I'm Dreaming of a Green 2010

As we complete the first decade of the 21st century, I am reminded of the energy 10 years ago as we prepared for a new century. Do you remember the fear of Y2K and the rush to install new computers and software to make sure that your data and communications systems wouldn't freeze up on 01.01.00?

And do you remember the gala New Year's Eve events in every city and the extensive television celebrations of the dawn of a new millennium? Our community and nation need that same sense of excitement as we enter the second decade of the 21st Century.

The Y2K of this new decade is green. There is a rush to save money with green, save the planet with green and reach new customers with green. Y2K didn't end up being as fearful as people imagined, but it pushed businesses and individuals to stimulate the economy for all the right reasons.

Climate change may turn out to be the same. But if it stimulates the economy for all the right reasons and pushes businesses and individuals to prepare for the future, it can have the same positive impact on the economy as the new technology we purchased in preparation for Y2K.

My wish for 2010 is a year of green and green, more profits and more investment in technology and lifestyles to promote a healthier planet. Both will contribute to creating the jobs we need to put our citizens back to work.

I also want people around the world to be as green with envy about Los Angeles as they once were, because we offer a lifestyle and economic opportunities that are the envy of the rest of the world.

Let's join together in making this wish come true in 2010. And let's begin by taking some time this holiday season to refresh our bodies, minds and spirits in preparation.

I wish you and your families a blessed holiday season and peace to the entire world.

And that's The Business Perspective.

A Holiday Gift for the Children of California

While most Californians may be busy preparing for the holiday season, a debate is raging in Sacramento that will impact the quality of our state for years to come.

The debate is about public education reform and the outcome will impact the earning capacity of our young people and the ability of California business to compete in the global economy for generations.

At stake is California's share of $4.35 billion in Race to the Top funding from the Obama administration. The money is an incentive to states and local school districts to dramatically reform and improve public education in America.

So what is happening in Sacramento? On Nov. 3, the Senate passed a Race to the Top bill that would qualify California schools for funding and was hailed by reformers as a major step toward improving student achievement. But last week, the Assembly Education Committee failed to support the Senate bill on a vote of 6-5 with six abstentions. Instead it passed its own version, which has some positive elements, but overall is too watered down and meant to appease the unions for teachers and administrators.

Disagreements and delays are commonplace in every governmental body, but this debate has a deadline for action: applications for Race to the Top funds are due by Jan. 19.

What should happen this week in Sacramento? The Senate should renew its commitment to real reform by substantially amending the Assembly bill or working with Assembly leaders to craft a new joint bill that includes the best of both efforts. U.S. Secretary of Education Arne Duncan will not be fooled by legislation that does not provide the clear prospect of real reform.

The children of California and their families deserve better schools and a higher quality of education. This holiday season, join us in telling the members of the Legislature that this present to the children of California is long overdue. Take action today.

And that's The Business Perspective.

Business is Proud of the Progress at LAPD

At last Thursday's swearing-in ceremony for new Police Chief Charlie Beck, Angelenos were reminded of the enormous progress made by the Los Angeles Police Department since the 1992 riots. The atmosphere and speeches at this milestone event confirmed that the once maligned police department has regained the trust, confidence and faith of residents throughout the city. That's good for our community and a very positive sign for businesses.

Beck's 32-year professional career at LAPD embodies these changes, from his days in the notorious CRASH anti-gang unit to partnering with civil rights groups and community activists. We knew it was a historic day when former Chief Daryl Gates and former State Sen.Tom Hayden—one of LAPD's fiercest critics, shared the dais in support of the new chief. Their presence was a reminder that Chief Beck's tenure with the department links its history as the inspiration for the hard-nosed Dragnet television series and recipient of a federal consent decree to its reputation today as a model for community policing and data-driven crime fighting.

There is no shortage of challenges facing Chief Beck. He takes the reins at a time of record civilian unemployment and a major budget crisis. The department has not reached Mayor Antonio Villaraigosa's goal of 10,000 officers and it's unclear when the city will be able to afford that investment. Gang violence continues to impact many of our neighborhoods with an incalculable toll in human life. And there always remains the threat of terrorism for which the LAPD and its law enforcement partners are constantly preparing.

But crime rate are at near-record lows and our city's support for our officers in blue continues to grow. As a result, our businesses can feel good about public safety and how Los Angeles stacks up compared to other major cities. Chief Beck's responsibility is to keep building on this momentum.

It feels good to see the broad community support for Chief Beck and the department, especially in the African American community. That's real change. It also feels good to see that in the midst of this great recession there are people who exemplify perseverance, progress and hope for the future. One of those people is the new Chief of the Los Angeles Police Department. He has earned and deserves our support.

And that's The Business Perspective.

Vote Yes For Jobs

How can the Los Angeles City Council keep hundreds of professional careers here in Los Angeles while creating opportunities for thousands more jobs? Make it easier and more attractive for Internet-based companies to do business in our community. Next week, the Council will consider a Chamber-supported motion to do just that and we urge them to act quickly.

The problem is that the city's business tax code does not include a category for Internet-based businesses. As a result, these companies often select "Multimedia" as the tax category which best fits their operations. Recently, the city's Department of Finance notified some of these companies that they are being moved into a higher tax bracket and must now pay up to 500 percent more in gross receipts taxes. One firm's tax liability would jump from $200,000 to more than $1 million per year. Another company is currently in litigation with the city over its reclassification, after winning the same court fight several years ago.

All of this is bad for business and our city's economy. Hundreds of jobs are immediately threatened when these companies seriously consider moving out of Los Angeles. Internet-based companies would seem to be a perfect match for Los Angeles, but today many of these companies are exploring leases in other cities and states that don't charge a local business tax at all.

Fortunately, Mayor Antonio Villaraigosa and City Council President Eric Garcetti understand the urgency to keep these companies here and attract new businesses to Los Angeles. Next week, the Council's Jobs & Business Development Committee will consider creating a new tax category for Internet-based companies.

This action is a smart step. These Internet-based companies want to be in Los Angeles. It's where their employees live. But the motion may still face an uphill battle.

During difficult fiscal times, some Councilmembers may be reluctant to vote for a new tax category at the lowest rate even though these businesses, under the new category, will be paying the same exact tax rate as in the past. It may be tempting to estimate the potential additional revenue from a higher tax bracket without accounting for the real likelihood that much of this tax revenue would disappear if these companies pick up and move.

We need your help today to send the message that the L.A. City Council should vote yes for jobs by adopting this new tax category for Internet-based businesses. The last thing Los Angeles needs is more job losses. It is time for action. Take action today.

And that's The Business Perspective.

Giving Thanks in Our Community

This is a special week in America. It is a time to pause and do something we never do frequently enough, which is to say thank you. Thank you for our blessings. Thank you to our families for their love. Thank you to our friends for their support. And thank you to the community that has stepped forward to offer their help to those who are unemployed during our most difficult economy since the Great Depression.

Last week, our nation celebrated Veterans Day to commemorate a group of citizens who have protected us day and night, even though we seldom think about them unless we are in a time of war. Now is one of those times, and we join together in saying thank you to our men and women in uniform, both past and present.

At the Plymouth Colony in 1621, the Pilgrims thanked God for the fruits of their first harvest in the new world. They also thanked their new friends, Native Americans from the Wampanoag tribe for enabling them to survive the bitter winter of 1620-21. The Native American community that surrounded the Pilgrims literally saved their lives.

Every Angeleno has their own story about people who have helped them survive or thrive in the City of Angels. Some of these stories are about family and friends. But often they are about people who entered their lives unexpectedly and lent a helping hand or some guiding advice when they didn't need to.

As we celebrate Thanksgiving this week, add to your thanks and prayers the Angelenos who have helped you to thrive or survive in the City of Angels. And offer special thanks for those who give unselfishly of their time and resources to help the thousands of Angelenos who, like the Pilgrims, would not make it through the winter on their own.

I encourage each of us to make a special commitment this Thanksgiving and Holiday Season to create a Los Angeles that nurtures all of our pilgrims so that as a community we can join Ralph Waldo Emerson in this famous Thanksgiving prayer in which he thanks God:

For each new morning with its light,
For rest and shelter of the night,
For health and food,
For love and friends,
For everything Thy goodness sends.

And that's The Business Perspective for Thanksgiving 2009.

We Must Join the Race to the Top

There is a nationwide footrace underway for more than $4 billion in federal education funding. Just a few weeks ago, California appeared to be out of the running. But fortunately, lawmakers have the opportunity to approve legislation that would not only make our state eligible, but also implement some far-reaching education reforms.

Earlier this year, President Barack Obama's administration laid out a bold vision to reform education in the United States by introducing a $4.35-billion competitive grant known as Race to the Top (RTTT), of which California could be eligible for up to $700 million. This aggressive agenda challenges California leaders to develop a plan that addresses critical issues including the achievement gap, low achieving schools and dropout rates.

Gov. Arnold Schwarzenegger and state lawmakers, including State Sen. Gloria Romero, made the right decision to accept President Obama's challenge and implement the reforms required for RTTT funding. Romero authored SB X5 1, which outlines a plan for turning around the bottom 5 percent of lowest achieving schools; removes the cap on the number of charter schools; authorizes greater use of data to improve instruction and student learning; and ensures that innovative strategies are in place in every school.

The State Senate passed SB X5 1 last week, but the State Assembly must take action as well. U.S. Secretary of Education Arnie Duncan released the regulations and guidelines for RTTT on Nov. 12, allowing states only 60 days to submit an application. The first hearing on this bill in Assembly Committee is on Wednesday, Nov. 18, 1 p.m. at the Metropolitan Water District Headquarters in downtown Los Angeles.

Historic state budget cuts to education have already put many of our students at an extreme disadvantage. California cannot afford to leave vital federal funding — or important education reforms — on the table.

Your voice is critical to make sure that California's students are not only in the race, but poised to win. Take action today by voicing your support to legislators on the importance of SB X5 1. There is no time to waste when the future of our young people is on the line.

And that's The Business Perspective.

Making Jobs a Priority at City Council

Good news to report from L.A. City Hall this week: The L.A. City Council introduced a motion that would create the L.A. Area Chamber-proposed Office of Economic Analysis to help answer the question, "How would this law impact jobs?" Enacting this motion will encourage city officials – and the public – to discuss how new policy proposals would affect private sector job creation, business growth and the overall economy here in Los Angeles.

This proposal – based on the model established in San Francisco – would establish a small office of trained economists charged with analyzing legislation that may have a direct impact on the economy. The goal is to provide unbiased, quantifiable information that lawmakers can use to assess or improve legislation and avoid counterproductive policy proposals.

Independence and objectivity are essential to making this new office a success. The Chamber along with our fellow business organizations will be vigilant in ensuring that the new office is structured to be as free from political influence as possible.

The city's business tax policy towards Internet-based companies would be a perfect topic of review by a new Office of Economic Analysis. Internet-based companies have traditionally been placed in the multimedia tax category. Recently, the city's Department of Finance notified some of these companies that they are being moved into a higher tax bracket and must now pay up to 500 percent more in gross receipts taxes. One firm’s tax liability jumped from $200,000 to more than $1 million per year.

The Chamber is proposing the city halt all reclassifications until the newly-established Business Tax Advisory Committee completes its work. We also believe that these Internet-based companies should be returned to their original tax category until that process is finished.

The Chamber thanks City Council President Eric Garcetti and Councilmember Greig Smith for introducing the economic analysis motion. We also appreciate the great work of City Controller Wendy Greuel and Mayor Antonio Villaraigosa’s office for their support of this effort. To do this right, it must be a collaborative team effort between city officials and the business community. We are committed to completing this work and delivering Angelenos a smart improvement to our city’s governing process.

And that’s The Business Perspective.

Water Reform Has Not Dried Up

The California Legislature has the opportunity this week to quench the thirst of the public for leadership from Sacramento by passing the most significant water reform legislation in the past 50 years. Not only would this be landmark legislation for our state, it would demonstrate that bipartisan work can be done in our state capitol.

Late last night, the State Senate passed legislation that would create a new governance model for managing the Sacramento-San Joaquin River Delta, increase water conversation goals for the state and fund major water-related infrastructure projects through a nearly $10 billion bond package. Two other bills that would increase penalties for illegally diverting water and require local agencies to monitor underground water levels fell short of passage, but are expected to come back up today.

Since the entire package of bills must pass in order for any of the individual bills to go into effect, legislative leaders are working furiously today to approve the remaining two bills on the Senate side and then secure passage in the Assembly. This is heavy lifting, but there is a unique level of resolve by both Republicans and Democrats to get this package approved. That's a good sign for California.

For Southern California businesses and residents, the importance of this legislation cannot be overstated. Water is the region's economic lifeblood and vital to our quality of life. Unfortunately, we are living and working on borrowed time. The aging Delta infrastructure and decades-old water regulations simply cannot accommodate the California of today, let alone the vibrant economy we seek to build for tomorrow.

The Legislature is almost there. We hope you will help show your support for this comprehensive water package by taking action today. And should the Legislature succeed in completing this effort, then let's all tip a glass of water in kudos to a job well done.

And that's The Business Perspective.

Planning to Move Quickly

When L.A. County voters assessed themselves a half-cent sales tax increase for transportation investment in November 2008, the county's elected officials promised to deliver a final Long Range Transportation Plan (LRTP) detailing how the Los Angeles County Metropolitan Transportation Authority (Metro) will direct $298 billion in revenue between now and 2040. After approving the 30-year blueprint last Thursday, that time is now.

The LRTP lists dozens of projects including the Subway to the Sea, extending the Green Line to LAX, expanding the successful Orange Line service in the Valley and expanding HOV lanes on the I-5, I-405 and I-10 freeways.

Transportation projects are an economic stimulus in the short term and an economic investment in the long term. They create good paying jobs from design phase to construction. And the sooner we place shovels in the ground, the more likely we will be to take advantage of the current dip in construction material costs. The Chamber looks forward to continuing to work with our partners at Metro and our elected officials to do everything possible to speed up the approval process. Just like sitting idle on the freeway, wasted time leads to wasted money.

L.A. Mayor Antonio Villaraigosa is pursuing the possibility of securing an advance sum of revenue from the federal government. This would allow us to design and build more projects today so we can realize the benefits of these investments sooner. This could also be a great opportunity for our local financial institutions to partner with the county to speed up the process.

The LRTP represents what many of us have sought for years -- a strategic plan to get our county moving once again. We applaud Metro and local lawmakers for their leadership. Now, we must all work together to make sure that this landmark plan becomes a reality to use and enjoy as soon as possible.

And that's The Business Perspective.

It's Time to Get Down to Business in Los Angeles

More than 400 business, labor and community leaders will descend upon Los Angeles City Hall this Thursday morning with a unified message: It's time to get down to business. Now facing 12.7 percent unemployment and a half billion dollar budget deficit, we must focus 100 percent on new and collaborative actions that will spur our economic recovery and usher in an era of fiscal responsibility.

The L.A. Area Chamber has published a 16-point advocacy agenda recommending concrete steps that will create good-paying jobs, protect taxpayer money and increase desperately-needed revenue for the city without raising taxes. These are common sense priorities that will focus business and government in Los Angeles on the most important job today: economic recovery.

Last week, the City Council took important steps forward on two of these key priorities — pursuing another round of business tax reforms and exploring the creation of a DWP ratepayer advocate. Our call for the City to require an Economic Impact Analysis on major legislation is also gaining traction. This is important progress, and I applaud the Chamber members who have been assisting us in advocating for these initiatives and many others.

In a city as large and diverse as Los Angeles, significant public policy advancements rarely happen in a vacuum. That's why our breakout sessions on Thursday include discussions between business and labor leaders as well as business and community leaders on how we can all work together to rebuild L.A.'s economy. These are the potential partnerships that can help redefine our city.

The work to make L.A. more business friendly and a magnet for new jobs doesn't begin or end on Thursday. Cities, like businesses, require a focus on job creation each and every day in everything we do. That's been the responsibility of the Chamber for more than 120 years, and it is at times like this that we need to redouble our efforts.

I hope you'll join us on Thursday and play an important role in moving us forward as we as we recover, rebuild and revitalize our great city and economy.

And that's The Business Perspective.

Can't make Access L.A. City Hall? Follow the event live with the L.A. Area Chamber on Facebook and Twitter.

Keep L.A. the Entertainment Capital of the World

Each year, the film and television industry generates more than $40 billion in economic revenue in Southern California. We applaud the L.A. City Council for taking action on a series of film production incentives last week. However, they have yet to take action on the region's largest, most impactful film retention project — NBC Universal's Evolution Plan.

NBC Universal's Evolution Plan will establish Los Angeles as the company's global headquarters for film and television production. This is an economic development opportunity that other cities and states would welcome with wide-open arms. The project will create 31,000 immediate construction jobs and 12,000 new permanent jobs. It is also estimated to deliver $26 million in tax revenues each year. In this economy, these numbers alone should be enough to warrant the prompt attention of our elected officials.

The Evolution Plan will also help to address our region's housing shortage and provide new open space for residents. The 391-acre live-work community boasts updated production and post-production facilities, modern office space, 2,900 residences and a Town Center featuring restaurants, shops and other neighborhood businesses. Developed by Thomas Properties, the project is also a pilot in the Leadership in Energy and Environmental Design for Neighborhood Development (LEED-ND) Program — using reclaimed water for irrigation and encouraging residents and employees to utilize shuttles, carpools, flex cars and bikes.

Despite community concerns about the project's traffic impact, NBC Universal's Evolution Plan includes significant efforts to mitigate congestion in the surrounding project areas. In fact, the company is investing
$100 million in local and regional transit improvements, including plans to improve traffic flow along the five miles of the 101 Freeway near the project. This investment in local infrastructure will benefit the entire San Fernando Valley, and includes plans to upgrade the 134 and 101 Freeway interchange and the northbound on-ramp to the 101 Freeway at Highland Avenue. Signal upgrades, synchronization and street widening are also part of the studio's plans to improve more than 100 intersections in the 50-square mile area surrounding Universal City.

Maintaining our city's status as the entertainment capital of the world should be a priority when it comes to accelerating our economic recovery and ensuring the long-term prosperity of our region. The L.A. Area Chamber applauds NBC Universal for their efforts to advance this innovative project and we urge the L.A. City Council to promptly put its full support behind this vital job-creating project with lasting economic benefits for Los Angeles.

And that's The Business Perspective.

Transforming a Community at the Waterfront

Green growth is finally becoming a reality at our region's ports. Just last week, the Clean Truck program celebrated its first anniversary. Environmental Protection Agency (EPA) Administrator Lisa Jackson announced federal grant funding for cleaner cargo-moving equipment at the Port of Los Angeles. And after nearly a decade of planning and debate, the Los Angeles Harbor Commission approved a $1.2-billion project to transform the San Pedro waterfront into a vibrant commercial and outdoor promenade expected to attract thousands of residents and tourist each year.

The San Pedro Waterfront Redevelopment project is a port makeover which will bring a needed economic boost to our region, along with a green and open waterfront for residents and visitors to enjoy. The 27-acre project will deliver an eight mile promenade packed with a 75,000-square-foot conference center, 300,000 square feet of commercial space, new arts and cultural attractions, a trolley car line, bike trails and walking paths and a vastly upgraded recreational marina – all built to the highest environmental standards.

The economic impact of the project is as significant as the plan itself. Investing $1.2-billion over the next 10 years, the San Pedro Waterfront Redevelopment will create 4,900 permanent and 17,000 one-year equivalent jobs. The redevelopment will also provide a boost to L.A.'s lucrative cruise industry, which spends more than $200 million regionally each year. In fact, a single cruise ship visit generates more than $250,000 in local spending by passengers and crew on harbor area hotels, local restaurants and other businesses.

A key element to maximizing the projects full economic potential is the creation of a new outer terminal to house Disney's cruise operations to Southern California. The outer cruise terminal is critical because of the size of Disney's new ships, which would have to sail a mile and a half backwards down the port's existing channel if nothing were built. As waterfront construction begins, we urge the Port of Los Angeles to carry through on its plans to build the outer cruise terminal despite objections that will surely continue from those who will continue to try to block this development – regardless of the community or environmental benefits – as they have for nearly a decade.

The Port's primary mission is a commercial one that greatly serves the economy of our region and our nation. While we must continue to balance the residential and recreational needs of our port communities, we cannot forget that green growth starts – first and foremost – with economic opportunity.

The L.A. Area Chamber applauds the Port of Los Angeles and the Harbor Commission for taking great strides to be a good neighbor by successfully implementing a Clean Air Action Plan, developing the greenest terminals in the world and now planning to build a recreational gem for San Pedro. We hope that local residents will return the favor by helping the Port attract new customers to serve the economic interests of their own neighborhoods and the entire region.

And that’s The Business Perspective.

Realizing the Full Potential of the Los Angeles Convention Center

In this economic downturn, businesses everywhere are focused on maximizing assets and streamlining their operations. Government should be no different. This week we commend L.A. City Controller Wendy Greuel for her audit of the Los Angeles Convention Center and the timely and cooperative response of the Convention Center management. It's now time for the L.A. City Council to take swift action to implement the recommendations of the first audit from our new City Controller.

The L.A. Convention Center is a $1 billion economic asset for the city and taxpayers. With 867,000 square feet of exhibit halls and 64 meeting rooms, the facility attracts our region's largest trade shows and dozens of smaller events each year. Unfortunately, Controller Greuel's audit reported that it has not reached its full financial potential.

The Controller's audit included some startling findings. Los Angeles may be losing thousands of dollars in fees waived by Convention Center staff because there is no system in place to access the actual costs of each event. Failure to properly maintain the Convention Center and restrictions in city ordinances prevent the staff from adjusting rates to adequately compete with other communities during non-peak booking periods. Perhaps most startling is a labor mandate requiring that the Convention Center utilize city electrical workers, which has resulted in thousands of overtime hours. Twenty-five city electrical workers earned an average of $94,000 in overtime pay with one topping out at $146,000.

Greuel's recommendations are smart — and common sense — to many of us in the private sector:

• Determine the actual cost for each event.
  
• Provide the flexibility to allow competitive rates.
  
• Enact proper financial oversight to govern fee waivers and other expenses.
  
• Adopt a long-range capital improvement plan to ensure the facility is kept up-to-date and meets exhibitor demands.
  
• Save $700,000 per year by having the Convention Center train its own electricians rather than paying overtime to other city department staffers.

With L.A. LIVE, Staples Center and the brand new Ritz-Carlton and JW Marriott Hotels soon to be in place, Los Angeles is poised to realize its full potential as a global convention destination. This report is a real opportunity for the L.A. City Council to act decisively and make sure that our city and region are ready to take advantage of that opportunity. We congratulate Controller Greuel on the economic importance of her first audit and for including the management of the Convention Center at her side when she announced the results.

And that's The Business Perspective.

How Much Does That Law Cost?

There are 250,000 fewer Los Angeles County residents with jobs today than there were one year ago. The state's unemployment rate rose to 12.2 percent in August and L.A. County rose to 12.3 percent, according to the numbers released Friday. All but 5,400 of those jobs were private sector employees.

Mayor Antonio Villaraigosa stated in his State of the City address on April 14 and his inaugural on July 1 that creating jobs should be the city's highest priority. He stated that the focus of the city's efforts must be on promoting economic recovery. The L.A. Area Chamber applauded Mayor Villaraigosa for his renewed commitment to economic development and since then has been working with city officials to help improve the business climate and stimulate business and job growth. The unemployment numbers released Friday indicate that a dramatic effort needs to be initiated.

One of the biggest problems in Los Angeles is that we make decisions without asking: "How much does that law cost? How will it impact jobs, business and tax revenues?" Every law that elected officials pass either helps or hurts business — and we think these questions should be at the heart of every policy debate.

In reality, most laws that are passed at L.A. City Hall do not include an assessment of the economic impact the law would have in our community. Over the years, laws add up, many negatively for business, and one day soon we will reach a tipping point for business — and jobs — in our city.

That's why the Chamber urges our city officials to adopt an Economic Impact Statement (EIS) requirement for new legislation. This would give elected officials a tool to understand whether the legislation they are considering will create jobs and new tax revenue or hinder the creation of new jobs and new tax revenue.

Right now, most city legislation must undergo environmental and fiscal impact reviews. These assessments are important but they do not help elected officials or the public understand the long-term impact the legislation will have on business, jobs and tax revenue to the city.

San Francisco is a model for using an EIS. In 2004, voters approved a ballot initiative that established an Office of Economic Analysis. Staffed by a handful of trained economists, the office reports on legislation introduced by the Board of Supervisors. It doesn't take politics out of the process, but it certainly adds a missing link to a comprehensive policy discussion.

Over the next few weeks, the Chamber will continue meeting with city officials urging their support for moving forward on this initiative and others to accelerate our economic recovery. We need jobs and the city needs tax revenues from growing businesses. It's time to say yes to an EIS.

And that's The Business Perspective.

A Watershed Moment for Water

Early Saturday morning, the state Legislature adjourned without passing a comprehensive water package that would have fixed the fragile Sacramento-San Joaquin Delta and ensured a safe and reliable water system for all Californians. With California's lifeblood on the line, the L.A. Area Chamber urges Gov. Arnold Schwarzenegger and the Legislature to convene a special session immediately and complete this important work.

Fixing the Sacramento-San Joaquin Delta is critical to preserving one of our state's most delicate ecosystems and ensuring continued water delivery to all Californians. This aging system of levees, canals and pumps is already under judicial monitoring due to environmental degradation and is one moderate earthquake away from collapse. Such a disaster would flood the Delta with saltwater, rendering it undrinkable, decimate the state's agricultural industry, cut off one-third of Southern California's water supply and leave much of the area south and east of San Francisco critically short of water.

Fortunately, a legislative holy grail — resolving the decades-old crisis — appears closer than ever. Once competing interests, including the Natural Resources Defense Council, Central Valley agriculture groups, Metropolitan Water District, the L.A. Area Chamber and business groups up and down the state, are now working together, in a bipartisan way with lawmakers on a compromise.

The crux of this compromise is the creation of a new authority — the Delta Stewardship Council — to coordinate multiple overlapping local and state agencies in the development of a plan that that will promote two co-equal goals:

• Environmental restoration of critical ecosystem resources in the Delta
• Restoration of the water supply and reliability of the State Water Project

The Council is an essential governance reform that will help the entire state better manage our precious water supplies and environmental resources.

Critical work remains during a special session. Specifically, lawmakers must agree on how to pay for much of the compromise, which includes plans for new surface and underground storage, environmental restoration, local recycling, groundwater cleanup and conservation projects. Placing a series of bonds before California voters will be essential, but Democrats and Republicans will have to develop a final package that responsibly finances this long-term investment. We urge that the California Water Commission be given new authority to make sure the public's money is spent wisely.

Despite the setback last week, the timing is right for our state lawmakers to finally produce a legislative victory that will benefit our entire state for years to come. Water is our most fundamental economic and environmental resource and this is our watershed moment to act. The Chamber applauds Gov. Schwarzenegger and the legislative leadership of both parties for their commitment to passing a water solution this year.

And that's The Business Perspective.

Reshaping Education Starts at the Beginning

As business leaders, we know that growing a talented, well-educated workforce is critical to economic prosperity in the 21st century. We also understand the importance of return on investment when it comes to education and workplace performance. That is why we must include investments in early education when we talk about reshaping education in our nation, our state and our region.

The Student Aid and Fiscal Responsibility Act (HR 3221) provides an unprecedented opportunity to invest in our economic future from the very beginning. This bill, which ultimately aims to make college accessible to more students, includes an Early Learning Challenge Fund to help increase the number of low-income children in high-quality early learning centers. While some might question why a bill focused on college access includes reforms in pre-school, starting early can make all the difference.

Educators have long argued that high-quality early education prepares students for a lifetime of learning and success. Recent research has supported this claim showing that early experiences do shape whether a child's brain develops a strong foundation for future learning, behavior and health. Without this foundation, educators contend that children will start out behind, and stay behind.

High-quality childhood education is also thought to help address the growing achievement gap. California standardized test scores released last week showed that little progress has been made in the performance between black and Latino students and their white and Asian counterparts. State Superintendent of Public Instruction Jack O'Connell has acknowledged that closing this achievement gap will require efforts targeted at prekindergarten through higher education, and we agree.

In this difficult economic climate, it is hard to justify any investment which does not reap immediate benefits. But in the case of early education, the numbers speak for themselves. The estimated rate of return for investments made in high-quality preschool, which range from $7 to $16 for every dollar invested, are far higher than the return for a job training program later in life.

As we prepare for an unprecedented shortage of highly-skilled workers by the year 2025, we must start making the long-term investments that will help address this looming crisis. The L.A. Area Chamber supports the Student Aid and Fiscal Responsibility Act (HR 3221) and urges Congress to make the early investments that are needed to create a strong and competitive economy in the future.

And that's The Business Perspective.

Time to Pick the Low Hanging "Grapefruit"

The Free Trade Agreements (FTAs) with Colombia and Korea are two immediate opportunities to create jobs and economic growth across the nation. And no region will benefit more from free trade with these two nations than Los Angeles. Unfortunately, more than two years after both agreements were signed by negotiators, neither has been ratified by Congress due to political concerns about labor and environmental issues in these nations.

Colombia is the United State's fourth-largest trading partner in Latin America and the largest market for U.S. agricultural exports in South America. Just a few years ago, U.S. growers exported $11.4 million in fruits and vegetables including grapefruit to Colombia. Free trade with Colombia will help create more exports and more jobs here at home.

Despite the fact that Colombia has made dramatic progress in improving security for its citizens, U.S. officials contend that Colombia must do more to address issues of violence against union leaders. Everything possible should be done to protect Colombian citizens, but holding trade hostage only hurts workers and legal businesses in both nations.

Korea is a $1 trillion economy and L.A.'s third-largest trading partner. U.S. exports to Korea totaled $34.8 billion last year alone. Studies have shown that an FTA with Korea would deliver $10 billion in new exports from the U.S. to Korea. In the current economy, that number should be enough to bring this important agreement to a vote in Congress.

In May, United States Secretary of Commerce Gary Locke expressed his support for free trade at The Americas Business Forum hosted by the L.A. Area Chamber. He acknowledged the "badly-needed jobs" which could be created in Los Angeles. We applaud Secretary Locke for speaking up for trade and we hope the 53 members of the California Congressional delegation will do the same when they return to session.

Businesses can help by voicing its support for these two Free Trade Agreements by writing to the Office of the United States Trade Representative or providing an online comment before Tuesday, Sept. 15. Take action today.

Now is the time to create jobs for America by picking the low hanging "grapefruit" that is right in front of us.

And that's The Business Perspective.

Let Parents Choose, So Our Students Can Win

Today the Los Angeles Unified School District (LAUSD) Board of Education will vote on a motion critical to the future success of Los Angeles youth. This motion, initiated by Board Member Yolie Flores Aguilar, establishes an open process in which groups such as charters, teachers, parents and others can collaborate with the district to operate one or more 50 new schools and the district's many underperforming, Program Improvement (PI) schools designated by the California Department of Education.

This is an outstanding initiative by the LAUSD Board. Not only will it create more schools of choice and educational options for the District's students and families, it will also bring forward the best school operators to lead the news schools and turn around struggling PI institutions.

The L.A. Area Chamber applauds Board Member Yolie Flores Aguilar for her leadership and the entire Board for the thoughtful process, discussion and amendments that have led to several important improvements in this resolution. These include the addition of PI schools, the guarantee that all children from the school's neighborhood will be served, and a process for school communities and stakeholders to evaluate and comment on the plans submitted to the Board. We have worked with many of the key stakeholders in the past month and have been impressed with their willingness to work through these and other issues in an effort to build on and improve the original motion.

Much work remains to design the bidding process, the framework for community input and how the proposals will be reviewed and evaluated. We are confident that LAUSD Superintendent Ray Cortines will work with the Board and all stakeholders to develop a collaborative approach that will ultimately provide L.A. students the schools they need and deserve.

The Chamber's experience in supporting the opening of the Miguel Contreras Learning Complex and the new schools in the Belmont Zone of Choice has demonstrated that it is possible to open highly effective new schools for students in collaboration with parents, community partners, United Teachers Los Angeles (UTLA) and school leaders and staff.

Today is an important day in the future of our community and the lives of every current and future student in LAUSD. Our educational mission as a community must be to prepare our children to succeed in a world that we have not seen. Our success in achieving that goal, as compared to the success of other communities and nations around the world, will determine the future of Los Angeles.

And that's The Business Perspective.

Real Health Care Reform in Our Own Backyard

As friends and foes to national health care reform are sounding off in town hall meetings across the country, the L.A. County Board of Supervisors has an immediate opportunity to create real health care reform right here in L.A. by passing two motions that will begin the process of reopening Martin Luther King, Jr. (MLK) Hospital. Reopening MLK will bring a much needed health care anchor back to South L.A. and end the emergency room ripple effect that continues to impact the entire region.

Today, the County Board of Supervisors will consider two motions proposed by Supervisor Mark Ridley-Thomas. The first will authorize the County to negotiate with the University of California toward a partnership to open a new Martin Luther King, Jr. Hospital. The second will be the approval of a capital program to construct a new hospital, emergency room and multi-service Ambulatory Care Center. Both motions are critical towards the reopening the hospital.

Born out of the aftermath of the 1965 Watts riots, MLK can once again — with the right oversight — bring vital health care to a community that is woefully underserved. The hospitals reopening will also bolster the region's entire hospital safety net by alleviating the overflow of patients in neighboring emergency rooms as a result of its closure more than two years ago. Putting a stop to this dangerous ripple effect should be a priority for all Angelenos, no matter where we live.

I had the privilege of serving on the MLK Health Care Options Task force last year which studied hospital best practices around the county, and many of our task force's recommendations will become a part of a new model for MLK — a partnership with University of California to run the hospital as a private nonprofit, operated by an independent board of directors. This is a proven model showing success in community hospitals across the country.

The Chamber strongly supports the two motions to help reopen MKL and urges their passage in today's County Supervisors meeting. We applaud Supervisor Ridley-Thomas for making the reopening of MLK his number-one priority and for working diligently to build needed consensus among a broad group of stakeholders. We also acknowledge the University of California for its willingness to work with our community toward the opening of a new MLK in south L.A.

National health care reform may take years before its impacts are felt in our region. This is real "health care reform" in our own backyard that benefits everyone in the Los Angeles region right now.

And that's The Business Perspective.

Business Salutes You, Chief Bratton

For Los Angeles, it has been a real source of pride to have Chief William Bratton at the helm of the Los Angeles Police Department (LAPD) for the past eight years. His decision to step down not only reinforces just how important his tenure has been for the city, but also for those of us in the business community.

It's interesting to think back to the state of Los Angeles when Chief Bratton arrived in 2002. The Sept. 11, 2001 attacks were fresh on our minds with the palpable fear that another attack could be imminent. The LAPD was still reeling from the aftermath of the Rodney King beating and the 1992 riots. And the Rampart division corruption scandal resulted in a U.S. Department of Justice-mandated consent decree placing federal oversight on the department.

Nearly eight years later, the department and our city are in a far different position. Crime rates have fallen in each of the past seven years. LAPD now has one of the most sophisticated anti-terrorism and crime monitoring systems in the nation. There is far better coordination in fighting gang violence and keeping young people safe. Perhaps most importantly, the department has rebuilt trust and confidence in communities throughout the city. Those are no simple feats.

For many business owners, Chief Bratton's tenure repositioned Los Angeles as a safe place to do business. Crime is an immediate deterrent for job creators as well as their customers. Simply put, Chief Bratton was good for business and our economy. His approach — define your strategy, empower your senior management to carry it out using their best skills and focus on hard data to measure results — is a great template for any leader.

We will be sad to see Chief Bratton leave the LAPD in a few months. But his legacy will continue to shape the department and our city for many years to come. For that, he deserves our salute and thanks for a job well done.

And that's The Business Perspective.

Jobs Will Keep Our State Golden

The end to the months-long budget stalemate wasn't pretty, but it does provide a sense of relief for business. Even though cuts to education and our safety net are severe, having a budget in place puts an end to IOUs, renews the state's ability to borrow and bond, and does not raise taxes. Unfortunately, California's budget fiasco will be repeated if the state's economy does not improve. That's why JOBS must be the focus of this month-long legislative recess.

State lawmakers spend August in their home districts, but the L.A. Area Chamber recommends that each of them hold meetings with their local governments, labor leaders and business groups to explore answers to a simple question, "What can the legislature do immediately to help grow the private sector, create jobs and fuel the economy?"

Two answers will surely be given by all groups to proactively move California out of the recession, rather than just waiting until the global economy recovers:

• Aggressively pursue federal stimulus dollars
• Immediately begin work on shovel-ready infrastructure projects

Passing SB 696 is the single-largest job creation bill in Sacramento and must be at the very top of the agenda for every state lawmaker. SB 696 will save an estimated 65,000 jobs and create thousands more by unfreezing up to 3,100 permits for projects ranging from hospitals to fire stations to clean technology upgrades at dry cleaners, food manufacturing and businesses across our region. Unless state lawmakers make bills like SB 696 a priority, California will have another repeat bloodletting on the state budget within six months.

Fixing our economy also requires a full analysis of workplace regulations that keep many businesses and employees from designing flexible schedules to meet the needs of employees and their families. California's confusing meal and rest period rules are fertile ground for expensive, unnecessary lawsuits. The state's restrictions on flexible workweek scheduling for hourly employees makes it difficult for full-time employees to schedule time for school, family and personal pursuits. These updates are critical to recognizing the needs of a 21st century workforce and making California more competitive.

Finally, the Commission on the 21st Century Economy is wrapping up its work on how to modernize the state's boom-and-bust tax system. Their recommendations are expected to go to Gov. Arnold Schwarzenegger and the state Legislature in September. No one will be 100 percent satisfied with the proposal, but not acting on the recommendations will make it 100 percent certain that our state's budget woes will continue.

I am tired of reading and hearing negative media reports about how the Golden State is losing its economic edge. Let's focus all of our efforts on economic growth during the next five months and show the world that California has not lost its will or its ability to lead. Gov. Schwarzenegger likes to say, "I'll be Back!" Wouldn't it be nice if we could all join in the chorus?

And that's The Business Perspective.

Victory for Commuter Safety

The Southern California region won an important victory for commuter safety last week. Through the work of the L.A. Area Chamber, Mobility 21 and Rep. Lucille Roybal-Allard (D-Los Angeles), Congress is moving closer to providing greater funding for train anti-collision technology. That's good news for passengers throughout our region.

All of us remember the deadly 2008 Metrolink train crash, which cost 25 lives and brought the issue of rail safety to the forefront for many Americans. Many experts believe that this crash could have been averted had the rail system been equipped with state-of-the-art safety technology known as Positive Train Control (PTC). That technology helps prevent train-to-train collisions, overspeed derailments and other accidents that can result due to human error.

There was an immediate uproar to secure more PTC funding after the crash, but political focus has shifted largely to matters of economic stimulus and recovery in recent months. The L.A. Area Chamber applauds Roybal-Allard and Rep. Adam Schiff (D-Pasadena), who refuse to give up on rail safety and have paved the way for PTC in our region.

Last week, the L.A. Area Chamber traveled to Washington, D.C. with our partners in the Mobility 21 coalition to advocate for greater transportation investment including funding for PTC. Scheduled to coincide with the House of Representative's consideration of next year's Transportation Appropriations Legislation, our delegation met with a number of Congressional offices, our two Senators and administration officials to push adequate funding to install the PTC improvements in our local rail lines.

On Thursday, Roybal-Allard took to the House floor and engaged a key House Committee chairman on the need for immediate investments in PTC in Southern California. We are happy to report that she was able to secure at least $5 million dollars for PTC. This number is expected to increase as it goes through the legislative process.

There are still additional hurdles getting PTC installed in our regional commuter rail lines. As the House and Senate work to complete this important spending bill, the L.A. Area Chamber will continue working with our transportation partners and our Congressional delegation to make sure that PTC funding is included in the final package. As more of us park our vehicles to ride mass transit, this is a federal expenditure that is in the safety and interest of all of us.

And that's The Business Perspective.

A Safe Haven for Summer

Urban cities and police departments across the nation are bracing themselves for the peak of summer - traditionally the most violent time of year. Here in Los Angeles, the gang capital of the world, youth in many at risk communities will have a safe place to spend hot summer nights thanks to the Summer Night Lights program made possible by the city, community groups and local businesses.

This year's program will keep 16 city parks open after dark with organized activities such as sports, arts and films. All parks are located in the City of Los Angeles' Gang Reduction and Youth Development zones and include intervention workers to help maintain cease-fires in the surrounding communities. Now in its second year, Summer Night Lights is expanding to include job opportunities for at least 10 young adults at each site to help develop and staff activities.

Summer Night Lights could not come at a better time for youth in our communities. Most summer schools are closed due to budget cuts. Teen summer employment is limited as out-of-work adults compete for the same jobs. Together, these factors have left a record number of young people out of school, out of work and in search of activities this summer.

Research consistently shows that crime spikes during the summer when youth are out of school and unengaged. Summer Night Lights is proving to be an effective way to curb this seasonal crime trend. Last year, communities surrounding the participating parks saw a 17 percent drop in violent gang-related crime, an 86 percent reduction in homicides and a 23 percent decrease in aggravated assaults. If only all our gang prevention strategies showed similar results.

Gang violence is bad for everyone - youth, communities, business and the economy. The Chamber has long advocated for a coordinated gang prevention strategy that includes the county, the private-sector and the school district. Summer Night Lights exemplifies what is possible when we all work together against a common goal.

The Chamber thanks our members Wells Fargo Bank, The California Endowment and the many other businesses and organizations that have helped get the Summer Night Lights program started this summer. The business community can continue to support this program through the Chamber at the Hot Summer's Night benefit event on Tuesday, Aug. 4 at The GRAMMY Museum at L.A. LIVE.

This summer, let's invest in these safe havens and help provide activities, jobs and hope for the young people in our underserved communities.

And that's The Business Perspective.

Carpe Diem on Jobs!

It should come as no surprise that Los Angeles has one of the highest unemployment rates in the nation — 11.5 percent, nearly two and half points higher than the national average. During the past year, more than 250,000 private sector jobs have been lost in L.A. County. But even before the recession, the L.A. five-county area has lost over 70 firms and nearly 16,400 jobs due to corporate relocation since 2005 according to the Los Angeles County Economic Development Corporation. Even jobs in L.A.'s flagship industry — movie and television production — are down 13,800 compared to last year, largely due to runaway production as noted in Saturday's Los Angeles Times. Now more than ever, we must improve L.A.'s business climate or risk losing the foundation that supports our jobs and livelihoods.

The L.A. Area Chamber and other business groups have long argued that L.A.'s business climate, unlike our weather, is not conducive to business growth and job creation. As one local executive wrote in the Wall Street Journal this weekend, Los Angeles "is fast becoming a job-killing machine." It should pain every elected official and resident of Los Angeles to read these words. Unfortunately, the proof is in the pudding. L.A.'s business tax is among the highest in the state. The city's permitting process is lengthy and cumbersome. Business regulations are frequently changed, making it difficult for businesses to plan for the future.

The L.A. Area Chamber applauds County Supervisor Don Knabe for his initiative to create 10,000 jobs using federal stimulus funds and L.A. Mayor Antonio Villaraigosa for making jobs his number one priority during the next four years. But two leaders cannot make it happen alone. Below are five recommendations for the City of L.A. to improve the business climate and save our jobs.

1. Do No Harm: Despite record unemployment, local governments still seek to enact new mandates that add more costs to employers; costs that often must be offset by laying off employees or reducing their hours. Every piece of legislation should be accompanied by a Jobs Impact Report that measures potential impact on businesses and jobs.

2. Customer Service: Time is money and no one has money to waste today. Businesses need every interaction with government to be handled more quickly and efficiently than ever before. We applaud Mayor Villaraigosa's plan to build a stronger business team, but every employee at city hall should see their job as being part of the Mayor's business team.

3. Don't Change the Rules in the Middle of the Game: Business owners regularly report following the rules prescribed by the city only to have them changed or added to late in the game. Telling business that government can change the rules after an investment has been made is a one-way ticket out of town for quality job creators.

4. Leverage Private Sector Expertise: Businessmen and women stand ready to partner with city government to share best practices on how to make these important improvements. Over the years, business people have stepped up when local government asks for their expertise, but in far too many cases, their recommendations end up collecting dust on the shelf. The business community, like other residents, loves L.A. and wants to help our city regain its economic prominence.

5. Keep Our Sights on Emerging Industries: The Chamber applauds City officials for embracing opportunities to attract green jobs to L.A. Yet, there are many more high-wage jobs in the film industry, electronic gaming, new media, health care, manufacturing and logistics already located in Southern California. The city should give equal support to growing these vibrant sectors and do everything possible to keep these jobs here in L.A.

The L.A. Area Chamber and our members look forward to working with the City and County to reverse L.A.'s position as one of the highest jobless regions in the nation. Let's seize the day on business growth and save our jobs, jobs, jobs!

And That's The Business Perspective.

One Opportunity for the State Legislature to Shine

Even if the state Legislature cannot agree on a budget, it can still pass a single bill that would save 65,000 jobs in Southern California and create many more. SB 696 would overturn a moratorium on required permits issued by the South Coast Air Quality Management District (SCAQMD) and is the key to unfreezing more than 1,100 building and construction projects in the region. Business, labor and municipalities are united in support — now we need to fast-track SB 696 to Gov. Arnold Schwarzenegger's desk.

Under Southern California's strict air quality rules, businesses and governments adding new equipment must prove a reduction in air pollution. The SCAQMD maintains a special reserve fund of offset credits for projects that are considered an essential public service, research program or innovative technology.

Unfortunately, a lawsuit by an environmental group eliminated that credit bank, halting a wide-range of projects in the region by businesses and governments like the Whittier Police Department, the Long Beach Airport, St. John's Hospital in Santa Monica and many others. Now, providers of essential services, small businesses and others will have to pay up to $4 billion to obtain emission reduction credits — if they are available at all.

It's ironic that a lawsuit by an environmental group now threatens to stop thousands of current and future projects to upgrade facilities with modern and environmentally-friendly equipment. Their original goal was to stop construction of a power plant in the City of Vernon which would have received one of the credits. Instead, opponents succeeded in jeopardizing thousands of other projects wholly unrelated to the power plant.

Introduced by State Sen. Rod Wright, SB 696 will reinstate the permit program and allow these important projects to move forward. A State Senate committee approved the bill a few weeks ago, but it still awaits final action by the Senate and then approval by the State Assembly.

The L.A. Area Chamber is proud to partner with labor leaders like Richard Slawson, executive secretary of the Los Angeles/Orange County Building & Construction Trades Council, in support of SB 696. We have testified in Sacramento and continue to partner with a large coalition pushing for the bill's passage as soon as possible.

There may not be much for Sacramento lawmakers to agree on lately, but SB 696 is one of the best, bipartisan opportunities to save existing jobs and create new ones — even in today's challenging economic climate. Please join us in urging our lawmakers to fast-track SB 696 and get 1,100 projects moving again.

And that's The Business Perspective.

It is Time to Get to Work

As the mayor, city controller, city attorney, members of the L.A. City Council and the Los Angeles Unified School District (LAUSD) Board of Education prepare to take their oaths of office this week, one thing is clear — there will be no honeymoon period. The crisis in public confidence and the economy won't allow it. However, there are opportunities ahead to accelerate recovery if we all get to work.

We applaud Mayor Villaraigosa's decision to run the city rather than run for governor. Los Angeles needs his leadership focused like a laser-beam on replacing the 250,000 private sector jobs that have been lost in L.A. County during the past year. We also need his focus on the city budget and the growing pension liability that will place extraordinary stress on every city budget during his second term. The L.A. Area Chamber suggests strengthening the mayor's Los Angeles Business Team, implementing 12-2 and appointing talented volunteers to help address the city's unfunded pension liability. We also encourage Mayor Villaraigosa to draw on our city's talented and experienced business people to serve on city boards and commissions.

Our new city controller, Wendy Greuel, is now the top watchdog at city hall. During her time on the city commission, she consistently demonstrated her talent and integrity. City Hall is rife with opportunities to save money and increase efficiency. Too many blue ribbon recommendations are gathering dust on bookshelves. Controller Greuel should focus on high priority audits and the city council and department heads should commit to utilizing the audits to make city hall more efficient during the next four years.

City Attorney Carmen Trutanich is the outsider who will bring a new perspective to city hall. We hope he will rein in the spending in his own organization and utilize his strong partnerships with law enforcement agencies to bolster crime prevention and provide sound legal advice on behalf of the city's taxpayers.

With the exception of newly-elected Paul Koretz, the members of the L.A. City Council, including Council President Eric Garcetti are veterans who have the chance to prove that the term limit extension voters authorized in 2006 is resulting in value for the city and not just a longer paycheck for councilmembers. The primary focus for the city council should also be on creating jobs in their districts and in the city. This should include a citywide economic development vision.

The L.A. Board of Education has the most challenging position of all. Reform is the mantra, status quo is the enemy and student achievement should be the goal valued above all others. We urge the district to allocate every dollar they can to local school sites where the education of students actually takes place. We also encourage board members to maintain their emphasis on small learning communities and career academies that are positively transforming low-performing schools.

The Chamber is committed to partnering with all of our city leaders to create new jobs, educate the next generation of Angelenos and accelerate economic recovery. We are people in business who care about the future of Los Angeles. We were not elected, but we have been working since 1888 to make Los Angeles a better place to live, work, visit and do business.

Now, it's time to get to work on the next four years.

And that's The Business Perspective.

Untie the Hands of California School Districts

The L.A. Area Chamber, together with nearly 100 of our members, recently traveled to Sacramento on our annual advocacy trip with an agenda to recover, reform and rebuild California. Budget issues and the state's fiscal crisis are top of mind for all lawmakers, but reform is about much more than balancing the budget. It's about encouraging business growth and investing in today's students to ensure a competitive workforce for tomorrow's economy.

California schools are facing drastic budget cuts that will impact every district, every school and every classroom. Having already cut more than $5.15 billion (or $860 per student) in K-12 education expenditures, our school districts still face an additional $6 billion (or $1,000 per student) in cuts for the 2010-11 fiscal year. Like the state Legislature that has been hindered in balancing the budget due in part to past voter-approved initiatives, our school districts are limited by the California Education Code in the actions they can take to effectively manage resources from the state. Simply put, their hands are often tied at a time when budget resources are limited and must be redirected to best serve the needs of students.

Today, the California Education Code includes mandates on class size, textbooks, testing and a plethora of other district functions. State law also places limitations on how school districts manage and terminate both certified (teachers) and classified (other) employees. With so many requirements and so little flexibility, California's school districts will have limited options for dealing with the next round of school cuts unless Gov. Schwarzenegger and the Legislature act.

The Chamber advocated for charter school-like flexibility in our school districts. We urged lawmakers to consider 10 recommendations that would enable school districts to manage budget cuts while minimizing the impact on students. Chief among these recommendations is providing local control to districts to determine how budget cuts should be made.

In today's economy, school reform is about high standards and accountability. It's about fixing what's broken and keeping what works. It's about investing the dollars we have directly in local school sites and in teachers and students. Let's give our school districts the flexibility they need to weather this economic storm without sacrificing tomorrow's workforce.

And that's The Business Perspective.

Congratulations to the Lakers

Today, Los Angeles and the state of California are in the limelight for the right reasons. The Lakers' NBA Finals victory over the Orlando Magic on Sunday night gave us all cause to celebrate and rekindle memories of a legendary franchise that has made L.A. proud for fifty years.

The L.A. Area Chamber congratulates the Buss family, General Manager Mitch Kupchak, Coach Phil Jackson, MVP Kobe Bryant and the entire Lakers team on the 15th NBA championship for the purple and gold. We especially congratulate Phil Jackson on his 10th championship, a record for NBA coaches.

When asked what made Phil Jackson a great coach, Derek Fisher — the hero of game four — noted that Coach Jackson brings out the best in his players by empowering them in the game plan, not controlling them. One regularly hears this same quote about successful CEOs in business. No one wants to be controlled, but everyone wants to make a contribution for the good of the team and their personal satisfaction.

Nothing brings a city together like a winning sports team. People of all ages who don't know each other, speak different languages, and vote for opposing political parties share a common bond when rooting for their team. And tomorrow, a virtual United Nations of fans from Southern California will celebrate the Lakers' victory during a parade from Staples Center to the Coliseum. The L.A. Area Chamber applauds AEG, Casey and Laura Wasserman, Jerry and Margie Perenchio, and many other businesspeople for making a contribution so that the entire community can celebrate this victory.

Professional sports victories are not only good for our community pride, they are important to the economy of our region. In 2007, when the Los Angeles Sports Council and the Chamber teamed up to research the economic impact of college and professional sports on Los Angeles, the number was in excess of five billion dollars each and every year. Sporting events have played a key role in bolstering our tourism trade and they are major anchors for our hotels, restaurants and other tourist attractions.

Sixteen victories in post-season play are not enough to turn around our economy or solve the state budget crisis, but they do bring us together and remind us how much a winning team bolsters our pride and our morale, in addition to our economy. Thanks again, Lakers — and congratulations from all of us at the Los Angeles Area Chamber of Commerce.

And that's The Business Perspective.

California Needs More than Sunshine

Today, 2 million Californians are unemployed; 843,000 more than one year ago. To overcome our current economic crisis, Sacramento lawmakers must do more than balance the budget; they must develop a new commitment to job creation and business growth. If we fail to grow new jobs in California, we will be plagued with a never-ending budget crisis.

The private sector is where this economic crisis hit first, and it's also where our recovery must begin. Over the past few weeks, we have heard nonstop about how budget cuts will impact state services and workers in state government —- both very important issues. But we have heard very little about the need to put 2 million private sector employees back to work.

Chief Executive Magazine recently released its 2009 "Best and Worst States" report. In it, they asked 543 CEOs to grade all fifty states on criteria including taxation and regulation, workforce quality and quality of life. California ranked dead last. One survey respondent summed it up this way: "Michigan and California literally need to do a 180 if they are ever to become competitive again. California has huge advantages with its size, quality of workforce, particularly in high tech, as well as the quality of life and climate advantages of the state. However, it is an absolute regulatory and tax disaster."

The L.A. Area Chamber is leading our annual advocacy trip — Access Sacramento — later this week where we will be pressing lawmakers to focus on the basics of economic development in order to Recover, Reform & Rebuild our state. At the top of our agenda is pushing for a full, independent evaluation of the state's business taxes, environmental regulations and labor laws, the legislation that most often puts California at a distinct disadvantage when compared to other states.

Most importantly, we are asking lawmakers to place a top priority on job creation and to think differently about how they approach legislation that impacts business and the new jobs and new tax revenue that comes with business growth.

Sunshine and diversity alone cannot sustain our state. It's time for us to get back to the basics of economic development. There are at least 2 million reasons for lawmakers to do so immediately.

And that's The Business Perspective.

City Employee Unions Must Share Sacrifice

As all of us in the private sector know, there are no protected classes in this economic downturn. In L.A. County, we have lost 250,000 private sector jobs during the past year and our unemployment now totals 565,000. Every business and the families of their employees have felt the financial burden of this recession.

In contrast, there are more public sector jobs in L.A. County than one year ago, but the economic downturn is now staring them in the face as well. The loss of business in Los Angeles has resulted in decreased tax revenue for the City of Los Angeles and elected officials are now struggling with unavoidable budget cuts.

Mayor Villaraigosa and the L.A. City Council are finalizing a city budget that reflects this new municipal reality. However, the last holdouts appear to be the city employee unions who have yet to step up and join the rest of us in this time of "shared sacrifice."

Over the past few months, the Mayor and City Council have worked to bridge a $530 million deficit — asking their employee unions to share in the sacrifice by forgoing annual cost-of-living increases, increasing employee pension contributions and accepting one hour per week of voluntary furlough. As we compare these proposals to what is happening in the rest of the community, they are extremely reasonable and best of all, they will significantly reduce the number of layoffs of junior coworkers at city hall.

The negotiations continue and union leaders are taking the hard line so as not to give up the salary and benefits achieved during previous contract negotiations. The unions originally sought early retirement packages that they argued would save the city $200 million this year and avoid layoffs. That may sound good for one year, but early retirement packages would actually cost the city far more in the long-term by adding hundreds of early retirees to an already unsustainable pension program. The union proposal was not real savings or "shared sacrifice" and was certainly not fair to taxpayers who have sacrificed far more during this recession in salary cuts and 401(k) losses.

Eliminating this year's cost-of-living adjustment would save an estimated $119 million. Adding two furlough days to each employee's schedule would save an estimated $24 million. And if employees contributed an extra 2 percent to their pension plan, that would translate to approximately $60 million in savings. And most importantly, these proposals will maintain city services and keep thousands of city employees from being laid off.

While no one wants to have their pay reduced, most employee groups in Los Angeles are choosing "shared sacrifice" over mass layoffs when that choice is available. We have many difficult months ahead. I applaud the Mayor and City Council for their reasonable proposals, and I urge the city employee unions to embrace them quickly. City employees are not a protected class and there is no more time to waste. Our city's future depends on it.

And that's The Business Perspective.