A group founded by Sen. Dianne Feinstein plans to place an advisory measure on the November ballot that would ask voters to overturn the city's system of desegregating public schools that forces some students into classrooms far from their neighborhoods.

SFSOS, a moderate advocacy group founded by Feinstein in 2002 and backed by some of the city's most influential business people, wants to see the San Francisco Unified School District return to the system used 20 years ago that allowed children to attend the school closest to their home, said Wade Randlett, the group's president.

That system was disbanded by the district to settle a discrimination suit brought by the NAACP on behalf of African American students stuck in low- performing schools on the east side of the city.

Randlett says, however, that times have changed: San Francisco now offers better schools in all parts of the city, and students no longer should be forced to take long Muni bus rides to school.

He said that the desegregation system has driven many angry families out of the city and that neighborhood schools would help bring white and middle- class students back to the district. Now, white students make up just 10 percent of enrollment.

Randlett said there's a "good chance" SFSOS -- which has been studying the issue -- will work to get the measure on November's ballot.

"Voters are standing on the rooftops saying, 'Come on, do this.' It's obvious what we need to do," he said. "The school board needs to understand that they've got it fundamentally wrong right now and that they need to go 180 degrees in the other direction."

Under the group's plan, certain schools, such as Lowell High and School of the Arts, which have admission requirements or offer special curriculums, would continue to be open to all students.

To get such a measure on the November ballot, SFSOS could launch a signature drive or persuade four members of the Board of Supervisors or the mayor to sponsor it.

Among SFSOS's donor members are Feinstein's husband, investment banker Richard Blum; Donald Fisher, founder of Gap Inc.; financier Warren Hellman; developer Oz Erickson; and philanthropist Dede Wilsey. Feinstein's press secretary could not be reached for comment Thursday.

The group recently commissioned David Binder to survey 600 people about the issue of neighborhood schools and says results show why the proposed ballot measure is necessary. One question asked whether busing students to schools in other neighborhoods "is a small price to pay to achieve greater diversity" or "places a burden on students and creates a safety risk."

Every racial group, as well as liberals and conservatives alike, said busing "places a burden on students and creates a safety risk," the group said. Randlett, a Democratic Party operative who served on San Francisco Mayor Gavin Newsom's transition team, predicted that a measure advocating a neighborhood school system would pass by at least 60 percent.

By most accounts, though, passage of the measure would be largely symbolic because of a complicated web of court settlements that created the district's current assignment system. In 1983, the NAACP sued the district to desegregate its schools, and the district settled the case by agreeing that no race would make up more than 45 percent of a school.

In 1994, a group of Chinese American families filed another lawsuit, saying the 45 percent limit was unfairly keeping some of their children out of top-notch schools such as Lowell. To settle that case, the district, the Chinese families and the NAACP agreed to the creation of the current system, known as the "diversity index."

It factors in six socioeconomic factors, but not race, when assigning students to schools. Last year, a group of west side families refused to send their children to their assigned schools on the east side of the city for six weeks in protest.

Court supervision of the district's assignment plan is due to expire in December 2005, which means the assignment system could be changed for the 2006- 07 school year. Superintendent Arlene Ackerman has formed a committee to study how the district should proceed for that year and beyond. Ackerman's assistant said the superintendent had no comment on the measure because of the court order.

Randlett said SFSOS wants the system changed a year ahead of schedule, but that's unlikely according to many observers. Lawyers for the district, the NAACP and the Chinese families would have to agree to follow the voters' will, draw up boundary lines of attendance for every neighborhood school and go before supervising federal Judge William Alsup to get the court order changed.

Maree Sneed, an attorney who has represented the school district on the court order for five years, said that scenario is unlikely. She added that the wealthy backers of SFSOS would do more for schools by donating the time and money they are likely to spend promoting the ballot measure.

"What are they trying to accomplish?" she said. "I would hope they would get behind us and focus on improving academic achievement for children -- that's the most important thing."

Lawyers Michael Harris and David Levine -- who represent the NAACP and the Chinese families, respectively -- also said Thursday the measure would be useless and they wouldn't agree to go back to court because of it.

School board members, too, reacted to the proposed measure with anger. Eric Mar said SFSOS "should have no business in telling the school district how to assign students."

Board member Jill Wynns said the group wasn't taking into account that the majority of families request schools outside their neighborhoods. "I think people still want choices," she said.

Randlett said Ackerman's new plan for Dream Schools -- rigorous schools infused with outside money in the city's poorest neighborhoods -- would ensure good schools are available in every neighborhood.

"I would be in favor of it. ... It would certainly be a step in the right direction," said Sunset resident Peter Akraboff of the measure. He pulled his son out of the district after he failed get into Lincoln High, six blocks from his house, and instead was assigned to John O'Connell High in the Mission District.

Randlett said that even if the measure doesn't change the system, voters have another way of ensuring the creation of neighborhood schools. Four board members - Mar, Wynns, Heather Hiles and Mark Sanchez - are up for re-election in November.

"I think those school board members who think neighborhood schools are a bad idea will face the wrath of voters," he said.