Keep L.A. the Entertainment Capital of the World
Each year, the film and television industry generates more than $40 billion in economic revenue in Southern California. We applaud the L.A. City Council for taking action on a series of film production incentives last week. However, they have yet to take action on the region’s largest, most impactful film retention project — NBC Universal’s Evolution Plan.
NBC Universal’s Evolution Plan will establish Los Angeles as the company’s global headquarters for film and television production. This is an economic development opportunity that other cities and states would welcome with wide-open arms. The project will create 31,000 immediate construction jobs and 12,000 new permanent jobs. It is also estimated to deliver $26 million in tax revenues each year. In this economy, these numbers alone should be enough to warrant the prompt attention of our elected officials.
Transforming a Community at the Waterfront
Green growth is finally becoming a reality at our region’s ports. Just last week, the Clean Truck program celebrated its first anniversary. Environmental Protection Agency (EPA) Administrator Lisa Jackson announced federal grant funding for cleaner cargo-moving equipment at the Port of Los Angeles. And after nearly a decade of planning and debate, the Los Angeles Harbor Commission approved a $1.2-billion project to transform the San Pedro waterfront into a vibrant commercial and outdoor promenade expected to attract thousands of residents and tourist each year.
The San Pedro Waterfront Redevelopment project is a port makeover which will bring a needed economic boost to our region, along with a green and open waterfront for residents and visitors to enjoy. The 27-acre project will deliver an eight mile promenade packed with a 75,000-square-foot conference center, 300,000 square feet of commercial space, new arts and cultural attractions, a trolley car line, bike trails and walking paths and a vastly upgraded recreational marina – all built to the highest environmental standards.
How Much Does That Law Cost?
There are 250,000 fewer Los Angeles County residents with jobs today than there were one year ago. The state’s unemployment rate rose to 12.2 percent in August and L.A. County rose to 12.3 percent, according to the numbers released Friday. All but 5,400 of those jobs were private sector employees.
Mayor Antonio Villaraigosa stated in his State of the City address on April 14 and his inaugural on July 1 that creating jobs should be the city’s highest priority. He stated that the focus of the city’s efforts must be on promoting economic recovery. The L.A. Area Chamber applauded Mayor Villaraigosa for his renewed commitment to economic development and since then has been working with city officials to help improve the business climate and stimulate business and job growth. The unemployment numbers released Friday indicate that a dramatic effort needs to be initiated.
One of the biggest problems in Los Angeles is that we make decisions without asking: “How much does that law cost? How will it impact jobs, business and tax revenues?” Every law that elected officials pass either helps or hurts business — and we think these questions should be at the heart of every policy deba,1te.
Time to Pick the Low Hanging “Grapefruit”
The Free Trade Agreements (FTAs) with Colombia and Korea are two immediate opportunities to create jobs and economic growth across the nation. And no region will benefit more from free trade with these two nations than Los Angeles. Unfortunately, more than two years after both agreements were signed by negotiators, neither has been ratified by Congress due to political concerns about labor and environmental issues in these nations.
Colombia is the United State’s fourth-largest trading partner in Latin America and the largest market for U.S. agricultural exports in South America. Just a few years ago, U.S. growers exported $11.4 million in fruits and vegetables including grapefruit to Colombia. Free trade with Colombia will help create more exports and more jobs here at home.
Despite the fact that Colombia has made dramatic progress in improving security for its citizens, U.S. officials contend that Colombia must do more to address issues of violence against union leaders. Everything possible should be done to protect Colombian citizens, but holding trade hostage only hurts workers and legal businesses in both nations.
Victory for Commuter Safety
The Southern California region won an important victory for commuter safety last week. Through the work of the L.A. Area Chamber, Mobility 21 and Rep. Lucille Roybal-Allard (D-Los Angeles), Congress is moving closer to providing greater funding for train anti-collision technology. That’s good news for passengers throughout our region.
All of us remember the deadly 2008 Metrolink train crash, which cost 25 lives and brought the issue of rail safety to the forefront for many Americans. Many experts believe that this crash could have been averted had the rail system been equipped with state-of-the-art safety technology known as Positive Train Control (PTC). That technology helps prevent train-to-train collisions, overspeed derailments and other accidents that can result due to human error.
There was an immediate uproar to secure more PTC funding after the crash, but political focus has shifted largely to matters of economic stimulus and recovery in recent months. The L.A. Area Chamber applauds Roybal-Allard and Rep. Adam Schiff (D-Pasadena), who refuse to give up on rail safety and have paved the way for PTC in our region.
A Safe Haven for Summer
Urban cities and police departments across the nation are bracing themselves for the peak of summer – traditionally the most violent time of year. Here in Los Angeles, the gang capital of the world, youth in many at risk communities will have a safe place to spend hot summer nights thanks to the Summer Night Lights program made possible by the city, community groups and local businesses.
This year’s program will keep 16 city parks open after dark with organized activities such as sports, arts and films. All parks are located in the City of Los Angeles’ Gang Reduction and Youth Development zones and include intervention workers to help maintain cease-fires in the surrounding communities. Now in its second year, Summer Night Lights is expanding to include job opportunities for at least 10 young adults at each site to help develop and staff activities.
Carpe Diem on Jobs!
It should come as no surprise that Los Angeles has one of the highest unemployment rates in the nation — 11.5 percent, nearly two and half points higher than the national average. During the past year, more than 250,000 private sector jobs have been lost in L.A. County. But even before the recession, the L.A. five-county area has lost over 70 firms and nearly 16,400 jobs due to corporate relocation since 2005 according to the Los Angeles County Economic Development Corporation. Even jobs in L.A.’s flagship industry — movie and television production — are down 13,800 compared to last year, largely due to runaway production as noted in Saturday’s Los Angeles Times. Now more than ever, we must improve L.A.’s business climate or risk losing the foundation that supports our jobs and livelihoods.
The L.A. Area Chamber and other business groups have long argued that L.A.’s business climate, unlike our weather, is not conducive to business growth and job creation. As one local executive wrote in the Wall Street Journal this weekend, Los Angeles “is fast becoming a job-killing machine.” It should pain every elected official and resident of Los Angeles to read these words. Unfortunately, the proof is in the pudding. L.A.’s business tax is among the highest in the state. The city’s permitting process is lengthy and cumbersome. Business regulations are frequently changed, making it difficult for businesses to plan for the future.
One Opportunity for the State Legislature to Shine
Even if the state Legislature cannot agree on a budget, it can still pass a single bill that would save 65,000 jobs in Southern California and create many more. SB 696 would overturn a moratorium on required permits issued by the South Coast Air Quality Management District (SCAQMD) and is the key to unfreezing more than 1,100 building and construction projects in the region. Business, labor and municipalities are united in support — now we need to fast-track SB 696 to Gov. Arnold Schwarzenegger’s desk.
Under Southern California’s strict air quality rules, businesses and governments adding new equipment must prove a reduction in air pollution. The SCAQMD maintains a special reserve fund of offset credits for projects that are considered an essential public service, research program or innovative technology.
Unfortunately, a lawsuit by an environmental group eliminated that credit bank, halting a wide-range of projects in the region by businesses and governments like the Whittier Police Department, the Long Beach Airport, St. John’s Hospital in Santa Monica and many others. Now, providers of essential services, small businesses and others will have to pay up to $4 billion to obtain emission reduction credits — if they are available at all.
Untie the Hands of California School Districts
The L.A. Area Chamber, together with nearly 100 of our members, recently traveled to Sacramento on our annual advocacy trip with an agenda to recover, reform and rebuild California. Budget issues and the state’s fiscal crisis are top of mind for all lawmakers, but reform is about much more than balancing the budget. It’s about encouraging business growth and investing in today’s students to ensure a competitive workforce for tomorrow’s economy.
California schools are facing drastic budget cuts that will impact every district, every school and every classroom. Having already cut more than $5.15 billion (or $860 per student) in K-12 education expenditures, our school districts still face an additional $6 billion (or $1,000 per student) in cuts for the 2010-11 fiscal year. Like the state Legislature that has been hindered in balancing the budget due in part to past voter-approved initiatives, our school districts are limited by the California Education Code in the actions they can take to effectively manage resources from the state. Simply put, their hands are often tied at a time when budget resources are limited and must be redirected to best serve the needs of students.
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.”