Ad against Prop. 56 claiming it ‘cheats’ schools is deceptive
TV spot sponsored by Big Tobacco telling voters that the measure would hurt education is shamelessly deceitful
This is one in a series of factchecks of ads running this election season:
WHAT’S THE AD ABOUT? It targets Proposition 56, which would raise the state’s tobacco tax $2 a pack and include comparable increases on other forms of tobacco and e-cigarettes. If the measure passes, it would be the first hike in the state tobacco tax since 1999. It’s now 87 cents a pack.
WHO’S FUNDING THE AD? The campaign against the measure, primarily bankrolled by tobacco companies such as Philip Morris USA and R.J. Reynolds, recently released a 30-second ad that is just one of a slew of statewide TV ads aimed at convincing voters that Proposition 56 would hurt schools. So far, the tobacco industry has pumped $56 million into defeating the measure.
WHAT DOES THE AD SAY? One recent TV ad features Davina Keiser, a Long Beach math teacher, walking into a dimly lit classroom. “Good schools are important to my students and California,” she begins solemnly. Keiser says
that’s the reason voters “passed a law to ensure that schools get 43 percent of any new tax revenue.” She’s referring to Proposition 98, a measure passed by California voters in 1988 that requires the state to set aside a certain percentage of general-fund revenues for schools and community colleges. “I was astounded to learn that Prop. 56 was written intentionally to undermine that guarantee,” the teacher says as the words “Cheat schools of $600 million a year” appears on the bottom of the screen.
The ad also claims that most of the revenue from Proposition 56 would go to “wealthy special interests” such as insurance companies, but “not one penny goes to improve our kids’ schools.” After passing out pencils to empty desks, the teacher concludes: “That’s just bad math.”
IS IT TRUE? The ad is shamelessly deceptive. Of the up to $1.4 billion the tobacco tax is expected to generate in its first year, roughly $20 million is pegged for “school programs” to prevent and reduce the use of tobacco by young people, according to the nonpartisan Legislative Analyst’s Office. While it’s true that money raised by Proposition 56 would be exempt from requirements set by Proposition 98, it’s misleading to say schools are being “cheated” out of anything. Yes, the revenue from Proposition 56 goes into a special fund — but that’s not unusual for special taxes such as tobacco taxes. In fact, the revenue from the state’s current 87cent tobacco tax goes into a special fund that primarily supports early childhood development programs and tobacco education and prevention efforts. Only 10 cents from the current tax goes to the state’s general fund.
The irony is that if Proposition 56 fails — as the tobacco industry hopes — schools won’t get any more money, not even the $20 million for the anti-tobacco programs. The claim that “wealthy special interests” would be the main beneficiaries of the increased tax is highly misleading. Most of the new tax’s revenue — about 82 percent — goes toward Medi-Cal, a state and federal government program that provides health coverage for California’s poor. The program, which now covers about a third of Californians, currently provides low reimbursement rates to hospitals and doctors. So infusing the system with more cash could stabilize the Medi-Cal system. Medi-Cal would also eventually save millions if more Californians stop smoking because of the higher tax.