Monday, May 16, 2011
Contact: Denise Davis

SACRAMENTO, CA — The Governor's May Revision confirms that a comprehensive budget solution is necessary for California's economic recovery.

"Certainty is the foundation for economic recovery and a comprehensive budget solution will create the certainty that job creators need," said Allan Zaremberg, President and CEO of the California Chamber of Commerce. "Clearly, any long-term solution to the state's fiscal challenges will be found in growth and economic development."

The May Revision demonstrates that future revenues will be volatile and uncertain. While personal income taxes are above forecasts, revenues from sales and corporate taxes are weak. According to Zaremberg, the only path out of this on-going crisis is a bi-partisan, comprehensive budget solution that solves both short and long term budget issues. The elements of a comprehensive solution will do several things:

Recognize and correct the costly impact that our regulatory climate has on jobs here;

• Greatly improve our ability to compete with other states and globally, including support for K-12 and higher education;
• Reform state government; and,
• Ensure that California’s budget only relies on sustainable revenues and that we cannot and do not spend more than we have going forward.

"The Governor and legislators face a unique opportunity to restore confidence to an economy and an electorate both worn out from this seemingly endless budget crisis," said Zaremberg.

The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California's economy and create jobs. Please visit our website at www.calchamber.com.

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