Though most of the attention—and money—in Tuesday’s election is focused on the presidential contest and congressional races, big dollars are also pouring into ballot initiatives, with well-financed groups battling over the direction of state and local government. So far, supporters and opponents of 120 propositions on ballots across the country have raised $1.1 billion. At the heart of these struggles are face-offs between unions and businesses from California to Illinois to Arizona. Businesses and taxpayer groups are trying to cut taxes and unwind costly regulations, while unions and other groups want higher government levies, more spending, and more government control. The money spent on these campaigns suggests just how much is at stake.
California, with a history of controversial ballot initiatives and a multitude of well-funded groups, leads the way. More than half the money raised so far this year is being used in initiative battles in the Golden State. The fiercest and most expensive is the effort by app-based driving services like Uber and Lyft and other tech firms to define delivery and ridesharing drivers as independent contractors, thus overriding the controversial law AB-5, which classified many of these workers as full-time. Total money raised exceeds $200 million, most of it from the app firms in what will likely be the most expensive ballot campaign in state history. Several unions, including the International Brotherhood of Teamsters and the United Food & Commercial Workers, have stepped up with big contributions of their own to help defeat the override. While polls show the proposition well ahead among voters, it has yet to garner the support of a majority, thanks to a significant number of undecideds. There’s a risk here for the tech companies: even if they succeed in California, a potential Biden administration and Democratic Congress could undo their efforts with a national version of AB-5.
Read Full Article »