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$50 Million for State Infrastructure Bank

     Governor Pete Wilson has unveiled a $50 million proposal to fund the California Infrastructure and Economic Devlopment Bank as part of his 1998-99 state budget. The bank is designed to assist local governments by providing new financing for necessary public improvements to support economic growth. The Governor is also proposing a $200 million General Obligation Bond Program for additional funding to the Infrastructure Bank. The General Obligation Bond proposal is being carried by Senator Mike Thompson (D-St. Helena) in Senate Bill 847.
     Created in 1994, but not yet funded, the Infrastructure Bank has, in the interim, approved issuance of $168 million in Industrial Development bonds (IDBs) for 23 job-creation projects throughout the state's California Economic Development Financing Authority (CEDFA) program. Most recently, the Bank served as issuer of $6.022 billion in Rate Reduction Bonds for pacific Gas & Electric Company, Southern California Edison, and San Diego Gas & Electric Company as part of the state's effort to deregulate the electric utility markeet. The Bank is chaired by the Secretary of the California Trade and Commerce Agency. The State Treasurer and the Director of the Department of Finance ar e the other Board members. The California Infrastructure and Economic Development Bank is administered by the Trade and Commerce Agency.


State Mega-deal Includes Tax Cuts

     A number of bilsl passed in the final moments of this year's legislative session will significantly affect next year's budget deliberations. The so-called “mega-deal,” includes:

  • A nearly $1 billion tax cut;
  • An overhaul of the system used to fund the state's trial court system;
  • A commitment from the Governor to negotiate with state employees over a pay increase; and
  • A reduction in student fees at the University of California, State Universities and community college systems.
     This year's tax cut produced a diverse array of winers including families claiming the dependent ax credit, aerospace firms, home sellers realizing the substantial gains and maritime freight operators. The mega-deal included a six-bill (SB 5, SB 455, SB 1233, AB 366, SB 1042 and AB 1217) tax package that will reduce state revenues by $931 million at full implementation, $166 million in the current year, and $683 million in 1998. The package:
  • Increases the dependent credit by $52 in 1998 and an additional $102 in 1999.
  • Conforms to a recent federal tax change that allows taxpayers to exclude up to $250,000 (single) or $500,000 (married) in capital gains from the sale of principal residence.
  • Indexes the phase out levels for the Alternative Minimum Tax (AMT). This change will prevent a number of middle income taxpayers from becoming subject to the AMT.
  • Conforms to recent federal tax changes creating a new category of “back-loaded” IRAs, allowing the use of IRAs for educational expenses and increasing the income limit for IRA contributors.
  • Adds an additional Enterprise Zone with criteria designed to favor Tulare County.
  • Expands eligibility for Subchapter S corporate status in conformity with federal law.
  • Extends the sales tax exemption for bunker fuel through December 31, 2002.
  • Expands the benefits available under the state's Research and Developmetn tax credit in partial conformity with changes in federal law.


TeamCalifornia Announces Co-op Marketing Program

Self-Made in California
     April of 1998 will conclude a run of 14 “Self-Made in California” 30-minute documentaries on the CNBC Cable Network, and 14 three-minute features on United Airlines, including two months of California EOs talking about the importance of being a California company in the global marketplace. Additionally, 12 four-color, two-page spread advertisements ran in Forbes Magazine. Several EDCs took advantage of the pooprtunity presented by Trade and Commerce to run 60 second commercial in the Self-Made shows.

California Tomorrow Today
     “California Tomorrow Today” will target business leaders, the investment community and the high-tech industry. Three minute airline features on United Airlines, 16-page special sections in Forbes and Forbes ASAP, and an investor-friendly web site are the media components, which wil report on the exciting new technology emerging from the world's high-tech renaissance state, and the companies who are behind that technology.
     The campaign will begin in May, 1998. “TeamCalifornia” members will be provided an opportunity to participate in a co-op two-page four-color spread with the Trade and Commerce Agency at a very favorable rate which has been pre-negotiated with Forbes. A brochure will be available soon with all the details of the program.

The California Experience
     A signature event of the California Sesquicentenial celebration, “The California Experience” is a full-length, 40-minute IMAX film and 7,500 square foot multi-media traveling exhibit that will showcase California during a five year global tour to 32 key international cities. TeamCalifornia Participation: Edison Internation has promised a general presence for “TeamCalifornia” within the context of the exhibit.

Military Base Re-Use Program: “The Great California Land Grab”
     A print advertising campaign to promote real estate development of California's converted military bases statewide will be extended for a second year. TeamCalifornia Participation: Members will be provided an opportunity to participate in a co-op ad in the insert as well as special regional directory listings available at a very favorable rate.

Master Contracts with Publications
     Trade and Commerce has negotiated a volume discount in key economic development and general business magazines for public-sector advertisers carrying a TeamCalifornia logo in their ads. These rates are significantly lower than those negotiated individually, because they are based on the total volume of economic development advertising in the State. So far master contracts have been negotiated individually, because they are based on the total volume of economic development advertising in the State. So far master contracts have been nogiated with thos eall major business and site selection magazines and those discounted rates are available now.