The timing was ideal. As President Trump met with North Korean leader Kim Jong Un in Singapore, guests at the Bay Area Council’s 2018 Pacific Summit on Tuesday were sitting down to hear from former Secretary of State Condoleezza Rice on what it all meant. In a lengthy conversation with Andrew Westergren, Senior Vice President and Global Head of Strategy and Corporate Development for Visa, in front of almost 200 top executives and other leaders, Rice candidly acknowledged the unconventional way in which the summit came together but also said it was worth a try given the failure of past efforts. Rice also gave her insights and analysis about the tumultuous G7 meeting in Canada, talked about U.S.-China relations as a trade war looms and provided insights into the motives and agenda of Russia President Vladimir Putin.
With national attention intensely focused on the issues of sexual harassment and discrimination, the timing was also perfect for a lively conservation with two leaders of the #MeToo movement. Janet Liang, President of Kaiser Permanente Northern California, moderated the discussion with Adama Iwu, Vice President of State Government and Community Relations for Visa, and Tina Tchen, former Chief of Staff to First Lady Michelle Obama and Partner at Buckley Sandler. Iwu was honored as a Time magazine Person of the Year for her work in founding We Said Enough, a group focused on exposing and changing a culture of sexual harassment and discrimination in the California legislature. Tchen is a leader of Time’s Up, which works to support women who have suffered sexual harassment or discrimination. The three gave their personal insights on the #MeToo movement and the cultural and institutional changes that must occur in order to end sexual harassment and discrimination.
The audience also was treated to sobering and humorous remarks from renowned New York Times columnist David Brooks. Brooks, in his comments and in a Q&A with McKinsey & Co. Senior Director and West Coast Regional Manager Kausik Rajgopal, talked about cultural and political divides in the U.S. and how a sense of community that has united people in the past has been replaced by tribalism, which by its nature divides people.
The conversations continued later in the afternoon in smaller group discussions, with PwC Managing Partner Jeanette Calandra moderating a conversation with Tchen, UPS Northern California District President Rosemary Turner leading a discussion with Dr. Rice and TMG Partners leader Denise Pinkston guiding a talk with Brooks. Bay Area Council CEO Jim Wunderman opened the summit with insights about the Bay Area’s run of economic success and the housing and transportation challenges that threaten to pull the rug out from under it.
The Bay Area Council extends its thanks to Visionary sponsor Kaiser Permanente and the many other sponsors whose support is critical to funding our public policy and advocacy. See a full list of all Pacific Summit sponsors. Our thanks also to the Kohl Mansion for hosting us.
SAN FRANCISCO, CA – The Bay Area Council Economic Institute and Central Valley Community Foundation today announced the launch of an in-depth study to examine Fresno’s important role in the fast-emerging Northern California megaregion and how the arrival of high speed rail over the next decade will dramatically accelerate economic connections between Silicon Valley and the broader Bay Area and the state’s fifth largest city.
High speed rail is expected to shrink the time it takes to travel between the Bay Area and the Central Valley from more than three hours to less than one hour when it is scheduled to begin service in 2025 between Fresno and San Jose. That has huge implications for housing, transportation and workforce development across the megaregion and promises to bring exciting new economic opportunities to Fresno and other parts of the Central Valley. “Fresno and the broader Central Valley are key players in developing a broader megaregion strategy,” said Micah Weinberg, President of the Bay Area Council Economic Institute. “As county and other regional boundaries blur with the emergence of the megaregion, it’s imperative that we get a handle on what that future looks like and the infrastructure we’ll need to put in place to support it. We can act now to address these issues or confront chaos later. The Central Valley Community Foundation is an important and indispensable partner in making that happen.”
The study will focus in particular on strategies Fresno and other Central Valley cities can pursue to leverage high speed rail and other economic and demographic changes within the megaregion to boost their own economic prospects. While the 10 percent economic growth that Fresno has enjoyed since 2011 matches the national average, it has lagged cities like San Francisco and Los Angeles where the rate has reached 26 percent and 16 percent, respectively. Expanding the Central Valley’s participation in the megaregion economy, attracting new business and elevating its workforce to meet the needs of employers will also be a focus of the study.
“Improved economic and infrastructure connections between the Silicon Valley/Bay Area and the Central Valley is good, not just for our regions, but for the entire state,” said Ashley Swearengin, President and CEO of the Central Valley Community Foundation. “We are pleased to launch this work with the Bay Area Council and to explore meaningful ways to create new economic opportunities for Central Valley residents, businesses and communities and relieve pressure on the congested Bay Area.”
Swearingen kicked off the project on Friday, April 24 at a meeting in Fresno to identify the issues that would be addressed. The study is part of a much broader, long-term effort the Bay Area Council is leading to bring together top business, government and other civic leaders from the Bay Area, Central Valley, Sacramento and Monterey regions to develop a unified, integrated vision for guiding future planning for the megaregion around such issues as housing, transportation and workforce development.
Driving the Council’s intense focus on the megaregion is the Bay Area’s meteoric economic growth over the past decade combined with an historic housing shortage and affordability crisis. In search of more affordable housing, record numbers of Bay Area workers are being forced into longer and longer commutes from the Central Valley and Sacramento that are putting increasing pressure on an already overburdened and congested transportation system. At the same time, the Central Valley is eager to accelerate economic development opportunities that the megaregion offers and prepare its workforce.
The study with the Central Valley Community Foundation and support from Wells Fargo, UC Merced, Fresno State University, City of Fresno, and Lance Kashian & Co., is one of several activities the Council is leading to bring greater attention to megaregion planning. The Council is also working closely with Sacramento Mayor Darrell Steinberg and the Greater Sacramento Economic Council on megaregion issues, including investing in better rail connections along the I-80 corridor and promoting the capitol city as a destination for businesses looking to start and expand outside the Bay Area.
The Council will be convening a series of meetings in 2018 to begin a dialogue with government, business, nonprofit and academic leaders on the future of the megaregion.
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About the Bay Area Council Economic Institute
The Bay Area Council Economic Institute is a public-private partnership of business, labor, government and higher education that works to foster a competitive economy in California and the San Francisco Bay Area, including San Francisco, Oakland and Silicon Valley. The Economic Institute produces authoritative analyses on economic policy issues affecting the region and the state, including infrastructure, globalization, energy, science and governance, and mobilizes California and Bay Area leaders around targeted policy initiatives. Learn more at www.bayareaeconomy.org.
About the Central Valley Community Foundation
Central Valley Community Foundation has been a trusted partner in philanthropy in the Central Valley for more than 50 years. Our mission is to cultivate smart philanthropy, lead, and invest in solutions that build stronger communities. Learn more at www.centralvalleycf.org.
About the Bay Area Council
The Bay Area Council is a business-sponsored, public-policy advocacy organization for the nine-county Bay Area. The Council proactively advocates for a strong economy, a vital business environment, and a better quality of life for everyone who lives here. Founded in 1945, the Bay Area Council is widely respected by elected officials, policy makers and other civic leaders as the voice of Bay Area business. Today, more than 300 of the largest employers in the region support the Bay Area Council and offer their CEO or top executive as a member. Our members employ more than 4.43 million workers and have revenues of $1.94 trillion, worldwide. Learn more at www.bayareacouncil.org.
Workplace cultures that promote and even reward crazy long hours are doing more than causing baggy, blood-shot eyes and caffeine addictions. They’re also seriously undermining efforts to improve gender equity. That is among the findings of a new report the Bay Area Council Economic Institute released today (April 24) examining how long hours, inflexible scheduling, lack of access to quality early childhood education and childcare and other seemingly innocuous workplace practices can create an environment where women have less opportunity to advance and succeed. The report comes as the #MeToo and TIME’s Up movements are sparking a powerful national debate on gender equity and how both new and old workplace practices may be enabling a culture of inequity.
The report, in particular, explores how workplace policies and practices are often adopted piecemeal and in isolation from each other and how this fragmentation misses the crucial insight that gender equity, family-friendly policies, and early childhood care and education are intertwined. Employers who care about gender equity in the workplace, according to the report, need to understand the importance of high-quality childcare and early childhood education programs in the communities in which their businesses are based. Policymakers who care about providing universal early childhood care and education because of their impacts on child development and learning must also care about paid parental leave and other family-friendly workplace policies.
“We can’t begin to tackle unconscious bias, help women climb the corporate ladder, or close the pay gap until we develop policies and benefits that enable working women—and men—to reconcile the pervasive work-family conundrum” says Dr. Micah Weinberg, President of the Bay Area Council Economic Institute. “Long gone are the 1960s where only 20 percent of mothers worked outside the home and the American family included a male breadwinner and a stay-at-home mother. This anachronistic model no longer fits today’s economy and modern workforce where 70.5 percent of U.S. mothers with children under the age of 18 are participating in the labor force.”
The report is the focus of a conference on Tuesday, April 24 hosted by Children’s Hospital Research Institute in Oakland that will bring together leaders from the business, public policy, early education and healthcare communities to discuss strategies to help employers better connect various workplace policies and practices around gender equity, early education and childcare. A separate report by the Rand Corporation will also be presented that looks at how investing early education can pay huge economic dividends.
The cost of not adopting a well-integrated set of gender equity, family-friendly and early education workplace practices and policies is considerable, for employers, for women, for men and families, according to the report. An alarming gender gap in median annual earnings of 19.5 percent continues, with inequalities becoming even more acute for mothers in the workforce. New mothers in their prime career-building years between the ages of 25 and 35 will experience the most significant earnings shock. The analysis shows that mothers are still assuming twice as much unpaid caregiving and household work than their male counterparts, causing stalled careers and lack of opportunity to advance in leadership positions.
The report offers a robust set of recommendations for addressing not only the lack of specific workplace policies and practices around gender equity and families and their connections to each other.
Modernizing employer work models that integrate family-friendly policies is critical to advancing gender equity in the workplace. Generous paid parental leave, more flexible work time, telecommuting, and providing access to affordable early childhood care and education are critical to working families and supporting mothers in the labor force. Important early childhood care and education strategies for employers outlined in the report include on-site childcare, subsidizing employee childcare expenses, providing referral resources, partnerships with neighboring businesses and more.
What Stakeholders Are Saying:
“Currently, the burden of paying for quality early childhood care and education falls squarely on the shoulders of parents and particularly women who are sometimes forced to leave the workforce because they can’t afford quality care. Increased public and private sector investments in this area will not only help businesses retain qualified talent, they’ll be helping to foster tomorrow’s workforce, since quality interactions between teachers and young children are linked to increased acquisition of social and cognitive skills.”
—Patricia Lozano, Executive Director, Early Edge California
“When we think about now people are perceived for taking advantage of the policies that we have, it really is a question of how normal is it. Do you become the outlier when you decide to take the full eight weeks parental leave as a male employee who didn’t give birth to the child? Or are you seen as somebody who’s leading the charge to role model the types of behaviors that leadership said they wanted to have at the firm? And I think that starts with leadership not just endorsing the policies, but taking advantage of it themselves, but also recognizing that when employees do that, it actually is a commitment to the type of employee that the firm wants. It’s not an outlier that shows lack of commitment.”
—Keith Bevans, Partner, Chicago Global Head of Consultant Recruiting, Bain & Company
“We actually give moms and dads both 12 weeks of paid parental leave. We do believe that the father has a huge role to play in the child’s life, and we don’t want them to feel different than the mom. So we give them both that baby bonding time, and we’re seeing more and more dads take advantage of it. We also want moms to ease back into the workforce, and so we give them an additional 4 weeks of part-time so that they can get used to the new childcare arrangement that they have and feel comfortable leaving their baby.”
—Nina McQueen, Vice President – Employee Experience & Global Benefits, LinkedIn
“We believe that it’s an employer’s responsibility in these times to put forward family-friendly policies that provide flexibility, that encourage men as well as women to become caregivers, and to allow people to work remotely at times if that works for the organization. So that with those kinds of policies in place, we’ll truly see women be able to do all the things that men have historically been able to do when it comes to making commitments to their companies and organizations.”
A rising economy, a massive housing shortage and growing traffic in the Bay Area are causing major changes across the Northern California megaregion that represent both opportunities and challenges. The Bay Area Council is spearheading an effort to bring together business, government, academic and civic leaders from across the megaregion on planning to embrace the former and minimize the latter. The Council last week traveled to Stockton where CEO Jim Wunderman presided over a meeting that included mayors from Stockton, Merced, Modesto and Livermore, leaders from key rail and regional planning organizations, and business and academic leaders.
In addition to hearing about the foundational research on the Northern California megaregion put together by the Bay Area Council Economic Institute and University of the Pacific, participants focused on the potential for future rail investments–in the ACE train and high speed rail–to spur economic development. The meeting, hosted by University of the Pacific in partnership with Valley Vision, was the first of a series of meetings the Council is convening across the megaregion in the coming months that will seek to produce a common policy advocacy agenda for megaregional stakeholders. To engage in the Bay Area Council’s work on the Northern California Megaregion, please contact Senior Vice President Michael Cunningham.
New Report: California’s Healthcare Sector Key to Meeting State Climate Action Goals
Sector Uniquely Positioned to Take Lead On and Accountability For Sustainable, Low-Carbon Transformation
SAN FRANCISCO, CA – Despite the recent 10th anniversary of California’s landmark climate change legislation SB 375 targeting global warming pollution, the state is currently falling short of its ambitious targets set to reduce greenhouse gas (GHG) emissions for 2030 and 2050. Meanwhile, the devastating public health and economic consequences of climate change are ever-present in the wake of California’s deadliest wildfires, increased respiratory diseases and extended droughts. A new report unveiled today by the Bay Area Council Economic Institute, California Clean Energy Fund and Health Care Without Harm – Building a Climate-Smart Healthcare System for California – assesses how the healthcare sector is uniquely positioned to play a critical role in helping the state meet its GHG reduction goals.
California’s healthcare sector accounted for 13 percent of the state economy as total spending reached $292 billion dollars in 2016. However, this booming sector is also one of the most energy intensive, responsible for an estimated 10 percent of all GHG emissions nationwide. Hospitals represent the lion’s share of those emissions at 36 percent requiring significant energy to support operations, and unique heating, ventilation and air conditioning needs. Other key contributors to increased levels of GHG emissions generated by healthcare include employee and patient travel, facilities built, products and equipment, food procured and served, and waste generated. The analysis estimates that California’s carbon-intense health sector could be responsible for between $1.6 and $9.5 billion in long-term damages each year.
“Transitioning away from fossil fuels and toxic chemicals is the most important public health intervention we can make to support healthy people and healthy communities,” says Gary Cohen, President of Health Care Without Harm.
With its mission to protect and improve health, combined with the huge economic costs of inaction, California’s healthcare industry is taking important steps to advance climate-smart strategies. Diving into case studies across the state, the report explores the cutting-edge innovations, strategies and investments being led by some of the top industry leaders like Kaiser Permanente, UC San Francisco, Dignity Health, Palomar and UC San Diego.
“Meeting state goals of bringing GHG emissions to 1990 levels will require the entire healthcare industry to act and transform,” says Dr. Micah Weinberg, President of the Bay Area Council Economic Institute. “Just as California is a leader for the nation in taking action on climate change, healthcare can serve as a role model for all private and public sectors as it transitions to a sustainable, low-carbon future.”
“We know that when a sector seizes such an opportunity in its entirety, great transformation can happen that will improve the bottom line, build jobs and provide solutions to climate change,” says Danny Kennedy, Managing Director of the California Clean Energy Fund. “We want to start a race of entrepreneurs and intrapreneurs driving the innovations and new business models to do this in healthcare.”
The report outlines key sector recommendations necessary to achieve long-term sustainability and resiliency. Energy audits of facilities, investing in on-site and off-site renewable energy, waste reduction, conserving water and purchasing local, sustainably-grown food are among the key industry recommendations. Advancing smart policy on local, state and national levels will also be crucial, including streamlining the approval process of energy-saving technologies, creating an enforcement arm for the Solar Rights Act, continued state funding for renewables and energy storage, expanding Zero Waste Principles, and creating a sustainable water supply, among others.
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About the Bay Area Council Economic Institute
The Bay Area Council Economic Institute is a public-private partnership of business, labor, government and higher education that works to foster a competitive economy in California and the San Francisco Bay Area, including San Francisco, Oakland and Silicon Valley. The Economic Institute produces authoritative analyses on economic policy issues affecting the region and the state, including infrastructure, globalization, energy, science and governance, and mobilizes California and Bay Area leaders around targeted policy initiatives.
About the California Clean Energy Fund
The California Clean Energy Fund (CalCEF) is optimizing the clean energy transition by connecting money to investments, ideas to support and issues to solutions. Driven by the opportunity to accelerate climate protection, CalCEF is committed to creating 100%+ clean energy to benefit all. CalCEF’s family of initiatives seek to bring about the energy transition already underway, but sooner and better.
About Health Care Without Harm
Health Care Without Harm seeks to transform health care worldwide so that it reduces its environmental footprint, becomes a community anchor for sustainability and a leader in the global movement for environmental health and justice. Health Care Without Harm works to reduce health care’s carbon footprint, foster climate resilient health systems, mobilize the health sector to address climate change as a public health issue, and advocate for solutions that accelerate a transition to clean, renewable energy.
U.S. Senator Dianne Feinstein and Oakland Mayor Libby Schaaf met with the Bay Area Council’s Board of Directors Thursday to discuss a range of pressing issues, from healthcare reform and homelessness to infrastructure investment and public safety. Board Chairman and Kaiser Permanente Chairman and CEO Bernard J. Tyson welcomed both leaders to a packed room at Kaiser’s Oakland headquarters. Feinstein updated the Board on her efforts to ban assault weapons, an issue she has championed for decades. She also discussed the importance of making Deferred Action for Childhood Arrivals (DACA) permanent as well as her interest in leveraging public private partnerships to repair and rebuild the nation’s aging and crumbling infrastructure.
Investing to expand and improve the region’s congested transportation system was also a top issue as Feinstein emphasized the need for a new crossing south of the Bay Bridge. Tyson thanked Feinstein for her great leadership and urged Council members to join a business delegation we’re leading to D.C. in May to promote California’s importance to the nation as some critics frame the Golden State as out of control.
Feinstein also gave warm praise for Mayor Schaaf, who described the progress Oakland is making in turning around years of crime and addressing a complicated homeless problem. Schaaf also highlighted a measure she is championing for the November ballot—the Oakland Children’s Initiative—that would invest in expanding access to early education and other early childhood programs. She touted the huge returns that early childhood investments have in increasing employment opportunities and avoiding expensive social and public safety costs. This is an issue that has long been a priority for the Council, whose executive leadership has expressed early support for Schaaf’s November measure as she works to get it placed on the ballot. The Council extends its gratitude to Kaiser Permanente for hosting our meeting.
There hasn’t been a lot of rain so far this winter, but Gov. Jerry Brown had the wet stuff on his mind this week (Jan. 11) when he released a $190 billion budget proposal that ups the state’s “Rainy Day Fund” by $5 billion to $13.5 billion. The reserve is designed to protect California against future economic downturns, which Brown believes is coming sooner rather than later. Still, the budget represents a record for California and includes a $7 billion increase over the previous spending plan. The Bay Area Council applauded many of the spending priorities, which include $4.6 billion for commute improvement projects from last year’s SB1 (Beall) legislation that the Council supported.
The plan invests $245 million to expand and protect affordable housing under SB2 (Atkins), another bill the Council supported last year. Brown proposed another $277 million for housing in anticipation of the passage of a statewide housing bond measure expected to appear on the November 2018 ballot. The spending plan also continues the Governor’s efforts to pay down the overall state debt and makes a small dent in the state’s massive pension liability shortfall. The Council is continuing to analyze the plan and will be weighing in directly as it now moves to the legislature, which has a June deadline to approve it.
Behind the Bay Area Council’s continuing advocacy, the California legislature this year took its first (albeit modest) actions to address the state’s historic housing crisis. Much, much more needs to be done, and the Council’s Executive Committee and Board of Directors, under the leadership of Chair and Kaiser Permanente CEO Bernard J. Tyson, this week approved a 2018 policy agenda that calls for escalating our work to achieve deeper, stronger and more effective reforms for spurring the tsunami of new housing the state so badly needs. Already, the Council is identifying new legislation for 2018 that can speed the approval and bring down the cost of new housing.
The 2018 agenda also prioritizes ridding the scourge of traffic fom the Bay Area’s roads and highways and getting more commuters out of their vehicles and into ferries, carpools, shuttles and other forms of transit. The Council is gearing up now for a campaign to win passage of Regional Measure 3, a $4.4 billion transportation investment plan that is expected to hit the June 2018 ballot. Rounding out the Council’s top policy priorities for 2018 is building a stronger workforce pipeline to meet the future needs of the region’s employers. The Council’s Workforce of the Future Committee is making immense strides to better align educators and employers to close the region’s yawning middle skills and talent gap, as well as creating new career opportunities for underserved youth.
Along with the top three policy priority areas, the 2018 agenda includes gender equity and workforce diversity, healthcare, advanced communication infrastructure, China and global innovation, carbon reduction and renewables, and water and climate resiliency.
The policy agenda was approved Thursday (Dec. 7) during a meeting hosted by new member Santa Clara University. The Board also welcomed state Sen. Jim Beall Jr. and applauded him for his incredible leadership as the author this year of SB 1, which invests $52 billion in statewide transportation improvements, and SB 595, which authorized the vote on Regional Measure 3. Beall talked about both measures and outlined his plans for new legislation for delivering transportation projects faster and at lower cost. The Council will be working closely with Sen. Beall on that project delivery legislation.
The debate over the nation’s healthcare system continues to rage and Kaiser Permanente Chairman and CEO and Bay Area Council Chair Bernard J. Tyson is emerging as a strong national voice on the topic. Tyson was a key witness in testifying before Congress on the latest repeal effort and brought his views to a national television audience in offering analysis on what steps we need to take to stabilize healthcare markets. Tyson advocated for a bipartisan approach to addressing problems with the ACA that ensures access for all to healthcare and healthcare insurance, provides adequate cost-sharing provisions and allows flexibility for states.