Proposition 89, the “California Clean Money and Fair Elections Act of 2006,” slated for the November 7 ballot, provides for public funding of political campaigns. Though participation is not mandatory, the measure limits the contribution amounts for privately funded candidates. Prop. 89 also imposes new contribution limits on ballot measures. The public funding is paid for by raising corporate taxes from 8.84 percent to 9.04 percent — a hike of 0.2 percent. The measure also raises the double-digit tax rate on financial institutions from 10.84 to 11.04, a similar 0.2 percent increase.
