Welcome to the July Agribusiness issue of NorthBay biz magazine. Included this month is a special report on commercial real estate’s rapidly changing market. Given California’s bipolar nature, primarily driven by the tech industry’s boom-or-bust business cycles, it’s a pleasure to focus on the more traditional and more stable agriculture industry. In the North Bay, the ag community not only sets the tone for the economy, but also the rhythm of local life. So please enjoy all the stories, special features and columns as they afford a glimpse into the North Bay’s unique business lifestyle.
Last week, the magazine’s “Best Of the North Bay” Readers Poll awards event was a full-throated celebration of business in the North Bay. More than 350 area business leaders assembled at the Santa Rosa Golf & Country Club to receive their awards and take to the dais to remark on the importance of being recognized as a Best Of business recipient. The energy in the room was palpable and our thanks go out to all our sponsors and all the award-winning wineries that poured that night. A final thanks to Kevin Marshall and his outstanding team at the Santa Rosa Golf & Country Club for helping us make it a night to remember. Congratulations, again, to all the winners.
Several weeks ago, the director of one of the region’s larger chamber of commerce contacted me and wanted to know my thoughts on the just passed SB1 gas tax increase. The chamber hadn’t taken an official position supporting or opposing the bill primarily because members had such strong feeling on both sides of the issue. Here’s part of my response to the chamber:
Are the state’s roads a joke? Absolutely! And yes, fixing them should be a top priority.
However, after years of neglect, because the billions in tax money intended to maintain our roads was put into the general fund to pay for other programs deemed more (politically) important, California’s elected elite came to the only conclusion they’re capable of making—raise taxes to pay for something they’ve already collected taxes for.
There are so many reasons this is bad policy, but for business, it’s just another reason to think about leaving the state or not locate here in the first place. When your state already leads the nation in almost every tax category, what’s another $50 billion or so in additional taxes?
The chamber should stand up for business and every citizen in the state and condemn not only the gas tax, but also the horrible way it was done. I could go on and elaborate on that last point, but Tom Scott, executive director of the National Federation of Independent Business (NFIB) eloquently made the case persuasively. Here’s what he said:
“We are deeply disappointed with the passage of SB1 as it represents not only bad public policy, but also bad politics. Our roads have been embarrassingly neglected for decades and billions of taxpayer dollars have been diverted away from our roads in that time, yet Governor Brown and Democratic legislative leadership imposed an arbitrary one-week deadline to jam the largest gas tax increase in state history. The bill that passed was rushed to the assembly floor without receiving a single committee vote in the house. This rushed process for the sake of political expediency silenced business owners and all taxpayers who have not had the opportunity to review and analyze this sweeping legislation.
We also can’t ignore how nearly one year ago, the same politics in Sacramento rushed the $15 minimum wage hike through the legislature in one week. However, the 50-cent per hour pay bump minimum wage workers got with SB3 last year will be instantly erased by the tax increase in SB 1. These policies don’t operate in a vacuum, and ultimately hurt working families and low-wage workers the hardest when they’re forced to pay more for gas, goods and services. The legislature also spent $36 billion in new revenues over the last six years, but not one dime went to critical transportation projects. SB1 gives us more taxes, zero reforms and no sunset.”
California’s elected officials continue to spend taxpayer’s money like it’s OPM (other people’s money)—hey wait, it is! There is never a shortage of straight pork projects, politically correct or feel-good causes for our elected officials to green-light prolific spending. Our roads and transportation infrastructure hasn’t fallen into disrepair because gas taxes are too low, but simply because our elected officials have consciously chosen to spend funds earmarked for roads on something else and make us pay for road repairs, again.
That’s it for now. Enjoy this month’s magazine.
