March 1, 2011

Corona Valley Chamber Calls For A Different Approach To Budget Cuts

In late 2010, the Greater Corona Valley Chamber of Commerce determined its top three priorities for the year. In 2011, the Chamber will focus primarily on protecting the interests of Corona businesses from negative impacts of the recent healthcare reform law; improving our local business attraction and retention; and, seeking government reforms to ease the costs of doing business.

The Chamber’s first action item in the new year was tackling the impacts of reforming our state budget. The Chamber is concerned with the overall approach to reforming the nearly $25 billion state budget shortfall crisis. Governor Jerry Brown in early January proposed targeting specific programs such as eliminating redevelopment agencies and enterprise zones, and drastically targeting other programs such as cutting Adult Day Health Care services to help close the massive budget deficit. The Chamber strongly opposes this approach.

“The Corona Valley Chamber believes the Governor and the Legislature should approach the budget deficit by putting all possible programs on the table to maximize areas to obtain additional funding and possible cuts,” stated Cynthia Schneider, Chair of the Chamber’s Legislative Action Committee.

Targeting the elimination of redevelopment will kill jobs and economic expansion at the worst possible time, and our state and local economies will suffer long-lasting and irreparable harm if this proposal is enacted. Redevelopment activities support an average of 304,000 full and part-time private sector jobs in a typical year, including 170,600 construction jobs. Also, redevelopment contributes over $40 billion annually to California’s economy in the generation of goods and services.

Targeting programs such as Enterprise Zones that actually provide economic stimulus is the wrong approach, too. The facts are clear, Enterprise Zones provide the needed investment to spark local economic revitalization, development and job growth.

“With record unemployment rates, a prolonged recession and some of the highest income and sales tax rates in the country, Enterprise Zones are needed more today than ever to offset these and other current issues facing California business owners, employees and communities throughout the state,” stated Bobby Spiegel, President/CEO of the Chamber.

Although the City of Corona does not have an Enterprise Zone, the Chamber has a long standing position of supporting them as important tools to spark economic development and business retention. However, neighboring areas do have Enterprise Zones such as the County of Riverside, the County of San Bernardino, the City of Riverside, the City of Colton, and the City of Rialto

The Chamber views Enterprise Zones, and their impact, as a statewide investment. The Enterprise Zones have accounted for over 300,000 new jobs in the past decade which means reduced state spending on social services by creating jobs for economically-disadvantaged people who in turn are often no longer dependent on the state to provide welfare, food stamps and unemployment benefits.

Targeting programs such as Adult Day Health Care services will cause the elimination of more than 7,600 jobs adding $94 million to the state Unemployment Insurance Fund’s largest ever shortfall. Another 13,892 working middle class Californians will be forced to quit their jobs to take care of their loved one, adding to further loss of income tax revenue. Furthermore, the state will be impacted by increased costs as thousands of elderly, mentally ill and Alzheimer’s patients are pushed into overcrowded E.R.s, hospitals and nursing homes for medical crises.

The Chamber will continue to monitor discussions about the future of our state budget crisis and will remain committed to urging the Governor and the Legislature to take into account all possible options when attempting to solve the state budget shortfall.
 

August 10, 2010

Corona Chamber Statement On Recent Democratic Budget Proposal

The Greater Corona Valley Chamber Legislative Action Committee Chair Cynthia Schneider released the following statement today regarding the recent Democratic state budget proposal:
 
“While on the surface the current Democratic state budget proposal seems promising, it contains numerous increases in personal income taxes and the vehicle licensing fee. The business community has continued to signal that raising taxes and fees are not the answers to closing the budget deficit. We need long-term reforms, not one-time tax increases to close a deficit this year only to worry about a deficit next year. Our business community continues to oppose one-time tax increases and asks that the state reduce its spending and begin to live within its means as many businesses have done in these tough economic times.”

February 17, 2009

Corona Chamber Issues Letter of Support to Area Legislators on State Budget Negotiations

The Corona Chamber sent the following letter today to area legislators on the pending state budget negotiations:

Senator John J. Benoit

State Capitol, Room 4066

Sacramento, CA 95814

Via Fax: (916) 327-2187

Assembly Member Jeff Miller

Room 3149, State Capitol
Sacramento, CA 95814
Via Fax: 916-319-2171

Subject:          State Budget Negotiations

Dear Senator Benoit and Assembly Member Miller:

Passing a balanced state budget is not an easy task given the political climate in Sacramento. However, passing a state budget by dipping into the back pockets of hard working Californians is just wrong.  We urge you, and especially the Governor, to fight any effort to raise taxes on a citizenry who have been asked time and time again to invest more and more – while legislative leaders in Sacramento continue to leverage our state’s future.

Finally, on behalf of the Corona business community, we would like to thank both of you for standing firm to oppose any budget proposal that includes tax increases. 

Your leadership in this regard is greatly appreciated.

Sincerely,

Bobby Spiegel

President and CEO

Cynthia Schneider

Chair, Legislative Action Committee

May 16, 2008

Corona Chamber Supports Governor’s Plan to Remedy Out-of-Control State Spending

The Corona Chamber of Commerce supports the Governor’s proposed Budget Stabilization Act. The Act which will create a “rainy day” fund in the state budget. Any surplus in the state budget would be placed into a savings account to be used to balance the budget in years when a budget deficit is projected. Currently, when the Governor signs the state budget, spending is committed. If revenues begin to decrease, the Governor has the option of declaring a fiscal state of emergency and may call a special session of the State Legislature to reduce spending. However, the politics of this process, according to the Corona Chamber, hinder the reduction of state spending, especially when immediate action is necessary.

“It is important to find a solution to keep a balanced budget year after year,” stated Cynthia Schneider, Chair of the Legislative Action Committee of the Chamber. “Our city, schools and businesses depend on a balanced state budget especially during difficult economic times. The Governor’s proposed Budget Stabilization Act is the right solution to fix the current spending problem so we can maintain a strong local economy,” continued Schneider.

The Budget Stabilization Act also allows California to reduce spending mid-year. Currently, California does not have the ability to reduce spending to accommodate reductions in revenue. The excess revenues, which are defined in the act as state tax revenues above a reasonable, long-term average rate of growth, will be determined by the state Department of Finance. The department will then release a revenue projection two times each year: in January and May.

The Act will create automatic reductions in state spending, triggered by the Governor, if the Department of Finance predicts a year-end budget deficit. If a deficit is predicted, state agencies must reduce their spending by either two percent or five percent, depending upon the projected deficit. The Act also requires that the legislature enact a statute specifying how the state will reduce spending by two to five percent to meet Budget Stabilization Act requirements as soon as a deficit is projected.
 

April 24, 2008

Corona Chamber Supports Governor's Proposed Budget Rainy Day Fund

The Corona Chamber of Commerce supports Governor Schwarzenegger's proposed Budget Stabilization Act. This Act will establish a Revenue Stabilization Fund (RSF), which is simply a savings account for excess revenues taken in by the state each year.
 

This proposal is important to you because it will limit future budget deficits from impacting Corona and our region from drastic cuts in important services such as education and transportation funding.

Click here to take action on this issue.

Key Points of this Call to Action

1. End Fluctuating tax revenue and auto-pilot spending, which dictates approximately 90 percent of state expenditures. This process has, created more than a decade of unpredictable and unstable budget cycles, which benefit no one.
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2. Establish a Revenue Stabilization Fund, basically a savings account for years when state tax revenues are above a reasonable, long-term average rate of growth. This fund will be used to even out funding for the state budget in years when revenues are below average.

3. Keep us from living above our means by triggering reductions in state spending of between two and five percent if a year-end budget deficit is predicted.
 

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Background

"California’s economy continues to grow, in spite of the current housing downturn, and the state continues to enjoy overall job growth," stated Cynthia Schneider, Chair of the Corona Chamber's Legislative Action Committee. "However, California still faces a projected $14 billion budget gap that necessitates across-the-board-cuts. Something needs to be done and the Governor's Revenue Stabilization Fund is the right idea at the right time," continued Schneider.