'Yes on Prop. 98' Reports: Obscure California Public Agency Spending Millions on Political Activity

Fundraising Scheme Designed to Undermine Eminent Domain Reform

SACRAMENTO, Calif., May 23 /PRNewswire-USNewswire/ -- The same anonymous campaign account that has provided over 80% of the revenue to qualify Prop. 99 is the subject of an investigative report by the Orange County Register. They exposed a fundraising scheme that involved funneling millions of dollars from an obscure public agency to political accounts to oppose Proposition 90, an eminent domain ballot measure that was narrowly defeated in 2006.

The California Statewide Communities Development Authority, a public agency controlled by the League of California Cities and the California State Association of Counties, but managed by a private firm, also declined requests to disclose all internal documents that could refute budget documents acquired by the Register that expose a clever scheme to funnel public dollars to campaign accounts financing opposition to eminent domain reform.

"It is increasingly evident that a taxpayer financed fundraising scheme is responsible for Prop. 99 being on the ballot today," said Jon Coupal, president of the Howard Jarvis Taxpayers Association. "Prop. 99 is a sham designed to trick voters into opposing Prop. 98's real reforms. Every local elected official that serves as a member of these taxpayer financed organizations should demand that all internal documents be released before Election Day or withdraw their membership."

While the League denies that it used public money to oppose Prop. 90, the Orange County Register reports that, "Internal documents from the League, however, suggest that money from California Communities may have flowed into a political campaign in 2006."

"The budget shows that in 2006 more than $3.6 million was moved from an account where California Communities money was held and put into a League political action committee. That same year, campaign finance records show that the same League PAC contributed more than $3.5 million to the No on Prop. 90 campaign."

To date, the League of California Cities, the California State Association of Counties and the California Redevelopment Association have funneled over $4.5 million to defeat Proposition 98 from the very same campaign accounts exposed by the Register. Unlike traditional campaign accounts, these so-called "non public funds" accounts do not disclose the source of their funding to state regulators and this is the subject of an ongoing Fair Political Practice Commission investigation. These anonymous campaign accounts are the primary source of funding for the No 98/Yes 99 campaign.

Earlier this year, the League and CSAC successfully lobbied against AB 1992, by Assemblyman Chuck Devore of Orange County, which would make these anonymous campaign accounts illegal.

The Orange County Register article - http://www.ocregister.com/articles/california-communities-public-2049595- league-agency

The Howard Jarvis Taxpayers Association, the California Farm Bureau Federation and the California Alliance to Protect Private Property Rights are the sponsors of Proposition 98. Prop. 98 is the only measure appearing on the June ballot that protects all private property from private to private takings, while allowing traditional uses of eminent domain for roads, schools and water projects. The measure is endorsed by NFIB, the Hispanic Chambers of Commerce and a diverse coalition of taxpayer, faith and good government organizations. For more information on Prop. 98, visit http://www.yesprop98.com/.

First Call Analyst:
FCMN Contact:

Source: Yes on Prop. 98

CONTACT: Marko Mlikotin, +1-916-444-8781, for Yes on Prop. 98 -Californians for Property Rights Protection

Web site: http://www.yesprop98.com/

2008-05-23 16:06:00 0369899 PRNEWSWIRE