This week the Bay Area Council released its quarterly Business Confidence Survey showing that business confidence has crept into positive territory for the first time since the summer of 2007. The business confidence index – the number that distills the survey findings – registered at 53 out of 100. A reading over 50 signals a positive economic direction and below 50 is negative. The results indicate that we may have finally hit bottom and are looking up. Unfortunately, the new found optimism doesn’t seem to be translating into new jobs. Layoffs still outweigh hires in almost every corner of the Bay Area, the Survey shows. Overall, 23 percent of respondents expect to see their workforce decrease over the next six months, while 18 percent expect an increase and 56 percent expect no change.

Business Confidence Press Release
Jobs Chart | Confidence Index | Data

The Berkeley City Council adopted a resolution at a recent meeting to go on record in support of a planned terminal at the Berkeley Marina. The Water Emergency Transportation Authority (WETA) is well into the environmental evaluation and permitting process, and official support from the City of Berkeley will help to smooth the remainder of the process.

WETA recently broke ground on construction of a new terminal in South San Francisco; the Berkeley terminal will be the first new terminal on the eastern shore of the Bay. Both terminals will provide not only new commute and recreation transportation but will also add critical transportation system redundancy and flexibility that will be available when bridges and highways are unexpectedly closed (and if you thought that the recent unplanned closure of the Bay Bridge was inconvenient, just wait until a 1906-scale earthquake hits).

The Council thanks Leamon Abrams, WETA's new Community Relations Manager, for reaching out for our support. We look forward to working closely with Leamon – and Nina Rannells, WETA's new Executive Director – to secure the funding and approvals needed to build out a true region wide ferry system.

This week the Bay Area Council Economic Institute released a new report, “Global Reach: Emerging Ties Between the Bay Area and India,” which assesses the unique ties linking the world’s innovation capital with the fastest growing major economy after China.

Once perceived primarily as a site for call centers and for low-cost off shoring, India has rapidly scaled the economic ladder to provide increasingly sophisticated services that are embedding its companies and workers into the fabric of the global economy. It is also developing dynamic markets that are attracting growing investment by Bay Area venture capital, technology and consumer-oriented companies. 

The report is being released at two events – one today in Silicon Valley and one in San Francisco on Monday.  You can download the Executive Summary here – or visit this webpage to download the full report.  The Bay Area Council plans to build stronger ties with our counterparts in India and will keep you informed of our progress.

Public option? Individual mandate? Universal coverage? The Bay Area Council, in partnership with the Committee for Economic Development, brought together the Bay Area business community to discuss the various components of the national health care debate.

Diving into the details, a panel of business leaders – Lloyd Dean, Catholic Healthcare West, Lenny Mendonca, McKinsey & Co., Greg Adams, Kaiser, and Wade Rose, Catholic Healthcare West – took pointed questions from Lynn Jimenez of KGO’s Morning News. This was a special meeting of the Council’s Healthcare Committee – and the first meeting with Greg Adams as the Committee Chair. We welcome Greg and look forward to his leadership on this important issue.

Also featured at the meeting was Ken Shachmut who gave a presentation on Safeway’s nationally recognized, innovative approach to health care – which is partially based on rewarding healthy behaviors. According to their research, 70% of healthcare costs are driven by behavior. They encourage prevention and wellness by linking healthy behaviors to financial incentives. You can download Ken’s presentation by clicking here. Thank you to all the members participated in this meeting– and if you are interested in getting involved contact Linda Galliher.

This week Congress passed – and this morning President Obama signed - a $24 billion bill to help the unemployed and support the housing market – with a Net Operating Loss (NOL) provision included as part of the deal - a major part of the Council’s 2009 legislative agenda.
 
The bill extends unemployment benefits that were due to expire for an additional 14-20 weeks.  It also renews an $8,000 tax credit for first-time home buyers, while also expanding it to cover many other home purchases – another priority BAC members advocated for while in D.C. last month.  The NOL provision allows businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years – extending it from two years.

NOL may not roll of the tongue, or come up often in conversation, but its more than just an accounting term – it’s about jobs and economic survival.  An enlightened NOL tax policy allows businesses to weather tough times, maintain their payrolls and avoid layoffs.

A delegation of Bay Area Council members met with Congressman Richard Neal (D – Massachusetts), leader of the NOL fight in Congress, on our May trip to Washington D.C. - and again last month – to offer their support and expertise on the issue.  In addition, it was a key issue while meeting with other members of Congress to support the extension.  The Bay Area Council’s Urban Development Working Group has also been engaged on the issue and coordinated broader outreach to Congress by the Bay Area business community.  The Bay Area Council is happy to have played a role in such a huge win for business.

Major Deal Overhauling State's Water System Reached
Wednesday, November 4, 2009
posted by: Andrew Michael

Today, after many days and a long night of debate in the Legislature, lawmakers passed a long awaited, comprehensive water package.  We expect the Governor will sign off on this five-bill package – which will bring a much needed overhaul to the State’s antiquated water system.  The package includes an $11.1 billion bond measure that will be up for voter approval in November 2010. 

Our work in this area, with the leadership of Jim Levine, Chair of our Water Policy Committee and many members, in collaboration with over 15 major business associations from around the state, has led the effort to reform California’s water governance system.  Thanks to those of you who recently urged the legislature to adopt a strong governance structure in the new water plan.  Many of the reforms sought by the Bay Area Council are included in the bills that were passed this morning. 

The Bay Area Council has been leading efforts to resolve water issues affecting the state and the Bay-Delta for many years.  It was the Council’s leadership at the beginning of the millennium that sought to bring together all parties from the water, environmental, business, and agricultural community in the CalFed process. 

In recent years, the Bay Area Council has worked with other business groups, and water agencies in northern and southern California, Delta representatives, and with major environmental groups to explore solutions to a water and ecological system in crisis.  Through this new collaboration of leaders from Northern and Southern California, we found more in common than we had expected, and came together on a number of common sense strategies to resolve the difficult issues of water supply reliability and ecosystem recovery. 

We are heartened by the water deal but there is much more work ahead.  We plan to continue our work – with your help – on this very important issue.  There is a case to be made that the package doesn’t go far enough – but given the complexities of the issues and the challenge of passing meaningful legislation – we think this package is a good outcome.  We congratulate the Legislature for their work and the Governor for calling the special session.
Highlights of the water package include:

• Oversight:  A new seven-member board to oversee the Sacramento-San Joaquin River Delta. The board would consist of gubernatorial and legislative appointees, along with the head of an existing delta commission. The board could approve a controversial peripheral canal to channel water around the delta.

• Conservation:  A 20-percent conservation mandate for urban areas, with credits for cities that have made significant conservation efforts. Agricultural entities will have to follow best practices for water use.

• Groundwater Monitoring: New regulations to monitor groundwater levels throughout the state.

• Water Rights: Increased penalties for illegal water diversions, although the penalties and enforcement were significantly weakened from an earlier plan.

• Financing: A $11.1 billion bond to pay for the overhaul. Of the total, $3 billion would be set aside for new water storage, which could be reservoirs, and more than $2 billion would go toward restoration of the delta ecosystem. Other money in the bond would pay for water recycling, drought relief, conservation and watershed protection projects.

California’s cash strapped and underperforming schools need help. Yet, without a comprehensive system to track student data and performance, the state was unlikely to qualify to compete for a large pot of money in the federal Race to the Top education funds. In frustration with his home state, Congressman George Miller, who chairs the House Committee on Education and Labor, ended a recent Bay Area Council meeting saying, “We cannot continue to throw education dollars at a broken system.” It was sobering to hear this given the Bay Area Council’s Education Committee’s continuing fight for a comprehensive education data system. Our hard work finally paid off when Governor Schwarzenegger signed SB 19 (Simitian), a bill that removes barriers to federal stimulus dollars – and strengthens the State’s ability to accurately track student performance.

State Senator Joe Simitian (D-Palo Alto) thanked our members for their work. “The signing into law of SB 19 is the culmination of several years’ hard work. Not only does the bill make California eligible to compete for $4.5 billion in federal education funding but it will put in place a data system that will benefit our children and their teachers. I thank the Bay Area Council for their support over those years.”

We, in turn, congratulate Senator Simitian. California lags in the tracking of student performance. We are working diligently to change that – and this bill is a huge step.

SB 19 will allow California to do the following:

• Use student data to evaluate teacher performance and to make teacher assignment decisions.
• Link the collection and flow of data, through a longitudinal system, from Pre-K, through K-12 and into higher education.
• Compete for federal Race to the Top stimulus funds that will be awarded to states that are innovative and reform minded.

For more information on California’s quest for federal grant monies, and suggested reform legislation from the Governor click here.

A delegation of California’s leading infill developers, architects and land use lawyers participated in a Bay Area Council sponsored trip to Washington D.C. last week to talk to the administration and members of Congress about the many roadblocks that currently impede the progress of sustainable dense, transit oriented development in our cities.

Led by Michael Covarrubais, Chair of the Land Use and Transportation Committee, Andrew Giacomini, Chair of Government Relations and Jeff Heller Co-Chair of our Climate Change Committee, and Jim Wunderman President & CEO of the Bay Area Council, seventeen delegates and five Bay Area Council staff made the trip back to lobby for smart growth policies and practices.

A recent directive from President Obama instructed the Department of Transportation, HUD, and the Environmental Protection Agency to work in a coordinated manner in order to make sustainable urban development and healthy livable communities the norm rather than the exception. We met with senior officials from all three agencies as well as Fannie Mae and told them in some frank and open discussions we told them what gaps needed to be bridged and roadblocks removed in order for the President’s vision to become a reality.

We also took our case to the Capitol where we met with Speaker Nancy Pelosi, Congressman George Miller, Congresswoman Zoe Lofgren, Congressman Earl Blumenauer, Congressman Richard Neal and senior staff from Congressman Barney Frank’s Financial Oversight Committee.

If one common thread connected all our meetings it was that we were visiting at the right time and that our message and our leadership on this important issue was noted and valued. The follow up work is ongoing and we hope to report some tangible results in the very near future.

Special thanks to Brendan Dunnigan and HKS Architects our dinner sponsors, Andy Ball (Webcor) and Jeff Heller (Heller Manus Architects) or cocktail reception sponsors, and our full team of delegates;

Andy Ball, President & CEO, Webcor Builders
William E. Berry, President & CEO, University Associates
Margo Bradish, Partner, Cox, Castle & Nicholson LLP
Michael Covarrubais, Chairman & CEO TMG partners
Shelley Doran, Vice President, Webcor Builders
Brendan Dunnigan, HKS Architects Inc.
Jim Ghielmetti, CEO, Signature Properties Inc.
Andrew Giacomini, Managing Partner, Hanson Bridgett LLP
Jeffrey Heller, President, Heller Manus Architects
George Marcus, Co-Founder & Chairman, Marcus & Millichap
Chris Marlin, Vice President, Lennar Homes
Stephen Richardson, Senior Vice President, Alexandria REIT
John Stewart, Founder & Chairman, the John Stewart Company
Tom Sullivan, Co-Founder & Managing Partner, Wilson Meany Sullivan
Nicholas Targ, Partner Holland & Knight
J.T. Wick, Principal Berg Holdings

And thanks to the Bay Area Council team, Jim Wunderman, Pearl Mazzini, George Broder, Scott Zengel and Matt Regan for their work on this very successful venture .

The Bay Area Council Education Committee recently met at the Commonwealth Club to discuss priorities in education reform – a major challenge for both California and the country as a whole, and a challenge the Bay Area Council has stepped up to lead on behalf of the business community. Attendees were eager to engage with Matt Miller of McKinsey & Co and education guru Stanford Professor Linda Darling-Hammond.

Both speakers emphasized the striking achievement gaps that exist between high and low income students, white and minority students, between California and other states, and between the United States and other developed countries. In the U.S., a child’s low socioeconomic status has become a predictor of poor academic achievement. Internationally the achievement gap between students from high and low income brackets is much less than in the U.S., indicating that family income need not be destiny.

There is hope, Linda Darling-Hammond assured one hundred Bay Area Council members, educators and thought leaders, that there are education reforms that can turn around the downward slide of California public education, now 49th in the nation. She pointed to a wealth of federal stimulus dollars that can help economically strapped California make significant progress toward supporting effective teachers in every classroom. Many of the most lucrative funding opportunities come from grants in U.S. Secretary of Education Arne Duncan’s, well publicized $5 billion Race to the Top Fund, which will be allocated on a competitive basis. In addition to Race to the Top funds there is a list of alternative funding opportunities, as well as notes from Linda Darling-Hammond’s presentation: Moving California’s Schools from Worst to First: What will it really take to Leave No Child Behind?

Matt Miller from McKinsey & Company presented their report, The Economic Impact of the Achievement Gap, which makes a convincing case that we all have a stake in fixing education. The national economy is already showing signs of the negative impacts of a failing education system. By failing to provide the best education for all of our youth, we short change immense human potential. We diminish productivity and lifelong earnings with the cumulative effect imposing the economic equivalent of a national recession that is substantially deeper than the one we are currently experiencing.

For the past year, the Bay Area Council has led the charge to systematically reform our State through a Constitutional Convention. Repair California, the coalition formed to officially campaign for the cause, is holding town hall meetings across the State to provide education on the proposal for a limited Constitutional Convention, as well as to get input from participants.

There are three town hall events headed to the Bay Area, brought to you by Repair California, and local partners:

Silicon Valley Constitutional Convention Town Hall
Friday, July 31, 2009
9:00 a.m. Registration | 9:30 a.m. to 12:00 p.m. Program
AMD Commons Building
991 Stewart Drive
Sunnyvale, CA 94085
Cost: Free, RSVP Required
Click here for more information

San Francisco: Repairing California: Time for a Constitutional Convention
Tuesday, August 11, 2009
6:00 p.m. to 8:00 p.m.
PG&E Auditorium
77 Beale Street
San Francisco, CA 94105
Cost: Free, RSVP Required
Click here for more information

Save the Date for the East Bay Constitutional Convention Town Hall Meeting on Thursday, September 17, 2009.

The Bay Area Council is pleased to share our strengthening of ties across the country on the issue of early childhood education (ECE). In particular, we are delighted that Jim Wunderman, President & CEO of the Bay Area Council, has recently accepted an invitation to join the Advisory Council to the Partnership for America’s Economic Success, a project of the Pew Charitable Trusts. Jim’s champion status as an ECE supporter and his wise strategic council to Pew have already made him a valuable resource to the Partnership, and we are excited about the potentials for learning and advancement of ECE afforded by this new national alliance.

Our strong relationship with the Pew Charitable Trusts has developed over time, beginning with an early childhood education event at the Milken Institute (sponsored by the Pew Charitable Trusts) in February 2008 at which our Chairman, Lenny Mendonca, spoke. Then, in September 2008, Jim Wunderman and Linda Galliher, Vice President of Education and Healthcare, attended the Pew-sponsored Economic Summit on Early Childhood Investment in Telluride, Colorado. Jim was an active and vocal participant in that conference of business leaders, discussing the challenges and future of ECE in each state. Jim was also able to spend time talking through salient issues with James Heckman, economist, Nobel Laureate, and supporter of ECE given both the economic realities and return on social investment afforded by early care and education.

Since last year, Pew has reached out to the Bay Area Council for advice and counsel during a reformulation of its ECE strategy for 2009.  We look forward to our continued and growing partnership!

To learn more about how the Bay Area Council is advancing ECE in California and around the nation, please contact Matt Regan, Director of Government Relations and Early Childhood Education, at mregan@bayareacouncil.org.

Please also see the Council’s recently released report—Key to Economic Success in the 21st Century: Investment in Early Childhood Programs —on the state of early childhood education in the nine-county Bay Area.

Senate Leader Dean Florez (D) Shafter, visited the Bay Area Council this week to give us the inside scoop on the state budget woes and what we should expect to see coming our way in the next month in terms of cuts and taxes.  He was surprisingly upbeat and optimistic given the current fiscal situation in Sacramento and stated unequivocally that a bipartisan budget deal would be sent to the Governor by the end of the month that would not involve any new taxes.

The Senate appears to have put together the framework for a $21 billion program of cuts to state programs and services that would close the deficit, with just some minor details yet to be worked out.  The only potential roadblock to a resolution appears to lie with the Governor who would like to see an additional $4.5 billion in cuts to establish a rainy day fund to offset future deficits and avoid unnecessary harmful cuts.  Senator Florez and his caucus is making the argument that, while they agree in principle to the rainy day fund, the rainy day is actually here today, and that any additional cuts would cause irreparable harm to too many Californians. 

Having made almost $15 billion in cuts already this year and witnessing the voters reject any new revenue streams, our legislators are faced with the very painful task of making deeper and more impactful cuts to vital programs and services, particularly to our already underfunded education system.  Senator Florez was hopeful that the education cuts would not reach into the classroom that that the savings could be made by eliminating many of the burdensome state mandates that generate tons of paperwork and eat up thousands of man hours per year.

On a somewhat brighter note, the Senator left us with the good news that he fully expects a water bond to pass this year with bipartisan support.  The bond would include provisions for two surface storage projects as well as conveyance and conservation.  If there is a silver lining to our current fiscal crisis it appears that it just might be forcing the warring parties in Sacramento to sit down and work together to accomplish something important for the greater good.

Thanks to Chevron for hosting this enlightening policy discussion and to Caroline Rodman for making it happen.

With a June 30 contract deadline approaching, now is the time for BART and its labor unions to avoid the battles of the past and negotiate a solution that will reduce a substantial deficit without hurting riders already contending with a tough economy. Riders are doing their part. On July 1, they will begin paying more when a previously scheduled fare increase is moved up six months. If riders have to act more quickly than planned, the unions and management should respond in kind and hammer out a contract agreement with a deadline of the same date. In years past, BART contract battles have extended for months, inconveniencing customers and creating acrimony that in some cases led to a strike. It doesn't have to be that way, and in these economic times, it can't happen this year.

What's at stake is nothing less than the Bay Area's public transit core. More than 360,000 people use BART every day - connecting to their destinations or other public transit systems - and riders travel more than 1.3 billion miles on the system annually.

Unfortunately, BART is now facing the same economic pressures and conditions that have forced fare increases and cuts in service at other transit agencies. The rail system must contend with an estimated $250 million deficit over the next four years. A decrease in state funding and high labor costs, which make up more than 73 percent of BART's operational budget are key factors in this fiscal crisis. Balancing BART's budget will come only after true sacrifice and some painful choices. The central question in this financial emergency is will BART make the changes needed to keep it a mass transit success for the years to come without penalizing its riders?

While the economic situation further deteriorates, BART management and labor unions representing some 2,800 BART workers are engaged in ongoing negotiations. One of BART's unions has proposed extending the current contract, along with benefits and other provisions, for one year. While that might sound plausible, in reality a one-year rollover does nothing to reduce BART's deficit. BART unions need to get serious about negotiations when they have the opportunity to choose how they can help bridge the system's deficit.

BART management is committing to millions of dollars in savings and reductions that can be implemented now. These proposed reductions are part of the effort to avoid fare increases and cuts in service that would only erode the goodwill and customer loyalty the system has earned over the years. When it comes to mass transit, making it harder and more expensive for your riders to use your system isn't exactly a winning formula for success.

Recent media reports have outlined wasteful contract provisions for union workers that haven't changed in decades and aren't needed or useful in today's tightrope economy. To survive, BART - like many organizations - will have to adapt to the times and run leaner and more productively.

The unions representing BART employees need to come to the negotiating table with the understanding that the average BART rider cannot afford drastic fare hikes and will not suffer through another BART strike. The good times as we all knew them are over for now. Preserving what matters most is essential. Now, more than ever, we need BART - an affordable, environmentally sensitive and efficient transit option - to keep running for the common good. BART management and the unions need to find a solution in the coming weeks and mark a new, constructive chapter in labor relations. Let's get this done by July 1.

This Editorial was printed in the San Francisco Chronicle on Monday, June 8, 2009

This week the Bay Area Council released a new report that highlights the impressive returns resulting from investments in quality early education. 

Perhaps more than any other region in the United States, or even the world, the Bay Area is a knowledge based economy. We do not have giant smoke stacks, miles of assembly lines, or thousands of acres of crops or timber driving our economic engine. Instead we have research laboratories, venture funded start ups, innovative high technology companies and pioneering biotech and cleantech industries. The raw materials for this unique economy are not mined or harvested, they are nurtured; they are our children.

If the Bay Area is to maintain its competitive advantage in the 21st century and stay ahead of other rival metropolitan regions who would seek to succeed us as the world’s innovation leader; regions such as Shanghai, London, Bangalore or Dublin, we need to ensure that the young people entering our workforce have the best possible education and possess all the necessary skills to succeed.

We are currently failing our young people and failing the Bay Area. Our education system is not producing the caliber of graduates necessary to meet the demands of our economy. 20% of Bay Area employees lack even a high school diploma and we cannot continue along this path and expect to remain competitive.

According to Nobel Laureate in Economics, James Heckman, “The best way to improve the American workforce of the 21st century is to invest in early education, to ensure that even the most disadvantaged children have the opportunity to succeed alongside their more advantaged peers.” Early education means the years zero to five. 90% of a child’s brain growth occurs before the 3rd birthday and if that child is not sufficiently stimulated during those early years he/she will enter kindergarten unprepared and will likely never bridge the achievement gap and catch up.

The jury is now in. Investments in high quality educational experiences in the years zero to five significantly improve not only school achievement but also a range of social and economic outcomes throughout life. Skeptics will no doubt ask if we can afford such an investment particularly in these economic times, but the data is very clear; investments in high quality early care and education generate a higher rate of return than almost any other public investment.

There are also immediate or more short term economic benefits to investing in these programs. The availability of quality early care and education programs increases the productivity of today’s workforce, by reducing absenteeism, tardiness and stress related issues.

This is a business issue, one of particular importance to this region, and the Bay Area Council recognizes that fact.

The Bay Area Council’s Bay Area Ross Program in Real Estate partners with SFHDC to kick-off Affordable Housing Week

Did you know that foreclosures increased by 723% in San Francisco between 2006 and 2008?  Meanwhile, access to credit has severely decreased, with fewer available loans and much stricter lending practices than in past years.  How does one afford to live in the Bay Area? Current stimulus opportunities and programs may provide a fresh mechanism for solving these economic setbacks. 

In response to these trends, the San Francisco Housing Development Corporation (SFHDC) has organized the first ever Affordable Housing Week.  This three-day event will work to resolve economic issues in the communities most affected by the recession. 

SFHDC Affordable Housing Week includes a series of community workshops and other activities that focus on topics including, “Live a Greener Life,” “How to take advantage of a buyers’ market,” “Tips on how to increase your FICO score, increase your savings, and negotiate with creditors,” and “Steps to take to avoid foreclosure.”   In conjunction with these workshops, SFHDC will also host an array of activities such as an “Affordable Housing EXPO,” featuring affordable homes, financial assistance opportunities, savings and asset building programs, and much more.

The Bay Area Council’s Bay Area Ross Program in Real Estate is pleased to partner with SFHDC to host a kick-off event on Friday, May 15.  Participants will gather at Flora Grubb Gardens in San Francisco to hear speakers from community organizations, foundations, financial institutions and city offices share their insight on civil rights, green business and how to utilize the federal stimulus package to solve issues in urban infill.  A Bay Area Ross Program information booth will also be on site Saturday, May 16 at the Affordable Housing EXPO. For more information about the program please visit the SFHDC website at:  http://www.sfhdc.org/index.php/workshop/index.  We hope to see you there!

The Bay Area Council Delegation got a true taste of Washington D.C. last week – from high powered meetings on Capitol Hill to being caught in a colossal traffic jam thanks to the dueling motorcades of three heads of state.  The Delegation heard inside the beltway commentary from Washington Post columnist and Pulitzer Prize-winner David Broder and CNN pundit Donna Brazile.  They went to Capitol Hill for a meeting with Speaker Pelosi and members of the Bay Area delegation, plus a meeting with Senator Boxer.  They squeezed in meetings at the Department of Transportation, the Department of Energy and the State Department.  They met with President Obama Cabinet member Ron Kirk, who, as the U.S. Trade Representative, is responsible for all current and future free trade deals.  They had dinner with Senator Dianne Feinstein.  They went to the White House Executive Office Building and met with:  Larry Summers, Director of the White House's National Economic Council; Christina Romer, Chair of the Council of Economic Advisors; Carol Browner, President Obama’s global warming czar; Van Jones, President Obama’s Special Advisor for Green Jobs, Enterprise and Innovation; Vivek Kundra, Federal Chief Information Officer; and Matt Rogers who is in charge of the stimulus funds for the Department of Energy.  And they attended a Washington Nationals ball game – all of this in under 48 hours!

We look forward to returning to DC over the coming months to continue to push our federal agenda.

Last Week, the Education Reform team at the Bay Area Council was notified by the William and Flora Hewlett Foundation that they had been awarded a $900,000 three-year grant to lead a statewide education reform movement. The grant will allow the Bay Area Council to build capacity and support efforts toward statewide education reform in partnership with relevant stakeholders.

With California in crisis, we believe there is an opportunity for reform that hasn’t been seen in generations. With this grant from the Hewlett Foundation, we will continue to help drive the education reform consensus forward—particularly through our work engaging business leaders, both among our membership and in companies throughout other regions across the state. As the voice of business, the Council recognizes that it is critical for California to meet the challenges of education reform through sound and timely information, a strategic alignment of voices among business, K-12 educators, policy makers and higher education, and the ability to work together across communities, jurisdictions and industries.

The needs of our children and sustenance of our state’s economic future require that business takes a stand to help ameliorate the dramatic challenges inherent in our current public education system. The Council’s history of leading on public policy, its statewide approach, and partnerships with a variety of stakeholders make it a strong driver of successful public policy in education, and we will leverage our strengths to ensure the success of our endeavors for education reform.

With this grant, the Council will be able to focus on initiating action toward goals supported by Getting Down to Facts, a major body of research overseen by Stanford University that delves into the finance and governance of public education in California. The objective of our efforts will be to determine how best to create reform opportunities that are not only true to the underlying research and recommendations, but also that allow for input and ownership by all major stakeholders, in turn building trust and momentum statewide.

Recognizing that changes in education cannot be successful in a state whose government is broken, the grant also includes funds to utilize the forum of the Council-led California Constitutional Convention to help build the path for education reform.   The idea is to start with reforming the structure of government, then quickly draft on the momentum to secure bold and systematic change in education. Our method of harnessing a “people’s movement” and building an unlikely coalition for the Constitutional Convention could also crack open the door for a new alliance on education reform. Together, the two synergistic education and government reform movements can help California get back on its feet again.

For more information on the work the Council is doing in education and to become engaged in our effort, please contact Linda Galliher, Vice President of Education and Healthcare. For an opportunity to contribute as a supporting partner, please contact Chandra Alexandre, Director of Development and click here to see the Bay Area Council Foundation’s initiatives.

The California Business Housing and Transportation Agency, through Secretary Dale Bonner, has asked the Bay Area Council Economic Institute to prepare a Bay Area Economic Recovery Work Plan. The purpose of the plan is to guide the allocation of federal stimulus funds (and other funds and programs available to the state) to support economic development in California. We have been asked to do this in partnership with the region’s leading business and economic development organizations—with the goal of presenting the Bay Area’s top line priorities. Those priorities will be strategically focused and aligned with both near-term needs and long-term goals. We have been given a fast time frame in which to do this: an initial product is due by April 1 and a final product by June 1.

Click here for the latest information on the Economic Recovery Workplan.

Click here for our press release: At State Request, Bay Area Council Economic Institute Coordinating Quick, Massive Regional Response to $30-50 Billion In Stimulus Opportunities

Donate now to help create a better Bay Area through support of our Economic Recovery Work Plan efforts.

Amidst a worldwide recession, efficient use of resources becomes even more critical to the bottom line of business.  For the Bay Area in particular, such an environment provides opportunities for companies both looking to reduce their energy demand and technology firms that can supply the tools necessary to achieve resource savings.

As a follow up to the US|China Green Tech Summit in Shanghai last November and ongoing activities in the technology and environment space, the Bay Area Council is excited to convene another high-level conference at the intersection of green business and policy.  Working in partnership with the Asia Society of Northern California, the Council will be hosting “Scaling Up: From Green Buildings to Green Cities in the US and China” on Friday, May 1, 2009, at the PG&E Auditorium in San Francisco. 

Buildings consume well over 30 percent of all primary energy in the world—more than either transportation or industry. By building green, we can increase overall operating efficiency in our buildings and reduce energy consumption in the built environment by 30-50 percent.  Chinese Premier Wen Jiabao said in a recent work report at the ongoing annual National People’s Congress that China's energy consumption per 1,000 yuan (147 USD) of GDP has dropped by 10.8 percent in the past three years—still leaving the country far short of its 20 percent reduction goal for 2010.  The Bay Area is uniquely positioned to help China achieve these goals through knowledge and tech transfer, and the Bay Area Council is working to enable such a flow.
 
This one-day conference looks at the challenges and opportunities of reducing the carbon footprint of our cities while increasing global prosperity. Today, the greatest challenge for green design is to scale up -- to move beyond pilot projects and piecemeal solutions to building and retrofitting on a massive scale in order to have a meaningful impact on global warming. Green materials must be mass produced, construction techniques must be standardized, and the principles of green design must inform urban planning, not simply the design of individual buildings. These are the critical issues this conference will address.

Invited speakers include (partial list): Vincent Lo, Chairman & CEO, Shui On Group; Jiang Yi, Professor of Building Science, Tsinghua University; Peter Darbee, Chairman, CEO, and President, PG&E; Jeff Heller, President, Heller-Manus; Simon Tay, Chairman, Singapore Institute of International Affairs; Dian Grueneich, Commissioner, California Public Utilities Commission; Mark Levine, Group Leader, China Energy Group, Lawrence Berkeley National Laboratory; John Kriken, Consulting Partner, Skidmore, Owings and Merrill LLP; Stanley Yip, Director of Planning & Development, Arup China; Sabeer Bhatia, Founder, Hotmail; planner and developer, Nanocity (India).

Click here to regsiter.

 President Obama has said that his administration will have one simple test for whether he continues to spend money on any government program.  That test is “Does it work?”  California currently spends $50 Billion a year on public education without good data on what works.  In these hard budget times especially, we must spend our precious public dollars efficiently.  We need a 21st Century data system to supply the information needed for teachers, administrators, and parents to know which practices are best practices.  At no cost to taxpayers, McKinsey & Company, an elite global consulting group, has designed such a data system for California.  See the design here. The Bay Area Council and many other individuals and groups have written to encourage the Governor to support the development of this critical tool for education excellence.  See the Governor’s reply letter supporting the data system here.  To keep the issue active on the public and legislative agenda, Chief Magnus and I recently co-wrote an opinion piece for the Contra Costa Times.

There is a growing body of research and evidence that is pointing towards the very clear conclusion that investing in early childhood education and development produces returns not seen in any other arena of government spending.   Studies by the Federal Reserve Bank of Minnesota, Nobel Laureate Economist James Heckman, and a soon to be released economic impact report commissioned by the Bay Area Council, all indicate clearly that quality early childhood programs result in higher educational attainment later in life, lower rates of social problems such as drug dependency or teen pregnancy, lower dependency on welfare and lower rates of criminal behavior. Some research indicates that the return on investment in such quality programs can be as high as 17:1.

So what does a quality early childhood education program look like and where can one be found?  Bay Area Council Director of Government Relations, Matt Regan, travelled to New Jersey this week with a delegation of California lawmakers, business leaders and child advocates on a fact finding mission to observe what is arguably the premier early childhood education system in the nation.  The purpose of the trip was to collect examples of best practices, learn how the State of New Jersey has funded and rolled out this impressive program in such a short period of time, and see what, if anything, could be brought back to California.

The Abbott Preschool Program was developed in response to a 1998 mandate from New Jersey’s Supreme Court, requiring the provision of preschool for all 3 and 4 year olds in the state’s highest poverty districts.  This decision was part of a larger court mandate to provide all the state’s children with a “thorough and efficient education” as required by the New Jersey State Constitution.

New Jersey now requires that all Abbott preschool teachers have a Bachelors Degree and an early learning certificate. Each Abbott classroom has no more than 15 children with a teacher and an aide. Each 20 classes have support from a Master Teacher as well as a team of social workers and professionals in special needs areas.  Abbot schools are designed to strict guidelines with a minimum of 950 sq ft per classroom with two bathrooms, as well as five defined and researched curriculums that schools can choose from.

Abbott preschools have proved incredibly popular with parents are over subscribed. New Jersey  Governor John Corzine, recognizing the success of the program and the long term benefits to his state is seeking court permission to expand Abbott preschools to all of New Jersey’s school districts, not just the most impoverished.
As in everything we look at in these cash strapped economic times, the question must be asked, how much does this Cadillac program cost, and can California afford to emulate it?

California currently spends $3,486 per year per child in our State preschool program, New Jersey spends $11,831 per child enrolled in the Abbott program and a partial local government match is required.  These figures represent a distinct difference of priorities and vision between our two states and time will only tell if New Jersey’s investment pays off but the early signs are good.  According to the first longitudinal effects study of the program carried out by the National Institute for Early Education Research the achievement gap that had previously hampered children from underprivileged communities was closing fast and that Abbott children were out performing their peers in language skills, reading and math.  Continuing studies of Abbott children are ongoing as they progress through the K-12 system, and if The Federal Reserve of Minnesota, James Heckman et al are correct, New Jersey can begin to reap the benefits of Abbott very shortly if they are not doing so already.

So the question we should be asking here in California is not whether we can afford a similar investment in our children, rather can we afford not to?

At the State of Green Business 2009 meeting the GreenBiz Index was released to provide indicators in different fields as to whether we are Swimming (moving forward), Treading (moving in place) or Sinking (declining).

Brights spots show progress on Clean Technology investmests, Clean-Energy patents, Green jobs where there was measured growth despite the economic downturn, climbing recycle rates for paper as well as improved water efficiency as the population grows. However, as the short YouTube piece describes e-waste is still getting buried under growing mountains of waste. This is all happening despite E-PEAT, an electronic waste system being implemented in 2004 through ISEEE standards. Valuable minerals embedded in computers are simply be placed back in dumps that are practically un-mineable.

Meanwhile indicators from both fleets and green office space show that those realms are just treading water without outward improvements.

January 19, 2009 - MLK Day -Washington DC

Remember that movie "Willie Wonka and the Chocolate Factory?" Just like young Charlie, thanks to Senator Feinstein, last Wednesday my wife Susi and I learned that we had been awarded 2 Golden Tickets to the inauguration of Barack Obama.  As we loaded the car Sunday morning, my neighbor Carl was in front of his house bouncing his young daughter on top of the leaves in his Green Waste can.  Carl was the first neighbor on our block to put up his Obama for President sign, way back before Iowa.  "Where you headed?" he asked.  I told him we were going to the inauguration.  His eyes lit up and he smiled.  "Please say hello to President Obama for me," he said.

By Sunday night, we were in Chicago, waiting for a connecting flight to DC.  I picked up a coffee.  The young woman behind the counter looked worn out (it was near midnight).  She asked where I was headed.  When I told her, she beamed.  "I was there when he gave his acceptance speech in Chicago - it was the most amazing night of my life - I will never forget it," she proudly told me.  I had watched those momentous remarks over the internet with my family, my wife and I had tears running down our faces and our three children were mesmerized by the moment. 

We managed to find a hotel room by DuPont Circle.  We walked to the Metro this morning, rode the train to Union Station and headed to the Capitol Mall to pick up our Golden Tickets from Senator Feinstein's office, Room 331 in the Hart Senate Building.  The streets are packed with people wearing Obama Gear of various sorts all taking in the scene and sharing the experience with one and other.  As we walked along, we noticed that many families were there with several generations of family members, from grandparents with walkers and canes to grandchildren in strollers and backpacks.  And people are noticeably happy and hopeful, waiting for tomorrow's great day. 

The lines to get tickets are around the block in all directions, but nobody minds because we know what we are waiting for.  We are all strangers and yet we have so much in common that conversation is easy; our hearts are full and our eyes are gleaming with anticipation and hope.  When I open the envelope and look at the tickets, tears again come to my eyes - I can't help it.  I am so proud of our country - it feels like all things are possible.

Although most of the people here are focused on moving forward, in DuPont Circle we find a collection of groups more focused on Bush Bashing.  There is a 30 foot inflatable effigy of W bearing the sign "Give Bush the Boot" surrounded by piles of shoes.  The barker is organizing passing citizens to hurl "boots" at the blow up doll.  It gave me a smile but I decided not to throw a shoe - time to move on.  Around the corner, there is a giant canvas sheet propped in the air bearing the first words of the US Constitution - people are signing it with sharpies - it begins, of course, with "We the People", which is just how it feels here in Washington today.

Tomorrow morning, while holding his hand on the same bible on which President Lincoln placed his hand in 1861, Barack Obama will speak the same words as the 43 Presidents before him as he takes the oath of office to serve as the President of the United States of America.  Of course, today is a special day too because on it we recognize the birth of the Reverend Martin Luther King, Jr.  So today we remember his Dream and tomorrow, in the same place, we the people swear in as our 44th President the embodiment of that Dream. 

COUP FOR NATION, FOR REGION, FOR BASIC AND FOR THE BAY AREA COUNCIL

The scientific community has expressed impressive and enthusiastic support for the appointment of a highly-qualified and dedicated scientist from the Bay Area to lead the country’s response to the energy and climate change challenges.  President-Elect Obama selected Steve Chu, Nobel prize winning physicist, Director of the region’s Lawrence Berkeley National Laboratory, and Board Director of the Bay Area Science and Innovation Consortium (BASIC) for the key position of U.S. Secretary of Energy. 

President-Elect Obama has targeted alternative energy and climate change as priority areas for his administration – areas in which Dr. Chu is recognized as a global leader.

Under Dr. Chu’s guidance, the Berkeley Lab and the Bay Area became notable as the center of research into biofuels and solar energy.  Dr. Chu was a major contributor to the 2007 BASIC science futures report, “Innovative Energy Solutions from the San Francisco Bay Area:  Fueling a Clean Energy Future.”  In his letter within the report, Dr. Chu stated, “…among America’s most serious concerns are national security (intimately tied to our energy security), long-term economic competitiveness and the dangers of global warming.  I believe that energy is at the center of all these concerns, and thus is the single most important problem that science and technology must solve in the coming decades…”

BASIC, an action-oriented collaboration of the region’s major research universities, national research laboratories, independent research institutions and research and development-driven businesses, is dedicated to advancing the Bay Area’s science, technology and innovation leadership.

BASIC is a program of the Bay Area Council Economic Institute within the Bay Area Council’s Foundation.