Economic Stimulus Key to Solving State’s Budget Crisis Says SCLC

From: Southern California Leadership Council (SCLC)
Published: Sat Aug 23 2008

“California's budget crisis underscores the state's critical need for a long term modernization and global competitiveness strategy before it is too late,” said a letter today (Thursday, August 21, 2008) to the legislature from Southern California Leadership Council (SCLC), a business-led-and-sponsored public policy partnership for the Southern California region. The letter was signed by SCLC Co-Chair Floyd Wicks, Co-Chair David Fleming and Ambassador George Argyros.

Governor Arnold Schwarzenegger today is offering the Legislature a compromise proposal on a state budget that SCLC contends is a responsible way to address California's remaining $15.2 billion budget shortfall.

The governor, among his list of budget compromise reforms, proposes an economic stimulus package to stem job losses, facilitate creation of new jobs, and improve tax revenues. The SCLC overwhelmingly supports these key economic stimulus solutions because it:
· Provides statutory authority to develop public-private partnerships with design-build authority to add new, and accelerate existing, infrastructure projects (Caballero (AB 1261) and Niello (AB 2600) bills).
· Expedites the allocation and disbursement of existing transportation, housing and water bond funds to stimulate economic growth and job creation immediately.
The SCLC letter states that, “needed improvement in state tax revenues depends on a vibrant, growing economy and jobs base. The impacts and inefficiencies of our infrastructure backlog threaten not only the state's economic vitality and our quality of life, but the jobs of state employees if declining state revenues and the resulting financial inability to service the debt on state obligation bonds for new infrastructure continue.”

The SCLC also believes that more money invested in clean, efficient new transportation, water, energy and other public projects, means more jobs and more state revenues for further reinvestment. A 2005 study by the Los Angeles County Economic Development Corporation (LAEDC) looks at how to address southern California's critical need for new goods movement infrastructure.

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Company: Southern California Leadership Council (SCLC)
Contact Name: George Mc Quade, V.P. MAYO Communications
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Contact Phone: 818-340-5300

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