As Vice Chairman of Jobs and Economic Recovery I realize in times of economic adversity there should be no higher priority for government than to find out how it can best help get businesses back on track towards job creation. This means finding the source of the problem, determining the best solution, and moving forward with determination and a solid plan. To date this has not happened.
As our federal government continues its experiment in a jobless recovery, it’s crucial for California to not make the same mistakes. The recent report on the cost of regulations on California business, which was delivered to the Governor’s office by the Small Business Advocate, gives a broad overview of all that state government has done to make things harder on businesses and working families, costing us 3.8 million jobs, hundreds of billions in costs to California businesses, and even billions lost in state revenues as a result of overregulation. In other words, government over regulation, is crushing the hopes and dreams of millions of California families..
These are astounding truths that most business owners and working families already knew. I have personally held hearings with business leaders asking for their own accounts of how they were mistreated by state government. To hear in their own words how they had been practically chased out of our state by predatory and overzealous by our own regulatory agencies was disheartening to say the least..
While the report revealed what we already knew about the damage state government is doing to business, the report did not go far enough. It opened the door to more questions that must be answered. What are the specific costs caused by regulation in California and on which industries? How much more damage is caused by allowing regulatory agencies to keep the fines they levy on businesses? Should the fines redirected to the general fund? Shouldn’t we evaluate the economic benefits of sunset clauses on all regulations imposed on the business community? Many of these regulations, due to new technology have been out dated, all the while regulatory agencies still use them to continue to fine businesses.
While addressing these subjects, I believe we need to seek stronger oversight on our state’s regulatory agencies. When these agencies become overzealous and take their duties too far, the people need a way to rein them in. Those who find themselves the victims of regulatory agencies need a process by which to protest the charges made against them.
The authors of the report, Sanjay B. Varshnay, Ph.D and Dennis H. Tootelian, Ph.D, both of CSU Sacramento, have agreed to delve further into California’s regulatory morass and provide better insights. Governor Schwarzenegger has also expressed an interest in learning more. The time has come to authorize a new commission on the lasting effects of over regulation on business’s and job creation. this matter, and I call upon the Governor to do so right away.
Our state cannot be timid in charting a new course towards economic recovery. It will take bold action and a willingness to admit that our Legislature’s current policies are destroying the lives of our state’s citizens.
Because of our over regulatory zeal, there is no money for schools, environmental mitigation, public safety, fire safety and infrastructure.
This action must quickly come from the Governor’s office, and our legislature .A regulatory commission must be formed before Sacramento’s over regulation, becomes our strangulation.