The November 3 general election ballot contains statewide propo-sitions that would have significant impact on California taxpayers, including measures affecting deregulation of electric utilities, construction of public schools, and increasing taxes on tobacco.

The Board of Directors of the California Taxpayers' Association, after lengthy discussion and debate, determined that Cal-Tax opposes Proposition 9 - the electric utility initiative, and Proposition 10, the cigarette tax increase, and supports Proposition 1A - the school bond measure.

Here is why:

Proposition 9. This initiative would dismantle California's competitive electricity market just as it is getting under way - and eliminate customer choice and competitive electricity rates. Passage of Proposition 9 would result in higher electric rates and higher taxes. It is poorly written and would create more bureaucracy and red tape, costing taxpayers billions of dollars and causing lawsuits. It would throw the electric system into turmoil.

The initiative could dig a $6 billion hole in the state's budget, resulting in drastic reductions in key services, or a huge tax increase. This measure would jeopardize the state's economic recovery by creating uncertainty for California-based companies and employers considering locating in this state.

Proposition 1A. This $9.2 billion general obligation bond package for public schools, including $2.5 billion for higher education, is essential to provide classrooms needed for enrollment growth. This measure also contains important cost-saving provisions to stretch the value of the bond dollars. It is estimated that cost-saving reforms will be enough to pay for construction of 156 additional schools. It also protects buyers from having to pay huge fees that inflate prices of new homes.

This proposition does not increase taxes because bonds may be financed from existing state general fund revenues. Failure of this measure would increase pressure for local general obligation bonds that automatically increase property taxes and would produce unequal school facilities due to variances in local property values.

Proposition 10. The programs that this tax would fund are popular, and therefore should be funded from general state revenues, rather than imposing higher, discriminatory taxes on a group of taxpayers. Early childhood education should be a budget priority for which the Legislature could redirect existing revenues. Cigarette taxes are regressive, as smokers tend to be low- to moderate-income people, and the tax will be paid by smokers, not the companies that make the cigarettes.

Furthermore, the measure ties programs to a diminishing revenue source, as higher taxes tend to reduce smoking - and tax revenues.

- Larry McCarthy is president of the California Taxpayers' Association (Cal-Tax).

Larry McCarthy