The Yes on Prop. 39 campaign sort of declared victory today, announcing it would pull its television and radio ads after hearing that the companies once opposing the measure will do so no longer.
Proposition 39 would close a loophole for multi-state companies, requiring them to pay taxes based on sales in California rather than allowing them to choose how they are taxed. The state would realize about $1 billion more per year in revenue if the measure passes. Thomas Steyer, founder and co-senior managing partner of Farallon Capital Management, has put up $21.9 million to bankroll the measure.
And it looks as if it worked. The committee backing Prop. 39 today said it has been informed by General Motors, International Paper and Kimberly-Clark that they won’t oppose the measure any further. Chrysler and Procter & Gamble, the two other companies that once were part of a coalition opposed to closing the loophole, also recently stated that they would not oppose Proposition 39.
The California Business Roundtable tracking poll‘s latest numbers show Prop. 39 now has 63.1 percent support, its highest level in two months.
California’s U.S. Senators, joined by much of the Bay Area’s House delegation, wrote to Toyota today to forestall closure of the New United Motor Manufacturing Inc. (NUMMI) plant in Fremont, but apparently it’s too little, too late.
NUMMI is a joint venture between General Motors and Toyota; GM announced last month it will withdraw, and Toyota has been considering doing the same. The plant’s closure would cost 4,500 California jobs directly, and an estimated 35,000 or more indirectly.
The lawmakers wrote to Toyota Corp. President Akio Toyoda to emphasize NUMMI’s importance to California’s economy and to offer to work with Toyota to keep the plant open. Also, U.S. Sen. Dianne Feinstein, D-Calif., reports she recently spoke on the phone with Toyota Motor America President Yoshimi Inaba about her willingness to help find solutions to keep the plant in operation’ other California lawmakers have talked to company officials as well.
But even as the lawmakers announced their effort, media began reporting Toyota’s decision to pull out of the venture and close the plant.
UPDATE @ 5:11 P.M.: Never say die, Gov. Arnold Schwarzenegger’s office insists. The governor has talked with and written to the Toyota execs, too, and has formed a “Red Team” of stakeholders to work on keeping the plant open. “The Schwarzenegger Administration is actively engaged with NUMMI’s partners, Toyota, federal officials, local officials, labor, suppliers and other stakeholders to work together to ensure the future success of the facility,” David Crane, the Governor’s special advisor for jobs and economic growth, said in a release. “Our office will continue to respect Toyota’s wishes to keep discussions private as we work together to determine the best path for ensuring NUMMI’s continued operations in Fremont.”
See the letter, after the jump…