SECTION ONE: Facilitate New Business / Create New Jobs
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The availability of decent jobs for residents of the riot-affected areas and other economically distressed communities which did not participate in the civil unrest would solve a great many of the area’s problems. This accounts for the federal and state early emphasis on efforts to allocate funds for job creation, even if most -of the jobs are for the summer only. Unfortunately, there is a shortage of well-paying and permanent private sector jobs available, and the public will and the public resources are not sufficient to create a substantial public sector job program. However, important steps can be taken to help create new jobs and new entrepreneurs. Some public officials at both the state and federal level are emphasizing the role of such means as enterprise zones in job and new business creation. The Senate Special Task Force takes no formal position on the effectiveness of this approach. Rather than cover old ground in a highly charged debate, the Task Force focuses on other strategies. Recommendation/ Action #1
As economic conditions have continued to deteriorate, there has been increasing discussion in the State Capitol about establishing some type of economic development bank or 'Bonds for Jobs" program. At least one organization, the California Association for Local Economic Development (CALED). submitted a recommendation to Peter Ueberroth's Council on California Competitiveness during its deliberations that such a program be created. Basically a bond authority with expanded powers, EDFA would be structured in a manner that would facilitate the active and voluntary participation of large pension funds in some portion of the authority's development projects. In addition to the revenue bond funds, general obligation bond funds and pension funds, federal grant . dollars, money from the state's Pooled Money Investment Account, and other funds could be directed to EDFA. Overall, the program would allow the state to support economic development, including that in struggling communities. Specifically, EDFA funds could be used:
The Senate Special Task Force has a draft of legislation to implement this bond/economic development authority. and members of the Task Force support its creation. Recommendation/ Action #2
The Senate Special Task Force strongly supports the efforts of local residents to form new businesses. There are two small business development corporations on the outskirts of the impacted area, but the location of these centers and the lack of awareness of these centers on the part of community residents constitutes an additional obstacle for potential entrepreneurs in need of technical or financial assistance. If the efforts of Peter Ueberroth's Rebuild L.A. or another organization do not result in the establishment of such a center, members of the Task Force will support the creation of one by the Department of Commerce. Recommendation/ Action #3
There are a number of well-established and larger businesses and financial institutions in the SCIA area (and in other impoverished communities). The Task Force believes that it is not unreasonable to assume that some of the "socially responsible" mutual and investment funds may be willing to invest in these businesses that have a record of profitability. Public agencies, including the state, should foster these links. Recommendation/ Action #4
Following the passage of the federal Community Reinvestment Act, federally chartered financial institutions have made new efforts to ensure that a larger proportion of their assets are returned to local communities in the form of local investments. The Senate Special Task Force will pursue implementation of a state version of the Community Reinvestment Act, and we urge other legislators to join us in sponsoring legislation. Recommendation/ Action #5
A unique public/private partnership has developed in Los Angeles that is attempting, through various means, to foster an environment more favorable to the establishment of new businesses. Local public officials, community leaders, "public spirited" representatives of financial institutions, and other representatives of financial institutions seeking to meet their obligations under the federal Community Reinvestment Act, have joined forces and are working to implement 13 projects identified as needed for the SCIA area. They hope to create model programs that will be transferable to other communities. The original 12 projects of the IACRC are: 1. Small Business Expansion Loan Program
In addition, the IACRC has begun efforts to establish a multi-bank sponsored for-profit community development corporation to provide "gap" and other financing for small businesses. The Senate Special Task Force commends those involved with this new, innovative, and comprehensive attempt to respond to the needs of this community for technical and financial assistance. Members of the Task Force urge local officials to take all appropriate and necessary steps to collaborate with their partners in this effort in order to ensure its success. The Senate Task Force will monitor this endeavor to learn what may be accomplished through voluntary efforts to assist a local community with such needs. The Task Force especially notes the promise represented by announced support for a multi-bank sponsored community development corporation. Finally, the Task Force asks IACRC to note the record of the Southshore Bank in Chicago, Illinois for an example of the positive impact a single financial institution can have on a local community. Recommendation/ Action #6
The Job Corps is a training and employment program administered by the Department of Labor to alleviate the severe employment problems faced by disadvantaged youth throughout the U.S. The program was originally established in 1964, and it is currently authorized under Chapter IVB of the Job Training Partnership Act. The program is widely recognized for its high success rate with at-risk youth. Contracts to operate many of the Job Corps Centers are awarded to private sector organizations, thus differing from traditional methods of delivering employment and training services that rely on state and local government entities. The Jobs Corps has both residential and nonresidential components and providers are required to be able to support a 24-hour-a-day, seven-day-a-week program. It uses a comprehensive set of services to achieve its goals, including counseling, recreation, discipline, and vocational and academic training. Social skill development is a major emphasis. Young men and women between the ages of 16 and 22 are eligible. Because of the very high success rate, there is a large demand for the limited number of slots in the program. The Senate Special Task Force is authoring a letter to the California Congressional Delegation asking the Members of Congress to support additional funding for this program. Recommendation/ Action #7
There are a number of important private-sector-led efforts to improve California's overall competitiveness that have earned the respect and support of the Senate Task Force. Members of the Senate Task Force believe that if these organizations are successful in implementing many of their strategies, the economy of Los Angeles and the economy and lives of the residents of low income areas will also improve. The primary interest of the Los Angeles Aerospace Task Force is in supporting the vital aerospace and defense industries that form such an important part of the regional economy, and in assisting the conversion and redeployment of the physical capital and human assets of those firms forced into down-sizing. The California Council on Science and Technology is sponsoring "Project California," a Joint business/labor/academic/ government scheme to help California become the world leader in developing, marketing and using environmentally safe advanced transportation and telecommunication systems. The "Factory of the Future" project is highlighting some of the new means of organizing the workforce, production, and supplier relationships that a number of California manufacturing firms are using to compete - most methods emphasizing employee involvement and teamwork. Organizers are also trying to increase business/government cooperation. This undertaking is being promoted by the California Manufacturers Association, various labor unions, faculty of UCLA and the California Legislature. It is beyond the scope of this report to list all the recommendations of these three organizations. However, the members of the three projects are engaged in work vital to the regional and the state economy. Several members of the Senate Task Force are already involved in providing support for one or more of the groups' efforts. Now this support must increase. The Senate Task Force is contacting representatives of each of the projects to determine how the State Legislature may be of further assistance and whether members of the Senate Task Force might facilitate additional cooperation among the three efforts. Members of the Senate Task Force are offering representatives of the projects a forum through the hearing process in Sacramento if project officials are interested. |
Continue to Implement a Multicultural Human Relations Strategy to Heal Community Breaches
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New Inititatives for a New Los Angeles