Recently CABPRO received the below letter from California Assemblyman Dan Logue, 3rd District, alerting us and other members of the Economic Recovery Group about a study which had been sitting in Governor Arnold Schwarzenegger's office for close to a year and a half. The study titled "Cost of State Regulations on California Small Businesses Study" can be downloaded here by clicking here: Download CA Small Business Study ~ September 2009.pages. The study finds that the total cost of regulation to the State of California is $492.994 billion which is almost five times the State's general fund budget, and almost a third of the State's gross product. The cost of regulation results in an employment loss of 3.8 million jobs which is a tenth of the State's population. Since small business constitute 99.2% of all employer businesses in California, and all of non-employer business, the regulatory cost is borne almost completely by small business. This study provides the most comprehensive and complete analysis of the total regulatory burden in California. We encourage everyone doing business in California to click on the above link to download the report and then contact your California Assemblyman and State Senator asking them to support Assemblyman Dan Logue and his Economic Recover Group which is trying to save California. Oppressive regulations are destroying California and it's time to say NO to the special interests which have been controlling this state for decades.
ECONOMIC RECOVERY
RESTORE CALIFORNIA
ASSEMBLYMAN DAN LOGUE
September 17, 2009
Members of the Economic Recovery Group,
In 2006, Assembly Bill 2330 (authored by Assemblyman Juan Arambula, I-Fresno), was passed which required a study to be completed and returned to the legislature on the cost of state regulations on small business in California. This study was completed and turned into the Governor’s office in December 2008 and held there, despite repeated efforts to have it delivered to the legislators, which the bill required.
No study has ever been conducted in California demonstrating the costs of regulatory burdens on small business, despite the fact that small businesses provide the majority of Californians with jobs. In fact, “small businesses continue to bear a disproportionate share of the federal regulatory burden,” according to the U.S. Small Business Administration.
On September 1, I met with a member of the Governor’s staff about the disclosure of the report, and requested a copy from him. I was told that it would be released.
Today we received the following email from a member of the Governor’s office:
“We are in the process of finalizing our internal procedure for release of the report, pursuant to both my pledge to the Assemblyman [Dan Logue] as well as the NFIB’s recent PRA request. I suspect the report will be available today or tomorrow.”
This is a time when Californian’s need jobs more than ever, and this study will be revealing as to why business may be struggling. I will keep you updated as to the progress made in obtaining this report.
Sincerely,
Dan Logue, Assemblyman, 3rd District