The California Chamber of Commerce yesterday voiced concern about the budget plan unveiled by Lieutenant Governor Cruz Bustamante, because the plan calls for billions in tax increases on businesses, including multibillion-dollar increases in business property taxes and the implementation of a multibillion-dollar health care mandate on employers.

'Balancing the budget on the backs of our businesses will only drive additional jobs out of California and further harm our stagnant economy,' said California Chamber of Commerce President Allan Zaremberg. 'Further, the proposals do nothing to address the underlying problems facing California's economy. In order to solve our budget woes, we must stimulate our economy and job creation to generate the revenues necessary to fund essential programs like education and public safety.'

The Chamber has consistently highlighted the need to stimulate California's economy to solve California's budget crisis, because job creation will generate more revenue to fund programs and services.

'Businesses come to our state for a variety of reasons - a skilled and diverse workforce, world class cities and universities and a great quality of life are just a few of them. But we must work to reinvigorate our economy and provide other incentives to keep businesses in our state,' continue Zaremberg. 'This proposal only makes our business climate problems even worse by strapping employers with additional costly mandates.'

'In order to balance the budget, California's leaders instead must focus on stimulating job creation and keeping businesses here to generate revenues. California's severely broken workers' compensation system must be completely overhauled, and many anti-jobs policies unique to California must be reformed,' said Zaremberg. 'The proposals highlighted today will add billions more to our already skyrocketing business costs, which are driving companies to neighboring states.'

The Chamber's Economic Stimulus Package outlines essential reforms - including an overhaul of our severely broken workers' compensation system, a suspension of the 3rd year of unemployment insurance tax increases until the fund becomes solvent, and reforms to California's unique 8-hour overtime rule - to help stimulate our economy. The package also includes a call to 'do no more harm' to California's stagnant economy by stopping proposals that will further hamper job creation.

'The national spotlight currently on California highlights the great reasons to live and work in our state, but also sheds light on the problems plaguing our businesses,' concluded Zaremberg. 'We hope that whoever is governor on October 8th will work with the business community to create jobs for all Californians that want one.'