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Governor Brown delivers State of the State

Yesterday, Governor Brown delivered the State of the State as required by the State Constitution. Much of the Governors 20 minute address to the legislature centered around his budget proposal to bring the deficit down. His plan makes cuts to education, safety and health and human services, while enacting tax measures to close the budget shortfall. Though the Brea Chamber of Commerce commends the Governor for his intent to bring the California’s fiscal house in order, enacting new taxes during difficult economic times is not the most prudent course of action. The Legislative Analysts Office has called into question the nearly $7 billion dollars that the tax initiatives are projected to raise, asserting that actual revenue will likely be less than $4.8 billion during the first budget cycle.

The Governor believes that California is “on the mend” and will continue to thrive as a land of opportunity. He focused on several initiatives he feels are key to keep with California’s innovate spirit, including high speed rail, clean tech venture capital projects and the Bay Delta Conservation Plan. The Governor also spoke extensively about education and his desire to see a change in the way the state allocates funding, while at the same time defending education as the largest expenditure of tax revenues. He very briefly touched on his 12-point pension reform plan, calling pensions a “real problem” and demanding action this year. While it remains to be seen if meaningful reform is possible with the current political climate, many in the private sector are pleased to see this issue make the Governor’s agenda.

Also mentioned during the address was the recent restructuring of the office of business development. GO-BIZ is now located within the office of the Governor, and is tasked with assisting the business community in navigating the gamut of state regulations. The Chamber applauds this effort by the Governor, and hopes that he takes the next step by actively pursuing a streamlined regulatory environment for business. A business-friendly regulatory environment is the most direct path to a strong economy and continued job creation.

The Brea Chamber of Commerce is committed to keeping members informed and advocating on behalf of business interests in our region. Let your state legislative representative know how you feel on this issue. Together we can build a strong business community.