BUDGET BRINKSMANSHIP

With the threat of issuing IOUs next week looming large, both Houses of the Legislature took a run at doing something about the budget. On Wednesday, the Democrats ran a what is known as a “straight drill” in which they put up a budget to their liking, hoping to score points with their constituencies, knowing full well it was doomed to fail.

However, on Thursday, in a rare unified effort, the Assembly voted without dissent on a number of measures designed to provide stopgap funding to avoid running out of cash.

Senate Republicans, however, were not amused. "This is the second day of this exercise," said Senate GOP leader Dennis Hollingsworth (R – Murrieta). "Yesterday we were here debating an $11 billion fix for a $24 billion problem. Today we're debating a $5 billion fix for a $24 billion problem.

“Furthermore, it relies on more than $13 billion in tax increases and gimmicks that do not fix the structural budget deficit. Voters clearly told us they want a responsible and credible balanced budget. This proposal would create an even bigger problem down the road and the Legislature will have failed the people of California yet again,” said Hollingsworth.

The Governor is reportedly in agreement with Senate Republicans asking the Democratic majority of both Houses to fix the budget problem in one fail swoop. They are pushing for a complete $24B solution without ANY NEW TAXES.

Both houses are scheduled to meet again today.

BUSINESSES ON TAXES: ‘ENOUGH IS ENOUGH’

BOMA California is a proud member of a California Chamber of Commerce-led coalition waging a campaign to educate the public that additional taxes are being considered in the state Legislature and that adoption of those proposals will have adverse consequences for the economy and jobs.

“The Legislature of California already raised taxes on Californians for $12.5 billion a year. Enough is enough,” says CalChamber President and Chief Executive Officer Allan Zaremberg in one of the videos prepared by the Californians Against Higher Taxes coalition.

The coalition of taxpayers, large employers and small businesses, chaired by Zaremberg, also is continuing the radio ad campaign launched last week to raise awareness of the harm more taxes will do to California families, jobs and the economic recovery.

Click here to read more about the campaign.

BUDGET BILLS AVAILABLE FOR PUBLIC TO VIEW

As hard as it is to believe in this day and age, especially with all the “transparency” rhetoric that is freely spewed, your ability to see the actually language of these budget deals are actually very limited until after the fact. During these long budget debate days, language that is being voted on is many times handed out to Members of the Legislature while they are on the Floor hours or minutes before they are supposed to vote.

In an effort to promote “Legislative Sunshine,” Senate Republican Leader Dennis Hollingsworth has started making budget language available to the public by posting it to his website. Click here to read the budget documents.

BUDGET 101

In a very simplified but actually very helpful and accurate tutorial, the Merc has put together a “Budget 101” informational piece that you may find interesting: http://www.cbpa.com/documents/Statebudget101.pdf
 

CALL TO ACTION! INDEPENDENT CONTRACTOR TAX WITHHOLDING

Last week, the Budget Conference Committee passed by party-line vote a series of tax proposals by Democrats that will be extremely harmful to employers and the economy.

Two of these proposals would impose a costly new mandate on ALL employers to withhold and remit to FTB 3% of all payments made to independent contractors (outside businesses providing goods/services). For independent contractors where there is an issue with their taxpayer identification number, an additional 7% withholding would be required (for a total of 10%).

This is a particularly bad idea because it would force struggling small businesses to loan money to the state. Withholding accelerates tax revenue to the state or collects revenue that will have to be refunded – equivalent to a low interest loan on the backs of small businesses. The proposal would also create a costly new mandate for private and public sector employers who use independent contractors and thus discourage employers from hiring small businesses.

At a time when our state unemployment rate is approaching the highest level ever, the imposition of a new cost burden on private and public sector employers who use independent contractors, and the threat to small businesses created by the proposal, run counter to our need to encourage economic recovery and stimulate job growth.
We are encouraging members to call the Legislature to explain why this burdensome proposal does not make sense and hurts businesses. Click here for a coalition letter that you can send.

NEW LAW REQUIRES DISCLOSURE OF LICENSE ID NUMBER

*** If you are a licensed real estate agent in the State of California you must be aware of this new law:

On July 1, 2009, all real estate licensees will be required to follow newly mandated statewide disclosures. Sponsored by the California Department of Real Estate (DRE) and enacted by SB 1461 (Negrete McLeod; D-Chino), the new law requires a real estate licensee to disclose his or her DRE license number on all "solicitation materials intended to be the first point of contact with consumers" and on real property purchase agreements when acting as an agent in those transactions.

The law states that a licensee must disclose his or her license identification number on purchase contracts, business cards, stationery, advertising fliers, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer. The bill excludes an advertisement in print or electronic media and “for sale” signs.

The DRE claims the disclosure is necessary due to the fact that with over 500,000 licensees in California, many with the same or similar names, it is sometimes difficult for consumers and licensees alike to verify the license status of those with whom they are dealing.

GREEN BUILDING STANDARDS 2009 – FEEDBACK NEEDED

***LAST CALL FOR COMMENTS***

In an effort to promote sustainable buildings, California last year became the first state in the nation to adopt a statewide Green Building Code. Known as CalGreen, it is already being updated. Your input is critical.

Your analysis and feedback is needed on the proposed changes for non-residential properties. To read the proposed changes for California Green Building Standards Code, Part 11, Title 24 -- Commercial, Industrial, and Retail Real Estate, click here.

It is very important that members of our industry read these regulations and identify issues that members of the Building Standards Commission should consider. We will compile industry comments and provide written and verbal testimony. Please send any and all comments by replying to this email or sending directly to Matthew Hargrove. Comments are due to CBPA by no later than Wednesday, July 1.

BOMA CALIFORNIA 2009 CALENDAR

JUNE 2009

June 28-30—
BOMA INTERNATIONAL ANNUAL CONFERENCE
Philadelphia, PA

NOVEMBER 2009

November 5—
BOMA CA BOARD MEETING & ELECTION OF 2010 OFFICERS
Meritage Hotel, Napa, CA
11:00 a.m. - 2:00 p.m.

 November 5-6—
COMMERCIAL REAL ESTATE STRATEGIC ISSUES CONFERENCE
Meritage Hotel, Napa, CA