CalChamber President and CEO Jennifer Barrera today responded to Governor Gavin Newsom’s budget proposal with the following statement:
“CalChamber commends Governor Newsom for taking decisive action in his proposed budget to address some of the state’s most pressing issues and making commitments that will strengthen California’s economy and improve quality of life for all Californians.
“We are grateful that the Governor responded to CalChamber’s request to pay down $3 billion of a nearly $20 billion deficit that has accrued to the Unemployment Insurance Fund in the wake of massive unemployment due to the pandemic. Through allocation of these funds, the Governor will help avert the prospect of additional, huge multi-year payroll tax increases on employers and work toward stabilizing the fund for employees who need the assistance in the future.
“We also appreciate the Governor working with CalChamber to restore tax credits, including the Research and Development tax credit and the ability to utilize net operating losses. The $5.5 billion to restore these tax incentives and tools will spur innovation and create high-paying jobs in all regions of California in many diverse economic sectors.
“CalChamber further appreciates the Governor’s commitment to mitigate the effects of the drought, bolster tourism, improve port infrastructure, fix our roadways, enhance wildfire suppression and prevention, support workforce development efforts and combat organized retail theft through the budget proposals announced today.
“Finally, we applaud the Governor’s efforts to continue to support small businesses that have been disproportionately impacted by this pandemic with additional financial relief through fee waivers and grants.
“We look forward to working with the Governor and the Legislature to enact meaningful policies that will keep costs in check for employers and ensure businesses will continue to invest in our economy and our workers.”
The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California’s economy and create jobs. Please visit our website at www.calchamber.com.