Pubdate: Mon, 12 Jun 2000 Source: San Diego Union Tribune (CA) Section: Inside Politics Copyright: 2000 Union-Tribune Publishing Co. Contact: PO Box 120191, San Diego, CA, 92112-0191 Fax: (619) 293-1440 Website: http://www.uniontrib.com/ Forum: http://www.uniontrib.com/cgi-bin/WebX Author: Bill Ainsworth Note: Bill Ainsworth covers Sacramento for the Union-Tribune. 'SERIOUS MONEY' WILL BE SPENT ON DRUG MEASURE SACRAMENTO -- In one corner are blue-collar prison guards who claim to walk the toughest beat in the land. In the other are a trio of millionaires and billionaires who ride in the shiniest limousines, eat in the fanciest restaurants and live in the finest houses in the land. This fall these two groups are going to start a political brawl over a ballot measure that would divert people convicted for the first or second time of drug possession and drug-parole violators into treatment rather than prison. Prison guards have vowed to provide "serious money" to defeat this measure, while the three business executives, led by financier George Soros, plan to respond with their own millions. The two sides have one thing in common: success in politics. Prison guards president Don Novey transformed his union from an obscure bargaining unit into a statewide political powerhouse, with a record which rivals that of the most successful entrepreneur. In 1990, the guards broke ranks with most unions and contributed more than $1 million to Republican Gov. Pete Wilson. Eight years later, they switched parties again, spending about $2.5 million on Democratic Gov. Gray Davis. They have also bankrolled the crime victims movement and contributed toward passing the "three strikes" law that lengthens sentences for repeat offenders and assures a steady growth in prison inmates. Prison guards argue that the new ballot measure would undermine drug laws and disrupt drug courts. But their critics say the guards are worried primarily about job security. A Legislative Analyst's Office report concludes that the measure could divert as many as 25,000 people a year from prison to rehabilitation. The three wealthy backers of the drug treatment measure have no economic interest in the outcome. But critics contend they also have no business meddling in California politics. Some deride them as "billionaire potheads" for bankrolling a nationwide movement that they claim is aimed at legalizing drugs. Soros, a New York financier worth about $5 billion, is a Hungarian Jew who survived the Nazi roundup in 1944. Since the 1980s he has given away more than $1 billion to Eastern Europe and the Soviet Union. In 1994, he turned his attention toward the United States, pledging $15 million toward a drug policy that emphasizes rehabilitation. "Our drug policy is insane," Soros told Time magazine. "And no politician can stand up and say what I'm saying because it's the third rail -- instant electrocution." The second backer, John Sperling, is a one-time San Jose State University professor who pioneered the for-profit, higher-education company that operates the University of Phoenix, which is aimed at mid-career professionals. He's one of the richest men in Arizona, yet he believes in increasing taxes on the wealthy to fund more social services. The third partner, Peter Lewis, is the head of a Cleveland insurance company called Progressive Corp., founded by his father in 1937 to serve high-risk drivers. Now it's the fifth-largest auto insurer in the nation. Together, these three limousine libertarians have bankrolled successful statewide ballot measures legalizing marijuana for medical purposes in Washington, Oregon, Alaska, Maine and California. They also funded a successful ballot measure in Arizona to divert drug offenders to treatment. The coming battle in California represents their most ambitious political effort so far. In November, we'll know whether Soros, who earned his fortune speculating in currency, will be as successful speculating in California politics. Bill Ainsworth covers Sacramento for the Union-Tribune. - --- MAP posted-by: Jo-D