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February 21, 2013 (916) 319-2027
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Assemblymember Campos Introduces Jobs Bill
AB 690 Targets Areas of High Unemployment
SACRAMENTO – Assembly Speaker pro Tempore Nora Campos (D-San Jose) introduced Assembly Bill 690 today, a job creation measure that uses tax increment financing (TIF) to stimulate local hiring and reduce unemployment.
“Unemployment is the new blight,” Campos said. “Though our economy is showing signs of improvement, there are still 1.8 million Californians who are looking for work. California needs a program to help local communities attract and keep jobs. I developed AB 690 in partnership with leading business organizations and economists, such as the Los Angeles County Business Federation (BizFed) and Larry Kosmont, to allow local governments to use tax increment financing in public-private partnerships to create new jobs.”
AB 690 is designed to expressly create jobs in California through the establishment of Jobs and Infrastructure Districts, which will provide incentives to the private sector to create new jobs and provide workforce training.
Tax increment financing is one of the most powerful financing tools available to state and local governments for encouraging economic development. In contrast to the 48 other states that have a TIF program, California lost this mechanism when redevelopment was eliminated in 2011. When applied to job creation, TIF could create funding for jobs at a new supermarket, at a once empty warehouse retrofitted into a manufacturing facility, or a new local restaurant in a distressed neighborhood by borrowing against the future increase in the property tax revenues in these areas.
With statewide unemployment at 9.7 percent, AB 690 will directly benefit key job sectors including construction, manufacturing, retail and other vital industries.
AB 690 also includes built-in accountability tools as well as objective, measurable results that will directly address high unemployment by requiring 10 permanent, full-time prevailing wage jobs to be created for every $1 million invested. In addition to adding jobs and strengthening our economy, AB 690 also provides a long term solution to the state’s structural budget deficit.
The 27th Assembly District includes roughly half of the City of San Jose in Santa Clara County – the tenth largest city in the nation, and third largest in California. Assemblymember Campos served as a San Jose City Councilwoman before she was elected to the Assembly in 2010.
Tracy Rafter, CEO
BizFed, Los Angeles County Business Federation
A Grass Roots Alliance of Over 100 Top LA County Business Groups
Mobilizing More Than 250,000 Businesses