CELEBRATE FREEDOM/HONOR VETS THIS MEMORIAL DAY

As you enjoy the long weekend, please take the time to reflect upon the many sacrifices that American men and women have made to allow us to continue to enjoy the freedoms we have on this Memorial Day.
 

SPECIAL ELECTION RESULTS. OUCH!

By a 2 to 1 margin, California voters resoundingly rejected a batch of propositions meant to help legislators and the Governor close a $21 billion budget deficit. Question, is what is next?
 

SPENDING IGNORED – SPLIT ROLL ON THE TABLE AGAIN

Just because you are not paranoid does not mean they are not coming after you…

“The political forces for split roll are in place. A recent Field Poll survey found that a resounding 61 percent of Californians approve of split roll if it means creating more property tax equity between commercial property owners and individual homeowners. Split roll is supported by a variety of California organizations, including the League of Women Voters and Sacramento legislators from both sides of the aisle have made similar proposals in recent years. Twenty-three other states have already implemented a split roll system, reducing the tax burden for homeowners and combating unfair corporate tax loopholes.

“It's time for California to follow suit and reform a system that is bankrupting our state. I know the longer we wait to reform Prop. 13, the more our state will fall behind. The need for reform has never been more urgent.”

The preceding are the words of the Assessor-recorder for the City and County of San Francisco. He has declared that too much spending is not the problem with state finances, but that you don’t pay enough taxes. Specifically the producers and employers in our state, businesses should pay higher property taxes. Click here to read the full op/ed.
 

WHAT DID VOTERS REALLY SAY ABOUT RAISING PROPERTY TAXES? No!

The SF County Assessor-recorder’s number didn’t square with what we remembered the latest field poll to say, so we did painstaking research to find out the truth (well, we actually just Googled it and found the numbers immediately…).

Below is a link to the most recent field poll that asked the question of solving the budget deficit through raising property taxes (April 30, 2009 – three weeks ago). Only 37% of respondents backed raising property taxes, while 58.2% were opposed. If you dig deeper and look at the statistical tabulations (second link), among “likely voters,” support for the idea drops even further to a mere 30.9% in favor while a whopping 65.5% are opposed to raising property taxes.

This Field Poll is from 22 days ago. Voters said at that time they do NOT want to raise commercial property taxes, and that opinion was resoundingly confirmed by Tuesday election results.

Field Poll 30 April 2009 Summary – Voters Resoundingly Oppose Raising Property Taxes

Field Poll 30 April 2009 Statistical Tabs – See Question 23 (k) on page 86

When a dynamic analysis is used, raising property taxes on business just does not make sense. See below for details on a study that does just that -- analyzes the likely unintended consequences of a split roll property tax. You can’t simply increase the tax percentage and believe that revenue appears without any negative consequences, like businesses going out of business and not paying any property taxes at all; let alone payroll taxes, paying city fees and taxes of all kinds, providing paychecks to people, and generating retail sales that produce sales taxes.
 

SPLIT ROLL TAX STUDY SHOWS IDEA HURTS ECONOMY

Talks of massive cuts to state government notwithstanding, the more skeptical among us believe that talk of higher taxes on business will gain momentum directly proportional to the number of protests held in front of the Capitol do decry the dole being reduced. The story above is the first of many you will see in the near future. With this renewed activity to raise your property taxes, we want to make sure you all are aware of a recent study that examines the potential economic impact of a split-roll property tax, taking into account how a split roll would affect the behavior of individuals and businesses who own commercial property. Completed last fall and distributed to policymakers in California, click here to read the study entitled "The Economic Effects of California Adopting a Split Roll Property Tax."

BOMA California is a member of Californians Against Higher Property Taxes, whose mission to educate the public and policymakers about the devastating impacts of higher property taxes. Although higher property taxes are very unpopular and voters have rejected them time and again, some policymakers and advocacy groups often push the issue as a way to raise additional tax revenue.

The study shows that such proposals for property tax increases will only hurt California consumers, seniors and taxpayers, and further damage our state’s struggling economy.
 

GOVERNOR ISSUES STATEMENT ON HIS BUDGET PROPOSAL

Following the election, Governor Arnold Schwarzenegger issued the following statement on his budget proposal:

“Based upon information I gathered in meetings I held while in Washington D.C., discussions with the legislative leaders, and the will of the people who said loudly and clearly in Tuesday’s election that they want Sacramento to live within its means, yesterday I directed my Department of Finance to bring me additional options to cut state spending so that we can eliminate the need to seek borrowing in the form of a revenue anticipation warrant in the revised state budget I have proposed.”
 

GOVERNOR PROPOSES $5.5 BILLION IN NEW CUTS

Shortly after the above statement was issued, the Governor released a new round of budget cuts with an additional $5.5 billion on the list. Under this proposal, Healthy Families and CalWorks are drastically reduced. The administration said the governor's plan also would phase out all General Fund support for the state parks system, and gradually eliminate grants to college students through the Cal Grants program. Click here for the full story.

SENATE REPUBLICANS UNVEIL ROADMAP TO RESTORE CALIFORNIA

Senate Republicans have gone on the offensive and have unveiled a plan they say will get Californians back to work, reform the budgeting process, put more money into California classrooms and improve the anti-business tax and regulatory climate in the state.

“Senate Republicans are listening. We heard the voters of California. They clearly want us to solve these problems. That’s what they elected us to do, not keep reaching into their pockets to pay for our mismanagement,” said Senate Minority Leader Dennis Hollingsworth. Click here to read the full story.
 

“JOB KILLER” LIST RELEASED BY THE CALCHAMBER

And believe it or not, through all of this financial trouble, the Legislature continues to crank out bills. Luckily, business groups have not lost focus on the undercard events. The California Chamber of Commerce (CalChamber) released its annual list of “job killer” legislative measures, calling attention to the negative impact the proposed measures would have on California’s competitiveness and job climate if they were to become law. The Job Killer list is a very effective advocacy tool as a vast majority of bills that have found their way on the list have either died in the process or been vetoed by the Governor.

The CalChamber is very good about consulting with members and allied groups to make sure the list is fully vetted by the business community and truly represents the “worst of the worst” bills. BOMA California appreciated the opportunity for input and opposes all measures on the list.

Click here to read the 2009 Job Killers list.
 

CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT 2009 -- RESERVE YOUR PLACE NOW

The California Commercial Real Estate Summit (CCRES) will be held in Sacramento on June 9 & 10, 2009. This event is the one time of year that industry leaders converge on California's Capitol to discuss with policymakers issues impacting commercial real estate. The summit will give you an opportunity to meet industry leaders from across the nation, high-level staff from Governor Schwarzenegger's Administration, and California State Legislators.

For hotel accommodations, please contact the Hyatt Regency directly, 1-800-233-1234, and ask for the "CBPA" block of rooms.

The Commercial Real Estate Summit is organized by California Business Properties Association (CBPA) which is the recognized voice of all aspects of the commercial retail industrial real estate industry in California and is the designated legislative advocate for: International Council of Shopping Centers (ICSC), the California Chapters of the Commercial Real Estate Developers Association (NAIOP), Building Owners and Managers Association of California (BOMA Cal), Retail Industry Leaders Association (RILA), Institute of Real Estate Management (IREM), California Downtown Association (CDA), Commercial Real Estate Women (CREW), the Association of Commercial Real Estate – Southern California (ACRE) and the Certified Commercial Investment Members Institute (CCIM).

Click here for all the details.
 

BOMA CAL 2009 CALENDAR

JUNE 2009

June 9-10—
CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT (CCRES)
Sacramento

NOTE: The CCRES is also known as "BOMA California Legislative Day." Members are encouraged to participate in this two day event by clicking the link above to register. CBPA events are industrywide events open to all members.

June 10—
BOMA CALIFORNIA BOARD MEETING
Following the California Commercial Real Estate Summit (CCRES) Events
Hyatt Regency, Sacramento
1:30 p.m. - 4:00 p.m. ***NOTE TIME CHANGE***

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. - 3:00 p.m.

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