California Needs More than Sunshine
June 9, 2009
by Webmaster
California Needs More than Sunshine
Today, 2 million Californians are unemployed; 843,000 more than one year ago. To overcome our current economic crisis, Sacramento lawmakers must do more than balance the budget; they must develop a new commitment to job creation and business growth. If we fail to grow new jobs in California, we will be plagued with a never-ending budget crisis.
The private sector is where this economic crisis hit first, and it's also where our recovery must begin. Over the past few weeks, we have heard nonstop about how budget cuts will impact state services and workers in state government —- both very important issues. But we have heard very little about the need to put 2 million private sector employees back to work.
Chief Executive Magazine recently released its 2009 "Best and Worst States" report. In it, they asked 543 CEOs to grade all fifty states on criteria including taxation and regulation, workforce quality and quality of life. California ranked dead last. One survey respondent summed it up this way: "Michigan and California literally need to do a 180 if they are ever to become competitive again. California has huge advantages with its size, quality of workforce, particularly in high tech, as well as the quality of life and climate advantages of the state. However, it is an absolute regulatory and tax disaster."
The L.A. Area Chamber is leading our annual advocacy trip — Access Sacramento — later this week where we will be pressing lawmakers to focus on the basics of economic development in order to Recover, Reform & Rebuild our state. At the top of our agenda is pushing for a full, independent evaluation of the state's business taxes, environmental regulations and labor laws, the legislation that most often puts California at a distinct disadvantage when compared to other states.
Most importantly, we are asking lawmakers to place a top priority on job creation and to think differently about how they approach legislation that impacts business and the new jobs and new tax revenue that comes with business growth.
Sunshine and diversity alone cannot sustain our state. It's time for us to get back to the basics of economic development. There are at least 2 million reasons for lawmakers to do so immediately.
And that's The Business Perspective.
Comments
We have some of the highest business and personal income taxes, sales taxes, fees and stiffest regulation in the country and the vast majority of our legislators continue to believe that businesses will stay here for the weather, the large consumer base, the lifestyle, etc. This is a fallacy.
The facts are clear that businesses and residents have never been so mobile and they are voting with their feet and leaving our state in droves -- because of the aforementioned high cost of doing business in California. It is only brick-and-mortar retailers that continue to have any desire to operate in the Golden State.
Rather than spending their time with strategists and special interests, legislators need to get out and talk to business owners, workers and the unemployed to get the true lay of the land ... and if they can track down a few of the California refugees they will find that they did not leave the state for better weather.
We need to act quickly to turn the tide.
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