Author: Bill Allen

Working for a leading California economic development organization, I am
often asked about the state of our economy and my thoughts on how we can
get it back on track. Clearly this is a top concern to citizens here in
California and across the country.

We’ve seen a lot of posturing on how to improve the economy and create
much-needed jobs from elected officials in Washington, DC as well as from
those campaigning for elected office last November. No question that with
sluggish job growth, a still-stressed economy and structural deficits as
far as the eye can see, our federally-elected officials must support
policies that spur business growth, stimulate the U.S. economy and
encourage private sector hiring.

Like their federal counterparts, our state officials need to enact
policies that support economic development and job growth. Similarly,
state leaders must also safeguard successful programs that have been
shown to generate jobs, reduce poverty levels and support local economies
– this must be part of any rational economic recovery program.

The future of the Golden State and the well-being of every Californian depend on a thriving economy. A robust state economy means well-paying jobs for workers, increased business development opportunities and sufficient funding for essential state services.

With an increasing number of businesses closing their doors and more workers losing their jobs, we have seen a precipitous decline in state revenues that has led to steep and abrupt cuts in everything from health care and education to prisons and infrastructure investment. With some of the highest state business and personal income tax rates, an overly burdensome regulatory environment, and a structurally dysfunctional state government that has recently been in budgetary gridlock, California is increasingly viewed as a place with an environment that is hostile to businesses, and as a consequence, the jobs – and tax revenue – businesses create.

With the state’s unemployment rate exceeding 12 percent, sustainable economic growth and job creation clearly must be our policymakers’ highest priorities. California has enormous economic capacity and potential, but we need to develop consensus around a statewide strategic plan for economic development that gets all the state’s economic regions to come together, invest and behave according to a shared vision for growing the economic pie and creating jobs.