Sen. Bob Dutton

Opinion
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Sen. Bob Dutton: Legislators need to nurture jobs creation

Published: Thursday, Jul. 30, 2009 - 12:00 am | Page 17A

California is mired in the midst of a deep recession not seen since the Great Depression.

The state's unemployment rate, already in the double digits and higher than most other states, continues to rise. In San Bernardino and Riverside counties, which I represent, unemployment has topped 13 percent with no end in sight to the number of jobs being lost. State revenues are falling dramatically as businesses downsize and close up shop. Just recently, the state controller reported that revenue to California for the month of June was $1 billion below projections – largely as the result of the state's growing job losses.

While the current recession is national and even international in scope, many of the problems California faces are self-inflicted.

For example, the state's business climate continues to receive low marks, ranking dead last in a survey of CEOs by Chief Executive Magazine for the fourth year in a row. Nearly every other study on the cost of doing business also ranks California at or near the bottom.

Given these sobering realities, one would expect California's legislative leaders to be busy prioritizing measures aimed at creating jobs and stimulating the state's economy.

They're not.

The California Chamber of Commerce has identified 18 "job creator" bills introduced this year in the Legislature. These bills, authored by Republicans and Democrats, would stimulate California's economic recovery and spur job creation.

Included are common-sense measures that among other reforms would require bureaucrats to consider the economic impact new regulations have on California businesses. Additional measures would create flexibility for employee work schedules and reduce unnecessary litigation costs.

Still others would conform California's tax law to federal law and spur needed investments in real estate and water infrastructure.

Sadly, all but four of these 18 job creator measures have been blocked, gutted or put on hold.

Of the remaining four, only one has become law. The other three face an uncertain future – not a great track record for leaders whose constituents are losing their jobs at a far higher rate than the national average.

What baffles me more than anything is that far too many in the Legislature seem oblivious to the cause-and-effect relationship that exists between jobs and tax revenue.

As a result, instead of supporting job-creator measures to help put hardworking Californians back to work and provide much-needed revenues to the state, they focus their time and energy on introducing dozens of counterproductive measures dubbed "job killers" by the California Chamber of Commerce.

If enacted, these bills would place greater tax and regulatory burdens on businesses throughout our state, resulting in further job losses and ensuring that California will continue to lead the nation with the embarrassing distinction of being the worst place to do business.

Despite California's current economic crisis, poor economy and soaring job losses, far more job-killer than job-creator measures will likely make their way to the governor this year.

Thankfully, Gov. Arnold Schwarzenegger has a good track record of vetoing these job-killer measures when they reach his desk. Last year he wisely vetoed nine of the 10 job-killer bills the Legislature sent him.

But while the governor can turn back bills that will further damage California's job market, he can't unilaterally enact job-creation measures, nor can he redeem the time and energy lawmakers fiddled away on misguided priorities as jobs across our state burn.

To truly address its budget woes, California must renew a commitment to private sector job creation and entrepreneurship. Hardworking Californians and private businesses are and always will be the state's only source of tax revenues. When they struggle, it leads to high unemployment rates and fiscal crisis; when they succeed, the state, the nation and the world benefit.

It's time for California's legislative leaders to declare war on unemployment by prioritizing and fast-tracking legislation that would get people back to work, boost the economy and bring businesses back to the Golden State.


Sen. Bob Dutton, R-Rancho Cucamonga, serves as the Senate Republican point person on jobs and budget issues.


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