SACRAMENTO BUDGET UPDATE

The State is now $27 billion in deficit and issuing IOU’s. Both the State Senate and State Assembly have adjourned until Monday.
 

DIGGING THE HOLE DEEPER

Final tallies for 2008-09 from State Controller John Chiang show California spent $10.4B more than it took in. According to a press release from the Controller’s office, personal income taxes in June were $987 million below (-18.0%) estimates in the May Revision, and sales taxes were short by $154 million (-5.8%). Corporate taxes were $1.31 billion above estimates (41.2%). Click here for the full release.
 

PROPOSITION 13 ISN'T THE PROBLEM

Our good friend Joel Fox, President of the Small Business Action Committee, got some space to rebut the misinformation recently promulgated regarding Proposition 13 and the bad idea of Split Roll Property Taxation. In part he writes:

“Let's get the facts straight. Despite the cap instituted by Proposition 13, property taxes have increased dramatically in California. According to Board of Equalization data, property tax revenue has increased 800% since the measure passed in 1978 -- from $5.6 billion a year to $50 billion. Compare that with general fund revenue -- made up largely of sales, income and corporate taxes -- which has increased 500% over the same period.”

Click here for the full editorial.

GREENHOUSE GAS CEQA GUIDELINES UNDERWAY

The Natural Resources Agency received recommended amendments to the CEQA Guidelines for greenhouse gas emissions from the Governor's Office of Planning and Research. Public hearings on the Proposed Guideline Amendments are scheduled for August 18, 2009 in Sacramento and on August 20, 2009 in Los Angeles. Written comments will be accepted until 5:00pm on August 20, 2009. Click here for more information on how to participate.
 

WORKER’S COMP INCREASE AVERTED

Citing testimony that self-insured employers have been able to reduce overall workers' compensation costs, Insurance Commissioner Steve Poizner rejected a rate application from the Workers' Compensation Insurance Rating Bureau (WCIRB) to raise the Workers' Compensation Claims Cost Benchmark by 23.7 percent. While the Department of Insurance does not set workers' compensation insurance rates, an increase in the cost benchmark usually leads to workers compensation insurance premium increases, with small businesses and their employees feeling the brunt of cost increases. Click here for more information.
 

FEDERAL CLIMATE CHANGE LEGISLATION

The controversial global warming bill, the American Clean Air and Security Act of 2009, passed by a narrow vote of 219-212. Also known as the Waxman-Markey Bill, establishes an economy-wide mandatory cap and trade program administered through the EPA and would make American consumers poorer and the products they buy more expensive. A recent CRA International analysis, commissioned by the National Black Chamber of Commerce, determined that the federal cap-and-trade system outlined would reduce the national GDP by about $350 billion below the baseline level, cut net employment by 2.5 million jobs (and that’s even accounting for “green jobs”) and reduce annual earnings for the average U.S. worker by $390 by 2030. This adds a large burden to the State and all Californians. To see how the votes came down,          click here.
 

MANDATORY COMMERCIAL RECYCLING REGULATIONS

As a part of implementing the Mandatory Commercial Recycling measure outlined in the Climate Change Scoping Plan for the California Global Warming Solutions Act (AB 32), the CIWMB is hosting two informal workshops to solicit stakeholder feedback.

These workshops offer an informal opportunity to talk with CIWMB staff about issues related to design and implementation of this Mandatory Commercial Recycling measure. Representatives from the CIWMB will provide background information regarding this effort, including related legislation, related projects, and the overall timeline. CIWMB staff will be soliciting stakeholder input on a range of issues and conceptual regulatory language related to topics such as thresholds, exemptions, implementation, enforcement and costs.

This will impact your business. You are encouraged to attend or provide us with feedback on the proposals:

July 20, 2009
9:30 a.m. to 4:30 p.m.
Cal/EPA Headquarters
1001 I Street
Sacramento, California

August 6, 2009
9:30 a.m. to 4:30 p.m.
South Coast Air Quality Management District
21865 E. Copley Drive
Diamond Bar, California

MANDATORY COMMERCIAL RECYCLING LEGISLATION

The State Legislature is also considering several bills on this issue including AB 479 (Chesbro) and SB 25 (Padilla) which would create a statewide commercial recycling mandate. We have been opposing both measures, but recent amendments to AB 479 may remove our opposition. Please read and weigh in with your thoughts.
 

GRAYWATER SYSTEM REGULATIONS

On July 1, 2009, the CA Department of Housing and Community Development submitted an emergency rulemaking regarding "Graywater Systems" to the California Building Standards Commission (CBSC) for review and consideration at the Commission's July 30, 2009 meeting.

The documents submitted to the CBSC have been posted on HCD's website and are available for viewing here. Please note that updated documents, as they become available, will be posted to the link listed above as the emergency rulemaking process continues.

We are currently supportive of the regulations, but would like member review and input. If you have any comments regarding the regulations, please send prior to July 23 by simply replying to this email.

SOUTHERN CALIFORNIA ALLIANCE PROGRAM

On Tuesday, August 4, you are invited to learn about the current status of recent plans to locate an NFL team in the Los Angeles area and the huge investment in real estate needed to make this a reality. The Southern California Alliance Program, hosted by ICSC, will be discussing the intricacies of bringing an NFL football team back to the Los Angeles area, as well as the planning, design and development of a state of the art football/commercial/entertainment/retail destination complex. The meeting will be held on Tuesday, August 4, 2009, from 11:00am – 2:00pm at the Pacific Palms Conference Resort in The City of Industry. Click here for more information.
 

NORCAL CITY MANAGERS LUNCHEON

On Thursday, October 29, NAIOP is co-sponsoring the City Managers Luncheon with Lambda Alpha International at the Dante Club in Sacramento. Eight City Managers are currently scheduled to appear and more are expected. This event will be moderated by our own Rex Hime. Sponsorship opportunities are available. Click here for information.
 

BOMA CALIFORNIA 2009 CALENDAR

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