From California Business Roundtable <[email protected]>
Subject California Business Roundtable eNews April 24, 2020
Date April 24, 2020 9:00 PM
  Links have been removed from this email. Learn more in the FAQ.
  Links have been removed from this email. Learn more in the FAQ.
Web Version [link removed] | Update Preferences [link removed] CBRT in the News Steyer Emerges As Newsom Economic Point Person — And Business Groups Are Concerned

He's signed up millions of voters in an effort to impeach President Donald Trump and run for the White House as a crusader against fossil fuels, all in the last year.

But can billionaire Tom Steyer now put California businesses back on track during the coronavirus crisis?

That's one question as Gov. Gavin Newsom's blue-ribbon economic recovery commission kicks off Wednesday amid worries about the state's considerable challenges — and his choice to tap the partisan Steyer as co-chair.

...

Steyer will lead Newsom's task force just as the oil industry is suffering massive losses amid a growing glut of supply. Rob Lapsley, who heads the California Business Roundtable, said that his organization is ready to work with the task force and governor — but that many business leaders are worried that Steyer “has had a very clear agenda’’ that calls for “the elimination of fossil fuels — which represent some of the best paying middle-class jobs in this state.’’

Lapsley argued that business leaders are haunted by the inevitability of “a whole other round of layoffs’’ ahead — white-collar jobs, middle-class jobs included — on top of the 2.8 million already on the unemployment line in California.

"To be able to get the state up and running, and it's going to take every sector, every single job,'' he argues. "We can't be in a position of wanting to eliminate fossil fuels and replacing them with green jobs, when the numbers don't justify that.’’

Read More [[link removed]] Coronavirus Puts Gavin Newsom In Tough Spot On California Progressives’ Biggest Priorities

A soaring economy gave Gov. Gavin Newsom wide latitude during his first year in office to set California on a path to the sweeping liberal agenda he outlined during his campaign.

Now, as the coronavirus pandemic plays havoc with the state budget, Newsom suddenly faces tough and unexpected choices that may require him to temporarily abandon key policy goals and disappoint allies.

Advocates are pushing to expand social services just as tax revenue is drying up. Industries teetering on the edge are seeking regulatory relief from laws revered by organized labor. And all are hoping their needs won’t be forgotten as Newsom charts a course out of his statewide stay-at-home order.

...

But requests for new spending or taxes are drawing opposition from business groups, which say they are looking for signals that Newsom is mindful of their challenges during what they expect will be a slow and fragile recovery.

“If they expand spending now, that would be singularly the most irresponsible thing they could do,” said Rob Lapsley, president of the California Business Roundtable.“Who pays for it? It’s business.”

Lapsley’s group and other businesses organizations are asking the governor for breaks such as freezing the workers’ compensation rate and suspending the ability to sue over certain labor code violations. Doing that, they say, would give them a more solid financial footing and allow them to start hiring people back sooner.

Read More [[link removed]] Even Harder Than Shutting Down: How Does Newsom Reopen California?

Restless Californians are letting Gov. Gavin Newsom know they’re over his statewide order to stay home to prevent the spread of the coronavirus. At noisy street demonstrations and in polite letters from government officials, they’re saying: Let us start getting back to normal.

Other local leaders — still concerned about the potential for the virus to sicken or kill many more people — are urging the opposite, and Newsom said he’s heard from plenty of them, too: “The vast majority of calls are to caution us from taking the parachute off before we land.”

...

“We need to get people back in their jobs,” said Rob Lapsley, president of the California Business Roundtable, an association of the state’s largest corporations.

“There needs to be best practices formulated from this group right now,” he said of the governor’s new council, so businesses can adjust to new guidelines and start reopening in the next few weeks.

Businesses are worried about the potential for being sued over new conditions imposed by the pandemic — everything from labor laws that didn’t anticipate work-at-home employment, to liability if workers get sick on the job. They’ve asked Newsom to issue an executive order easing some labor laws and shielding them from some categories of litigation.

Read More [[link removed]] Desconfían Del Liderazgo De Steyer Para La Reactivación Económica De California Ante El Coronavirus

La designación del financista Tom Steyer para encabezar el Grupo de Trabajo para el Empleo y Negocio preocupa a un sector empresarial por las, según ellos, radicales ideas ambientalistas expresadas por el ex precandidato presidencial demócrata.

El gobernador Gavin Newsom puso a Steyer la cabeza del grupo integrado por 80 personas entre políticos, empresarios y sindicalistas. El millonario se destacó por su discurso franco y directo sobre el cambio de clima y la campaña para destituir al presidente Donald Trump. Su agenda ecológica se enfrenta con la postura de algunas industrias.

...

Rob Lapsley, quien dirige la Mesa Redonda de Negocios de California, dijo que muchos líderes empresariales están preocupados de que Steyer "haya tenido una agenda muy clara" que exige "la eliminación de los combustibles fósiles— que representan algunos de los empleos de clase media mejor pagados en este estado".

Read More [[link removed]] Business Climate and Job Creation Senate Approves Aid For Small-Business Loan Program, Hospitals And Testing

The Senate approved a $484 billion coronavirus relief package on Tuesday that would revive a depleted loan program for distressed small businesses and provide funds for hospitals and coronavirus testing, breaking a partisan impasse over the latest infusion of federal money to address the public health and economic crisis brought on by the pandemic.

The measure was the product of an intense round of negotiations between Democrats and the Trump administration that unfolded as the small-business loan program created by the $2.2 trillion stimulus law quickly ran out of funding, collapsing under a glut of applications from desperate companies struggling to stay afloat.

Read More [[link removed]] The $600 Unemployment Booster Shot, State By State

Before the coronavirus, people receiving unemployment benefits in most states got, on average, less than half their weekly salaries.

Now, as millions file claims, many are poised to receive more money than they would have typically earned in their jobs, thanks to the additional $600 a week set aside in the federal stimulus package for the unemployed.

Read More [[link removed]] California Cities Project 2-Year Losses Of $6.7 Billion

California’s 482 cities say they will collectively lose $6.7 billion over the next two years because of the coronavirus pandemic, prompting layoffs and furloughs for public workers and potential cuts to basic services such as sanitation, public safety and housing.

But that estimate, compiled by the League of California Cities, assumes the stay-at-home order lifts by June 1 — an unlikely scenario in a state where Gov. Gavin Newsom and public health officials have said bans on large gatherings and unnecessary travel will likely extend well into summer.

Read More [[link removed]] California Entrepreneurs Buck Trend, Keep Forming Businesses

California, with a diversified economy heavy on agriculture, technology and entertainment, may prove more resilient than much of the country at weathering fallout from the coronavirus pandemic.

It’s the only state to report an increase so far this year in the number of new business applications compared with the same period of 2019, according to U.S. Census Bureau business formation data.

The hardest hit was Rhode Island, with a nearly 30% plunge in the year to date, while Wyoming, Washington, Florida, Georgia, South Carolina, Minnesota and Ohio were all down less than 5%. Applications nationwide tumbled 21% to 58,900 for the week ending April 11 compared with the same week last year, Census Bureau data show.

Read More [[link removed]] Jobless Numbers Are ‘Eye-Watering’ But Understate The Crisis

Nearly a month after Washington rushed through an emergency package to aid jobless Americans, millions of laid-off workers have still not been able to apply for those benefits — let alone receive them — because of overwhelmed state unemployment systems.

Across the country, states have frantically scrambled to handle a flood of applications and apply a new set of federal rules even as more and more people line up for help. On Thursday, the Labor Department reported that another 4.4 million people filed initial unemployment claims last week, bringing the five-week total to more than 26 million.

“At all levels, it’s eye-watering numbers,” Torsten Slok, chief international economist at Deutsche Bank Securities, said. Nearly one in six American workers has lost a job in recent weeks.

Read More [[link removed]] She Got A Forgivable Loan. Her Employees Hate Her For It.

Jamie Black-Lewis felt like she won the lottery after getting two forgivable loans through the Paycheck Protection Program.

Black-Lewis saw the $177,000 and $43,800 loans, one for each of the spas she owns in Washington state, as a lifeline she could use for payroll and other business expenses.

She’d halted pay for the 35 employees — including herself — at Oasis Medspa & Salon, in Woodinville, and Amai Day Spa, in Bothell, in mid-March, when nonessential businesses in Washington closed due to the coronavirus pandemic.

Read More [[link removed]] Some Cities Want To Reopen Restaurants, Churches As First Step In Easing Stay-At-Home Orders

More California communities are asking Gov. Gavin Newsom to ease stay-at-home restrictions even as state officials say there still is no firm timetable to safely do so.

A group of cities in Stanislaus County sent Newsom a letter proposing some steps to loosen restrictions, saying “a reopening process that may fit, and make sense, for Los Angeles and our neighboring Bay Area regions does not work for our county. Stanislaus County is nothing like the regions of San Francisco or Los Angeles.”

The cities suggested a first phase of reopening parks, churches and other houses of worship, restaurants, car washes and some other businesses, all following strict social distancing rules.

Read More [[link removed]] Less Than Half Of L.A. County Residents Still Have Jobs Amid Coronavirus Crisis

Because of the colossal impact that the coronavirus outbreak has had on the U.S. economy, less than half of Los Angeles County residents — 45% compared with 61% in mid-March — still hold a job, a decline of 16 percentage points, or an estimated 1.3 million jobs, according to findings from a national survey released Friday.

The survey also suggests that 25.5 million jobs have been potentially lost across the U.S. since mid-March, and that people of color, especially black Americans, are more likely to have lost their jobs since mid-March.

Nationally, 15% of white people said they had lost their jobs, while 18% of Latinos and 21% of black people reported job losses.

But a significant majority of job losses, 67% nationally, were reported as temporary layoffs. Angelenos reported similar experiences.

Read More [[link removed]] Trump Is Considering Cutting Farmworker Pay During The Crisis. Don’t Do It, California Growers Say

The Trump administration is considering cutting the pay of guest visa farmworkers during the coronavirus pandemic to help the farm industry. But California growers aren’t thrilled: They say it won’t help them much with their financial crisis. And they worry that it might even hurt them by creating uncertainty for their essential employees, prompting them to look elsewhere for work once the pandemic ends.

Unions and other worker advocates also worry that reducing farmworkers’ wages would cause hardships for people already living on the edge of poverty, and may end up lowering the pay of domestic farmworkers, too.

Read More [[link removed]] A Coronavirus Side Effect: Lots Of Lawsuits

Carnival Corp. is facing lawsuits from several passengers who claim they weren’t warned of the high risk of being infected with the novel coronavirus on the company’s cruise ships.

Wells Fargo,, Bank of America, JPMorgan Chase and US Bancorp have been sued by small businesses that missed out on coronavirus rescue loans because, the small firms contend, the banks first processed big loans that generated big fees rather than on a first-come-first-served basis.

Six Flags Magic Mountain is being sued by a theme park fan who objects to the park collecting monthly payments for his membership pass while the park is closed due to the pandemic.

Crisis and calamities spark finger pointing and demands for compensation, and the coronavirus outbreak is no different. Like the pandemic, coronavirus-related legal disputes are likely to be widespread and drag on for years.

Read More [[link removed]] A Relieving Agreement Is Reached On California’s Pending “Gig Economy Law”

Members of the live music industry are celebrating an agreement that was reached today on pending amendments to the recently introduced gig economy law in California, Assembly Bill 5 (AB5).

...

Many of the industry’s workers have been living in an elevated state of fear and uncertainty since COVID-19 forced America indoors — and the notion that this law was not in their favor had made things worse. But the reworked language of the law on Friday allows most music professionals to once again access the Borello test, which decides if a person is an employer instead of an independent contractor, to determine employment classification for both live performances and studio recordings.

Read More [[link removed]] Energy and Climate Change What The Negative Price Of Oil Is Telling Us

The coronavirus pandemic has caused a series of mind-bending distortions across world financial markets, but Monday featured the most bizarre one yet: The benchmark price for crude oil in the United States fell to negative $37.63.

That means that if you happened to be in a position to take delivery of 1,000 barrels of oil in Cushing, Okla., in the month of May — the quantity quoted in the relevant futures contract — you could have been paid a cool $37,630 to do so. (That is about five tanker trucks’ worth, so any joke about storing the oil in your basement will have to remain just that.)

There are two ways of looking at this. First is what happened in a technical sense. The collapse of the May futures contract for West Texas Intermediate crude oil shows how the shock of the crisis is rippling through all sorts of markets and making them behave strangely.

But the broader takeaway is that the Covid-19 crisis is an extraordinary deflationary shock to the economy, causing the idling of a vast share of the world’s productive resources. Don’t let shortages of a few goods, like face masks or toilet paper, confuse the matter. The consequences will almost surely persist beyond the period of widespread lockdowns.

Read More [[link removed]] 'It's Really Heartbreaking': California's Clean Energy Programs Hit Hard By COVID-19

COVID-19 is unlike any crisis California has seen before, Edward Randolph, deputy executive director at the CPUC, said at the workshop. The agency has seen a lot of parties bring up individual problems, indicating that the customer-focused clean energy sector is facing a host of issues.

But while the agency is looking to identify solutions to the crisis, it is also prioritizing cost control. Anything that requires utilities to spend money today will ultimately end up on ratepayer bills, Randolph noted. The CPUC is already seeing the potential for rate increases of 20% and higher over the next three or four years, driven largely by wildfire mitigation costs.

...

California companies in the solar and storage space have had to quickly downsize, lay people off and roll out pay cuts, Heavner said. Looking at pre-COVID job figures and the responses to CalSSA’s survey, companies have either laid off or furloughed 21% of all of their employees, he said.

California’s energy efficiency sector is witnessing similar impacts, including rapid drop-offs in activities, leading to furloughs and layoffs that are affecting a significant portion of the 300,000-plus efficiency and demand management workforce, according to Wikler.

Read More [[link removed]] Earth Day 50th Anniversary — Bay Area And Nation Are Cleaner, But New Challenges Loom

Wednesday is Earth Day. And it’s a big one: the Golden Jubilee. Plans had called for major festivals and events to celebrate the 50th anniversary in the Bay Area and around the nation, with environmentalists set to highlight accomplishments since 1970 and push for more renewable energy, parks, wildlife protections and efforts to slow climate change.

But with the coronavirus pandemic shutting down large gatherings, environmental groups and their allies have had to adapt. Instead, they’ll host an 11-hour live online event Wednesday with Pope Francis, Al Gore, famed marine biologist Sylvia Earle, and other leaders, scientists, musicians and celebrities.

Reflecting on what should have been a major moment in the sun after nearly four years of battling the Trump administration’s attempts to roll back hard-won environmental laws, environmental leaders say they are sanguine.

Read More [[link removed]] Education and Workforce Development California Urges Day Care Centers To Stay Open During Pandemic

Some states are urging child care centers to stay open to keep essential workers on the job. But providers say they're not trained to keep everyone safe and there's no social distancing with toddlers.

Along with just about everyone, child care providers are struggling through this pandemic. Some states have shuttered nearly all child care except those who care for the children of essential workers. But in California, day cares are encouraged to stay open.

Read More [[link removed]] Daycare Centers Warn They Might Not Have Room For All Kids When Workplaces Reopen

At the Child Development Consortium childcare center in Van Nuys, about 20 children attend per day and five more are slated to join. Executive director of the CDC Los Angeles Lisa Wilkin said more parents are itching to get back to work, which could mean more children at her 11 centers.

As local health authorities hint at easing COVID-19 pandemic stay-at-home orders in the coming weeks, childcare and early education professionals warn of an increase in need for childcare as workplaces gradually open while schools likely remain closed.

Under state guidelines, many childcare centers have remained open as they serve children of essential health care workers, emergency personnel and first responders.

Read More [[link removed]] Free Child Care At Modesto School Comes To Rescue Of Front-line Health, Safety Workers

As one of the workers on the front lines during this novel coronavirus pandemic, Stephanie Bowers was in a jam when the Stanislaus Union School District closed its campuses March 19.

The usual day care provider for her twin 10-year-olds, Joshua and Jason, also was closing. Bowers, a staff services technician with the Stanislaus County Health Services Agency, didn’t have the sick time or vacation days to take off what was then expected to be a couple of weeks of school closure. And, of course, she was needed at work.

Bowers is a widow, and her only local family is her 86-year-old dad, not a child care option. She thought she’d have to take the boys to their grandmother in Yuba City, but Bowers then came down with a cold.

To her great relief, she was sent by a friend a flyer: Modesto City Schools was offering free child care to health care workers, public safety first responders and its own nutrition services employees who have kept up take-home lunches and breakfasts during this period of home study. Bowers promptly signed up her boys and was told they could attend.

Read More [[link removed]] In Rural California, Children Face Isolation, Hunger Amid Coronavirus School Closures

With schools closed because of the coronavirus, educators in vast stretches of rural California are struggling not only to teach their students but to reach them.

From the mountain hamlets of Northern California to the farming communities of the Central Valley to the desert towns near the U.S.-Mexico border, small schools are grappling with how to serve far-flung, impoverished students with less access to at-home internet, spotty cellphone service and who rely on schools to feed them.

In Trinity County, some bus drivers are traveling up to 1.5 hours along winding mountain roads to deliver two meals per day to families who can’t afford to drive into town. In Siskiyou County, students are dropping off homework on teachers’ front porches. In Tulare County, one tiny district hurriedly installed internet antennae throughout town, including the roofs of some houses.

Read More [[link removed]] Parents Worrying About Coronavirus’ Toll On Children's Learning, Survey Finds

Buffeted by the coronavirus’ impact on their lives and on schools, Californians expressed worry about the spread of the pandemic and their personal finances, and parents in particular said they were concerned about school closures’ impact on their children’s ability to learn.

But in an annual voter survey by the Public Policy Institute of California, they also gave high marks to Gov. Gavin Newsom’s handling of K-12 education and to their school districts in how they have administered school shutdowns during the first few weeks of the pandemic.

The poll was taken from April 1 to April 9, three weeks into what will likely be at least a two- to three-month school shutdown, followed by a difficult process of reopening. Already, 58% of public school parents and 52% of all parents with children under 18, which includes students in private schools, said the closures pose a big problem or somewhat of a problem.

Read More [[link removed]] L.A. School District Confronts $200 Million In Coronavirus Costs And A Grim Budget Future

The Los Angeles Unified School District is confronting an estimated $200 million in emergency coronavirus costs — after swiftly moving to provide computers for all students and food for their families — but it’s not clear where crucial additional funding might ultimately come from, Supt. Austin Beutner told The Times.

The mounting expenses will not immediately push the district’s $7.87-billion general fund into insolvency, but the unbudgeted spending probably violates state law requiring school systems to maintain a three-year balanced budget. Although state officials may relax those rules in the current crisis, they have not committed to covering the costs incurred by L.A. Unified — especially with state tax revenue plummeting.

Read More [[link removed]] U.S. Colleges Brace For A Devastating Summer And Fall

The upheaval in higher education has been unprecedented already, with campuses closed for months, graduation ceremonies scrapped and entrance exams canceled. Administrators across the nation increasingly fear their schools may not reopen for the fall semester. In the meantime, many have canceled summer programs, sports camps and on-campus weddings – all of which would be lucrative most years. The double whammy of losing summer and fall income would hurt all schools, and it could be fatal to those that were already struggling.

“The hit is huge,” said Larry Ladd, a consultant with the Association of Governing Boards of Universities and Colleges. “They will have less financial cushion because that summer revenue is no longer is there.”

College finances are under siege on many fronts. Endowment values have fallen with markets. Fundraising is a steep challenge now. New and returning students may have increased need for financial aid, because many families have lost income in the Covid-19 downturn. Some colleges even fear they won’t be able to fill their freshman class for fall 2020 as students may decide to wait a year instead of starting online, which would strangle tuition revenue.

Read More [[link removed]] Infrastructure and Housing “We Anticipate A Tsunami Of Evictions”: Tenant Advocates Call On Newsom To Tighten Rent Laws

Los Angeles tenant advocates are eyeing a new battle: Suspending the landmark statewide Costa-Hawkins Act that strictly limits rent control.

On Wednesday, the influential — and litigious — AIDS Healthcare Foundation called on Gov. Gavin Newsom to suspend the 1995 law. In exchange, the advocacy group said in its letter to the governor, it vowed to withdraw a proposed ballot measure aimed at overturning Costa-Hawkins.

The group is seeking a rent-hike freeze and is concerned that once state eviction moratoriums are lifted, landlords will be able to force tenants out and raise rents.

Los Angeles City Councilmember David Ryu, in his own letter to Newsom, called for a Costa-Hawkins suspension amid a coronavirus pandemic that has already led the state’s Judicial Council to temporarily suspend evictions and foreclosures.

Read More [[link removed]] Banning Rent Hikes Citywide: SF Did It. LA Won’t.

Los Angeles is entering a second month of a devastating pandemic, and most city leaders say they’ve already done all they can to help renters.

The city has put an array of protections in place for renters, declaring that landlords cannot evict tenants who haven’t paid their rent because of COVID-19. Ellis Act evictions have been halted, and the city has paused rent increases in rent-stabilized units. Impacted renters have also been given a year to make up any rent they missed—without interest or late fees.

But a full-fledged eviction moratorium and a “freeze” on rent increases that would have covered all residential units in the city was rejected on a 7-to-6 vote Wednesday by the Los Angeles City Council. Bolstered by the city attorney’s office, the dissenting councilmembers said they do not have the legal footing to make these broad moves.

Read More [[link removed]] ‘It’s Horrible For Everyone’: How The Coronavirus Changed These Landlords’ And Tenants’ Lives

Over the last month, millions of Californians have lost their jobs because of orders to stay at home and close nonessential businesses to help slow the spread of the novel coronavirus.

Both tenants and landlords have faced sudden losses in income and new fears about what will happen to their homes and properties. Federal, state and local governments have passed measures to prevent evictions and provide mortgage assistance with the expectation that many tenants won’t be able to pay their rent.

But the patchwork of rules has led to confusion and, in many cases, has failed to relieve worries about missed rent and mortgage payments. Some landlords are pressuring their tenants for financial documentation or to agree to rent repayment plans that are more onerous than required by law.

Read More [[link removed]] Renters In Crisis: Housing Experts Say Canceling Rent Isn’t The Best Answer

As the economic consequences of the coronavirus pandemic extend into the future, Americans and policymakers are trying to figure out what type of assistance is needed for both homeowners and renters.

Since mid-March, more than 26 million Americans have filed for unemployment. The CARES Act, a $2 trillion relief package passed by the federal government, implemented financial safeguards for Americans, including expanded unemployment benefits and one-time stimulus payments. The Act also introduced up to 12 months of mortgage forbearance for federally backed mortgage loans on single-family homes.

But experts estimate the national foreclosure suspension leaves out the 44 million households that rent their homes. Now, lawmakers are pushing for nationwide rent protections—like canceling rent—but housing experts say it’s not that simple.

Read More [[link removed]] Measure For $10B-Plus Tax Hike May Gain Traction With Stressed Local Governments

Dedeaux Properties Chief Operating Officer Alon Kraft is worried.

He and other commercial property owners in California are concerned that the current market turmoil could lead to the support of a state ballot measure that Kraft and others say hurts property owners, small-business owners and consumers.

The California Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative (more commonly known as the Prop. 13 "split roll" measure) on the November ballot would raise nonresidential commercial property tax sites valued at more than $3M to market rate. It would also be reassessed every three years, but single-family and multifamily properties are not affected.

A USC study released in February found that the split roll could generate a tax windfall of anywhere between $10.3B and $12.6B a year. The money will go directly to schools and local municipalities to pay for services such as firefighters and police officers, California YIMBY Communications Director Matthew Lewis said. California YIMBY is an organization that advocates for affordable housing and responsible land use.

Read More [[link removed]] The Next COVID-19 Crisis: The Coming Tidal Wave Of Evictions

Like the record 2.82 million Californians filing for unemployment benefits, the coronavirus pandemic meant lost income for Charlie, who asked to remain anonymous in order to protect their identity. So Charlie informed their landlord that a smaller-than-usual rent check would be on its way come April 1.

That’s fine, the landlord noted, according to a copy of the letter provided to Curbed—but first, the property owner would need to see some “documentation,” including the size of Charlie’s bank account to see exactly how bereft the pandemic had left them.

Read More [[link removed]] Even With Bailouts And Eviction Freezes, Another Housing Crisis Is Coming

Millions of Americans are suddenly out of work as the financial and economic crisis sparked by the coronavirus pandemic deepens. Without an income, most of these people will have a hard time covering their expenses, including keeping a roof over their heads.

But even before the current crisis, tens of millions of Americans struggled to pay for housing, spending more than 30% — or even half — of their income on housing-related expenses. This leaves less money for other essentials such as food, health care, and savings.

Governments have offered a variety of plans to support those hurt by the coronavirus pandemic, from direct payments and higher unemployment checks to eviction freezes and mortgage relief.

Read More [[link removed]] Editorial and Opinion Rent-Reduction Bill A Vast Abuse Of Power

We’ve all accepted the need for some unusual public-policy measures to deal with coronavirus, but we should always look askance at proposals that are unnecessary, counterproductive and abusive of our rights.

Sadly, some legislators seem to be using the crisis to push the types of far-reaching legislation that could never get approved during normal times.

Read More [[link removed]] Is Proposed Measure Really For Children?

What if you were asked to vote for an initiative that said by doing so, you would increase the funding for K-12 public schools and community colleges as well as fund local government? Even better, it would also not affect you as a homeowner.

At first glance it does sound good and as we so often hear, “it is for the children,” most of us would vote yes.

Before you mark your ballot, let’s take a closer look. The initiative is known as the California Tax on Commercial and Industrial Properties for Education and Local Government Funding. It’s more common name, the split roll ballot Initiative, would reassess commercial and industrial property at fair market value and would do so every year.

Read More [[link removed]] Does Gavin Newsom Have The Grit To Take On The Coronavirus?

To borrow one of his favorite phrases, Gavin Newsom has met his moment.

He heads the largest state in the country during a crisis where governors have emerged as trusted, popular leaders, carving out a new brand of federalism. He was the first governor to issue a mandatory stay-at-home order, which has helped keep illness and death in California well below projections. His youthful face and bold pronouncements have become a familiar feature on national television.

“We decided enough’s enough,” Mr. Newsom said on “The Rachel Maddow Show” on April 7 as he announced that California had signed contracts to obtain 200 million protective masks a month. His “nation state,” the governor declared, had stopped with “the small ball.” The next morning, #PresidentNewsom trended on Twitter.

Now the California governor must demonstrate he can not only deliver fanfare but also follow through. Otherwise Mr. Newsom’s national stature may be as fleeting as the Twitter hashtag.

Read More [[link removed]] No Representation For Non-Bosses

Governor Gavin Newsom’s economic task force has plenty of representation if you’re a boss. It’s full of presidents, CEOs, board chairs, and directors of various enterprises in business, labor, government and academia.

For those few of us—we humble few—who aren’t bosses, well, we don’t have any representation at all.

I suspect non-bosses may constitute a majority of Californians. As a group, we are disproportionately impacted by COVID-19. But hey, rulers gotta rule.

It’s a very strange body. With 80 members, it’s hard to imagine it being effective as a governing force. It also is full of people who have massive responsibilities in their own jobs, so they probably can’t give their full attention to the vital work of fashioning an economic response to COVID-19.

It doesn’t help politically that the both co-chairs are Democrats, including the state’s biggest Democratic donor, Tom Steyer. This state has many millions of non-Democrats who might be suspicious of a partisan figure.

Read More [[link removed]] It’s Time To Take A Hard Look At Tax Reform For California’s Future

The coronavirus pandemic is sending shockwaves through the global and national economy, and, without a doubt, reverberations from the pandemic will have a huge impact on state budgets across the country.

While the coronavirus crisis and response is front and center for California lawmakers, a fiscal crisis, driven mainly by the state’s uniquely volatile revenue system, is brewing in the background.

The state’s general fund is largely reliant on personal income and capital gains, and both are extremely sensitive to economic downturns. With more of the workforce unemployed for the foreseeable future, reduced demand will lead to lower sales tax revenue, as well as lower corporate tax revenue — the other main pillars of revenue for the state.

Lawmakers looking to respond to the challenges from the pandemic, deal with declining revenue, and balance the state budget will be met with another major challenge: California’s relatively high fixed costs.

Read More [[link removed]] Has Coronavirus Freed Newsom From Housing Vows?

California Governor Gavin Newsom is widely praised for his leadership during the pandemic. The contrast between Newsom and Donald Trump is striking.

It’s likely Newsom no longer feels pressure to meet the ambitious housing goals he promoted during his 2018 campaign. After pledging to build 3.5 million homes he scaled that back to a still major “quadrupling” of the state’s annual construction of new units. Newsom seemed truly committed to finally addressing California’s extreme housing shortage.

Read More [[link removed]] Opening Business & Jobs Or Changing The Business World?

There is a sense here that Governor Gavin Newsom’s Business and Job Recovery Task Force is set to go beyond just getting businesses open and people back to work by offering changes to the way business is done in California.

The Task Force announced last week is an unwieldy 80-member group of legislative leaders, CEOs, labor leaders, association presidents, and others that includes the four former living California governors, although the former chief executives are listed as Honorary Members raising the question of how much influence they will wield.

As someone who served on six state commissions that were composed of about 20 members each, I understand how difficult it is to reach consensus. Will an 80-member task force get anything done?

Read More [[link removed]] California Business Roundtable 1301 I Street, Sacramento, CA 95814 916.553.4093 | [[link removed]] Web Version [link removed] | Update Preferences [link removed] | Unsubscribe [link removed]
Screenshot of the email generated on import

Message Analysis