For those that don’t operate a business in California like I do, I was surprised today to learn that Sacramento State College of Business Administration and Center for Small Business have complete a study of the AB32 Greenhouse gas law, and its impact on California small businesses.
The law requires that by 2020 the state’s greenhouse gas emissions be reduced to 1990 levels, a roughly 25% reduction under business as usual estimates. The California Air Resources Board, under the California Environmental Protection Agency, is to prepare plans to achieve the objectives stated in the Act.
Will I keep my business in California with a tab like that? Probably not. It would be economic suicide for me. – Anthony
California Small Businesses Face $50,000 Cost from State Implementation of AB 32
from PR-inside.com
A new study released today found that small businesses in California will pay an additional $49,691 as a result of the California Air Resources Board’s implementation of AB 32. Citing severe economic impacts, a coalition of small business organizations called today for the suspension of the regulatory proceedings to implement California’s greenhouse gas program until the report’s findings are analyzed
and mitigation measures are added to the state plan.
The report concluded that when the program is fully implemented, the average annual loss in gross state output from small businesses alone would be $182.6 billion, approximately a 10% loss in total gross state output. This will translate into nearly 1.1 million lost jobs in California. Lost labor income is estimated to be $76.8 billion, with nearly $5.8 billion lost in indirect taxes.
“We support the state’s efforts to curb greenhouse gas emissions, but we are very concerned that these costs will apply disproportionally to California small business. Consumers will be hurt and the environmental goals will not be achieved,” said Esteban Soriano, Chairman of the California Small Business Association and a founding member of the California Small Business Roundtable.
The analysis of the state Scoping Plan was led by Sanjay Varshney, Dean of the College of Business Administration, California State University, Sacramento and Dennis H. Tootelian, Ph.D., Professor of Marketing and Director, Center for Small Business, California State University, Sacramento. The study reveals that when the plan is fully implemented, California families will be facing increased annual costs of $3,857.
Varshney explained that the study’s cost analysis was based on the California Air Resources Board’s own findings, which revealed significant cost increases. The study’s findings are consistent with the Peer Review analysis that CARB commissioned, which also concluded that the cost of the AB 32 Scoping Plan would be significant, and that CARB had significantly underestimated these costs.
“Given California’s current economic plight, the state must refrain from imposing new fees on taxpayers to pay for an expanded bureaucracy,” said Michael Shaw of the National Federation of Independent Business. “When Assembly Bill 32 authorized this program in 2006, CARB promised to develop a greenhouse gas plan that would provide benefits to small business, not bankruptcy.”
The study also found that in order to cope with the increased costs generated by the AB 32 program, consumers will be forced to cut their discretionary spending by 26.2%.
“Californians will be getting less and paying more. How can the small business community survive in a political climate so determined to put us out of business,?” asked Griselda Barajas, owner of Tex Mex Restaurant in downtown Sacramento, where the study was released.
“Many lawmakers who enjoy our tacos will see a significant increase in their daily lunch bills if these problems are not addressed,” said Barajas. “All of the Capitol community folks who dine at Tex Mex will have to bear the burden of an unfunded mandate placed against my business.”
According to the authors, the study utilized IMPLAN, a widely used economic modeling program that has more than 1,500 active users in the United States and internationally. These include clients in federal and state government, universities, and private sector consultants. Joining the California Small Business Roundtable and the National Federation of Independent Business at Monday’s event were the California Hispanic Chamber of Commerce and the Sacramento Black Chamber of Commerce.
For a copy of the study, please contact Alison MacLeod at 916-225-6317 or amacleod@ka-pow.com : mailto:amacleod@ka-pow.com .
For California Small Business AssociationAlison MacLeod,
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FYI, I found a link to the study provided by its authors at:
http://www.sbaction.org/get_resource.php?table=resource_kmqap4_18z4ys&id=kmqaq1_1ed1wo
This was in an article attributed to the study’s authors that had a slightly different emphasis than the one you’ve quoted above. Not less chilling, mind you, just different. That article was at:
http://foxandhoundsdaily.com/blog/sanjay-varshney-and-dennis-h-tootelian/new-study-finds-ab-32-scoping-plan-imposes-staggering-co
I agree with Roger Sowell: repeal AB32 immediately if not sooner.
Okay, after I posted I did some more searching at the census website. It seems California’s population increase is only due to natural births and international migration (read aliens both legal and illegal). About 144,000 people out of California to other states between 2007 and 2008. But about 196,000 people from other countries moved in. With that, plus 325,000 natural increase, that gives your number.
So people are moving out of California. It is just that more non-Americans are moving in and people are being born. I would expect this number of people leaving to rise greatly due to this idiotic law.
That light you see at the other end of the tunnel is the on coming freight train called cap and trade. Best get off the tracks or figure out how to stop the train.
Larry
The long and short of it there are three choices.
1. Vote the bastards out.
2. Move
3. Armed insurrection.
On a positive note, this is one way for California to stop their illegal immigration problem. I suppose now they will have to build a wall to keep businesses and people in the state.
Anthony I know you’re a gentleman and perhaps my suggestion is a bit too crude for you, but here it is anyway: Move out of California, join the Libertarian party and tell the California government to stick it where the sun don’t shine.
REPLY: I’m also a pragmatist. -A
Iowahawk says it all about California . . . may it rest in peace . . .
“Fans Flock to Mourn California, 1849-2009
LOS ANGELES – Millions of fans from around the globe gathered along Sunset Boulevard to pay final respects to California today, as a slow moving funeral procession transported the eccentric superstar state’s remains to its final resting place in a Winchell’s Donuts dumpster in Van Nuys. The self-proclaimed ‘King of Pop Culture’ died last week at 160, in what coroners ruled an accidental case of financial autoerotic asphyxiation. The death sent shock waves across the world and sparked an outpouring of grief by rabid fans.
“I don’t care what the tabloids and the Wall Street Journal say,” said a weeping Illinois. “I still love you, Cali!”
The 640-mile long funeral parade route was lined with flowers, candles, teddy bears, and IOUs from millions of mourners and debtors who made the somber journey to watch the passing of the state that had once ruled the box office and industrial charts. Among them were current chart-toppers who cited California as a key influence.
“If it wasn’t for California, I wouldn’t be where I am today,” said Arizona of Westside 3, the popular sunbelt trio who recently benefited from the late state’s generous gift of fleeing taxpayers and businesses. As a tribute to their mentor, Arizona vowed the group would start spending money “like crack-addled hip hop stars.”
“California’s financial and musical legacy will never die,” said band mates Nevada and Oregon.
At the official funeral service at the LA Coliseum, a grief stricken Washington, who teamed with California on several hit software and wine projects, had to be physically restrained from climbing into the deceased’s gold plated casket.
Similar emotional outpourings were the rule of the day. Stories – apocryphal or not – of the late state’s bizarre self-destructive behavior and fondness for molesting children did little to dampen the the flood of tributes from fans who preferred to remember California as America’s Sweetheart.
From a humble beginning as a water-poor remote Spanish mission outpost, California proved to be a precocious and talented child performer. It struck gold with ‘Sutter’s Mill’ in 1849, earning accolades and attracting millions of crusty bearded prospectors. Black gold soon followed with ‘La Brea Tar Pits.’ Unlike many child acts, California made a smooth transition to adolescence, scoring a major hit with ‘Agriculture’ in 1891.
Even a frightening bout with tremors did not stop the flow of hits. The 1915 megasmash ‘Hollywood’ broke all records, as did the wartime favorite ‘Aerospace.’ More recently, California topped the charts with ‘Tourism,’ ‘High Tech,’ and ‘Coastal Pretension.’
For a time it seemed as if the superstar could do no wrong, but behind the glittering facade of Disneyland Manor troubling signs of mental instability began to emerge. The state developed a well publicized drug problem during filming of 1967’s ‘Summer of Love,’ and briefly dabbled in strange religious cults. Under the influence of spiritual guru Jerry Brown, it began wholesale experimentation in exotic spending programs, eventual resulting in a traumatic 1979 stay at the Prop 13 Rehab Center.”
rtr @ur momisugly
http://iowahawk.typepad.com/iowahawk/2009/07/fans-flock-to-mourn-california-18492009.html
Actually, there is good news. Lincoln said, the best way to defeat a bad law was to enforce it strictly. These guys are enforcing all of this stupid stuff, people are going to get fed up with it, especially if the winters keep getting colder. I say a good hard winter 2009- 2010 all the people who voted for the climate change bill will look like idiots. Their only defense would be, I didn’t read the bill before voting on it. 2010 will be bad for the AGW, and 2012 if the minimum theory is correct should just about finish them off politically.
They cannot say that they haven’t been warned. Just like Obama figured it would be a slam dunk later to oppose the Iraq War. Anyone who opposes AGW today, will look great in the future. To me, that is very good news indeed.
Coalsoffire – “Since this stupid legislation is creating an unfair disadvantage for California, the only obvious solution is to impose the same conditions on all states. Problem solved.”
In a way this is already happening. Much of the “stimulus” money was really just a transfer of wealth to states that are in financial trouble, like California. Basically all of us are subsidizing California’s absurd effort to fight AGW.
Spreading the wealth, with stolen money?
Steve in SC – Add
4. Civil disobedience.
5. Repeal as violating “the laws of Nature and of Nature’s God” as mutually required by all States for equal standing in the Union.
6. Make solar energy cheaper than fossil energy.
I’m with Mike D and Ron de Haan, The proper approach is to call this what it is: Absolute unbridled stupidity. (My view) –> All references to “Carbon” anything must be accompanied with adjectives that will force a confrontational debate: Fantasy, eco-zealotry, absurd, hoax, ridiculous, pointless, unnecessary, false, etc. There can be no conciliatory appeasement on this issue. The data indicates this theory is flat out false. Confidence on the facts makes this possible, and confidence is what skeptics in congress and the business world lack to tackle this issue. This is why THIS BLOG should be mandatory reading for all members of congress either on the fence or already skeptical. They need an education to combat the monster that Gore hath wrought. Dana Rohrabacher, are you out there?
(yes, I’ve written him)
Anthony, may I suggest you simply pay the State of California taxes with an IOU. What’s good for the goose …….
This week the Economist’s cover for the North American edition had America’s Future—California v. Texas.
http://www.economist.com/printedition/displayCover.cfm?url=/images/20090711/20090711issuecovUS400.jpg
Fortunately, not all of Texas is like Austin, where green electricity was a very big deal.
http://www.statesman.com/news/content/news/stories/local/2009/07/12/0712greenchoice.html
Why does the population grow? california has some millions in cultures with high birth rates. california is a very attractive entry for immigrants. Many people move on. China is paying for it’s birth control. California is placing birth control on physical business. Software and service business of a non physical nature are hard to tax. If one has a virtual business, how can the government tax it other that revenue, income and healthcare. They can’t attach taxation to fuel or physical goods.
Wade: Does anybody know why California keeps gaining so many people despite high taxes, high prices, and stupid fact-less restrictive legislature? Why would anyone choose to live with that?
—
Yes, you found the “missing” people. Almost all are illegal aliens, the legal aliens are counted and regulated very, very closely through their entire paperwork process and are only a small fraction of who cross the border illegally. Add in anchor babies: Born here after the mother (already pregnant) walks over the border and into the delivery room. As soon as the anchor is born, the family must be allowed to stay.
Wade: I suspected those census estimates were not very accurate when you cited them. Your clarification helped. The gain in CA is from high birth rates (probably among the poor) and immigration.
Who would want to migrate in?
First, those who is worse off somewhere else and probably have relatives who have already migrated to CA. Immigrants draw immigrants.
Second, it is a known destination attracting those who have intended to come to America for years and for all that time have heard how great CA is. After all, our TV shows and media – seen abroad – does not spend much time telling people how great Alabama is. But there are ten shows a day about wealth and fame in Malibu.
At some point governments can accept reform – is the true sense of changing for the better. Or they can proceed with business as usual.
Printing money is a signal of the end – scrip and IOUs are weak cousins. Rule by martial law and by gangs of deputized thugs usually follows.
But countries are durable and hard to break. Sometimes recovery arrives in the most improbable guise, when all seems to have failed, and the politicians seem mad.
Allen63 (17:26:55) :
You wrote:
“I honestly believe that most legislators (at the State and Federal level) are mathematically illiterate. They don’t have a clue what these things cost. Or, they are crooked (the old “liar or fool” dichotomy).”
The problem with our legislators is that they are out of touch with the average citizen. Hey, what’s the big deal about paying an extra $300 per month? Your senators and representatives don’t know because it’s chump change to them. For us working stiffs, it’s the difference between paying all our bills or slowing sinking into bankruptcy. They’ll never figure it out and the next one you elect will be the same as the last. They don’t have a clue.
Just my opinion.
Jesse
PS) Ever seen some of the canned responses Senators send when you make comments on the Cap and Trade issue? Nothing but sound bites – that is if they respond at all.
Seems the plan is working. Drive out the riff raff with this barrage of doom and gloom then snap up coastal property and all of San Diego for a song.
David L. Hagen (18:58:43) : “…6. Make solar energy cheaper than fossil energy.”
Easy. Just pass a law stating that to be true. Ahnie will sign it. And let’s round off pi to 3.0 by statute, while we’re at it. And declare that underwear must be changed every half-hour and worn on the outside, so the state can check…
The sooner we vote these {insert your favorite plural hyphenated word here} out of office, the better.
Too bad there isn’t someone out there with a significant amount money to develop a cable channel to compete with the likes of the liberal cable and public TV channels. Kind of like a cable TV version of Watts Up With That? Something that would intellectual compete with all the liberal pseudo-scientific crap that is out there. Look at the success FOX NEWS has had competing with all the liberal mainstream media outlets. If only we could do same thing with weather and climate. I know it sounds farfetched but it doesn’t hurt to dream.
There’s a logical fallacy buried somewhere in the Cap & Trade theory.
I started work in 1980 and am still in the same job doing the same thing and driving the same distance for the last 30 years. Yet the emission of CO2 has risen by about 14% over that time. In order for society as a whole to reduce emissions back to a 1990 level, I will have to reduce emissions by about 12% in order for the numbers to balance.
I’m being penalised because society is growing, hello? Will this lead to resentment against immigrants?
From the book “The end of Prosperity” (a must read) is a description of a US Senate hearing in 1989 in which Senator Bob Packwood asked crystal ball gazers at the Joint Committee on Taxation to estimate the revenues from a 100% income tax rate on incomes above$200,000. (We all know that would be zero, at least it would be from me).
But these government yahoos plugged it into their computer models and replied, in the first year revenues would be $104 billion, 2nd year it was $204 billion and in the 3rd year $232 billion. “Enough to balance the budget.” Packwood was flabbergasted by the response. “Clearly no one will pay all their money to the government”.
This one scenario alone tells us how much disconnect the government bureaucrats and politicians understand about the economy and the human element of risk, reward, work and capital. Because they don’t understand, they will not even stop after they run the economy 6 feet into the ground.
Depopulating California may be the elitists’ goal.
Funny you should mention that. Carson City has been looking better and better to me lately.
REPLY: Ditto that