Newsroom

Partnership votes to oppose LA County Percent for Arts Ordinance, supports two major water bills

IRWINDALE - This week, the San Gabriel Valley Economic Partnership's Legislative Action Committee voted to oppose the proposed LA County Percent for Arts Ordinance, a measure that would place a 1% project valuation fee on new development for the creation of art in LA County. This fee only increases the cost of housing at a time when new housing construction is desperately needed in the region. 

"Homelessness rose by 12% last year in Los Angeles County," said Bill Manis, Partnership President & CEO. "Here in the San Gabriel Valley, homelessness was up by 24%. We need more housing for people at all income levels and this County arts fee only makes new housing more expensive."

The Partnership supports exempting housing and residential development from the proposed fee.

The Partnership also voted to support AB 2246 (Mayes), a bill sponsored by the Metropolitan Water District of Southern California which exempts the agency from the Surface Mining and Reclamation Act of 1975 in order to make repairs to the Colorado River Aqueduct and other key conveyance infrastructure in the state. Another bill supported by the Partnership was SB 996 (Portantino) which creates a new program under the State Water Resources Control Board to monitor new potential contaminants in drinking water supplies.

If there are any questions regarding these positions, please contact Brad Jensen, Director of Public Policy at (626) 856-3400 or bjensen@sgvpartnership.org.

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March Election Recap: Biden strikes back! Bernie wins the California Democratic primary, San Gabriel Valley election results

IRWINDALE - The March primary election blew through the Golden State and across the nation as voters cast ballots in states coast to coast on Super Tuesday. Former Vice President Joe Biden stormed back to win primaries in Tennessee, Virginia, Oklahoma, Texas, Massachusetts, Maine, Arkansas, Minnesota, North Carolina and Alabama while Senator Bernie Sanders won California, Utah, Colorado, and his home state of Vermont. With other major Democratic contenders like Mayor Pete Buttigieg, Senator Amy Klobuchar, and Mayor Mike Bloomberg having dropped out of the presidential race, it sets up a mano-a-mano duel between Biden and Sanders for the Democratic nomination.

Here in the San Gabriel Valley, votes are still being counted and will continue to be counted for the next two weeks at least, but highlights of key races with preliminary results are listed below:

-57th Assembly District: In the open seat contest on the southern edge of the San Gabriel Valley, covering South El Monte, Industry, and Hacienda Heights, lone Republican Jessica Martinez leads a crowded field of Democratic challengers with 13,270 votes and 29.52% of the overall vote. Martinez will make the top-two runoff and face Democrat Lisa Calderon who has 8,874 or 19.74% of the vote so far, ahead of fellow Democrat Sylvia Rubio by 864 votes. This is a close race so watch the vote totals in the days ahead.

-Pasadena Mayoral Race: Challenger Victor Gordo leads incumbent Mayor Terry Tornek by 979 votes in a close contest that will likely have the two face off in November.

-LA County Parcel Tax Measure FD Narrowly Passing: The county parcel tax measure to fund County Fire Department services is narrowly passing with 52.52% of the vote (210,733 votes in support) at this time.

-LA County Supervisors and LA County District Attorney: LA County Supervisors Janice Hahn (4th District) and Kathryn Barger (5th District) both appear to be comfortably ahead in their races and headed towards re-election. In the open 2nd County Supervisorial seat, LA City Councilman Herb Wesson and State Senator Holly Mitchell will head to a run-off in November. LA County District Attorney Jackie Lacey leads her two competitors with 50.69% of the vote.

-Sales Tax Increase Measures: City sales tax increases passed in Alhambra, Azusa, Duarte, La Verne, Montebello, and San Gabriel but failed in San Dimas (60.87% - No), West Covina (78.91% - No)  and Monterey Park (69.20% - No).

-Contested La Verne Mayoral Race: Councilman Tim Hepburn leads incumbent Mayor Don Kendrick in a tight race by 599 votes.

-Monrovia Mayor/City Council race: Incumbent Mayor Tom Adams and incumbent Councilmembers Becky Shevlin and Gloria Crudington appear headed towards re-elected.

Follow this link to see the results of the SGV city elections. 

Full LA County vote results can be tracked at the LA County Registrar's Office. The California Secretary of State tracks State Legislative results as well as Congressional races. Please visit those links for updated vote totals as more ballots are counted in the days ahead.

For more information, contact Brad Jensen, Director of Public Policy at the Partnership. (626) 856-3400 or bjensen@sgvpartnership.org

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Partnership Sponsors Legislation to Incentivize Affordable Housing Development on Surplus School Properties

IRWINDALE - The San Gabriel Valley Economic Partnership has sponsored legislation designed to incentivize the development of affordable housing on surplus school properties. The new bill, SB 1017, is being carried by one of our local lawmakers, Senator Anthony Portantino (D-La Canada Flintridge).

“This bill will incentivize school districts to sell or lease surplus properties for vital, new affordable housing,” said Bill Manis, President and CEO of the San Gabriel Valley Economic Partnership. “By providing greater flexibility in how districts can use the proceeds of a property lease or sale, more land will be available for affordable housing in communities that desperately need it.”

Declining student enrollment is a challenge school districts across the state have been struggling with for many years. As California grows more expensive to live in and the size of families decline, less students are attending schools. Since state funding is based on average daily attendance, many school districts here in the San Gabriel Valley have had to close schools to save money on operations, personnel, and maintenance. Just last October, Pasadena Unified School District closed three elementary schools and Wilson Middle School. A year ago, Azusa Unified closed Sierra High and Mountain View Elementary. These school campuses are often repurposed for other educational uses but many sit largely empty, sometimes for decades as surplus school properties.

Why can't schools just sell or lease these properties, especially if they're facing financial difficulties? California state law requires schools to go through a complicated "7-11" Committee process to review the impact selling school property would have on a community. State law also restricts how the revenues of a sale or lease could be used by the district to capital improvements with some limited exceptions.

SB 1017 provides school districts a menu of new financial options to use the revenues from the sale or lease of surplus school property - but these options are only available if the districts sell or lease for new affordable housing development. Under SB 1017, districts would have the option of using the sale or lease revenues for:

1) capital improvements, including deferred maintenance;

2) the option to deposit revenues in the General Fund reserve;

3) create a new fund to pay for ongoing CalSTRS and CalPERS payments; and

4) used to offset increasing costs for special needs students.

“Considering the challenges that California faces regarding funding for public education, pension obligations, and the construction of affordable housing, it does not make sense to me that school districts are hamstrung in how they are able use their assets. I’m hopeful that we can help all three important efforts,” Senator Portantino said.

For more information about this legislation, contact Brad Jensen, Director of Public Policy for the Partnership bjensen@sgvpartnership.org or (626) 856-3400.

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A NEW CALIFORNIA POLITICAL DYNASTY?

IRWINDALE - The American political system was intended to be a sharp departure from the dynastic monarchies of Europe, which periodically plunged their nations - and sometimes the entire continent - into turmoil whenever there was a dispute over succession or who had the proper sovereign claim to neighboring lands. Think of Shakespeare's epic Henry IV Parts I & II and Henry V. Americans were republicans and democrats - political power should be given to those who had earned the consent of the governed, and not bestowed upon you simply because of who your parents or family were.

Strange as it may seem, however, political dynasties have survived and thrived in the rough and tumble electoral politics of the United States. Pick any state in the Union, and usually you can name a significant political family that have dominated its politics. Think of the Tafts of Ohio, the Udalls of Arizona, the Lees of Virginia and the Bushes, Adamses, Roosevelts, and Kennedys. California is no stranger to political dynasties, as the influence of the Brown family - which has produced two extremely influential governors and a state treasurer - has long been intertwined with other influential families in the state like the Pelosies, Newsoms, and Gettys.

Even though the United States has never had an established aristocracy that compares with those in Europe, family ties remain powerful and advantageous, especially when running for elected office. To follow a parent or sibling into politics allows a candidate to draw upon their preexisting name recognition and all the benefits and baggage that goes with it. A dynastic candidate can also draw upon the loyalty of donors and staff that had supported their parent in the past. Moreover, family ties allow candidates to draw upon the experience, know-how, trust and support of their blood relations. All these advantages show why dynastic candidates can be extraordinarily successful in America.

This week news broke that two prominent political families may end up vying head-to-head over the open 57th Assembly seat in the 2020 election. Majority Leader Ian Calderon, who has held the 57th Assembly seat since his election in 2012, announced his intent not to run in 2020. Several candidates have since thrown their hats in the ring, most prominently Calderon's stepmother, Lisa Calderon, as well as Sylvia Rubio, the sister of State Senator Susan Rubio and Asm. Blanca Rubio. The Calderon family once featured three brothers in the state legislature - could the Rubios become the first family of three sisters to serve as state lawmakers together? The voters in the 57th Assembly District will decide next year. 

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FIVE SGV CITIES PLACE SALES TAX INCREASES ON THE MARCH 2020 BALLOT

IRWINDALE - Five San Gabriel Valley cities - Alhambra, Azusa, La Verne, San Gabriel and West Covina - have placed 0.75% sales tax increases on the March 2020 ballot. If voters approve the measures, these cities will reach the state maximum rate for sales tax at 10.25%. Cities raising their sales tax to pay for city services, facilities, pensions and other financial obligations has been a recent trend as voters in Covina, Pasadena, Pomona, Glendora, Arcadia, Monrovia, Irwindale, Sierra Madre, and South Pasadena have all approved sales tax increases in the past two years. Other cities in the region, like Duarte and Montebello, have considered similar measures. Claremont had a sales tax increase narrowly defeated just two weeks ago.

"Cities are asking their residents to approve sales tax increases because they have rising costs, but also to retain more tax dollars in the city rather than lose it to LA County or other regional agencies," said Partnership President and CEO Bill Manis, himself a former city manager. "Losing local dollars is a serious problem. With so many competing tax authorities, San Gabriel Valley cities and residents worry that they send their precious tax dollars into L.A. but only get pennies back to deal with major problems in their towns like homelessness. Raising the sales tax in the city allows them to retain more revenue for their own services and residents."

Pasadena Unified School District had discussed placing an $850 million school facilities bond on the March ballot but last night agreed to push it to November 2020. There are significant needs in the district to upgrade the technology available in classrooms and to properly maintain several school facilities. However, Board members felt that more time was necessary to properly inform the public about these needs and to evaluate the spending plan for this measure.

Bassett Unified School District, located in the central San Gabriel Valley along the 605 freeway between the 10 and 60, will place a $50 million facilities bond on the March 2020 ballot. If approved, the monies raised will be used for a variety of school facility improvements.

For more information about these measures, contact Brad Jensen, Director of Public Policy at (626) 856-3400 or bjensen@sgvpartnership.org.

Sales tax increases approved in four SGV cities, defeated in Claremont

IRWINDALE - Sales tax increases were approved in Monrovia, Irwindale, Sierra Madre and South Pasadena yesterday while a measure to raise the sales tax in Claremont was defeated by a thin margin of 122 votes. With the approved increases, sales tax rates in the four cities will rise to the state max of 10.25%.

There has been a distinct trend of sales tax increases being placed before city voters here in LA County over the past two years. Arcadia approved a sales tax increase in June 2019, which was preceded by Glendora in March 2019 and Pasadena and Pomona in November 2018. This trend is due, in part, to ongoing financial pressures facing cities over pensions and cost of services, as well as concern over LA County placing sales tax increases on the ballot, removing part of the taxing "space" available for municipal governments to raise funds from. With the defeat of Measure CR - the third straight city-backed measure to be defeated, with two previous bond measures addressing facility costs for a new police station - the City of Claremont now faces a difficult financial situation with hard decisions ahead for the council.

San Marino voters agreed to extend an ongoing parcel tax to fund city services while City Council incumbents Steven Huang and Steve Talt were both re-elected.

Full results from the San Gabriel Valley elections can be downloaded here:

For additional questions about the election results, contact Brad Jensen, Director of Public Policy at bjensen@sgvpartnership.org or (626) 856-3400.

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Governor Newsom signs sweeping independent contractor reclassification bill into law

IRWINDALE - On Wednesday, Governor Gavin Newsom signed AB 5 into law, a major piece of legislation that has massive implications for state employment law. The bill codifies a California Supreme Court decision in the Dynamex case, which threw out established state law that allowed workers to operate as independent contractors which did not provide the same rights and benefits as full employees but gave them greater scheduling flexibility and less operational oversight by employers.

AB 5 had several significant carve outs and exemptions for certain professions, such as physicians, lawyers, and accountants, but much of the news has focused on "gig" workers at Uber and Lyft and the reaction of those companies to this aggressive new regulation by the state of their unique business model. It is estimated that reclassifying all their previously independent contractors as full employees will cost Uber and Lyft $3,625 per driver per year for a combined bill of over $800 million. Uber and Lyft have threatened to place a ballot measure before voters next year to reverse AB 5.

Labor advocates have argued that independent contracting is a legal loophole that allows companies to shortchange workers on the benefits and protections full employees receive at the price of flexibility. What is less discussed in the press is that independent contracting is a long-established form of employment that many, many companies (and many government agencies) rely on to address important needs at an affordable price. In light of this new regulatory bill, companies will face extremely difficult choices of what to do with their previously independent contractors. Certainly some companies will choose to hire some contractors as permanent new employees but given the high price to do so, it is more likely that more will simply discharge the contractors they've relied on. The overall result is that California companies will be shorthanded and hamstrung without access to affordable labor in their own state, putting them at a severe disadvantage compared to their competitors in the rest of the country while California's formerly independent contractors will find themselves without the flexibility and easy-access gig work they once relied on. Lyft has already notified its drivers that they may soon have to work in specific shifts, in specific areas, and only work for a single ride-share platform.

Lawmakers are fond of citing the fact that California is the 5th largest economy in the world, frequently in an attempt to say that the state is doing pretty darn well and therefore it can afford to pay a little extra for more regulation in the labor force. What's often overlooked is that the state - with its immense advantages in agriculture, technology, entertainment, and many other industries - should really be the 2nd largest economy in the world, with a vastly larger economy that delivers more wealth and goods for California's millions of residents. Instead, the state struggles with a crippling housing crisis and vast disparities in poverty and opportunity. Perhaps AB 5 results in some contractors being hired full time and enjoying stronger benefits and protections but more likely is less job opportunities all around, less flexibility, less innovation, and a less dynamic economy in a state that prides itself on being forward thinking.

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State Legislature, LA County Enact Rent Control while Independent Contractor Reclassification Bill Passes

IRWINDALE - It's been a huge week in California politics. The California State Legislature, which will wrap up the 2019 session today, passed a statewide rent control bill that will limit rent increases to 5 percent annually plus inflation while prohibiting the eviction of tenants except for just cause. The measure, AB 1482, will remain in force for ten years. Similarly, the Los Angeles County Board of Supervisors unanimously approved a cap on rent increases in the unincorporated areas of the County, making what was a temporary measure permanent.  While most rent control is enforced by local city rent control boards, it is likely the statewide rent cap increase would be enforced by the courts.

Lawmakers in Sacramento also passed AB 5, a landmark bill that enacts the controversial Dynamex decision into state law, thereby reclassifying independent contractors as employees. AB 5 initially earned the support of business groups across the state in the hopes that a workable compromise could be found to preserve the flexibility and benefits of working as an independent contractor while legally reconciling state law with the Dynamex decision. However, a grand compromise did not pan out, with individual industries lobbying for special exemptions and carve outs for their workers. Maintaining independent contractor status is important for the broader economy, to allow for career flexibility for employees while employers benefit from a more affordable and flexible workforce. While there was talk of creating a hybrid employee classification somewhere between a fully independent contractor and a full employee, this proposal was never finalized. Particularly upset with the passage of the legislation was prominent gig companies like Uber and Lyft, who have threatened to support a ballot measure to allow voters next year to over turn AB 5.   

Here's how our San Gabriel Valley state lawmakers voted on AB 1482:

Yes on AB 1482: Asms. Calderon, Chau, C. Garcia, Friedman, Holden, Rodriguez; Senators Leyva, Portantino, S. Rubio

Not Voting on AB 1482: Senator Archuleta

No on AB 1482: Asms. Chen, B. Rubio; Senator Chang

Here's how our San Gabriel Valley state lawmakers voted on AB 5: 

Yes on AB 5: Asms. Calderon, Chau, C. Garcia, Friedman, Holden, Rodriguez, B. Rubio; Senators Archuleta, Leyva, Portantino, S. Rubio

No on AB 5: Asm. Chen, Senator Chang

For more information, contact Brad Jensen at the Partnership.

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Job Killer bills moving forward in Sacramento as State Legislature nears the end of 2019 session

IRWINDALE - With less than two weeks left in the 2019 session, lawmakers in Sacramento will soon be voting on major pieces of legislation that will harm the state's economy and impede job creation in California.

Chief among these harmful bills is SB 1 (Atkins), a bill that creates major regulatory uncertainty by authorizing state agencies to adopt federal rules and regulations without having to follow the Administrative Procedures Act safeguards which requires all new rules to be subject to public comment and review. Moreover, this bill will create more hurdles for the conveyance of water to Southern California by derailing ongoing Voluntary Agreement negotiations. SB 1 is currently on the Assembly floor and could be brought up quickly for a vote.

Another key bill to oppose is AB 1066 (Gonzalez), which would allow striking employees to claim unemployment benefits after four weeks on strike. This bill is particularly odious as businesses pay into the unemployment insurance fund to assist those who have lost their jobs through no fault of their own. Striking workers have not been fired or laid off - they have employment which they are choosing not to fulfill. By allowing striking workers to draw unemployment insurance, California runs the risk of depleting that fund and not having assistance available during a major economic downturn.

Finally, AB 51 (Gonzalez) would ban arbitration agreements made as a condition of employment, thereby increasing costs for employers and employees and increasing the chance of litigation. Such a law, if it were to pass, would likely be preempted by the Federal Arbitration Act and would only delay the resolution of disputed employment claims. Governor Brown vetoed a similar bill last year, noting that it "plainly violates federal law." 

For a detailed list of more key bills to watch at the close of session, visit the CalChamber's Action Alerts Web page for ways to contact and engage with your lawmakers.

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Gold Line backed with additional funding from San Gabriel Valley Council of Governments, will complete the line out to Pomona

IRWINDALE - The Foothill Gold Line will be built to Pomona having obtained crucial additional funding from the San Gabriel Valley Council of Governments in a unanimous vote on Thursday night. The Partnership wrote a letter and spoke in support of additional funding for the Gold Line to ensure that the line would be built to Pomona.

"The Foothill Gold Line is the single most important economic project underway in the San Gabriel Valley," said Partnership President and CEO Bill Manis. "Yes, it's a mass transit system but the Gold Line brings with it development incentives to build thousands of new homes, add thousands of new jobs, and brings billions in investment to the region. Its completion is absolutely vital."

A total of 27 San Gabriel Valley cities backed the project, agreeing to assign special reserve funds to the Gold Line project, whose cost estimates had increased due to the high demand for steel and labor in the broader economy. It is hoped that the Gold Line will be completed from its current terminus in Azusa through Glendora, San Dimas, La Verne and to Pomona by 2025.

The Partnership is pleased to see the strong support for the Gold Line in the region and wishes to thank our cities and their representatives to the COG Board for the vote in favor of funding the project.

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