that the wealthy and big businesses, not the middle class and small businesses, are the targets.

“It does tax big oil. It does tax insurance. It does tax multinational corporations,” said Lenny Goldberg, of the labor-backed California Tax Reform Assn., which sponsors the measure. But he insisted that it offers tax relief to most Californians.

Campaign spending reports for state races covering the first 17 days of October began arriving at the secretary of state’s office Friday. Large donations made since Oct. 18 were being reported on a daily basis in telegrams to the secretary of state as required by state election law.

As huge as the amounts were, spending on state races appeared to be less profuse than in past years, according to Melissa Warren of the secretary of state’s office.

The reports show that the Catholic Archdiocese of Los Angeles spent $125,000 seeking the defeat of Proposition 161, which would allow terminally ill people to receive a physician’s help in dying. Catholic churches and organizations gave several hundred thousands more to defeat the initiative. Altogether, opponents of Proposition 161 collected almost $3 million.

Other big donors against Proposition 161 included the California State Council of the Knights of Columbus ($200,000) and Fieldstead & Co., controlled by Christian fundamentalist Howard Fieldstead Ahmanson Jr., which gave $50,000 on Monday on top of another $50,000 he donated earlier.

The Hemlock Society, which supports euthanasia, gave $15,000 in support of Proposition 161, making it the one recent donor of any size in support of the measure.

Republican and Democratic candidates for Assembly and Senate seats gassed up for the stretch drive with generous contributions from interests that have economic stakes in the legislation.

Democratic Assembly Speaker Willie Brown (D-San Francisco) reported major contributions from sources often identified with business. To avoid offending the Republicans, however, many of Brown’s benefactors also give to the GOP and to Republican Gov. Pete Wilson, who wants to oust Brown as Speaker.

Among Brown’s donors in recent weeks were the California Manufacturers Assn., which gave $12,000; Arco, which gave $12,000, and the California Society of Certified Public Accountants, which chipped in with $13,000.

The Speaker doles out the money to Democratic candidates. Spending reports make clear that several of his Democratic allies are under heavy attack by Wilson and Republican legislators.

Wilson routed $60,000 on Monday to GOP Assembly candidate Dick Daleke of San Diego, who is challenging first-term incumbent Mike Gotch (D-San Diego).

The biggest money magnet of the year appears to be Proposition 167, the measure to tax businesses. Donors giving six-figure contributions in the past five days to defeat it include the American Insurance Assn., $302,000; Disney, $250,000; Philip Morris, $200,000; Exxon, $167,000; Mobil Oil, $143,000, and National Medical Enterprises, $100,000.

Through its various increases on taxes paid by businesses and wealthy individuals, Proposition 167 seeks to raise $1 billion in the first year after passage, while cutting other taxes--including the sales tax--by $660 million.

Goldberg, the leading proponent of Proposition 167, said the measure is draining big businesses’ campaign coffers, leaving them less able to fund other proposals, including Proposition 165, Gov. Wilson’s measure to increase his budgetary powers and cut welfare costs.

Proponents of Proposition 165 reported collecting $3.6 million and spending $3.7 million. The biggest contributor was Wilson’s group Golden State 2000, which gave $234,193. Wilson’s campaign committee lent another $1.3 million to the Proposition 165 campaign.

The campaign against Proposition 165 reported collecting $3.2 million and spending $2.3 million. Big contributors included the California State Employees Assn., $976,355, the Democratic State Central Committee, $579,000, and the California Teachers Assn., $311,664.

Times staff writer Carl Ingram contributed to this story.