Response to the Governor's Proposed Economic Stimulus Package

The California Association for Local Economic Development applauds Governor Arnold Schwarzenegger for his efforts in finding ways, not only to fill the budget gap, but to provide solutions to stimulate California's economy.

The Governor recognizes that growing and retaining jobs are essential to California's economic recovery as is evident in his proposal to accelerate bond spending. CALED believes this proposal will help create jobs and reduce unemployment in the housing construction industry. Additionally, the exemptions proposed by the Governor regarding Proposition 1B projects will help put people back to work now. Cities and counties would benefit from the release of bonds for economic development to strengthen their local economies.

CALED shares the Governor's view that the solution during these uncertain economic times is not just to increase revenue but to seek ways of increasing revenue through the creation of better jobs and assistance to growing and retaining businesses in California. Taxes are the main revenue for our state. Without jobs, neither businesses nor people can pay taxes.

Business and government both have roles to play in economic development. The role of businesses is to marshal and mobilize human, financial, physical and natural resources to create marketable goods and services, thereby creating incomes for families. Government's role is to influence business investment and location decisions with infrastructure, incentives, services, resources, regulation and marketing.

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CALED is a statewide, professional economic development organization dedicated to local economic development. Its more than 1,000 members represent cities, counties, state and federal agencies, economic development corporations and the private sector. These include developers, economic development directors, city managers, realtors, finance consultants, marketing experts, redevelopment professionals, utility representatives, bankers and many others.
For more information, visit CALED at www.caled.org.