Chambers at Odds Over Endorsement Of Bond Funding

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The Los Angeles Area Chamber of Commerce is bucking the trend among some other major business groups, supporting a nearly $10 billion high-speed rail bond measure on the November ballot and also supporting a $7 billion school district bond.

In all, the chamber’s 90-member board voted last week to support more than $22 billion in bonds at both the state and local levels along with a half-cent increase in Los Angeles County’s sales tax that would generate $40 billion for local transportation projects over the next 30 years.

These supporting votes came despite the fact that both state and local governments are facing massive deficits.

“The issues on this ballot are like a leaky roof that needs fixing. It will do no good to delay these initiatives, because delay will only lead to greater costs down the road,” said chamber Chief Executive Gary Toebben.

For the most part, the Los Angeles Chamber agreed in its ballot positions with both the California Chamber of Commerce and the Valley Industry and Commerce Association. All three groups support a state redistricting measure (Proposition 11), $980 million in bonds for children’s hospitals (Proposition 3) and a $900 million bond measure to help veterans purchase homes and farms at low interest rates (Proposition 12).

The groups also oppose Proposition 7, which speeds up timetables for the state’s utilities to convert to renewable sources of energy. They argue the stricter requirements would mean greater costs for the utilities.

But the chamber split with the other business groups on the $9.9 billion high-speed rail bond. VICA and the state Chamber say it’s too expensive at a time of mounting budget deficits and that the money would be better spent on other transportation projects.

However, the L.A. Chamber said the rail line would create up to 160,000 construction jobs and lead to a 2.5-hour travel time between Los Angeles and San Francisco.

The Los Angeles chamber also split from VICA on the $7 billion bond for the Los Angeles Unified School District (Measure R).

The L.A. Chamber’s Toebben said that older schools need investment just like newer ones have received. “We cannot become a city of have and have-nots when it comes to school facilities,” he said.