Business coalition critical of CARB's emission reduction targets

As part of a coalition of business organizations, the Contra Costa Council has voiced strong opposition to the proposed emission reduction targets identified in the August 9 staff report of the California Air Resources Board (CARB): Regional Greenhouse Gas Emissions Reduction Targets for Automobiles and Light Trucks Pursuant to Senate Bill 375.

In a letter to CARB Chair Mary Nichols, coalition members said that the proposed targets are not feasible to achieve, would bring extraordinary cost increases to families and would have severe ramifications for California's economic recovery. "We respectfully request that the Air Resources Board reject the unreasonable target levels and instead pursue more reasonable levels at the low end of the contemplated target range," they wrote.

"While we appreciate the challenge of reaching our climate change goals, the targets recommended by CARB staff fail to balance the goals with California's need to provide jobs and housing for our residents. The targets as they have been proposed are unreasonable and unachievable, and will have a chilling effect on new economic projects and developments," the letter continued. "This unfortunately undermines the extensive collaborative process that the metropolitan planning organizations engaged in to make thoughtful recommendations to CARB.

"These extraordinarily high target levels were not modeled for economic impacts, and are based on entirely impractical assumptions about transportation improvements. For example, CARB's targets assume the development of expensive mass transit projects such as high speed rail, which are not likely to be completed anytime soon. Furthermore, the targets do not realistically account for potential population growth," members wrote. The targets may result in reduced job growth; in fact, the Southern California Association of Governments (SCAG) recently adjusted its job forecast downward by 200,000 jobs to demonstrate a half percent reduction in emissions. It is unfortunate that these targets are premised on reduced economic activity as correlated to reduced emission levels, at a time when California should instead be prioritizing job creation and economic growth.

"Until these policies are vetted and analyzed for economic impacts, and the public is informed about the ramifications, CARB should reject the proposed target levels," they wrote.

"The process that started as a collaborative effort has turned into a massive new state regulatory program that will create major uncertainty for employers and increase job losses. In order to preserve the spirit of SB 375 and promote a program that will move forward successfully, CARB should go back to the input and analysis that was provided by experts during the stakeholder process, and adopt lower range targets that have been modeled and shown to be reasonable and achievable."

City managers' report an important first step in pension reform

In a letter to city managers throughout the county, the Contra Costa Council has urged support of the reform principles and strategies outlined in the report of the Alameda and Contra Costa City Managers. The report includes requiring employees to participate in the funding of their pension plans and establishing a new tier for new employees to control future liabilities. The Council Board of Directors' action was recommended by the Economic Development Task Force.

"We applaud the proposal as an important first step and agree that our region must work toward a uniform set of goals to avoid placing any particular jurisdiction at a competitive disadvantage," wrote Council President and CEO Linda Best.

"It is clear that current pension and retiree health care benefits are not sustainable. Taxpayers are bearing the burden by paying higher taxes and experiencing a reduction in services. Every day we read about valuable programs being cut by the cities and the county in an effort to balance their budgets, such as reductions in public safety personnel, fewer safety net services and scaled-back recreation programs. Reform is needed now."

While offering support for the city managers' proposed reforms, the Council believes they do not go far enough. "Based on projected future liabilities and reform trends in both the public and private sectors we suggest that all employees should pay the entire employee share of funding pensions, as defined by the CalPERS Formula," noted Best. "We also support the report's recommendation that Contra Costa cities work through the League of Cities to support meaningful reform at the state level." Measures being considered include setting a reasonable benefit cap, retaining safeguards against pension spiking, changing CalPERS Board membership to achieve better employee/employer balance, and allowing existing employees to be enrolled in negotiated new tier plans on a prospective basis.

Other Post Employment Benefits (OPEB) liabilities are also straining the budgets of many local governments, as identified in the Contra Costa Economic Partnership's report, Managing Public Sector Retiree Healthcare Costs in Contra Costa County. Based on that report, local jurisdictions should also consider the following measures: 1) Caps should be put on retiree health care benefits to protect against future escalation of employer costs, possibly by employees assuming a greater share of premiums or by moving retirees to health care accounts; and 2) Jurisdictions with large OPEB liabilities should begin to pay down these liabilities to avoid future strains on local budgets.

"We strongly urge you to act on these recommendations now," concluded Best. "Failure to do so will only increase the financial burden and make solutions more challenging. Future generations will pay the price."

Council votes support and opposition to individual state ballot measures

Following a discussion of state ballot measures, which will be presented to California voters in the November 2 election, Contra Costa Council directors voiced support and opposition to individual propositions at the September board meeting.

Proposition 20: Redistricting of Congressional Districts. Removes elected representatives from the process of establishing congressional districts and transfers that authority to the recently authorized 14-member redistricting commission. Support.

Proposition 21: Establishes an $18 annual state vehicle license surcharge and grants free admission to all state parks to surcharged vehicles. Requires deposit of surcharge revenue in new trust fund to be used solely to operate, maintain and repair the state park system and to protect wildlife and natural resources. Support.

Proposition 23: Would suspend laws enacted to implement AB32 until California's unemployment rate drops to 5.5% or less for four consecutive quarters. Tabled to October 15 board meeting discussion.

Proposition 24: Repeals recent legislation that would allow businesses to shift operating losses to prior tax years and that would extend the period permitted to shift operating losses to future tax years. Repeals recent legislation that would allow corporations to share tax credits with affiliated corporations. Oppose.

Proposition 27: Eliminates the 14-member redistricting commission selected from applicant pool picked by government auditors. Consolidates authority for establishing state Assembly, Senate and Board of Equalization district boundaries with elected state representatives responsible for drawing congressional districts. Oppose.

Endorsement for One Million More College Graduates by 2025 campaign

At the recommendation of the Workforce Development/Education Task Force, the Council is supporting the One Million More College Graduates by 2025 campaign of the Campaign for College Opportunity. The organization notes that the state's historic leadership in higher education is on the decline. Students are being turned away from community colleges and four-year universities. Devastating budget cuts and a lack of political will to reform the state's higher education systems has put one of California's greatest assets at risk.

The campaign seeks to tell the next governor of California to prioritize and invest in higher education by signing the One Million More pledge, which outlines "common sense" steps to produce more college graduates by providing a spot in college for all eligible students, supporting community colleges and universities with additional revenues, preserving financial aid for low- and moderate-income Californians through Cal grants and increasing student access to federal Pell grants, among other steps.