Insurers Among Opponents of Public Financing Measure

Insurance companies have emerged as one of the biggest contributors to a committee established by opponents of Proposition 89, the San Jose Mercury News reports.

Proposition 89 would limit contributions to state legislative candidates, independent expenditure committees and political parties. The California Nurses Association, the main sponsor of the measure, argues that it would deter political corruption and restrict the ability of interest groups to influence elected officials. The measure would increase state taxes on corporations and banks to fund a public financing system at an estimated cost of $200 million annually.

Opponents say that CNA is using the measure to advance a universal single-payer health insurance system and that the measure would discriminate against corporations and unions while increasing tax-spending programs.

In a statewide survey last month, 61% of likely voters said they would oppose Proposition 89, with 25% supportive (Harmon, San Jose Mercury News, 10/13).