(April 27, 2009) Recently, the California Chamber of Commerce released our annual list of job creator bills. This list (found at www.calchamber.com/jobcreators) includes proposed legislation that will reduce costs to employers, provide sensible regulatory policies, reform an out-of-control legal climate, create more construction jobs and spur investment in California companies. Currently the list includes 14 proposals, but we hope to add many more bills as the legislative session continues.
About the same time that our job creator list was released, new unemployment data came out showing that California’s unemployment rate is 11.2 percent, with the pace of job loss in this recession occurring at a deeper and faster rate than during any of the other recessions in the past three decades.
Jobs/Economic Impact?
While many things about this recession are out of our control, it is clear that California has suffered more than most other states. Not only is it about time legislators took notice, but it is time for meaningful action.
Whenever an issue is before the Legislature or the Administration, the first question should always be whether the solution presented will have a positive impact on jobs and the economy. If not, let’s all look for alternatives. In today’s severe recession, the economy and jobs must be the litmus test in which to measure any and all solutions.
Needed: Commerce Experts
CalChamber’s job creator list, alongside the devastating unemployment news, makes it clear there are several things we need to do to make the return of economic vitality real in our state.
In addition to passing job creating legislation like the bills outlined on our list, the Legislature should invest in recreating the Department of Commerce to give the administration staffing and tools to help businesses create and maintain private sector jobs.
Creating a team of experts to facilitate the resolution of both state and local government issues in an expedited time frame is needed now more than ever. The ability of government to drive commerce, rather than to act as an adversary to business, will be key to more jobs here in the future.
Economic Impact Committee
In addition, the Legislature should create an “Economic Impact Committee” that would review all bills that pass policy committees to determine if a proposal has an impact on the economy and would cost jobs.
Currently, both the Assembly and Senate have Appropriations committees that review the fiscal impact of proposals on government and reject legislation that the government can’t afford.
Because cost is the most important indicator of whether a business will add future jobs here or somewhere else, why not have a similar process to shine a light on bills that our economy simply cannot afford?
Next month, CalChamber will release our annual list of job killers—legislative bills that are simply too costly for employers and our economy to withstand.
Our hope is that the job killer list will be short and the job creator list long. Legislators must end the lip service that is paid to job creation and economic recovery efforts in the Capitol. Tough decisions must be made. Now is not the time for business as usual.
Allan Zaremberg is president and chief executive officer of the California Chamber of Commerce.
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