ARTICLE
The California Legislature just closed out the first session of the 2017-18 Legislature and sent more than 1000 bills to Governor Brown for his approval or veto. This session has been described by different people as the most productive session in some time; others describe it as the biggest tax increase by the California Legislature since 1935 when that era of legislators created the state income tax as well as the vehicle license fee. There are varying reports on the successes that come from our state Capitol. One thing is for certain, the Democratic controlled legislature has pressed forward on several fronts —exemplified by Legislative Leadership. It took them until 2 a.m. last Saturday morning, but lawmakers finished this year's session with landmark legislation on immigration, climate change and poverty headed to the Governor's desk. State Senate President Pro Tempore Kevin de Leon declared this was one of the most "accomplished legislative sessions in California history." Although the California economy has continued to grow, the pace of growth has slowed markedly in recent months: The 1.4% employment gain in April 2017 was less than half of the 3.3% rate achieved one year earlier. The slowdown was evident across all industries, too. Health Care grew by 2.6% year-to-year in April 2017 compared to a 4.2% gain in April 2016, while Professional Services slowed from 3.0% growth a year ago to 1.0% in April 2017, and Leisure and Hospitality saw a 2.7% increase this year, well behind the 4.4% gain of last year. In a significant reversal of trend, Information was down by 1.7% year-to-year in April after an impressive 9.7% yearly gain a year ago. Keep in mind that California has seen impressive job gains over the last five years. From 2012 through 2016, statewide job gains averaged 2.7% growth per year. That is more than double the 25-year average of 1.1%, and was outpaced only in the late 1990s when the rate of growth hit 3.2%, also over a five-year stretch. Now, let’s see another version of California’s economic picture as reported in the San Bernardino Sun: http://www.sbsun.com/2017/09/11/californias-high-cost-of-living-hampers-states-growth/amp/ The Editorial states: “The Golden State’s economy is poised to surpass the United Kingdom’s as the fifth-largest in the world, but that prosperity is tenuous and rather unevenly distributed. More than 37 percent of California households could not last three months living at the poverty level if they were hit with an economic shock like the loss of a job or other significant drop in income, according to a recent study by Prosperity Now. In addition, the group notes, 46 percent of households in the state did not set aside any savings for emergencies last year, and more than one in five California jobs are in low-wage occupations.” California’s cost of living is second only to Hawaii’s, the Missouri Economic Research and Information Center has revealed. The analysis looked at six measures — groceries, housing, utilities, transportation, health and miscellaneous costs — and California ranked in the bottom 10 in every category, including ranks of 49th in housing, 48th in transportation and 46th in grocery costs. The San Bernardino’s Editorial sums up California’s economic position in this statement: “Californians have long paid a “sunshine tax” for the great weather and other natural benefits of living here, but if government tax and regulatory policies continue to take a larger bite — particularly from the shrinking middle class — the state’s future will not shine so brightly.” Another way to look at California’s economic picture is through the lens of the citizens of our state. In a recently conducted poll, more than half of California voters say the state’s housing affordability crisis is so bad that they’ve considered moving, and 60 percent of the electorate supports rent control, according to a new statewide poll. The findings from UC Berkeley’s Institute of Governmental Studies reflect broad concerns Californians have over the soaring cost of living. Amid an unprecedented housing shortage, rents have skyrocketed and tenants have faced mass evictions, especially in desirable areas. “It’s an extremely serious problem,” said poll director Mark DiCamillo. “People are being forced to consider moving because of the rising cost of housing — that’s pretty prevalent all over the state.” http://www.sacbee.com/news/politics-government/capitol-alert/article174026561.html The dynamics of California’s economy with all the highs (job growth, innovation, gig and share economics) and lows (rising housing costs, increase in homelessness, growing gap between wealth vs. middle income, equity pay and diversity) have become the talking points in conversations at business conferences and at government meetings throughout the state. No policy maker, business or community leader can claim they have the magic answer to our state’s changing demographics. It will take a concerted effort from our state elected officials, our local and regional government leaders, community and businesses leaders to work together so that the shape of our state continues to benefit all of us. Political, business and community leaders need to step forward, be engaged, and have an appetite for change in the local decision making process if we are to continue on a positive path. That statement is not a panacea for change — it is a signal that the significant challenges require remarkable actions. It all starts at the local level.
The California Legislature just closed out the first session of the 2017-18 Legislature and sent more than 1000 bills to Governor Brown for his approval or veto. This session has been described by different people as the most productive session in some time; others describe it as the biggest tax increase by the California Legislature since 1935 when that era of legislators created the state income tax as well as the vehicle license fee.
There are varying reports on the successes that come from our state Capitol. One thing is for certain, the Democratic controlled legislature has pressed forward on several fronts —exemplified by Legislative Leadership. It took them until 2 a.m. last Saturday morning, but lawmakers finished this year's session with landmark legislation on immigration, climate change and poverty headed to the Governor's desk. State Senate President Pro Tempore Kevin de Leon declared this was one of the most "accomplished legislative sessions in California history." Although the California economy has continued to grow, the pace of growth has slowed markedly in recent months: The 1.4% employment gain in April 2017 was less than half of the 3.3% rate achieved one year earlier. The slowdown was evident across all industries, too. Health Care grew by 2.6% year-to-year in April 2017 compared to a 4.2% gain in April 2016, while Professional Services slowed from 3.0% growth a year ago to 1.0% in April 2017, and Leisure and Hospitality saw a 2.7% increase this year, well behind the 4.4% gain of last year.
In a significant reversal of trend, Information was down by 1.7% year-to-year in April after an impressive 9.7% yearly gain a year ago. Keep in mind that California has seen impressive job gains over the last five years. From 2012 through 2016, statewide job gains averaged 2.7% growth per year. That is more than double the 25-year average of 1.1%, and was outpaced only in the late 1990s when the rate of growth hit 3.2%, also over a five-year stretch.
Now, let’s see another version of California’s economic picture as reported in the San Bernardino Sun: http://www.sbsun.com/2017/09/11/californias-high-cost-of-living-hampers-states-growth/amp/
The Editorial states: “The Golden State’s economy is poised to surpass the United Kingdom’s as the fifth-largest in the world, but that prosperity is tenuous and rather unevenly distributed. More than 37 percent of California households could not last three months living at the poverty level if they were hit with an economic shock like the loss of a job or other significant drop in income, according to a recent study by Prosperity Now. In addition, the group notes, 46 percent of households in the state did not set aside any savings for emergencies last year, and more than one in five California jobs are in low-wage occupations.”
California’s cost of living is second only to Hawaii’s, the Missouri Economic Research and Information Center has revealed. The analysis looked at six measures — groceries, housing, utilities, transportation, health and miscellaneous costs — and California ranked in the bottom 10 in every category, including ranks of 49th in housing, 48th in transportation and 46th in grocery costs.
The San Bernardino’s Editorial sums up California’s economic position in this statement: “Californians have long paid a “sunshine tax” for the great weather and other natural benefits of living here, but if government tax and regulatory policies continue to take a larger bite — particularly from the shrinking middle class — the state’s future will not shine so brightly.”
Another way to look at California’s economic picture is through the lens of the citizens of our state. In a recently conducted poll, more than half of California voters say the state’s housing affordability crisis is so bad that they’ve considered moving, and 60 percent of the electorate supports rent control, according to a new statewide poll. The findings from UC Berkeley’s Institute of Governmental Studies reflect broad concerns Californians have over the soaring cost of living. Amid an unprecedented housing shortage, rents have skyrocketed and tenants have faced mass evictions, especially in desirable areas.
“It’s an extremely serious problem,” said poll director Mark DiCamillo. “People are being forced to consider moving because of the rising cost of housing — that’s pretty prevalent all over the state.”
http://www.sacbee.com/news/politics-government/capitol-alert/article174026561.html
The dynamics of California’s economy with all the highs (job growth, innovation, gig and share economics) and lows (rising housing costs, increase in homelessness, growing gap between wealth vs. middle income, equity pay and diversity) have become the talking points in conversations at business conferences and at government meetings throughout the state. No policy maker, business or community leader can claim they have the magic answer to our state’s changing demographics. It will take a concerted effort from our state elected officials, our local and regional government leaders, community and businesses leaders to work together so that the shape of our state continues to benefit all of us. Political, business and community leaders need to step forward, be engaged, and have an appetite for change in the local decision making process if we are to continue on a positive path.
That statement is not a panacea for change — it is a signal that the significant challenges require remarkable actions. It all starts at the local level.