• “Tax Expenditure” Report Update Ordered. At the request of staff, the board approved staff work on updating its 2003 “Tax Expenditure” report. Cal-Tax’s David R. Doerr pointed out that there is a problem in the report in that the estimate of revenue losses due to the ‘tax expenditures’ are based on a static estimate that doesn’t take into account the economic effects. He said the report gives a misleading view to the public.
  
  FTB estimating guru Phil Spilberg said FTB staff is not equipped to factor in economic effects in making the estimates.
  
  The board asked staff to coordinate with the Department of Finance on the issue.

• CEO Survey: California has Worst Business Climate Among States as reported in Caltaxletter, January 7, 2005.

• Senate OKs Offshoring Bill by Karl Schoenberger in the San Jose Mercury-News, August 24, 2004.

• Lawmakers Sit of Study Praising Offshoring Jobs by Daniel Weintraub in the Sacramento Bee, August 24, 2004.

• California Business Takes it on the Chin as reported in Caltaxletter, June 4, 2004.

• Report: Record Number of Californians Lured Away as reported in Caltaxletter, May 28, 2004.

• Spending Limit Initiative is Launched for November Ballot as reported in Caltaxletter, January 16, 2004.

• Study: Cities Benefit by Subsidies and Tax Cut for Business as reported in Caltaxletter, December 19, 2003.

• Local Firm Drawn to Nevada, Colorado by Bob Shallit in the Sacramento Bee, November 10, 2003.

• Scripps Research Institute to Florida? by David Royse, Associated Press writer.

• Idaho Lures California Business, Even in Bad Times in the  Inland Valley Daily Bulletin, October 10, 2003.

• A Variable Climate by Marla Dickerson in the Los Angeles Times, October 5, 2003.

• California Proves Too Costly for Departing Businesses in USA Today, October 2, 2003.

• Support for Lower Vote Threshold on Budget has Big "If" by John Hill in the Sacramento Bee, September 18, 2003.

• So, Are You In or Out? by George Avalos in the Contra Costa Times, September 14, 2003.

• Insurance Fix Could Cost Jobs by George Avalos in the Contra Costa Times, September 4, 2003.

• Workers Comp Costs Hit Hard by Todd Milbourn in the Modesto Bee, August 25, 2003.

• Businesses Ponder Leaving California by Steven Vames in the Wall Street Journal Online, August 20, 2003.

• Saving Jobs: Fix California's Unfriendly Business Climate, an editorial in the San Diego Union-Tribune, May 19, 2003.

• Sweetening the Pot by Jan Norman and Mary Ann Milbourne in the Orange County Register, May 15, 2003.

• Assembly Committee Approves Reconsidered Bill to Require Cities to Pay Real Costs of Utility Takeovers, Corona Drops Efforts to Take SCE Property as reported in Caltaxletter, May 9, 2003.

• Jobs Coalition Will Hold Legislators Accountable for their Votes as reported in Caltaxletter, May 9, 2003.

• Jobs 1st Coalition Letter to Governor Gray Davis and Members of the California Legislature May 8, 2003.

• Other View: Workers' Comp Costs Must Be Addressed, an editorial in the Sacramento Bee, May 8, 2003.

• Workers' Comp: Davis-Garamendi Plan: Top Concern of Business Leaders as reported in Caltaxletter, May 2, 2003.

• Anti-Business Climate: Firms Should Fight It, Not Just Give Up by Allen Pilger in the Orange County Register, April 27, 2003.

• Cal-Tax and Chamber Propose Initiative to Head Off Huge Threat of Higher Taxes in California as reported in Caltaxletter, April 25 2003.

• GOP Workers' Comp, Economic Stimulus Package Mostly Rejected by Labor-Dominated Senate Committee as reported in Caltaxletter, April 25, 2003.

• Brutal Battle Behind Scenes Over School Contracting by Daniel Weintraub in the Sacramento Bee, April 22, 2003.

• Squeezing the Middlemen Out of Workers' Comp by Daniel Weintraub in the Sacramento Bee, April 17, 2003.

• Report: Davis to Propose Measures to Cut Workers' Comp Costs as reported in Caltaxletter, April 4, 2003.

• Roll-Back of Anti-Business Laws Seen as Crucial to Economic Recovery as reported in Caltaxletter, March 7, 2003.

• The High-Cost State, an editorial from the Long Beach Press Telegram, February 12, 2003.

• Is California Climate Getting Too Chilly for Business? by Marla Dickerson in the Los Angeles Times, February 9, 2003.

• Buck Knives is Moving on to Idaho; Costs Cited by Matthew T. Hall in the San Diego Union-Tribune, January 15, 2003.

• Davis has the Right Focus, but his Goal is Modest by Daniel Weintraub in the Sacramento Bee, January 7, 2003.

• Rising Costs May Make Companies Leave California by Dean Calbreath in the San Diego Union-Tribune, January 7, 2003.

Legislation:

• NOLs and Real Estate Withholding. SB 1012 (Poochigian) allows corporations to take a 100 percent net operating loss carryforward for 2003 losses and repeals the disallowance provisions for 2002 and 2003. It also limits real estate withholding provisions to out-of-state residents.

• Suspension of Anti-Business Bills. SB 1X (Poochigian) suspends the effective date of several anti-business bills enacted in 1999, 2001 and 2002 until Governor Davis issues a proclamation that California has fully recovered from the current recession.

  Statutes proposed to be suspended are:

·         AB 60 (Knox) of 1999, reducing flexible workweeks, by requiring overtime to be paid from time worked in excess of eight hours a day, rather than 40 hours a week.

·         SB 975 (Alarcon) of 2001, expanding the definition of “public funds” requiring payment of “prevailing wages.”

·         AB 749 (Calderon) of 2002, increasing workers’ compensation benefits.

·         AB 2509 (Goldberg) of 2002, allowing local governments to impose labor standards more stringent than required by the state for local projects receiving state funding.

·         AB 2816 (Shelley) of 2002, requiring temporary employment agencies to pay workers’ compensation premiums for employees furnished contractors, based on the experience modification of the licensed contractor.

·         SB 1156 (Burton) of 2002, requiring mandatory mediation of labor disputes between farmers and farm unions.

·         AB 2596 (Wesson) of 2002, placing a 2008 sunset date and making other changes in SB 1156 (see above). 

• Appropriations Limit. SCA 3 (McClintock) was amended on April 21 to change provisions in a revamped state spending limit. Subventions to local government are proposed to be included in the state’s limit and excluded from the local limit. Refunds of specified amounts over the state’s limit must go to personal income and corporate taxpayers.