Yesterday, a coalition of employers from a wide spectrum of industries — including the manufacturers — deeply concerned about California’s economy delivered to legislators and the governor their recommendations for policies to support job growth and improve state finances.  

California is dependent on income, sales, corporate and property tax for its general fund dollars.  More than 50 percent of the general fund is dependant on income tax alone.  Our government programs survive on profitable businesses employing a high-wage workforce.  With the country’s third worst unemployment rate (8.4 percent), and few growing sectors outside government services, the state will not get out of the current crisis without improving the business climate.

These recommendations by a very diverse group of industries are meant to create a springboard for the state’s economic recovery and change the legislature’s attitude toward a healthy business climate.  Without real incentives — like the one Tesla Motors received back in June — and long term certainty in California, we will not see the growth that is mandatory for our recovery.

The manufacturers are firmly behind this growing effort, and this group — titled “California Businesses for Economic Recovery”– will not stop advocating for the collective proposals now and in the future.  While each proposal has a different value for individual organizations, we all agree that the combined list deserves serious attention.

Key points for lawmakers and media to consider as impetus for the listed recommendations:

•    The uncertainty of California’s regulatory and fiscal environment makes it almost impossible for short and long term business growth
•    Taxes, fees, mandates and regulations are currently enacted without considering their cumulative and dynamic impact
•     Industries such as high tech, manufacturing, entertainment and agriculture are being lured away by Nevada, Arizona and other regions
•    Business costs in California are 23 percent higher than the national average
•    California’s unemployment rate (8.4%) is third worst in the country and at its highest level since the early 90’s

Recommendations titles:

•    Delayed sales tax exemption
•    Design build
•    Eliminate corporate penalty
•    Employment training panel
•    Energy infrastructure Development
•    Flexible workweek/alternative schedules
•    Greenhouse gas emissions AB 32 and CEQA
•    Homebuyer tax credit
•    Infrastructure bonds
•    Meal and rest period clarification
•    Public private partnerships
•    Research and development tax credit
•    SB 375 land use and transportation bill clean up
•    Tourism tax repair

See cover letter to legislature
See details of proposals
See press release
See economic recovery two-pager


    * AeA
    * American Council of Engineering Companies
    * Antelope Valley Board of Trade
    * Assn. of Destination Management Companies
    * California Business Properties Assn.
    * California Building Industry Assn.
    * California Grocers Assn.
    * California Independent Petroleum Assn.
    * California Manufacturers & Technology Assn.
    * California Restaurant Assn.
    * California Retailers Assn.
    * California Space Authority
    * California Trucking Assn.
    * Chemical Industry Council
    * National Federation of Independent Business
    * Santa Barbara Technology & Industry Assn.
    * Technology Council of Southern California