From California Business Roundtable <[email protected]>
Subject California Business Roundtable eNews December 4, 2020
Date December 4, 2020 10:30 PM
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Web Version [link removed] | Update Preferences [link removed] CBRT in the News Pressure Rises For California Wealth Tax Plan To Return In 2021

Proposals to raise taxes on wealthy Californians are likely to resurface in 2021 now that voters rejected a property tax increase that would have raised as much as $11.5 billion a year.

The failure of Proposition 15 on the Nov. 3 statewide ballot erased the possible influx of property tax revenue that would have funded local governments and schools and taken pressure off lawmakers to increase taxes in other ways.

The proposition, backed by labor unions, would have ended a 42-year-old cap on property tax rates by assessing commercial property at current market value each year. It would have preserved a cap on residential property tax at 1% of the purchase price.

...

Californians have supported some higher taxes on the wealthy and may tolerate more, Rob Lapsley, president of the California Business Roundtable, said. The organization represents the state’s largest corporate employers.

San Francisco voters approved a new tax on companies if their chief executives make 100 times more than their median workers, and almost 200 of 260 municipal tax measures passed, he said.

“The question is where is the governor going to lead?” Lapsley said. “Is he going to engage in a discussion on this?”

Read More [[link removed]] Inside Newsom’s New Regional Shut Down

Vaccine doses on the way

Gov. Gavin Newsom announced a regional stay-at-home order Thursday after nearly a week of anticipation — but the state’s strictest measure in months doesn’t currently apply to any of California’s counties.

The order, which goes into effect Saturday afternoon, stipulates that if a region’s ICU capacity falls below 15%, broad swaths of the economy must close down and retail stores must limit indoor capacity at 20% for at least three weeks. It also instructs Californians to stay home as much as possible, with exceptions for things like grocery shopping, getting takeout, going to the doctor and exercising. As of Thursday, the ICU capacities for the state’s five regions — Northern California, the Bay Area, Greater Sacramento, San Joaquin Valley and Southern California — were 18.6%, 25.3%, 22.2%, 19.7% and 20.6%, respectively.

Newsom: “The bottom line is if we don’t act now, our hospital system will be overwhelmed. If we don’t act now, we’ll continue to see a death rate climb, more lives lost.”

The governor added that California is currently on track to hit 112% ICU capacity by mid-December. Still, frustrated lawmakers and business owners demanded the state provide data justifying the closure of playgrounds, restaurants, cardrooms, movie theaters and hair salons while allowing retail stores to remain open. K-12 schools already open can also stay open.

Rob Lapsley, president of the California Business Roundtable: “These sectors should be provided the same flexibility (as retail stores) … to keep employers and their employees working to provide a lifeline for their families during this holiday season and beyond.”

Read More [[link removed]] South Bay Braces For Another Surge Of Coronavirus Cases

California wants to eliminate new gas-powered vehicles from the state's roads in 15-years. But that push hasn't triggered a huge spike in zero emission vehicle sales yet. Third-quarter numbers show they represent just less than 7 percent of alternative fuel vehicle sales, up from about 5 percent a year ago.

Rob Lapsley is with the California Business Roundtable. The group is critical of the Newsom administration's effort to make all new vehicles zero-emission by 2035 as part of the state’s climate action goals.

"Yes, they're up to 6.7 percent and there is a market for this but we're not going to reach our goals and they need to start rethinking that now before we get further because it still comes down to how are you going to pay for it."

But supporters of the zero-emission-by-2035 goal say the electric car market is still growing and incentives would help boost sales.

Read More [[link removed]] Business Climate and Job Creation U.S. Added 245,000 Jobs Last Month As Hiring Slowed

U.S. job growth slowed sharply in November, suggesting the labor-market recovery is losing steam amid a surge in coronavirus cases and new business restrictions.

Employers added 245,000 jobs last month, down from 610,000 jobs in October, the Labor Department reported Friday. The unemployment rate edged down slightly to 6.7% in November from 6.9% a month earlier, but that was partly because fewer Americans were seeking work.

November marked the seventh consecutive month of job gains at a steadily cooling pace. The labor market has now regained 12 million of the 22 million jobs lost at the onset of the pandemic. At November’s pace of job growth, employment won’t return to pre-pandemic levels until 2024, Glassdoor senior economist Daniel Zhao said.

“We saw positive job gains, but I think the sentiment is largely negative because we know that we’re heading into a dark winter,” Mr. Zhao said. “There is a long way to go before we actually have a vaccine in hand and make a full economic recovery.”

Read More [[link removed]] Pandemic's Toll To Economy Nearly $5 Trillion Over Two Years

Without a concerted effort to slow the spread of the coronavirus, the U.S. economy could take a nearly $5 trillion hit over two years due to the pandemic that's killed more than 270,000 Americans to date, according to a new study from the University of Southern California.

The economic pain inflicted by COVID-19 will result in net GDP losses of as much as $4.8 trillion, or 23%, from March 2020 through February 2022, according to projections by researchers at the USC Center for Risk and Economic Analysis of Terrorism Events, or CREATE.

The unfathomable tally is a worst-case scenario in which masks and social distancing do not become more widespread, hindering attempts to reopen the economy amid ongoing waves of infections, according to the findings published in the journal Economics of Disasters and Climate Change.

"It's looking increasingly like we're moving towards that one, with mandatory closures," Terrie Walmsley, a CREATE research fellow and adjunct assistant professor of practice in economics at USC's Dornsife College of Letters, Arts and Sciences, told CBS MoneyWatch, referring to the worst of three possible outcomes envisioned by researchers. "Fortunately, the vaccine is on the horizon."

Read More [[link removed]] Weakening Jobs Numbers Spur Covid Aid Efforts

A sharp decline in job growth in November further prodded lawmakers to reach an agreement on coronavirus relief, as negotiators hurried to craft a bill before a government funding deadline at the end of next week.

Fitful efforts to pass another aid package came back to life this week when a bipartisan group of rank-and-file lawmakers rolled out a $908 billion proposal, and top Democrats on Capitol Hill quickly said the plan should be the framework for negotiations going forward.

Several aid programs instituted in the spring expire at the end of year, squeezing lawmakers to pass more relief after months of failed negotiations.

Members of both parties pointed to Friday’s jobs report as further impetus for quick action. Employers added 245,000 jobs last month, less than half the 610,00 jobs added in October, and the unemployment rate dropped slightly to 6.7%. Many Americans are seeing temporary furloughs become permanent.

“We had some not-so-good news on the job front that further necessitates our taking action,” House Speaker Nancy Pelosi (D., Calif.) said at a news conference Friday.

Read More [[link removed]] Your Covid-19 Shopping Habits Are Changing What Jobs Are Available

Your shopping habits during the pandemic are reshaping America’s labor market.

The nation added jobs for the seventh straight month in November, the Labor Department said Friday. Most came in the transportation and warehousing industries—the ones that package, ship and deliver goods to consumers. Households’ shift toward buying sneakers, groceries and even cars online is driving a hiring binge in logistics industries.

Warehousing and transportation accounted for 145,000 of the 245,000 jobs created in November—and a big share of job growth since the labor market began recovering this spring after a sharp contraction due to the coronavirus pandemic. Online retailer Amazon.com Inc. has announced plans to hire hundreds of thousands of workers this year, including warehouse and seasonal employees.

The shift is creating a divide in the workplace. U.S. employment is still 6.5% smaller than it was in February, the month before the pandemic caused businesses across the U.S. to close. But employment in warehousing and related industries has boomed. Warehousing and storage jobs have grown by 97,000, or 8%, since February. Courier and messenger jobs—workers who deliver goods—have expanded by 182,000, or 22%.

Read More [[link removed]] U.S. Exports, Imports Rise For Fifth Month As Shipments To China Hit A Record

U.S. exports and imports both rose for a fifth straight month in October, reflecting a continued recovery in global commerce driven by a strong economic rebound in China.

Exports from the U.S. rose 2.2% to $182.0 billion from the previous month, while imports rose 2.1% to $245.1 billion, the Commerce Department said Friday. The trade deficit widened to $63.1 billion from $62.1 billion. The figures were adjusted for seasonal variations.

U.S. goods exports to China rose to a record $14.72 billion in October from $11.54 billion in September and surpassing the previous high of $13.63 billion set in December 2017. Imports from China rose to $44.83 billion from $41.21 billion, hitting the highest level since December 2018.

Global trade has recovered more quickly than economists expected since widespread lockdowns were imposed in March and April, but activity remains well below pre-pandemic levels. Economists say the outlook for trade remains uncertain amid the acceleration in the spread of the virus globally, but particularly in the U.S.

“Virus transmissions remain elevated and widening restrictions on activity, at home and abroad, have the potential to disrupt supply chains and weigh on demand,” Rubeela Farooqi, chief U.S. economist for High Frequency Economics said in a research note.

Read More [[link removed]] Covid Shrinks The Labor Market, Pushing Out Women And Baby Boomers

Since spring lockdowns were lifted, the demand for workers has snapped back faster than many economists expected. Between April and October the unemployment rate fell by more than half, to 6.9%, undoing more than two-thirds of its initial rise.

But unemployment data overstates the health of the labor market because the supply of people either working or looking for a job has declined. The U.S. labor force is 2.2% smaller than in February, a loss of 3.7 million workers.

The labor-force participation rate, or the share of Americans 16 years and over working or seeking work, was 61.7% in October, down from 63.4% in February. Though up from April’s trough, that is near its lowest since the 1970s, when far fewer women were in the workforce.

The supply of workers and their productivity are the building blocks of economic growth. A smaller labor force leaves fewer workers to build machines and clean tables, restraining the economy’s long-term prospects.

“If we don’t get all the workers back, we can never have a V-shaped recovery,” said Betsey Stevenson, economics professor at the University of Michigan, referring to a quick and sustained bounce-back after a sharp decline. “Everybody should be worried about making sure that we don’t leave workers behind,” she said.

Read More [[link removed]] The Stock Market Is Soaring To New Heights. But Most Americans Aren't Along For The Ride.

There are times when numbers tell a story, and this is one of them. And sometimes, as in this case, those numbers can have both social and investment significance.

Let’s start with two numbers: $4.3 trillion and $908 billion. The first represents how much the stock market rose in November, according to Wilshire Associates, an investment management firm whose Wilshire 5000 Total Market index measures the value of the entire U.S. stock market in dollars, not in points like the Dow industrials or S&P 500.

The second is the size of a proposed economic stimulus package to help the needy that was floated by a bipartisan group of senators and is being negotiated in Congress.

Let me show you two more numbers that you’d be unlikely to compare with each other: $5.2 trillion and 5 million.

The first number is how much the U.S. stock market rose for the first 11 months of the year, according to Wilshire. The second is the increase in the number of unemployed people over the same period, according to the Bureau of Labor Statistics. And that BLS number, while down an encouraging 12.4 million from its April peak, is probably understated because it doesn’t include people who are staying home to care for family members but would otherwise be seeking employment.

Read More [[link removed]] California May Have Sent $1 Billion In Jobless Benefits To People Outside The State, D.A. Warns

California may have sent a billion dollars or more in unemployment benefits to people out of the state, including to other countries, and much of it may be based on fraudulent claims, several prosecutors warned Thursday.

District attorneys from nine counties including San Diego, Sacramento and Riverside sent a letter to Gov. Gavin Newsom urging him to use his executive powers to increase resources investigating widespread unemployment benefit fraud involving prison inmates and to immediately check jobless claims against personal data of those behind bars.

The prosecutors told the governor they have received “unverified information” that the state Employment Development Department has distributed at least $1 billion in unemployment benefits to out-of-state claimants.

“We are deeply concerned that the fraud will continue to grow exponentially,” the district attorneys wrote to the governor.

Read More [[link removed]] Weak Jobs Report Points To Faltering Recovery And Race For A Vaccine

In a troubling new sign that the U.S. economy may be stalling, job growth slowed dramatically in November and more people gave up looking for work altogether.

The report released Friday, which showed that employers added only 245,000 jobs last month — down from 610,000 in October — was the latest sign that the country is essentially in a race between the surging COVID-19 virus and efforts to deploy an effective vaccine on a large scale.

“Today’s report is both a wakeup call and a warning,” said Nick Bunker, economic research director at Indeed, an online jobs site. “Progress in the labor market has slowed at the worst possible time.”

Given the resistance to mask wearing and social distancing among many Americans, experts’ predictions for a dark medical front may be matched by equally grim news on the economic front.

“We’re only beginning to see this recessionary dynamic, this downward spiral,” said Erica Groshen, an economist at Cornell University and former commissioner of the Bureau of Labor Statistics, which generates the monthly employment report.

Read More [[link removed]] California Politicians Can't Explain Their COVID-19 Rules. There's A Reason For That

Every now and then, I take a drive down to Hermosa Beach to calm my COVID-frayed nerves by looking at the waves — only to find myself riled up again by looking at the people.

They stroll by, many of them maskless. They pay absolutely no attention to the massive signs that remind people to obey the statewide order to cover their faces. They also pay absolutely no attention to the people hired to enforce the mask order. Instead, these men and women, dressed in bright yellow vests, seem to spend their time standing around, making halfhearted attempts to hand out tickets. Tickets that are often tossed in the nearest trash can.

Nine months into this coronavirus scourge, with cases again surging to terrifying levels, California is losing buy-in even from the pandemic-believing public — and it’s not hard to understand why.

Gone is any semblance of clear communication of a clear plan with clear reasoning about how best to beat back COVID-19. In its place has emerged a haphazard, layered mess of rules and restrictions. And, for the most part, our elected leaders have no one to blame but themselves.

Read More [[link removed]] Local Leaders Say No COVID Dollars Left To Help Workers Through New Shut Down

It’s unclear exactly when California’s new stay at home order will impact the Central Valley, but it could be just a matter of days.

The trigger? ICU bed capacity across 12 counties that make up the newly designated San Joaquin Valley region. Once available capacity falls below 15%, the stay at home order is initiated.

These services would then have to close completely within 48 hours:

Indoor and outdoor playgrounds

Indoor recreational facilities

Hair salons and barbershops

Personal care services

Museums, zoos, and aquariums

Movie theaters

Wineries

Bars, breweries, and distilleries

Family entertainment centers

Cardrooms and satellite wagering

Limited services

Live audience sports

Amusement parks

Sectors that can stay open: Schools that have received a waiver, critical infrastructure, retail stores (at 20% capacity), and restaurants (for take-out and delivery only).

Local restaurant owners started texting leaders Thursday morning before Gov. Gavin Newsom’s announcement, saying they don’t know how much longer they can survive because they’re already losing money every day.

Read More [[link removed]] Florida Gov. DeSantis Says Disney Layoffs Mainly Hit California, Though Thousands Of Orlando Staff Lost Jobs

Florida Gov. Ron DeSantis said Monday that the bulk of Disney's layoffs are in California despite the fact that Orlando reportedly already cut at least 18,000 jobs.

During a press conference Monday, DeSantis said of Disney's 32,000 planned layoffs, most were in California because the state "will not let the theme parks operate."

However, the Sunshine State accounted for 56% of the layoffs, according to state records and reports from Disney union leaders obtained by the Orlando Sentinel.

The layoffs come after Disney parks closed in the spring in order to stem the spread of infections. However, while the Florida parks reopened this summer, California parks remain shuttered until the company is given guidance on how to reopen safely.

Even with some parks operating, the "limited capacity due to physical distancing requirements" and the uncertainty of the duration of the pandemic forced the company to reduce its workforce, Josh D'Amaro, Disney's chairman of parks, experiences and products, announced in September.

Read More [[link removed]] Regional Report Predicts The Southern California Economy Could Rebound

Despite the continuing COVID-19 pandemic, the national economy has made significant positive steps forward since the months of April and May, according to the executive summary of a report released Monday by the Southern California Association Governments (SCAG). The SCAG region has followed a similar trend.

In the six counties represented by SCAG, the largest regional planning organization in the nation, unemployment rates reached a high of 18.1% in May before gradually declining back to 12.7% in September. SCAG includes 191 cities, including Redlands.

Due to government-mandated shutdowns and stay-at-home orders, industries such as Leisure and Hospitality, Information, Nondurable Goods and Retail Trade were hardest hit. As the region rebounds, Leisure and Hospitality, Retail Trade, and Construction industries in the SCAG region have bounced back.

Prior to the pandemic, the Riverside and San Bernardino counties were generating an average of over 43,000 in new jobs for a compound annual growth rate of 3.3%. If the current pace of job loss continues, Riverside and San Bernardino counties stands to lose 102,100 jobs in 2020, a decrease of 6.6%. Assuming that the pandemic begins to improve, a vaccine is created and accepted, and additional COVID-19-related stimulus is passed, Riverside and San Bernardino counties are estimated to recover 62,900 jobs or growth of 4.2 percent, with total employment reaching more than 1.5 million by 2021.

Read More [[link removed]] State To Offer $500 Million In Grants, Tax Deferrals, Other Covid-19 Relief For Businesses

More financial relief is on the way for businesses taking repeated hits from the Covid-19 pandemic, under a series of programs announced by Gov. Gavin Newsom on Monday.

The announcement arrives as many parts of California are on the cusp of seeing more restrictive stay-at-home orders return as Covid-19 cases are spiking across the state.

California is developing a new $500 million Covid Relief Grant program for small businesses impacted by the pandemic. The program would provide grants of up to $25,000 to small businesses and nonprofits. The funds would be distributed through community development financial institutions and could arrive by early next year, according to the governor’s office.

California’s Office of the Small Business Advocate is “working quickly to establish the program,” according to the Governor’s Office of Business and Economic Development.

The state is also rolling out tax relief options. The temporary tax deferrals include an automatic three-month income tax extension for taxpayers filing less than $1 million in sales and the expansion of interest-free payment agreements to companies with up to $5 million in taxable sales, according to the governor’s office. The deferrals would also provide expanded interest-free payments to industries heavily impacted by the coronavirus restrictions such as bars, restaurants, hair salons and personal services businesses.

Read More [[link removed]] Report: California Tourism Economy Cut In Half In 2020 Because Of Coronavirus Pandemic

Proving to be an unwelcome visitor to travel economies like the North Bay, COVID-19 has slashed in half tourism spending in California.

Tourism spending is expected to plummet to $66.1 billion by the time Californians exit 2020. That’s a 54% drop from 2019’s high mark of $144.9 billion, which edged out 2018 by 3.2%, according to a Visit California report released by the state tourism bureau.

Recovery to reach pre-COVID-19 levels for the tourism economy is not expected until 2024, the report indicates. 2021 will see domestic travel return by 74%, while international visitor spending will just squeak by with 54% of 2019 figures.

“We’re not surprised. As far as tourism, this is what we’ve been hearing,” California Chamber of Commerce spokeswoman Denise Davis said. “It’s sad. California is so beautiful, but this is our reality.”

The coronavirus reckoning for public health and the economy has prompted many North Bay leaders in the hospitality and leisure industries to retool, scale down, expand in the street and lobby lawmakers for help.

The hope is the plights of and requests from hard-hit businesses like wineries don’t fall on deaf ears.

Read More [[link removed]] Will California's Small Businesses Survive Another COVID-19 Surge Without More Help?

For 27 years, along an industrial strip by the 405 Freeway, Go Kart World has offered family fun with six racetracks and an arcade. But as news of the coronavirus spread in February, customers fled. And in March, health officials shut down the business.

“I was freaking out,” said Cynde Harris, co-owner of the Carson business with her husband, John. “Our season runs February through September. We were losing like $1.4 million. There’s no way to recover from that.”

The Harrises furloughed 35 workers, and over the next few months, they managed to snag two federal loans totaling $270,000. In October, a $30,000 grant from Los Angeles County came through. Go Kart World reopened this month.

But Harris is worried. “You can only take on so much debt,” she said. “It’s bitter medicine to be told, ‘You can borrow the money,’ when a government closure just drove a truck through your business.”

When the coronavirus began its death march through the economy last spring, Congress’ $2.2-trillion CARES Act buoyed California’s small businesses like Go Kart World with billions of dollars in loans and grants. But rescue efforts are now faltering as the pandemic reaches catastrophic new heights.

Read More [[link removed]] Energy and Climate Change California Environmental Groups Tell Biden Not To Pick Mary Nichols For EPA

A coalition of some 70 California environmental justice groups, national environmentalists and other organizations sent a letter to Joe Biden's transition team Thursday asking the incoming president to avoid picking Mary Nichols as head of the Environmental Protection Agency.

Nichols has been reported to be Biden's top candidate to lead the EPA.

The outgoing chair of the California Air Resources Board, Nichols is "not the right person to oversee and implement climate and environmental programs for the country" because of her "bleak track record in addressing environmental racism," the groups wrote.

Miya Yoshitani, executive director of the Asian Pacific Environmental Network, said, "The administration should choose someone else." Nominating Nichols, she said, "would send the wrong signal" in terms of the Biden administration's approach to solving the climate crisis.

Read More [[link removed]] Ford Calls On Automakers To Support California Fuel Economy Deal

Following General Motors' U-turn in supporting the Trump administration's efforts to strike down California's ability to set emissions standards, Ford signaled Monday it wants others to join them both. According to a letter seen by Reuters, the Blue Oval urged other automakers to support the compromise deal that it and a handful of other companies hashed out last year.

Ford declined to comment directly on the letter, but a spokesperson told Roadshow, "From the beginning we've said that our agreement with California is the best path forward for the environment, our customers and the short and long-term health of the auto industry. We believe this agreement should be the foundation for new regulations as the Biden administration considers stronger fuel economy standards in 2021."

If you don't follow regulatory changes to emissions and fuel economy every day, here's the lowdown. The Obama administration put into place Corporate Average Fuel Economy Standards that regulated automakers to increase fuel economy by 5% annually through 2026. It would have left carmakers with an average fleet-wide fuel economy rating of 54 miles per gallon. Instead, the Trump administration slashed the increases to just 1.5% each year, or 40.4 mpg in the same timeframe.

The voluntary California agreement worked out to fuel efficiency increases of 3.7% each year starting in 2022 -- lower than the Obama administration's goal, but far more aggressive than the Trump administration's. It's this framework Ford believes could serve as a blueprint for a single, nationwide regulation.

Read More [[link removed]] There Is No Revenue Neutral Carbon-Dioxide Tax

Each time politically influential elites propose a tax on carbon dioxide emissions to fight climate change, economists and other analysts demonstrate such a tax will impose far more harm on society than the climate harms the tax is intended to avoid. As a result, Congress has repeatedly rejected attempts to impose a carbon dioxide tax, even passing resolutions putting a majority of the body on record as opposing it. Despite that clear opposition, Joe Biden is raising anew the specter of a carbon dioxide tax.

Biden is a climate change true believer, stating repeatedly human fossil fuel use is undeniably causing catastrophic climate change that poses an “existential threat” to human existence. The names Biden has floated for his Cabinet picks and key appointees, such as Janet Yellen for Treasury Secretary, Anthony Blinken as Secretary of State, and former Secretary of State John Kerry as a special envoy on climate, reflect his commitment to imposing drastic policies to fight climate change.

As with fanatics and zealots throughout history, the fact that data indicate Biden and his prospective appointees are wrong and climate change, though occurring, is not catastrophic, does nothing to dissuade them from their blind faith that anthropogenic climate change must be stopped at all costs. Nor are Biden and his allies—multimillionaires with multiple homes, multiple cars, yachts, and private jets—apparently bothered by the fact their lifestyles don’t reflect their purported fear that large carbon footprints are dooming the world. There is a fundamental disconnect between their professed fear of a climate change disaster and how they live their lives. Climate hypocrisy is the modus operandi of those expected to populate a Biden administration.

Read More [[link removed]] Workforce Development How California's Community College Vocational Programs Have Adapted To COVID-19

Prior to the coronavirus pandemic, 300 people a day got food and snacks from the student-run bakeshop, cafeteria and restaurant at Diablo Valley College.

The three eateries collectively let students in the school’s culinary arts program practice their vocation while earning $250,000 in annual revenue that went back into the program.

But when the pandemic thrust California into a lockdown, the student production of pastas, breads, entrees and breakfast items went dormant at Diablo, instruction moved online and college campuses across the state sat empty.

Because of its hands-on nature, career technical programs like Diablo’s culinary program have struggled to adjust to severe restrictions on in-person learning. More than 75,000 California Community College students in the prior school year earned a degree, certificate or completed an apprenticeship tied to a vocational discipline, according to California Community Colleges data.

Read More [[link removed]] Retiring CSU Chancellor Says Pandemic Changes Can Benefit Higher Ed

When California State University Chancellor Timothy White announced in October 2019 that he would be retiring this year from the 23-campus system, no one imagined the universities would be facing an unprecedented pandemic, budget cuts and nearly a year of mostly online learning.

Despite those changes, the CSU boasts higher graduation rates than when White first took the helm in 2012, retains a higher percentage of first-year students, and has its largest enrollment ever. In January, Fresno State President Joseph Castro will replace White.

EdSource reporter Ashley A. Smith talked with White on Dec. 1. The following is a lightly edited transcript of the conversation:

EdSource: Do you feel encouraged or discouraged by the Graduation Initiative 2025 progress? The four-year rate for first-time freshmen increased to 31% from 27.5%, and the goal is to reach 40%. But the six-year rate stayed the same as last year at 62% and the goal is 70%.

Chancellor White: When you look at the year-over-year improvements in graduation rates, the ones you just described as well as the those for transfer students, we are right on schedule making progress towards our 2025 goals.

Read More [[link removed]] California Lawsuit Charges 'Inequitable' Distance Learning; Chancellor Tim White's Exit Interview

California is violating the constitutional rights of low-income children of color who are bearing the brunt of the shortcomings of distance learning statewide through deficient technology and ineffective instruction, a lawsuit filed this week is charging. The State Board of Education and the California Department of Education, in particular, have failed to prevent and address these inequities, the public interest law firm Public Counsel alleges in Cayla J v California, named for an 8-year-old Oakland student. We speak with Jesselyn Friley, a lead attorney in the case, who explains the need for the lawsuit and possible remedies.

Plus, in a departing interview with EdSource, CSU Chancellor Tim White, who is stepping down after 8 years, relates that despite the pandemic, the 23-campus system had historically high first-year student retention rates, and is on target to meet ambitious 4- and 6-year graduation rates by 2025. He also discusses the challenges ahead for next year’s budget.

Read More [[link removed]] Pandemic's Spread In California Upends Plans For Return To School In January--Or Beyond

The surge in Covid-19 cases in California is coming at exactly the wrong time for school districts contemplating reopening schools for in-person instruction.

Before the surge, the majority of students in the state were still getting classes via distance learning, but schools were reopening at an accelerating pace. Many others districts were looking to the beginning of January, after the winter break, as the date when they could possibly bring more students back to school.

With January just a month away, those plans are now shrouded in uncertainty. Especially in the wake of Gov. Newsom’s grim projections on Monday, including a possible stay-at-home order, the odds are low that the virus will be sufficiently under control, and counties will get the green light to bring students back to school after the winter break.

Over the past few weeks, Santa Ana Unified, one the state’s largest districts with 50,000 students, had begun bringing small groups of students to campus for its “Learning Labs”. However, the district planned to open in January, teaching more students using a hybrid model combining in-person with distance learning. But those plans are now on hold, school officials said.

Read More [[link removed]] Infrastructure and Housing 4 Steps To Change The Equation On Affordable Housing

This year’s election results underscore what we’ve known all along – Californians want affordable homes, health and prosperity for all.

After years of mounting failure to address affordable housing and homelessness at the scale of the need required, 2021 will be our big chance. But as progressives found following the 2008 election, it’s all too easy to squander the chance. As Dr. Martin Luther King Jr. said, “change does not roll in on the wheels of inevitability, but comes through continuous struggle.”

We must take four steps to ensure our struggle yields change rather than disappointment.

First, we must settle our differences and find common ground, from labor standards to NIMBYism. We cannot afford for a strong agenda to once again be derailed by infighting and disputes. Voters want us to find common ground to advance real solutions. It takes everyone to win, and we all must row in the same direction to make an impact.

Read More [[link removed]] Prompted By Pandemic, Some States Buy Hotels For The Homeless

It's a bold goal in a place with a major housing crisis: Get as many as 2,000 unsheltered Oregonians into homes this winter by spending $65 million in state money to buy up to 20 underused hotels.

Oregon’s Project Turnkey, modeled after a similar program in California, was born out of the need to provide shelter and practice social distancing during the pandemic. The economic effects of the pandemic and wildfires have compounded a preexisting homelessness and affordable housing crisis on the West Coast.

Temporarily housing homeless people in hotels is nothing new. Housing and social service agencies often use hotel vouchers during extremely cold weather or natural disasters. Many communities have used federal CARES Act money to provide temporary housing in hotels.

But by systematically purchasing hotels outright, Oregon and California have taken it a step further. When the pandemic ends, the two states will continue using hotels as emergency homeless shelters, transitional housing or permanent affordable housing. In Oregon, nonprofit housing and social services providers will own and run the hotels-turned-housing.

Read More [[link removed]] San Francisco Passes ‘Long Overdue’ Ordinance Requiring Landlords To Report Vacancies

The ability to work remotely, particularly during the COVID-19 pandemic, has led to a surge of vacancies in San Francisco’s apartment stock. A new law will allow the city to track just how many units are sitting empty.

“This is long overdue,” Supervisor Sandra Lee Fewer said as her ordinance passed unanimously Tuesday.

For several years, San Francisco has held the distinction of being the most expensive city in the world, but tenants have no way of knowing if they’re paying more than their next-door neighbor. Nor does the city have a record of how many apartments owned by corporations and sitting empty, keeping speculation high. That will all change by July of 2022.

Under this new ordinance, landlords will be required to report the following to the city every year: The approximate square footage of each unit, whether it’s vacant or occupied, and the date of any vacancies over the past 12 months, plus each tenant’s base rent. Failure to comply means a landlord’s license to raise the rent will be suspended.

Read More [[link removed]] Councilman Wants L.A. To Buy Apartment Building Using $46 Million In COVID-19 Aid

Los Angeles City Councilman Gil Cedillo is pushing for the city to spend up to $46 million in federal coronavirus relief funds to buy an apartment building in Chinatown, saying the move would spare dozens of tenants from facing steep rent hikes.

In a proposal filed last week at City Hall, Cedillo said he wants to use money from the federal Coronavirus Aid, Relief and Economic Security Act to purchase Hillside Villa, a 124-unit building whose owner is seeking big rent increases. Such a move, Cedillo said, would keep tenants in their homes during a health and housing crisis.

“For us, it’s a good deal. The building’s built. The residents are already moved in. I recognize it’s extraordinary, but these are extraordinary times,” said the councilman, whose district stretches from Highland Park to Westlake.

Still, there’s a potentially big obstacle ahead: The city’s supply of COVID-19 relief money is quickly running out.

Mayor Eric Garcetti and the council have allocated nearly all of the $694 million in CARES Act money received by the city, devoting the funds to such initiatives as homeless housing, rent relief and aid to cover unpaid utility bills, according to a report from the city’s financial analysts. About $31.7 million is still available, said City Administrative Officer Rich Llewellyn, the city’s top budget official.

Read More [[link removed]] Families Occupying Caltrans-Owned Homes In Southern California Forcibly Removed By CHP

More than a dozen families and individuals who occupied several El Sereno homes owned by Caltrans, the state transportation agency, were forcibly removed as part of an operation conducted by the California Highway Patrol that spanned from Wednesday and into the Thanksgiving weekend.

CHP officers faced off with activists who came out in the last three days to support several families who moved into 20 vacant homes along Sheffield Avenue, Lowell Avenue and several other streets.

The families, part of a group called Reclaim and Rebuild Our Community, moved into the homes on Wednesday, the day before Thanksgiving, and were soon met by highway patrol officers who were deployed at the request of Caltrans officials.

Activists turned out in large numbers in an attempt to block CHP officers at various homes that were being occupied.

Several videos posted on various social media sites from the standoff between dozens of officers and a group of activists showed people being escorted or dragged from the homes. One young person in one video appeared to have been hogtied and carried out by her feet and arms by CHP officers on Wednesday evening.

Read More [[link removed]] Editorial and Opinion With The Election Over, How Do We Achieve Real Change?

2020 has been a year like no other. We’ve endured a lot this year, and it isn’t over yet. But we’ve learned a lot about our democracy, the regional power-building we need to do, and the work that lies ahead.

More than 150 million people voted nationwide, and a surge of young people of color turned out around the country. In California, more than 17.5 million people voted. That’s 3 million more than in 2016, although this number is still less than 70% of eligible voters.

America elected a president, and our first woman of color vice president, who put a climate justice agenda front and center in their campaign. And Californians voted out candidates and incumbents who were backed by Big Oil, sending climate justice champions to Sacramento.

This shouldn’t come as a surprise. When the California League of Conservation Voters conducted polling earlier this year, we found that California voters believe that the environment (73%) and climate change (64%) should be priorities for our state. Concern about the climate crisis is especially high among younger voters with 76% of 18- to 29-year-olds rating this issue to be a priority.

Read More [[link removed]] Portable Benefits Are The Future Of The Gig Economy

The decisive win for Proposition 22 in California on November 3 shows a likely majority of voters—even in the most progressive states—see the value of flexible work that allows people to generate income on demand. That value has only grown amid an ongoing economic crisis that has hammered employment in nearly every industry in New York and left thousands searching for immediate opportunities to earn income.

Rather than repeat California’s tumultuous past year, New York’s leaders should learn from it and deliver what voters are asking for: a bold plan to ensure that independent workers in all sectors can access universal, portable benefits, gaining financial security without losing flexible work.

It was just over a year ago that California passed Assembly Bill 5 into law, which established strict guidance on classifying workers as independent contractors and challenged the ability of app-based platforms to operate. California’s new ballot measure reverses course, allowing app-based drivers to work as independent contractors while extending a range of benefits—and earning the support of workers, tech companies, and voters.

Read More [[link removed]] Small Businesses' Economic Recovery Will Hinge On Digital Technologies

This year has been defined by uncertainty — in homes, businesses, schools, and communities across the state. But one constant, keeping our economy and society afloat, has clearly emerged: technology. As lawmakers get back to work after a heated campaign cycle, they should recognize the value of technology platforms at the community level, embrace the role they will no doubt continue to play in our economic recovery, and avert any ill-timed rhetorical and regulatory moves against our state’s most innovative sector.

A state like California deserves measured leadership on technology-related issues. Southern California, in particular, has quickly established itself as a home to some of the most innovative and disruptive entrepreneurs in the nation. Consider one recent study, which found that nearly 1 in 10 jobs in the San Diego market are supported by the technology sector. While surging growth in the technology space has facilitated significant job and economic growth in our area, the robust small business community remains the backbone of Southern California — a community that is, thankfully, more digitally empowered today than ever before.

It is these small businesses, in particular, who have demonstrated an incredible level of grit through the pandemic. But beyond this fighting spirit, it’s impossible to ignore the role that technology platforms have played in keeping the lights on at the Oceanside community’s favorite restaurants, gyms, coffee shops, and everything in between.

There is certainly no “good time” for a global pandemic that upends our economy and disrupts operationsOpinion logo for hard-working small business owners. But the level of resiliency in the small business community today is unprecedented, largely thanks to recent growth in the accessibility and affordability of online platforms. A recent study from the Connected Commerce Council found that 71% of small business owners in California were comfortable with digital tools before the pandemic — above the national average.

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