Unintended Consequences of CA Policy on the Economy, Poverty and Public Health John E. Husing, Ph.D. Chief Economist, Inland Empire Economic Partnership

Environmental Perfection vs. Public Health

Economic growth and job creation provide more than income and the ability to afford health insurance and medical care. They also enable us to live in safer homes and neighborhoods, buy healthier food, have more leisure time for physical activity, and experience less health- harming stress. In that way, economic policy is, in fact, health policy. Robert Woods Johnson Foundation

Key Determinants of Public Health Causes of Public Health Difficulties 1.Socio-Economics 40% 2.Population’s Health Behaviors Related to Poverty 30% 3.Access to Medical Care Related to Poverty 20% 4.Environmental 10% Source: Different Perspectives For Assigning Weights To Determinants of Health, University of Wisconsin, Public Health Institute, %

Poverty California’s Policy Vacuum Constituencies Up For Grabs

Share of People In Poverty

Social Justice Issue

December 1, 2015 Court Interprets CEQA To Block Homes For 58,000 People In L.A. County Project Delay Reaches 12 Years & Counting High Coastal County Home Prices And Rents Force Marginally Educated Families To Migrate Inland

Educational Attainment: High School or Less

Where Is CA Policy Made

PM 2.5: Diesel Pollution -95.6% despite over 240,00,000 sq. ft. added industrial operations & associated truck trips

California Wage & Salary Employment: A Record Level BUT...

Private Sector Job Quality

Gold Mine Theory Primary Tier Secondary Tier

What is Needed To Attack Poverty? Sectors With Few Education Barriers to Entry Median Incomes Approaching Middle Class Earnings Skill Ladders Up Which Workers Can Move To Median Incomes Sectors That Are Adding Jobs Skills Training for these Sectors

Manufacturing

SB 350 Will Worsen This

CA Is Not Loved By Executives or Entrepreneurs

Issue: CA Manufacturing Job Growth Just 3.0% of U.S. Growth

Minimal Manufacturing Growth % of Job Growth Median Pay $55,704

Who Is Hurt? Workers Whose Jobs Are Never Created Workers Whose Jobs Are Lost to Other States

Logistics

Industrial Construction Migrating To Inland California

Logistics: A Powerhouse % of New Jobs Median Pay $49,471

Indirect Source Rule Proposal 1.New Warehouses Would Pay Fees To Offset Trucks They Might Attract 2.Possible Cap on Warehousing Development 3.Intent Is To Slow Or Stop Inland Warehousing Development 4.Rationale: Can’t Meet Its EPA Target Without Cutting Truck Trips 5.Impact Would Hurt Inland Counties Supplying Logistics To North & South Ports & E-Commerce Where is the Potential Impact? Inland Empire Central Valley

Who Is Hurt? Workers Whose Jobs Are Never Created Workers Whose Jobs Are Lost to AZ or NV

Construction

Construction: Could Be Stronger % of Job Growth Median Pay $55,694

CEQA Repeatedly Abused NIMBYS Wanting To Stop Projects, Drive Up Their Costs Lawyers Using Threat Of Suits As A Cash Cow Business Wanting To Drive Up The Costs Of Their Competitors Unions Using Threat of Suits To Force Developers To Use Their Members

Whose Is Hurt? Families Forced Inland

SB 350 Home & Building Retrofit Pick A Census Year … What Share of CA Homes Will Need To Be Retrofitted? Will They Be Allowed To Sell Without Retrofit Given CARB Command & Control Approach? Who Will Pay For Retrofit?

Energy SB 350 Would Have Raised Petroleum Prices Dramatically… Affecting Lower Income Families

Why gas prices in California are so much higher than elsewhere in U.S. March 31, 2015 Who Is Already Being Hurt? The Poorest Among Us.

State Policies

CEQA Reform Extend CEQA litigation transparency from amicus briefs and attorney fee motions to CEQA petitions, so courts know who is suing and why. Ending duplicative CEQA lawsuits against implementation of projects and plans for which a legally adequate EIR has already been approved. Apply statewide the judicial remedy rule for the Kings Arena project, allowing deficient CEQA studies to be fixed (with more mitigation if needed) but allowing the project to be completed – unless it would cause significant risk to public health, natural ecology or irreplaceable tribal resources.

Legislative Oversight Legislative Review of CARB and AQMD Proposed Rules With Eye To Unintended Consequences of Cumulative Impacts On Poverty, Public Health Pending Legislation on Cumulative Impact of Regulation (Two Examples) AB 12 (Cooley) – Eliminate Duplicative & Out of Date Regulation AB 1286 (Mayes) – Creation of CA Regulatory Reform Council like Little Hoover Commission To Research Cumulative Impact of Regulation And Advise The Legislature

Education Policy

Blue Collar/Technical: Upward Mobility % of Job Growth Median Pay $55, % of Job Growth Median Pay $55, % of New Jobs Median Pay $49,471

Logistics: Meet Rapid Growth Truck Drivers!!! Diesel & CNG/LNG Mechanics Warehouse Technology/Robotic Equipment o Information Technology o Environmental Systems Manufacturing/Oil & Gas: Replace Baby Boomer Retirees Industry Specified Skills, Occupations, Certifications Industry Define Speed of Training Types of Skills o Mechanics o Machinists o Welders o Electrical Technicians o Software Techs Construction: Replace Lost Workforce Develop Trade Skills To Industry Standards Union Jobs Non-Union Jobs Soft Skills

Health Care & Finance Jobs % of Job Growth Median Pay $63, % of Job Growth Median Pay $55,678

Health Care & Financial Jobs Open Health Care Athletic Trainers & Exercise Physiologists Cardiovascular Technologists and Technicians Dental Assistants Dental Hygienists Diagnostic Medical Sonographers EMTs Massage Therapists Medical Laboratory Techs Medical Records & Health Information Techs Medical Transcriptionists MRI Techs Nuclear Medicine Techs Nursing (RN, LVN, Nurses Aids) Opticians Paramedics Pharmacy Techs Phlebotomists Physical Therapists Physician’s Assistants Radiological Techs Respiratory Techs Soft Skills Finance, Insurance, Real Estate o Escrow o Title o Teller Managers o Loan Officers o Real Estate Agents & Finance

Low Paying Job Growth % of Job Growth Median Income $30,693

Training: Middle Management In Lower Paying Sectors Issue: o No One Offers Middle Management Training o Industry Specified Skills & Occupations o Industry Defined Acceptable Credentials o Industry Define Speed of Training Types of Skills Train To Sector Requirements o Retail Mid-Managers o Restaurant & Fast Food Managers o Chefs o Hotel Department Managers o Office & Professional Executive Assistants

K-14 Educational Performance Career Technical Education Preparation Industry’s Role Organize To Set Standards & Required Certifications Conduct Industry Tours Allow Job Shadowing Internship Hands on Training Create Real World Projects Provide Externships For Teachers Education’s Role Create Training in Occupations & Skills From Industry Coordinate Closely With Employers Jr. High – Industry Tours High School – Create Sector Academies 1.Coordinate Job Shadowing 2.Articulate with Community Colleges

Issue: Community Colleges Share Governance: Faculty 50% of Decision Making Power Often Dominated By Social Sciences & Humanities Course Approvals Very Slow Limited Interest in Non-Academic Training Frequently Work Against Industry Based Training ____________________________________________________ Expense of Technical Training

Share of People In Poverty

From Poverty To Prosperity MOVING PEOPLE TO DEMAND SKILLS Business Decides High Levels of Poverty Not In Their Interest Business Groups Work To Have Local Government Create Strategy Get Families Ready To Take Training 1.Agencies Agree To Move People Thru The Process … Not Simply Warehouse Them 2.Single Intake & Tracking Systems 3.Secure Housing 4.Wrap Around Support Services (income, child care, transport) Training In Business Defined Sectors 1.Skills 2.Certifications 3.Speed of Training Educators Agree To React To Business Demand Occupations Business Agree To Prioritize Interviews For Jobs Funds Saved Available To Expand Effort

SB 350 Coalition: A View To Future State Power Words Matter Republicans … Business Friendly Mod-Democrats … Job Friendly