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Chamber VOICE Chamber VOICE FALL 2010 · VOLUME 9 · ISSUE 3 A publication of the Los Angeles Area Chamber of Commerce Reports show Chamber education, workforce development efforts are impacting students Chamber works with City to reform business tax and attract jobs to OPEN FOR BUSINESS Los Angeles Jobs are the most vital part of the economic recovery, but how can L.A. City Hall help businesses in the City grow Our goal is to take a look and prosper? “ A Cash for College Workshop volunteer assists a student with at the City business tax and his Free Application for Federal School Aid (FAFSA). “ One of the best ways for the City to support businesses recommend how to make it would be a complete overhaul of the City’s business tax. When Jose Gaspar was in high school, taking That’s why City officials created a Business Tax Advisory more business-friendly. Advanced Placement courses and attending Committee (BTAC) comprised of local business leaders. University of California, Berkeley's Summer Bridge BTAC has outlined a series of recommendations to amend — Craig Morris program, his biggest roadblock was how to pay for Business Tax Advisory Committee member the City’s gross receipts tax to better attract and retain college. businesses. But a visit to his local Cash for College Financial The Chamber is working with BTAC to ensure a strong “Because of the high tax rate, the City of Los Angeles is Aid Workshop in 2009 connected him with the “customer-first” process at City Hall, making it easier to not competitive with cities like Glendale and Calabasas,” resources he needed, and he is now focused on learn about City services, apply for necessary licenses and said the L.A. Area Chamber’s BTAC member Craig Morris, earning a degree in education at the University of pay fees/taxes, and develop better criteria for determining KPMG LLP. “Since there’s been a shift from brick-and- California, Berkeley. which businesses are audited by the City. mortar to service businesses, businesses are free to move to cities that do not have a high business tax.” Two studies released by third-party evaluators Recent accomplishments include the creation of a revealed key findings that validate Cash for College three-year business tax holiday for any new business that Los Angeles has the highest gross receipts tax rate of all and the L.A. Area Chamber’s Work Readiness begins operations in Los Angeles in the next 36 months. 88 cities in L.A. County, and one of the highest of any Certification (WRC) efforts, suggesting that both The holiday would apply to every new business, regardless major city in the United States. In an information-driven are effective in expanding youth opportunities. of their annual gross receipts. Under current law, new economy, where customers are as likely to be overseas businesses are exempt from paying City business taxes or across the country as they are to be next door, many The Cash for College evaluation, conducted by for their first two years only if they gross less than businesses are very flexible about where they locate Public Works, Inc., surveyed participants of $500,000 per year. their offices. This has created an environment in which the 2008-09 College & Career Convention and entrepreneurs looking to start a business can locate Financial Aid Workshops, both spearheaded anywhere, and established L.A. businesses have become locally by the Chamber. Continued on page 4 recruiting targets for other cities and states. “Of the many findings, one of the most significant showed that 84 percent of students who attended the Financial Aid Workshops completed the Free Fall advocacy will focus on connecting business leaders with City Hall Application for Federal Student Aid (FAFSA), while less than half — 48 percent of those who did ACCESS L.A. City Hall not attend a workshop — reported completion,” The Chamber and local business leaders met with key said Chamber Senior VP of Education & stakeholders at City Hall over the summer to directly ACCESS Workforce Development David Rattray. advocate on key business issues. These constituent meetings included discussion regarding the list of Y HALL The study also showed that 65 percent of students Top 20 employers in each councilmember’s district. L.A. CIT who attended workshops reported receiving some These efforts will culminate with ACCESS L.A. City form of aid, compared to only 44 percent for Hall, will be held Oct. 27 in conjunction with a non-attendees. City Council meeting. “These results demonstrate that Cash for College is doing exactly what it set out to do eight years ago November 2010 California Election when the effort began," Rattray said. "And that’s to As the voice of business for the L.A. region, the Los Angeles Area Chamber of Commerce has expand college access for local youth by building worked to create a favorable business environment since 1888. The Nov. 2 California Election awareness about the availability of financial aid.” Ballot contains critical initiatives that will impact L.A. businesses and the economy for years to 2010 come. We hope you will join us in voting for a better L.A. In the past, research has shown that cost is a More ballot positions to be announced on Sept. 26. major concern for students and parents, and can SUPPORT influence which schools they apply to and whether OPPOSE or not to attend college at all. Proposition 20 Proposition 24 Will add the task of re-drawing congressional district Would eliminate three business tax reforms. The Public Works evaluation revealed that 82 boundaries to the citizens’ commission created by Proposition 11. Proposition 27 percent of students who attended workshops Would repeal Proposition 11 and return the task of reported that they applied for admission to a Proposition 22 redistricting to the California State Legislature. college or university, compared to only 62 percent Prohibits State government from taking designated of non-attendees. types of local funds. Proposition 26 Continued on page 6 Will require a two-thirds vote in the Legislature to For a complete roundup of Chamber-supported pass new taxes and fees. ballot initiatives, go to lachamber.com/votes. Follow the Los Angeles Area Chamber of Commerce on and at lachamber.com. A better L.A. is our business Join us at City Hall and get support for your business Calendar of Events Want to know what’s coming up at the Chamber? E ach fall, the Chamber connects hundreds of Visit lachamber.com/events to view and register for businesses leaders with City officials at “ACCESS upcoming events. Below are some key signature events L.A. City Hall.” The purpose of ACCESS City Hall you won’t want to miss: is to champion making L.A. more business-friendly for job creation and to improve our overall quality of life. Event Highlights These days, businesses can locate anywhere on the globe where there’s an internet connection. SUN-THU | SEPTEMBER 12-16 That’s why L.A. must offer job creators more than California-South Korea: great weather and close proximity to the beach Globalizing Trade & Investment Trade Mission to Seoul, Korea and mountains. Competitive tax rates, streamlined business permitting with Governor of California and excellent customer service from City Hall are all hallmarks of a strong The Chamber and Gov. Arnold Schwarzenegger's business climate. L.A. isn’t there yet, but we're starting to make progress, and office will lead a business delegation charged with ACCESS City Hall is an important step. promoting California in South Korea during a fall trade mission to Asia. Contact Jasmin Sakai-Gonzalez, We encourage you to join us on Wednesday, Oct. 27, for a special event at 213.580.7569 or [email protected]. City Hall to advocate for a better L.A. The morning will include remarks by Mayor Antonio Villaraigosa and City leaders, followed by a City Council meeting focused on business and job creation. WED | OCTOBER 27 ACCESS L.A. City Hall Most elected officials have never owned or managed a business. That's why ACCESS they need to hear from you in order to fully understand and appreciate what it Hundreds of business and civic leaders participate in the annual, no-cost ACCESS L.A. City Hall takes to operate a business in Los Angeles. Y HALL event. Business people from throughout the region You are the job creators of Los Angeles and the key to a vibrant future our L.A. CIT converge on City Hall for a half-day of meetings on issues vital to the city. Contact Beverly Kenworthy, community. Join us in letting City Hall know that their partnership with 213.580.7531 or [email protected]. business is essential to creating the jobs we need in Los Angeles. Attend ACCESS L.A. City Hall to make a difference for your business and our community. TUE | NOVEMBER 9 Southern California Visionaries Sincerely, Luncheon The Southern California Leadership Network presents awards to individuals in the Southern California region who have demonstrated outstanding Gary L. Toebben achievements in civic leadership and celebrates those President & CEO whose vision has inspired action, collaboration and Los Angeles Area Chamber of Commerce positive community outcomes. Contact Kevin Cottrell, 213.580.7577 or [email protected]. WED-THU | DECEMBER 8-9 I Cash for College: speak College and Career Convention Chamber VOICE is a quarterly publication of the Los Angeles Area Chamber of Commerce FASFA The two-day Cash for College: College and Career 350 S. Bixel St., Los Angeles, CA 90017. Convention, one of the biggest events of its kind in the nation, expands access to education for all L.A.
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