Welcome to the September Housing and Construction issue of NorthBay biz. Topics in this month’s issue are: the numerous tangible benefits enjoyed by employing sustainable building practices; the options available to a homeowner faced with possible foreclosure; why Santa Rosa’s efforts to create ample affordable housing are getting noticed throughout the Bay Area; Hamilton Landing’s latest incarnation; Napa Valley wineries’ efforts to enhance local public education; and our quarterly commercial real estate report. And, of course, this issue boasts all our regular and special features, plus all our columnists whose insightful commentary promises to inform and delight you.
Also, I’d like to announce the debut of our newly redesigned website. I encourage you to visit northbaybiz.com to experience not just the redesign, but the user-friendly features and functionality. And hats off to John, Garth and their crew at Site Design, who not only delivered what they promised, but actually exceeded our expectations. Without their immense skills and expertise, this project wouldn’t have come to fruition.
Some of the features include the ability to post your business, community or charitable events on our events calendar. And every visitor to the site will be able to search the calendar by event type or location. You’ll be able to post your press releases too, which will also be searchable. You can also search past issues for stories and features and then email to friends, colleagues or business associates. Also new to the site are blogs. The first one will be hosted by yours truly. After we work any kinks out, some of our other columnists will also be hosting their own.
You can also list your business for free in our new NorthBay biz directory. We’ve already compiled thousands of businesses in our directory database and intend on it becoming the most up-to-date, accurate and complete Business Directory serving the entire North Bay.
Another feature you’ll find at our new website is the ability to manage your subscription. You can subscribe, renew, post any change of address and pay for it online. Subscribers are already registered, and all you have to do to log on is use your subscriber number—which you can find on the mailing label of the magazine—for both your user name and password. Once you’ve logged on for the first time, you can change your user name and password to anything you desire.
And finally, the new website will also feature several new advertising opportunities. You’ll be able to profile your business, sponsor a “Biz Tool,” place your ad on industry- specific pages, create live links to your own website, place your ad on navigation bars, select among different-sized skyscraper ads and run-of-site rotating banner ads.
We’re extremely pleased with our new site’s functionality, increased interactivity and overall enhanced design. We’d be equally pleased to hear any feedback you may have.
Ok, that’s it for the infomercial. Last month in my column, “How Many Zeros in a Billion?,” I railed on about California’s perennial budget deficit. Thinking, at the time, well, at least I won’t have to take on that topic again for another year. Yet here we are a month later, no closer to resolving the $20 billion “budget crisis.” That’s what I get for underestimating the incompetence of the California legislature. Let me share some facts about our state government that might enlighten and infuriate you at the same time.
The answer to solving the state’s budget deficit is elementary. I’m sure every kid on the TV show, “Are You Smarter Than a Fifth Grader?” would get it right. To bring the state’s budget into balance, we must either reduce spending or raise taxes—pretty simple and straightforward. Since California already has the highest sales tax (7.25) in the nation, the Governor thinks, “Why not raise it another one percent?”
Our state income tax of 10.3 percent is also the highest in the nation. The legislature, desperate to get more cash any way possible to support its profligate spending wants to raise it to 12 percent. That would make it only twice more than the national average. The corporate tax rate is 8.4 percent, and it too would be raised to 9.4 percent. If confiscatory tax rates weren’t driving companies and jobs from our state, why do you suppose Cypress Semiconductor, formerly a 100 percent California-based company, relocated 7,000 of its 8,000 employees outside California? And why has California lost 440,000 manufacturing jobs since 2001? All these people are now former California taxpayers.
This latest tax plan was unveiled on the heels of another two very big California employers announcing they’ve had enough. AAA Auto Club is closing its California call centers and moving them to other states. In the process, California is losing 900 jobs. A press release explaining the move simply said, “It costs more to do business in California.” Then Toyota announced that it was canceling plans to open a new Prius hybrid plant in the Bay Area because of the high tax and regulatory compliance costs here. Toyota’s investment and more than 1,000 new jobs will now be going to a more tech savvy and pro-business state—Mississippi.
These are but two of the latest examples of a steady exodus from the Gold Rush state. The Census Bureau reports that from 1996-2005, 1.3 million more Americans left than came to California. And the people leaving are disproportionately those with higher incomes—the very ones being threatened with even higher taxes. This, “the rich should pay their fair share” BS is starting to wear pretty thin. Here’s the reality—no state in the country is more reliant on six-and-seven-figure wage earners for tax revenue.
Families with incomes in excess of $100,000 already pay 83 percent of the state’s income taxes. The richest 6,000 of the 38 million Californians pay $9 billion in taxes. So the great thinkers in Sacramento believe the answer lies in giving them even more reason to locate elsewhere in the country. The Forbes list of “Best States for Business” ranked California 50 worst in business costs and 40 worst overall when quality of life issues were included.
California spent $145 billion last fiscal year. That’s $41 billion, or 40 percent, more than the last year Gray Davis was in office. Do you know where that money went? Do you believe government services have improved 40 percent? And even though we’re faced with this tremendous deficit, the Governor and the indefatigable Legislature plan to enact a $14 billion state-run health care plan, a $9 billion water bond and a multi-billion dollar climate change plan that will have an incalculably negative impact on the state economy.
On our present course, California will have the distinction of solving many of the other states real estate market problems as Californians leave in droves, deciding to flee before they have nothing left to be fleeced.
That’s it for now. Enjoy this month’s magazine.
