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February 6, 2009

 

BOMA California Weekly
News >From Sacramento and Beyond

 

In This Issue:

RONALD REAGAN DAY

Today, February 6, 2009, is officially Ronald Reagan Day. Celebrate by reading the Governor’s proclamation making it so:

State of California Proclamation

In both of his Presidential Inaugural Addresses, Ronald Reagan spoke of heroes. He was not talking about the kinds we see in the movies, but about the kinds we see in our everyday lives: farmers, factory workers, doctors, entrepreneurs, families and others who work with a quiet devotion for the good of America and their fellowman. It was this same sense of devotion, service and faith in the decency of others and the ability of our country to overcome any challenge that likewise inspired Ronald Reagan.

Born ninety-eight years ago in a small town in northwestern Illinois, his will to serve saw him rescue swimmers as a young lifeguard, create training films as a member of the Army Air Corp during World War II and work as President of the Screen Actors Guild. In 1966, he was elected Governor of California, and in 1980, President of the United States. Both of these roles saw him come to office in times of great adversity, but his leadership left our state and nation better and safer places than they were before.

During our own times of adversity, I hope each of us can find in ourselves some of Ronald Reagan’s optimism and commitment to service. His was a spirit that crushed the Cold War, renewed our nation and faced an unknown future of Alzheimer’s disease with bravery. Letting that same spirit make a difference in our own lives and actions, is a fantastic and fitting tribute to this true American hero.

NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, do hereby proclaim February 6, 2009, as “Ronald Reagan Day”

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 5th day of February 2009.

STATE FURLOUGHS BEGIN

Hopefully with little to no irony, we transition to this… Today marks the first day that state workers do not come in to the office due to the Governor’s money saving strategy of furloughing the employees the first and third Friday of every month. We hope that the strategy works and helps the budget situation. However, we also urge the Air Resources Board to include the furloughs as a greenhouse gas early reduction measure under AB 32 since there were very few cars on the road in this morning’s commute to Sacramento!
 

LETTER: RED TAPE, TAXES KILL JOBS

Senator Bob Dutton (R-Rancho Cucamonga), Vice Chairman of the Senate Budget Committee and one of the main Republicans negotiating the budget provided this Letter to the Editor, which sums up the state of the budget:

Re "Governor becomes a Keynesian" (Capitol & California, Feb. 2): In Dan Walters' column, he accurately points out that the long-term economic recovery of California and the nation will be dependent on "turning around and producing growth in private sector activity."

While I support his argument, I find it interesting that the editorial pages of The Bee have been critical of Republican efforts to make sure that any budget deal includes lifting unneeded and restrictive regulations and red tape on California businesses. The red tape and burdensome regulations are causing California to have one of the highest unemployment rates in the country.

California is consistently ranked at the bottom when it comes to providing a "business friendly" environment. California is No. 1 in the nation in personal income tax rates, capital gains tax rates, and the amount individuals and businesses pay in gas and diesel tax.

With unemployment increasing every month, thousands of private sector jobs are being lost daily, and California facing a $42 billion deficit, it's clear to me and my Republican colleagues that one key piece of the fix to this state's fiscal crisis must include incentives to retain and create jobs.

CALIFORNIA'S 'GREEN JOBS' EXPERIMENT ISN'T GOING WELL

This editorial from Wall Street Journal writer Stephen Moore seems to sum up all the activity since AB 32 was passed into law better than any other. If you only read one article about the Greenhouse Gas issue in the next month it should be this one, which read in part:

“The environmental plan was built on the notion that imposing some $23 billion of new taxes and fees on households (through higher electricity bills) and employers will cost the economy nothing, while also reducing greenhouse gases. Almost no one believes that anymore except for the five members of the California Air Resources Board (CARB). This is the state's air-quality regulator, which voted unanimously in December to stick with the cap-and-trade system despite the recession. CARB justified its go-ahead by issuing what almost all experts agree is a rigged study on the economic impact of the cap-and-trade system. The study concludes that the plan "will not only significantly reduce California's greenhouse gas emissions, but will also have a net positive effect on California's economic growth through 2020."

This finding elicited a chorus of hallelujahs from environmental groups. The state finally discovered a do-good policy that pays for itself. Californians can still scurry around in their cars, heat up their Jacuzzis, and help save the planet. But there was a problem. The CARB had commissioned five economists from around the country to critique this study. They panned it.”

Click here to read the full article.

Although the economists hired by ARB to provide comments on the study basically said it is not going to generate a positive economic impact, ARB dismissed the findings and moved forward anyway.

SKY MAY FALL IF WE DON’T CHANGE OUR WAYS

The new Secretary of Energy for the Obama Administration warns that California farms and vineyards could vanish by the end of the century and that our major cities are in jeopardy, unless we act to slow the advance of Global Warming. “We're looking at a scenario where there's no more agriculture in California,” said Steven Chu. At first we thought he was reacting to our story last week about the current drought in California – which is a real and immediate threat to farms, cities, and people, in our State, but alas, doing something now about the actual lack of water seems less urgent to many policymakers than a potential future abundance of carbon. Click here to read the full story.
 

2008 REVIEW OF TAX POLICY CHANGES IN CALIFORNIA

Our friends over at California Taxpayers’ Association (Cal-Tax) have provided a quick summary of the major issues relating to taxation in our state Capitol in 2008. It is a quick and interesting read. The highlight of the summary is the fact that there is no mention of any action on Split-Roll Property Taxation even though it was much ballyhooed by some advocates as a way to squeeze more money out of the business community. Here is the opening of the summary:

For a while, it appeared that 2008 would usher in the first major state tax increase since 1991. It was not to be. Despite the efforts of Governor Arnold Schwarzenegger, most legislative Democrats and the Legislative Analyst's Office, no major state tax increase was enacted into law last year – although a "tax penalty" that forces many law-abiding businesses to overpay their taxes was approved.

In August, in an attempt to get legislative Republicans to vote for a broad tax increase and break the deadlock on the long-overdue 2008-09 state budget, the governor proposed a temporary, three-year sales tax increase (except on gasoline) to be followed by a permanent 0.5 percent sales tax reduction. Over time, the tax increase would have morphed into a net tax reduction. Legislative Democrats were holding out for a broad tax increase as part of the budget solution, and the governor believed the compromise would strike a middle ground, but Republicans rejected the proposal.

Click here to read the full Cal-Tax 2008 In Review.

REDISTRICTING PLANNING MEETING

In the November 2008 General Election, voters approved Proposition 11 (the Voters First Act), which established a new 14-member commission charged with drawing the new State Senate, State Assembly and State Board of Equalization district boundaries.

Representatives from the California Bureau of State Audits will be conducting public meetings throughout California to solicit comments about the processes that should be established for individuals to apply to become members of the Commission and for the selection of an Applicant Review Panel to assess the applicants and create an applicant pool of 60 qualified members.

The business community is highly encouraged to participate and provide input in to this process. Public meetings are scheduled in the following areas:

San Diego – Feb. 9
Fresno – Feb. 20
Los Angeles – Feb. 23
San Francisco – Feb. 27

Click here for more detail.

NEW STATE DISABILITY ACCESS LAW REFORMS; FREE WEBINAR

A free web seminar explaining how businesses can reduce their risk of disability access lawsuits is being offered by CalBizCentral, the source for California business and human resource compliance products, presented by the California Chamber of Commerce.

The live web seminar focuses on SB 1608: What California’s New Accessibility Law Reforms Mean to California Employers. The half-hour web seminar, set for February 19 beginning at 10 a.m., will outline how the new law can help businesses and illustrate the new protections the law creates for employers.

Click here for registration and more information on the webinar or call (800) 331-8877.

CBPA NEW LEGISLATOR LUNCHEON & BOARD MEETING

If you have not already done so, please RSVP for the bi-annual CBPA New Legislator Luncheon on February 18 in Sacramento. This is your opportunity to meet with new Assemblymembers and Senators in a relaxed atmosphere to discuss issues of importance to the commercial, industrial, and retail real estate sector. The luncheon follows the first meeting of 2009 for the CBPA Board of Directors. As an affiliate member of CBPA, BOMA California holds three seats on its board and members are welcome to attend. We expect a very good showing of legislators to the luncheon. Contact Melissa Martinez, 916-443-4676, for more information or to RSVP.
 

BOMA CALIFORNIA 2009 CALENDAR

FEBRUARY 2009

February 18— [note date change]
CBPA NEW LEGISLATOR LUNCHEON
Sacramento (Hyatt)

 

MARCH 2009

March TBD (Late March)—
BOMA/INDUSTRYWIDE LEGISLATIVE COMMITTEE MEETING
TBD (in Southern California)

March 23-24—
BOMA INTERNATIONAL, NATIONAL ISSUES CONFERENCE
Washington D.C.

 

APRIL 2009

April 3—
BOMA CA BOARD MEETING/LEGISLATIVE REVIEW
San Diego (exact location TBD)
10:00 a.m. - 2:00 p.m.

 

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