IRVINE, CA--(Marketwire - November 7, 2008) - The Orange County Business Council (OCBC) applauds Governor Schwarzenegger's leadership today in calling a special session to address the $11.2 billion shortfall developing in the recently approved state budget. The state's rapidly growing deficit must be addressed once again with program cuts, and a powerful economic stimulus package geared towards jobs creation and promoting investment. OCBC encourages the Legislature to quickly come to consensus with the Governor on these tough issues.
"It was not difficult to project that just six weeks after signing this year's budget, our elected leaders would be at it again. This time, they must take on real regulatory reforms," said Lucy Dunn, President and CEO of the Orange County Business Council. "The business community must know what it's paying for before the bill comes due. Our leaders need a comprehensive assessment of government spending and regulatory mandates to be scaled back so that businesses large and small can have certainty. Job-killing laws are smothering the creation of new business, keeping us in traffic gridlock, forcing layoffs and prohibiting jobs creation."
The Business Council calls on the Governor to use his emergency powers for real regulatory relief, to temporarily suspend targeted regulations and statutes, and hasten the rebuilding of the state's economy. Following the 1994 Northridge earthquake, Governor Wilson used emergency powers to temporarily suspend regulations and statutes in order to rebuild Los Angeles' shattered freeway system. Jobs were created, roads were repaired, bridges built, and traffic was relieved in record time, all to the amazement of the business community.
OCBC contends that the relatively quick recovery that followed presents reasonable precedent and a clear lesson to policymakers looking for innovative solutions in the current economic climate. Identifying and easing regulations and statutes that inhibit growth can mean a dramatically faster and less costly recovery.
While the state fiscal crisis is a clear priority, OCBC also praises the Governor for initiating reforms allowing employees and employers flexibility to determine appropriate rest and meal periods. The Governor's effort to promote public-private partnerships will also provide a much needed stimulus for infrastructure construction and the jobs these projects create. The Governor's plan to keep folks in their homes is also worthy of support.
"Capital follows certainty. There is no certainty now with a state budget in shambles and the financial industry itself in restructure. Streamlining regulations and promoting increased collaboration between the public and private sectors is the surest way to promote investment, avoid risk, give certainty and stimulate growth," added Dunn.
The following are additional measures OCBC urges the Governor and Legislature to implement:
-- Streamline, and, as appropriate, temporarily suspend CEQA
environmental review of infrastructure projects; including construction of
waterways, roads, housing and hospitals.
-- Expedite design-build opportunities for all California infrastructure,
expediting the creation of high-paying jobs for labor.
-- At a time when major European allies are suspending global warming
initiatives because of the enormous costs and onerous regulatory mandates,
we call on California to do the same by delaying enactment of California's
Global Warming law, AB 32, and implementation of SB 375 -- a sweeping
measure that limits development and local control of housing and
transportation and will certainly impede the path to a quick recovery.
Contact Information: CONTACT: Robb Korinke Director of Communications 949.794.7225