Revised California State Budget Presents Challenges
Governor Newsom unveiled his May budget revision presenting a 2024-25 plan with provisions that represent an $18 billion tax increase on California businesses over four fiscal years. Governor Newsom's budget proposes to reverse a recent Office of Tax Appeals ruling – resulting in a tax increase – and revive the net operating loss and tax credit limitations used in the past to address budget deficits. The Legislative Analyst’s Office advised lawmakers that Newsom's plan would “lead to a less equitable tax system” and increase taxes on California businesses by approximately $2 billion in 2024-25, increasing to more than $5 billion annually in future years. Over the three years during which NOL deductions and tax credits would be limited, these and other tax increases would total approximately $18 billion. The Chamber is concerned with this business tax increase and is working with partners to advocate against the suspension.
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Chamber Celebrates Armed Forces During Fleet Week
Fleet Week offers a unique opportunity for the community to connect with the members of the United States Armed Forces. The L.A. Area Chamber celebrated L.A. Fleet Week aboard the USS Carl Vinson, marking it the first visit of an active U.S. Navy aircraft carrier to the L.A. waterfront in 13 years. This was followed by a special reception at AltaSea, with featured remarks by Chamber President & CEO Maria S. Salinas, Port of Los Angeles Harbor Commissioner Lee Williams, Joanne Nowlin, Chief Executive Officer, Los Angeles Region American Red Cross, AltaSea, and Rear Admiral Carlos Sardiello, Commander of Carrier Strike Group One. Fleet Week offers a unique opportunity for the community to connect with the members of the United States Armed Forces.
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L.A.U.S.D. and Long Beach Unified Honored
The Educational Results Partnership (ERP), a non-profit organization that applies data science to accelerate student success, released its annual California Honor Roll list of top-performing schools in partnership with California business leaders. The ERP Honor Roll program recognized 1,430 schools and 109 school districts. The Chamber applauds local schools listed and is proud that both L.A. Unified and Long Beach Unified are among the top-performing districts. Access the full list here.
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Chamber Testifies in Support of Olympic Readiness
This week the L.A. Area Chamber testified in support of the L.A. County motion which directs the county's CEO in collaboration with the Department of Economic Opportunity to analyze within 150 days the economic opportunities and potential impact of the 2028 Olympic and Paralympic Games for Los Angeles County and its unincorporated communities. The Chamber strongly supports this motion and has provided insights on opportunities related to business pathways and equity in the procurement process for small, local, and diverse businesses. As a member of the LA28 Community Business and Procurement Working Group, the Chamber is a leading provider of capacity-building initiatives with our OneLA Inclusive procurement program and Get In the Game coalition.
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L.A. City Council Budget Revision
The Los Angeles City Council voted 12-3 to pass a $12.8B proposed city budget for the 2024-25 fiscal year. In order to cover an anticipated multi-year deficit while preserving critical services, the city council moved to cut roughly 2000 vacant positions and shrink some of the city's services. Mayor Bass will now review the approved budget and decide to either sign or veto. In the current fiscal year, the city faces a deficit of $467M. Some of the most significant changes the council made to the mayor’s proposed budget include the restoration of 185 positions in the Department of Recreation and Parks and Bureau of Street Services to maintain critical service delivery, funding to ensure timely bill payments, homeless program funding for motel rooms, and revisions that will result in an increase to the reserve fund. The city is also considering a fee increase of 22% to the Los Angeles Sanitation Bureau’s Sewer Service Charge and a 6% increase to the ambulance fee from the Los Angeles Fire Department. These fee increases are designed to meet full cost recovery amidst fiscal challenges. The Chamber recognizes the difficult choices the Los Angeles City Council must make to balance the budget and will continue to monitor the city’s progress.
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U.S. Bureau of Labor Meets With Chamber
The Chamber's Health Care and Education & Workforce Development Councils hosted senior officials from the U.S. Bureau of Labor Statistics to learn about emerging workforce trends in the health care sector. The discussion included sector hiring challenges and potential resolutions through policy action. The U.S. Bureau of Labor Statistics is an apolitical, independent office within the U.S. Department of Labor and its teams across the country provide crucial economic data on a timely basis to keep business leaders informed on unemployment rates, consumer price indices, and other metrics. Learn more about their economic reports here.
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IDB Explores Latino and Caribbean Impacts in L.A.
A recent study by the Inter-American Development Bank (IDB) and its BID for the Americas program explores the transformative influence of the rapidly growing Latino and Caribbean community in the United States, both demographically and economically. The study includes a case study examining the community's impact and their contributions to Los Angeles. Learn more about the IBD's work and read the study here.
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2024 Pacific Council Gala Honors Dr. Jerrold D. Green
The Pacific Council is an independent, non-partisan organization dedicated to global engagement. The Chamber congratulated Dr. Jerrold D. Green, President & CEO, for his 15 years of service at and retirement from the Pacific Council. The special evening was hosted at The California Club in Downtown Los Angeles. See a photo recap of the evening here.
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L.A. Regional Small Business Summit
Join us at the upcoming County and City of Los Angeles Small Business Summit on May 30. This free event aims to help small businesses recover, grow, and thrive by bringing together the region's top business resources, services, and programs all in one place. The event will feature panel discussions and a resource expo with public and private providers of free business support. Reserve your spot here.
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Venmo Small Business Grant
Venmo is offering Small Business grants of up to $20,000. Whether you need funds for new equipment, marketing, or expansion, this grant could help take your business to the next level. For more details and to apply, visit here by May 31, 2024.
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AAPISTRONG Restaurant Fund
The AAPISTRONG Restaurant Fund, made possible by the Grubhub Community Fund, is an initiative designed to support Asian American, Native Hawaiian, and Pacific Islander-owned restaurants nationwide. The fund offers assistance to under-resourced restaurants dealing with supply chain disruptions, increased inventory costs, and workforce development challenges, providing up to $25,000 in support. Learn more about the fund here.
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California Supreme Court Hears Arguments on Prop 22
This week the California Supreme Court heard arguments on Castellanos v. California, an appeal to Proposition 22. This law, supported by nearly ten million voters in 2020, grants independent app-based workers the right to flexible work opportunities and an earnings guarantee, along with benefits. In 2023, the California Court of Appeals upheld the validity of Proposition 22 and reversed a lower district court's 2021 judgment ruling the law unconstitutional. A ruling is expected within 90 days. If the case is dismissed, gig companies would be subject to Assembly Bill 5 (AB 5), passed in 2019, which could significantly alter the companies’ business models, potentially requiring them to pay employment taxes for their estimated 1.4 million workers across the state and provide additional benefits, such as sick pay, overtime, and occupational accident insurance beyond the $1 million coverage limit under Proposition 22.
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Celebrating AAPI Heritage Month
We're celebrating Asian American and Pacific Islander (AAPI) Heritage Month by proudly highlighting the impactful contributions of our AAPI community. This week, we recognize Joone Kim-Lopez, General Manager and CEO of the Moulton Niguel Water District, which provides water, wastewater and recycled water services to six cities in South Orange County. Kim-Lopez serves on various boards, and before her career in the water industry, Kim-Lopez was a police officer for the City of Pasadena, where she received the Silver Medal of Courage for valor under fire.
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COUNCIL MEETINGS & EVENTS
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Edelman Trust Barometer: Innovation in Peril
Wednesday, May 29, 11:30 a.m.
COMMUNITY EVENT
Join us for a presentation of the Edelman Trust Barometer, and an expert panel discussion exploring how business and industry can lead on innovation while working in partnership with the public sector to increase trust in a rapidly changing society.
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Pancakes & Politics
Friday, June 7, 8:30 a.m.
MEMBER ONLY EVENT
Join us for the next installment of Accenture Pancakes & Politics, featuring Michael Martinez, Chief Deputy Commissioner from the California Department of Insurance. Pancakes & Politics provides Chamber members with opportunities to network with business leaders and elected offices who influence policy issues important to the Los Angeles region.
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Government & Fiscal Affairs Policy Council
Tuesday, June 11, 10.30 a.m.
MEMBER ONLY EVENT
Join the Government and Fiscal Affairs (GFA) Policy Council to hear presentations on three tax-related ballot measures that have qualified for the November election.
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Los Angeles Area Chamber of Commerce
350 S. Bixel Street
Los Angeles, CA 90017
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