A state commission that
until last month was led by actor-director Rob Reiner
will face a full-scale audit into allegations it used
government money to promote Proposition 82, the
universal preschool initiative Reiner campaigned to
place on the June ballot.
Democratic and Republican
lawmakers ordered the audit of the First 5 California
Children and Families Commission in the wake of reports
that the group, which is charged with helping
California's youngest children and their parents, spent
$23 million on a television ad campaign extolling the
benefits of preschool as Reiner, the group's chairman,
was collecting signatures for his initiative.
Assemblyman Dario Frommer,
D-Los Feliz (Los Angeles County), joined state Sen. Dave
Cox, R-Fair Oaks (Sacramento County), in asking the
Joint Legislative Audit Committee for the review of
First 5.
"It's very important for
us to make sure this commission is properly spending
money it is accounted for ... and there is no collusion
between a state agency and a political campaign for
purposes of passing an initiative,'' Frommer said.
There are also concerns
that the commission used no-bid contracts to hire
consultants close to Reiner and paid out public funds to
people working on Reiner's Prop. 82 campaign.
Both Reiner and
representatives of First 5 have denied any wrongdoing
and said they welcome the audit. In a letter to the
committee, Reiner called on the legislators to approve
the independent audit.
"As a result of First 5,
hundreds of thousands of children across the state have
received health care, preschool and other critical
services to prepare them to succeed in school,'' he said
in the letter. "I am confident that that any inquiry
will serve to strengthen the mission of this important
agency."
The First 5 was created by
1998's Proposition 10, a Reiner-sponsored initiative
that put a 50-cent per pack tax on cigarettes. He was
appointed as the commission's first chairman in 1999 and
stayed in the post until last month, when he took a
leave from the unpaid job "to avoid any political
distractions" while he ran the universal preschool
campaign.
That tobacco tax has
generated more than $4 billion since 1999, with 80
percent going to county programs and 20 percent to First
5. In 2004-05, the state program's share of the money
was $119 million.
Backers of the audit have
argued that it's hard to tell where the state
commission's work ends and Reiner's political efforts
begin.
The groups that have done
political advertising and public relations work for the
state commission have also worked on Reiner's political
campaigns, for example. Ben Austin, a close aide to
Reiner, received more than $100,000 for consulting work
he did for the commission.
Austin was
replaced as the Prop. 82 campaign manager this week. The
campaign declined to say whether the controversy over
the government payments played a part in the decision.
Although Kris Perry,
executive director of First 5, declined to answer
questions at Wednesday's hearing, she had said earlier
that Reiner had nothing to do with the decisions on what
ads to run and when to run them, recusing himself from
those discussions after he put together plans for his
new initiative.
The decision to run the
ads at the same time as Reiner's initiative drive was
the unexpected result of last November's special
election, said Ray Behr, a former partner at the Santa
Monica firm of GMMB, which put together the ad campaign.
"The initial plan was to
start the campaign in the fall, looking at sometime from
July to September,'' said Behr, who opened his own
consulting firm last week. "But when the special
election was put on the ballot, GMMB recommended it
start after the election, since no nonprofit wants to
start its ads during the middle of a $200 million
political campaign.''
GMMB also is a likely
focus of the state audit, since the company worked with
Reiner both on the Prop. 10 campaign in 1998 and in the
effort to defeat Proposition 28 in 2000, which would
have repealed Prop. 10. Since then, it has received
about $170 million in contracts from First 5.
"Everyone was always very
conscious about maintaining separation between the state
commission and the political effort,'' Behr said. "GMMB
is not involved in the Prop. 82 campaign.''
State Auditor Elaine Howle
said the audit, which was approved by the legislative
committee 11-0, would take four to five months to
complete and would delve into, among other things, the
commission's advertising spending, contracting and
whether there was coordination between the commission's
media campaign and the Prop. 82 political campaign.
E-mail
John Wildermuth at
jwildermuth@sfchronicle.com.