Governor Schwarzenegger delivers his fifth State of the State address today, with much of the speech expected to center around the state’s ongoing fiscal crisis.  The release of his proposed 2008 budget and formal announcement of a special legislative session to address these fiscal issues is expected Thursday. 

Once the special session is announced, the legislature will have 45 days to act, likely setting the stage for a protracted partisan debate over spending cuts and the specter of new tax proposals to meet the shortfall. 

The evening will conclude with a special tribute to Chris Anderson, outgoing President and CEO of the Orange County Register, given by David Hiller, CEO and Publisher of the Los Angeles Times.

OCBC praises Senator Dick Ackerman for his Orange County Register opinion piece last week supporting the proposed Margarita Energy Center near Ladera Ranch.  The county-approved San Diego Gas and Electric “Peaker” facility is slated to be built at an existing substation and will provide needed additional electricity for South County hospitals, businesses and residents during the peak summer months.  

As stated by Senator Ackerman, this project was designed to have minimal impacts on the local community, was approved by the most stringent air quality regulatory authority in the country, and would provide a critical supply of increased energy when it’s needed most.

Our elected officials must consider the common good of all their constituents, respect the thorough project review process that has already taken place, and allow the completion of this worthy project.  This facility will serve as an important component of Orange County’s energy infrastructure, increasing supplies of safe and reliable energy throughout South County, and OCBC strongly supports its completion.
 

Incoming OCBC Chairman Steve Lenzi of the Southern California Automobile Club taped an interview on Time Warner’s Local Edition last week, recording an interview that will air throughout the month as a local insert during CNN’s Headline News program, and can also be found on OCBC’s website.  In addition to promoting OCBC’s upcoming January 29 Annual Dinner, Lenzi outlined several major business council initiatives and charted “The Road Ahead” for OCBC in 2008.  Special thanks to OCBC’s new board member, Kristy Hennessey, Vice President of Community and Government Affairs for Time Warner, for arranging this airtime.

Elsewhere on the dial, OCBC Vice President of Research Dr. Wallace Walrod and Communications Director Robb Korinke appeared on Cox Forum January 3 to discuss the Southern California regional economic outlook for 2008.  Among the topics discussed were the housing market, employment growth and economic development throughout Orange County and beyond.    

The California Coastal Commission is set to take up the Foothill-South 241 Toll Road project at its meetings in San Diego set for February 6, 7 and 8.  It is essential that the business community make its voice heard on this issue, and support the completion of the 241.

Knowing opponents of this project will appear en masse at the Coastal Commission meeting, OCBC and the coalition supporting the project are urging supporters to attend and voice that support.  The 241 represents the only viable relief for traffic on the I-5 corridor, where traffic is projected to increase by 60 percent along the Orange/San Diego County border over the next 20 years.  This strained infrastructure poses a significant public safety risk and could cripple the movement of goods and people throughout Southern California. 

OCBC President and CEO Lucy Dunn and Vice President of Government Affairs Kris Murray will participate in a Metropolitan Water District of Southern California sponsored educational inspection tour of the Sacramento-San Joaquin Delta.  The two-day trip of the California Business Leaders Coalition is set for January 10 and 11, and will give attendees a thorough overview of the Sacramento-San Joaquin Delta, the largest estuary on the West Coast and California’s main water supply hub.  
 

To read the full report, please click here.
 

Shortly before the new year, Governor Schwarzenegger and Speaker Fabian Nunez submitted a ballot initiative that would fund the sweeping $14 billion healthcare proposal approved by the State Assembly earlier in December.  To qualify for the November ballot, the funding measure would need to gather and submit 1.2 million valid signatures by April 21.  The State Senate has not yet approved this measure and it will be debated in light of the $14 billion budget shortfall anticipated in 2008.

OCBC is also pleased to welcome the following individuals, slated to join the board at its January 18 meeting:

• Thomas Leone, Cox Communications
• Bob Schraeder, FCI Constructors, Inc. Southern Division
• John Simonis, Paul, Hastings, Janofsky & Walker, LLP