Business jumping into fray over November ballot propositions.

With the November ballot shaping up as one of the most important in years for businesses, local companies have ponied up millions of dollars for and against several initiatives besides Proposition 87.

Local insurance companies are pumping in money to defeat a proposal to publicly finance campaigns; construction firms are pouring money into the five infrastructure bond measures; homebuilders and developers are funding campaigns against a measure to restrict eminent domain and for a statewide housing bond; and local hospitals are contributing to an initiative that would dramatically increase the tax on cigarettes.

"We're seeing people and businesses put much more money into these measures than ever before," said Robert Stern, president of the Center for Governmental Studies in Los Angeles.

Besides Proposition 87, the measure drawing the most attention from business is Proposition 86, which would slap a $2.60-per-pack excise tax on cigarettes to raise up to $2 billion per year to fund various health and hospital programs. The measure pits two special interest groups against each other: hospitals and related businesses against the tobacco companies, chiefly Phillip Morris USA Inc. and R.J. Reynolds Tobacco Co. Local hospitals have contributed hundreds of thousands of dollars each to the political action committee of the California Hospital Association, which has put up nearly $9 million in support of Prop. 86.

Meanwhile, four locally-based insurance companies have contributed to the California Chamber of Commerce-run committee opposing Proposition 89, which would increase corporation taxes to fund a public financing system for campaigns and would restrict direct corporate contributions to campaigns. Insurance companies have had to fend off numerous ballot measures targeting them over the years and stand to lose substantial campaign clout if Proposition 89 were to pass.

The local insurance companies are: Los Angeles-based Mercury General Corp. ($100,000); Woodland Hills-based Zenith Insurance Co. ($100,000); Republic Indemnity Co. of Encino ($92,500); and 21st Century Insurance Co. of Woodland Hills ($32,000).

Mercury General chairman George Joseph also has given $100,000, while a political action committee of employees of agents of Los Angeles-based Farmers Insurance Group has contributed $50,000.

Other local companies funding the No on 89 campaign are Southern California Edison, the electric utility subsidiary of Rosemead-based Edison International ($100,000); Baron Real Estate of Redondo Beach ($100,000); and Los Angeles-based Pardee Homes ($50,000).

Meanwhile, another local real estate company is opposing Proposition 90, which would place severe restrictions on the use of eminent domain for redevelopment projects. Forest City Residential West Inc.,--the Los Angeles-based subsidiary of Cleveland-based Forest City Enterprises Inc. that's building hundreds of residential units in downtown L.A.--has contributed $250,000 to the opposition campaign.

Home builders and construction firms are prominent in support of the five major statewide bond measures on the November ballot, which include a $2.8 billion housing bond and a 320 billion highway bond. Among these: Sylmar-based Tutor Saliba Corp. ($50,000); developer Rick Caruso's Caruso Property Management Inc. ($25,000); L.A. Arena Land Co. Inc., which owns the land around the Staples Center ($25,000); City of Industry-based Majestic Realty Co. ($25,000); and Culver City-based affordable housing company Century Housing Corp. ($25,000).

By HOWARD FINE

Staff Reporter