Science and Innovation Archive

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GOV. BROWN ENGAGES WITH BAY AREA COUNCIL LEADERSHIP ON 2013 AGENDA

Clearly energized from his Proposition 30 victory, and preparing next year’s budget and his State of the State speech, Governor Jerry Brown sat down with the Bay Area Council Board of Directors Thursday for an informal, candid and productive discussion on a wide range of issues that was scheduled to last an hour but stretched for more than 90 minutes before he joked he better let his CEO audience return to work. In his inimitable style, the Governor humorously reflected on the “temptations” that the Legislature may now feel with its supermajority, shared some of the interesting political jockeying that produced Proposition 30 (giving partial credit to some unlikely and perhaps unwitting sources), and expressed views on both Democrats and Republicans in Sacramento that reinforced his well-known independent streak.  He went through much of what appeared to be his 2013 agenda.  He was very interested in the Bay Area Council’s approach to reforming CEQA.

The Governor engaged with the Board in a frank discussion about the state’s massive infrastructure needs, including water, telecommunications, energy and transportation and he noted the challenges of balancing new spending against the state’s considerable debt burden.  We discussed his thoughts about taxation and Prop 13.  He expressed concern about climate change and California’s readiness to address the massive economic and human impacts of both severe weather (a la superstorm Sandy) and sea-level rise on low-lying regions like the Bay Area.  And he discussed his strong interest in improving California’s  educational performance through such vehicles as student funding formulas, new common core standards and online technologies.

Thank you to Governor Brown for his time, Kaiser Permanente and CEO George Halvorson for generously hosting the meeting.

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EXECUTIVE COMMITTEE ADOPTS 2013 BAY AREA COUNCIL POLICY PLATFORM

With victories and major progress in 2012 on all of the Bay Area Council’s top policy priorities, the Executive Committee this week adopted its 2013 agenda. Thank you to all our members for their valuable and thoughtful input over the past two months in identifying our policy priorities, including:

21st Century Infrastructure. Economic growth and prosperity can’t be sustained without a modern infrastructure, not something California would immediately be accused of having. We will work to identify investment in transportation, energy, water, broadband, airports and other parts California’s vital infrastructure. We’ll also continue our important work on CEQA, which affects all infrastructure.

Public Pensions. We got the ball rolling this year with reform legislation that will end some abuses and lower costs for new public employees, while requiring that all employees contribute toward their retirement benefits in the future.  But there remains massive unfunded liability across many parts of the system, and the work continues, which if unchecked will threaten to continue bankrupting cities and consume ever-growing share of taxpayer dollars.  The work continues.

Healthcare. The state is less than one year away from launching its health benefit exchange. The Bay Area Council will be on the front lines of this process, leading the business community and giving our members a strong voice in how reform rolls out.

China/Trade. We’re focused on opening California’s trade office in China in the coming months and building on our own successes in forging direct economic partnerships with some of China’s leading tech districts.

Higher education. With massive cuts to all levels of higher education over the past decade, California is at serious risk of diminishing one of our greatest competitive advantages and a major source of our high-skilled workers.  We’ll begin with a Bay Area Council Economic Institute white paper examining the state’s higher education Master Plan.

President and CEO Jim Wunderman praised Chair Janet Lamkin’s leadership in bringing sharp focus to the Bay Area Council’s 2012 policy priorities that he credited for our success in:

–Securing early investment to modernize and electrify the Caltrain corridor;
–Winning reforms to the public pension system that will make them more sustainable going forward;
–Helping shape the framework for healthcare reform that keeps the focus controlling costs and improving quality;
–Passing legislation to reopen California’s trade offices and being named to open the first office in China; and,
–Keeping pressure on the Legislature to reform CEQA.

Michael Covarrubias beseeched members to become engaged with Bay Area Council policy staff and committees, observing that it is only through the collective leadership and involvement of our members that we are able to produce the kinds of results we did in 2012.

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New Study: For Every New High-Tech Job, Four More Created

When it comes to creating jobs in California across a wide range of income levels and employment sectors, a new report by the Bay Area Council Economic Institute and commissioned by Engine Advocacy concludes it pays to play to your strengths. For much of the Bay Area and other regions in the state, high-tech jobs are where the action is. The report – Technology Works: High-Tech Employment and Wages in the United States – shows that high-tech jobs have been more resilient over the past 10 years to economic downturns than other private sector industries, pay more, create more indirect jobs by far than any other industry and hold the most promise for continued growth. We were pleased to hand Governor Brown a copy of the report yesterday fresh off the presses.

Among the key findings:
– Employment growth in tech jobs — defined as those most closely related to science, technology, engineering and math (STEM) — outpaced gains in all other occupations by a ratio of 27 to 1 from 2001 to 2011.
– For each job created in the high-tech sector, approximately 4.3 jobs are created (multiplier effect) in other local goods and services sectors across all income groups, including lawyers, dentists, schoolteachers, cooks and retail clerks, among many others.
– The jobs multiplier effect in the high-tech sector is significantly higher than for almost any other sector. By comparison, traditional manufacturing has a multiplier effect of 1.4 jobs.
Demand for high tech occupations will be considerably stronger than demand for other workers at least through 2020.

Using federal labor statistics, the report also shows that while California continues to dominate in high-tech jobs the Golden State is not the only game in town. There was sobering news for Silicon Valley, which didn’t crack the top 25 among high-tech regions with the biggest percentage job gains. High-tech jobs are increasingly popping up in states and regions that historically have not been associated with high tech, including in the Rust Belt and South. This has important implications at a federal level for how jobs and economic policy is shaped. But the study’s findings don’t suggest that California should necessarily engage in hand-to-hand combat with other states for these jobs. According to another recent study by the Economic Institute, how the vast majority of jobs get created or destroyed in the Bay Area has little to do with companies moving in or out of the region and more to with the survival rate of start-ups across all sectors. The availability of high-skilled workers, inadequate housing supply that drives up costs and burdensome regulation have a bigger role in deciding the survival of new firms and job growth than what other states might be doing to lure away companies.