Another year of double-digit unemployment, anemic economic growth forecasts, escalating costs, taxes and fees, regulatory uncertainty – all these issues are on the minds of California business owners as they prepare to vote Nov. 2. And while state lawmakers pat themselves on the backs for approving a budget 100 days late, business owners know Sacramento has done little to address the long-term economic and fiscal challenges that threaten our once-Golden State.
What does business want this election? Simple: We want Sacramento policymakers to stop tying our hands behind our backs with regulations, policies and self-interested maneuverings that are hindering our economic recovery, and instead give private-sector job creators the chance to do what we do best to get all of us back on track – TO CREATE JOBS.
If there is any doubt that business owners need some room, consider California now ranks more than halfway down Forbes’ list of the Best States for Business in 2010 at No. 39 – another notch lower from 2009. There’s the 2010 Kosmont-Rose Institute Cost of Doing Business Survey that found one-third of the nation’s 40 costliest cities are in California, deterring businesses from setting up shop here. And there’s the tally by Joseph Vranich, an Irvine-based business-relocation coach: So far this year, 158 companies have left California completely or redirected capital out of state – THREE TIMES the total for all of last year.
The Los Angeles County Business Federation, or BizFed – representing 70 top business organizations with more than 100,000 business owners providing nearly 2 million jobs – is urging business owners to take back control at the polls next week by supporting measures to help propel economic recovery though job creation, and reject snake-oil propositions that only continue to fuel the dysfunction.
Oppose Propositions 24, 25 and 27
While propositions on redistricting and the state budget may not seem to have much to do with business – business owners know different.
Cloaked in the appearance of “good government reform” – ostensibly lowering the legislative vote threshold for budget approval – Proposition 25 is a wolf in sheep’s clothing because it also would eliminate the referendum right of voters to force a vote to repeal bad legislation and would allow lawmakers to more easily enact certain types of taxes.
Proposition 24 doesn’t even try to hide its money grab by special interests seeking to overturn already approved tax breaks for business in order to plug budget gaps. BizFed believes Sacramento politicians should spend more time making the hard decisions needed to balance the budget, and not simply place the burden on business and force even more jobs out of California.
Meanwhile, Proposition 27 seeks to overturn the very will of California voters by eliminating the 2008 voter-approved Citizens Redistricting Commission – and putting control of redistricting back into the hands of self-interested lawmakers.
BizFed strongly opposes all three of these propositions as just more efforts to change the political rules of the game to benefit special interests, and maintain the status quo and political polarization in Sacramento that thwarts true change.
Support Propositions 20, 22, 23 and 26
Some say the definition of insanity is continuing to do the same thing over and over again and expecting different results. Well, it’s time voters stop that cycle in Sacramento by supporting propositions that empower us all.
Proposition 20 not only supports the voters’ voice in 2008 for a citizens panel to determine district boundaries for state lawmakers but expands it to congressional districts. Proposition 26 will make it tougher for Sacramento politicians to raise our taxes. And Proposition 22 will protect our local revenues and infrastructure funds from state raids, and send a clarion call to Sacramento: Stop taking our local money to make up for your inability to make tough budget decisions.
Finally, business believes wholeheartedly that we must protect our environment. However, in this current economic environment, we must FIRST protect our jobs. BizFed supports Proposition 23 as a sensible postponement of implementation of AB 32, the far-reaching climate-change legislation. While BizFed members agree AB 32 can protect our environment and spur development of a clean-tech industry, they also believe our overall economy needs time to recover first.
BizFed had hoped our state officials would have shown the leadership to postpone implementation of AB 32 until the economy recovers, but instead they have chosen to force voters to make that decision. To quote a well-known president, Proposition 23 is needed to send a message to policymakers that “It’s the economy, stupid.”
Business owners are worried about the state’s economic future and what Sacramento may do next year to raise taxes. This Nov. 2, BizFed is urging business owners, and all voters, to send a clear message to Sacramento to get its house in order, stop protecting special interests and help us create jobs.
David Fleming is the founding chairman, Thomas Flintoft is the chairman and Tracy Rafter is the chief executive of the Los Angeles County Business Federation, or BizFed.
