Transcript of Governor Schwarzenegger Announcing the Establishment of
the Office of Economic Development
SECRETARY BRADSHAW:
Good morning, everyone. Let me be the first one to officially welcome you to the Governor's Office of Economic Development. (Applause) My name is Vickie Bradshaw and I'm California Secretary for Labor and Workforce Development and I'm going to introduce a few people before we get started. Robert Rivinius, president and CEO of the Building Industry Trade Association; (Applause) Patricia Fong Kushida, president and CEO of the California Asian-Pacific Chamber of Commerce; (Applause) Steve Gándota, Sacramento Hispanic Chamber of Commerce; (Applause) Juan Alday, director of the Latin Business Association; (Applause) Ken Macias, the chairman of the California Hispanic Chamber of Commerce; (Applause) Stuart Drown, the executive director of the Little Hoover Commission; (Applause) Wayne Schell, the president and CEO of the Association of Local Economic Development; (Applause) Danny Curtin, the director of the California Conference of Carpenters; (Applause) Some of them are buried deep in the back. Aubry Stone, the president and CEO of the Black Chamber of Commerce; (Applause) Bill Dombrowski, the president and CEO of the California Retailers Association; (Applause) Edwin Lombard, board member of the Black Chamber of Commerce; (Applause) Malaki Seku-Amen, the legislative advocate for the California State Conference of the NAACP; (Applause) Linda Adams, the Secretary of Cal EPA; (Applause) a couple other cabinet members are tied up at the moment. Bill Leonard and Teri Takai - ah, we found him. Bill Leonard is making his way up. And Undersecretary Will Brown of the California Department of Food and Ag. (Applause)
And I welcome a lot of other association members, chamber members, who have made their way here today to help us celebrate what a lot of us have thought would be an important step in California's economic future and that is a single entity for California's local economic development interests. A lot of us have thought of that for a long time; now is the right time and this is definitely the right place. California businesses, California workers, California communities and California as a whole need a single entry, a single source for economic development information on programs and services, all with the purpose of bringing more capital, more companies and more jobs to California.
So we couldn't be prouder than to be here today. I know I speak for myself as well as my other cabinet members, particularly Secretary Adams, Secretary Leonard, Secretary Bonner and Chief Information Officer Teri Takai and Secretary Kawamura when I say that we couldn't be prouder to be part of the creation of this new office and we look forward to its many successes in the future.
Now let me introduce to you the man who made this all possible. I couldn't be prouder or more privileged to introduce the governor of the great state of California, Arnold Schwarzenegger. (Applause)
GOVERNOR SCHWARZENEGGER:
Thank you very much, Vickie. What a great secretary she is and I love traveling up and down the state with you.
SECRETARY BRADSHAW:
Oh, we have been.
GOVERNOR SCHWARZENEGGER:
To make sure that we promote job creation and all of those things. And I'm also - not only are you a great secretary but you're good at introducing everyone so I don't have to do it now, so thanks very much. But I want to thank all the secretaries and all the leaders of the various different business organizations and chambers for being here today.
I think that this is really a great day that we are celebrating here, the opening of the Office of Economic Development. I think it's about time that we have done this. We have had a website for a while to do exactly that but I think it's great to have a physical location here and to have all of these people work together. I think that what we want to do here is to let the business community in California and around the world, actually, know that from today on it will be easier to do business in California.
We are going to make it simpler and painless to do business here and this is why this morning I signed an executive order to launch the Governor's Office of Economic Development. I think that this is a great, great step forward to make it easier for businesses to come here and to do business. It means cutting through the red tape and streamlining state bureaucracy, basically. We're coordinating more than 100 programs across 28 state departments and creating basically one office, a one-stop shop, a concierge service, so to speak, in order to make it easy.
Just two months ago the Little Hoover Commission has recommended exactly to do that and our Performance Review Commission also - the California Performance Review - has also recommended that several years ago. Finally we're getting around to doing it. Also, there are legislators now that are talking about the same thing, so we hope and we are looking forward to working with the legislature to go and do this actually permanently so that for decades to come California businesses can benefit from that.
We are doing it through existing resources, which is very important, because we don't want to incur extra expenses now since we have a budget crunch and we have a limited amount of resources. So we're doing it through existing resources. We're all going to work together and we're all going to go and help and pull all the departments together.
In my State of the State Address I talked about it, that it is the most important thing for our administration, to create jobs and to help rebuild the economy and that means to help businesses come back and expand and so on and this is all part of that. And I think that we have been having great success in passing legislation to stimulate our housing industry or our green industries and we are looking forward to getting more job creation bills down from the legislature in the future. We know that when we jump-start the economy you create those jobs and you put Californians back to work.
And that is exactly what we are doing here with this new Office of Economic Development. We want to be, as government, part of the solution, not part of the problem. And the reason why I'm saying that is because too many times when you ask businesses, "What is your biggest problem to do business in California?"
They always say, "Government." So government has to be a partner in prosperity rather than to be an obstacle to success. And so we are going to help businesses, no matter what we need to do, if it is to help them with permits, with licensing, with location scouting and assistance, with building codes, with zoning and the list goes on and on and on.
I myself have done business in many different areas, if it is mail-order business, restaurant business, production company, real estate business. I've been in many different businesses and I know how difficult it can be to get a business started - even though, let me tell you, much easier than anywhere in Europe, because I come from over there, so it's no comparison. But it is still difficult to do business here and so this is why this office was something that I welcome and I have been behind 100 percent.
And to make sure that we are promoting California nationally and globally, we also have a website, as I said and this website has been up. This is www.business.ca.gov, so anyone from around the world, if you want to do business here - and I know, I've traveled around the world enough to know that there are just so many people and so many businesses that want to come and do business here. I remember just recently we were in the Mojave Desert to talk about permitting for solar plants and there were companies there from all over the world that are trying to get permits in the Mojave Desert to build solar plants and to get us the extra mega-wattage that we need. So I know that people from around the world are interested in doing business here, especially also from outside the state.
We are a dynamic place to do business, we always lead the way and today it's just one more step forward in that direction. I myself will do everything I can to continue working with the legislature and with all of you to make sure that our businesses come back and they can expand and hire more people. I also will make sure that if the legislature sends me any job-killing bills that I will veto them, because there is no room for any of that at this time or any time in California.
And so now I want to make sure that you meet actually the person that will be running this whole shop here and this is, of course, Joel Ayala. Joel Ayala is, of course, a long-time advocate for business. In fact, he was named the Minority Small Business Champion of the Year - he has the champion ring right on there. (Laughter) He has been also president and CEO of the California Hispanic Chamber of Commerce and he has been a great, great friend to business and a great friend of mine. So please welcome Joel. (Applause)
DIRECTOR AYALA:
Thank you, Governor. And first and foremost, I hope to serve as your head concierge for this concierge service. I want to thank you again, Governor, for your leadership on the economy. Nothing could be more critical today than helping businesses to create jobs.
I'm honored to have been asked to serve as director of the newly created California Governor's Office of Economic Development - GoED. The GoED team and I will help to leverage the state's resources to benefit those who want to keep, start, or create a business in California. As many of you know, this is tough economic times but our entrepreneurial spirit is alive and well. No matter how hard the economic times may be, we continue to believe in California and that's why you are here, that's why our partners are here, because you're believers.
California is one of the largest economies in the world with a gross state product of over $1.8 trillion. This state must jump-start the economy to avoid losing more ground. We will not waste any opportunities to create jobs, increase revenues or raise California's standard of living. GoED stands ready to help you connect with the government resources you might need to survive and thrive in this economic climate. Your business is our business. Inspiration, innovation and opportunity will remain and continue to be part of California's dream once again. We will connect you with the resources that will help you to succeed. That's why we're excited about joining the Governor's Small Business Conference later on this year. It's just another opportunity to showcase California resources and how California can work for business.
To obtain more information, as the Governor mentioned, please go to the website www.business.ca.gov or call the toll free number 1-877-46 - 345. I'm sorry, 345-GoED - 345-GoED. 1-877-345-GoED. In the coming weeks we'll reach out to small businesses, large corporations, investors, academics and others to figure out how to make this job easier for the state of California. We want to create strategic partnerships.
Speaking of partners, let me take a moment to thank the entities that have played a role in economic development and who are working to make this office a reality. Business, Transportation and Housing, the State Consumer Services Agency, California Labor and Workforce Development Agency, California Department of Food and Agriculture, the Office of the Chief Information Officer, California Environmental Protection Agency, the Office of Planning, Research and many others to come.
Lastly, I want to thank our economic partners, Astone and Clear Channel and CRA Custom for this phenomenal banner and launching of this event. Thank you. (Applause)
QUESTIONS/ANSWERS:
QUESTION: So you're getting people to come, in this instance to come into California. What is this office going to do, what incentives are there, to keep the businesses here? I'm a small-business person, I'm in real estate and lending. My husband is a small contractor. Our businesses are completely, at least 80 percent down. We're seriously thinking of moving out of this state. How can this office help us? My family, my kids, my friends live here. I don't want to leave. But you know, if I can't make money, if I can't live the standard of lifestyle that I'm accustomed to, what is this office going to do to help me?
GOVERNOR: Well, first of all, let me just say that we are very excited that we have so many people that actually want to come to California and do business here in California because, as I said, it's the most dynamic place to do business, it's the most international, it's the most creative. And as you know, we have the hardest-working people and really the best and the most geniuses here, the most innovative people, I think, in the world.
Now what is important is, since the private sector is so great, we want to make sure that the public sector is as great. And this is why I mentioned in my State of the State Address that the most important thing now, since we have an economic decline - we have experienced it over the last two years worldwide, not just in California - that we as the eighth largest economy in the world we shouldn't be sitting there waiting for the world economy to come back. It's our responsibility to go and do everything we can, through job creation legislation, to stimulate the economy again and to give incentives.
And that's what we have been doing. We have laid out a program, a five-step program of the things that we want to have changed and laws that we want to have passed. The legislators have been good partners with that; they have come through. Already they have sent me legislation down to help with the housing market, for instance, or with the green technology. We want to now expand and to have, for instance, a tax exemption of all technology equipment and things like that.
What we want to do is make it easier. This, this office, is not to give incentives for businesses as much as to help you get started, because sometimes people have to go through this maze and they cannot figure it out, especially when you're from outside the state and you're not familiar with California. They don't know. I have friends that tell me this all the time. They say, "Look, I just came, I'm from Texas, I want to open a restaurant. But it's so complicated to find your way around in California."
So what we want to do is have a one-stop shop. This is what this is, a one-stop shop, so if you now decide, for instance, that you want to go and move or you want to expand, you come to this office here and you will have all of the resources here and all the people power and the minds coming together from all the different departments within our agencies, coming together and saying to you, "You don't have to go any further. This is the office, this is the phone number, this is the website. We're going to help you." So that's the way it's going to work. So it's all positive today. From here on it will be easier to do business in California.
QUESTION: Legislation just sent to your desk within the last half-hour or so (Inaudible) those who have lost homes due to short sales and foreclosures. What is your intention with the bill and could you comment on the significance of the (Inaudible)
GOVERNOR: Well, as you know, they sent it to me before but it was polluted with other things that they have included that I didn't want to sign. And so I think they always test you with those things. And I made it very clear that I'm for signing this bill if it doesn't have anything else in it. And so we're going to sign that, without any doubt, because we want to give people the relief that they need and we want to do everything we can - as we want to do for businesses, also for homeowners, for people that are in this mortgage crisis and they got caught up in that or have paid too much for their home because it was the height of the market and now they have to maybe sell and incur a loss and so on. So we want to be helpful in every way we can, so we will sign it.
QUESTION: I'm sorry, Governor but the bill has some tax increases and decreases in it. Are those the kind of things -
GOVERNOR: Like I said, I just came from down south, from the border region where we had the earthquake, so I have not been in my office this morning, I've not read the details of the bill. But I think, as I said, if this legislation doesn't have any of the other things in there and it's just clean, I will sign the bill.
QUESTION: Governor, getting back to the business center - we get these studies coming out. California ranks 47th in business-friendly environment and really high in taxes. What good is one-stop shopping for news when all the news is bad news?
GOVERNOR: All of the news is actually good news, because first of all it's good news that we see signs of the economy coming back. I think there are a lot of businesses, as I have traveled up and down the state, that have talked about that they want to expand again and they want to hire more people, especially in the green sector.
I think that the good news also is that California is the best place to do business. It's not always the cheapest place to do business but do you make your decisions just based on what is the cheapest place, or what is the best place? So I think that a lot of people are doing business here because it's the best place to do business. And we all know that property is more expensive in California, we all know that energy is more expensive than in other states. But you can do more business, you can do more growth, there are more revenues coming in and so on.
So there are a lot of great, great things in California. And like I said, you won't find anywhere else in America - and I've been to all 50 states - you won't find anywhere in America hard-working people like in California and innovative people like in California. I mean, Californians are extraordinary. It's a very unusual breed of people. And this is why people from around the world have this need to come here. They first visit, then they come back and they come back and then all of a sudden they live here. So why is that? You don't hear people having this same drive about other states.
So I'm very proud of California, I'm proud to be the governor of California. And as everyone else in the world, we have gone through economic downturn and we are going to do everything we can to be a partner in prosperity for businesses and to do everything we can to go and to help them with expanding their business and hiring more people.
QUESTION: Governor, how are you paying for this new program? And are you closing any other programs or transferring resources to this one?
GOVERNOR: Well, like I said, we are very sensitive about, you know, the resources and about where does the money come from, so it's from existing funds and resources and we are not using any new moneys for this. We cannot afford to use any new money; we have a $20 billion deficit. And so we had to get very creative and there are a lot of people that have come together from different departments and areas within government and from outside that are going to work together on this. But we're going to do it with no new resources.
QUESTION: Did you have to close any other programs (Inaudible)
SECRETARY BRADSHAW: We transferred. For example, CalBiz was in my agency. They're now over here. We transferred them from my agency to this office, so they are now a proud member of the GoED team.
GOVERNOR: That's why I said I like Vickie Bradshaw, because she is very creative. (Laughter) And she is - I'm telling you, I've worked with her now for six years. She is as eager of creating jobs - and it's really too bad that we were hit with this economic crisis, I tell you, because when I came into office in 2003, within a short period of time, within two years, we had gained hundreds and hundreds of thousands of new jobs during those first three years. And then all of a sudden we were hit by this economic crisis and then it went down again. So now we have to slowly build it back up again, the economy. And the key thing for us is not to wait for the world economy to come back but to do our job and to do everything we can, whatever power we have, in order to help businesses expand again.
QUESTION: There's a drought in effect in California but all the water that built up in Shasta, I think a lot of people are wondering if we're still facing drought conditions. And by extension, some people are wondering - they thought the drought was something that would build support for your water bond this fall.
GOVERNOR: Well, you know, with this - I mean, before I got this job I always was wondering why is it that - you know, it was raining for a month straight and yet they still talk about the drought. I'm talking about seven years ago and 10 years ago and 20 years ago.
And then I got this job and I started to learn about water. With one winter of having more snowfall, you don't take care of the whole problem. The reservoirs in some places are down 75 percent. Now they have come up to being down 50 percent but not full. So therefore there is still a major, major problem. We have gotten a lot of help from nature to fill up some of the water but we still have a drought condition.
And we are very fortunate that we have worked and put a lot of pressure on the Obama Administration, on the federal government, to give us more water also. They have become, you know, really good partners and have committed themselves to give us more water, especially for the Central Valley.
And so we are going to go and work our way through it but there is still the need of a lot more water for groundwater, to refill the groundwater and also all the above the ground water storage.
Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
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