Chamber President Allan Zaremberg (right) and California Business Roundtable President Bill Hauck unveil the Chamber's Economic Stimulus Package

(May 23, 2003) - The California Chamber released an economic stimulus package yesterday, detailing the steps it has been advocating to reinvigorate California’s stagnant jobs climate.

The package includes reforms in the areas of workers’ compensation, unemployment insurance, energy rates, and a wide range of others. It also calls for the Legislature to ‘do no more harm’ to California’s small businesses.

“The best way to stimulate our economy and help ensure adequate funding for essential programs and services – such as public safety and education — is to create more jobs. This economic stimulus package would be a giant step towards fiscal health for California’s stagnant economy,” said Ray Holdsworth, chairman of the California Chamber and president of AECOM Technology Corp. “By reforming our workers’ compensation system and bringing down the skyrocketing costs of doing business in California, we will encourage more businesses to open and expand in our state.”

The package calls for:

• Major overhaul of California’s broken workers’ compensation system, aiming to bring costs under control while ensuring that injured workers receive the care they need
• Extension of the Manufacturers Investment Credit
• Prevention of a multibillion-dollar tax increase by temporarily suspending the third year of unemployment benefit increases until the fund becomes solvent
• Reform to California’s unique eight-hour workday law
• Reform of extortion lawsuits using California Business and Profession Code 17200
• Easing of skyrocketing energy rates in proportion to the increases businesses have recently endured
• Reforms to ensure that taxes disguised as fees require a 2/3rds vote
• Enacting a budget this fiscal year that does not require future tax increases in the 2004-05 fiscal year
• Recapturing dedicated transportation funding to create construction jobs and provide congestion relief
• Legislators to ‘do no more harm’ and reject proposals currently being considered that would further harm California’s jobs climate, such as SB 2, legislation that would mandate a multi-billion dollar health care tax increase on employers

“California’s world class cities and universities, diverse and skilled workforce, and the access our state offers to multiple ports and airports are just a few of the reasons businesses of all sizes have chosen to locate here. To keep their doors open, we must improve our business climate,” continued Holdsworth. “Economic stimulation for California’s jobs climate will put us on the road to economic recovery – and job creation for all of California’s working families.

“California attracts businesses, families, and tourists for a multitude of reasons. By releasing this economic stimulus package, the California Chamber of Commerce hopes to work with California’s leaders to ensure that California continues to be a great place to work, live, visit and do business,” concluded Holdsworth.

View the full Economic Stimulus Package.

Staff Contact: Richard Costigan