FRIDAY THE 13TH NIGHTMARE – DEFICIT RETURNS!

Exactly three weeks after the Governor and Legislature patted themselves on the back for “solving” the state’s $40 billion budget deficit, the Legislature's budget analyst, Mac Taylor, has declared that the immense package of spending cuts, new taxes and loans will fall short by $8 billion because the state's economy is continuing to falter.

Taylor had some more bad news for the state's political leaders. Because so many of the "solutions" adopted last month are temporary, ongoing deficits will reappear in future years - growing from $12.6 billion in 2010-11 to $26 billion in 2013-14.

Click here to read the full LAO report.
 

PROPOSITION 1A WILL STABILIZE BUDGET

One of the measures that came out of the recent budget deal is Proposition 1A, which will appear on a May 19 special ballot. At a recent meeting of the Commission on the 21st Century Economy, the Foundation for Commerce and Education stated the measure would address the “volatility of state revenues” without a massive overhaul of the state tax system. The group noted that Prop 1A will lead to “smoothing” revenues by requiring that “peaks” be saved to be spent during “troughs.”

Although controversial, many business groups are considering support of Prop 1A, better known as the “Spending Cap Amendment.” The measure will extend for as long as four years the approximately $16 billion tax increase that is part of the budget deal struck in Sacramento – however, it also imposes a limit on the amount the state can spend each year.

PROPOSITIONS ON MAY 19 SPECIAL ELECTION

Here is a quick summary of all the measures on the May 19 ballot approved as part of the budget deal:

Proposition 1A - Prop 1A combines a 4-year tax hike of about $16 billion with a state spending cap.

Proposition 1B - Modification of California Proposition 98 (1998) to free up money for state's budget overruns.

Proposition 1C - Sell rights to future lottery proceeds as a way of raising some cash now for state budget.

Proposition 1D - Asks voters to approve taking money from Prop 10 in 1998 for purposes not allowed in that 1998 vote.

Proposition 1E - Asks voters to take money from Prop 63 for purposes not allowed in that 2004 vote.

Proposition 1F - No pay raises for state legislators in years when there is a state budget deficit.

FEDERAL STIMULUS FOR ENERGY EFFICIENCY

The California State Assembly Business and Professions Committee held an informational hearing to discuss how the incoming federal stimulus dollars may be used to “Green State Buildings.” Representatives from BOMA California were present and provided testimony urging the state to move the money out the door as quickly as possible using the guideposts of the state’s already stringent energy code, the new green building standards, and suggesting the state rely on Energy Star as a metric. We also offered assistance to the state through the many energy efficiency programs that are focused on management of private buildings, such as BOMA’s Building Energy Efficiency Program.
 

BOMA GRANT GIVES FUNDS TO ADDRESS AB 32/ELECTRICITY

The California Real Estate Journal reports on funds recently approved by BOMA International and matched by California based Local Associations to address regulatory issues related to greenhouse gas policy, AB 32 implementation, and electricity rates. This article provides a good summary of actions that the commercial real estate industry is undertaking to assure that objective data and arguments in our favor are presented to state policymakers. Click here for the full story.
 

EMPLOYEE FREE CHOICE ACT REINTRODUCED

The Employee Free Choice Act (EFCA), which has been organized labor’s top priority in Congress, was re-filed in both the House of Representatives and the Senate with fewer co-sponsors than in 2007. While this bill introduction has been expected for some time, it will officially kick off the debate over the Employee Free Choice Act in the 111th Congress.

In response to the bill introduction, several national real estate groups, such as ICSC, NAIOP, BOMA and RILA, will be ramping up efforts in the coming weeks to draw attention to the harm posed by this radical proposal. The legislation effectively eliminates the secret ballot in union organizing campaigns and replaces collective bargaining with mandatory binding arbitration.

An economic impact study on the EFCA titled The Empirical Assessment of the Employee Free Choice Act: The Economic Implications, shows a direct link between passage of EFCA and job losses.

BOMA CALIFORNIA 2009 CALENDAR

MARCH 2009

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

 APRIL 2009

April 3—
BOMA CA BOARD MEETING/LEGISLATIVE REVIEW
Waxie Headquarters
9353 Waxie Way
San Diego
10:00 a.m. - 2:00 p.m.
RSVP for more details

April 8 —
BOMA/INDUSTRYWIDE LEGISLATIVE COMMITTEE MEETING
Century City
10:00 a.m. - 2:00 p.m.
RSVP for more details

 JUNE 2009

June 9-10—
CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT
Sacramento

June 10—
BOMA CALIFORNIA BOARD MEETING
Hyatt Regency, Sacramento
2:00 p.m. - 5:00 p.m.

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