"Making Sure High-Speed Rail Serves San Diego’s Interests"
As Published in the San Diego Daily Transcript; July 17, 2008
W. Erik Bruvold
Thursday, July 17, 2008
When flying between San Diego and Northern California it isn’t unusual to spend more time fighting for a parking spot, standing in the security line, waiting in the terminal and holding on the tarmac than actually flying. It isn’t hard to see why many are saying that there must be a better way....Unfortunately, the current high-speed rail proposal treats San Diegans as second class citizens, seemingly oblivious to the fact that there is a world south of Los Angeles’s Union Station. Unless amended to include guaranteed funding to improve San Diego’s passenger rail connections, the region should strongly unify to oppose the measure...
As Published in the San Diego Daily Transcript; July 10, 2008
Vince Vasquez, Senior Policy Analyst
Thursday, July 10, 2008
It’s not often that the American public finds lawmakers in Washington D.C. and Paris agreeing on policy matters, but a transportation initiative has built common ground between the two capitals. As they confront our nation’s environmental challenges, San Diego officials would be wise to review the lessons to be learned in the City of Light. At issue are “community bicycle programs,” whereby city residents have free or low-cost access to bicycles for urban transport.
As Published in the San Diego Daily Transcript; July 3, 2008
Vince Vasquez, Senior Policy Analyst
Thursday, July 3, 2008
Californians have reaped the rewards of the Internet revolution, as their community is home to thousands of high-tech firms and wired with billions of dollars in high-speed communications infrastructure. Unfortunately, a new report reveals that local Latinos may be missing out on these developments. If we are to advance civic participation in the 21st century, policymakers should consider new approaches to digital inclusion. According to a statewide survey released last week by the Public Policy Institute of California (PPIC), the Internet usage of Hispanics in the Golden State has stagnated.
"San Diego’s Competitiveness: How our Economy Stacks up"
As Published in the San Diego Daily Transcript; June 27, 2008
W. Erik Bruvold
Friday, June 27, 2008
With only 12% of the U.S. land mass and just 65% of the population, the 100 largest metro areas in the country create 75% of the nation’s economic output and are responsible for nearly all of the country’s economic innovations. America’s ability to compete in the global economy depends upon the success of its cities. That is the central theme of the Brookings Institute’s “Blueprint for American Prosperity,” a multi-year research project focused on how to help U.S. major metropolitan areas prosper. Brookings’ initial findings help explain why San Diego has succeed over the past decade and areas where our region still needs to improve.
"Mass Transit and Gas Prices: Getting Back to Basics"
As published in the San Diego Transcript; June 12, 2008
W. Erik Bruvold
Thursday, June 12, 2008
Providing more evidence that economists are right when they say “price matters,” high gasoline costs are doing what billions of infrastructure investments and millions in advertising couldn’t accomplish: encouraging a significant percentage of Americans to think about whether they can make their commute using mass transit. San Diegans looking closer at these options will find that our region’s transit system does some things relatively well and will also find areas where there are room for improvement. With the United States likely to face continued high energy costs, there is no time like the present for the San Diego Association of Governments (SANDAG), the Metropolitan Transit System (MTS) and the North County Transit District (NCTD) to step back and re-examine certain elements of our region’s public transit plans.
"Auto Purchases and Local Sales Taxes: The Sky Isn’t Falling But it is Close"
As published in the San Diego Daily Transcript; June 5, 2008
W. Erik Bruvold
Friday, June 6, 2008
A week ago the New York Times reported that an analysis of new vehicle sales showed that Californians disproportionately tapped into the equity of their homes when making new automobile purchases. While 11.8% of autos in 2007 were financed in the rest of the country by purchasers tapping into the equity of their homes, during the same time 29.8% of new vehicle sales in California were bought by making a trip to the home equity ATM..Finance directors throughout the County should be shouting loudly at city managers and council members that there is a significant danger that the diminished ability of consumers to take on $20,000 to $30,000 in debt for a new auto will negatively impact new vehicle sales and, in turn, reduce the sales taxes that are generated from such purchases.
"City Hall and Kids: Municipalities have a role in helping to improve schools"
As published in the San Diego Daily Transcript; May 22, 2008
W. Erik Bruvold
Friday, May 23, 2008
Citizens consistently tell pollsters and surveyors that the quality of K-12 education is among their highest concerns. In the last three surveys from the Public Policy Institute of California, participants said that education was the second most important issue facing the state, trailing only the economy. The public’s concern for how we are educating our kids and the sheer size of the investments taxpayers are making in the K-12 system is one of the reasons why mayors and cities throughout the country are getting involved in education...
"Vallejo’s Fiscal Melt Down: Lessons for San Diego"
As printed in the San Diego Daily Transcript; May 16, 2008
W. Erik Bruvold
Friday, May 16, 2008
Last week the Vallejo City Council voted to declare what is likely to become one of the largest municipal bankruptcies in U.S. history. The sorry story behind how this happened holds several instructive lessons for cities in the San Diego region.
"Thinking about the Future: Four of San Diego’s Demographic Challenges"
As Published in the San Diego Daily Transcript; April 25, 2008
W. Erik Bruvold
Friday, May 2, 2008
Too often it is easy to focus on immediate policy problems and lose sight of long term challenges. If, like planners and the demographic gurus at the San Diego Association of Governments (SANDAG), one takes a 30 year view, there are several issues looming on the region’s horizon which will test both our politics and our policy making institutions.
First and foremost, forecasters predict San Diego will continue to grow...
"A Billion Here, a Billion There and Soon We are Talking About Real Money"
A printed in the San Diego Daily Transcript; May 1, 2008
W. Erik Bruvold
Friday, May 2, 2008
When Governor Arnold Schwarzenegger unveils his revised Budget proposal in two weeks, he is likely to announce that the State of California faces a deficit that has ballooned to at least $10 billion and, in the worst case, almost $20 billion.
That, as they say, is serious money. It exceeds the total amount spent on both the entire UC and the CSU systems. The state could close down every prison and still not close the gap. At the high end, the deficit is equal to nearly two-thirds of the money that Sacramento invests in K-12 education.
How we got here is a troubling story of missed opportunities and failure in the California’s body politic. Sacramento politicians, with very few exceptions, could not resist increasing spending when state coffers were full...
As Published in the San Diego Daily Transcript; April 17, 2008
W. Erik Bruvold
Friday, April 18, 2008
When CitiStat, an innovative data-driven management tool was first introduced in New York, Baltimore, and Chicago, some department heads in those cities were not happy. Confronted with hard data and metrics about their department’s performance, managers were grilled as to why complaints about missed trash pick-ups were on the rise or what plans a precinct commander had to deal with a statistically significant increase in street crime. A few said it felt like the “Spanish Inquisition”. While we would never support thumb screws or the rack, sometimes being called to account is the only way to shake up entrenched interests and force fundamental changes in the way a city does business.
"Keeping the Lock Box Shut Tight: Preserving Funding for Transportation"
As Published in the San Diego Daily Transcript; April 10, 2008
Wednesday, April 9, 2008
One can’t feel much but sticker shock when pulling in to buy gas. The station near my house is selling gas for $3.78, while even the bargain independent, which often has lines four or five cars deep, has priced its regular octane gasoline well above $3.50. High energy bills are taking a significant bite out of the budget of ordinary San Diegans and significantly impacting household budgets throughout the county. There is one small silver lining in this otherwise disastrous rise in prices...
"Investing so that San Diego can Continue to Prosper in the Global Marketplace"
As Published in the San Diego Daily Transcript; April 3, 2008
Kelly Cunningham
Friday, April 4, 2008
San Diego has enjoyed relatively strong economic prosperity over the past decade and a half, as the local economy diversified and maintained relatively healthy and steady employment growth. Indeed, it can be argued that San Diego has been among the nation’s strongest economies during this period, while other areas of California and the U.S. endured significant economic struggles. There is no time to rest upon laurels of previous success, and we must continually invest and equip ourselves to compete in the global economy...
A Published in the San Diego Daily Transcript; March 27, 2008
W. Erik Bruvold
Friday, March 28, 2008
Empowering an army of 36 million citizen auditors and watchdogs unleashed upon the $100 billion dollar California budget. That is the laudable goal of Senator Tom McClintock’s SB 1494 and Assembly Martin Garrick’s AB 1843. If enacted by the legislature and signed by the governor, these bills would require the State of California to put information about state expenditures on-line, including who was paid how much and which department authorized the payment.
"NAFTA 15 Years Later: The View is Different Here"
As Published in the San Diego Daily Transcript; March 19, 2008
W. Erik Bruvold
Friday, March 21, 2008
Presidential politics often distort the public conversation. That was never more clear than in the lead up to the Ohio primary where each of the Democratic candidates sought to outflank each other in their opposition to the North American Free Trade Agreement. Senator Clinton said, for example, that she had always been skeptical of the agreement and expressed those views behind the scene during her husband’s administration. Senator Obama said that he believed NAFTA was responsible, in part, for the economic hardship he saw in Chicago during his days as a community organizer. During the last debate each promised that if elected President they would move to bring Canada and Mexico back to the table to renegotiate. If Mexico City or Ottawa balked, both pledged to abrogate the agreement.
If the rhetoric of March actually influences policy choices, San Diego and the rest of Southern California stand to lose.
As printed in the San Diego Daily Transcript; March 6, 2008
W. Erik Bruvold
Thursday, March 6, 2008
San Diego is proof positive that entrepreneurial activity is critical to economic development. Most of our region's growth, especially over the past two decades, has been fueled by the success of "home-grown" companies rather than by attracting companies from outside the region.
Recent research by the Kauffman Foundation underscores this relationship. In their report, "Entrepreneurship and Urban Success: Toward a Policy Consensus," ten of North America's leading urban economists find a strong correlation between entrepreneurial activity and job growth in U.S. Cities. While the authors are quick to point out that they cannot determine the causality of this relationship (e.g. do high rates of self-employment cause growth or do high rates of growth encourage more people to go out and start new businesses), they note that the correlation is one of the strongest that has been found.
As Printed in the San Diego Daily Transcript; February 28, 2008
W. Erik Bruvold
Friday, February 29, 2008
For the $63 million Carlsbad taxpayers paid, at least “The Crossings at Carlsbad” turned out to be a beautiful golf course. Its clubhouse looks like a Tuscan castle – more like those found at high-end gated communities than at city-owned municipal golf courses. At least those were my impressions last Sunday when I got a chance to play 9 holes at what is one of the region’s most troubling examples of a municipal project gone bad.
As printed in the San Diego Daily Transcript, February 21, 2008
W. Erik Bruvold
Thursday, February 21, 2008
Sometimes it seems San Diegans want to argue about the future of San Diego’s airport because by debating about the future of Lindbergh Field we avoid actually doing something. Muddling is just too often seen by people as more politically beneficial than putting shovels in the ground and getting the bulldozers working.
"Will San Diego Dodge the Downturn? A Real World View of the Facts"
As Printed in the San Diego Daily Transcript; February 13, 2008
Kelly Cunningham
Friday, February 15, 2008
Commentators are currently speculating whether a national recession is either imminent or under way. Economists from California-based Beacon Economics were in San Diego last week proclaiming California and San Diego are already well into recession.
With all due respect to these outside observations, San Diego is not necessarily falling in line with the rest of California or even of Southern California. Over the past decade, San Diego’s economy has become much more independent from the shadow of the Los Angeles megalopolis and acts much more on its own momentum and strengths. Likewise, San Diego is positioned differently from the rest of the nation when it comes to the factors that are leading to the national downturn.
As Printed in the San Diego Daily Transcript; February 7, 2008
W. Erik Bruvold
Thursday, February 7, 2008
When California moved up its Presidential primary to February 5th, state leaders said it would be worth investing approximately $90 million to make California (and Californian issues) more relevant than ever. While it is true that this week voters in our state went to the polls before the presidential nominations by the two major parties were decided, the campaigns of the respective candidates only marginally touched on key federal issues that impact the Golden State. Contrast that to the endless discussions they had about corn-based ethanol in Iowa, hurricane insurance in Florida, the impact of trade on South Carolina’s textile industry, or the fate of Yucca Mountain in Nevada.
For taxpayers’ $90 million, it would have been nice to hear more from the candidates on their position on several key issues that impact Californians more than most states and which are critical to our state’s future.
"Bloomberg’s Accountability and Transparency Agenda: Lesson for the San Diego Region"
As Printed in the San Diego Daily Transcript, January 31, 2008
W. Erik Bruvold
Wednesday, January 30, 2008
There is a pothole on my daily commute that recently has been getting bigger and bigger. Though I have twice called the municipality where it is located, for the past three weeks nothing has happened.
Now imagine if one could go online to a web site, alert the municipality to a pothole and then track the progress being made on that service request. That information shouldn’t just be available for the individual lodging the complaint but accessible to anyone so that every citizen can see how fast it takes government to respond to a problem. One can imagine local fiscal watchdogs tracking that information and reporting on the average length of time it takes for a pothole to be fixed, which streets seem to have to the biggest problems, or how the level of service is changing.
"Where is San Diego on the Map of the Global Marketplace?"
As published in the San Diego Daily Transcript, January 24, 2007
W. Erik Bruvold
Thursday, January 24, 2008
What will be the key drivers of our regional economy? What is San Diego’s place in the global marketplace? Will prosperity be shared broadly in our community?
These questions lie at the heart of a collaborative effort that the San Diego Institute for Policy Research, the San Diego Regional Economic Development Corporation and the City of San Diego recently unveiled – the Partnership for the Global Economy. The results of the project portend an exciting future for our region, but one which we can only realize if the public sector enables the kind of entrepreneurship and innovation that has characterized past transformations in the regional economy.
As published in the San Diego Daily Transcript, January 17, 2008
W. Erik Bruvold
Friday, January 18, 2008
The news out of Sacramento is both sobering and predictable. Like clockwork, a budget crisis has emerged some 18 months after the state’s economy significantly slowed down. The reasons are quite simple. California’s revenues show pronounced year-to-year fluctuations, but most state spending is on autopilot, set to make a steep upward climb. The result is that in years when the state capitol realizes a revenue windfall, the legislature can avoid making any hard choices. In years where the windfall is not realized, draconian cuts have to be imposed.
"Simple Economics: The Best Time to Buy is in a Down Market"
As published in the San Diego Daily Transcript, January 10, 2008
Kelly Cunningham
Friday, January 11, 2008
One of the perennial questions always asked about the San Diego economy is “What is really happening in the local housing market?” This is usually followed by “Is it a good time to buy or sell?” The question of the day is whether the downturn in the housing market of 2007 is over or will 2008 see further downward pressures on prices?
"Opportunity City versus Superstar City: San Diego at a Crossroads""
As published in the San Diego Daily Transcript; December 20, 2007
W. Erik Bruvold
Friday, December 21, 2007
What will be San Diego’s economic future? A debate waging among students of urban economic development has serious implications for how that question will be answered in the coming decades.
On the one hand are proponents, most notably University of Toronto Professor Richard Florida, who argue that economic development in the 21st century will be driven by the ability of regions to attract what Dr. Florida terms “The Creative Class.” Regions which have a large concentration of scientists, engineers, artists and others involved in intellectual and creative pursuits are, according to this view, destined to prosper. Those regions that fail to attract a sufficient critical mass of the “creative class” are likely to be left behind...
As Published in the San Diego Daily Transcript; December 13, 2007
W. Erik Bruvold
Thursday, December 13, 2007
Earlier this month the San Diego Association of Governments (SANDAG) passed the latest iteration of the “Regional Transportation Plan” (RTP). To meet projected demand over the course of the next two decades, SANDAG estimates a need for $82 billion worth of transportation projects between now and the year 2030. The rub is that when one looks at tax revenues and projected federal and state spending on transportation, the San Diego region can reasonably expect to have available only $51 billion over that period of time. Even that number, as the San Diego County Taxpayers recently noted in the Voice of San Diego, assumes increases to state and federal gas taxes. Thus at the heart of the current RTP is SANDAG’s prioritized lists of potential projects.
As Printed in the San Diego Daily Transcript; December 06, 2007
Kelly Cunningham
Wednesday, December 5, 2007
Free trade boils down to the very simple concept of people being free to exchange something of value for something else of value. The benefits flow when both seller and buyer are satisfied, and maximum economic efficiency and overall productivity is achieved for all involved. One can show through math and logical deduction that this equilibrium leads to the most efficient distribution of resources, but that is a dry and somewhat esoteric concept.
As printed in the San Diego Daily Transcript; November 29, 2007
W. Erik Bruvold and Vince Vasquez
Wednesday, November 28, 2007
San Diego is home to one of the largest communities of veterans in the nation. When it comes to local government’s efforts to reduce the tax burden on those that have sacrificed for our country, our region lags behind. It is time that we do more. Policies reducing local tax burdens for our veterans would not only recognize and honor the sacrifices they have made to keep this country free, but would also help ease the high-cost of homeownership in San Diego, enabling more veterans to stay in the county after they finish their service to our country.
As printed in the San Diego Daily Transcript; November 15, 2007
W. Erik Bruvold, President and CEO
Wednesday, November 14, 2007
Wildfires are a natural part of the California landscape. In October 1889, the Los Angeles Times reported that two wildfires in San Diego and Orange County had consumed almost 800,000 acres, making those fires four times larger than last month’s Witch Creek blaze and eight times larger than the Harris fire. Many native California plants are adapted to survive fire. For some, such as Coulter Pines and Manzanita bushes, periodic fires play a vitally important and beneficial role in the plant’s life cycle.
Recognizing the near ubiquitous nature of fires in our state helps put in perspective the commentaries that have been heard in the days following last month’s fires...
"Pruning the Challenges of San Diego's Wine Community"
As printed in the San Diego Daily Transcript; November 8, 2007
Vince Vasquez, Senior Policy Analyst
Thursday, November 8, 2007
As San Diego’s backcountry begins to recover from the fires of the past month, viniculture and wine-related tourism can play a role in helping severally impacted communities, including Ramona, Valley Center, and Julian recover. That is why it is so important that, rather than allow opportunities to wither on the vine at this critical juncture, county officials should embrace the success of our local agricultural entrepreneurs and ease regulations that currently are precluding the development of wine-tasting rooms in San Diego’s rural communities.
"Innovation and Incentives: Rewarding Performance in NYC Schools"
As Printed in the San Diego Daily Transcript, November 1, 2007
W. Erik Bruvold, President & CEO
Wednesday, October 31, 2007
One of the things that outsiders bring to bureaucracies is a willingness to experiment and to rethink established ways of doing business. Earlier this month, New York City Mayor Michael Bloomberg did precisely that when he and the leaders of the NYC United Federation of Teachers (UFT) unveiled a new performance-based bonus system for teachers working at that city’s most challenging schools. The roadmap they have constructed should be carefully examined by educators throughout San Diego county.
As printed in the San Diego Daily Transcript; October 18, 2007
W. Erik Bruvold, President & CEO
Wednesday, October 17, 2007
The early 1990’s was an economically bleak time for San Diego. The region’s largest private sector employer, General Dynamics, had shuttered its Kearny Mesa facility. The savings and loan industry experienced significant job cuts as a result of the imploding Southern California housing market. Unemployment rates spiked, municipal revenues stagnated and national commentators asked whether San Diego, along with the rest of the state, would ever recover.
A remarkable recovery has taken place over the past 15 years. A key reason for that is San Diego’s visitor industry.
As Printed in the San Diego Daily Transcript; October 11, 2007
Vince Vasquez, Senior Policy Analyst
Thursday, October 11, 2007
As we reach the final days of Hispanic Heritage Month, a recent government study points out in stark relief the astronomically high drop out rate among Latino high school youth. Looking ahead, this phenomenon poses perhaps the greatest threat to our region’s future economic prosperity. Local policy makers must confront head-on how the educational status quo is failing the most vulnerable segment of students and press for innovative solutions and new approaches to reverse the disastrous drop out rate.
"Conservation and Water Supplies: What San Diegans are Thinking"
As printed in the San Diego Daily Transcript; October 4, 2007
W. Erik Bruvold, President & CEO
Wednesday, October 3, 2007
The news about the region’s water supply seems to get worse every day. The latest shoe to drop was recent long-range forecasts that predict a La Nina condition this winter. Typically this weather condition pushes the storm track north, leading to more rain in the Pacific Northwest and less snow in the Southern Sierra Nevada. Add to the mix the multi-year drought in the Colorado River watershed and a recent court ruling that could significantly reduce the amount of water Southern California can draw from the Sacramento Delta, and San Diego could be faced with the most severe water crisis seen in California since the early 1990s.
As printed in the San Diego Daily Transcript; September 27, 2007
Vince Vasquez, Senior Policy Analyst
Wednesday, September 26, 2007
Over the next six months, two key transportation projects will come online in San Diego, easing the commutes of hundreds of thousands of San Diegans. Improved drive times promise to be compelling evidence that government innovations and free-market approaches to problem solving can dramatically improve our quality of life. With strong civic leadership, they may become the first installments of a new market-friendly network that keeps commuters in the fast lane.
Officially known as State Route 125, the “South Bay Expressway” (SBX) is a new ten-mile toll highway that stretches from Otay Mesa to Spring Valley, connecting State Route 905 with State Route 54. Scheduled for completion in the fall, SBX is being built through a public-private partnership between the state of California and a private investor. Both benefit, as the private partner agrees to construct the highway, assumes the risk for project delays and cost increases, contributes sorely needed capital and collect tolls to recoup its investment – while public transportation officials gain a major infrastructure improvement years before it would have been completed under standard bureaucratic processes.
As printed in the San Diego Daily Transcript; September 13, 2007
Steven Francis, Chairman and Founder
Thursday, September 13, 2007
Last fall, San Diego voters handed City Hall a highly effective policy tool to cut government costs and improve public services. Now, 300 days since that election, the time for municipal reviews and how-to guides is over. Policy makers must not delay reform but move to implement “managed competition.”
Managed competition is the policy process that allows private parties and government agencies to bid against each other for the right to deliver public services. For more than thirty years, the managed competition process has been adopted by local, state and federal lawmakers from all points on the ideological spectrum to promote cost savings, efficiency, quality improvements and innovation. Since the late 1990’s, managed competition has even been used in San Diego County government, saving local taxpayers tens of millions of dollars. Despite the crystal ball predictions of political pundits, the majority of these bids in the last decade have been won by the incumbent county government agencies, after undergoing significant internal cost-cutting and management reforms – a strong and healthy sign which proves that competition works and helps public workers as much as it does taxpayers.
As printed in the San Diego Daily Transcript; September 6, 2007
Steven Francis, Chairman and Founder
Thursday, September 6, 2007
Common sense tells us that incentives impact performance. The private sector understands this, which is why compensation packages in so many fields are tied to achievement. People who achieve more are rewarded, helping to create a culture of excellence instead of mediocrity.
One place where common sense doesn’t prevail is in our system of rewarding teachers for superior achievement. In short, we don’t. While smart governments around America are looking for ways to inject private sector incentives and rewards into government operations to improve performance, the education bureaucracy continues to resist this common sense practice.
"California’s Budget Impasse: Lessons for San Diego"
As printed in the San Diego Daily Transcript; August 30, 2007
Steven Francis, Chairman and Founder
Thursday, August 30, 2007
California just experienced its third longest state budget delay in history. The major reason Senate Republicans refused to pass the budget in June was their concern that a slowing economy could exacerbate California’s multi-billion dollar structural deficit. In San Diego, elected officials should think hard about why Senate Republicans felt compelled to hold the line on spending. Such an examination should lead City leaders to redouble their efforts to restructure municipal activities so that, if a recession hits, the City can successfully weather the downturn.
Concerns about a recession are not alarmist. Most economists agree California and San Diego are experiencing an economic slowdown in some sectors, with a potentially adverse impact on tax revenues. Most taxes are in some way tied to economic growth and activity, such as sales, property values, and personal/corporate income growth.
As printed in the San Diego Daily Transcript; August 23, 2007
Steven Francis, Chairman and Founder
Thursday, August 23, 2007
This won’t come as a surprise to those that read the letters to the editor in local newspapers or follow the region’s more colorfully written blogs, but San Diegans really distrust their government.
These anecdotal impressions are backed up by results from the July SDI/CERC Barometer of Public Opinion. We asked City residents “How much of the time do you think you can trust the government in the City of San Diego to do what is right?” Only 5.7% said “just about always, with 60% saying “only some of the time.” This same question is asked every four years in the National Science Foundation-supported National Election Study. Comparing our results with those of the NES indicates that San Diegans are decidedly more skeptical and trust their government less than the rest of the nation.
As printed in the San Diego Daily Transcript; August 16, 2007
Vince Vasquez, Senior Policy Analyst
Thursday, August 16, 2007
As the downturn in the housing market has begun to ripple through the economy, more and more observers, including SDI’s own Kelly Cunningham, are starting to talk about the risk of recession. One exciting development that has the potential to mitigate the impacts of this downturn is the effort by local leaders to expand a successful pro-growth program known as enterprise zones (EZs).
Enterprise zones are special packages of tax breaks and other incentives designed to increase jobs and investment opportunities within a limited, economically-distressed area. Invented in Great Britain in the 1970s, and popularized in the United States under the leadership of President Ronald Reagan, EZs have become a major component of urban renewal strategies across the nation. More than 40 states have established EZ programs tailored to their own unique needs and goals, including the Golden State.
As printed in the San Diego Daily Transcript; August 9, 2007
W. Erik Bruvold, President and CEO
Thursday, August 9, 2007
Recently released internal government documents measuring the cost of San Diego’s “living wage” ordinance added another piece to the mountain of evidence that shows that there is no such thing as a free lunch. The report indicates that the ordinance has increased the City’s contracting costs by at least $900,000 and the total bill is likely to go much higher. The findings should spark a reexamination of the ordinance when the City Council reconvenes in September.
Enacted with great fanfare in 2005 after intense lobbying by labor organizers and social activists, this ordinance mandates that to do business with the City of San Diego, contractors must pay their employees at least $10 an hour if they offer health benefits or $12 an hour if they do not.
"Political Leadership, Globalization, and Seeking Win-Wins"
As printed in the San Diego Daily Transcript; August 2, 2007
Steven Francis, Chairman and Founder
Thursday, August 2, 2007
Moscow, which I had the good fortune of visiting last week, is a city of contrasts. From the window of my hotel I could look across at St. Basil’s Cathedral and the commercial skyline of Moscow. Transformed from the deadly dull gray of the Soviet era, Moscow is now home to a myriad of new skyscrapers and development. Globalization has arrived with a vengeance. Advertisements for global brands like Nokia, Nike, Samsung and IKEA are everywhere. The powerful combination of oil revenues and economic liberty are creating a new Russia.
But there is a flipside to this newly found prosperity. Mercer Research recently identified Moscow as the world’s most expensive city. Downtown flats are rented for astronomically high rates. Once outside of the commercial and business hubs, you encounter the Soviet-era apartment complexes where the majority of Moscow’s citizens still reside. While the overall standard of living in Russia has increased, the gaps between rich and poor, privileged and ordinary, have never been wider.
As printed in the San Diego Daily Transcript; July 26, 2007
Vince Vasquez, Senior Policy Analyst
Thursday, July 26, 2007
In the wake of Hurricane Katrina, America was shocked to discover the wretchedness of poverty in New Orleans, as unforgettable images of desperate residents saturated our television screens. Now a new state law gives tax relief for the poorest families in Louisiana, helping the most vulnerable members of society rebuild for a brighter future. If San Diego civic leaders want to fight poverty at home, they too should consider supplementing the federal Earned Income Tax Credit (EITC).
The EITC is a refundable tax credit for low-income individuals and families that appears on federal income tax returns. Those qualifying can claim a credit that exceeds their federal income tax bill, and hence the credit acts as an income support mechanism that rewards work and allows individuals to remain in the workforce. More than $30 billion each year is refundable through the EITC, helping more than four million people escape poverty – a stunning policy success. Observing the success of the EITC, several states have taken action to piggyback on the federal program. This June, Louisiana joined 21 other states in matching 3.5% of the value of an individual’s EITC. Estimates suggest that 500,000 Louisiana taxpayers will qualify and receive, on average, an additional $80 on top of the federal tax credit.
As printed in the San Diego Daily Transcript; July 19, 2007
Steven Francis, Chairman and Founder
Thursday, July 19, 2007
The announcement earlier this month by Gaylord Entertainment that it was pulling out a project it had invested millions of dollars in stands as an important reminder. Although San Diego is blessed with sun , beaches and great weather, those factors do not render obsolete basic rules of economics.
San Diego exists in a growingly interconnected world were capital is mobile. Global telecommunications networks, integrated financial markets, and an ever-expanding air transportation network mean that development capital does not have to focus on a single geographic market. More so than ever before, if local regulations and demands are so onerous that investors can easily achieve a better return on their investment elsewhere, they’ll gladly pack their bags and seek out new opportunities in other regions.
As printed in the San Diego Daily Transcript; July 12, 2007
Vince Vasquez, Senior Policy Analyst
Thursday, July 12, 2007
Last month, a key state agency approved more than $10 million in public funds for San Diego’s biotechnology researchers. This is a key development for one of the most important economic engines in our region and can help San Diego continue to both save lives and strengthen its position as one of California’s most innovative and entrepreneurial industry clusters.
The California Institute for Regenerative Medicine (CIRM), the state’s life sciences research agency, green-lighted grants on June 5th that will underwrite professional training and lab space at some of San Diego’s finest research institutions. The Salk Institute for Biological Studies, the University of California – San Diego, Scripps Research Institute, and the Burnham Institute for Medical Research will all be receiving sizable disbursements, laying the foundation for future lab work that may one day uncover cures for diseases that afflict millions of Americans, such as cancer, diabetes, and multiple sclerosis.
"San Diego Sunshine, Tourism, and Our Region’s Bottom Line"
As printed in the San Diego Daily Transcript; July 5, 2007
Kelly Cunningham, Economist and Senior Fellow
Thursday, July 5, 2007
As the crowds at the coast attest, San Diego’s tourism industry is prospering. While the number of out of town visitors at our beaches is sure to make it harder to find a parking spot and frazzle a few nerves, it is worth noting the tremendous economic value that tourism brings to our region and the important contribution visitors make to the balance sheets of local government.
The number of visitors staying overnight in San Diego reaches a peak each year this month. Last year, 1.8 million overnight visitors and another 2.4 million “day” visitors came to San Diego during July and spent an unprecedented $862.7 million at area businesses. This spending is not limited to restaurants, lodging and entertainment venues. On top of the one out of every eight jobs at companies directly involved in the visitor industry, tens of thousands of more jobs in other industries are also supported by tourism. These include those that service visitor businesses, such as accounting and advertising firms, web designers (one of the top business uses for the web is for visitor related purposes, including booking air travel, hotels, rental cars, and information on areas to be visited), construction companies building hotels, and food, printing and paper suppliers.
"Reaching to the Private Sector for San Diego’s Next Chief Operating Officer"
As printed in the San Diego Daily Transcript; June 28, 2007
Steven Francis, Chairman and Founder
Thursday, June 28, 2007
Chief Operating Officer (COO) Ronne Froman’s resignation from San Diego City government offers Mayor Sanders an opportunity to hire a new COO with private sector experience running large, multi-faceted organizations. Here is hoping that he seizes it.
When Sanders announced Admiral Froman as his unofficial running mate, many San Diegans felt their partnership made sense. She had experience turning around troubled organizations and reforming byzantine management systems that stifled organizations and made them extremely inefficient. The reform efforts she led at Navy Region Southwest, the Red Cross and City Schools were well received and she brought a focus and expertise on, as she calls it, “fixing the plumbing”. Any organization, such as the City, that couldn’t tell the public what properties it owned or how many contracts it was a party to needed to have its administrative services overhauled and systems reworked. For helping the City right its administrative ship, Admiral Froman deserves thanks and recognition from the citizens of San Diego.
As printed in the San Diego Daily Transcript; June 21, 2007
Vince Vasquez, Senior Policy Analyst
Wednesday, June 20, 2007
This month, AT&T announced its entry into San Diego’s cable market. Local residents should welcome this development with open arms, as it ushers in a new era free from the failures of the broken public policy known as “video franchising.”
Video franchising is the regulatory system that empowers local governments across the country to set the terms and conditions for service providers to enter the video marketplace. For decades, city officials used their franchise authority to extort millions of dollars in franchise fees and an assortment of “goodies” from cable providers, while in turn offering them lucrative monopoly agreements. As a result, incumbents settled in, local government got more revenue and consumers felt the pocketbook pinch. Indeed, according to a December 2006 report from the Federal Communications Commission (FCC), cable prices have risen more than 90% in just the last ten years.
As printed in the San Diego Daily Transcript; June 14, 2007
Steven Francis, Chairman and Founder
Thursday, June 14, 2007
On Tuesday June 4th consumer choice in San Diego suffered a severe blow. The majority of members of the City Council passed an ordinance that prohibits the construction of large retail establishments that sell both general merchandise and groceries. Directed at Wal-Mart, which has perfected this form of retailing and which has conclusively demonstrated that many consumers prefer to shop that way, the vote flew in the face of both public opinion and good economics.
What is sad is that the City Council already has all the tools it needs to make sure large retail stores do not negatively impact a neighborhood. The construction of a Wal-Mart Supercenter within the City of San Diego would almost assuredly require an environmental impact report that would analyze the impacts of the proposed development on traffic circulation, land use and community character. The City Council would have the opportunity to conduct an in-depth examination of those impacts and determine whether they could be adequately mitigated. The concerns of the community would be voiced at public hearings and, as needed, the development altered to reduce or eliminate any negative impacts.
As printed in the San Diego Daily Transcript; June 7, 2007
W. Erik Bruvold, President and CEO
Thursday, June 7, 2007
Part of what has made California great is the fact that many of our state’s industries are at the cutting edge of new frontiers. From Bill Hewlett and David Packard putting together their first machines in a Palo Alto garage, to the film pioneers founding studios in Southern California, to the entrepreneurship of Irwin Jacobs and Andy Viterbi in San Diego, our state’s prosperity has been fueled by the combination of risk-taking visionaries and a highly educated workforce.
Two weeks ago the Public Policy Institute of California (PPIC) released a report that should be a wake-up call for everyone that cares about California’s future.
"An Alternative to City Hall’s Traditional Summer Vacation"
As printed in the San Diego Daily Transcript; May 31, 2007
Steven Francis, Chairman and Founder
Thursday, May 31, 2007
The San Diego City Council is expected to pass their Fiscal Year 2008 budget sometime in late-June but there are still critical challenges that need to be addressed. Rather than skip out for a long summer recess, local lawmakers should stay indoors and finish some long-neglected homework.
If the Council is fiscally disciplined, the FY 2008 budget’s core feature will be a significant reduction in the public workforce and a multi-million dollar commitment to set aside money to pay down the city’s wide array of long-term debts and obligations. Such belt tightening is long overdue; assuming no last minute special-interest shenanigans, the Council and Mayor Sanders have taken important steps toward improving the fiscal condition of the City. But rather than coast through July and take the month of August off, local elected officials would be wise to keep the momentum for fiscal reform moving.
As printed in the San Diego Daily Transcript; May 24, 2007
Steven Francis, Chairman and Founder
Wednesday, May 23, 2007
At the southern tip of Point Loma more than 71,000 granite markers stand vigil. They guard the mouth of the San Diego Harbor, from where generations of Americans have departed our shores to fight for our freedoms and our way of life. This Memorial Day, we honor their ultimate sacrifice, and the courage of those now called to take up arms and serve their country in a time of war.
The solemn sight at the Fort Rosecrans National Cemetery is an eternal testament that the privilege of being an American hasn’t come freely – our nation was built upon the valor of volunteers, many of them young men and women, who lost their lives fighting for ideals greater than themselves. As home to a vibrant military community, San Diego knows the need to reflect upon their contributions, and recognize the roots of the prosperity and safety we enjoy today, even amidst the frustrating geo-politics and calamities of the post 9-11 world.
As printed in the San Diego Daily Transcript; May 17, 2007
Steven Francis, Chairman and Founder
Wednesday, May 16, 2007
This week, the San Diego City Council began deliberating the Mayor’s proposed 2008 budget, wrestling with some of the most extraordinary fiscal challenges in the City’s history. Unless local lawmakers want to put taxpayers through the kind of grief that ultimately resulted in the recall of a sitting California Governor, they must plan for the future, fixing past mistakes and enacting fundamental fiscal reforms.
The good news is that in 2008 the City will enjoy an economic windfall that will soften the fallout from irresponsible spending sprees of past Councils and the unconscionable decision to under fund our public employee pension system. San Diego’s General Fund revenues for Fiscal Year 2008 are estimated at $1.104 billion, a hefty sum that speaks to our recent period of private-sector growth and prosperity. Only four years ago, General Fund revenues weighed in at $743 million. This $361 million dollar increase reflects an average 10.5% annual rate increase in municipal receipts.
As printed in the San Diego Daily Transcript; May 10, 2007
W. Erik Bruvold, President and CEO
Thursday, May 10, 2007
A compelling study by New York City's Independent Budget Office (IBO), “Comparing State and Local Taxes in Large U.S. Cities,” recently came across my desk. It answered an important question – why do San Diegans feel burdened by high taxes and a government with a seemingly rapacious appetite for more money and yet, when we examine the City of San Diego’s revenue sources, it is apparent that our city does not have taxes that other municipalities routinely impose? The standard answer by City Hall insiders and old-style liberals is that we are “cheap.” Indeed, a left-leaning think tank in town released a study a few years ago that purported to show that local citizens are “undertaxed.”
As printed in the San Diego Daily Transcript; May 3, 2007
Steven Francis, Chairman and Founder
Thursday, May 3, 2007
After Mayor Jerry Sanders successfully urged San Diego City Council to impose another one-year contract without a pay raise on city firefighters, a member of the force, deeply frustrated with the city, disgustedly threw down the handmade sign he had brought to the meeting. What helped give rise to this frustration was the mayor's previously stated rationale for not granting a pay raise to the city's firefighters: They "should be based on market rate," he said. As a city, we must do better and put an end to the bitterness I saw play out on CityTV 24.
When tough financial decisions must be made and options are limited, it is sometimes too easy to focus solely on the numbers and lose sight of other equally important factors. While there always will be times when employers will be in the unenviable position of having to convey unwelcome news to employees, the manner in which such news is delivered can significantly affect employee morale, and ultimately the effectiveness of the organization.
"Enhancing Education Outcomes through Competition"
As printed in the San Diego Daily Transcript; April 26, 2007
Steven Francis, Chairman and Founder
Thursday, April 26, 2007
As we enter another presidential election cycle, hardly a day will go by when someone on TV isn't talking about "improving education" for Californians and all Americans.
Here's a partial list: the school board, the principal, the state Legislature, the governor, the president, Congress, the state superintendent of Public Instruction, the state secretary of Education and his department, the federal secretary of Education and her department -- the list goes on.
If improving the quality of education was at all tied to our success in building education bureaucracy, our kids would be among the best educated in the world.
Great idea. But before we go too far down that path, let's ask one question: Just who is responsible for the quality of education in our schools anyway?
"Raising police pay and undertaking fundamental reform: a win for city, taxpayers and police officers"
As printed in the San Diego Daily Transcript; April 19, 2007
Steven Francis, Chairman and Founder
Thursday, April 19, 2007
Mayor Jerry Sanders has negotiated an important new contract with city police officers -- one that's good for the city, police officers and taxpayers.
The new contract comes at a critical time: Concern over crime has grown in San Diego, while residents are worried about the city's ability to retain members of its police force. Providing a competitive compensation package to city police officers is key to retaining an experienced and effective force fighting crime.
As printed in the San Diego Daily Transcript; April 12, 2007
Vince Vasquez, Senior Policy Analyst
Thursday, April 12, 2007
Tax Day is around the corner, and many residents will be filing for the new federal telephone tax refund found on their forms. But if some at City Hall have their way, San Diegans may soon be paying a 9-1-1 phone tax that will leave some wanting to cut their cords.
"When Short Term Expediency Trumps Long Term Competitiveness: Two Cautionary Tales"
As printed in the San Diego Daily Transcript; April 5, 2007
Steven Francis, Chairman and Founder
Thursday, April 5, 2007
General Motors (GM) and the City of San Diego have something in common: they made short-term pension decisions while under intense pressure from labor unions that are now costing both organizations dearly.
"Small is Beautiful: The Importance of Start-up Companies to San Diego’s Prosperity"
As printed in the San Diego Daily Transcript; March 29, 2007
Steven Francis, Chairman and Founder
Thursday, March 29, 2007
Entrepreneurial companies are critical to San Diego’s economy. Unlike many regions, which have large companies that dominant the corporate landscape, much of San Diego’s job growth is the result of small companies taking an idea from the lab bench and the drawing board to the market. These companies have helped transform San Diego, from largely a military town, in which the level of defense spending dictated our economic conditions, to one in which the diversity of our technology-led economy has made the region the envy of the world. The number of firms that started in San Diego and have grown into the major players in their respective industries is impressive. …Who knows which new start-up company will be San Diego’s next Qualcomm?
"Keeping the NFL in Mission Valley: Quarterback Needed"
As printed in the San Diego Daily Transcript; March 22, 2007
Steven Francis, Chairman and Founder
Thursday, March 22, 2007
Sometimes I think San Diego would benefit if some of our elected officials took a long “time out” and remembered that their job is not about “them” but about “us”. The latest moment of the absurd came last week when City Attorney Mike Aguirre and Deputy Chief Operating Officer Jim Waring made pensive public pleas to the Chargers to pay more money to the City.
Now I don’t know about you but if I wanted a business partner (and that is what the City and the Chargers are) to voluntarily make higher payments to offset my higher costs I would not communicate that desire at a press conference. Instead, I would pick up the phone and call them.
As printed in the San Diego Daily Transcript; March 15, 2007
W. Erik Bruvold, President and CEO
Thursday, March 15, 2007
Public safety is the most basic of municipal services and San Diegans are worried. In the latest San Diego Institute/Competitive Edge Research and Communication Barometer, 15.3% of city residents mentioned “crime and public safety” or “police pay” as the local issues that concerned them the most. Outside of the City, such concerns were even more pronounced, with 19.6% of residents in the rest of the county ranking public safety as their top issue.
As printed in the San Diego Union Tribune; March 9, 2007
Steven Francis, Chairman and Founder
Friday, March 9, 2007
With another deadline for completion of the city of San Diego's 2003 audit having come and gone, it is time for the city to stop pointing the blame at its auditors and redouble efforts to provide transparency to taxpayers about the specific steps the city is taking to resolve KPMG's outstanding concerns. The city must also work harder to foster open communication with its auditors and utilize the audit process as an opportunity to strengthen its system of internal controls over financial reporting in order to improve the city's performance and accountability to the taxpayers.
"San Diego and Baja: A Critical Economic Partnership"
As printed in the San Diego Daily Transcript; March 8, 2007
Steven Francis, Chairman and Founder
Thursday, March 8, 2007
San Diego and Baja: A Critical Economic Partnership
San Diego is uniquely situated as the largest city directly on the border with our southern neighbor and our economy is intertwined with Baja’s. Citizens of this emerging super-region benefit when both San Diego and Mexico prosper.
According to recent trade data 98% of San Diego exports and 77% of imports are with Mexico. Mexican citizens spend well over $5 million each day in San Diego. Tens of thousands of jobs in a wide variety of fields now depend on the healthy trading relationship between San Diego and our neighbor to the South.
As printed in the San Diego Daily Transcript; February 23, 2007
Steven Francis, Chairman and Founder
Thursday, February 22, 2007
If the draft ordinance passed on February 5th by the San Diego City Council becomes law San Diego’s experiment with a strong Mayor form of government will be over before it really began and we will get to see what municipal government under a drastically weakened executive and a significantly strengthened district-elected legislative branch looks like. Watch your pocketbooks. If you were hoping for real reform, don’t hold your breath.
As printed in San Diego Daily Transcript; February 8, 2007
Steven Francis, Chairman and Founder
Thursday, February 8, 2007
When local governments find themselves in a fiscal crunch, tax increases are among the first "solutions" to be floated, preferably of the sort that is hidden out of public view (have you looked at all the taxes buried in your phone bill lately?).
Of course, raising taxes shifts responsibility for the fiscal mess away from politicians and bureaucrats, and onto taxpayers who did not create the mess, but are tasked with paying for it.
As printed in San Diego Daily Transcript; January 25, 2007
W. Erik Bruvold, President & CEO
Monday, February 5, 2007
$3 billion, the size of the City of San Diego's unfunded debts and obligations, is a LOT of money. That comes out to almost $2,4000 for each man, woman and child in San Diego. To quote Senator Everett Dirksen, a billion here a billion there and soon we are talking about serious money.
As printed in San Diego Daily Transcript; January 11, 2007
Steven Francis, Chairman and Founder
Thursday, January 11, 2007
New ideas matter, in fact, they drive debates. These ideas determine what is seen as possible and what is discarded. They shape conversations.
For too long San Diego politics has suffered from a deficit of ideas. Our City has a political culture which encourages a "go along, get along" approach to public policy. In the words of one commentator, the establishment doesn't like those people who would "spoil the happy mood of our perpetual beach party."
As appeared in San Diego Union Tribune; November 17, 2006
Steven Francis, Chairman AMN Healthcare Services, Inc. and former 2005 Mayoral candidate
Friday, November 17, 2006
Hard times require hard choices. That phrase came to mind when Mayor Sanders unveiled his five year financial forecast showing a $5 billion dollar debt, a $794 million structural deficit, and $394 million in cuts that only gets the City half way toward a balanced budget.
