The
business community often complains about L.A. City Hall’s lack of
action to make Los Angeles more business friendly for job creators.
This week, I am pleased to extend congratulations to City officials
for their recent actions on five of the L.A. Area Chamber’s top
business and budget priorities.
On the jobs front, Mayor Antonio Villaraigosa and the City Council
approved a three-year tax holiday for all new businesses that open in
Los Angeles over the next 36 months. This incentive is especially
important for startups and small businesses, and could create more than
55,000 new jobs, according to a recent report by the USC Marshall School of Business.
At the same meeting, the Council approved a taxpayer’s bill of rights,
and voted to move forward with an independent economic analysis of
comprehensive business tax reforms. The reforms to be studied include a
60 percent reduction in the City’s gross receipts tax for businesses in
the highest tax category. The recommendations originated with the
volunteer Business Tax Advisory Committee appointed by Mayor
Villaraigosa and the City Council last year.
The Council also addressed two of the most politically contentious
issues at City Hill – public pension reform and contracting out
non-vital city services. During a lengthy conversation, City officials
confirmed the gloomy picture of L.A.’s pension liability and projected
that the City’s obligation for pensions and health care for retirees
would eat up more than one-third of the City’s general fund by 2015.
Finally, the City Council voted 9-5 to contract out the City’s
ambulance service billing and collections to a private firm. The fire
department and the City’s chief administrative officer both supported
the contract, since it will save money and would generate more revenue
through better delinquent collections.
Some of these actions will have an immediate impact, while others
represent a starting point. Collectively, they demonstrate that Mayor
Villaraigosa and the City Council have the power and the will to make
our City more business-friendly and fiscally responsible.
To Mayor Villaraigosa and the City Councilmembers who voted in support
of these actions, thank you for taking a major step forward on many
different fronts to encourage the creation of new jobs in Los Angeles.
We pledge to partner with you to see these important priorities over
the finish line.