LOS ANGELES, October 27, 2008 – Amid the state budget crisis and financial market meltdown, voters are anxious about ballot measures that will cost the state money. There’s only one measure on the November ballot that will actually cut state costs, according to the nonpartisan Legislative Analyst’s Office (LAO). That’s Proposition 5.

Cost-cutting is the theme of “Bottom Line”, a new TV spot released today and airing statewide. The ad highlights the ballot language prepared by the LAO: that Prop. 5 will result in “capital outlay savings potentially exceeding $2.5 billion.”

The LAO’s analysis has impressed other groups concerned with the state’s fiscal health:

Adrian Moore, of the Reason Foundation, said “Proposition 5 is taxpayers’ only hope of getting prison spending under control, and the only choice on the ballot for voters concerned with our state’s fiscal solvency.”

Richard Holober, of the Consumer Federation of California, said, “Prop. 5 is a good deal for California taxpayers. It’s the only measure on the ballot that will reduce state spending. In these economic times, California can’t afford not to pass Prop. 5.”

According to the LAO, Prop. 5 will reduce the state prison population by at least 18,000 and the number of people on parole by 22,000. Overall, the LAO calculates that Prop. 5 will generate “savings potentially exceeding $1 billion annually on corrections operations.” Annual costs for Prop. 5 rehabilitation programs could eventually grow to $1 billion, says the LAO – making Prop. 5 cost-neutral on an annual basis.

By reducing the number of nonviolent offenders behind bars and on parole, Prop. 5 will slow California’s skyrocketing prison growth – which is currently increasing at three times the rate of the general adult population. According to the LAO, this would reduce future spending on prison construction by at least $2.5 billion.

Margaret Dooley-Sammuli, deputy campaign manager with Yes on 5, said “Prop. 5 is a smarter way to spend existing resources so that we put the brakes on out-of-control prison growth while investing in proven, effective recidivism-reduction programs.”

UCLA researchers have found that treatment diversion saves $2.50 for every $1 invested, and yields $4 for every $1 among those who complete treatment. So, advocates believe, long-term savings from Prop. 5 could well exceed the $2.5 billion projected by the LAO, as more individuals achieve long-term abstinence from drugs and alcohol and become productive members of the community.

The TV spot is online here: News / Campaign Ads/Videos