Jobs and the Economy
Unemployment in California has fallen from 12.2% at the peak of the Great Recession to 3.9% now. Per capita income has grown 25% from 2007 to 2018. The poverty rate fell from over 16% in 2010 to under 12% in 2020. The benefits of the economic expansion have been highly uneven by income groups, regions and zip codes.
The budget proposes a first year exemption for newly formed LLCs and other limited liability partnerships from the state’s $800 corporate tax.
The Governor proposes a five-year infrastructure plan of $53 billion:
· $5.4 billion in transportation funding annually
· Broadband for all -- $1 billion
· Water resilience -- $5 billion bond on November 2020 ballot.
Transition to carbon neutrality -- $1 billion over next four years for a climate catalyst fund to provide low interest loans to projects to reduce carbon in the atmosphere
The Governor creates a Future of Work Commission to make recommendations on growing good jobs in tomorrow’s economy and creates a new Department of Better Jobs and Wages consolidating fragmented workforce programs to improve workforce training and development. The budget report notes that the job growth since 2007 has been primarily in lower wage jobs in health care and education services. Manufacturing and finance and construction have all lost jobs.
Higher wages for working Californians.
· Minimum wage increase to $13 per hour for employees of larger (25+) firms and $12 per hour for employees of smaller (25 and less) firms
· Doubling and expanding the California earned income tax credit
· Enforcement of the CA Supreme Court’s Dynamex decision on employees vs. independent contractors. The benefits of employee status include: UI, worker’s comp, paid time off, reimbursement for expenses, minimum wage, protections against discrimination and harassment, plus health insurance where offered.
Addressing regional variations in economic development
· $33 million for a Fresno-Merced Food Innovation Corridor
· $17 million for Fresno Integrated K-16 Education Collaborative
· $25 million to grow medical student enrollment in the UC Riverside Medical School
· $15 million for a partnership between UC Merced and UCSF Fresno branch for more local health providers
· Positions to grow economic development in the Central Valley, Inland Empire, Central Coast and North Coast
Prepared by: Lucien Wulsin
Dated: 1/15/20