Progress Slow on Post 9-11 Plan to Spark Economy

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Progress Slow on Post 9-11 Plan to Spark Economy

By HOWARD FINE

Staff Reporter

Organizers of last November’s summit on the post-Sept. 11 economy claim that progress has been made on a broad range of issues, according to a report being released this week by the Los Angeles County Economic Development Corp.

But much of the progress has come from speeding up or expanding projects and programs that already had been in the works.

For example, the state earmarked up to $10 million in worker training funds for workers and businesses directly affected by the Sept. 11 terrorist attacks. But in the weeks immediately following those attacks, Gov. Gray Davis and other state leaders promised such aid, well before the Nov. 1 economic summit.

Also, several other programs, especially in the tourism and marketing area, seemed to have limited effect. The “Shop L.A.” program launched in mid-January, for example, didn’t result in significant year-over-year boosts in sales at local stores. And the “Dine Hollywood” campaign launched last month only resulted in a slight uptick in business at the dozen or so participating restaurants.

With the exception of a few small steps such as the City of Los Angeles improving its record of timely payments to vendors there’s been little evidence of follow-through.

“These are all good steps to be taking, especially in a slow economy, but one must remember that these are steps only at the margins,” said Esi Adibi, director of the Anderson Center for Economic Research at Chapman University. “Sure, some businesses and individuals will benefit, but there are much larger forces out there driving the regional economy, like international trade and the performance of the national economy.”

Now that the national and local economies seem to be showing signs of improvement, there’s another concern: that the political will to follow through on the summit recommendations may dissipate.

“No question we’re concerned it may be all too easy now to let this all fall to the wayside as it appears the economy is returning,” said Lee Harrington, the EDC’s president and chief executive.

At least $5 billion worth of public works projects are on various lists for fast-tracking, from new schools to repaving of roads. But the only specific project that has been completed is the opening of a freeway interchange expansion project in Lancaster.

The report also cited some $12 million in Los Angeles County construction projects that have been successfully accelerated, athough it did not give specifics.

With local government budgets operating in the red and the need for economic stimulus appearing to ease, local governments may be tempted to go back to “normal” scheduling on public works projects.

“When you fast-track a project, you usually incur more overtime costs, which drives up the overall project cost,” Adibi said. “Once the economy starts rolling again, public agencies should end this fast-tracking. The work should still be done in a more efficient manner than it often is, just not with all that overtime.”

Adibi added that efforts to streamline permitting, train workers and offer business assistance should continue even after the economic recovery sets in.

“These things should always be done, regardless of the state of the economy. They can only help.”

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