SF Chron Political Blog: Business Leaders Call for Budget Solution, Now!

CA biz leaders to Brown, Legislature: FIX BUDGET NOW

 

California's biz community is tired of the Sacramento stalemate about hot to fill the state's $15.4 billion budget deficit and they're letting Guv Brown and the Legislature know it Wednesday.

A dozen of the state's top biz groups -- huddling under the new title of "Coalition for a California Financial Workout Plan" (zzzzzzz...) -- just fired off a letter to the Guv and the Legislature saying: "It's time to re-start negotiations and close the deal. Our elected leaders should consider every day a deadline until an agreement is reached."


The dozen includes local heavyweights like the Silicon Valley Leadership Group and the Bay Area Council and biz groups from LA, the Central Valley, the OC and Sacramento.

Using bizspeak, the leaders say they think that California should have a "financial workout plan."

"In the business world, a financial workout plan is an agreement between a financially troubled company and its lender to alter the terms of repayment. Typically, the lender agrees to modify the terms in exchange for legally binding commitments from the company to fix the structural problems that got the company in trouble.
"That's what California needs: a workout plan where taxpayers agree to extend temporary taxes on the condition that state government fixes the underlying conditions that got California in trouble," the bizzers said.

They offered a five-point plan that sounds similar to what's been on the table for months, to the annoyance of at least one party in the budget talks: Pension reform, extension of temporary taxes, government "closer to the people," a "path" to job creation; gently reforming redevelopment and enterprise zones; and spending and budget controls.

"We disagree with those who don't see the need for a workout -- those who favor an all-cuts budget that will scar California's future, as well as those who want tax extensions without the reforms needed to get California out of this mess.

"Pollsters tell us that voters approved Proposition 25 last November because they are tired of the instability created by our constant budget crisis. They want a balanced budget that does not rely on gimmicks and is completed within the constitutionally prescribed June 15th date.

"We urge the Governor and the Legislature to respect voters and taxpayers by giving us an honest budget plan by June 15th, along with a structural reform plan that puts California back on the right track. That's a workout plan we are willing to support in the voting booth."

The signers include:

Silicon Valley Leadership Group, Los Angeles Chamber of Commerce, Bay Area Council, Orange County Business Council, Friends of the San Joaquin Valley, San Francisco Chamber of Commerce, Oakland Metropolitan Chamber of Commerce, Sacramento Metro Chamber, Los Angeles County Economic Development Corporation, Fresno Business Council, Business Council of San Joaquin and San Gabriel Valley Economic Partnership.