KPCC News In Brief

Posts about “Business/Economy” Category

• State budget cuts would limit poor women's birth control access

  The state could save more than $34 million by ending some family planning programs. KPCC’s Patricia Nazario says some Southland women’s health advocates plan to protest those proposed cuts tomorrow.

  Patricia Nazario: The staff of Planned Parenthood doesn’t want the state’s budget trimming to touching its turf. The organization is rallying patients, volunteers, and supporters to show up for a noontime protest and an evening vigil in front of the governor’s downtown L.A. office.

  Health care activists say that for every dollar California puts into family planning and women’s cancer screening programs, the federal government matches $9.

  Last week, the governor acknowledged that every cut in state programs and services will inflict real pain. But, he added, California’s government could become insolvent unless he and Sacramento lawmakers dramatically scale back spending. Analysts say the state faces a $24 billion budget gap next fiscal year.

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  • June 2, 2009 9:49 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Cortines defends summer school cancellation due to budget cuts

  At an L.A. Unified news conference today Superintendent Ramon Cortines defended his decision to eliminate summer school for more than 200,000 students this year. KPCC’s Adolfo Guzman-Lopez has more.

  Adolfo Guzman-Lopez: Sacramento funding cuts have already forced the district to slice more than half a billion dollars from its current budget. The red ink keeps flowing. By cancelling summer school, L.A. Unified will save $34 million. The district will still have to cut more than $100 million elsewhere. Superintendent Ramon Cortines doesn’t relish the task.

  Ramon Cortines: How would the public deal if it was their own home, that if they got a bill on the latter part of May, that they had to make a payment on July 1 and didn’t have a savings account to do that? And that’s what’s happened to this district.

  Guzman-Lopez: Cortines spared a summer school program for about 74,000 high school students short of graduation credits. He said he fears for the safety of some students who won’t have a place to go to this summer. Without offering specific suggestions, Cortines suggested that more taxpayers take action to protect vital services like public schools.

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  • May 29, 2009 4:52 PM
  • Categories: Business/Economy, Education

• Housing prices down, sales up

  Prices are down – so sales are up. It works that way in just about every business – and real estate is no different. KPCC’s Nick Roman has the April housing sales numbers from the California Association of Realtors.

  Nick Roman: Housing prices over the last year are down nearly 44 percent in the Inland Empire, down 31 percent in L.A. County, down almost 27 percent in Orange County. But percentages mean nothing. What matters are dollars – so the house priced at the Inland Empire median of $157,000 is $68,000 cheaper than it was a year ago.

  The realtors’ association says home prices might be as low as they’re gonna go – and first-time homebuyers are jumping in. April sales in the Inland Empire were double what they were a year ago. They’re up 43 percent in L.A. County – but up only 13 percent in Orange County.

  Homes are more expensive there – and getting a big loan is tough. The California Association of Realtors says that’s why the inventory of homes above a million dollars is up to 17 months. But for houses under a half-million dollars, sales are booming – and the inventory is down to only three months.

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  • May 28, 2009 11:21 PM
  • Categories: Business/Economy

• School districts trim summer courses to control costs

  Tight budgets are prompting Los Angeles public education districts – from grade school through community colleges – to cut many summer classes this year. KPCC’s Cheryl Devall reports that administrators say they have no choice.

  Cheryl Devall: Summer school won’t happen for most elementary and middle school students in the Los Angeles Unified School District. Its officials there say they have to cut more than $130 million before the current school year ends, and summer school was one place to do it.

  They say that’s because California may cut more than $5 billion from its education budget – and because sales and property tax revenues are down. L.A. Unified high school students who need to make up graduation requirements and core classes will be able to take courses this summer.

  So will students with disabilities in the Extended School Year program. Students who’d hoped to take summer courses in the L.A. Community College District won’t be as lucky. Several of its campuses are also cutting summer sessions to save money.

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  • May 28, 2009 4:55 PM
  • Categories: Business/Economy, Education

• Fire officials don't like state borrowing revenue from counties

  The state’s providing less money this year for firefighting, so public safety is more important than ever, Southern California fire officials said today as they announced a new campaign.

  Los Angeles County Fire chief Mike Freeman says he’s concerned about the state’s plan to borrow property tax revenues from counties. Freeman says that even though emergency programs are a state priority, he’s responding to more emergencies these days.

  Mike Freeman: “Buying equipment, buying fuel, fuel has come down but it’s still very expensive. All these things come into play, so we do have a little bit of a fallback right now. But that money is going fast and the basic principle of public funding is that you do not pay for ongoing costs with one-time monies.”

  Along with chiefs from Orange County and Ventura County, Freeman supports the new regional “ready, set, go” action plan. That advises people who live in wildfire-prone areas to prepare their homes and leave early when there’s a risk.

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  • May 27, 2009 4:11 PM
  • Categories: Business/Economy, Environment

• Health care advocate decries proposed cuts to Healthy Families

  One of the many programs Governor Schwarzenegger is proposing eliminating is Healthy Families. The $250 million program provides health insurance for kids in low-income families that make too much to qualify for Medi-Cal.

  Howard Kahn is CEO of L.A. Care Health Plan, which administers the Healthy Families program in L.A. County. He says without Healthy Families, a quarter of a million kids in L.A. County alone would lose health coverage. And that, says Kahn, would mean that many families would no longer be able to get their kids basic primary care.

  Howard Kahn: “They are going to end up in emergency rooms. They are going to end up in both the county and the community clinics that we’ve got throughout Los Angeles. Those folks have already been seeing an increase in use because of the high unemployment rates. So we are going to have more crowded emergency rooms. That’s no way to run a health care system.”

  Kahn spoke on KPCC’s “AirTalk.”

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  • May 27, 2009 4:09 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• Health care advocates warn cuts could lead to higher costs elsewhere

  During a budget hearing at the state capital today, more than 100 people testified on proposed cuts to state medical insurance for low-income Californians. Governor Schwarzenegger suggested the cuts to help close a $24 billion deficit. KPCC’s Julie Small reports that health care advocates warned California will end up paying more for the cuts in the long run.

  Julie Small: One after another, health care activists urged the state’s budget conference committee to reject the governor’s proposed cuts. Herb Meyer, a retired Air Force veteran from Marin County, lost the use of his legs in a boating accident and spent his life savings on medical and support care.

  The 78-year-old now depends on the state’s Medi-Cal program for coverage. From his wheelchair, Meyer told legislators that the governor’s idea to cut so-called “optional” Medi-Cal benefits would hurt recipients.

  Herb Meyer: They’re going to take away their eyeglasses. They’re going to take away their podiatric care. They’re going to take away many of the things that are going to be difficult for them to get.

  Where’re they going to go? They’re going to go to emergency rooms – all this type of thing. It’s going to cost the government more money than they’re going to save in doing these things.

  Small: Meyer said he’s already lost some Medi-Cal drug benefits from the budget cuts the legislature made earlier this year. That cost him $95 of his monthly $2,000 retirement check.

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  • May 27, 2009 3:25 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• Cuts imminent for state services

  A hefty cut to California’s Healthy Families program is one solution Governor Arnold Schwarzenegger is offering to help offset the state’s projected $24 billion budget shortfall.

  Jean Ross heads the California Budget Project. She told KPCC’s Larry Mantle that the proposed cut would leave close to 950,000 children in the state without medical coverage.

  Jean Ross: “The governor is also proposing to scale back medical coverage for children and that would add an additional about 472,000 children to the ranks of the uninsured. So this would have a dramatic increase on the health status of California’s children.”

  If the legislature approves $5 billion in cuts the governor’s proposed to state programs, programs including universities, state parks, and prisons would be in line for program and personnel reductions. The governor’s also suggested saving more than $1 billion by eliminating the CalWORKs welfare program. The governor’s expected to propose $3 billion in additional cuts next week.

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  • May 27, 2009 2:35 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• Fire officials warn budget cuts may affect emergency response

  Fire officials are warning Southland cities and towns that budget cuts may affect emergency response. KPCC’s Molly Peterson says that’s one reason they’re asking people to clear out when a wildfire approaches their neighborhoods.

  Molly Peterson: On a hillside near a community center in Diamond Bar, fire officials showed off water-dropping helicopters hitting targets. A hand crew sawed and clawed up a hillside as it would to create fire breaks in a real event.

  State, federal and local fire officials all are on hand to endorse this season’s public campaign – called Ready, Set, Go. The goal is to get people to prepare their houses and then leave early in the event of a fire.

  Chiefs from Ventura, Los Angeles and Orange counties said that the way people prepare for fire season matters more now that lower local revenues and the state budget deficit are squeezing government services. L.A. County has frozen hiring for non-emergency staffing, and every fire district reports less money for what’s called mutual aid – cooperation between counties out when a fire hits.

  Local fire officials and fire unions have lobbied Sacramento to minimize cuts. Now they’re asking people who live in wildland areas to help them handle hot dry weather and the risk of fire.

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  • May 27, 2009 2:33 PM
  • Categories: Business/Economy

• LA City Councilman Alarcon wants to establish banking districts

  Los Angeles City Councilman Richard Alarcon is pushing the city to establish banking districts throughout L.A. KPCC’s Frank Stoltze reports the idea is to encourage banks to open branches in poor neighborhoods.

  Frank Stoltze: Banks are hard to find in neighborhoods like Pacoima, Boyle Heights, and South L.A., says Councilman Alarcon.

  Richard Alarcon: We have 300,000 families that do not participate in banking, and they’re using check cashing places and paying exorbitant fees to do things that we take for granted.

  Stoltze: Alarcon says that’s partly because many people struggling to make ends meet lack financial know-how. Mayor Antonio Villaraigosa has launched a campaign to encourage people to open bank accounts.

  Alarcon’s proposed banking districts would offer incentives like property tax breaks and deposits of city money to financial institutions that open in poor neighborhoods. The proposal is similar to one in New York, which has established 25 banking districts.

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  • May 25, 2009 10:36 AM
  • Categories: Business/Economy

• Students skip school to protest planned teacher layoffs

  Several hundred L.A. Unified students skipped class this morning and marched to school district headquarters in downtown L.A. to protest planned teacher layoffs. KPCC’s Adolfo Guzman-Lopez has more.

  Adolfo Guzman-Lopez: Most of the protestors were from Santee High School south of downtown. Chanting and waving homemade signs they marched two miles and circled the 29-story L.A. Unified building.

  The school board has voted to lay off thousands of instructors, many of them new teachers. New hires represent a large portion of Santee High’s teachers, and ninth grader Maria Del Angel says it’s unfair cuts will affect her campus more than others.

  Maria Del Angel: I want to be a nurse and a doctor. And we don’t have enough education for us right now. That’s why we’re trying to keep our teachers with us because we really need them, and we cannot let them go like that.

  Guzman-Lopez: Schools officials said students should voice their opinions, but shouldn’t skip school to do so. Superintendent Ramon Cortines met with student leaders and engaged in a spirited debate about budget cuts. In spite of this and other much larger protests, the school district’s likely to move ahead with teacher layoffs and other cuts in the next few weeks.

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  • May 22, 2009 4:17 PM
  • Categories: Business/Economy, Education

• Fewer enroll in this year's LA Marathon

  The 24th Annual Los Angeles Marathon is Monday morning, but police will start closing some downtown streets Sunday night.

  Organizers expect more than 35,000 people to participate in the 26-mile distance run, bike tour, and 5K run/walk. Professional endurance-athlete coach Steve Mackel will run – as he has a half dozen times before. He says fewer people enrolled this year because organizers changed the date several times.

  Steve Mackel: “They wanted to get it off of Sunday, so they thought maybe President’s Day Monday, and then they moved to this day. But, traditionally, all across the United States, marathons are done on Sunday. It brings a ton of money into the city, it creates jobs, the spectators come out, it creates a sense of community. The positives outweigh the one day of negative.”

  Religious groups had complained that road closures for Sunday marathons make it difficult for congregants to get to their places of worship. Several L.A. City Council members have introduced a motion that, if approved, would return the L.A. Marathon to a Sunday in March beginning next year.

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  • May 22, 2009 4:14 PM
  • Categories: Business/Economy, Sports/Recreation

• Over 1,000 homecare, domestic workers protest protest proposed cuts

  A crowd of more than a thousand Southland homecare providers and their patients and supporters converged on downtown Los Angeles today. They were protesting Governor Schwarzenegger’s proposed cuts in home care services.

  Organizer Eliseo Medina of the Service Employees International Union says the governor’s May revise budget would reduce most workers’ pay from 11 or 12 dollars to 8 dollars an hour – minimum wage.

  Eliseo Medina: “They’re being a penny wise and a dollar foolish. If they force all these home care clients out of their homes, where they gonna send them? To nursing homes? They are four times more expensive than home care. This is a bad decision. What the governor proposes is gonna wind up costing them more money, not less.”

  Governor Schwarzenegger has said the huge budget shortfall – made worse by last Tuesday’s defeat of several budget ballot measures – is forcing him to make deep cuts in state programs.

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  • May 22, 2009 4:09 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• Community colleges could lose hundreds of thousands of students due to cuts

  The chancellor of California community colleges says the system could lose hundreds of thousands of students next year because of the state’s fiscal crisis. Jack Scott told KPCC’s Larry Mantle that the system won’t be able to afford the number of students it’s been serving. He said proposed budget cuts will force local community colleges to reduce class offerings.

  Jack Scott: “If I were making an estimate today, I’d say at least 250,000 students that will not be served next year because the colleges cannot bankrupt themselves in terms of offering the schedule and so forth, so they’re going to have to make very drastic cuts.”

  Scott says the state’s community colleges will have to be cut because of the state’s fiscal situation. It’s the size of the reduction that he doesn’t agree with. The colleges have seen enrollments spike as unemployed people return to school, but per-student funding hasn’t kept pace.

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  • May 22, 2009 4:06 PM
  • Categories: Business/Economy, Education

• Actress Carteris says SAG members should support contract

  Screen Actors Guild members have until June 9th to vote for or against a contract with film and primetime TV producers. 600 of them attended an information session on the contract last night in Hollywood. Actress Gabrielle Carteris of “Beverly Hills 90210” fame said Guild members should ratify the contract.

  Gabrielle Carteris: It’s important for us to do this deal because it gets us back to work. I think that L.A. and Hollywood has not been working. In film, people want to be working. In TV, we want to have the rates that we think…

  “Look, TV is truly the money maker still. You know, in seven years that might be different, but the truth is, right now, it is the money maker. And we needed those bumps, we’ve lost a year of bumps.”

  By “bumps,” Carteris means the wage and residual increases that SAG members have missed out on because they’ve been working under the terms of a contract that expired last summer.

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  • May 22, 2009 12:01 PM
  • Categories: Arts, Business/Economy

• SAG members attend info session on tentative TV/film contract

  Screen Actors Guild members have a big decision to make – whether to ratify or reject a proposed contract with film and primetime TV producers. About 600 guild members filled a hotel ballroom in Hollywood last night for a presentation of the contract’s details.

  Although he opposes the deal, SAG President Alan Rosenberg attended the meeting. He says the contract would allow the producers to make a lot of money on the Internet without paying actors enough.

  Alan Rosenberg: “What they’re trying to do is change the paradigm, they’re trying to create an entirely new business model where they can only concern themselves with the people they perceive they need.

  “Middle class actors like myself, background performers, stunt performers are not significant to our employers. So I’m hoping the members vote this down. I’m happy we’re going out to them, but would only be truly happy if they vote it down.”

  Rosenberg was not speaking on the Guild’s behalf. The contract does establish some residuals and jurisdiction for SAG members on the Internet. Guild members have until June 9th to mail in their ballots.

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  • May 22, 2009 10:55 AM
  • Categories: Arts, Business/Economy

• City college administrators worry budget crisis may wipe out summer session

  Summer sessions at California community colleges are supposed to get underway in a couple of weeks. But city college administrators worry the state budget crisis will wipe out the summer session. KPCC’s Shirley Jahad reports.

  Shirley Jahad: Just as more newly unemployed people are flocking to community colleges, administrators are facing dramatic cuts. Dr. Jamillah Moore – the president of L.A. City College – says her staff are holding emergency meetings to talk about cutting upcoming summer sessions.

  Dr. Jamillah Moore: We are having those discussions with our constituency groups this week and next week, so we hope to have that decision before May is over because we have to.

  Jahad: Moore says the situation is grim. She just doesn’t know how grim it will be. She says not knowing this close to the summer session and the new fiscal year is like dealing with a moving target. News of how deep the cuts will go is to come – sooner or later – from state lawmakers and the governor.

  California community colleges have added 150,000 more students this year – without any more funding. More than 2-and a half million people are enrolled.

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  • May 21, 2009 8:37 PM
  • Categories: Business/Economy, Education

• Men charged with phony ATM withdrawal scheme

  Authorities charged four San Fernando Valley men today in an alleged electronic crime scheme. KPCC’s Alex Cohen says the scheme involved phony ATM withdrawals.

  Alex Cohen: The scheme involves two dozen victims, including two banks. Together they lost more than $400,000. The defendants allegedly gained access to personal ID numbers by placing so-called skimming devices on automatic teller machines in Southern California and at least one other state.

  The devices read and record ATM card numbers while wireless cameras record users’ personal access code entries. Then the skimmers transmit that information to identity thieves nearby.

  The district attorney’s Bureau of Investigation began looking into the Southern California case last August after Citibank alerted them to possible ATM fraud.

  Bail for the four men charged was set at $1 million each. Similar skimming rings have been surfacing around the country.

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  • May 21, 2009 8:32 PM
  • Categories: Business/Economy, Criminal Justice

• Governor Schwarzenegger withdraws borrowing plan, looks for cuts

  Governor Schwarzenegger’s withdrawn his plan to balance the state budget with 5-and-a-half billion dollars of borrowed money. Instead, he’s asking state agencies to forward more ideas about where they can cut. Jason Dickerson with the Legislative Analyst’s Office told KPCC’s “Patt Morrison” that the governor was right to reverse his course on borrowing.

  Jason Dickerson: “It could well be a habit the state gets into, but the constitution of the state places fairly strict limits on debt that can be issued. And it really would be, potentially, in violation of those requirements.”

  California’s working with few good fiscal options in the face of a projected $21 billion deficit.

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  • May 21, 2009 3:38 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• State services still at risk, despite appeals for funding to federal government

  California officials are borrowing a strategy from the financial industry – trying to convince the federal government to front some cash fast because this state is too big to fail. Jason Dickerson with the state Legislative Analyst’s Office isn’t sure that approach will spare state services from major cuts.

  Jason Dickerson: “The governor’s $750 million proposal to cut Medi-Cal funding that would require approval from the federal government, that is a pretty risky proposition on which to balance the budget over the next year. We don’t know if the federal government will go along with that. But in terms of looking at selling some state assets and some state lands, rethinking how our boards and commissions work, we think that is a good idea and the legislature should look at that.”

  Federal Treasury Secretary Timothy Geithner’s already saying that California shouldn’t rely on much more financial help from Washington.

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  • May 21, 2009 3:36 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• LAUSD superintendent discusses budget dilemmas

  L.A. Unified Superintendent Ramon Cortines plans to discuss possible cutbacks with union bargaining units tomorrow. The school district has to cut an additional $130 million from this year’s budget because of the failure of five statewide ballot measures this week. Cortines told KPCC’s Larry Mantle he’s trying to avoid further layoffs.

  Ramon Cortines: “That means the bargaining units are going to have to work with us at furlough days, they’re going to have to look at maybe freezing salaries, etc.”

  Union leaders have recommended that the district use all the stimulus money immediately, rather than spreading it across two years. Cortines has resisted that, but he says he’d reconsider using more of the money this year if the teachers’ union would agree to furloughs or other cutbacks. Cortines says summer school and after school programs may also go under the budget knife.

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  • May 21, 2009 2:27 PM
  • Categories: Business/Economy, Education

• Cuts likely in state health and human services budget

  The secretary of California’s health and human services agency says difficult cuts lie ahead, given the state’s projected $21 billion deficit. Secretary Kim Belshe told KPCC’s Larry Mantle that her agency’s considering various proposals.

  Kim Belshe: “Basically we are compelled, given nature of state’s fiscal crisis, to look at every program that’s not required by the federal government. We are endeavoring to put forward proposals, though, that target resources to those who are most in need.”

  Belshe says one proposal would eliminate coverage for more than 200,000 children in the state’s Healthy Families program. The state could also drop its support of HIV and AIDS education and prevention programs. Belshe says it’s also likely that clinics will have fewer state resources to work with after the cuts.

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  • May 21, 2009 2:24 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Congressman Sherman talks about credit card bill

  The U.S. House overwhelmingly passed a bill today that would limit credit card issuers’ ability to raise interest rates without notice. But the bill does not cap the interest rates those companies can charge. San Fernando Valley Congressman Brad Sherman concedes that the bill won’t, by itself, solve the problem of credit card debt.

  Brad Sherman: “To pass interest rate limitations I think is, would be difficult through this Senate even with 59 or 60 Democratic senators. The fact that we had to work so hard and for so long just to make sure people are not gouged by sharp practices shows you that the banks are not without power here in Washington.”

  Sherman, a Democrat, is one of the co-sponsors of the bill. He spoke with KPCC’s Larry Mantle. The bill does prohibit credit card companies from raising interest rates after only one or two late payments. If President Obama signs the bill into law, issuers will have to wait to boost a customer’s interest rate until a payment is more than 60 days late.

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  • May 20, 2009 2:44 PM
  • Categories: Business/Economy, Politics/Public Affairs

• California voters reject state spending cap

  LOS ANGELES (AP) — California voters have rejected a ballot measure that would have created a state spending cap while prolonging temporary tax increases.

  Proposition 1A was the centerpiece of efforts by Gov. Arnold Schwarzenegger and other state leaders to fix California’s ongoing fiscal problems. It also would have strengthened the state’s rainy day fund.

  The measure’s defeat means another measure that would have restored more than $9 billion to schools cannot be enacted even if voters approve it. That measure also was trailing in early returns Tuesday.

  Proposition 1A generated the most opposition among the six measures on Tuesday’s ballot. State employee unions opposed the spending cap, while anti-tax groups criticized the $16 billion in tax increases it would have triggered.

  Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  • May 19, 2009 9:40 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Contract ratification ballots being mailed to SAG members

  Members of the Screen Actors Guild will get to vote twice. They won’t be breaking the law – today the Guild begins mailing ratification ballots for its proposed contract with film and prime-time television producers. KPCC’s Brian Watt has the story.

  Brian Watt: The envelopes… please! SAG members have been working under the terms of a contract that expired last July. They’ve watched contract talks break down and pick up again. They’ve seen their chief negotiator replaced.

  Few will say they’re completely satisfied with the tentative contract agreement with the producers. But 34 Guild members appear in a video on SAG’s Web site to promote its virtues. It increases pay and residuals, they say.

  Ed Begley Jr.: And it gives us increased pension and health contributions. Everybody knows how important that is.

  Watt: That’s Ed Begley, Jr. Actor Jason George chimes in next …

  Jason George: On top of all that, this deal will finally get us paid when our film and television work is streamed at sites like Hulu.

  Watt: SAG President Alan Rosenberg is not in the video. He’s with a more militant faction of Guild members that contends the deal doesn’t go far enough. They’ve vowed to fight it.

  The Guild will hold an information session about the agreement in Hollywood Thursday night. Members have until June 9th to get their ballots in.

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  • May 19, 2009 4:04 PM
  • Categories: Arts, Business/Economy

• Obama administration announces steps toward electricity standards

  Officials in the Obama administration say they plan aggressive action to bring the electric power grid in to the digital age. The so-called “smart grid” would help utilities manage supply and demand on the electrical grid. Energy Secretary Steven Chu and Commerce Secretary Gary Locke today announced 16 steps to create uniform electricity standards for the grid.

  Fred Fletcher chairs a national organization that’s helping to coordinate smart grid technologies between utilities. He told KPCC’s Larry Mantle that many Southern California utilities have been moving forward on a “smart grid.”

  Fred Fletcher: “Smart grid, most useful for those utilities that are taking on renewables, and also those that have constrained transmission systems. In California, we’re facing both. We’re bringing in a lot of renewables and our transmission grid needs to be supplemented.”

  Fletcher is also assistant general manager for Burbank Water and Power. The Obama administration hopes to put the first 16 standards in place during the next few months.

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  • May 18, 2009 2:04 PM
  • Categories: Business/Economy, Politics/Public Affairs

• GM notifies dealers of closures a day after Chrysler

  Chrysler dealers heard from company headquarters yesterday. Today, the same thing’s happening to General Motors dealers. The struggling automaker is telling 1,100 of its dealerships across the country that it won’t renew their contracts. KPCC’s Brian Watt explains how the two break-ups are different.

  Brian Watt: Chrysler filed for bankruptcy protection two weeks ago. It’s listed the dealerships it intends to close in a court document. General Motors is trying to stay out of bankruptcy. It’s not disclosing which dealerships are on the chopping block – instead, it’s notifying each dealer by mail.

  Jack Nerad: Well, I think the mood has been “walking on eggs” for the past several weeks.

  Watt: That’s Jack Nerad of Irvine-based KellyBlueBook.com. GM’s spent weeks working on a major restructuring plan. Step one: cutting almost one-fifth of its dealerships. So Nerad says there’s not a lot of swagger on GM car lots.

  Nerad: If you’re suspecting that you’re going to be terminated, then you’d be very reluctant to order more inventory, to order parts inventory, to do anything in terms of training people.

  Watt: The bankruptcy process lets Chrysler order dealerships to shut down in just a few weeks. But unless General Motors goes that route, it must wait for contracts with its dealerships to expire – in October of next year.

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  • May 15, 2009 7:41 PM
  • Categories: Business/Economy

• Biden visits low-income housing development in South LA

  Vice President Joe Biden praised a South Los Angeles housing and health program as a standard that should be replicated nationwide. Biden visited several apartments at Esperanza, a low-income housing development near USC.

  He said the program is one of the first to receive grant money under the Federal Recovery Act, because it’s ready to hit the ground running. Esperanza educates area renters about Asthma triggers and the dangers of lead paint.

  Vice President Joe Biden: “We know the leading indicator of a high-risk for lead poisoning is a high level of poverty. We know that if we’re truly going to really revitalize our communities and help families that are most vulnerable, we need to invest that money now.”

  Biden says Esperanza is getting $875,000 from the federal government. The program won approval last year, with high marks, but the Department of Housing and Urban Development didn’t have the money until the Recovery Act. The program’s director says she’ll use the grant to pay trained staffers who’d considered volunteering their time.

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  • May 15, 2009 4:31 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• State Assembly speaker responds to governor's budget proposals

  The governor’s proposals for the budget leave lawmakers with some very tough choices, state Assembly speaker Karen Bass told KPCC’s “AirTalk.”

  Karen Bass: “None of us want to do this. I mean these very proposals were on the table a few months ago and we were able to cobble together the budget without borrowing from local government. If we face a $21 billion deficit, I don’t believe we’re going to be able to put those proposals aside. I believe that borrowing from local government is going to be right on the table.”

  Governor Schwarzenegger’s proposed that the state borrow $2 billion from local governments and pay it back within three years. He says that if voters reject six budget-related ballot measures on Tuesday, California’s likely to be $21 billion in the red. There’ll be a much smaller deficit – a little more than $15 billion – if the measures pass.

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  • May 15, 2009 2:59 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Mayor says police, fire shouldn't be cut to balance budget

  Los Angeles Mayor Antonio Villaraigosa is fighting moves by the city council to freeze hiring in the L.A. police and fire departments. Some council members say the plan is necessary to balance the city’s budget. KPCC’s Shirley Jahad has more.

  Shirley Jahad: During a press conference, top brass from the L.A. police and fire departments lined up behind Mayor Villaraigosa. He blasted the plan the city council budget committee had approved.

  Mayor Antonio Villaraigosa: They voted to renege on a deal we made with the residents of the city of Los Angeles when asked to pay a little more for trash pickup in exchange for a larger police force and safer neighborhoods.

  They voted to devastate public safety by taking a thousand officers off the streets over the next two years. And they voted to undermine the fire department by removing 120 officers through attrition.

  Jahad: The city is grappling with a shortfall of at least $500 million for the next fiscal year. The mayor insists that there are other places in the budget to make cuts and ask for labor concessions.

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  • May 14, 2009 4:24 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Mayor criticizes suggested police, fire department hiring freeze

  Los Angeles Mayor Antonio Villaraigosa is blasting city council members who approved a plan to stop hiring police officers and firefighters. The city’s facing a $530 million budget shortfall. Even in this tough economy, the mayor told reporters, cops are the last category of employee to cut.

  Mayor Antonio Villaraigosa: “Now I know some of the critics are saying we can’t afford to pay for more police officers, that our hiring plan will bankrupt the city, that this is the fiscally responsible course of action. And I will say to them, there is nothing more irresponsible than balancing the books on the backs of cops of firefighters and giving up the fight against gangs and gun violence for the sake of short-term budget relief.”

  The L.A. City Council budget committee approved the plan that would leave 600 fewer police officers in the LAPD next year and more than 100 fewer city firefighters. The full council is scheduled to vote on the plan Monday.

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  • May 14, 2009 3:28 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Mayor Villaraigosa asks for employee concessions to save city jobs

  The city of Los Angeles may start to lay off workers as soon as July 1st if public employee unions don’t agree to concessions, Mayor Antonio Villaraigosa said today. On KPCC’s “Patt Morrison,” he repeated his call for union workers to accept bigger pension contributions, unpaid time off, and an end to annual cost of living adjustments, or COLIs.

  Mayor Antonio Villaraigosa: “All of us can take a cut here, work together so that we don’t have to lay off people in the magnitude that we would if they’re taking COLIs, not agreeing to contribute 2 more percent to their pension funds, taking one hour a pay period, all of that. Those three things could save 2,200 jobs and the essential services.”

  The city is facing a $530 million budget gap. To close it, an L.A. City Council committee has recommended that city employees take 26 unpaid days off next fiscal year, and that the city freeze police hiring, lay off at least 1,200 workers, and cut services.

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  • May 14, 2009 3:23 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Mayor tries to balance budget, maintain commitment to hire 1,000 new police

  Los Angeles Mayor Antonio Villaraigosa is exchanging heated words with critics on the city council budget committee. They’ve urged him to freeze hiring more police officers so the city can balance its budget. Villaraigosa campaigned for mayor on a promise that 1,000 new cops would join the LAPD on his watch.

  Mayor Antonio Villaraigosa: “In one fell swoop with this decision by the majority on the budget committee, we are going to eliminate a thousand officers in the next two years. It’s unacceptable and the vast majority of people in this town don’t support it.”

  On KPCC’s “Patt Morrison,” the mayor said Los Angeles is experiencing its lowest crime rate in 55 years.

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  • May 14, 2009 2:57 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Chrysler dealerships closing amid automaker's reorganization

  Chrysler has told a quarter of its dealerships across the country that it’s time to shut their doors. Thirty-two dealerships in California got the bad news today – including Car Pros Chrysler Jeep in Carson. Ken Phillips bought the dealership three years ago.

  Ken Phillips: “I’m setting here with $5 million worth of inventory that they’re not gonna buy back. We just have to try and liquidate it. We’ll have a huge fire sale. It’s just a huge money loser.”

  Chrysler filed for bankruptcy protection two weeks ago. Today the automaker’s published a list of dealerships it’s closing. They have until June 9 to wrap up their operations.

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  • May 14, 2009 2:19 PM
  • Categories: Business/Economy

• Latest budget proposal to include plans to sell state property

  The governor’s latest budget proposal reportedly will include plans to sell off the L.A. Memorial Coliseum, the San Quentin State Prison, and other state-owned property. It’s estimated that California could earn up to $1 billion by selling the property, although that cash wouldn’t come in for two to five years.

  L.A. County Supervisor Zev Yaroslavsky calls the proposal to sell the Coliseum “ridiculous.” He told KPCC’s Larry Mantle that the land on which the stadium sits isn’t worth very much since it’s a park.

  Zev Yaroslavsky: “The property is worthless. No developer would buy it. No real estate person would buy it because you can’t do anything with it. So that’s the first issue – this idea that somehow several hundred million dollars can be realized by selling the coliseum is as bogus as a three dollar bill.”

  Yaroslavsky also contends that the state can’t sell the Coliseum because it doesn’t own the actual stadium, only the land. The proposal is part of the governor’s plan to close a deficit projected at $15 billion. Analysts say the deficit could reach $21 billion, if voters reject a half-dozen measures on next week’s ballot. The governor will introduce his budget proposals this afternoon.

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  • May 14, 2009 11:35 AM
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• Mayor Villaraigosa pushes for concessions from city's unions

  Los Angeles Mayor Antonio Villaraigosa yesterday sought to turn up the heat on the city’s labor unions. He wants concessions from them to address a $530 million budget deficit. KPCC’s Frank Stoltze reports.

  Frank Stoltze: The mayor reminded reporters gathered in his City Hall press room that he once worked as a labor union organizer. But he said the cost of living adjustments, or COLAs, that he once fought so hard for are no longer realistic.

  Mayor Antonio Villaraigosa: At a time of unprecedented budget crisis, COLAs just don’t make sense to most people.

  Stoltze: The city faces its biggest budget gap in its history. The mayor wants unions to agree to pay cuts, and to increase contributions to pension funds to avert nearly 3,000 layoffs.

  Villaraigosa: They don’t have to happen!

  Stoltze: Union leaders say they want the city to offer workers early retirement packages. The mayor’s said L.A. can’t afford them. The City Council’s already begun the process of laying off 400 city employees.

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  • May 14, 2009 11:33 AM
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• Craigslist will drop its erotic services ads

  Operators of the Web site Craigslist said it will drop its controversial “erotic services” category. That’s in response to law enforcement officials who’d called the ads a front for prostitution. KPCC’s Alex Cohen has the story.

  Alex Cohen: “Adult services” will replace the “erotic services” category on Craigslist.org, and the site will charge consenting adults a fee for placing those ads. Employees will also monitor every posting before it appears online. Police agencies had criticized Craigslist for refusing to take those steps before.

  Pressure to remove the erotic category followed the recent murder of a masseuse in Boston. The suspect charged in her death, a medical student, told authorities he’d met the woman through Craigslist.

  Craigslist’s chief executive said the new arrangement preserves a place “for legal businesses to advertise” and incorporates the concerns of state attorneys general, free speech advocates, and millions of people who use the site.

  California Attorney General Jerry Brown said changes on the site help prevent the exploitation of teenagers. He added that Craigslist must continue to ensure that the site does not promote teenage prostitution.

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  • May 14, 2009 11:30 AM
  • Categories: Business/Economy, Politics/Public Affairs, Science/Technology

• LA County holds public hearing on budget

  Los Angeles County’s budget is tighter than ever, as the demand for services is higher than ever. That’s one message from today’s public hearing on the county budget. Elizabeth Brennan is a spokeswoman for the Service Employees International Union that represents 55,000 L.A. County workers.

  Elizabeth Brennan: “One in five county residents is on some kind of public assistance. The lines at the social services offices are long. And so how do we come to some sort of compromise when we know that at the same time the budget is very tight?”

  L.A. County supervisors are trying to close a budget gap of more than $400 million. The supervisors plan to eliminate more than 1,600 jobs that are mostly unfilled right now.

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  • May 13, 2009 2:48 PM
  • Categories: Business/Economy, Politics/Public Affairs

• 54,000 jobs lost in Southland international trade sector since 2006

  Last year was a rough one in the Southland’s international trade sector, and this year will be even rougher. So says a report out today from the Los Angeles Economic Development Corporation.

  Economist Jack Kyser says the number of goods containers moving through the ports of Los Angeles and Long Beach dropped 9 percent last year and will fall 13 percent this year. That translates into job losses.

  Jack Kyser: “Since the peak back in 2006, we’ve lost 54,000 jobs in the international trade sector. And that’s a conservative number because there’s no way to track the independent truck drivers who deliver containers to and from the ports, other people that don’t get captured by the government’s job statistics.”

  That’s 54,000 jobs lost in Los Angeles and the four neighboring counties. Kyser says many of those jobs – for the likes of customs brokers and logistics managers – paid well. He expects port activity to begin a modest recovery next year.

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  • May 13, 2009 2:40 PM
  • Categories: Business/Economy

• LA City Council expected to discuss mayor's fiscal emergency request

  Later this week, the Los Angeles City Council is expected to discuss Mayor Antonio Villaraigosa’s request for a fiscal emergency. The action would give the mayor the power to order furloughs and lay off city workers.

  Villaraigosa says the city could cut about a thousand jobs beginning in July if public employees unions don’t agree to salary concessions. Barbara Maynard is with the Coalition of L.A. City Unions. She told KPCC’s Larry Mantle those concessions aren’t necessary.

  Barbara Maynard: “It is not needed if the early retirement program is implemented. Now at the end of the day, it might not get the city all the way to where it needs to get. It saves about 220, 240 million dollars, which is a huge step in the right direction.”

  The mayor has said such an early retirement program is not fiscally sustainable. Maynard disputes that statement. The city of L.A. faces a budget deficit of about half-a-billion dollars. The city is also expecting a $300 million drop in tax revenue.

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  • May 13, 2009 11:46 AM
  • Categories: Business/Economy, Politics/Public Affairs

• New report says Southland port business will continue to drop

  A report out today says tough times in international trade are roughing up a key component in the Southland’s economy. KPCC’s Brian Watt has more.

  Brian Watt: When it comes to the value of goods traded, the Los Angeles Customs District ranks first in the country. The report from the Los Angeles County Economic Development Corporation says that last year, that value grew only 2 and a half percent to $356 billion. The second-ranking U.S. customs district – New York – saw its trade value grow more than 9 percent.

  The Los Angeles/Long Beach Port complex is number 5 in the world. But last year, the number of containers moving through it dropped almost 9 percent. This year, the report says, that number will sink another 13-and-a-half percent.

  The international trade job market reflects that decline – Los Angeles and its four neighboring counties lost more than 5,000 international trade-related jobs last year. That’s not just longshore workers, but other well-paid people including vessel operators and customs brokers.

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  • May 13, 2009 10:51 AM
  • Categories: Business/Economy

• Member of state student association talks about potential Cal State fee increase

  Students in the Cal State University system are likely to pay about $300 more in fees next academic year, if the trustees vote as expected tomorrow. The trustees say that’s their only option amid continued state budget cuts to higher education. Steve Dixon of the California State Student Association told KPCC’s “Patt Morrison” that students like him are caught in the middle.

  Steve Dixon: “It’s almost like a trick in the book. One-third of all increases at the California State University makes, so that whenever they increase our tuition by $100, 33 of those dollars go to financial aid intended for the lower economic scale students so that they won’t be affected, but in the end it does affect them because you end up taking more in loans.”

  Dixon, who’s graduating soon from Humboldt State, said federal money for student loans isn’t keeping up with Cal State fees. He said students are taking out personal loans to cover the cost of their education.

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  • May 12, 2009 3:52 PM
  • Categories: Business/Economy, Education

• Cal State system likely to vote on student fee hikes

  Trustees of the Cal State University system may vote tomorrow to raise student fees an average of $306 next academic year. The officials say the state’s budget constraints leave them with no choice – to cut costs, they’ve already limited admissions to the 23-campus system by 10 percent. Robert Turnage, Cal State’s budget director, told KPCC’s “Patt Morrison” that the state cuts its spending on higher education every year.

  Robert Turnage: “I’ve been working on state budget matters in the capital for about 25 years, and all of my veteran colleagues, none of us have seen anything like this before. So, we’ve already gone through a year where the cuts have been very serious and now it’s quite apparent that the state is facing another round of serious cuts.”

  Turnage said the only way around student fee hikes is expanding class sizes and lowering the quality of a Cal State education. Governor Schwarzenegger projected a $21 billion budget gap for the coming fiscal year if voters don’t approve six propositions on next week’s statewide ballot.

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  • May 12, 2009 3:20 PM
  • Categories: Business/Economy, Education

• Average price of gas in LA County rises 1 percent

  You’re not imagining things. The price of gas is going up in Southern California. The average price of self-serve regular in Los Angeles County rose 1 percent today to about $2.42 cents. That’s nearly nine cents higher than it was a week ago.

  Marie Montgomery with the Automobile Club of Southern California attributes the climb to speculators’ belief that demand will rise when the economy improves.

  Marie Montgomery: “Investors in these commodities are seeing either signs that the economy might be picking up or that countries like China are in fact buying more supply, so they are bidding the price up.”

  Although gas prices are higher now, they’re nothing near what they were this time last year – back then, that same gallon of gas cost an additional $1.40 on average.

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  • May 12, 2009 3:17 PM
  • Categories: Business/Economy

• Villaraigosa calls for city employee furloughs to balance budget

  L.A.’s mayor told a public forum today that the City Council needs to declare a fiscal emergency. KPCC’s Cheryl Devall says that he warned of dire budget consequences if the city doesn’t lay off at least 1,000 employees.

  Cheryl Devall: At a Town Hall L.A. luncheon, Mayor Antonio Villaraigosa said the financial situation in Los Angeles is so bad, the city might run out of money between November and February if it doesn’t take drastic measures. They include letting at least a thousand workers go as soon as July 1st, and requiring almost everyone else on the city payroll to take up to 26 unpaid days off during the next fiscal year.

  Villaraigosa said L.A. faces a budget hole as big as $1 billion unless it acts now. With the City Council and labor representatives, he’s crafting a buyout plan that would permanently reduce the city’s workforce.

  The mayor warned that the reduction could mean cutting many more than 1,000 jobs. High unemployment, slow housing sales, and declining sales tax revenue have meant less money for L.A. Mayor Villaraigosa’s Town Hall comments echoed his remarks when he presented this year’s city budget and called for “shared responsibility and shared sacrifice.”

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  • May 12, 2009 3:15 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA remains one of nation's most expensive areas for renters

  The average rent for a one-bedroom apartment in Los Angeles County is about $1,300 a month. KPCC’s business analyst Mark Lacter says that makes the county one of the nation’s most expensive areas for renters.

  Mark Lacter: “The rule of thumb is that you shouldn’t be paying more than 30 percent of annual income on rent. But it turns out that a wage of at least $25 an hour would be required to meet that 30 percent level – and $25-an-hour jobs are in relatively short supply these days.”

  Lacter says that affordability issue isn’t new. The difference now, he says, is that there are fewer jobs available, and more people looking for low-cost housing.

  In some parts of Southern California, landlords are lowering their rents to attract tenants. More renters are doubling and tripling up so they can afford a place to live.

  Link: Mark Lacter on California’s budget problems; apartment rentals (5/12/2009)
  Link: L.A. Biz Observed

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  • May 12, 2009 3:12 PM
  • Categories: Business/Economy

• LAUSD proposes further retirements to close budget deficit

  Los Angeles Unified administrators unveiled a plan that, if the school board approves it tomorrow, would offer early retirement to 2,500 school district employees. L.A. Unified’s personnel director Wendy Macy says these workers fall under the classified category – a group of jobs subject to budget cuts.

  Wendy Macy: “Our buildings and ground workers. We’re losing almost 700 of them. We’re losing almost 700 of our office staff. This incentive provides a mechanism by which some of our employees who may be thinking about retiring are able to do so in a way that’s more financially manageable for them. And they’re able to do so. And then meanwhile some of our employees who we’ve most recently hired would not have to lose their jobs.”

  If they take the incentive, employees would receive 40 percent of their salary over several years in addition to their retirement benefits. Macy says the district expects up to one-fifth of the workers to take the offer. That would save the district about $6 million. The union that represents these workers backs the plan. So do L.A. Unified’s superintendent and board president.

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  • May 11, 2009 2:18 PM
  • Categories: Business/Economy, Education

• Governor, smaller city officials discuss budget options

  Officials from Los Angeles County’s smaller cities talked about their tightening budgets with Governor Arnold Schwarzenegger today during a roundtable discussion in Culver City. Bill DeWitt of the Southgate City Council said his city has already asked its 350 employees to take a 10 percent pay cut.

  Bill DeWitt: “When we don’t pick up the trash, or if the potholes don’t get fixed, or if the water pipes are leaking in the street, we have to respond to that now. And if we don’t have the ability to do that because we’ve laid off people or had other problems, then that puts us in a real bad situation.”

  DeWitt and officials from other cities told the governor the state should fix its own budget woes without borrowing from the cities. DeWitt said lending the state some of Southgate’s tax revenues would push the city’s budget “over a cliff.”

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  • May 11, 2009 2:11 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Vote-by-mail deadline looms as price of postage goes up

  Tomorrow’s the last day to register to vote by mail for next week’s special statewide election. But KPCC’s Susan Valot says a change could prevent your request from getting there, if you don’t take care.

  Susan Valot: Vote-by-mail requests have to be in seven days before the election. In this election, we’re deciding whether to adopt statewide propositions that lawmakers want to use to close California’s budget gap.

  Today the price to mail a first-class letter increases by two cents, to 44 cents. That means it’ll cost 44 cents to mail in your vote-by-mail request or your vote-by-mail ballot.

  The U.S. Postal Service is required to forward all ballots to the registrar’s office in a timely manner. If you don’t put on enough postage, your ballot could end up at the registrar too late – and that could leave you out of the election.

  Postmarks don’t count to meet the deadline. If you use “forever” stamps, you’re free and clear. Those are good for first-class letters no matter how much you paid for them.

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  • May 11, 2009 11:52 AM
  • Categories: Business/Economy, Politics/Public Affairs

• Federal government says state can't cut salaries of health care workers

  Federal money usually comes with strings attached. California officials are learning just how many strings the economic stimulus package carries. KPCC’s Washington Correspondent Kitty Felde reports.

  Kitty Felde: California lawmakers, trying to save $74 million, cut home health care workers’ pay by $2 an hour. Not so fast, said the federal Department of Health and Human Services. Under federal guidelines for spending California’s $50 billion in economic stimulus money, the state can’t take the money and then cut back on services.

  The feds threatened to reclaim almost $7 billion if California doesn’t restore the health care workers’ salaries. Governor Schwarzenegger has sent a letter of appeal. His Inspector General Laura Chick has spent a week in Washington clarifying more than a hundred pages of rules and regulations related to stimulus funding.

  The Service Employees International Union represented the home health care workers, and alerted the Obama administration about the cuts. That union campaigned strongly for Barack Obama. When asked whether organized labor was pressuring the administration, a Health and Human Services official replied that the department simply wanted “to ensure that all states comply with the law.”

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  • May 8, 2009 4:13 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• Norco Mazda dealer closes after getting half million dollar loan from city

  Five months after the city of Norco extended a half-million-dollar line of credit so it could stay in business, a car dealer there has apparently gone belly-up. KPCC’s Steven Cuevas has more on Norco Mazda, which shut its doors last night.

  Steven Cuevas: The dealership’s owners say it’s only temporarily closed. But it sure happened suddenly – it even caught city officials off guard. They loaned Norco Mazda and another dealership, Frahm Dodge, half-a-million dollars each in December to offset flagging sales. More than a dozen Inland Empire car dealerships have gone out of business in the last year.

  Car dealerships provide almost half of Norco’s annual $5 million take in sales taxes. The loans are intended to cover basic operating costs and new inventory purchases until the credit markets loosen up. Both car dealers put up property and other collateral to secure the loans.

  In the Dodge dealership’s case, the bailout seems to have worked. It’s reporting an increase in sales and its owners hope it can ride out the recession. It’s not clear what Norco Mazda did with the money. Owners tell city officials they are “reorganizing” and hope to reopen soon.

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  • May 8, 2009 4:10 PM
  • Categories: Business/Economy

• May 19 election could reduce $14 billion budget gap to $8 billion

  Slumping sales and real estate tax revenues mean that California’s running short on money. The state legislative analyst predicts the cash flow could dribble out by July.

  State Assembly Speaker Karen Bass told KPCC’s Larry Mantle that she and other Democrats have already begun to examine the budget for places to cut. She added that voters will play a role in the state’s economic future by deciding on six propositions later this month.

  Karen Bass: “We went through the budget line-by-line and they had a mission: solve an $8 billion problem or solve a $14 billion problem. If the propositions fail, we will have a $14 billion hole.

  “If the propositions pass, we will have an $8 billion hole. I can tell you that my colleagues had a difficult time closing an $8 billion hole; they were not able to close a $14 billion hole.”

  The ballot propositions intended to help California close that hole are not very popular, opinion surveys say. The measures would shift money from restricted uses to the general fund and allow the state to borrow against future lottery revenues, among other changes.

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  • May 8, 2009 4:08 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Lawmakers seek loans to help with state budget

  This week, California lawmakers visited Washington, D.C. in search of short-term loans to help the state through its budget problems. Jason Dickerson, a finance specialist with the state Legislative Analyst’s Office, told KPCC’s “AirTalk” that borrowing from the federal government probably won’t help.

  Jason Dickerson: “We’re looking at a very serious budget problem given the fact that if there were already easy spending cuts and revenue increases, they’ve generally already been made. What comes next will be even more difficult.”

  Dickerson warned that credit markets are still tight and the state may not be able to borrow much money. Anything it borrows from the federal government will come with strings attached, he said. His solution is to enact more program cuts.

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  • May 8, 2009 4:04 PM
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• California could run out of money

  California could run out of money in a couple of months, if the prediction of the state’s chief budget analyst plays out. Jason Dickerson with the Legislative Analyst’s Office told KPCC’s “AirTalk” that fewer home sales, less consumer spending, and more unemployment have all contributed to the problem.

  Jason Dickerson: “A few weeks ago we forecast that 2009/10 state fiscal revenues would be about $8 billion less than expected. Since then, revenues in February, March, and April of this year have been less than expected. So there are very tough choices ahead as the economy continues to be very weak.”

  Dickerson said that in the coming weeks the governor and the legislature are going to examine nearly all categories of state programs for potential cuts. Five measures on the May 19th ballot are intended to address California’s budget gap, but polls of likely voters indicate that none of those propositions may pass.

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  • May 8, 2009 4:01 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Federal transportation secretary delivers $67 million to LA County

  Los Angeles County’s transportation agency will get almost $67 million from the federal economic stimulus package. KPCC’s Cheryl Devall has more on the transportation secretary’s announcement today.

  Cheryl Devall: The money will push forward the Metro Gold Line extension into East L.A. In a statement, Federal Transportation Secretary Ray LaHood said that by delivering the money now, his agency is providing a boost that’ll help keep the project moving while jumpstarting the economy and putting people back to work.

  The grant under the federal American Recovery and Reinvestment Act will not increase the government’s commitment to the Gold Line project. But LaHood said L.A. County’s Metropolitan Transportation Authority will get the money faster through the stimulus bill.

  Next month – six months ahead of schedule – Metro expects to open the six-mile Gold Line extension with eight new stops from Little Tokyo to Atlantic and Pomona boulevards in East Los Angeles.

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  • May 7, 2009 2:09 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• California lobbies for high-speed rail funds from federal government

  In Washington, it’s always about money. California’s Assembly Speaker and several colleagues traveled to Capitol Hill this week to talk about short-term loans – and about transportation dollars. KPCC’s Washington Correspondent Kitty Felde says there could be good news for fans of high-speed rail.

  Kitty Felde: This is the year Congress starts talking about how to spend the next big chunk of transportation dollars. California has a number of ideas about how to spend the money.

  Several state lawmakers met this week with federal Transportation Secretary Roy LaHood to make their case. Assembly Speaker Karen Bass says she was pleasantly surprised to find the transportation secretary’s a big fan of a high-speed rail project that would connect Sacramento to San Diego.

  Karen Bass: I mean I knew California was ahead in terms of high-speed rail. But I didn’t know that we were ahead of any other state in the union.

  Felde: Last fall, California voters approved a $10 billion bond to pay for the first phase of the $40 billion project. Bass says no other state has put up that kind of money for high-speed rail projects.

  But Congress will decide how to allocate transportation money. Bass says California may enjoy an advantage – Barbara Boxer heads the U.S. Senate committee that controls transportation dollars.

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  • May 6, 2009 4:00 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• Assembly speaker lobbies federal government for loan guarantees

  A few weeks ago, California’s state treasurer visited Washington, asking for federal guarantees on short-term loans. Now, state Assembly Speaker Karen Bass is there to follow up with the White House Budget Office and leaders on Capitol Hill. Bass says California always seems to experience a cash crunch in July, so it has to float short-term bonds to get by.

  Karen Bass: “Because of the credit market and the economic crisis, this particular year, we actually need the federal government to co-sign on a loan for us, if you will, to guarantee our borrowing, so that the banks will be willing to lend.”

  Bass compares this to asking a better-off relative to co-sign a car loan so the bank will know it’ll get its money back. She points that out California has never defaulted on its loans. The Assembly speaker says she’s hopeful, but so far, she doesn’t have that federal signature on the dotted line.

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  • May 6, 2009 2:55 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Cal Fire expresses concerns about potential budget-related cuts

  Just as fire season is upon us, the statewide fire management agency faces the possibility of staff cuts. Cal Fire’s budget is up for review at the end of this month. The agency’s Janet Upton told KPCC’s “Patt Morrison” that officials are hoping for the best.

  Janet Upton: “But in the interest of prudence do have to be prepared if cuts do come down the pike. That could be anywhere from 600 to 1,700 firefighters, 20 fire stations, 11 camps, maybe a Helitack base depending on the amount we are asked to cut.”

  Governor Schwarzenegger has threatened to cut many state program budgets if voters don’t pass several revenue-related ballot measures this month.

  Cal Fire has declared this Wildfire Awareness Week – and the fire that began last night in Santa Barbara County has heightened awareness of just how vulnerable the Southland is to the threat of fires.

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  • May 6, 2009 2:44 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• 3 found dead in apparent murder-suicide in Orange

  Police are trying to nail down a motive for an apparent murder-suicide in Orange that left a man, his girlfriend, and the couple’s young son dead. KPCC’s Susan Valot says police found the three in their apartment yesterday.

  Susan Valot: The manager of the Orange apartment called police when she realized she hadn’t seen 44-year-old Craig Rubin, his girlfriend Mary Striley, and their 3-year-old son for several days. Police entered the apartment the family had occupied for three years.

  Officers discovered the three had all been shot to death with the small handgun they found near Rubin’s body. Authorities say they may have been dead for several days.

  Police say Rubin left a suicide note that claimed responsibility for killing his girlfriend and son. Ruben apparently wrote in the note that his family was dealing with health and financial issues. But police say the motive’s not clear. They’re investigating it as a murder-suicide.

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  • May 6, 2009 2:36 PM
  • Categories: Business/Economy, Criminal Justice

• Inspector general visits DC to learn rules of stimulus money

  Governor Schwarzenegger’s watchdog for federal stimulus money has been on the job for just a week. Inspector General Laura Chick is visiting Washington, D.C. to learn the “dos and don’ts” of spending that money. KPCC’s Washington Correspondent Kitty Felde reports.

  Kitty Felde: Inspector General Laura Chick doesn’t wear a uniform, but she’s learned that like the military, the federal government is big on rules and regulations, or “guidelines” as they’re called – 125 pages of guidelines so far. Chick says it’s her job to make sure California spends its $50 billion in stimulus money well.

  Laura Chick: It’s a given that there’s going to be problems. It’s a given that there’s going to be a certain amount of bad folks committing fraud and actual criminal wrongdoing. And then there’s going to be sloppiness and mistakes. My goal is, on behalf of the governor and for the state of California, to try to find these problems as quickly as possible.

  Felde: So far, Chick is the first state inspector general in the country who’s watching stimulus dollars. She says she’s already met with U.S. attorneys eager to prosecute any wrongdoing her office uncovers.

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  • May 6, 2009 2:32 PM
  • Categories: Business/Economy, Politics/Public Affairs

• City of LA moves to lay off 400 workers

  The Los Angeles City Council today took the first step toward laying off hundreds of city employees. KPCC’s Frank Stoltze reports that the council took the action despite pleas from the city’s labor unions.

  Frank Stoltze: For two decades, Eva Mitnick’s worked as an L.A. city librarian.

  Eva Mitnick: I want to implore and urge the City Council to not go forward with plans for layoffs until all other options have been fully explored.

  Stoltze: Labor unions prefer early retirement packages to layoffs. The council’s chief legislative analyst Gerry Miller said the city’s $530 million budget gap is too big to avert job cuts.

  Gerry Miller: I see no scenario in which this wouldn’t have to happen.

  Stoltze: Councilman Bill Rosendahl joined all but two of his colleagues in voting to eliminate 1,600 city positions and begin the process of laying off as many as 400 city workers.

  Bill Rosendahl: The rubber has hit the road, folks. We are now in a very serious situation.

  Stoltze: Unless the mayor can squeeze concessions like unpaid furloughs from city unions, the council may be forced to lay off thousands of city employees.

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  • May 5, 2009 7:09 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA City Council votes to extend billboard moratorium

  The L.A. City Council voted today to extend a temporary moratorium on certain types of billboards. KPCC’s Brian Watt says the vote is a sign a permanent ban is in the works.

  Brian Watt: The billboards in question are the ones that change images and flash bright lights and what’s known as supergraphics – giant signs that wrap around several floors of buildings. Westside Councilman Bill Rosendahl says they create visual blight, and, in some cases, raise safety concerns.

  Bill Rosendahl: Can you imagine if you were in one of those buildings and all of a sudden there’s a piece of canvas in front of your window, and you can’t even look out? Can you imagine if you’re driving your car on the freeway and you’re blasted by one of them? We have some real problems with this.

  Watt:So, Rosendahl says, the Council is crafting a permanent ban on such billboards in most parts of the city. Billboard companies have filed suit against Los Angeles. The council’s vote came a day after a federal judge barred the city from taking action against 18 “supergraphics” while the lawsuit moves through court.

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  • May 5, 2009 7:06 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Poor economy makes boat slips available at Marina Del Rey

  Not too long ago, boat owners would have to wait years for slip at Marina Del Rey. Now the tough economy’s made hundreds of slips available. Dusty Crane with Los Angeles County’s Department of Beaches and Harbors says there are plenty of good reasons to live on a boat.

  Dusty Crane: “Number one, it’s beautiful. Number two, it’s safe. We try to keep it as clean and manicured. I mean, it’s like resort living.”

  But, the seafaring life isn’t for everyone, Crane says – especially not for fans of walk-in closets.

  Crane: “You’re compact. There’s no extra thrills to it. You have to be mindful of, you know, your storage. Just you know, storms; you’re constantly making sure your boat is in good condition.”

  A slip for a 25-foot boat costs about $300 a month – that includes some amenities and services. Utilities cost extra.

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  • May 5, 2009 7:01 PM
  • Categories: Business/Economy, Transportation

• LA City Council votes to begin laying off up to 400 city workers

  The Los Angeles City Council today voted to begin the process of laying off as many as 400 city workers. Chief legislative analyst Gerry Miller said the layoffs are necessary to address a growing budget deficit. Councilman Dennis Zine’s argued that the city should trim administrative fat first.

  Councilman Dennis Zine: “We do a lot of fluff in the city! We don’t need to do all the fluff!”
  Gerry Miller: “Mr. Zine, that’s exactly what the budget and finance committee is doing. But let me remind you, we have a $530 million gap for next year. What is before you today is $80 million of that. You are going to have an incredible problem in front of you in a couple of weeks.”

  That’s when the council’s scheduled to consider hundreds of millions more dollars in budget cuts. The mayor’s warned that L.A. will have to lay off thousands of city workers if labor unions don’t agree to forgo pay raises and take unpaid furloughs. Labor leaders are pushing for early retirements to reduce the number of layoffs.

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  • May 5, 2009 4:51 PM
  • Categories: Business/Economy, Politics/Public Affairs

• City Council votes to extend digital billboard/supergraphic moratorium

  The Los Angeles City Council voted today to extend a citywide moratorium on new digital billboards and giant signs that wrap around several floors of buildings. The temporary moratorium’s now set to expire on June 24. Westside councilman Bill Rosendahl says the council is giving itself time to craft a permanent ban.

  Bill Rosendahl: “I’m very uncomfortable rushing this kind of legislation. We’ve been assaulted dramatically by billboards. You know, in my district, 563 have popped up in the last few years. Twenty of them have flipped to digital and 30 of them were illegal.”

  The council’s vote followed a day after a federal judge issued a temporary injunction barring the city from taking action against giant billboards on 18 buildings in the city. The advertising company that installed those billboards said it did so before the moratorium took effect last December.

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  • May 5, 2009 4:11 PM
  • Categories: Business/Economy, Politics/Public Affairs

• City Council votes to approve Laurel Canyon Commercial Corridor project

  The Los Angeles City Council and Community Redevelopment Agency gave a big push today to a plan to redevelop the North Hollywood area around the intersection of Laurel Canyon and Victory boulevards. They voted jointly to approve the Laurel Canyon Commercial Corridor Project. Councilwoman Wendy Greuel says the area has suffered too long from blight.

  Wendy Greuel: “You drive down the street and you think, ‘What’s happening? Is anything ever going to occur on this site?’ And what we did today is say ‘Yes, we are moving forward to improve the neighborhood and create commerce there in our neighborhood and Valley Plaza.’”

  The 1994 Northridge earthquake destroyed several buildings along the corridor. The redevelopment plan would restore the Valley Plaza shopping center with a Macy’s department store, a Target, a 16-screen movie theater, and other shops and eateries.

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  • May 5, 2009 2:51 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Low home prices mean cost of building houses could exceed selling price

  Home prices have dropped so low in some areas that the cost of building the houses exceeds the potential selling price. Richard Green, director of USC’s Lusk Center for Real Estate, spoke about that with KPCC’s “AirTalk.”

  Richard Green: “I was speaking to a group of homebuilders from around the country yesterday at a big conference in Las Vegas, and I asked them to raise their hands if they were selling their houses for less than it cost them to build them, and I would say half the people in the room raised their hand and said that they were.”

  Given that, Green says, it’s hard to see how prices can go much lower. In San Bernardino County, the median home sale price in March dropped to $160,000. That’s down about 43 percent from the previous year.

  The plunge led one developer to cut its losses and tear down 16 units in a partially-built project in Victorville. Demolishing the houses was cheaper than finishing and marketing them.

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  • May 5, 2009 2:30 PM
  • Categories: Business/Economy

• Republican state assemblyman from Hesperia facing recall

  An effort to recall state assemblyman Anthony Adams is underway. The Republican lawmaker from Hesperia is under fire for his vote in favor of the recent state budget deal. KPCC’s Steven Cuevas says the backlash is coming from fellow Republicans.

  Steven Cuevas: That’s because the $41 billion state budget compromise included tax increases that Republicans vehemently opposed. Adams says he knew that a vote for the budget package would put his political career on the line. He was right.

  In March San Bernardino County Republican Party forced him out as its chief. State GOP officials also voted to withhold campaign cash from Adams and five other Republican lawmakers who’d supported the budget deal.

  Adams’ opponents have five months to place the recall effort on the ballot by collecting more than 35,000 signatures from registered voters. One of the organizers is former state assemblyman Richard Mountjoy. He may run for the 59th Assembly District seat if there is a recall election. That district stretches from San Bernardino County’s high desert to the L.A. city limits.

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  • May 5, 2009 2:28 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Fewer greenhouse gases created shipping Asian goods through West Coast

  Containers of goods coming from Asia through U.S. ports may leave a lighter carbon footprint when they dock in Western harbors rather than Eastern ones. KPCC’s Molly Peterson has more on a new study.

  Molly Peterson: Shanghai, Hong Kong, and Singapore have long sent cargo ships to New York through the Panama Canal before they transfer goods to Midwestern cities by rail. But a new report commissioned by harbor officials in Seattle finds that route can create more greenhouse gas – and contribute more to global warming.

  Consultants in Northern California compared cargo’s journey from Asia to the middle of the U.S. on different routes. They found that containers might spend more time on rails, if ships dock at Los Angeles and send goods to Memphis – but they’ll spend less time on the open ocean, where seagoing vessels burn dirtier fuel.

  Pacific Northwest ports like Seattle and Vancouver are greener choices to send goods to Chicago, the consultants say – while Oakland, L.A., and Long Beach offer a less-polluting option for goods bound to Memphis and points further south. Still, in a tough economy, with cargo volumes down, shippers are looking for the cheapest way to move goods, not necessarily the cleanest.

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  • May 5, 2009 2:24 PM
  • Categories: Business/Economy, Environment, Transportation

• Unemployment varies widely across LA County

  We’ll find out the latest state and local unemployment numbers in a couple of weeks. Los Angeles County’s jobless rate in March was the highest in 33 years. But KPCC’s business analyst Mark Lacter says unemployment varies widely across the county:

  Mark Lacter: “Now, there is always going to be a division of haves and have-nots – and even in good times the unemployment rate is higher in lower-income lower-educated communities than it is elsewhere. But the big concern is that even after the recession is officially over – that’ll probably be the next few months – unemployment will remain high well into 2010 and perhaps 2011.”

  Lacter says that’s because businesses won’t be able to expand or may be unwilling to do so. He adds that the economy is likely to go through some fundamental changes. That means some jobs may not exist in a few years.

  The latest local jobless numbers showed an unemployment rate of 4 percent in Malibu, while Compton’s rate was over 19 percent.

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  • May 5, 2009 2:18 PM
  • Categories: Business/Economy

• Hire LA's Youth campaign helps thousands of youth find jobs

  A pot of federal stimulus dollars will help the city of Los Angeles place thousands more young people in jobs over the next year. KPCC’s Brian Watt explains.

  Brian Watt: The Hire L.A.’s Youth campaign helps people from 14 to 24 find summer and full-time jobs. The program’s placed more than 28,000 young Angelenos since it started three years ago.

  This year, the city’s receiving $20 million from the federal economic stimulus package. That’ll support more than 7,000 additional youth positions. To thank the Obama Administration, L.A. Mayor Antonio Villaraigosa joined Governor Arnold Schwarzenegger, city officials, and hundreds of young people on the steps of City Hall.

  Mayor Antonio Villaraigosa: “You will never forget that first job. You know, struggling with ‘How do I do it?’ then realizing that you can do it. Then, the light bulb coming on and saying ‘Maybe I got to go to school to improve my skills.”

  The city’s general fund already supports 2,000 youth jobs. The private sector, the L.A. Unified School District, and the Los Angeles Community College District have pledged to hire another 7,000 young people.

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  • May 4, 2009 2:34 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Nonprofit restocks supplies as swine flu fears subside

  Public health experts say fear of the swine flu spiked demand for care at neighborhood clinics last week. Damon Taugher of Direct Relief USA, a non-profit medical supplier to clinics, says four times more patients than usual have seen clinic doctors in recent days. He says that as fears subside, his organization is restocking supplies.

  Damon Taugher: “We’ve made a series of requests to our corporate donor network, including companies like Johnson & Johnson, to get the other items we hope to have early this week. Things like thermometers and gloves and gowns.”

  Los Angeles County public health officials have confirmed at least three swine flu cases. Orange County has eight probable and two confirmed cases.

  Riverside County reported two confirmed cases of swine flu yesterday. Public health authorities have warned that even though the flu seems to be tapering off now, it could come back with a vengeance in the fall.

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  • May 4, 2009 2:30 PM
  • Categories: Business/Economy, Health

• Swine flu panic depletes personnel

  Clinics throughout Los Angeles County are seeing more patients concerned about swine flu, even as the number of confirmed cases remains low. Direct Relief International, a medical aid organization, has been shipping masks, hand sanitizer, and gowns to clinicians around the globe.

  The non-profit’s president Thomas Tighe says L.A. County clinics haven’t needed supplies. But he adds that patient panic has depleted personnel.

  Thomas Tighe: ” An increased demand just to be seen. That translates into mandatory overtime for workers and costs that the private-nonprofit safety net clinics didn’t necessarily budget for.”

  Tighe says Direct Relief International is trying to stockpile supplies from corporate donors – and to get ahead of the next flu outbreak.

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  • May 4, 2009 2:19 PM
  • Categories: Business/Economy, Health

• Heritage Foundation reacts to Obama tax plan

  The Obama administration’s proposal to close certain tax loopholes is raising the hackles of business allies. Curtis Dubay of the Heritage Foundation told KPCC’s “AirTalk” that the plan would make it more difficult for companies to compete in the global marketplace.

  Curtis Dubay: “We should keep in mind that the United States is the only country in the world that taxes businesses on their worldwide income. Every other country taxes businesses on the income that they earn only within their borders. And that’s the way it should be – we should only tax income where it’s earned.”

  At present, multinational companies based in the United States are taxed only on the international profits they return to this country. The president’s economists figure that the change in policy would deliver more than $200 billion in tax revenue to the federal government during the next decade – if Congress approves it.

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  • May 4, 2009 2:09 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Actors unions send commercial contract to members

  The two actors’ unions have sent a new contract for commercials to rank-and-file members for a ratification vote. KPCC’s Brian Watt reports.

  Brian Watt: Members of Screen Actors Guild and the American Federation of TV and Radio Artists have three weeks (until May 21st) to send their ballots back. Most industry observers expect the vast majority of those members to vote “Yes.” The three-year pact includes a wage and benefit increase of more than 5 percent, and the first-ever payment structure for commercials made for the Internet and new media.

  The two unions patched up a rift to negotiate the contract together with the advertising industry. But that apparent miracle became a quiet subplot to SAG’s struggles toward its own agreement with producers of film and primetime TV shows.

  SAG has yet to send the film and primetime TV contract to members, but the union’s telling them to watch their mailboxes. SAG and AFTRA are holding an information session about the commercials contract in Los Angeles next Tuesday, May 12.

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  • May 1, 2009 4:29 PM
  • Categories: Arts, Business/Economy

• Regulators find jewelry with dangerous amounts of lead for sale in Southland

  State regulators say they’ve found dozens of varieties of jewelry that contain dangerous amounts of lead for sale at Southland stores and wholesalers. KPCC’s Molly Peterson reports.

  Molly Peterson: Most of the items came from China. Many carry labels that declare them lead-free – even though some necklaces and earrings contained more than a hundred times the state’s limit for the metal in jewelry.

  California’s banned lead in children’s jewelry for a year and a half. Kids who ingest lead by putting objects in their mouths can absorb it much faster – and can suffer brain or other impairment as a result.

  The state has expanded the original ban to include adult jewelry and piercings, but the Department of Toxic Substances Control lacks the authority to demand a recall of the products. Instead, importers and stores in Vernon, Glendale, Northridge, Panorama City, and L.A. have promised to stop selling the jewelry, to dispose of it safely, and to ask their suppliers for proof that merchandise meets California standards from now on.

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  • April 28, 2009 4:25 PM
  • Categories: Business/Economy, Health

• Getty to lay off nearly 100 employees

  KPCC has learned that nearly 100 employees of the Getty are scheduled to receive layoff notices as soon as tomorrow. KPCC’s Adolfo Guzman-Lopez has the story.

  Adolfo Guzman-Lopez: The all-staff e-mail from Getty Trust President Jim Wood says 97 employees will find out their jobs have been eliminated. About 1,500 people work at the Getty. Wood plans to answer some of their questions at two employee meetings Wednesday and Thursday, the e-mail says.

  This is the second round of layoffs at the nation’s wealthiest cultural institution since Wood became president two years ago. Attendance has grown at the Brentwood campus but the stock market’s dragged the Getty’s multibillion-dollar endowment down with it. Because of that, administrators say they must cut more than $200 million from next year’s budget.

  One employee said the mood is grim among employees after Wood sent the e-mail – although some are relieved they’ll know soon whether they’ll keep or lose their jobs.

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  • April 27, 2009 2:20 PM
  • Categories: Arts, Business/Economy

• Labor Secretary holds town hall meeting on veterans issues

  United States Secretary of Labor Hilda Solis visited Southern California today for a town hall meeting on how military veterans are having a hard time finding jobs.

  Labor Secretary Hilda Solis: “We will make every effort to see that our veterans who are coming home, those young men and women returning home from Afghanistan and from Iraq, find full support here in the United States. That’s a commitment that President Barack Obama has. That’s a commitment that Hilda Solis has as secretary of labor.” [applause]

  The meeting took place at Union Station in downtown L.A. Solis represented East Los Angeles in Congress before the president appointed her labor secretary.

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  • April 24, 2009 3:32 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Used car scammers take advantage of economic recession

  The economic recession is proving to be fertile ground for used-car scammers. KPCC’s Patricia Nazario spoke with online car sales experts at the Petersen Automotive Museum in Los Angeles.

  Patricia Nazario: Representatives from leading used car outlets attended the panel. Carfax spokesman Larry Gamache said thieves are increasingly savvy, but potential buyers are falling asleep at the wheel.

  arry Gamache: American consumers are desperate.

  Nazario: So they’re looking to “sale by owner” instead of showrooms to save a few extra bucks. Experts say private party sales accounted for at least 42 million used car transactions last year. AutoTrader Vice President Joe George said sellers with sob stories are swindling buyers.

  Joe George: You know, I’m being shipped off to Iraq and I need to sell this car quickly. Send me a thousand dollars then I can have the car shipped to you. Then, you can pay me the rest.

  Nazario: George said crooks get away more often than not and consumers end up with no car at worst, a lemon at best. Participants in the panel said they want to educate consumers and expose used car scams.

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  • April 23, 2009 8:13 PM
  • Categories: Business/Economy, Criminal Justice

• Used car insiders talk about growing online fraud

  Some of the best-known names in online used car sales set competition aside to warn potential shoppers about the possibility of fraud. Carfax spokesman Larry Gamache told an audience at the Petersen Automotive Museum that con artists are taking advantage of consumers with low credit scores.

  Larry Gamache: “And they cannot go to a dealer and get done anymore, because their FICO scores are low and they don’t have enough money in the bank, and they’re looking for a deal.”

  He and others on the panel agreed that online “deals” that look too good to be true usually are. They cautioned consumers to use common sense – see the car in person, insist on an inspection by an independent mechanic, and thoroughly research the car’s history before you close the deal.

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  • April 23, 2009 7:50 PM
  • Categories: Business/Economy, Education

• Attorney general sues Wells Fargo for defrauding investors

  California Attorney General Jerry Brown today sued three subsidiaries of Wells Fargo Bank for allegedly defrauding California investors. KPCC’s Julie Small reports.

  Julie Small: Brown says the subsidiaries encouraged investors to buy “auction rate securities” that pay a higher interest rate than most savings accounts.

  Attorney General Jerry Brown: These instruments were sold to people under the idea that it’s just like cash and you get your money back in eight days. That turned out not to be true.

  Small: The market for auction rate securities froze a year ago. No one could cash out – and the attorney general’s phone started ringing.

  Brown: We got a lot of complaints. We know there’s over 2,000 people that bought these securities. They’re mad as hell and want their money back. And we believe under the laws of California, they have that right, and we’re going to court to make sure that right is vindicated.

  Small: Brown wants Wells Fargo to return a billion-and-a-half dollars to investors. Wells Fargo says it’s not responsible for the “extraordinary circumstances” that collapsed the auction rate securities market.

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  • April 23, 2009 3:23 PM
  • Categories: Business/Economy, Criminal Justice

• Foreclosure numbers dropping

  A record number of California homeowners missed mortgage payments in the first quarter of this year – more than at any time in the last 20 years. That’s the first step toward foreclosure. But the number of foreclosures is dropping.

  John Karevoll of realty tracker DataQuick told KPCC’s “AirTalk” that he believes that’s true in part because lenders are being more cautious about screening mortgage applicants.

  John Karevoll: “How much of the current distress is the result of bad lending, and how much of the current distress is the result of the economic downturn? And we just don’t know how much each of those two contribute to the real sore, nasty mess we have out there right now.”

  Karevoll said it seems some people are deliberately not paying on mortgages so they can negotiate friendlier terms with lenders. Others may be taking advantage of the Obama administration’s efforts to promote mortgage loan modifications and refinancing.

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  • April 23, 2009 3:16 PM
  • Categories: Business/Economy

• Sacramento fire officials target female recruits

  Women – if you’re looking for a job that’s tough and challenging, California firefighters are looking for you. Fire officials in Sacramento announced today they’ll hold a series of recruitment fairs in the next couple of weeks to encourage women to apply. KPCC’s Julie Small reports.

  Julie Small: Women make up just 5 percent of California’s firefighting force. Fire officials would like to change that.

  Laura Hernandez: It’s not something that females automatically think of – oh, I could be a firefighter.

  Small: Laura Hernandez was an ambulance worker eight years ago when some firefighters encouraged her to try out for the job they did. Now she’s a firefighter and paramedic in city of Tracy in Northern California. Hernandez says it’s a great job for the right woman.

  Hernandez: If you have what it takes, if you’re physically fit, if you’ve played sports all your life and you want that desire of adventure in a job – this could be the job for you.

  Small: But it’s a tough job to get. More than 90 percent of women accepted by firefighting academies don’t graduate. But Tracy firefighter Laura Hernandez says most women can build up the strength they need with the right training and enough encouragement.

  California’s firefighters say they’re prepared to offer both to prospective recruits. Southern California women who think they have what it takes can check out a recruitment fair in Orange County next month.

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  • April 22, 2009 10:57 PM
  • Categories: Business/Economy

• Fruit company Dole challenges verdict, alleges conspiracy

  Fruit company Dole is challenging a 2-and-a-half million dollar jury award to Nicaraguan banana plantation workers in a Los Angeles court. KPCC’s Cheryl Devall says the company is claiming the workers’ initial lawsuit is based on a fraudulent conspiracy.

  Cheryl Devall: In three days of closed-door hearings attorneys for Dole hope to prove to an L.A. Superior Court judge that a jury fell for a sham a year-and-a-half ago. The award to five workers followed a prolonged trial in which lawyers tried to prove a pesticide the men used on banana plants had made them sterile.

  The court later threw out the damages, saying it could not use the award to punish Westlake Village-based Dole for injuries that had occurred in a foreign country. Now, Dole attorneys claim that lawyers sought out poor Nicaraguans, persuaded them to pose as banana workers, and coached them on the details about the industry – all to wring money out of the corporation.

  The alleged decade-long conspiracy, Dole attorneys say, required the men to hide their children from investigators. The company says the men who’ve agreed to testify in these hearings are doing so in fear of mob reprisal back in Nicaragua. That’s why the hearings are closed.

  Note: The hearings are scheduled to continue through Thursday.

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  • April 21, 2009 3:03 PM
  • Categories: Business/Economy, Criminal Justice

• SAG standoff didn't hurt overall economy

  The Screen Actors Guild rank and file will vote early next month on whether to ratify a deal between the union and film and television studios. SAG’s national board approved the deal over the weekend. KPCC’s business analyst Mark Lacter says the yearlong impasse disrupted the studios’ large movie projects, but didn’t really hurt the overall economy.

  Mark Lacter: “Actually, if you look at the March employment numbers for Los Angeles County, the entertainment category is holding up pretty well. Between February and March, 9,300 Hollywood jobs were added to the rolls. That’s far higher growth than most local industry. Most local industries would love that kind of growth.”

  Lacter says there was a loss of below-the-line jobs because of a sharp drop in location shooting. He adds that Hollywood employment can be difficult to track because there are so many part-time and contract workers.

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  • April 21, 2009 2:55 PM
  • Categories: Business/Economy

• Congresswoman Harman responds to allegations of influence trading

  South Bay Congresswoman Jane Harman is fighting back after allegations surfaced that she was caught on a wiretap agreeing to trade influence for a choice committee chairmanship. KPCC’s Washington Correspondent Kitty Felde reports.

  Kitty Felde: Three years ago, federal agents reportedly recorded a call from someone who wanted Harman to intervene in a federal espionage case against two former members of a pro-Israeli lobby group. The New York Times says in exchange, the caller promised the South Bay Democrat that a wealthy donor would threaten to withhold campaign money from House Speaker Nancy Pelosi if she didn’t name Harman chair of the House Intelligence Committee. The Congressional Quarterly says Harman agreed to “waddle into” the case.

  In a letter to Attorney General Eric Holder, Harman says she’s “outraged” about the wiretaps. She urged the Justice Department to release unedited transcripts – and says she did not intervene in national security cases on which she was briefed. A political watchdog group wants Harman investigated. The Justice Department hasn’t responded. The House Office of Congressional Ethics won’t meet until the end of the month.

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  • April 21, 2009 2:39 PM
  • Categories: Business/Economy, Politics/Public Affairs

• County launches solar map Web page

  It might be a stretch to call it the “dawn” of a new era in solar power. But KPCC’s Nick Roman says the Web site Los Angeles County launched today can help you figure out whether solar panels on your roof will save you money on your electricity bills.

  Nick Roman: Type in your address – with the city and zip code – and you get a satellite photo of your house, along with a pop-up info box. It’ll tell you how big your roof is, how much of it you can use for solar panels, and how much money they’ll save you on electricity in a single year.

  Here how the Web page analyzed two homes in L.A. County: A ranch-style house in sunny and sometimes smoggy Monrovia could only handle about 150 square feet of solar panels. But a South L.A. house with a flat roof could handle 875 square feet. The South L.A. house looks like a good candidate for solar panels.

  But it all depends on the cost, and that depends on a range of factors – including whether you can fold the cost of installing those solar panels into a home loan. L.A. County’s “solar map” page links to a California Energy Commission calculator that can help you figure out that cost. Here’s the “solar map” Web address: http://lacounty.solarmap.org.

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  • April 20, 2009 7:29 PM
  • Categories: Business/Economy, Environment

• Activist responds to United charging double for overweight passengers

  United Airlines announced this week that it will begin to charge overweight passengers for two seats when they ride in coach. A statement from the airline says it’s responding to about 7,500 complaints in the last year from passengers who said they felt awkward and uncomfortable sitting next to an obese person. Fat acceptance activist Marilyn Wann warned about what she called the emotional hazards of this policy.

  Marilyn Watt: “I’m a pretty confident person. I like who I am, exactly how I am. I weigh 285 and I’m 5’4”. I’m active and healthy in life, right. But if I walk up to the gate at an airport, and someone says you look fat to me you have to pay double, that’s going to really not be my best day in life. This is just not a humane or welcoming or hospitable policy.”

  Wann told KPCC’s “AirTalk” that United is accommodating one of the last socially-acceptable prejudices – discrimination against fat people.

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  • April 20, 2009 4:57 PM
  • Categories: Business/Economy

• LA County says no layoffs, but budget includes cuts

  Los Angeles County’s first budget draft for the next fiscal year weighs in at nearly $23 billion. That’s more than $400 million less than what the county is spending this year – and it might get smaller still. KPCC’s Nick Roman has the basics.

  Nick Roman: L.A. County will cut nearly 1,700 jobs from the payroll during the next fiscal year. But cutting those jobs won’t require layoffs – and the county will still employ more than 100,000 people when those cuts are done.

  That’s not to say L.A. County isn’t facing a budget squeeze. County chief executive officer William Fujioka says the budget has a $300 million hole – most of which comes from the chronically deficit-ridden Department of Health Services.

  He plans to fill in the budget hole with federal stimulus dollars, some grant money and – of course – budget cuts. But Fujioka says he might be wrong about his estimate that L.A. County property tax assessments will drop only by 1 percent.

  If it’s closer to 3-percent – and it might be – he’ll have to cut the budget some more. Hearings on Fujioka’s proposed $22.8 billion budget begin in three weeks. The L.A. County Board of Supervisors will adopt the final budget a month after that.

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  • April 20, 2009 4:55 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Space industry lobbies Congress

  California’s congressional delegation is getting a visit from outer space this week. A trade group that represents California’s space technology businesses is launching an effort to get more government support. KPCC’s Washington Correspondent Kitty Felde reports.

  Kitty Felde: More than $30 billion a year is spent in California on satellites, launch vehicles, and software. Janice Dunn with the California Space Authority says that’s about half of the U.S. space market.

  Dunn says her trade group is lobbying the state’s congressional members this week to keep NASA’s budget intact. Dunn says they’ll also ask the State Department to streamline exports of satellites. To keep sensitive technology out of the hands of adversaries, Congress moved licensing from the Commerce Department to State. But, says Dunn…

  Janice Dunn: In addition to not helping national security, in fact it’s proving to be a real hindrance to industry.

  Felde: Dunn says her group can cite a list of generals who say the State Department export licensing process isn’t working. Dunn says the California Space Authority is also concerned about environmental costs and red tape in the Golden State. And she says the trade group worries that California schools and universities won’t be able to supply the next generation of space engineers and scientists.

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  • April 20, 2009 4:50 PM
  • Categories: Business/Economy, Politics/Public Affairs, Science/Technology

• LA Times wins Pulitzer for wildfire story

  On a day that’s breaking high-temperature records in the Southland, a Los Angeles Times series about wildfire danger has won this year’s Pulitzer Prize for explanatory reporting. More on the story from KPCC’s Cheryl Devall.

  Cheryl Devall: Times reporters Bettina Boxall and Julie Cart examined the spreading incidence of wildfires in the Western United States – and the spiraling cost of fighting those fires. Their five-part series, “Big Burn,” questions the efficiency of water-dropping aircraft, the increasing use of private contractors in firefighting, and the wisdom of land-use policies that allow more people to move into fire-prone areas.

  The Pulitzer jury proclaimed the series a “fresh and painstaking exploration into the cost and effectiveness of attempts to combat the growing menace of wildfires.” The prize carries a $10,000 cash award.

  The announcement of journalism’s highest honor offered a rare moment of celebration for the Times. Its debt-ridden corporate parent, Tribune Company, is operating under bankruptcy protection. The newspaper has shed sections and staff in response to declining advertising revenue and readership.

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  • April 20, 2009 4:47 PM
  • Categories: Business/Economy, Environment

• SAG's national board approves tentative agreement

  The Screen Actors Guild’s National Board approved a tentative contract agreement yesterday with film and TV producers. But KPCC’s Brian Watt says the drama will continue until SAG’s rank and file members vote.

  Brian Watt: The contract would increase pay for film and primetime TV actors by 3 percent a year. It creates a payment structure for work distributed on the internet similar to the ones the other unions achieved. This contract would expire in two years – rather than the customary three years – so SAG will be able to time its next contract negotiations with those of other unions.

  Only 53 percent of the Guild’s board voted to approve the contract and send it to the 120,000 SAG members for a ratification vote. The contract’s opponents – including SAG President Alan Rosenberg – say they’ll campaign against it.

  The last SAG film and primetime TV contract expired 10 months ago, and the terms of the new one will not be retroactive. While the Guild has tried to hold out for a better deal and worked through internal conflicts, the Alliance of Motion Picture and TV Producers estimated that SAG members have missed out on $67 million in pay increases.

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  • April 20, 2009 4:43 PM
  • Categories: Arts, Business/Economy

• New study warns state economy to suffer unless college graduation improves

  Education researchers warn that California’s technology industries are likely to relocate if the state doesn’t boost the number of graduates from its public colleges. KPCC’s Adolfo Guzman-Lopez has more on the story.

  Adolfo Guzman-Lopez: In 15 years, predicts Public Policy Institute of California researcher Hans Johnson, the state will be short 1 million college educated workers. Johnson says policymakers should pay a lot more attention to community colleges.

  Hans Johnson: Only about 20 to 30 percent of community college students who intend to transfer end up transferring. Well, there’s a huge number of students in the community college system. Even only slight improvements in transfer rates could lead to a dramatic gain in the number of college graduates.

  Guzman-Lopez: Jim Blackburn monitors enrollment management for the 23-campus Cal State system. He says CSU is already taking steps to improve community college transfer rates and help guide students to graduation day. Blackburn says state budget cuts have hurt those efforts.

  Jim Blackburn: If we were more funded we would first enroll more students in the first place and at the same time we would provide more classes for those who are and will become enrolled.

  Guzman-Lopez: Aware of the need for more graduates, a growing number of public school and community college administrators have begun to concentrate on ensuring that more students earn degrees.

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  • April 17, 2009 7:16 PM
  • Categories: Business/Economy, Environment

• Task force considers how protecting marine areas will affect fishing

  Members of a blue ribbon task force for marine protected areas are considering how those areas could affect Southern California fishermen’s ability to make a living. KPCC’s Molly Peterson has more.

  Molly Peterson: The state’s Marine Life Protection Act has a pretty simple goal – to establish rules for how people can behave in regions off the coast. It’s supposed to help sea life flourish. But poor planning and poor funding have hampered the law.

  In southern California, enacting the rules is complicated by the region’s huge population, the diverse topography of the ocean floor, and the kinds of fish people chase. In Dana Point this week, the task force will hear about a range of very early proposals for what to do along the coast from Santa Barbara to San Diego.

  Each proposal maps different spots where limits and rules might work. A group called Ecotrust is analyzing economic impacts for the state in part by talking to fishermen. Even at this stage, the discussion is heating up.

  In San Pedro, for example, marine protection could cut the local catch of market squid by a little – or by as much as 25 percent. The state Fish and Game Commission will make the final decision on where to limit access. That’s supposed to happen later this year.

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  • April 16, 2009 4:47 PM
  • Categories: Business/Economy, Environment

• Veterans job fair held in Long Beach

  A job fair focused on veterans today is attracting former active duty military of all ages and backgrounds. KPCC’s Brian Watt reports from Long Beach.

  Brian Watt: The private company RecruitMilitary calls this event “Search and Employ.” A crowd of veterans lined up for the job fair at the Queen Mary hotel two hours before start time.

  Some of them have kept their buzz cuts, others haven’t. All carried their resumes to offer recruiters from Lockheed Martin to Target to the LAPD.

  Forty-six-year-old Gary Flores of Southgate worked in high-rise construction after the Army discharged him 20 years ago. Last year he had a stroke and he’s returned to school for more training.

  Seventy-eight-year-old Bob Sotski served as a Navy petty officer in the Korean War and owned his own business for 30 years. He lost about half his retirement assets in the stock market, so he’s been looking for a new job since July.

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  • April 16, 2009 4:42 PM
  • Categories: Business/Economy

• Labor think tank makes suggestions for immigration reform

  Most federal lawmakers are in their districts this week, but policy discussions continued today on Capitol Hill. Labor leaders – including the head of the AFL-CIO and a former Cabinet member – outlined their visions for immigration reform. KPCC’s Washington Correspondent Kitty Felde reports.

  Kitty Felde: Labor’s version of immigration reform includes the trio of issues Democratic lawmakers refer to most often: border security, a worker ID system, and legal status for the estimated 11 million undocumented workers in this country.

  But Ray Marshall, who was labor secretary in the Carter administration, says immigration reform must also tackle abuses in legal immigration – specifically, the guest worker program Marshall described as the “indentured worker” program.

  Ray Marshall: It’s never in the interest of a democracy to have a large number of people who are outside the protection of your laws and with second-class status and who can be easily exploited because of their indentured status – the fact that they are attached to a particular employer.

  Felde: The Economic Policy Institute, a labor think tank, recommends creating an independent federal commission to more accurately measure labor shortages and adjust the number of guest worker visas to reflect the actual need.

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  • April 16, 2009 3:44 PM
  • Categories: Business/Economy, Politics/Public Affairs

• People gather at Dockweiler State Beach to protest taxes

  Yesterday’s tax filing deadline compelled people across the country to protest the taxes they’re paying. KPCC’s Brian Watt reports on a rally at Dockweiler State Beach in Playa del Rey.

  Brian Watt: A few hundred people braved high winds that blew the sand and fluttered the American flags many of them carried. Talk radio personality Tammy Bruce let the elements underscore her point.

  Tammy Bruce: As that ocean is as turbulent and rough, let Congress look at that water and know that we are in exactly the same mood. (cheers)

  Watt: The slogans on the handmade signs reflected the mood: “Politicians Gone Wild” and “Obamanomics: All you have LEFT is CHANGE.” Fifty-five-year-old engineer Gary Aven told the crowd this was his first protest. He said he wants the government – no matter who’s running it – to be smarter with his tax dollars.

  Gary Aven: I did not like the way Bush spent. I like how Obama’s planning to spend even less.

  Watt: Aven urged everyone present to let their representatives know they don’t support the budget bill before Congress.

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  • April 16, 2009 11:54 AM
  • Categories: Business/Economy, Politics/Public Affairs

• State says tax revenues critical to balancing budget

  California’s franchise tax board begins to tally all those personal income tax returns today. KPCC’s Julie Small reports that money is more critical than ever to balancing the state budget.

  Julie Small: The health of California’s revenue stream rides on how much personal income tax the state pulls in. The Finance Department’s H.D. Palmer says that’s because sales tax – the state’s main source of income – has taken a dive.

  H.D. Palmer: People aren’t buying as much. They’re out of work or they’re really paring back on their basic purchases or their discretionary purchases.

  Small: Sales tax revenue fell 13 percent below projections in March. The drop has pushed the state $700 million in the red. Palmer fears it’ll get worse.

  Palmer: We are still continuing to suffer job losses. In February the state lost more than 100,000 jobs. To visualize that, fill every seat in the Rose Bowl with a person and then some and that’s how many jobs were lost in California in just one month.

  Small: H.D. Palmer says the attrition started in the construction industry and it’s spread to nearly every sector of California’s economy.

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  • April 16, 2009 11:40 AM
  • Categories: Business/Economy

• As many as 7,000 LAUSD teachers to receive layoff notices

  In Los Angeles, thousands of public school teachers and support personnel are about to receive layoff notices. KPCC’s Steve Julian reports.

  Steve Julian: The nation’s second largest school district faces a budget deficit of nearly $600 million next year. School board members voted on Tuesday to cut as many as 7,000 teaching and other jobs.

  The final number of layoffs likely will change – the district is waiting to see how much money it gets from state and federal sources, including stimulus funds. Superintendent Ramon Cortines and teachers’ union president, AJ Duffy, could not agree to teacher furloughs and salary reductions, but roughly 600 teachers are taking early retirement.

  Many teachers who’ve received layoff notices say that inner-city schools are getting hit the hardest because many of those teachers are new – state law mandates job reductions begin according to seniority.

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  • April 15, 2009 10:15 AM
  • Categories: Business/Economy, Education

• Car purchase tax deduction available

  Some big expenses can qualify you for one-time-only credits on your income taxes, says tax attorney Robert Goldstein. Take, for example, the house you decided to purchase – or that new car you just bought.

  Robert Goldstein: “That’s for this year as well. That for a sales tax on automobile, up to 49-and-a-half thousand dollars of the purchase. That is a deduction, not a credit, but it’s an above- the-line deduction. That means that people do not have to itemize their deduction.”

  The Obama administration and Congress authorized the credits to try and perk up two flagging sectors of the economy, Goldstein told KPCC’s “Patt Morrison.”

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  • April 14, 2009 3:17 PM
  • Categories: Business/Economy

• Tax credits available for home buyers

  There may be a silver lining for last-minute income tax filers. This year, Congress has authorized some tax credits aimed at boosting the domestic economy, said tax attorney Robert Goldstein.

  Robert Goldstein: “In ‘08 there is a $7,500 tax credit if you’re a first time home buyer. And first time is a term of art, and it actually means you’ve not owned a home within the last three years.

  “If people read that and they say, ‘on first-time home buyer… that’s not me,’ they should definitely rethink it, because as long as they have not owned a home within the last three years, they qualify as a first-time home buyer.”

  Goldstein told KPCC’s “Patt Morrison” that an $8,000 credit applies to taxpayers who purchase that home between January and December of this year.

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  • April 14, 2009 2:51 PM
  • Categories: Business/Economy

• Average price of gas rises 20 cents, but still lower than a year ago

  The average price of gas in the Los Angeles region has risen by nearly 20 cents in the last several weeks, but the price is still much lower than it was a year ago at this time. The average price for regular is around $2.34 a gallon.

  KPCC business analyst Mark Lacter says the cheaper gas prices are, of course, good for commuters. But there’s also a downside.

  Mark Lacter: “The not so great part of lower gas prices is that they’re happening for the wrong reason – lower demand, which is what happens during a recession. I mean you don’t have to buy gas when you don’t have a job.

  “The other negative is that it provides commuters with another reason not to take mass transit. The latest MTA numbers show that the overall ridership in Feburary was down 1.7 million passengers from a year earlier.”

  The primary reason for the lower gas prices is lower oil prices. They’ve dropped by almost $100 a barrel from the peak price last year.

  The federal Energy Information Administration projects that, across the country, regular gas will average $2.23 a gallon during the April-through-September driving season, but it could jump to more than $2.30 a gallon during the peak driving period in late summer.

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  • April 14, 2009 2:49 PM
  • Categories: Business/Economy, Transportation

• LAUSD board votes to rescind budget cuts

  L.A. Unified’s Board of Education has just voted to rescind budget cuts that could have led to thousands of job cuts in the district. L.A. Unified’s superintendent has located money to rescind nearly 2,000 of the 8,500 provisional layoff notices the district sent out last month, and the board approved the superintendent’s plan.

  At the start of this afternoon’s packed board meeting, president Monica Garcia noted that the district’s not out of the woods yet.

  Monica Garcia: “I want to be clear that this vote is the first step in a live process. It is a painful and necessary step one, but now it’s on all of us to reach step two. We have two months to come together to find a shared solution to save as many teacher and other employee jobs as possible.”

  Next year’s school district budget is hundreds of millions of dollars in the red. Administrators want L.A. Unified labor unions to accept furloughs and pay cuts to help close that deficit. The district’s teachers union opposes that proposal.

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  • April 14, 2009 2:44 PM
  • Categories: Business/Economy, Education

• On-location LA film shoots fall 56 percent

  The number of on-location film shoots in the L.A. region fell 56 percent during the first quarter, compared to the first three months of last year. The numbers come from Film L.A., the agency responsible for film permits. Film L.A. president Paul Audley says the drop in feature film shoots is directly related to runaway production

  Paul Audley: “The bad news is California’s been so slow to respond to the competition from other states with sort of an old mythology that it was a captive industry and now pre-, post-production, and talented crews are available in these other states, and so they’re in direct competition.”

  But Audley says that production will return if California offers the right incentives. California lawmakers recently approved tax credits for film and TV productions that will take effect in a couple years.

  Meantime, on-location TV shoots in the L.A. region actually grew 76 percent during the first quarter. That’s mainly because of the Writer’s Guild strike last year, which held down production.

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  • April 14, 2009 2:35 PM
  • Categories: Arts, Business/Economy

• Works at LA and Long Beach ports now need special ID cards

  Workers at the ports of Long Beach and Los Angeles starting today must show a high-tech ID card at terminal gates to get to their jobs. KPCC’s Molly Peterson says harbor officials are hoping they’re ready.

  Molly Peterson: To obtain a Transportation Worker Identification Card – known around the harbor as a TWIC card – a port worker needs a federal background check, $132, paperwork, and several weeks.

  Technological glitches and a recent backlog slowed TWIC cards to several thousand workers. Federal Homeland Security Chief Janet Napolitano said security officials would make some allowances for the next 30 days.

  Janet Napolitano: For those who’ve already had a vetting but they don’t yet have their card done, but if they have an e-mail confirmation that their’s is in process they’ll be able to use that as a substitute for the actual card.

  Peterson: The ports of L.A. and Long Beach have kept enrollment offices open longer hours, and they’ve opened new centers in recent weeks. The slow economy could help the program start smoothly – less cargo coming in means less work, and fewer workers.

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  • April 14, 2009 11:16 AM
  • Categories: Business/Economy, Environment

• Radisson LAX signs labor contract with UNITE HERE

  The Radisson at L.A. International Airport signed its first labor contract today with the UNITE HERE union. At the signing ceremony, Radisson owner Peter Dumon said he doesn’t see a union partnership as bad for the hotel’s profits.

  Peter Dumon: “We think the raises that we give to our workers are actually going to be good for our business over the long run. And that those wage increases– (applause interrupts) –those wage increases are going to allow us to have a long term, vital, in-place labor force here.”

  The wage increases mean the Radisson’s housekeepers, banquet and room service workers will earn $2.60 more per hour over the next threee years. The contract also provides free medical insurance for employees who work at least 25 hours a week.

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  • April 13, 2009 3:51 PM
  • Categories: Business/Economy

• What to do if you can't afford your taxes

  The Internal Revenue Service says that one in four taxpayers – including nearly 4 million Californians – wait until the final week to do their taxes. Well, this is it. Wednesday is the deadline. Here’s KPCC’s Debra Baer.

  Debra Baer: There’s nothing wrong with waiting until the last minute to reckon with Uncle Sam. Best case scenario: the government owes you a big fat refund and you use it to stimulate the economy.

  Worst case scenario: surprise! You owe the government a big fat check and – thanks to the recession – you’re broke and freaked out.

  Victor Omelczenko: Please don’t panic!

  Baer: Victor Omelczenko is with the IRS office in Los Angeles.

  Omelczenko: Still, file that return. You know how much you owe. Try to pay as much as you can. And ask for an installment agreement by attaching the form 9465 to your return.

  Baer: Omelczenko says the penalty for failing to file a return is greater than the late payment and interest charges you’d pay in an installment plan. You can get that form and any others you might need at the Web site IRS.gov.

  The Web site also has instructions on how to use commercial software to file your own taxes online for free if you made less than $56,000 last year.

  Link: Internal Revenue Service (IRS)

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  • April 13, 2009 3:38 PM
  • Categories: Business/Economy

• Federal government will keep unclaimed tax refunds

  The federal government owes money to a lot of Californians who didn’t file their income tax returns a few years ago. And as KPCC’s Debra Baer tells us, if they don’t claim what’s theirs, the government gets to keep it.

  Debra Baer: Basically, the rule says that if you overpaid what you owe in taxes and are due a refund, but you don’t file a tax return – perhaps because you didn’t make very much – you have three years to file a claim or give up your right to the money.

  In 2005, the IRS says, 154,000 state residents had other things to do than file their tax returns. So, the federal treasury has been holding onto $144 million of their money. The median refund amount is $537 – meaning half the checks would be bigger and half smaller.

  Some were seniors who had part-time jobs, and others maybe were college students working summer jobs. Whoever they were, they have until Wednesday at midnight to mail a 2005 1040 tax form – or it becomes the property of the U.S. Treasury.

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  • April 13, 2009 3:29 PM
  • Categories: Business/Economy

• Marketing director talks about shift in focus during recession

  If the advertising pitches you’re hearing these days sound more earnest and downbeat than before, that’s no accident, says Marc Fleishhacker, managing director of marketing firm Ogilvy Consulting.

  Marc Fleishhacker: “Our business has changed dramatically as has the business of our clients. They’ve changed messages, they’ve certainly changed the way they spend money.

  “They are spending less of it and demanding more for it or at least asking us to help them find ways to get more for their spend. They are changing their focus and usually it’s becoming a lot stricter and tighter.”

  Fleishhacker told KPCC’s “Patt Morrison” that the shift in focus is one reason advertisers emphasize in their messages that they and the audiences they hope to reach are riding out the recession together.

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  • April 10, 2009 4:25 PM
  • Categories: Business/Economy

• Veteran marketer talks about changing strategy in recession

  The economic recession is causing some businesses to approach their customers differently than before. Marketing veteran Lynda Resnick – owner of POM Wonderful, Teleflora, and Fiji Water – says she’s certainly changed her tune.

  Lynda Resnick: “I tell my employees, it’s like we landed on Mars since October and we don’t know these Martians very well and we better get to know them because the consumer today, I find is totally different than the consumer was when we were all flying high and we thought we had all the money in the world. Being a good marketer is like being a good friend and you have to let the consumer know that you understand the plight that they are in.”

  Resnick told KPCC’s “Patt Morrison” that corporations have an opportunity to talk to consumers rather than at them. Resnick Twitters, and uses Facebook and blogs, to reach potential customers.

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  • April 10, 2009 4:23 PM
  • Categories: Business/Economy

• LA County Arts Commission offers free advice to artists

  If you’re an artist or an arts administrator trying to strategize your way through the recession, Los Angeles County’s offering free advice. Details from KPCC’s Hettie Lynne Hurtes.

  Hettie Lynne Hurtes: The L.A. County Arts Commission is offering one of its occasional Arts Tune-Ups. Individual artists and small-budget cultural organizations can get free advice on issues including advocacy, arts education, fundraising, and marketing. Experts will be available to address each area for 25 minutes at a time. Advice- seekers may stay for one session or all day.

  The Arts Tune-Up takes place on the first Saturday in May from 10 to 1 o’clock at the Senior Center in Whittier’s Parnell Park. Although it’s free, it’s a good idea to register ahead of time. For information about how, go online to LACountyArts.org/announcements.

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  • April 10, 2009 3:56 PM
  • Categories: Arts, Business/Economy

• Insurance commissioner explains how state catches drivers without insurance

  The tough economy has a lot of people trying to trim their monthly expenses. KPCC’s Brian Watt says they should think twice before they drop their auto insurance.

  Brian Watt: California law requires insurance for all cars and drivers. Without it, you can’t register your car or get a drivers’ license. Some folks try to skirt the law by ordering an insurance policy just to get the paperwork from the Department of Motor Vehicles, then cancelling the policy – or just not paying for it. But State Insurance Commissioner Steve Poizner says a new law requires all insurance companies to tell the DMV when that happens.

  Steve Poizner: So every month now, all the insurance companies doing business in California send a computer disk to the DMV. Then, the DMV does a computer match between the people who have licenses and registrations and people who just cancelled their insurance.

  Watt: Then, the DMV sends a letter to people who are driving without insurance. It gives them 40 days to provide proof of insurance or lose their vehicle registration.

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  • April 10, 2009 3:14 PM
  • Categories: Business/Economy, Criminal Justice, Transportation

• Windfall of eggs at Easter help food bank meet heightened demand

  The Los Angeles Regional Food Bank will have plenty in its basket this Easter. Norco-based egg producer MoArk is giving the organization 280,000 eggs. Food bank director Michael Flood says that while donations of other items are up, fresh eggs are always hard to come by.

  Michael Flood: “Seeing a whole truckload of eggs, 280,000 eggs come into the food bank is just a huge donation. And given the fact that we don’t receive eggs to often, and the demand, the heightened demand, for food assistance, it will turn over very quickly as food pantries, and other agencies that we serve, access these eggs and distribute it needy people in the community.”

  Flood says that high unemployment has pushed the demand for food assistance up more than a third in the last year. MoArk is donating a total of a million eggs to food banks across the country.

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  • April 10, 2009 3:10 PM
  • Categories: Business/Economy

• LA Times staffers protest front page TV show ad

  Earlier this week, the staff of UCLA’s Daily Bruin lamented the paper’s wrap-around ice cream ad as an unsavory concession to hard economic times. KPCC’s Cheryl Devall says that today, it’s the turn of the Los Angeles Times staff to protest an ad in that paper.

  Cheryl Devall: Below the fold on the Times front page, the left column resembles a newspaper story about a hero rookie cop. But the so-called story – adjacent to a display ad for NBC’s new police drama “Southland” – is about the lead character on the show.

  For months, section fronts in the Los Angeles Times have carried horizontal ads across the bottom of the page. But to at least 100 journalists who petitioned against it, this mock story crosses a line. Some object to the way it looks. The typeface and column width are out of sync with the newspaper’s design.

  The petition also accuses L.A.’s largest daily of “violating a 128-year pact” with its readers “that the front page is reserved for the most meaningful stories of the day.” It concludes: “our willingness to sell our most precious real estate to an advertiser is embarrassing and demoralizing.” Like most dailies, the Times has lost lots of advertising to online and other platforms.

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  • April 9, 2009 3:39 PM
  • Categories: Business/Economy

• State insurance commissioner promotes low cost auto insurance

  State Insurance Commissioner Steve Poizner was in downtown Los Angeles today to promote the California Low Cost Automobile Insurance Program. Poizner said that when people lose their jobs – as many Californians have in recent months – they think about cutting monthly expenses, including car insurance.

  Steve Poizner: “The number one reason people, why people do not have auto insurance, is economic reasons. People think that they can’t afford it. Hence, the value of this program here. Most people don’t know that for $30 a month, they can be in compliance with the law and protect themselves and their families and other drivers out there.”

  To qualify for the program, an applicant must be a good driver – no at-fault accidents or one-point moving violations in the last three years. A family’s income can’t exceed 250 percent of the federal poverty line. And the vehicle’s value can’t be more than $20,000.

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  • April 9, 2009 2:30 PM
  • Categories: Business/Economy, Transportation

• Diamond Bar cuts deal with City of Industry, won't sue to stop stadium

  The goal line’s in sight for the football stadium project in the City of Industry. KPCC’s Nick Roman says one of Industry’s municipal neighbors won’t sue to stop the 75,000 seat stadium project.

  Nick Roman: In exchange, Industry will pay Diamond Bar – its southern neighbor – $20 million to ease the annoyances that come with a big football stadium, like traffic jams and bright lights. Twenty-million dollars is just about equal to Diamond Bar’s annual budget.

  Industry will also pay for a sports field at a Diamond Bar school – and it’ll toss money into a “community facilities fund” for parks and other amenities. The Diamond Bar City Council signed off on the deal – in part because there aren’t many options.

  Councilwoman Carole Herrera told the San Gabriel Valley Tribune that “there’s no way to stop” the stadium. That’s OK with a number of cities in the San Gabriel Valley eager for the jobs a stadium will bring.

  It’s not OK with Walnut – Industry’s northern neighbor. It’ll still take a shot at blocking the stadium project in court. But it could be tougher without Diamond Bar as an ally.

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  • April 8, 2009 4:36 PM
  • Categories: Business/Economy, Politics/Public Affairs, Sports/Recreation

• Secretary of Housing and Urban Development talks about mortgage scam artists

  California continues to lead the nation in home foreclosures. Last year, lenders repossessed 12,000 properties in the City of Los Angeles.

  L.A. Mayor Antonio Villaraigosa and the Secretary of Housing and Urban Development Shaun Donovan toured bank-owned homes in South L.A. today. Donovan told reporters that scam artists are trying to take advantage of people seeking help with their mortgages.

  Shaun Donovan: “No one, anywhere in the country, needs to pay anything to be eligible for our assistance. Not one dime. And if somebody is asking you to pay up front, you should say no and you should get assistance that’s available.”

  Democratic Congresswoman Maxine Waters accompanied Donovan and the mayor on the tour.

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  • April 8, 2009 3:14 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA mayor and federal HUD secretary visit South LA

  During the last two years, banks have foreclosed on more than 21,000 homes in the City of Los Angeles.

  L.A. Mayor Antonio Villaraigosa, federal Housing and Urban Development Secretary Shaun Donovan, and Democratic Congresswoman Maxine Waters toured some bank-owned properties in South L.A. today. Waters says Washington lawmakers are working with local leaders to help restore neighborhoods.

  Maxine Waters: “In the absence of bold interventions and successful partnerships, over 8 million homes could enter foreclosure over the next four years. California has had more foreclosures than anywhere else.”

  The Obama administration’s stimulus package included billions of dollars to help local governments address the foreclosure crisis.

  With that money, the City of L.A. plans to start a new non-profit called Restore Neighborhoods L.A. It will buy foreclosed homes below cost, make them more energy-efficient, and sell them, below market value, to families who qualify.

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  • April 8, 2009 3:05 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Emergency rooms feel effect of Californians losing health insurance

  It appears that more people may be putting off routine health care procedures because of the recession. An estimated half million people have lost their medical insurance in California since the start of the economic downturn.

  Dr. John Schunhoff, interim director of L.A. County’s Department of Health Services, says emergency rooms in L.A. County and across the state are feeling the effects.

  John Schunhoff: Each of our county emergency rooms have anecdotal info that people are coming in to ER because they have let their health insurance go – fired or laid off – and thus they have no primary care – and they’re coming in with conditions that become an emergency because they have no primary care.

  Schunhoff spoke on KPCC’s “AirTalk.” The California Healthcare Foundation released a survey that found 43 percent of people younger than 50 had postponed care for a chronic health condition because of the cost.

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  • April 8, 2009 12:12 PM
  • Categories: Business/Economy, Health

• LA county supervisors request federal government relax welfare rules

  The Los Angeles County Board of Supervisors has asked the federal government to relax eligibility requirements for welfare recipients. KPCC’s Frank Stoltze has more.

  Frank Stoltze: Supervisor Gloria Molina says L.A. County denied 7,000 families CalWORKs welfare assistance last month because of federal eligibility rules. The county turned down another 19,000 households seeking food stamps.

  Gloria Molina: We’ve always had people who’ve been disqualified but we’re seeing a huge escalation.

  Stoltze: Federal rules disqualify families with more than $2,000 in accessible cash resources – like a savings account – or a car worth more than $4,600. In some cases, Molina said, people who receive unemployment insurance don’t qualify for welfare.

  Molina: Right now, many of those families are watching insurance companies get bailed out, automakers getting bailed out, and they’re sitting there saying “Why can’t I get a helping hand at a time like this?”

  Stoltze: Molina said the county and federal governments likely would share the cost of increased welfare payments, if Congress and the Obama administration agree to loosen eligibility requirements.

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  • April 7, 2009 10:54 PM
  • Categories: Business/Economy, Politics/Public Affairs

• County supervisors approve designs for 16 acre downtown park

  The Los Angeles County Board of Supervisors today approved the schematic design of a 16 acre park in downtown L.A. Supervisor Gloria Molina says the park will stretch four blocks from the Music Center east to City Hall. A concrete walkway occupies most of that space now.

  Gloria Molina: “We’re going to restructure that entire area and green it – plant more trees, create pedestrian walkways, add water features, and create a very green oasis inviting to the downtown area, which is all glass and cement and steel. And create a more pedestrian orientation near not only our civic center but many of our cultural institutions as well.”

  The estimated cost of the park: $56 million. Fifty million of that will come from the Grand Avenue Project fund. That $3 billion high-rise project is stalled as developers figure out how to finance it in the bad economy. The city’s Community Redevelopment Agency still needs to sign off on the park before its construction can begin.

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  • April 7, 2009 10:41 PM
  • Categories: Business/Economy, Politics/Public Affairs

• California cotton magnate JG Boswell dies

  California farming magnate J.G. Boswell controlled 150,000 acres of cotton land when he died on Friday at age 86. Journalist Mark Arax told KPCC’s “Patt Morrison” that Boswell, a graduate of prep school and Stanford University, cultivated the image of a cowboy who’d accumulated his fortune almost by accident.

  Mark Arax: “He would tell stories about how all this land and all this water just kind of fell into his lap by luck, and he really downplayed the building of an empire. In fact, he took issue with the word ‘empire’ itself. But, really smart guy who really brought a kind of agriculture to California that was different.”

  Arax, co-author of Boswell’s biography “The King of California,” said his subject exerted major influence over policies on agricultural water use, farm labor, and business. The privately-held company he inherited from his uncle is the nation’s largest cotton producer.

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  • April 7, 2009 4:44 PM
  • Categories: Business/Economy, History

• Mayor Villaraigosa proposes cutbacks for city employees to avoid layoffs

  Los Angeles Mayor Antonio Villaraigosa today said the city will have to lay off nearly 3,000 employees, unless those workers agree to forgo pay raises. KPCC’s Frank Stoltze says that’s not all the mayor wants from L.A.’s 40,000 city workers.

  Frank Stoltze: The mayor also wants them to contribute 2 percent more of their paychecks to their retirement benefits. Right now most pay 6 percent. He’s also proposing that city workers – including police officers and firefighters – work for free one hour a week to help address a $530 million deficit.

  Mayor Antonio Villaraigosa: I’m reaching out to union leaders and asking them to come to the table and work together in the spirit of shared responsibility and shared sacrifice.

  Bob Schoonover: I think we still have a long ways to go.

  Stoltze: Bob Schoonover of the Service Employees International Union represents city mechanics, gardeners, and garbage collectors.

  Schoonover: I think we’d like to concentrate a little more on efficiency improvements.

  Stoltze: At the same time, Schoonover concedes that the city faces one of its worst-ever budget crises – and he says he remains open to the mayor’s proposals.

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  • April 6, 2009 4:46 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Mayor Villaraigosa says he would take pay cut along with city employees

  Because the city of Los Angeles is facing a $530 million budget gap, its mayor, Antonio Villaraigosa, is urging city employees to take unpaid days off and salary cuts. He told KPCC’s “Patt Morrison” that he wouldn’t be immune.

  Mayor Antonio Villaraigosa: “The mayor is prepared to ensure that I’m leading by example. That everything I am asking employees to do that’ll I’ll do as well. So if, as an example, we ask employees to cut roughly 10 percent of their salary or benefits, I will take the same cut.”

  About 40,000 people work for the city. The mayor says he’ll have to lay off 3,000 of them unless they agree to the pay cuts. Employee unions would have to agree to that.

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  • April 6, 2009 4:42 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA mayor proposes pay cuts, unpaid workdays for city workers

  Facing a $530 million budget deficit, Los Angeles Mayor Antonio Villaraigosa today proposed that city employees forgo pay raises and increase their pension contributions by 30 percent. The mayor said that otherwise, he’ll be forced to propose laying off nearly 3,000 employees.

  Mayor Antonio Villaraigosa: “The magnitude of these cuts would mean a dramatic drop in services, and I don’t believe that should be our course. This is a better course. This saves jobs, it saves services, it makes our city government more sustainable.”

  The mayor also wants city employees – including police officers and firefighters – to work one unpaid hour a week. Labor unions that represent city workers would have to sign off on any deal.

  The mayor also said he plans to propose privatizing some city service and selling advertising space on city-owned property to deal with plummeting tax revenues. The mayor formally releases his budget in two weeks.

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  • April 6, 2009 3:17 PM
  • Categories: Business/Economy, Politics/Public Affairs

• New tax credits available this year

  There’s a difference between a tax deduction and a tax credit. One shrinks the income that the tax is based upon – the other lowers the tax itself. KPCC’s Debra Baer says you’ll want to look carefully at the credits you might qualify for this year. Some are new; others are old with a twist.

  Debra Baer: Remember the First Time Homebuyer Credit? In February, Congress made it more generous for people who buy a home before December of this year.

  Victor Omelczhenko: Up to $8,000!

  Baer: That’s Victor Omelczhenko with the Internal Revenue Service.

  Omelczhenko: And you could actually claim it on the tax return you are doing right now to meet the April 15th deadline. You can take this credit for 2008 or on your 2009 tax return next year.

  Baer: If you end up buying a home after you file your taxes – this summer for example – he says you could simply amend your 2008 tax return and get the money back later this year. And, you won’t have to pay back that tax break back to the IRS over several years, the way many of last year’s homebuyers had to.

  Oh, and “first time homebuyer” is a misnomer. You qualify, Omelczhenko says, if you didn’t own a primary residence for three years before the new purchase.

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  • April 6, 2009 10:13 AM
  • Categories: Business/Economy

• Hawaiian Airlines leads domestic carriers in overall performance

  An annual report on the airline industry is out today, and it shows that Hawaiian Airlines leads all domestic carriers in overall performance. KPCC’s Steve Julian has more.

  Steve Julian: 2007 was the worst year in a decade for customer satisfaction, but the airline industry bounced back last year. Fewer people flew, but they were treated better, arrived on time more often, and still had most of their luggage after a flight.

  The downside? Fewer flights. Prices went up. And some airlines began charging extra for any luggage. Behind Hawaiian Airlines in customer satisfaction were AirTran and JetBlue, which had the lowest rate of denied boardings for the second year in a row.

  AirTran did the best job of keeping track of luggage; American Eagle did the worst. Southwest Airlines had the fewest complaints. The study, based on government statistics, ranked 17 airlines. Legacy carriers – American, Continental, Delta, and United – ranked in the middle, with regional carriers toward the bottom.

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  • April 6, 2009 10:10 AM
  • Categories: Business/Economy, Transportation

• Republican congressmen oppose newly passed national budget

  Both the House and the Senate passed versions of the federal budget before leaving town for their spring recess. But not everyone’s happy with the 3-and-a-half-trillion dollar budget. KPCC’s Washington Correspondent Kitty Felde reports.

  Kitty Felde: It’s the budget President Obama wanted and only a handful of Democrats voted against it in either the House or the Senate. Republicans voted together – against the measure. California Congressman Dan Lungren of Sacramento says it spends too much, it borrows too much, and it taxes too much.

  Dan Lungren: As the vote was counting down in the last two minutes, an infant was heard to cry out. And I’m not sure whether the infant was in the gallery or someone brought it to the floor. And one of the initial comments was “that child has seen that tax bill he or she will have to pay.”

  Felde: The budget measures predict a deficit next year of $1.2 trillion. The budget now moves to a conference committee to work out differences between the House and Senate versions.

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  • April 3, 2009 10:11 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Schwarzenegger appoints LA City Controller Chick to audit federal stimulus money

  Governor Schwarzenegger today appointed Los Angeles City Controller Laura Chick to the newly created position of state inspector general. KPCC’s Frank Stoltze reports her job will be to watchdog California’s share of federal stimulus dollars.

  Frank Stoltze: The governor said California’s expected to receive $50 billion in federal stimulus, and somebody needs to monitor it.

  Governor Arnold Schwarzenegger: We found somebody that is perfect for the job!

  Stoltze: As L.A. city controller, Laura Chick’s conducted dozens of audits that uncovered waste, fraud, and misuse of tax dollars.

  Laura Chick: It’s in my bloodstream to watch and count the dollars.

  Stoltze: It’s unclear how big the new state inspector general’s staff will be. Chick said she’ll rely a lot on state auditors. She and the governor promised that California would spend its stimulus the right way.

  Schwarzenegger: We will make sure that this money is not being used for maybe swimming pools or golf parks or other frivolous pork projects.

  Stoltze: Chick starts on April 27th. She was to leave her city job July 1st because she’s termed out of office. Last month, voters elected City Councilwoman Wendy Greuel to replace her.

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  • April 3, 2009 10:07 PM
  • Categories: Business/Economy, Politics/Public Affairs

• IRS provides free tax filing assistance

  Many recession-weary taxpayers are trying to cut costs by preparing their own taxes this year rather than hiring experts. KPCC’s Debra Baer has some information about free tax filing assistance.

  Debra Baer: If you make less than $42,000 a year, you qualify for free tax preparation help from VITA – the Volunteer Income Tax Assistance program. Low-income seniors with less complicated tax returns can get help from AARP, usually with an appointment.

  The Internal Revenue Service says demand is way up this year and the help is available first come-first served, so be prepared to wait.

  Victor Omelczenko: We’ve been hearing that people are really lining up to get that help. We had a super Saturday recently. A lot of people turned out for that. People are coming to our IRS taxpayers assistance centers as well as visiting the VITA and AARP tax aide sites.

  Baer: The IRS’s Victor Omelczenko says visits to the IRS.gov Web site are up 24 percent over last year. You can find out about tax assistance centers there. Also, there’s information about how to electronically prepare and file your taxes using professional software. It’s free if you made less than $56,000 last year.

  Note: If you live in Los Angeles County and would like to find a tax assistance center, you can call 2-1-1.

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  • April 3, 2009 2:52 PM
  • Categories: Business/Economy

• Anti-smoking activist opposes tobacco industry role in FDA smoking regulation

  The federal Food and Drug Administration hasn’t regulated tobacco products so far. But the U.S. House of Representatives this week passed a bill that would broaden the agency’s role. Longtime anti-smoking activist Dr. Stanton Glantz told KPCC’s “AirTalk” he opposes a provision that would create a role for the tobacco industry in the regulation process.

  Stanton Glantz: “To me, putting tobacco representatives on a policy-making body for the FDA would be a little bit like putting the Mafia on a policy-making body on organized crime for the Justice Department.”

  Glantz heads the Center for Tobacco Research and Education at UC San Francisco. The bill that would give the federal government regulatory power over tobacco for the first time still has to undergo scrutiny in the U.S. Senate.

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  • April 3, 2009 2:40 PM
  • Categories: Business/Economy, Health

• Uninsured numbers swell in California due to recession

  Disappearing jobs mean vanishing benefits for families. Among them: medical insurance. KPCC’s Debra Baer tells us a couple of new studies tally the toll.

  Debra Baer: The first is from UC Berkeley’s Center for Labor Research and Education. It found that since the recession began a year ago November, about a half a million Californians have lost their health coverage. Also, that the spike corresponds with the big rise in unemployment during the recession, from about 5-and-a-half to 10-and-a-half percent now.

  The other study by Families USA shows that more than one-third of California’s non-seniors were uninsured at some point during the last two years – more than 12 million people – and that most of them are in working families.

  Families USA Director Ron Pollack calls it “worse than an epidemic” – and a reflection of what’s happening to people around the country. Almost everyone in the U.S. has a relative, neighbor, or friend who was or is uninsured, he says, and that’s why lawmakers need to make health care reform a priority.

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  • April 2, 2009 3:06 PM
  • Categories: Business/Economy, Health

• FDA warns of potential pistachio salmonella contamination

  The federal Food and Drug Administration hasn’t issued a recall. But it is warning people to avoid eating California pistachios until scientists figure out the source of salmonella contamination in the nuts.

  Ryan Jacobsen of the Farm Bureau in Fresno County, where most pistachios are grown, told KPCC’s “Patt Morrison” that the government is suggesting caution instead of an outright ban.

  Ryan Jacobsen: “FDA at this point has not really said not to eat pistachios, but they are taking the precautionary measures to make sure that they can get this issue resolved as quickly as possible.”

  The bacterial contamination surfaced earlier this week. Salmonella can cause serious or even fatal infections in very young or elderly people and those with weak immune systems. Some food processors have issued voluntary recalls of their products that contain pistachios.

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  • April 1, 2009 3:16 PM
  • Categories: Business/Economy, Health

• State sales tax goes up, starting today

  No fooling – California’s sales tax rises a penny on the dollar starting today. It’s a temporary increase – in effect until at least two years from July. Nancy Sidhu with the Los Angeles County Economic Development Corporation says the change could add to the cost of big-ticket items.

  Nancy Sidhu: “If you’re looking at a $10,000 vehicle that you might be purchasing and you take 1 percent of that, that’s an increase of $100. Just on the one 10,000 and many people spend more than that on light trucks or cars.”

  Sidhu spoke with KPCC’s “AirTalk.” Sacramento lawmakers say they needed to impose the sales tax increase so they could close the state’s $42 billion budget hole. Next month, California voters will decide whether to extend the sales tax hike another year.

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  • April 1, 2009 2:44 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Actor unions cut deals with commercial producers

  The two actors unions – SAG and AFTRA – have reached a tentative agreement with advertisers and ad agencies on new three-year contracts for commercials. KPCC’s Brian Watt reports.

  Brian Watt: After nearly five weeks of talks in New York, negotiators reached the tentative deal a few hours past midnight – when the old contracts expired. Now, a joint national board of the Screen Actors Guild and the American Federation of TV and Radio Artists must approve the new contracts and send them to members for ratification.

  In a statement, SAG and AFTRA say the new three-year agreements include a more than 5 percent increase in wages and other payments to commercial actors. The deals also establish the first payment structure for commercials made for the Internet.

  The statement also says advertisers agreed to increase contributions to SAG and AFTRA’s health and pension plans by about $21 million. That had been a sticking point during contract talks. The advertisers and the actors unions also agreed to a pilot study that would test a system for paying actors for commercials based on ratings points – and not the number of times a commercial airs.

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  • April 1, 2009 2:33 PM
  • Categories: Business/Economy

• Obama administration rejects GM, Chrysler turnaround plans

  President Obama is rejecting the turnaround plans from General Motors and Chrysler. The Obama administration is giving GM 60 days to come up with a new plan in order to receive more federal assistance.

  Chrysler officials say that company is close to a merger with Fiat. President Obama is giving Chrysler 30 days to make it happen.

  Robert Scott of the Economic Policy Institute talked with KPCC’s Larry Mantle about one of the reasons American automakers have struggled.

  Robert Scott: “They tried to be everything to everybody with a proliferation of brands and models and, as I think we were hearing earlier on in the program, that has been very costly and hasn’t been a very effective way to see the best new models that they have. So I think the administration is right in saying they do need to streamline even further, reduce the number of brands that they have.”

  In a dramatic step during the weekend, the Obama administration forced the resignation of General Motors CEO Rick Wagoner.

  Mr. Obama this morning also announced steps to encourage domestic auto sales. The administration says it will begin backing new car buyers’ warranties. The president also noted that the economic stimulus plan he signed will allow buyers of new domestic cars to deduct the cost of any sales and excise taxes.

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  • March 30, 2009 3:25 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Tolls on 91 Express Lanes to decrease

  Some drivers who commute between Orange County and the Inland Empire are getting a break. KPCC’s Susan Valot says officials are cutting some tolls on the 91 Express Lanes.

  Susan Valot: Rates on the 91 Freeway’s toll lanes will go down by 50 cents at certain times, starting Wednesday. That means the tolls will now range from $1.25 up to a rush hour high of $9.55.

  The rates fluctuate based on how crowded the freeway is. When there’s more traffic, more people opt to use the toll lanes – so the toll rates are higher.

  But the Orange County Transportation Authority says with more people out of work – particularly in the Inland Empire – and with more people reeling back their extra spending, not as many drivers have been using the 91 Express Lanes. So tolls are going down. Last year, the toll lanes on the 91 Freeway generated nearly $40 million.

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  • March 30, 2009 3:22 PM
  • Categories: Business/Economy, Transportation

• Measure on May 19 ballot could help with California budget hole

  California’s recognition that federal stimulus money won’t be enough to close its budget gap is placing more pressure on lawmakers to promote revenue boosters on the May 19 ballot. State Assembly Speaker Karen Bass said voters’ response to those propositions could determine whether California will face an $8 billion budget hole or a $15 billion one.

  Karen Bass: “I just do not believe that there is a way for us to cut ourselves out of this. I mean we can’t cut any more in this extreme fashion. The cuts are already beginning to trickle down and impacting people’s daily lives.”

  Bass told KPCC’s “Patt Morrison” that state lawmakers already have had to trim from just about every state-funded program and department.

  Measures on the May ballot seek to allow California to borrow from state lottery revenues, apply restricted money for early childhood and mental health programs to the general fund, and enact other budget-balancing provisions.

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  • March 27, 2009 3:40 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Alt-weekly LA CityBeat goes under

  The music issue of Los Angeles CityBeat on the stands now is the paper’s final issue. KPCC’s Cheryl Devall has more on the demise of the alternative weekly.

  Cheryl Devall: When L.A. CityBeat launched six years ago, the young readers it targeted had a lot of disposable income. That made it a valuable magnet for ads from fitness clubs and day spas, cosmetic surgeons and fashion boutiques, movies and music clubs.

  The paper filled out the pages around all those ads with scrappy investigative reports, opinion pieces, and arts reviews. You probably can guess what’s coming next – much of the advertising migrated to platforms other than print, many of the small businesses that promoted themselves in CityBeat lost customers during the downturn as a good portion of the readers found themselves with less money to spend.

  All of this helped to sink the weekly distributed free to 1,500 locations around Los Angeles. Its parent company, Southland Publishing, will continue to produce the Pasadena Weekly, Inland Empire Weekly, Ventura County Reporter, and San Diego CityBeat.

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  • March 27, 2009 2:00 PM
  • Categories: Business/Economy

• California doesn't receive enough stimulus money to avoid further cuts

  California finance officials say the state won’t get enough federal stimulus money to avert further program cuts and tax increases. The state budget specified that California needed to receive at least $10 billion in federal money to offset its budget deficit.

  But state finance officials announced this morning that California will fall almost $2 billion short. Assembly speaker Karen Bass told KPCC she’s disappointed.

  Karen Bass: “I’m very concerned about the cuts that have already been done, let alone the idea of making more devastating cuts, in particular to education and health and human services.”

  The legislature pre-approved those cuts in case California didn’t get enough federal money. The result also means state income tax rates will go up by a quarter of a percent. It would have risen half that amount had California met the threshold.

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  • March 27, 2009 1:00 PM
  • Categories: Business/Economy, Politics/Public Affairs

• 40 percent fewer new vehicles sold than same time last year

  What follows probably won’t strike you as a surprise – fewer Americans are indulging in that new-car smell. KPCC’s Cheryl Devall has more on the latest figures from a Southland-based monitor of vehicle sales.

  Cheryl Devall: Forty percent fewer new cars and light trucks moved off the lot in the first 17 days of this month than during the same time a year ago, J.D. Power and Associates reports. The Westlake Village company tracks real-time transactions from more than 10,000 auto dealerships across the country.

  It projects that new car sales for March will fall almost 400,000 short of last year’s totals for the same month. A Power executive says economic headwinds – tight credit, concern over lost jobs, and the shaky prospects of the automakers, among other factors – have reduced demand for new cars. Dealer incentives haven’t helped.

  One bright spot did surface in this report. Sales of crossover utility vehicles – those not-quite-trucks, not-quite SUVs that most manufacturers have introduced in the last couple of years – are up by 3 percent over last March. The Power survey covers only direct-to-consumer transactions, not auto fleet sales.

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  • March 26, 2009 3:07 PM
  • Categories: Business/Economy

• LA City Council approves incentives for film/TV productions

  The Los Angeles City Council approved a package of incentives today for film and TV productions to stay in the city. KPCC’s Cheryl Devall has the story.

  Cheryl Devall: Even before the economic downturn, feature film and scripted television shows fled the Southland for places that offered tax breaks, lower labor costs, and other goodies to production companies.

  The departure of ABC’s popular “Ugly Betty” for New York last year was the final straw for some L.A. City Council members. A report from the council’s legislative analyst says a one-hour show like that one creates more than 180 jobs and supports another 540. It also generates upward of $3 million a year in state income and sales taxes.

  To try and keep all that in L.A., the city council has ordered city staffers to start researching local tax breaks, ways to ease parking restrictions for crews, and other incentives to lure more production. California’s also offering the entertainment industry a tax credit program that starts in July. Last year, feature film location shooting in L.A. dropped to a 15 year low.

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  • March 26, 2009 2:41 PM
  • Categories: Business/Economy, Politics/Public Affairs

• UCLA Anderson Forecast world trade drop hurts Southland economy

  The economists of UCLA’s Anderson Forecast predict the current recession will gobble up 7-and-a-half-million jobs. A year from this summer, they say, the unemployment rate will peak at 10-and-a-half percent across the country – and at almost 12 percent in California. KPCC’s Brian Watt reports on their latest bleak predictions.

  Brian Watt: The same team that hesitated to predict a recession last year says the country’s living through the worst few months of that downturn right now. Senior Economist David Shulman says it’s not just in the United States.

  David Shulman: This is a global slump and it will require global solutions.

  Watt: Shulman said world leaders should make sure that nations don’t respond to the money crisis by imposing protectionist policies. That advice may arrive late. Economist Jerry Nickelsburg says exports out of Los Angeles and Long Beach have fallen 35 percent since last August.

  Jerry Nickelsburg: The slowdown in international trade affects us not only at the ports, but also in all of our logistics – transportation, warehousing. And in our exports, it affects Southern California manufacturing.

  Watt: The forecasters predict that this country and state will start to recover from the recession by the end of this year. They hasten to add that the recovery won’t generate jobs for awhile.

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  • March 25, 2009 4:26 PM
  • Categories: Business/Economy

• California state treasurer asks for federal debt guarantee

  Banks, car companies, insurance groups – they’ve all come to Washington, D.C. looking for a bailout. Today, California’s treasurer came to town to ask for a little help with the bond market. KPCC’s Washington Correspondent Kitty Felde reports.

  Kitty Felde: It’s not that the state wants a direct bailout from the federal government – just a guarantee to back some of the state’s debt. A spokesman for Treasurer Bill Lockyer says so far, all that California’s heard is “thunderous silence” from Washington.

  Lockyer met with Treasury officials to make his case for federal loan guarantees. He also talked to California’s Congressional delegation. Democratic Congresswoman Zoe Lofgren of Silicon Valley heads the state delegation.

  Zoe Lofgren: You know, he was talking about the state budget. He told us about the general obligation bonds that the state was able to sell, and what the cash flow needs of the state are going to be in the next year, and how he is looking to cover that.

  Felde: This week, California completed the largest sale of long term general obligation bonds in the history of the U.S. – six-and-a-half-billion dollars of debt sold on the open market. State taxpayers will pay bondholders interest rates that range up to 6 percent.

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  • March 25, 2009 4:19 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Economist predicts recovery by end of year; jobs will take longer

  Economists with UCLA’s Anderson Forecast say the rough ride that began for California’s economy last fall will continue through this year. Forecaster Jerry Nickelsburg said the national and state economies will begin to recover from a deep recession by the end of the year. But, he added, that recovery won’t deliver jobs for a while.

  Jerry Nickelsburg: “After the recession is over with, we will not be growing fast enough to keep up with the growth in the labor force. So unemployment will keep growing into 2010 to that elevated level of 11.9 percent. Thereafter, it will start coming down.”

  Nickelsburg said Southern California’s ports, warehousing, and logistics industries are already feeling the effects of a drop in international trade. That could worsen if other countries respond to the global money crisis with protectionism.

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  • March 25, 2009 2:13 PM
  • Categories: Business/Economy

• Congressman Sherman says government shouldn't have bailed out AIG

  Throughout the economic meltdown, Democratic Congressman Brad Sherman has maintained that the federal government should not bail out financial institutions like insurance company AIG, no matter how big they are. He reiterated his position to KPCC’s “Patt Morrison” after today’s meeting of the House Financial Services Committee.

  Brad Sherman: “Receivership would have been and is the way to treat AIG, and it’s the way we deal in a capitalist society with insolvent institutions. We should be protecting capitalism from Wall Street, and instead, we’re protecting Wall Street from capitalism.”

  Sherman, a member of the House Financial Services Committee, represents part of the San Fernando Valley in Congress.

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  • March 24, 2009 3:41 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Congressman Sherman reacts to Geithner/Bernanke testimony

  Treasury Secretary Timothy Geithner’s told Congress that he needs new powers to regulate companies like AIG, the insurance giant that paid its executives millions of dollars in bonuses with federal bailout money.

  San Fernando Valley congressman Brad Sherman, a member of the House Financial Services Committee, heard Geithner’s testimony before that panel today. Sherman maintains that the Treasury secretary’s words won’t change many taxpayers’ perceptions of their place in the economic pecking order.

  Brad Sherman: “They’re getting screwed on the $100 million deals, they’re getting screwed on the $10 billion deals; they understand the bonuses and that opens the door to explaining to them how this latest deal is going to screw the taxpayer.”

  Sherman spoke with KPCC’s “Patt Morrison.” During this morning’s hearing, Federal Reserve chair Ben Bernanke told lawmakers that he’d considered suing to keep AIG from paying the bonuses, but that his legal advisors counseled against that action.

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  • March 24, 2009 3:39 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Southern California tourism industry takes hit

  The local economy has taken some huge hits with the slowdown in the travel industry. Hotel occupancy rates are down quite a bit; so are jobs at hotels. And the shops and restaurants that cater to out-of-towners have also cut jobs.

  KPCC’s business analyst Mark Lacter says various factors have contributed to the slowdown.

  Mark Lacter: “Business meetings are being called off because there’s so much concern about how it’s going to look for executives to be spending money. They’re calling it the AIG effect.

  “That’s when the company hosted a conference at a big fancy resort in Dana Point a few months ago. Also, since this is a global recession, the number of international visitors coming into Southern California is way down.”

  Domestic travel at LAX fell 10 percent in January from a year before. But Lacter say those numbers will probably improve in the next couple months. Airlines have been slashing their rates to attract travelers. Also, discount carrier JetBlue will begin flying out of LAX in June.

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  • March 24, 2009 2:12 PM
  • Categories: Business/Economy

• Obama administration unveils new toxic assets plan

  The Obama Administration has unveiled another plan aimed at ridding banks of “toxic assets.” The Public-Private Investment Program is designed to entice private investors to share in the risk associated with buying those troubled assets. U.S. Treasury Secretary Timothy Geithner’s plan cost taxpayers close to $1 trillion.

  Peter Morici teaches business at the University of Maryland. He weighed in on the plan during KPCC’s “AirTalk.”

  Peter Morici: “Once again Secretary Geithner is giving the bankers what they want, but it’s a very high stakes gamble this time. He’s gambling your children’s future – a trillion dollars is a lot of money to borrow and owe.”

  Federal agencies will secure up to 95 percent of the total value of the investment in matching funds or loans. That’s supposed to minimize the risk and maximize the return for private investors.

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  • March 23, 2009 2:26 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Federal judge reconsiders parts of Clean Trucks Program

  A federal judge will reconsider parts of the Clean Trucks Program at the port complex after an appellate court ruling. KPCC’s Molly Peterson says labor and environmental groups don’t like the decision.

  Molly Peterson: The ruling by a 9th circuit panel doesn’t affect the ports’ ability to collect fees from trucks in conjunction with the program. Efforts to subsidize cleaner burning trucks for use at the ports will continue. But it does send two other rules back to a district court judge for consideration.

  A trucking industry group is challenging the Port of Los Angeles’ prohibition on drivers working as independent contractors. Unions had sought that provision, and environmentalists backed it because, in their view, it would make truckers work more efficiently.

  The appellate court says those and other rules could place economic burdens on the drivers, and may be illegal. The opinion pleased the trucking industry group involved in the case.

  Environmentalists and labor groups that have defended the Clean Trucks Program said it would slow clean-air efforts at the ports. Now the two rules are sent back to the district court judge, who will decide whether to block them while the underlying case goes forward.

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  • March 23, 2009 12:07 PM
  • Categories: Business/Economy, Environment

• OC supervisors consider appealing sheriff pensions case

  Orange County supervisors will talk tomorrow about whether they’ll appeal a judge’s ruling in the county’s lawsuit to overturn certain sheriffs’ pensions. KPCC’s Susan Valot says the supervisors plan to hold that discussion behind closed doors.

  Susan Valot: The Orange County Board of Supervisors last year filed a lawsuit to try to ditch a pension increase that it approved a few years ago. The pension plan allows sheriff’s deputies to retire at age 50 with 3 percent of their salary for every year they’ve worked.

  But now, county supervisors say the retroactive pension increase – up from 2 percent – amounts to an illegal gift of public money. Last month, Los Angeles Superior Court Judge Helen Bendix threw out the lawsuit. She ruled that the pension increase is not a gift, and that case law backs her opinion.

  But county supervisors still think their case makes a valid point. They’ll decide whether to appeal the judge’s ruling. Cities and counties all over California are watching this case. If it were to succeed, it would give them a chance to roll back their own unfunded pension liabilities.

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  • March 23, 2009 10:23 AM
  • Categories: Business/Economy, Criminal Justice, Politics/Public Affairs

• Medical labs accused of Medi-Cal fraud

  State Attorney General Jerry Brown is accusing several medical laboratories of ripping off California’s Medi-Cal program. KPCC’s Patricia Nazario has more on the alleged scheme.

  Patricia Nazario: The attorney general says it works like this: labs offer some doctors and hospitals deep service discounts for patients with private insurance in exchange for more Medi-Cal patients. Then those labs bill Sacramento as much as six times more for the same services – blood tests, Hepatitis C and HIV screenings.

  Brown filed a lawsuit against seven medical labs, including Quest Diagnostics. He says he wants to change what’s become standard practice in the industry…

  Attorney General Jerry Brown: … and the relationship between the laboratory and how they bill and how the state to its medical program pays. This is big opportunity going forward to fix the problem.”

  Nazario: Brown says fraud has been a pervasive problem for 10 to 15 years. He says his office hopes to win back hundreds of millions of dollars for the state in court.

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  • March 20, 2009 4:32 PM
  • Categories: Business/Economy, Health

• Riverside County jobless numbers continue to rise

  The unemployment rate in Riverside County has surged to its highest level in 15 years. KPCC’s Steven Cuevas says the new jobless rate is double what it was just one year ago.

  Steven Cuevas: Close to 116,000 people in Riverside County were out of work last month. Temecula Valley resident Mat Richter is one of them.

  Mat Richter: I did have a fulltime job selling ad space which I got laid off from in November.

  Cuevas: Richter says he’s been searching for work in his field of expertise – marketing. But with seven kids to support he’s ready to flip burgers or dig ditches.

  Richter: My wife does work full time but we’re gonna run out of money here sooner than later. So I have to find something relatively quick. If things get really bad then I don’t know, I’ll just go out and find some part-time jobs or day labor kind of work.

  Cuevas: Richter could face stiff competition for even the most menial jobs. Inland construction and manufacturing sectors shed almost 3,000 jobs last month. There’ve also been steep job losses in retail and farming.

  Riverside County now has the second highest unemployment in the Southland behind Imperial County. The county expects to reap about $18 million for job counseling and worker retraining programs from President Obama’s economic stimulus package.

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  • March 20, 2009 4:16 PM
  • Categories: Business/Economy

• State attorney general accuses labs of Medi-Cal fraud

  State Attorney General Jerry Brown accuses medical laboratories of running a fraud and kickback scheme that’s swindled hundreds of millions of dollars out of California’s Medi-Cal program.

  The alleged abuses came to light when medical lab owner Chris Riedel tried to do business with doctors and hospitals, but couldn’t match his competitors’ prices. The Northern California businessman told reporters he hired an attorney and began his own investigation.

  Chris Riedel: “What we found is that these laboratories were charging deeply discounted prices to their private-pay clients and overcharging the Medi-Cal program to make up for the losses on the discounts.”

  That investigation’s result is the basis of this lawsuit. The attorney general filed his case in San Mateo Superior Court against seven labs, including Quest Diagnostic.

  Brown, a potential candidate for governor, said he wants to change what he called the labs’ questionable and pervasive practices, and to reimburse California hundreds of millions of dollars.

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  • March 20, 2009 2:44 PM
  • Categories: Business/Economy, Criminal Justice, Health

• Protestors demonstrate outside AIG's Century City offices

  AIG continued to take it on the chin yesterday – from the halls of Congress to the corner outside its offices in Century City. KPCC’s Brian Watt says two dozen people marched there to protest corporate excess.

  [Sound of drummer/singer]

  Brian Watt: The Service Employees International Union coordinated the peaceful protest, which grew to the drumbeat and tones of union rep Viron Moret.

  Viron Moret (singing): A-I-G: You can’t hide. I can see your greedy side.

  Watt: The marchers called the $163 million in bonuses paid out to AIG executives an example of the greed that has crippled the U.S. economy. Organizer Jono Schaffer said he was gratified that the U.S. House voted to impose a heavy tax on such bonuses. But to Schaffer, that vote only addresses part of a larger problem.

  Jono Schaffer: It’s not just one company. It’s not just one year. The average CEO in America earns 344 times what the average worker makes. It’s so far out of step with anyplace else in the world, it’s incomparable.

  Watt: The protest was one of many that unions and non-profits staged yesterday across the country outside banks and investment firms.

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  • March 20, 2009 11:43 AM
  • Categories: Business/Economy, Politics/Public Affairs

• President Obama visits Pomona electric vehicle center

  President Obama is on the final day of his two-day visit to Southern California. This morning he toured Southern California Edison’s Electric Vehicle Center in Pomona. The President said his administration would focus on putting 1 million plug-in hybrid cars on America’s roads in the next six years.

  President Barack Obama: “Because these cars of tomorrow require batteries of tomorrow, I’m announcing that the Department of Energy is launching a $2 billion competitive grant program under the Recovery Act that will spark the manufacturing of the batteries and parts that run these cars… (clapping) that will allow for the upgrading of factories that will produce them, and in the process create thousands of jobs in facilities like this one.”

  President Obama also announced a tax credit of up to $7,500 for Americans who buy the next generation of plug-in hybrids.

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  • March 19, 2009 1:26 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Concern about possible restrictions sparks rise in gun sales

  Gun sales reportedly have been on the rise since the election of President Barack Obama.

  Robert Musso owns Gun Kings Armory in Glendale. He told KPCC’s Larry Mantle that some people who’ve purchased from him have expressed concern that the new president might restrict firearm sales.

  Robert Musso: “A lot of people are concerned that with the new administration, they may not be able to get some of the things that they want in the future so they’re buying them now. And others are concerned with the worsening economy. They’re afraid of being robbed, having their things stolen.”

  President Obama said during the campaign that he would not take away people’s guns – and that he believed it’s possible for the government to impose gun control measures that respect the Second Amendment right to bear arms.

  Musso, the gun shop owner, said his revenues have probably doubled since the election. There’s other evidence of an increase in firearm sales. The nation’s leading handgun manufacturer, Smith and Wesson, reported higher-than-expected profits last quarter. FBI statistics indicate that required background checks for firearm sales have also risen this year.

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  • March 18, 2009 12:57 PM
  • Categories: Business/Economy, Criminal Justice

• San Diego Union-Tribune newspaper sold

  A major Southern California daily has changed hands. KPCC’s Cheryl Devall says there’s a Beverly Hills connection to the sale of the San Diego Union-Tribune.

  Cheryl Devall: The Copley family that owns the San Diego paper has been looking for a buyer since July. It wanted to negotiate the best possible deal amid slumping newspaper advertising and readership.

  A Beverly Hills firm, Platinum Equity, stepped up to buy the paper for an undisclosed price. The private equity firm specializes in acquiring businesses that face changing market conditions.

  Its purchase of the Union-Tribune ends 80 years of ownership by the Copleys, who at one time also controlled four dozen daily and weekly newspapers in California and Illinois. The family sold most of those properties over the years, and the San Diego paper was its only remaining daily.

  The Union-Tribune’s new owner expects to continue publishing after it completes the sale later this year. Dailies up for sale in two other cities – Denver and Seattle – stopped publication within the last month after buyers failed to surface.

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  • March 18, 2009 12:43 PM
  • Categories: Business/Economy

• Plan to reopen King/Harbor Medical Center wins board of supervisors approval

  The plan to reopen King/Harbor Medical Center as a full service hospital won approval from the Los Angeles County Board of Supervisors today.

  The county’s chief executive officer, Bill Fujioka, outlined the initiative during the supervisors meeting. He said his office has flagged the project as one of the county’s highest priorities.

  Bill Fujioka: “I feel that this project meets all the criteria and in fact could be a showcase for the county and for the federal government for federal stimulus dollars.”

  If that money doesn’t arrive, Fujioka said, he would look to the county’s coffers to complete the near $400 million construction project.

  Supervisors say the new Martin Luther King Hospital will be seismically safe. The planned facility would include 120 beds, an emergency room, and a pharmacy. It’s scheduled to reopen in about three years.

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  • March 17, 2009 3:08 PM
  • Categories: Business/Economy, Health

• Not enough cattle to meet demand for corned beef

  If you still haven’t bought corned beef for your St. Patrick’s Day feast, good luck finding it at your local grocery store. This year, several markets are reporting a shortage of the deli staple, and some are sold out.

  Old World Provisions is a corned beef processor based in Albany, New York. It distributes its products throughout the country, including Southern California. The company’s Ross Shuket says this year there aren’t enough cattle to meet the demand for corned beef.

  Ross Shuket: “Kill rates on cattle have been way down. Companies such as ourselves, who got our raw material booked out early enough, haven’t had shortages. But we know that many companies throughout the country who, who’ve waited to have their raw material in, have had issues.”

  Shuket says that raw material – namely, beef – has been more expensive than usual this year because the price of feed is up. Corned beef, a highly seasoned cut of meat, traditionally joins stewed cabbage on Irish-American tables when they honor Patrick, the patron saint of Ireland.

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  • March 17, 2009 2:18 PM
  • Categories: Business/Economy

• Realtors association economist says tax break reduction could hurt housing

  As a real estate data firm announced last month’s 39 percent drop in Southland housing prices, experts in the field are weighing the potential effects of a provision in the Obama Administration’s budget plan.

  It would reduce the tax break for households that earn more than $250,000 a year. Leslie Appleton-Young, chief economist for the California Association of Realtors, says that change could further delay the recovery of the state’s housing market.

  Leslie Appleton-Young: “Now that we’re starting to see some leveling off and stabilization at the low end, we’re going to see some, you know, there’s financing issues at the high end and other factors, we certainly don’t need to have one more negative hurdle for a buyer or seller to be concerned about.”

  Appleton-Young spoke with KPCC’s Larry Mantle. She noted that while the proposed shift in the income tax bracket would affect only the top 2 percent of Americans, one-sixth of those taxpayers live in California.

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  • March 17, 2009 2:15 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Getty trustees to make 25 percent cuts in May; no staff cuts planned before then

  Administrators at Getty Trust said today they plan no cuts in staff between now and May. That’s when trustees are expected to approve a 25 percent reduction at the Los Angeles-based museum, research center, and grant making institution. KPCC’s Adolfo Guzman-Lopez has more.

  Adolfo Guzman-Lopez: The Getty Trust’s endowment has tumbled almost $2 billion in the last couple of years. Right now it totals four-and-a-half billion dollars. That still allows it, by a lot, to maintain the title of wealthiest cultural institution in the country.

  But the Getty relies on the interest from its endowment to stay open. In response to the drop in that income, it’s already laid off almost 50 people. Two months ago, administrators said they would aim for a 25 percent cut in next fiscal year’s budget.

  Ford Bell, President of the American Association of Museums, says most American museums are feeling the same kind of pain as the Getty.

  Ford Bell: Museums I’ve talked to are making very careful choices. I mean, the Detroit Institute of Arts cut 20 percent of its staff, and that’s an outstanding museum, with a great collection, but in a difficult economic environment in Detroit.

  Guzman-Lopez: There are good cuts and bad cuts, Bell says. He adds that by keeping their education and patron services healthy, museums can help ensure they’ll stick around long enough for the economy to improve.

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  • March 16, 2009 5:05 PM
  • Categories: Arts, Business/Economy

• City cuts spay/neuter aid for low-income pet owners

  The City of Los Angeles plans to cut the voucher program that’s helped thousands of low-income pet owners get their animals spayed and neutered. KPCC’s Patricia Nazario has the story.

  Patricia Nazario: L.A. Animal Services General Manager Ed Boks says the city’s budget gap forced the decision. The animal services department is running a deficit of close to $420,000. Ending the spay/neuter voucher program would save about $150,000.

  Animal advocates criticize the decision. They say the vouchers reduce the number of unwanted dogs and cats by allowing pet owners to pay $40 for spay or neuter services – far less than they’d pay private veterinarians. It costs more than twice that per pet for the city to put animals down.

  L.A. City Councilman Tony Cardenas’ office says that if the voucher program ends, a proliferation of abandoned dogs and cats will turn up in the city by this summer. Cardenas’ office says he plans to fight the program cut when council returns from recess next week.

  L.A. Animal Services data shows the department’s already seen a 20 percent jump last year in the number of abandoned pets it handled. Pet owners blame home foreclosures and job losses that make it too expensive for them to care for pets.

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  • March 16, 2009 4:07 PM
  • Categories: Business/Economy

• Getty Trust cuts budget in response to economic downturn

  The J. Paul Getty Trust plans to cut its budget by nearly a quarter in the coming fiscal year. The Getty relies mostly on its investment earnings to operate its two museums and pay for its non-museum operations. Like most others, the Getty’s investment portfolio has taken a hit – it’s lost one-and-a-half billion dollars since July.

  American Institute of Philanthropy president Daniel Borochoff told KPCC’s “AirTalk” that the institution may have relied too heavily on investments for income.

  Daniel Borochoff: “If the stock market goes down, and it’s going to happen when things are tougher to get other sources of money, it’s not good. I mean there’s government money, the city and state – of course that’s harder now – there’s getting major donations from corporations.

  “There’s still wealthy people around that, had they built relationships with some wealthier people to send them money, then they would have those to come forward right now.”

  Getty president James Wood told the Los Angeles Times trust officials will decide by the end of May what reductions to make. That could include cuts to temporary exhibitions. The Getty museums do plan to continue free admission.

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  • March 16, 2009 1:03 PM
  • Categories: Arts, Business/Economy, Education

• Developers preview changes for Inglewood's Hollywood Park racetrack

  Hollywood Park occupies a big piece of land, with a lot of history. If Inglewood officials approve a redevelopment plan, the racetrack that’s operated there for 70 years will become a part of history.

  This weekend, developers are letting people examine a model of their plan to transform the venue into a mixed-use district that’ll include a movie theater, restaurants, parks, housing, offices, and retail space. KPCC’s Brian Watt reports.

  Brian Watt: The developers who bought the 238-acre property almost four years ago said they’d keep the thoroughbreds running for at least three years. But those horses are no longer the cash cows they once were. The developers have met with almost 150 Inglewood groups to get their comments on a plan called Hollywood Park Tomorrow.

  Project manager Gerard McCallum says that with the Lakers and Kings long gone from the Forum and horseracing losing ground, people in Inglewood have asked for a new “wow” factor.

  Gerard McCallum: You know, Inglewood was sort of known by this “City of Champions” idea of having these great teams, these great sports franchises. And so, the residents wanted something that gave a reason for people to come to Inglewood.

  Watt: In addition to almost 3,000 residential units, the design includes a 10-acre central park with two cascading lakes, separated by a 12-foot waterfall.

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  • March 13, 2009 6:48 PM
  • Categories: Business/Economy

• South Bay teachers, parents, staff protest school layoffs and cuts

  Proposed cuts in California’s education budget haven’t caught up with the Lawndale School District. None of its almost 500 educators have received the kind of layoff notices the Los Angeles Unified School District sent out to thousands of its teachers earlier this week.

  To demonstrate solidarity with others at risk of losing their jobs, about 100 Lawndale teachers, administrators, and parents marched in pink t-shirts. Kindergarten teacher Rosa Maria Garcia waved a sign over her head during the rally.

  Rosa Maria Garcia: “We want to put students first. We have to have teachers and custodians and secretaries and administrators to make that happen. This is why we’re marching through our community.”

  About 1,000 educators in the Inland Empire met at the Pomona School District headquarters for a similar protest. Public education activists planned similar actions throughout the state.

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  • March 13, 2009 6:20 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• California assembly speaker Bass concerned about deepening budget deficit

  The recession has torn a big hole in the state’s carefully crafted budget plan. The California Legislative Analyst reported today that the state has a new $8 billion deficit, thanks to rising unemployment and declining tax revenues.

  Assembly Speaker Karen Bass is one of the state leaders who, just last month, worked out a hard-fought compromise to close a $42 billion deficit.

  Assemblywoman Karen Bass: “There wasn’t any indication that revenues were going to go up, certainly, and of course we were praying that they would be stable. We did suspect that revenues would be down, but of course, we did not expect down to this extent.”

  Bass spoke with KPCC’s “Patt Morrison.” She says lawmakers will begin tackling the new deficit Monday. Legislative Analyst Mac Taylor said in his report that unless the governor and legislature address it soon, the deficit will grow to more than $12 billion in the next 16 months.

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  • March 13, 2009 6:15 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Congresswoman Waters defends actions on behalf of bank

  Is it a case of political influence for financial gain? Or is it just a lawmaker fighting for minority-owned banks? KPCC’s Washington Correspondent Kitty Felde says L.A. Congresswoman Maxine Waters has come out swinging.

  Kitty Felde: Recent stories in the New York Times and the Wall Street Journal say Congresswoman Waters pulled strings to set up a meeting last September between Treasury officials and black-owned banks.

  Waters has sent out an e-mail that says she did exactly that. She says she’s been “an outspoken advocate” for minority business, and wanted to make sure minority-owned banks could participate in the multi-billion-dollar Troubled Assets Relief Program.

  At that Treasury meeting, Boston-based OneUnited asked for $50 million in bailout money. Waters and her husband have owned at least a quarter of a million dollars in stock in OneUnited. Her husband served on its board. Treasury officials say the congresswoman did not disclose her financial link to the bank.

  But in her e-mail, Waters says her ties to OneUnited are “fully disclosed” in “official filings.” And she notes she did not attend the meeting between the banks and the Treasury officials.

  Note: Congresswoman Waters will be in her South L.A. district tomorrow (Saturday 3/14) to talk about the economic stimulus package. She’ll speak at the Inglewood Public Library at 10:00 a.m., and at Southwest College at 1:00 p.m.

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  • March 13, 2009 6:03 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Assembly Speaker Bass discusses California's latest budget shortfall

  Barely a month after California lawmakers wrangled a budget into place, another shortfall looms. The state Legislative Analyst’s Office projects an $8 billion gap in the coming fiscal year unless California closes tax loopholes and cuts more spending.

  Assembly Speaker Karen Bass said the only relief may arrive in a couple of months. That’s when California voters will weigh in on ballot questions on borrowing against the state lottery, and transferring restricted money for pre-school and mental health services to the general fund.

  Assemblywoman Karen Bass: “I’m really focusing on May 19th, because we have got to get these propositions passed. If we don’t, then that $8 billion figure can easily become 15. Because you know, the lottery is $5 billion, and then Proposition 10 and Proposition 63, that could be another one, one-and-a-half billion dollars. So we could be looking at a $15 billion hole if voters don’t turn out.”

  Bass told KPCC’s “Patt Morrison” that the scenario reminds her of the movie “Groundhog Day,” in which the same events play out in a seemingly endless loop.

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  • March 13, 2009 5:58 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Joshua Tree area hosts indigenous spiritual conference

  Spiritual leaders from around the globe are gathering in the desert near Palm Springs this weekend. KPCC’s Steven Cuevas says they’re there to examine the spiritual challenges facing the economy and the environment.

  Steven Cuevas: Just what does it take to re-ignite our “divine connection” with Mother Earth’s sacred cycles? Is our quest for more money and better technology severing our ties to humanity? Those just a couple of the heady spiritual conundrums a group of global sages will try to enlighten people about at the Interspiritual Conference in Joshua Tree.

  The conference will feature healers and shamans representing ancient spiritual traditions from Mexico, Africa, the Pacific Islands, and elsewhere. Many believe the global economic crisis stems in part from a global spiritual crisis.

  [Music: Lei’ohu Ryder singing]

  Among those participating is Lei’ohu Ryder, a traditional Hawaiian singer and peace worker.

  Lei’ohu Ryder: We are called in service to uplift humanity and life as one, and yes we are not denying that there are many things out there in our world that are catastrophic, that are pulling at life. But we are also here to remember that our stories as humanity have taught us to be one breath of life.

  [Music: Lei’ohu Ryder singing]

  Cuevas: The Interspiritual Conference runs through Sunday at the Joshua Tree Retreat and Wellness Center.

  LINK: Interspiritual Conference

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  • March 13, 2009 5:41 PM
  • Categories: Business/Economy, Environment, Religion/Spirituality

• Hollywood Park redevelopment model open for public viewing

  Anyone who wants to can get a look this weekend at a model of the plan to redevelop the Hollywood Park racetrack in Inglewood. Developers bought the 238-acre property almost four years ago. They plan to transform it into a mixed-use district that’ll include a movie theater, restaurants, parks, housing, offices, and retail space.

  The 70-year-old racetrack that operates there now would be history. Project manager Gerard McCallum says the new design plan draws on many racetrack visitors’ fondness for the lakes in Hollywood Park’s infield.

  Gerard McCallum: “We could not use the existing lakes, primarily because they’re old and they have some issues associated with them. But we decided to go ahead and re-create a 10-acre central park, if you will, in the middle of our project with these two cascading lakes, that would be separated by a 12 foot waterfall.”

  McCallum said he and the development team have met with more than a hundred neighborhood groups in Inglewood in recent years to field suggestions for the new plan.

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  • March 13, 2009 5:38 PM
  • Categories: Business/Economy

• Ford and United Auto Workers cut costs in latest contract

  Here’s a rare bit of bright news about the American auto industry – Ford Motor and the United Auto Workers have altered the union’s contract to save labor costs. UAW president Ron Gettelfinger told KPCC’s “Patt Morrison” the agreement will also save jobs. He said that’s because the union’s contract with Ford will follow the same pattern as those with Chrysler and General Motors.

  Ron Gettelfinger: “We’ve already worked out the contract language with all three of the companies. There are some minor differences between General Motors and Ford as an example. But for the most part the contacts are even.”

  Under the revised contract, Ford’s labor and benefit costs will total $55 an hour. Company officials say that’s in the ballpark with an average 48 to 49 dollars an hour for foreign automakers that build cars in this country. Now, Gettelfinger added, job one will be attracting buyers back to the dealerships.

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  • March 13, 2009 5:05 PM
  • Categories: Business/Economy

• Barron's financial analyst talks about encouraging economic news

  The week on Wall Street encouraged traders around the world that the U.S. markets may regain some strength amid the recession. Bob O’Brien of the financial news Web site Barrons.com told KPCC’s “AirTalk” that he welcomes the gradual shift away from relentlessly grim economic news.

  Bob O’Brien: “It was good to hear from a number of banks that they turned a profit in January and February. It was good to see Bernie Madoff actually being sent to jail. And it was good to get some of the economic data that we saw – the retail sales number for February showed a little bit of an improvement, certainly versus the downbeat expectation.”

  O’Brien cautioned that the financial markets may not have hit bottom yet. He said he believes investors will embrace risk slowly and deliberately until they pick up more encouraging signals on the economy.

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  • March 13, 2009 2:16 PM
  • Categories: Business/Economy

• Financial analyst says stock market isn't turning around yet

  It’s tempting to speculate that the stock market may be on its way back. The Dow Jones Industrial Average ended the day slightly up, at the end of a week that included a multi-day rally. But Bob O’Brien of financial news Web site Barrons.com says he’s not convinced the worst is over.

  Bob O’Brien: “We’ve got a lot of professional traders who are covering the bets they had laid that the market was going to go lower here. Kind of a classic short covering rally, we were deeply, deeply oversold.

  “And basically, all we’ve managed to do over the course of the last three or four days is get back to where we were about a week and a half ago. So, until I’m proven otherwise, I’m going to call this one other suckers’ rally.”

  O’Brien told KPCC’s “AirTalk” that the federal government still has to enact its stress test on the nation’s banks to determine which ones – and how many – are insolvent.

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  • March 13, 2009 2:06 PM
  • Categories: Business/Economy

• Southern California Edison increases rates

  Southern California Edison customers will see higher bills in the coming months. The California Public Utilities Commission approved the rate hike yesterday. Commission president Michael Peevey says the average bill will go up by $2.

  Mark Toney of The Utility Reform Network told KPCC’s “AirTalk” that his group estimates the rate increase would average $6 a month if it’s distributed evenly. But Toney predicted it won’t be.

  Mark Toney: “The problem is that because the tiers one and two – that is, the low usage customers have a capped rate, the people who are going to pay more are people who live in hot climates, have to have air conditions. We estimate that their bills will increase by $13 to 17 a month.”

  Edison said the additional money will go toward improving the utility’s infrastructure. The PUC’s decision allows Edison to raise rates by less than 2 percent a year during the next two years.

  Edison will begin collecting the new rates in about four weeks.

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  • March 13, 2009 1:31 PM
  • Categories: Business/Economy

• LA County proposes timeline for restoring King-Harbor as full-service hospital

  University officials at South Los Angeles’ Charles Drew School of Medicine, across the street from the Martin Luther King/Harbor Urgent Care Center, are looking forward to its restoration as a full-service hospital. L.A. County officials proposed a timeline for that this week.

  University president Susan Kelly says it’ll take several years before the new facility can begin to train medical residents again.

  Susan Kelly: “But it could still take medical students rotating through there and nurses and physician assistants. We certainly hope that from the moment it’s opened, that it can be a rotating site for medical students.”

  Before L.A. County closed the hospital a year and a half ago, it doubled as a teaching facility for the Charles Drew medical school.

  The L.A. County Board of Supervisors is proposing a partnership with the University of California and the state. If all the parties can work out the details, King Hospital could reopen in three years with 120 licensed beds.

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  • March 12, 2009 4:45 PM
  • Categories: Business/Economy, Education, Health, Politics/Public Affairs

• Congresswoman Maxine Waters in controversy over possible conflict of interest

  A report in The New York Times today has put new focus on an old story. It details how Congresswoman Maxine Waters helped set up a meeting last September between Treasury Departments officials and bank executives who serve low-income communities. An executive with Boston-based OneUnited pressed Treasury officials at the meeting for $50 million in federal bailout money. The Congresswoman’s husband used to serve on OneUnited’s board of directors… and owned a large amount of the bank’s stock.

  Reporter Eric Lipton wrote the New York Times story on the Treasury meeting with bank executives. He told KPCC’s “Patt Morrison” that the fact Congresswoman Waters may have had a financial connection with OneUnited was no secret.

  Eric Lipton: “As of the 2008 financial disclosure form, her husband had owned stock in the institution. But I guess some of the folks at Treasury felt that they would rather had known that the meeting that she requested was going to include executives from a bank that her family had financial ties to.”

  Lipton’s report says OneUnited’s president pressed Treasury officials for bailout money during the meeting. He asked for $50 million – but got only $12 million.

  LINK: Congresswoman, Tied to Bank, Helped Seek Funds (New York Times)

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  • March 12, 2009 4:36 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Reports raise questions about Congresswoman Waters helping Southland bank

  Published reports are raising questions about Congresswoman Maxine Waters’ efforts to secure $50 million in federal bailout money for a black-owned bank with branches in the Southland. In September, the Democratic congresswoman set up a meeting between OneUnited Bank – in which her husband has invested and had served on the board of directors – and the Treasury Department.

  The bank eventually landed $12 million from the federal government. Eric Lipton, who reported the story for the New York Times, said the bank and federal agencies deny any link between Waters’ intervention and the money.

  Eric Lipton: “There hasn’t been any House ethics review or request for review, it’s sort of just coming forward. And, you know, I guess it’s an open question as to whether or not in fact she did something wrong.

  “She insists and is very comfortable with the fact, well it’s my understanding that she believes there is nothing inappropriate here. But at least there was some at Treasury who were surprised to learn of her interest in this bank after the meeting occurred.”

  Lipton told KPCC’s “Patt Morrison” that the bank also raised about $20 million from private investors. The balance sheet for OneUnited has improved since last September, he said, and now regulators consider the bank to be reasonably well capitalized.

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  • March 12, 2009 4:19 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Swiss pharmaceutical Roche buys California-based Genentech

  Swiss pharmaceutical giant Roche has agreed to buy California-based Genentech for nearly $47 billion. KPCC’s Steve Julian reports.

  Steve Julian: Roche will pay $95 per share for the 44 percent of Genentech that Roche doesn’t already own. Its initial bid of $89 per share was rejected by Genentech’s board last July, but the board called on shareholders to accept Roche’s latest offer.

  Negotiations took a while because both companies are waiting for study results on the effectiveness of Genentech’s Avastin. The drug is already Genentech’s best selling product and is approved for various types of breast, lung, and colon cancers.

  Some analysts say a positive study could increase the value of Genentech’s shares. Roche said the combined company would be the seventh-largest U.S. pharmaceutical and would generate about $17 billion in annual revenues. It’ll be based in California.

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  • March 12, 2009 11:20 AM
  • Categories: Business/Economy, Health, Science/Technology

• People getting less news from daily newspapers

  The Los Angeles Times, the Los Angeles Daily News, and other Southland newspapers have cut staff and redesigned their content in recent months. Those and other changes haven’t convinced 31-year-old aerospace purchaser Amira Minasian to pick up a daily paper.

  Amira Minasian: “I mean I know a slew of people that use it. I think the younger generation might not be as exposed to it, but there are still generations that are alive and love the paper. So, I don’t think it’s time for it to go away just yet.”

  Minasian says she gets most of her news from television and the Internet. That trend is undermining newspapers throughout the country. The Miami Herald announced its latest round of job cuts today.

  That newsroom eliminated about 20 percent of its workforce – it’s ordered salary cuts and unpaid furloughs for remaining staff. Employees of the Post-Intelligencer in Seattle expect to hear within days whether that paper will continue to publish.

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  • March 11, 2009 4:10 PM
  • Categories: Business/Economy

• State courts cutting costs due to budget crunch

  The state of California’s judiciary isn’t that different from the state of many of its other agencies and services – the courts could use more money, says Ronald George, chief justice of the California Supreme Court.

  He reiterated to KPCC’s “Patt Morrison” what he told the state legislature last night – he’s not optimistic that federal stimulus money will fill the gaps in the state budget for the court system.

  Ronald George: “We are trying to do our own best to cut down costs – eliminating meetings, doing more by video conferencing, not filling vacant positions, having about one-third of our employees engage in voluntary work furloughs – but we don’t want to get to the point where we have to cut the public’s hours of service or actually eliminate certain services provided by the courts.”

  George said the state could use 150 more judgeships. So far, there’s money for 50, but California’s postponed filling 100 more that he said the courts desperately need in underserved areas including the Inland Empire.

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  • March 11, 2009 3:44 PM
  • Categories: Business/Economy, Criminal Justice

• El Camino College employment expo draws thousands

  Thousands of job seekers descended upon the gymnasium at the El Camino College Compton Center today for its annual employment and career expo. The event was open not just to students of the college, but to everyone. Coordinator Joseph Lewis says 75 potential employers – from health care firms to police departments – signed up to meet applicants at the event.

  Joseph Lewis: “There are jobs still out there, and there are employers still hiring. One of my jobs when I register employers to come here is to vet them out to see if they are truly hiring or coming to promote their business. And those who, that are truly hiring, are the ones that we allow to register.”

  While Los Angeles County’s unemployment rate is hovering around 10 percent, the latest state figures show that Compton’s unemployment rate exceeds 18 percent.

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  • March 11, 2009 3:04 PM
  • Categories: Business/Economy

• LA County municipalities sell, swap or trade stimulus monies for transportation

  For Sale: half-a-million federal stimulus dollars… at a discount. Municialities from Torrance to Temple City are transacting that kind of deal. KPCC’s Brian Watt explains how they work.

  Brian Watt: In Los Angeles County, the Metropolitan Transportation Authority is doling out at least $500,000 in federal stimulus money to every one of the county’s 88 cities. But each city has to spend that money on transportation-related projects. Some have turned this into an opportunity to make a deal.

  A city like Irwindale that needs the money for something other than transportation can “sell” its stimulus dollars to… Westlake Village, where city manager Ray Taylor really needs the cash to upgrade an overpass and an on-ramp along the 101 Freeway at Lindero Canyon Road.

  Ray Taylor: “We’re several million dollars short in terms of being able to pay for that, so these economic stimulus funds are a significant addition to our revenues and will help us.”

  Watt: So Westlake Village has offered to buy Irwindale’s half-million for $325,000. It’s working on a similar deal with LaHabra Heights. The cities on the selling end can deposit the money in their general funds.

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  • March 10, 2009 5:36 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• Economic recession spreads around the world

  From tobacco to movies, the United States is accustomed to disseminating its products throughout the world. Economist Harry Broadman told KPCC’s “Patt Morrison” that this country can add economic recession to its export list.

  Harry Broadman: “It’s now a question of whether or not this kind of crisis is going to undo the gains that have been made over the last decades in reducing poverty and perhaps threaten political stability in some of these developing countries.”

  Broadman said the rise in unemployment and the decline in gross domestic product affects economies, consumers, and immigration patterns from Eastern Europe to Africa, Asia, and Latin America.

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  • March 10, 2009 4:18 PM
  • Categories: Business/Economy

• LA County cities able to buy, sell transportation stimulus funds

  When it comes to federal economic stimulus money, Southland cities are getting downright creative. L.A. County’s Metropolitan Transportation Authority is allocating at least half a million dollars of the windfall to every one of the county’s 88 cities.

  Each has to spend that money on transit-related projects. Cities without transportation projects looking for dough can “sell” the stimulus bucks to others that need cash for roads, bridges, buses, and trains.

  Ray Taylor, city manager of Westlake Village, says his municipality is working on two deals to direct extra cash toward overpass and on-ramp improvements along the 101 Freeway at Lindero Canyon Road.

  Ray Taylor: “So essentially, we would be buying La Habra Heights $500,000 allocation for $310,000 and Irwindale’s allocation for $325,000, or 65 cents on the dollar.”

  The Pasadena Star-News reports that other cities are making similar deals. The cities on the “selling” end can deposit the money in their general funds.

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  • March 10, 2009 3:34 PM
  • Categories: Business/Economy, Politics/Public Affairs

• RV maker Fleetwood files for Chapter 11 bankruptcy protection

  Fleetwood Enterprises is getting out of the travel trailer business. KPCC’s Cheryl Devall says the former Fortune 500 company’s announcement coincides with its filing for Chapter 11 bankruptcy protection.

  Cheryl Devall: The Riverside-based company reported two years of substantial losses in its travel trailer division. Bankruptcy protection will make it easier to shut down that operation, a company statement said.

  That action will close three factories and two service facilities where about 675 people work. The company’s also laying off 65 people in its corporate offices.

  Fleetwood’s chief executive, Elden Smith, said that the company had tried to restructure the division and improve its products – but that “current market conditions proved too severe to continue the turnaround.” In other words, fewer people are buying camper and cargo units that hitch onto trucks and cars.

  Fleetwood plans to sell its recreational vehicle and manufactured housing businesses with the expectation that demand will rebound when credit eases up and consumer confidence improves. In the last three years, Fleetwood has reduced its workforce by 70 percent.

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  • March 10, 2009 3:10 PM
  • Categories: Business/Economy

• LAUSD administrators to vote on layoffs

  Administrators at Los Angeles Unified, the Southland’s largest school district, are poised this afternoon to take the first step toward closing a budget deficit by laying off thousands of employees. The decision is set to happen at a school board meeting this afternoon. KPCC’s Adolfo Guzman-Lopez is there.

  Adolfo Guzman-Lopez: L.A. Unified’s teachers’ union is mobilizing teachers and parents to rally at school district headquarter today. They’re protesting preliminary layoffs of nearly 9,000 employees, mostly teachers. The union’s threatening to disrupt the meeting with what it calls “civil disobedience.”

  L.A. Unified administrators are predicting that the district’s budget for the next fiscal year will be more than $700 million in the red. Administrators say that sending preliminary layoff notices is a step toward meeting a state-mandated layoff deadline. District officials hope that federal stimulus money and a changing state budget will result in less drastic cuts by June.

  Many California school districts are also voting to send layoff notices this week.

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  • March 10, 2009 1:42 PM
  • Categories: Business/Economy, Education

• Inland Empire commercial real estate market suffering

  You’ve heard a lot about the problems with residential housing. Turns out commercial real estate also isn’t doing too well, either.

  Richard Green is director of the USC Lusk Center for Real Estate. He told KPCC’s Larry Mantle that the problems with commercial real estate aren’t as bad as on the residential side. But Green said that just as in the residential market, people paid too much for commercial real estate several years ago.

  Richard Green: “Very few transactions getting done because sellers are not willing to give up the price they paid before. And buyers aren’t willing to pay what the sellers want. And so we’re seeing a very small number of transactions in the market right now.”

  The Inland Empire is faring much worse than L.A. County, primarily because of the large job losses in that region. Riverside County ranks fifth in the nation in delinquencies on commercial property mortgages. Cleveland and Detroit place first and second.

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  • March 10, 2009 12:47 PM
  • Categories: Business/Economy

• Business, elected leaders lobby DC for stimulus money

  Southern California business and elected leaders are in Washington D.C. this week to lobby for a slice of the federal economic stimulus package. KPCC’s Frank Stoltze reports that more than 200 people are part of a delegation organized by the L.A. Area Chamber of Commerce.

  Frank Stoltze: It’s the largest lobbying effort the Chamber’s ever organized. Southland business leaders and elected officials will meet with Obama Administration officials and members of Congress to promote the region’s ports, airports, and green technology companies. Chamber president Gary Toebben says they’re delivering a unified message.

  Gary Toebben: The overriding point is that we have the resources and the capacity in Southern California to be a leader in the economic recovery.

  Gil Ivey: Southern California is America’s recovery engine.

  Stoltze: Gil Ivey is chief administrative officer of the Metropolitan Water District. He says there’s intense competition for stimulus and other federal money.

  Ivey: Lots of people are back here – all 50 states, all governors, all cities – they’re all back here.

  Stoltze: States automatically get portions of the $787 billion federal stimulus pie based on their population. But cities, counties, and states have to compete for the rest of the money through competitive grants.

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  • March 9, 2009 6:18 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Business leaders, officials lobby in DC for Southern California

  More than 200 business leaders and elected officials from Southern California are visiting Washington D.C. this week to lobby for stimulus and other money. Los Angeles Area Chamber of Commerce president Gary Toebben says it’s the Chamber’s biggest delegation yet.

  Gary Toebben: “Certainly there’s never been a stimulus package like is currently being implemented. We have a heightened interest from our members and from elected officials in the five counties that are here from Southern California.”

  Los Angeles Mayor Antonio Villaraigosa, Pasadena Mayor Bill Bogaard, and Riverside County Supervisor John Tavaglione are among the elected officials on the trip. The delegation plans to meet with members of Congress from California and with Obama Administration officials, including the president’s chief economic adviser, Larry Summers.

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  • March 9, 2009 5:25 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Economic consultant discusses causes of high unemployment in Inland regions

  Riverside and San Bernardino Counties have experienced the best and the worst of times in the space of a few months. While the housing market may have been the main engine that drove the economy in the Inland Empire, economic consultant John Husing says the decline of other economic sectors has also contributed to high unemployment rates.

  John Husing: “Manufacturing has been fleeing the United States and fleeing California for a very long period of time. Really the twin things that were driving this economy have been, first of all, housing, second of all, other forms of construction. Basically, industrial facilities largely tied to logistics and distribution.”

  Husing spoke with KPCC’s “Patt Morrison.” The latest figures indicate close to 12 percent unemployment in the Inland Empire.

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  • March 9, 2009 4:43 PM
  • Categories: Business/Economy

• Unemployment high in Riverside and San Bernardino Counties

  In a little more than a year, the Inland Empire has tumbled from one of the fastest-growing areas of the state to the region with some of the highest home foreclosure and unemployment rates.

  Economic consultant John Husing told KPCC’s “Patt Morrison” that the mortgage lending crisis is the direct cause of unemployment in his area.

  John Husing: “Decline in the mortgage market for an area like this one, shutting down that part of our economy, ultimately spun over into the full economy, and that’s why we’re looking at the problem of these unemployment rates now.”

  The most recent figures show an unemployment rate of close to 12 percent in Riverside and San Bernardino Counties. Many of the jobs that disappeared were in new home construction and a new wave of technology start-up companies.

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  • March 9, 2009 4:40 PM
  • Categories: Business/Economy

• California poised to tap into federal stimulus money for education

  California’s likely to get about $2 billion for public schools, state education superintendent Jack O’Connell told reporters after he met with federal education secretary Arne Duncan. During a teleconference, O’Connell said he’s encouraged that Duncan seems to share his concern about improving the quality of teaching and learning.

  Superintendent Jack O’Connell: “I have two primary objectives here. One: make sure we qualify as a state for as much money as we’re entitled to. And two: get the money out the door to school districts as quickly as possible.”

  O’Connell assured reporters that the federal department would not delay the money. He added, though, that the one-time cash infusion would last no more than two years.

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  • March 9, 2009 3:47 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• California schools superintendent excited about relationship with new Administration

  California’s education superintendent Jack O’Connell is accustomed to delivering bad news about the state of public education. But after he met with federal education secretary Arne Duncan, O’Connell struck an optimistic tone in a teleconference with reporters.

  Superintendent Jack O’Connell: It’s clearly a new day. It’s a new day in our relationship with the federal government, and it’s very, very exciting. The conversation was focused on collaboration and focused on helping kids. I can sum this meeting up with one word: Bold.

  Not only could the state pick up a couple of billion dollars in federal education money, O’Connell said; he added that so far, he’s had three more conference calls with the new federal education secretary than he did with the previous one.

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  • March 9, 2009 3:28 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• Budget expert: California can use federal stimulus to avoid further cuts and higher taxes

  Budget experts are estimating that California will receive more than $50 billion from the federal stimulus package. The California Budget Project says there will be money for Medi-Cal, schools, tax credits, highway construction, and more.

  Some of the money could help California avoid further budget cuts and higher tax increases. But under state law, for that to happen, at least $10 billion of those federal stimulus dollars must be used to offset state spending.

  The state thinks it may fall short of that figure. But Jean Ross of the California Budget Project says the state can get above that threshold, and thus avoid triggering more cuts and higher taxes.

  Jean Ross: “We do believe that there is plenty of room, within the framework established by state law, to creatively use those federal funds to offset general fund expenditures and to avoid having to pull that trigger.”

  The state treasurer and finance director will hold a public hearing next week to determine whether the state can meet the $10 billion threshold.

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  • March 9, 2009 1:55 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Informal talks proceeding between screen actors and producers

  Formal contract talks between the Screen Actors Guild and the Alliance of Motion Picture and TV Producers broke down again about two weeks ago. KPCC’s Brian Watt says informal talks might be bringing the two sides closer together.

  Brian Watt: Guild members have been working without a contract in film and prime time TV for eight months.

  The Guild’s national board rejected the producers’ most recent contract offer last month because of a dispute over how long that contract would last.

  A day and a half later, the Guild’s leaders and negotiators had to get to New York for another set of talks: the commercials contract expires at the end of the month.

  This week, SAG has a break from the commercial break. The more moderate faction that holds a slim majority on SAG’s board says negotiators can now focus on the stalemate with film and TV producers. Variety reports back-channel talks between the two sides should continue this week.

  SAG hardliners want the board to send the producers’ last, best, and final contract offer to all SAG members… so they can reject it. The hardliners are also ready for a full membership vote on whether to authorize a strike. So far, the moderates have decided against both. Stay tuned.

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  • March 9, 2009 1:52 PM
  • Categories: Arts, Business/Economy

• Orange County transportation officials to discuss bus route cuts

  Tight times mean belt tightening for everyone. And for the Orange County Transportation Authority, that means cutting back bus service. KPCC’s Susan Valot says the transit agency’s board of directors plans to take that up at its meeting today, along with some other things.

  Susan Valot: The Orange County Transportation Authority is facing a budget shortfall of more than $36 million. It blames slashed funding from the state and a drop in sales tax revenue. The agency says there won’t be raises next year for administrative workers, and it’ll have to cut bus service. At today’s meeting, the board plans to talk about which routes it will cut in June.

  The board also plans to meet in closed session to talk about replacing CEO Art Leahy. After eight years at the Orange County Transportation Authority, he’s leaving to head north and run L.A. County’s Metro.

  On a brighter note, Orange County transportation officials will also discuss how to spend millions of dollars in federal stimulus money. Part of that money’s been earmarked for high-speed rail. OCTA’s been trying to move forward a high-speed rail line between Anaheim and San Francisco. Anaheim’s also pushing for a maglev high-speed line between Orange County and Las Vegas.

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  • March 9, 2009 1:21 PM
  • Categories: Business/Economy, Transportation

• McClatchy newspaper group to cut 15 percent of workforce

  Newspaper publisher McClatchy Company today announced its third and most severe plan to cut jobs among its 80 newspapers. KPCC’s Steve Julian says McClatchy’s holdings include five daily papers in California, including the Sacramento Bee.

  Steve Julian: McClatchy hopes to save as much as $110 million by cutting positions at its 30 daily and 50 non-daily newspapers. In 2006, McClatchy bought the Knight Ridder newspaper chain, but that left McClatchy more than $2 billion in debt at the end of last year.

  Ad revenue is down throughout the industry. McClatchy’s chairman Gary Pruitt said he’ll eliminate 1600 jobs, or 15 percent of McClatchy’s workforce. This round of cuts will begin by the end of the first quarter, and include just about every part of the business.

  The cuts will come through attrition, consolidation, and outsourcing some functions. Pruitt and other executives will cut their salaries by 10 percent and no bonuses will go out to executives this year.

  McClatchy also owns direct mail and direct marketing operations.

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  • March 9, 2009 1:06 PM
  • Categories: Arts, Business/Economy

• Downtown sports museum closing to public after three months

  A new downtown L.A. museum is closing to the general public. The Sports Museum of Los Angeles has only been open about three months. Its founder, Gary Cypres, says it just wasn’t attracting enough people.

  Gary Cypres: “If you had to point to one thing, it would be most people don’t even know it’s here. And so you’re confronted with this situation of, economically, do you want to spend the money in this environment to try and promote it? And is this the best time to try to do that?”

  Cypres acknowledged he didn’t spend any money to promote the museum at Main and Washington Streets. He also says he subsidized the entire operation, and didn’t rely on outside funding.

  The museum displays items that span the history of baseball, football, and other sports. Its collection includes the Honus Wagner baseball card, known as the “Holy Grail” of baseball card collecting.

  Cypres says he’ll continue to open the museum for charity events and group tours, and that other visitors may “piggyback” onto those tours.

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  • March 9, 2009 1:01 PM
  • Categories: Arts, Business/Economy, Sports/Recreation

• McClatchy newspaper publishing company cutting 1600 jobs

  Newspaper publisher McClatchy Company said today it plans to eliminate 1600 jobs, or 15 percent of its workforce. KPCC’s Steve Julian has more.

  Steve Julian: McClatchy faces plunging ad revenues plaguing the entire publishing sector. It’s also trying to recover more than $5 million owed by newspapers it had sold to companies that have recently filed for Chapter 11 bankruptcy. McClatchy owed just over $2 billion at the end of 2008, stemming from its acquisition two years previously of the Knight Ridder newspaper chain.

  McClatchy has 30 daily newspapers, mostly in the West and the South. One of those papers, the Sacramento Bee, announced plans last week to cut more than 10 percent of its union positions in the editorial and advertising departments. The Bee cut 86 jobs in June; its publisher and board members decided to forgo 2008 and 2009 bonuses.

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  • March 9, 2009 12:52 PM
  • Categories: Arts, Business/Economy

• Assemblyman Lieu will ask feds to change eligibility for mortgage assistance

  A California lawmaker says the Obama Administration’s new mortgage assistance plan excludes too many troubled homeowners to address the state’s foreclosure crisis. Assemblyman Ted Lieu says he’ll meet with officials in Washington this week to ask that the eligibility for the federal program be expanded.

  Assemblyman Ted Lieu: “California actually needs to stop, or at least mitigate, the number of home foreclosures that are happening right now. In January we had over 76,000 foreclosure filings, which amounts to one every 38 seconds. Until we slow that down, we’re never going to start our economic recovery.”

  California accounts for about one third of the nation’s foreclosures. The federal mortgage assistance program requires that a person owe less than 105 percent of the value of their home. That excludes almost half the homeowners in Riverside, and about a third of those in Los Angeles who owe more than their property is worth.

  The democrat from Torrance says he’ll meeting with Fed Chair Ben Bernanke and F.D.I.C. Chair Sheila Bair, among others.

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  • March 9, 2009 12:44 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Feds start issuing coupons for digital TV converters again

  Remember those digital TV converter box coupons that the federal government was handing out? Thanks to some new funding, the program is back in business and the coupons are “in the mail.” More from KPCC’s Debra Baer.

  Debra Baer: The NTIA (National Telecommunications and Information Administration) says everybody on the waiting list should get their $40 coupons within three weeks. It estimated the backlog at more than two million households.

  The program ran out of coupons and money in January. Congress then delayed the TV conversion to digital broadcast from February to June 12.

  The recent economic stimulus bill included funding to continue the coupon program. People whose coupons have expired will be able to re-apply, but not just yet. The NTIA is expected to announce soon when it’ll start taking those replacement requests.

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  • March 9, 2009 12:38 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Controller issues tax refunds, other payments, after budget delay

  California Controller John Chiang today said he’ll release $3 billion in tax refunds, student aid, and other payments delayed by the state budget crisis. The state will send checks over the next two weeks. But as KPCC’s Frank Stoltze reports, California continues to face serious financial problems.

  Frank Stoltze: Chiang says California can probably borrow enough money to cover a $630 million cash shortfall next month; but beyond that?

  Controller John Chiang: We have a huge question in the month of July.

  Stoltze: That’s the beginning of the new fiscal year, when the state always faces a shortage of cash. Chiang notes California still has the lowest credit rating of all the states. That’s in part a reflection of concerns about the new state budget.

  Chiang: Wall Street hasn’t said it’s sound. That’s a big question.

  Stoltze: Lenders will be watching closely when voters in May decide on a package of measures that would allow California to borrow against state lottery funds and shift mental health dollars into the general fund. But Chiang worries about lenders themselves.

  Chiang: When you have Citygroup falling below a dollar and people talking about issues involving Bank of America, what institutions have the wherewithal to provide the external borrowing required by the state of California?

  Stoltze: Chiang also predicts that state lawmakers soon will have to consider more spending cuts or tax hikes or both to address falling tax revenues triggered by rising unemployment and home foreclosures.

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  • March 6, 2009 5:00 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Hundreds show up for Orange County foreclosure-prevention fair

  More than five percent of Orange County mortgage holders are falling behind on their home loans. That delinquency rate has been increasing steadily for the last couple of years. Foreclosures have been increasing in Orange County over the last few months, too. KPCC’s Susan Valot stopped by a foreclosure prevention fair in Garden Grove yesterday.

  Susan Valot: A few hundred people packed into the Garden Grove Community Center to hear about the loan modification process. They then met individually with their lenders to see what sort of deal they could work out.

  Connie Der Torossian is with the Orange County Home Ownership Collaborative, which organized this particular fair. She says it gave homeowners who may be struggling with their payments a chance to meet with lenders face-to-face.

  Connie Der Torossian: The process of contacting the lender – even though we tell them to contact the lender as soon as possible, as soon as you know there’s going to be a problem – is a difficult one, because you don’t know if you’re talking to the right department. Usually when you first call, you’re in customer service or you’re in the collections department. And what you really want to get to is the loss mitigation department because those are the individuals that have the information, and they have the power to make changes to your loan.

  Valot: Los Angeles Neighborhood Housing Services will host a similar foreclosure prevention fair tomorrow from nine in the morning until one in the afternoon at Compton Community College.

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  • March 6, 2009 1:29 PM
  • Categories: Business/Economy, Society/Culture

• South LA soul food restaurant celebrates 20 years in business with 99-cent special

  Chef Marilyn’s Soul Food Express is celebrating its 20th year now through this weekend (March 6-8). The popular Crenshaw Boulevard eatery is offering every item on its menu for 99 cents… from fried chicken and mac-and-cheese to red beans and rice, Jambalaya, and Shrimp Creole.

  Chef Marilyn Cole says the tough economy has hit her business some. But she and her employees still pulled an all-nighter to prepare for the hungry hordes.

  Marilyn Cole: “We’re just giving back, and we want everybody to come out and enjoy. And we had a lady came in this morning. Her sister recently passed, so she acquired her five babies. And she was just crying because she said she’s gonna be able to feed them today; a balanced meal, a healthy meal. So she was one of our first customers. And I said, ‘Oh my God. I mean, it felt good being able to do that.”

  Chef Marilyn is also celebrating her 54th birthday, so the 99-cent special runs for 54 hours through Sunday.

  LINK: Chef Marilyn’s Soul Food Express

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  • March 6, 2009 1:28 PM
  • Categories: Business/Economy, Society/Culture

• Economist: Rise in unemployment will likely continue into next year

  The nation’s unemployment rate rose to 8.1 percent in February. Heidi Scheerholz of the Economic Policy Institute says that’s more than analysts were expecting.

  Heidi Scheerholz: “If you look at a plot of unemployment , it’s just skyrocketing. It shows none of that hopeful sign of sort of tapering off a little. The labor market is really in freefall right now.”

  Scheerholz told KPCC’s Larry Mantle that more than three-quarters of the nation’s industries are shedding jobs every month. She predicts the unemployment rate will continue to rise well into next year.

  The unemployment rate in California is higher than the nation as whole; it was at 10.1 percent in January.

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  • March 6, 2009 1:18 PM
  • Categories: Business/Economy

• New jobs report shows national unemployment at 8.1%

  Employers slashed more than 650,000 jobs last month. That brought the nation’s unemployment rate up to 8.1 percent.

  Heidi Sheerholz of the Economic Policy Institute says the rate is even higher if you count discouraged job seekers who aren’t actively looking, and people who work part-time but want full-time jobs.

  Heidi Sheerholz: “We’ve added an additional four million involuntary part-time workers in this economy since the beginning of the recession; so if you count up all of those people, the slack in the labor market is just profound.”

  Sheerholz told KPCC’s Larry Mantle that the February jobs report shows that the current downturn is rivaling the deep recession in the early 1980s, and will soon surpass it in depth and severity.

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  • March 6, 2009 1:15 PM
  • Categories: Business/Economy

• California Air Resources Board chair says she can work with automakers

  California policymakers and Detroit automakers are waiting for the federal Environmental Protection Agency to decide whether the state can limit greenhouse gasses from tailpipes.

  Mary Nichols, who chairs the state’s Air Resources Board, testified yesterday at an EPA hearing on whether California should get the okay to regulate. She told a conference at UCLA today that the state can work with Detroit.

  Mary Nichols: “We also recognize that the auto industry desperately wants to find a way to move towards a more unified set of standards that deal with energy efficiency, fuel economy, greenhouse gas emissions, at the state and federal level. And we are working with our counterparts in D.C. to move in that direction.”

  Nichols says California also wants to see unified national standards based on the state’s own tougher rules.

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  • March 6, 2009 11:35 AM
  • Categories: Business/Economy, Environment, Politics/Public Affairs, Transportation

• LA supervisor says stimulus fund could create 10,000 temp jobs

  There’s money in the federal stimulus package to create subsidized jobs. L.A. County Supervisor Don Knabe wants to use that money to put thousands of people back to work… soon. KPCC’s Brian Watt explains.

  Brian Watt: LA County could get $100 million from the Emergency Temporary Aid for Needy Families Contingency Fund. Don Knabe, Chairman of the County Board of Supervisors, has asked the County’s CEO to figure out how that money can help employ people as soon as possible in public agencies, non-profits, or private companies.

  Supervisor Don Knabe: It’s a pot of money with certain restrictions on it, and we need to be active in pursuing those dollars and putting people back to work.

  Watt: The restrictions mean that the county will have to kick in 20 percent of the subsidy… and that the jobs will only last from May of this year until next March.

  Knabe: Yeah, it is a temporary job, but at least it’s a job, and it puts people back working. It’s an opportunity to learn, opportunity to train. Who knows what it may lead to?

  Watt: Knabe hopes it’ll at least lead to a break for L.A. County welfare offices. They’ve taken on a dramatic rise in caseloads.

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  • March 5, 2009 7:09 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA Supervisor works to get 10,000 temporary jobs from federal stimulus package

  Across the country, companies are laying off thousands of workers by the week. In Los Angeles County, Supervisor Don Knabe is trying to put as many as 10,000 people back to work.

  Knabe says that more than $100 million is available from the federal stimulus package in a fund to create subsidized employment. He’s introduced a motion that asks L.A. County’s CEO to figure out how that money can help employ people as soon as possible in public agencies, non-profits, or private companies. There is one catch, Knabe says: those jobs would last only from May of this year until next March.

  Supervisor Don Knabe: “Obviously this is not a replacement job like many of the jobs we’re losing here in California. But on the other hand, it’s at least an opportunity to put people back to work, putting a paycheck in their pocket, spending money to go get groceries. In many cases, it relieves them of having to be on the county welfare rolls.”

  Knabe says L.A. County welfare offices have seen a dramatic increase in case loads, particularly involving people who’ve never had to use the welfare system before.

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  • March 5, 2009 5:52 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA's Metropolitan Transportation Authority hires Leahy as chief executive

  L.A. County’s Metropolitan Transportation Authority has hired Art Leahy as its new chief executive. KPCC’s Brian Watt says Leahy took the train up today from his current job to sign a four-year contract.

  Brian Watt: Art Leahy grew up in Los Angeles in a family of transit workers. He started his career as an L.A. bus driver 38 years ago. Leahy has spent the last eight years running the Orange County Transportation Authority.

  In L.A., Leahy takes on the country’s third largest public transit agency, with 200 bus routes and five subway and light rail lines. When a reporter asked how long it may take for one of those subway lines to reach West Los Angeles, he pointed out that he doesn’t start his new job for another month. But when he does start…

  Art Leahy: As a general rule, people will find me impatient, demanding. I want to make sure that we’re doing the very best that we can for the taxpayers. Sooner we can deliver these projects, sooner the taxpayers have the benefit of the projects.

  Watt: Leahy said the projects can create jobs during a time when many are disappearing. His new job will pay $310,000 a year.

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  • March 5, 2009 4:17 PM
  • Categories: Business/Economy, Transportation

• IRS tracking down alleged tax evaders with Swiss bank accounts

  Here’s something to ponder during tax season. The federal Internal Revenue Service is trying to obtain the names of as many as 52,000 Americans who may be evading taxes by parking their assets in the Swiss bank UBS.

  Officials of that bank say their country’s secrecy laws protect its account information, so giving it up could land its executives behind bars. Carrick Mollenkamp is covering the story for the Wall Street Journal. He described to KPCC’s Larry Mantle how the Swiss bank courted customers in the United States.

  Carrick Mollenkamp: “From Zurich, the bankers would be dispatched into kind of high net worth areas such as Miami, and the pitch was that those accounts would be ‘domiciled offshore,’ as they call it in private banking, in Zurich or in the Caymans or easily through offshore structures that ultimately hid the income from the IRS.”

  During a Capitol Hill hearing yesterday, federal financial officials and lawmakers raked UBS executives over the coals for allegedly helping wealthy Americans avoid paying billions of dollars in taxes.

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  • March 5, 2009 4:10 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Unemployment continues to rise in Riverside County

  New state numbers show Riverside County with a jobless rate of 12.2 percent. The January number is the county’s highest unemployment rate in 14 years. The Inland region has shed about 76,000 jobs over the last year. Riverside County continues to see big job losses in construction, transportation, and warehousing.

  Murrieta resident Mat Richter lost his white collar marketing job for months ago. Now he walks downtown streets with a sign that says: “Will Work for Salary.”

  Mat Richter: “A lot of people said, ‘Wow, why don’t you just market your own company like this?’ And I did get two marketing interviews out of this. Right now I’m not really sure what my goal is. I’m just kinda getting back to, I just need to get a job sooner rather than later. I’m not desperate; I’m determined. But I am running out of time here, so…”

  Richter has seven children to support. He says his wife is keeping the family afloat with her job as insurance claims investigator. Richter says he hasn’t ruled out manual labor. Riverside County could help him there. It has plans to break ground soon on several big public works projects.

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  • March 5, 2009 3:57 PM
  • Categories: Business/Economy

• Manny Ramirez re-signs with Dodgers for $45 million

  Manny Ramirez will be back in Dodger Blue this season. The enormously talented slugger signed a two-year contract not as enormous as he wanted. But KPCC’s Nick Roman says in tough times, everyone has to make do.

  Nick Roman: The two-year deal pays Ramirez $25 million this year, and guarantees him $20 million next year. But that doesn’t mean the Dodgers will pay next year’s $20 million. The deal allows Ramirez to leave L.A. after the season.

  His agent, Scott Boras, negotiated a contract like that for former Dodger JD Drew four years ago. Drew was hurt the first year, but he came back to be the top hitter on the Dodgers’ 2006 playoff team. Then he surprised the Dodgers by exercising his contract’s opt-out clause and signing with Boston for a lot more money.

  Maybe Ramirez signs elsewhere for more money next season. He and Boras thought that would happen this winter, but what Manny’s accepted is pretty much what the Dodgers offered in November. Still, he got a raise in a bad economy, and the Dodgers got a cracker-jack ballplayer who’ll sell tickets in a bad economy. Play ball! And after four months of contract stubbornness, both sides did.

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  • March 4, 2009 5:23 PM
  • Categories: Business/Economy, Sports/Recreation

• Members of actors union protest outside Fox Studios

  A few dozen members of the Screen Actors Guild picketed today outside the Fox Studios lot in West Los Angeles. KPCC’s Brian Watt says the actors are worried about playing a smaller role on the Web than on the tube.

  Brian Watt: The actors chose the Fox lot because of recent remarks by network executive Peter Chernin. He told an interviewer that Fox’s online streaming venture with NBC, HULU.com, doesn’t aim to replace television, but to replace reruns.

  For union actors, reruns mean residual payments. One marcher carried a sign that read: “Residuals are the Actor’s Life Blood.” Actor Reese Golchin says studios like Fox are claiming uncertainty about how much potential profit the Internet holds so they can avoid paying actors their share.

  Reese Golchin: As actors, we’ve been down that road before. We were there with home video. We were there with DVD sales. And what we’re saying is, there’s no need to exclude us from trying to figure out what the new paradigm is.

  Watt: Fox Studios offered no comment. A spokesman for the Alliance of Motion Picture and TV Producers says all studios want re-runs to perform well. But fewer viewers want to watch them on television.

  The actors who marched outside Fox were also protesting the last contract offer the producers’ alliance made to the Screen Actors Guild. SAG actors have been working in film and prime time television without a contract since last summer.

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  • March 4, 2009 5:07 PM
  • Categories: Arts, Business/Economy

• EPA will hold public hearings on California tailpipe emissions rules

  For years, California and more than a dozen other states have battled the federal government over the ability to regulate auto emissions. Tomorrow in Washington DC, the federal Environmental Protection Agency will convene a public hearing on the matter. KPCC’s Julia Mitric offers this preview.

  Julia Mitric: California, the country’s largest vehicle market, has changed its laws to tighten standards for tailpipe emissions. But the EPA blocked that move during the Bush Administration.

  At President Obama’s request, the environmental agency will reconsider its earlier decision. Auto industry officials don’t want California to adopt stricter emissions rules that would force expensive design changes.

  California Air Resources Board Chairman Mary Nichols challenges the industry’s argument.

  Mary Nichols: This is not calling for them to use any new exotic technologies that aren’t out there today. In fact, based on the information they’ve filed, they’ve demonstrated that they are meeting these standards right now – for 2008, 2009, 2010.

  Mitric: Nichols says now that 13 other states also want to adopt California’s tailpipe standards, a change in the rules could affect up to half the potential car buyers in the nation. She expects the EPA to make a final decision by June.

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  • March 4, 2009 3:59 PM
  • Categories: Business/Economy, Environment, Health, Politics/Public Affairs, Transportation

• Auto Club: Gas prices may start rising

  Filling up your car has cost a little less lately. The Automobile Club of Southern California says the average price of unleaded regular gasoline dropped to $2.21 a gallon yesterday. That’s down three cents from last week. Marie Montgomery of the Auto Club says gas prices may start rising again by the end of the month.

  Marie Montgomery: Locally in California, we’re going to be completing the switchover to our summer blend of gasoline, which is required by the state to improve air quality. That is going to be completed at the end of this month, and that typically does result in some increase in price, just because that formula of summer gasoline is a little more expensive to make.”

  Even though prices have been dropping, gas still costs, on average, 11 cents a gallon more than it did a month ago.

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  • March 4, 2009 3:09 PM
  • Categories: Business/Economy, Transportation

• LA and Orange County gas prices hold steady

  Gas prices in Los Angeles and Orange counties flattened out today after dropping five cents a gallon during the last two weeks. The Automobile Club of Southern California tracked the numbers. Experts say pump prices usually rise this time of year. Marie Montgomery of the Auto Club says it’s difficult to predict what gas prices will do next.

  Marie Montgomery: “We did see a drop in wholesale prices several weeks ago, which then got reflected last week in the drop that we had, and now it’s anybody’s guess whether they’re going to continue going down or if they’re going to come up.”

  Montgomery cautions against assuming cheaper gas prices will last much longer. By the end of this month, California will switch to the state-required “summer blend” of gasoline. It’s more expensive to produce, and it’ll likely result in higher fuel prices.

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  • March 4, 2009 3:04 PM
  • Categories: Business/Economy, Transportation

• Banker not sold on allowing bankruptcy judges to modify mortgages

  Housing policy experts and consumer advocates are applauding the Obama administration’s proposed changes to bankruptcy law. Pending legislation would allow bankruptcy judges to order modifications in mortgage loans well before homeowners face foreclosure.

  Robert Satnick, president of the California Mortgage Bankers Association, sees a downside to that approach.

  Robert Satnick: “Strong, solid portfolio lenders, they are going to look at this situation and say, ‘You know what? It’s just, it’s too dangerous, it’s too risky. I don’t know that I want to participate in this.” And we are going to see further drawing up of capital, making it even more difficult for homeowners to find financing or refinance capital.”

  Satnick spoke with KPCC’s “Patt Morrison.” His company, Prime Financial Services, is based in Van Nuys.

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  • March 4, 2009 2:58 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Congressman explains support for mortgage loan modification bill

  The White House has issued new details about its plan to help homeowners stay put when their payments climb too high.

  Congressman Brad Miller, a North Carolina Democrat, backed a bill that would allow bankruptcy judges to order loan modifications, and would offer incentives for mortgage lenders to make those changes before property owners risk foreclosure.

  Miller told KPCC’s “Patt Morrison” that many of the modifications the mortgage companies have made so far led to higher monthly payments, and forced people into default.

  Congressman Brad Miller: “If they start modifying in a way that helps people stay in their house, I’m for it. And knowing that if they don’t, a court can do it whether they want it or not; whether they like it or not. Everything we’ve done for a year and a half has been to beg the industry, or to bribe the industry, to do the right thing and modify mortgages. This would make them do the right thing.”

  Miller’s bill is called the “Helping Families Save Their Homes Act.”

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  • March 4, 2009 2:52 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Actors union members protest Chernin's remarks about reruns

  For many screen actors, residual payments from re-runs of their past work are an important source of income. Fox executive Peter Chernin recently told an interviewer that he sees online TV venture Hulu.com as a replacement for re-runs. So a few dozen members of the Screen Actors Guild protested his remarks today outside the Fox studio lot in West Los Angeles. Actor Sally Kirkland was among them.

  Sally Kirkland: “I’ve been getting residuals since the early ’60s, and that’s what’s kept me going for 45 years or more, and so I’m lucky. But all of the people, the kids coming up, they don’t have a chance. So I just ask the CEOs to think humanly about young people, and us people, and everybody that is just trying to stay in the business and just have a living.”

  Fox Studios offered no comment. A spokesman for the Alliance of Motion Picture and TV Producers said that all producers want re-runs to make money, but that fewer viewers are watching them on television.

  Kirkland and the other actors who marched also described the latest contract offer from the producers’ alliance to the Screen Actors Guild as unfair, especially in the category of Internet residuals.

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  • March 4, 2009 1:23 PM
  • Categories: Arts, Business/Economy

• OC supervisors approve fee to fight real estate fraud

  Orange County is beefing up its arsenal against real estate fraud. KPCC’s Susan Valot says county supervisors today added a $3 document fee to many real estate transactions to fight real estate fraud.

  Susan Valot: Last year, real estate fraud accounted for 10 percent of fraud cases brought to the Orange County district attorney’s office. So far this year, that number’s jumped to 30 percent. It might be a sub-prime loan the homebuyer can’t ever hope to repay, or maybe an offer to help a homebuyer avoid foreclosure – for a hefty fee.

  The district attorney’s office says it doesn’t have the manpower to investigate and prosecute all of those real estate fraud cases. So it asked for – and got – the document fee. It’s expected to bring in more than one-and-a-half-million dollars next fiscal year.

  That’ll go into the Real Estate Fraud Prosecution trust fund. That will pay for establishing investigators dedicated to real estate fraud in Orange County, along with a new hotline and Web site to report such fraud. The new fee kicks in next month.

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  • March 3, 2009 4:30 PM
  • Categories: Business/Economy, Criminal Justice, Politics/Public Affairs

• Banks taking advantage of more people relying on credit cards

  More people have been relying on their credit cards to make ends meet during this recession. Consumer activists complain that banks are taking advantage of that by arbitrarily raising interest rates and imposing more penalties that cause more people to default on their credit card payments.

  Jamie Court is president of Consumer Watchdog. He spoke with KPCC’s Larry Mantle.

  Jamie Court: “What I think has changed is that the credit card industry, which is the banks, have been losing a lot of money, and they’re finding more and more ways to tack on added fees. Late fees for payments that are very close to on time. Requiring payment of lower interest rate balances first.”

  Nessa Feddis, senior counsel for the American Banking Association, says new regulations take effect next year that will protect consumers from arbitrary interest rate increases. But Feddis also points out that interest rates actually dropped about a point for the 12 months that ended in November.

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  • March 3, 2009 1:12 PM
  • Categories: Business/Economy

• Southland car dealers close doors in bad economy

  More Southland car dealers have been closing their doors, and KPCC’s business analyst Mark Lacter says hundreds more could close by the end of the year.

  Mark Lacter: “Just a few days ago five dealerships in the L.A. area were closed – also, a Chevy dealership in Thousand Oaks was shut down after 41 years in business. The dealership was selling about 45 vehicles a month instead of about 140 when times were good.”

  Lacter says car dealers face several problems – the most obvious is that people are reluctant to buy a car during the recession, unless they have to. The recently-passed state budget increased the vehicle license fee and sales tax. That means car buyers will have to fork out even more money.

  Car dealers have also been struggling to pay loans, and that’s hurt their inventory. Lacter predicts that car sales could pick up again by the end of this year or the beginning of next.

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  • March 3, 2009 1:09 PM
  • Categories: Business/Economy

• Virgin will close remaining six U.S. Megastores

  Another music store is posting signs for its going out of business sale. KPCC’s Cheryl Devall says Virgin Megastores will follow Tower Records and Sam Goody into pop culture history.

  Cheryl Devall: Blame it on downloads and the downturn. Even the retailer that audaciously called itself “the world’s leading entertainment and lifestyle stores” couldn’t compete.

  The half-dozen Virgin megastores in this country occupied prime real estate that drew heavy foot traffic from tourists: Hollywood and Highland in Los Angeles; Union Square in San Francisco; vacation mecca Orlando, Florida.

  The entertainment industry blog The Wrap reported that company officials told staff about the closings late last week. About 100 people in Virgin’s L.A. corporate offices, and all the store-based employees, will be looking for work come summer.

  The flagship U.S. Virgin Megastore in New York’s Times Square was its top earner, but sales were declining even there. The L.A.-based clothing retailer Forever 21 is set to move into that location next month.

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  • March 2, 2009 7:14 PM
  • Categories: Business/Economy

• Jordan Downs advisory committee member has high hopes

  About 2,300 people live in the Jordan Downs public housing development in Watts. The Los Angeles housing authority proposes tearing down the existing apartments and creating what planners call an “urban village” that would incorporate retail into buildings with mixed-income tenants. Keyon Johnson, who lives at Jordan Downs and serves on the advisory committee for its makeover, harbors high hopes for the plan.

  Keyon Johnson: “We want to be given the same opportunities as other communities. You know, we want retail, we want shopping facilities, we want, maybe we want a Fresh & Easy or a Trader Joe’s or something like that where we can eat healthy.

  “You know we want to see money go back into our community. We don’t want to work somewhere and see our money go into other communities. We want it to come back to Watts.”

  Johnson spoke with KPCC’s “Patt Morrison.” The housing authority announced the $1 billion plan for Jordan Downs after years of unsuccessful efforts to drive gang crime out of the project.

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  • March 2, 2009 4:42 PM
  • Categories: Business/Economy

• Jordan Downs public housing project to be overhauled

  After declaring the crime-plagued Jordan Downs public housing project a failure, the city of Los Angeles proposes to tear it down and try something new. The plan for its future incorporates market-rate and reduced-rate apartments in a mixed-use development.

  L.A. housing authority chief Rudolf Montiel told KPCC’s “Patt Morrison” that the overhaul would not displace most people who live in Jordan Downs now.

  Rudolf Montiel: “We will actually begin construction of new units and screen and move tenants into those new units before we actually demolish the existing buildings. So from that standpoint, tenants that are in good standing today and that are in good standing when they, when the new units are built, will have the opportunity to live in the new community.”

  Montiel said his agency found 21 vacant acres for new construction next to the apartments in Watts. The plan would double the number of units to about 2,100. Officials expect it to cost close to $1 billion.

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  • March 2, 2009 2:30 PM
  • Categories: Business/Economy

• Major overhaul proposed for Jordan Downs public housing

  Big changes are in store for Jordan Downs public housing in Watts. The city of Los Angeles wants to tear down the existing apartments and replace it with a mixed-use, mixed-income development.

  The estimated cost of the plan – $1 billion. Rudolf Montiel, who heads the Housing Authority of the City of Los Angeles, said the existing development has outlived its usefulness.

  Rudolf Montiel: “Jordan represents a failed model of public housing nationwide. Where we took the poorest of the poor, concentrated these families into islands of poverty and despair and then expected good results. It just doesn’t work that way.”

  Montiel told KPCC’s “Patt Morrison” that the city built the project as temporary housing for defense industry workers during World War II. In the years since, Jordan Downs has acquired a notorious reputation as a haven for gang crime. Planners hope the “new urban village” they’ve envisioned for the site will attract new investment and jobs to Watts.

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  • March 2, 2009 2:24 PM
  • Categories: Business/Economy

• Dow falls below 7,000, positive economic news not helping

  The Dow Jones industrial average has fallen below 7,000 today for the first time in more than 11 years. Investors’ pessimism about the health of banks – and in turn the economy – is driving down stock prices. The credit crisis and recession have now slashed half the average’s value since it hit a record high over 14,000 in October of 2007.

  Marketbeat columnist David Gaffen of The Wall Street Journal says investors seem to be blind to any positive economic news.

  David Gaffen: “Y’know, it doesn’t matter what people think of valuation right now because they just don’t care. They just want to get out and go away from the markets. So 6,000 is right now a number that people are talking about. I wouldn’t be surprised to see it get within that range before too long.”

  Gaffen says that when the Dow was at 6,400 years ago, then-Federal Reserve chairman Alan Greenspan warned about “irrational exuberance” on the part of investors.

  Link: Marketbeat

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  • March 2, 2009 2:22 PM
  • Categories: Business/Economy

• Cargo traffic declines sharply at LA, Long Beach ports

  Cargo traffic’s declined sharply at West Coast seaports. Imports fell by 18 percent last month at the ports of L.A. and Long Beach. Ports in Oakland and Seattle expect expected drops of more than 20 percent.

  Nancy Sidhu is chief economist for the L.A. Economic Development Corporation. She told KPCC’s Larry Mantle that the drop in imports holds implications for other areas of the region’s economy.

  Nancy Sidhu: “The port activity supports a whole bunch of jobs involved in transporting the containers in and out of the port. And in making them up and storing them throughout Southern California.”

  Last month, the daily demand for workers at both ports fell as low as 384. That’s a little more than half the number of jobs that opened up on the slowest day three years ago.

  The loss of cargo business has also led the Port of L.A. to slash its cargo rates so customers won’t migrate elsewhere. The port’s planning to cut its lease fees by half for any new business. The Port of Long Beach is considering a similar plan to cut fees.

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  • March 2, 2009 12:49 PM
  • Categories: Business/Economy

• Tyler Perry tops box office, Jonas Brothers debut

  A comedy, a concert flick, and a movie about an impossible dream come true ruled the box office this weekend. Details from KPCC’s Debra Baer.

  Debra Baer: “Tyler Perry’s Madea Goes to Jail” was number one for the second week in a row, earning an estimated 16-and-a-half million in ticket sales. It even beat out “Jonas Brothers: The 3D Concert Experience,” which opened in second place with 12.7 million.

  That was the second biggest debut ever for a concert movie after last year’s “Hannah Montana & Miley Cyrus: Best of Both Worlds Concert.”

  More people went to see “Slumdog Millionaire” after it won those eight Oscars – it made more than 12 million, bumping it up from 5th to 3rd place. That’s the best post-Academy Awards weekend for a best picture winner in 10 years.

  Rounding out the top five – Taken was in fourth with almost 10 million followed by “He’s Just Not That Into You.”

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  • March 2, 2009 12:13 PM
  • Categories: Arts, Business/Economy

• More bad economic news could mean more local job losses

  More reports of financial industry trouble and recession are driving stock prices down today. The Dow has fallen below 7,000 for the first time in more than 11 years. The government reports a January increase in consumer spending, but a big drop in construction spending.

  That figures to add to the flood of job losses in Southern California. Nancy Sidhu of the L.A. Economic Development Corporation says three sectors of the local economy are taking the hardest hits.

  Nancy Sidhu: “The biggest job losses are coming in manufacturing where we are down 26-odd-thousand and number two is retail trade now, where we are down 22,000, and then construction is still up there of course, with losses of 18,000. So we have three sectors that are the primary problem areas with just about half of the total job loss.”

  About 66,000 jobs have disappeared in the last year in regional manufacturing, construction, and retail. That’s just a few hundred less than the population of Redondo Beach. Nancy Sidhu spoke today on KPCC’s “Airtalk.”

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  • March 2, 2009 11:07 AM
  • Categories: Business/Economy

• LA law firm lays off hundreds in biggest large firm layoff ever

  A major U.S. law firm founded in Los Angeles is giving pink slips to hundreds of lawyers and staff. KPCC’s Molly Peterson reports it’s the largest ever layoff at a big firm.

  Molly Peterson: Latham and Watkins was founded in downtown Los Angeles 75 years ago – it’s still got headquarters here. Since then it’s grown to more than 2,500 lawyers worldwide.

  The layoffs announced today include more than 250 staffers and paralegals, and 190 U.S. based associates. That represents about 12 percent of the firm’s associate base. The move came after the firm announced tough financial news last year – two of Latham’s major clients were investment firms Bear Stearns and Lehman Brothers, both of whom collapsed.

  Overall, Latham’s revenues dropped 4 percent, and profits were down 20 percent per partner – the worst drop among major firms. The firm’s managing partner said newly unemployed associates will get six months’ worth of severance at an amount up to $100,000, and six months of health insurance.

  That package is among the most generous among major firms that have released staff lately. Latham’s not the only major Los Angeles based firm with major clients troubled by the financial crisis – they and other firms say they’re watching their wallets closely in 2009.

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  • February 27, 2009 2:33 PM
  • Categories: Business/Economy, Criminal Justice

• Free spaying and neutering for San Fernando Valley pets

  San Fernando Valley families with pets can get their animals spayed or neutered free tomorrow. KPCC’s Patricia Nazario explains how it works.

  Patricia Nazario: Los Angeles Animal Services is partnering with city councilmembers Richard Alarcon and Tony Cardenas to offer the service. The procedure would cost at least $100 at a veterinary clinic. City officials are limiting the offer to families who live in the San Fernando Valley, generally from Encino to Sylmar.

  Owners must drop off their dogs or cats at 6:30 in the morning. Animal Services officials say they hope to fix 100 pets. It’s first come, first served though, so latecomers will get vouchers for the surgery at a future date.

  City Animal Services officials say more people are leaving pets at shelters these days because they can’t afford to keep them. City shelters are euthanizing 20 percent more animals a month than they did a couple of years ago.

  That’s one reason the city’s promoting spaying and neutering pets as a humane alternative. Besides, City of L.A. law requires most cats and dogs older than four months to be spayed or neutered.

  Link: Los Angeles Animal Services
  Link: Free Valley Spay and Neuter Day press release (PDF)

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  • February 27, 2009 1:38 PM
  • Categories: Business/Economy, Society/Culture

• Producers alliance president retires

  The president of the Alliance of Motion Picture and TV Producers has one month left on the job. Nick Counter is retiring after 27 years in the position. KPCC’s Brian Watt reports.

  Brian Watt: Nick Counter could be considered a founder of the producers’ alliance – or AMPTP. Counter worked 10 years as outside legal counsel for the Association of Motion Picture and TV Producers. In 1982, the Association became an Alliance, and Counter became president on day one.

  The AMPTP represents studios, broadcast networks, some cable networks, and independent producers in their contract talks with almost all of Hollywood’s guilds and unions. In a town where deal making is key, Counter has been the chief negotiator for his side on more than 300 big ones.

  Whether he can cut one more with the fractured Screen Actors Guild before his retirement remains to be seen. Counter – who’s 68 years old – is set to step down at the end of March. But SAG still won’t be rid of him then. He’ll continue as a consultant to the AMPTP for the next five years.

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  • February 27, 2009 1:32 PM
  • Categories: Arts, Business/Economy

• City of Industry approves plan for NFL stadium

  The Industry city council has unanimously approved a plan to build a complex that includes a 75,000 seat stadium for a National Football League team.

  Billionaire developer Ed Roski says he’s ready to finance and build retail, office, and entertainment space on 600 acres. Roski also hopes to buy part of an NFL team and move it to the Southland by next year. John Semcken is vice president of Ed Roski’s business, Majestic Realty.

  John Semcken: “The National Football League will not consider coming back to Los Angeles until they have a certain stadium that they know can be built. And what we have done, in conjunction with the City of Industry, is prove that this stadium can be built. This stadium can be built environmentally, this stadium can be built financially without public dollars. And that we’ll be able to put it in the region so that it benefits everyone.”

  Some homeowners and officials from the neighboring cities of Diamond Bar and Walnut have raised concerns about the air pollution, traffic, and safety problems that could accompany the complex. They have 30 days to file a legal challenge.

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  • February 26, 2009 6:37 PM
  • Categories: Business/Economy, Sports/Recreation

• New state tax credit for newly built homes

  Californians in the market for new homes may qualify for a new state tax credit starting Sunday. The incentive – part of the state budget package that became law last week – is worth 5 percent of the home price or $10,000 – whichever is less.

  Tim Coyle of the California Building Industry Association hopes the tax credit will help wake up the sluggish housing market – and create jobs. Coyle says more home construction ripples throughout the economy.

  Tim Coyle: “Just ask the people at Home Depot, and ask the furniture manufacturers, and the accountants, and the lenders who are involved in the home construction, home sale, and home improvement process.”

  Homebuyers must meet two criteria to qualify for the tax credit. They need to buy a newly-built home – and it must be their main residence for two years from the time of the sale. The program will run until a year from March or until its $100 million budget runs out – whichever happens first.

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  • February 26, 2009 2:58 PM
  • Categories: Business/Economy

• NewsCorp CEO Peter Chernin to leave post this summer

  NewsCorp president and chief operating officer Peter Chernin will mark 20 years with the media conglomerate next week. But he won’t renew his contract when it expires in a few months. Chernin has headed NewsCorp’s 20th Century Fox and the Fox Broadcasting network. NewsCorp chief Rupert Murdoch called his contributions “immeasurable.”

  Alex Ben Block is editor-at-large of the Hollywood Reporter. He says Hollywood will miss the way Chernin used his clout to break through labor disputes.

  Alex Ben Block: Someone new is gonna be there, and whoever it is, they’re not gonna have the same gravitas, the same confidence and respect, to be able to deal with all the other players here, the other companies, as well as the unions and guilds. So this is a negative for Hollywood, a negative for NewsCorp. Chernin leaving is a big deal, and it really shakes Hollywood to its roots.

  The news about Chernin’s departure follows a day after “Slumdog Millionaire” – the first Fox Searchlight film to win a Best Picture Oscar – swept the Academy Awards with eight trophies.

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  • February 23, 2009 6:15 PM
  • Categories: Arts, Business/Economy

• LA Daily News redesigns paper to save on paper

  If your Los Angeles Daily News feels a bit thinner today, it’s no accident. KPCC’s Cheryl Devall tells about cost-conscious changes in the paper.

  Cheryl Devall: In response to slumps in advertising, drops in circulation, and the rising cost of just about everything, newspapers are trying to save in every department – personnel, distribution, printing costs – especially newsprint.

  To use less paper, the Daily News is moving some daily features – puzzles, comics, the TV schedule, and advice columns. On Mondays and Tuesdays, those will run in the first section. Monday papers from now on will not include separate sections for opinion columns and business news.

  In a note to readers, the Daily News’ management explained the redesign in detail and thanked readers for their loyalty amid economic challenges. The San Fernando Valley-focused paper is making the same kinds of changes as the much bigger Los Angeles Times. Starting next week, that daily will discontinue its standalone section for California news so it can spend less on printing and paper.

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  • February 23, 2009 2:01 PM
  • Categories: Business/Economy

• Tyler Perry tops box office

  Most moviegoers were in the mood for a comedy this weekend. Details from KPCC’s Debra Baer.

  Debra Baer: Tyler Perry’s “Medea Goes to Jail” led the box office, making an estimated 41 million in its opening weekend. That’s the best opening ever for a Lionsgate film and for the once-homeless Perry who dresses in drag to play the feisty, gun-toting granny, Madea.

  In second place – Liam Neeson’s kidnap thriller “Taken” earned more than 11 million.

  The stop-motion animated film “coraline” rose to number 3 with $11 million, and in 4th place, “He’s Just Not That Into You” earned 8-and-a-half million.

  Oscar frontrunner “Slumdog Millionaire” pulled in more than 8 million in sales to rank number five at the box office before winning 8 of the 10 categories it was nominated for at the Oscars – including the Best Picture. Who doesn’t love to see the underdog win?

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  • February 23, 2009 12:54 PM
  • Categories: Arts, Business/Economy

• Authorities indict three Southern California men on movie piracy charges

  Just before the Academy Awards, the feds have indicted three Southern Californians for movie piracy. KPCC’s Brian Watt says two of the cases involve films nominated for Oscars.

  Brian Watt: The crime is called “uploading a copyrighted work being prepared for commercial distribution.” It carries a maximum penalty of three years in prison and at least $250,000 in fines.

  A federal grand jury indicted Owen Moody of San Marcos, alleging he’d uploaded a copy of “Slumdog Millionaire” to a Web site called “thepiratebay.org.”

  The grand jury charged Derek Hawthorne of Moorpark with uploading the films “The Curious Case of Benjamin Button” and “Australia” to Web sites where visitors could download them to their own computers.

  Authorities arrested Jack Yates of Porter Ranch last week in another case. Yates allegedly copied a screener of Mike Myers’ comedy “The Love Guru” before Paramount Pictures was set release it last June. The government contends that he distributed the copy to others and it wound up on the Internet before the release date.

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  • February 20, 2009 5:46 PM
  • Categories: Arts, Business/Economy, Criminal Justice

• Albertsons closes 9 Southland supermarkets

  The Albertsons supermarket chain began closing nine Southland stores this week. The parent company says the economy’s to blame. KPCC’s Adolfo Guzman-Lopez stopped by one location on its final day.

  Adolfo Guzman-Lopez: At an Albertsons in Lakewood, plywood covers the 15-foot windows like a blindfold. Alonzo Alexander misses the store’s convenience. It’s close to the school where he works. He’d often stop in to buy…

  Alonzo Alexander: Different stuff for the school, cakes, pies, coffee, etcetera.

  Guzman-Lopez: For 30 years Bob Franklin drove an Albertsons delivery truck to this and other area stores. He left on disability six years ago. He’s parked his car in the lot to see workers remove what’s left inside.

  Bob Franklin: I know everybody in this store. They all go to another store. The ones that want to go.
  Guzman-Lopez: How did they take it?
  Franklin: Well, they were sad, they didn’t want to see it closed. Nobody wanted to see it closed.
  Guzman-Lopez: What about the ones who got laid off?
  Franklin: Well it’s mostly courtesy clerks, people who push the carts and stuff, who’ve only been here for six months or something.

  Guzman-Lopez: About a dozen employees lost their jobs at the first four Southland stores that closed. The grocer says it’s trying to find jobs at its other locations for hundreds of other workers. Albertsons’ parent company expects sales to drop this year as more people shop at cheaper retailers and buy only the basics.

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  • February 20, 2009 4:24 PM
  • Categories: Business/Economy

• No deal yet in SAG contract talks

  Contract talks broke down last night between the Screen Actors Guild and the Alliance of Motion Picture and TV Producers. KPCC’s Brian Watt says the producers made an offer, but SAG’s new negotiating team wasn’t ready to accept it. Brian Watt: Hollywood already had a screenplay for these talks – the producers alliance would offer a few “concessions” to make SAG’s new negotiators look tough but productive, and they’d reach a tentative deal.

  Both sides were following the script when a new conflict arose over how long the next contract should last. The producers alliance says three years from the date it’s ratified – SAG’s team says July of 2011. That’s three years from when the last contract expired – and a lot closer to the expiration dates of other Hollywood labor contracts.

  Jesse Hiestand: We just don’t think that makes any sense for the industry because you’re basically inviting a situation where you’d have constant labor turmoil.

  Watt: That’s Jesse Hiestand, spokesman for the producers’ alliance.

  Hiestand: Also, it just economically makes no sense to give them three years of gains in what amounts to a two-year contract.

  Watt: Hiestand says the producers have included a compromise on that sticking point in what they call their “last, best, and final offer.” SAG hasn’t commented yet. Its national board of directors meets tomorrow.

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  • February 20, 2009 2:05 PM
  • Categories: Arts, Business/Economy

• Length of contract a sticking point in SAG negotiations

  Film and television producers have presented what they’re calling their “last, best, and final” contract offer to the Screen Actors Guild. The Alliance of Motion Picture and Television Producers presented the offer yesterday as the two sides broke off talks.

  Jesse Hiestand is with the producers’ alliance. He told KPCC that a sticking point in talks is when the contract should end.

  Jesse Hiestand: “The producers set out last April to negotiate a three-year deal. That’s the industry standard and that’s, and that’s what we negotiated with the five other unions and guilds over the last year.

  “SAG is saying because they haven’t made a deal for eight months – that they want a deal that would last a little over two years. And we just don’t think that makes any sense for the industry because you’re basically inviting a situation where you’d have constant labor turmoil.”

  Hiestand says producers have offered a compromise to the problem – but so far, SAG has rejected it.

  The Screen Actors Guild has not returned calls to comment on the contract offer. The union’s board is scheduled to meet tomorrow. The offer will stay on the table for 60 days.

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  • February 20, 2009 11:19 AM
  • Categories: Arts, Business/Economy

• Irvine homebuilder files for bankruptcy protection

  The downward spiral in the housing market has driven a major Southland developer to file for bankruptcy protection. KPCC’s Cheryl Devall has more about John Laing Homes.

  Cheryl Devall: The privately-held company that also does business as WL Homes has been around for 161 years. But the mortgage crisis, falling real estate values, and sluggish demand for new houses has battered John Laing Homes.

  Trouble has been brewing for a while – especially as housing construction slowed in the last three years. About that long ago, a developer in Dubai bought John Laing Homes and continued to operate it as an Irvine-based subsidiary.

  Recent articles in building trade journals reported that Laing had stopped construction, sales or both at developments in Sacramento, Colorado, Arizona, and Southern California. Earlier this week, a company spokesman said in published reports that Laing was considering all options to meet its funding needs. Chapter 11 bankruptcy protection is the option it’s chosen for now.

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  • February 20, 2009 10:53 AM
  • Categories: Business/Economy

• SAG contract talks less confrontational

  The Screen Actors Guild and the Alliance of Motion Picture and TV Producers finished a third day of contract talks yesterday. KPCC’s Brian Watt reports.

  Brian Watt: A negotiations insider says that the tone of the talks has been much less confrontational than during last year’s bargaining session. Then, the Guild had chief negotiator Doug Allen – and a harder-edged negotiating committee at the table.

  A group of moderates on SAG’s national board of directors has ousted Allen and replaced the committee with a negotiations “task force.”

  The board is scheduled to meet tomorrow in a videoconference. The agenda isn’t public, but many industry observers figure it’ll be a strategy session on talks with the producers’ alliance. The board has delayed a planned strike authorization vote, but it hasn’t taken that option completely off the table.

  SAG’s board also has another set of negotiations to think about – talks for a new commercials contract begin on Monday.

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  • February 20, 2009 10:50 AM
  • Categories: Arts, Business/Economy

• LA city officials hope to receive millions from federal stimulus

  Los Angeles city officials say they hope to receive millions of dollars from the federal stimulus package President Obama signed this week. KPCC’s Frank Stoltze reports that police and gang prevention programs may be among the beneficiaries.

  Frank Stoltze: The stimulus bill provides $4 billion for law enforcement programs nationwide – a quarter of that for new cops.

  Bill Bratton: One billion dollars for new police – approximately 13,000 new police – and we will aggressively compete for those additional positions.

  Stoltze: LAPD Chief Bill Bratton says that, unlike an earlier federal program to help cities hire police officers, this bill requires no matching funds. Democratic Congressman Xavier Becerra of L.A. says stimulus money for transportation and other projects do.

  Xavier Becerra: To be competitive and get those monies, the federal government’s gonna want to know that it doesn’t have to foot the entire bill for a particular project, which means you gotta bring in some matching dollars.

  Stoltze: He said L.A. County is well positioned in this regard, with its recent passage of a half-cent sales tax for transportation. At the same time, cities and counties across the region face falling tax revenues and may not have enough matching funds.

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  • February 19, 2009 2:55 PM
  • Categories: Business/Economy, Criminal Justice, Politics/Public Affairs

• Riverside County supervisor opposed tax inreases, but no alternative

  The new state budget is getting a cool reception from Inland counties. Many leaders there urged state lawmakers to pass a budget with minimal tax hikes. A proposed gas tax increase was ditched – but Californians will pay more in state sales and income taxes, and they’ll pay more to register cars and trucks.

  Riverside County Supervisor John Taviglione opposed higher taxes – but he says there was no alternative.

  John Taviglione: “No one wants to see tax hikes, but the condition of the state budget is so severe that there had to be a balance. There was no way to fix this budget without some level of tax hikes, and I have a lot of people that are going to disagree with me, but you know, enough is enough. Move on and fix the system up there so we don’t run into this every year.”

  While the state budget was stalled, Riverside County paid about $50 million from its own “rainy day” fund to cover welfare and other social service costs.

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  • February 19, 2009 2:51 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Bank of America gets rid of Countrywide brand name

  The name of Calabasas-based Countrywide – the home loan company that symbolized the highs and lows of the mortgage crisis – is disappearing soon. KPCC’s Cheryl Devall says it’s a strategic move by the company’s new owner, Bank of America.

  Cheryl Devall: After years of risky lending caught up with onetime industry leader Countrywide, Bank of America bought the company last year for $4 billion. Months after that transaction, the bank agreed to restructure hundreds of thousands of Countrywide mortgages to help settle borrowers’ claims against the lender.

  Now one of the country’s largest financial institutions has announced it’s ending Countrywide as a separate brand. The Wall Street Journal reports that the decision follows the elimination of more than 7,000 jobs at Countrywide and the installation of new management.

  It also further distances Bank of America from the public perception of Countrywide as a key player in the mortgage meltdown. Starting in late April, the division will be known as Bank of America Home Loans.

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  • February 19, 2009 2:48 PM
  • Categories: Business/Economy

• Disney announces restructuring, including layoffs

  The Walt Disney Company has announced it’s restructuring – a move that will lead to layoffs. KPCC’s Steve Julian has more.

  Steve Julian: Last month, Disney offered voluntary buyout packages to about 600 executives in the parks division. Now, the company, which is based in Burbank, said it will layoff an unspecified number of workers in the wake of declines in attendance and revenue.

  Parks and resorts revenue fell 4 percent in the final quarter of 2008, and attendance dropped 5 percent at its Walt Disney World and Disneyland parks in Florida and California.

  Global business and real estate development will be combined under a new team led by Executive Vice President Nick Franklin. Engineering and design teams will be merged into a single unit. The changes take effect immediately.

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  • February 19, 2009 12:17 PM
  • Categories: Arts, Business/Economy

• California Legislature approves budget bill

  By JUDY LIN, Associated Press Writer

  SACRAMENTO, Calif. (AP) - The California Legislature passed a budget early Thursday to help close a $42 billion deficit, ending an epic impasse that involved several all-night sessions and threatened to throw thousands of state employees out of work.

  Republican Gov. Arnold Schwarzenegger praised the bill, passed by the Democratic-controlled Senate and Assembly. He came out of his office after the budget vote and disconnected a large deficit clock counting the number of days - 106 as of Thursday - that the Legislature had failed to act since he declared a special session to deal with the state’s fiscal problems.

  “I’m absolutely delighted about the budget passing,” Schwarzenegger said outside his office.

  The budget deal flew through the Assembly less than an hour after it won approval by a single vote in the Senate after late-night horse trading to win over a final Republican vote. The vote marked the end of the Senate’s longest session at 45.5 hours.

  The package included a combination of spending cuts, tax increases and borrowing, intended to close a projected multibillion dollar deficit and avert fiscal disaster for the state. Some 10,000 state workers could have lost their jobs without the budget package.

  It plan California’s current fiscal year spending by nearly $13 billion from $103 billion to $90.7 billion. For the 2009-2010 bookkeeping year, which begins July 1, it sets a spending plan of $96.3 billion.

  The plan would raise the state sales tax by 1 cent on the dollar and increase the fee for licensing vehicles. The state personal income tax rate would go up by 0.25 percent.

  On the spending side, education funding would be cut $8.6 billion over two years, likely forcing schools to lay off teachers, slash salaries and postpone spending on construction and textbook purchases.

  Senate leaders secured the final vote needed from moderate Republican Abel Maldonado in late-night negotiations by agreeing to his demands for election changes, government reform and removal of a gas tax increase, giving them the two-thirds vote needed to pass the package.

  To win Maldonado’s support, legislators also agreed to ask voters to revise the state’s constitution to allow open primaries for legislative, congressional and gubernatorial elections.

  Leaders also met Maldonado’s demands to freeze legislators’ salaries in deficit budget years and to eliminate new office furniture budgeted for the state controller.

  Republicans who broke from their party in passing the tax portion of the package harkened back to former Gov. Ronald Reagan’s decision to pass tax increases during hard economic times.

  “What would Ronald Reagan do? Ronald Reagan would vote yes,” said Sen. Roy Ashburn of Bakersfield.

  Maldonado brought out a photograph of Reagan at a tax bill signing in 1972. He said he never thought he would have to defend California against members of his own party.

  “This is not about my political career. This is about the health and safety for the people of California,” Maldonado said. “My friends, this might be the end for me. This ensures it’s not the end for California.”

  For Ashburn’s support, legislative leaders included an amendment he backs that provides a $10,000 tax credit for those who buy new homes. The credit, supported by home builders, would be available starting in March and run through 2010. It would be capped at $100 million.

  Californians would be able to use the credit to offset their state income taxes over three years.

  Lawmakers also agreed to help the horse racing industry in his district - and throughout the state - by using $32 million in state funding each year to offset maintenance fees at fairgrounds.

  During the middle of the marathon budget battle, Republicans in the Senate ousted their leader over opposition to tax increases. Senate minority leader Dave Cogdill ultimately provided Democrats the first of the three necessary GOP votes.

  Assemblyman Chuck DeVore of Irvine said the tax increase will further harm the depressed economy.

  “We will be right back here in one year with the same problem,” he said during the floor debate. “No economist argues increasing taxes especially during weak economic times is going to result in people adding payroll, in people getting back to work … The opposite will happen.”

  Newly installed Senate Minority Leader Dennis Hollingsworth warned about the crippling effects of passing the state’s largest tax increase in California history.

  “You may count this as a win because you got a few Republicans to vote for it,” he said. “The taxpayers of California are going to view this as a loss.”

  Associated Press writer Samantha Young contributed to this report.

  (Copyright 2009 by The Associated Press. All Rights Reserved.)

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  • February 19, 2009 11:47 AM
  • Categories: Business/Economy, Politics/Public Affairs

• State schools superintendent talks about state budget

  State Superintendent of Public Instruction Jack O’Connell said today it’s been a good news/bad news week for California education. Public schools and community colleges in the state are thirsty for the nearly $10 billion in federal stimulus money approved in Washington, D.C.

  At the same time, O’Connell told reporters in a teleconference that lawmakers in Sacramento are close to approving a budget that will cut about $7 billion from statewide education. He said that’ll hurt schools in the short and long term.

  Jack O’Connell: “When we have a bad budget, when we have all this uncertainty, when we have a record number of layoff notices, fewer college students are entering the teacher preparation pipeline. And that’s going to cost us when you’re looking at a dramatic need to recruit the best and the brightest among us to enter the teaching profession.”

  He said the state budget rules that require two-thirds of lawmakers to approve have made the financial picture worse. O’Connell’s urging that the legislature reduce that threshold to a simple majority.

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  • February 18, 2009 5:25 PM
  • Categories: Business/Economy, Education

• State superintendent gives state budget mixed review

  During a teleconference today, state schools superintendent Jack O’Connell praised federal officials for greenlighting close to $10 billion for California public schools and community colleges. Still, O’Connell added, state lawmakers are likely to approve a budget soon that will force many school districts to send layoff notices to teachers in three weeks.

  Jack O’Connell: “I’m going to project a record number of layoff notices. This is more than just morale. We know from a difficult budget last year, many of our outstanding teachers leave the schools. I have seen billboards from other districts in other states, stating that our district values public education, come teach here.”

  Budget cuts would also swell class sizes, especially in the higher grades. O’Connell said California’s budget stalemate has worsened the state’s economic prospects during this recession. He urged Sacramento lawmakers and the governor to overhaul the budget process.

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  • February 18, 2009 5:03 PM
  • Categories: Business/Economy, Education

• LA County harbor complex begins collecting Clean Truck fees

  Los Angeles County’s harbor complex started to collect fees for the Clean Truck program on every truck coming in and out of the ports today. KPCC’s Molly Peterson reports it was slow going.

  Molly Peterson: At times, traffic headed into the ports of Long Beach and Los Angeles backed up for miles. Now that the Clean Trucks fee is in place, trucks must carry an electronic pass that signals an accounting system to collect up to $70 for each container that moves in or out of the port.

  The fee is meant to pay for cleaner-burning trucks to replace old, dirty diesel models. It’s part of a program aimed at improving air quality around San Pedro and Long Beach. Port officials estimate as much as 20 percent of traffic to the ports didn’t get through because trucks didn’t carry the electronic pass.

  Long Beach port spokesman Art Wong says thousands of trucks are getting through the new checkpoints, but slowly. Hundreds are not getting through, and port officials are still figuring out why. There’s already fewer containers to move – shipments through both ports were down almost 19 percent last month compared to the previous January.

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  • February 18, 2009 4:55 PM
  • Categories: Business/Economy, Environment

• San Bernardino approves deep budget cuts

  State lawmakers take note – bipartisanship is possible in times of deep fiscal crisis – at least at the local level. San Bernardino officials worked late into the night Tuesday to close a mounting budget deficit. KPCC’s Steven Cuevas says the city’s revised $150 million budget includes dozens of layoffs.

  Steven Cuevas: In all, about 50 people will lose their jobs. Most of those people work in city parks and libraries. Every other city department will also feel the pinch through pay and spending cuts – all departments, that is, except the police.

  The San Bernardino Police Officers Association vowed to sue the city if it did make cuts. Association president Richard Lawhead says 49 officers were sent layoff warnings last week.

  Richard Lawhead: “It’s robbing the city of the resources we have. The reason they’ve been able to enjoy such a low crime rate now and they’ve been touting it everywhere is the amount of visibility we’ve had on the street, the amount of men and women that are out there on the street protecting the citizens of this city.”

  In the end, San Bernardino council members decided not to lay off any police officers. But the council may still pressure officers to take a 10 percent pay cut to help the city close a $9 million budget shortfall.

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  • February 18, 2009 1:05 PM
  • Categories: Business/Economy, Criminal Justice

• County unions agree to no pay raise amid financial crisis

  Labor unions that represent more than 17,000 Los Angeles County government employees have agreed to forgo cost-of-living and salary increases for the next year. Steve Remige of the union that represents sheriff’s deputies said the county’s plunging tax revenues prompted the move.

  Steve Remige: “Ya know, we knew that these times were going to be hard, and we felt that it was more productive for our membership to make sure that we didn’t have to go through any type of concession bargaining with the county, like a lot of the other cities and counties up and down the state are currently experiencing with their employee unions.”

  Some cities and counties are laying off workers and cutting back on salaries. In addition to falling tax revenues, Los Angeles County could face more than $1 billion in deferred payments from the state of California through August.

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  • February 17, 2009 6:13 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Los Alamitos City Council eyes financial cuts... including city budget

  Like most cities around Southern California, Los Alamitos is feeling the pinch of a tight budget. The city council tonight will consider making a few more cuts. And, KPCC’s Susan Valot says, city officials may target themselves.

  Susan Valot: Los Alamitos city council members need to trim about $600,000 from the budget to stay on track. The Orange County city’s dealing with decreased revenue because sales tax and other fees are down.

  The city’s number crunchers suggest converting some positions to part-time and eliminating some jobs, like the assistant to the city manager. But city leaders might also take the scissors to their own budgets. They’re considering a 10 percent cut in their pay, and they’re planning to cut their own travel budget. That could save Los Alamitos about $20,000.

  The city’s also thinking of cutting back part-timer hours in the police department. The cuts could also mean eliminating of some park programs and ditching two of the “concerts on the green” in Los Alamitos.

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  • February 17, 2009 6:02 PM
  • Categories: Business/Economy, Politics/Public Affairs

• County unions agree to no pay raise amid financial crisis

  Labor unions that represent more than 17,000 Los Angeles County government employees have agreed to a one-year extension of their labor contract, without any changes. KPCC’s Frank Stoltze says that means no cost-of-living or salary increases this year.

  Frank Stoltze: As tax revenues plunge and the state faces a multi-billion dollar budget shortfall, Steve Remige of the union for L.A. County Sheriff’s Deputies says more pay seemed unlikely.

  Steve Remige: You know, we felt like this wasn’t a time that we needed to go to the County of Los Angeles and look for salary increases. You know, we realize that everybody is looking at the short end of the stick on this, with a lot of people being laid off, industries going under.

  Stoltze: Up and down the state, cities and counties are laying off employees or cutting salaries. Governor Schwarzenegger is threatening to lay off 10,000 state workers. L.A. County could face more than a billion dollars in deferred state payments. Remige says he’s happy to sign a one-year contract extension that keeps his union members working with the same salary.

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  • February 17, 2009 5:48 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Charles Drew University to hold Q&A with students about school's finances

  Students at a South Los Angeles medical school will be able to ask officials there about the school’s finances and future tomorrow afternoon. KPCC’s Patricia Nazario says the president of Charles Drew University wants one-on-one time with the students.

  Patricia Nazario: University president Dr. Susan Kelly started hearing about students’ concerns soon after she announced salary and job cuts almost two weeks ago.

  She promises that student amenities and services will not factor into her cost-cutting equation. Kelly says she wants more of the institution’s resources to go toward students.

  Dr. Susan Kelly: Because they have great needs at the moment. There’s not as much part-time work out there. We’ve put in a place a new scholarship program. We also will be distributing more of our own scholarship funds to students in needs, because these are hard time for everybody.

  Nazario: The medical university focuses on training urban health care practitioners. Its closest teaching hospital used to be the L.A. County run King-Drew Medical Center. Charles Drew lost millions of dollars when L.A. County supervisors closed the hospital a year and half ago.

  The global financial crisis is causing foundations and donors to scale back donations to the school. President Susan Kelly hopes that cutting executive salaries, travel, and overtime costs will help reduce annual expenses by $10 million.

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  • February 17, 2009 5:42 PM
  • Categories: Business/Economy, Education, Health

• Senator Boxer speaks in Beverly Hills about stimulus bill

  California’s junior senator Barbara Boxer was in Beverly Hills today to talk about how much federal economic stimulus money is heading to California. KPCC’s Special Correspondent Kitty Felde says the senator talked about counting Republican votes as well as stimulus dollars.

  Kitty Felde: Senator Boxer says California can count on 10 percent of the $787 billion in the stimulus package. She also expects to see positive effects from the spending within a few weeks.

  Boxer insists that passing the package was a bipartisan effort, despite the fact that not one House Republican voted for the measure and only three of Boxer’s Republican colleagues in the Senate cast “aye” votes.

  Senator Barbara Boxer: It’s very major to get those three Republicans. And even though that doesn’t look like a lot, in a body when there’s only about, we got almost 10 percent of them. It’s major. It’s big time.

  Felde: The House, she said, was a different matter.

  Boxer: I think there is no question that in the House there was the party of hope versus the party of nope.

  Felde: Boxer says while Senate Democrats invited Republicans to work on the bill, rules in the House of Representatives let the majority write bills without the other party.

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  • February 17, 2009 5:21 PM
  • Categories: Business/Economy, Politics/Public Affairs

• County unions agree to no pay raise amid financial crisis

  Labor unions that represent more than 17,000 Los Angeles County government employees have agreed to forgo cost-of-living and salary increases for the next year. Steve Remige of the union that represents sheriff’s deputies said the county’s plunging tax revenues prompted the move.

  Steve Remige: “Ya know, we knew that these times were going to be, and we felt that it was more productive for our membership to make sure that we didn’t have to go through any type of concession bargaining with the county, like a lot of the other cities and counties up and down the state are currently experiencing with their employee unions.”

  Some cities and counties are laying off workers and cutting back on salaries. In addition to falling tax revenues, Los Angeles County could face more than $1 billion in deferred payments from the state of California through August.

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  • February 17, 2009 5:17 PM
  • Categories: Business/Economy, Criminal Justice, Politics/Public Affairs

• California will get 10 percent of federal stimulus package

  U.S. Senator Barbara Boxer says California will get 10 percent of the money from the $787 billion stimulus package signed today by President Obama. She told reporters in Beverly Hills that the money will help stem job losses in a state where more than a million-and-a-half people are unemployed.

  Boxer will fly to Sacramento tomorrow to urge California lawmakers to pass a balanced budget. She says lawmakers have three options.

  Senator Barbara Boxer: “One is to do nothing, and that’s really not a passive act. That’s to me a very negative attack really on the people you represent. ‘Cause it means the status quo will continue. Then the other approach is to say I’ll only vote for perfect bill. But if you take that approach, nothing gets done either. So the third approach is to compromise.”

  Boxer says federal stimulus dollars will stretch out unemployment benefits, pay for public works projects, and fix schools. She says the money will also support school lunches and senior meals programs.

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  • February 17, 2009 4:34 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Restaurants cut back due to economic downturn

  It’s hard enough for restaurants to get customers through the door in a recession, but it’s just as hard getting diners to buy more than the main entree. Appetizers, drinks, dessert, and other extras are where these businesses realize their best profits – and these days, customers are likely to say, “no, thanks.” Jot Condie, head of the California Restaurant Association, said the decline in revenues is forcing some Southland eateries to cut back, too.

  Jot Condie: “If you can’t drive customers by value, or you can’t drive them by sort of retooling your menu, offering of course healthier options – you know the last resort is scaling back hours, closing for lunch.

  “For instance, a lot of restaurants that are in some of the downtown areas that are doing marginal business are shutting down for lunch altogether to try to keep the doors open.”

  Condie told KPCC’s “AirTalk” that chain restaurants – California Pizza Kitchen, Chili’s, P.F. Chang’s, and the like – are staying afloat by to using their higher-grossing locations to carry those that generate less revenue.

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  • February 17, 2009 3:16 PM
  • Categories: Business/Economy

• Producers alliance strengthened by SAG shakeup

  The Screen Actors Guild and the Alliance of Motion Picture and TV Producers are back in contract talks for the first time since last November. Since then, there’s been some internal turmoil at the Guild. A group of moderates has grabbed a slim majority on the national board.

  They’ve put off plans for a strike authorization vote, replaced SAG’s national executive director and chief negotiator, and retooled its negotiating committee. Jay Fernandez of the Hollywood Reporter says those maneuvers strengthen the hand of the producers alliance – or AMPTP – at the bargaining table.

  Jay Fernandez: “My intuition is that the AMPTP will throw some slight gains their way to sort of close the deal, get it done, nail it down – and to sort of stick it to the hardline faction at SAG that was rattling their sabers for a strike.”

  Contract talks are scheduled to continue through tomorrow. SAG actors have been working in film and primetime television without a contract since July.

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  • February 17, 2009 3:12 PM
  • Categories: Arts, Business/Economy

• Southland restaurant business slow

  Home cooking is back. So is brown-bagging lunch. All this recession-triggered economizing – along with higher costs for ingredients, supplies, and rent – creates a big problem for restaurants. Economist Jack Kyser told KPCC’s “AirTalk” that these businesses are scrambling to respond.

  Jack Kyser: “What they call the white tablecloth restaurants, they are struggling because people have, cutting back on expense accounts. You have what you call the AIG effect – business doesn’t want to be perceived as spending too wildly.

  “Even in the fast food segment, McDonald’s is doing quite well, but a lot of the other fast food chains are struggling. And then there are the independent restaurants, and they are dropping like flies.”

  Kyser suggested that restaurant owners need to practice innovation and let their customers know how much they’re appreciated. More than 120 Southland restaurants are offering discounted three-course menus through the end of the month in a coordinated promotion called dineLA.

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  • February 17, 2009 2:27 PM
  • Categories: Business/Economy

• Southland restaurant owners hold annual discount promotion

  So you’re cooking at home and counting your pennies these days… KPCC’s Cheryl Devall says Southland restaurant owners are extending a promotion to coax you back into their dining rooms.

  Cheryl Devall: Eateries from Malibu to San Pedro pooled their resources and launched the first dineLA for a couple of weeks last August. The coordinated promotion offered special menus and prices designed to entice foodies who wanted to try new tastes and venues.

  Fast-forward to the present, when many of us are less likely to dispose whatever disposable income we have. The restaurant owners behind this year’s second edition of dineLA figure that if two weeks of discounted dining are good, a month of it is better. They’ll continue serving up three-course dinners in three price categories – 26 dollars for deluxe, 34 bucks for premier, and 44 dollars for fine dining – through the end of this month.

  Lunch for less is available too. Prices don’t include drinks and tips. Participants include some of the most celebrated restaurants in the Southland – places that usually charge a lot more. For information and reservations, go online to dineLA.com.

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  • February 16, 2009 3:48 PM
  • Categories: Business/Economy

• Grand Avenue developer has to pay penalties when construction begins

  The developer behind downtown Los Angeles’ Grand Avenue project apparently won’t avoid penalties for not beginning construction on time. The president of Related California, Bill Witte, tells KPCC the city-county board that oversees the project is deferring the penalties.

  Bill Witte: “They have agreed to defer the penalties until the earlier start of construction or the current extension deadline of February 15th, 2011.”

  Related was supposed to begin paying penalties if it didn’t begin construction by yesterday. Witte says that if Related begins construction before February two years from now it will have to pay the accumulated penalties then.

  In return for the deferred penalties Witte says Related will have to pay $100,000 per year for the next two years toward overhead costs for the Grand Avenue oversight committee.

  The credit crunch has made it hard for Related to secure financing for the urban redevelopment project.

  No one from the city-county board overseeing the project was available for comment.

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  • February 16, 2009 1:23 PM
  • Categories: Business/Economy

• Grand Avenue developer penalties deferred

  The developer of the Grand Avenue Project had until yesterday to begin construction or pay penalties of $250,000 a month. Now the president of Related California tells KPCC the city-county board overseeing the downtown L.A. makeover has agreed to defer the penalties until the start of construction – or until the next extension deadline in two years.

  KPCC business analyst Mark Lacter says Related has had trouble lining up financing.

  Mark Lacter: “You know there’s not much the developer can do to magically get that financing. And if it’s forced to shell out that kind of money, we’re talking about Related here, it might just decide it’s not worth the whole thing and pull out. Keep in mind that it could be hard to get the necessary loans for a lot of months down the road.”

  Related California president Bill Witte says that in return for the deferred penalties, the developer will pay $100,000 for the next two years toward overhead of the Grand Avenue committee staff that assists the city-county board in the project.

  There has been no confirmation from anyone on the board. Its members have not responded to efforts to contact them today.

  Witte says Related is moving forward with the county on beginning construction of the civic park – part of the project’s first phase. He says construction should begin on that in the first half of next year.

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  • February 16, 2009 1:11 PM
  • Categories: Business/Economy

• Environmental groups have to wait for state money

  The state’s prolonged budget crisis has held up grant money to environmental organizations. A recent survey by the L.A.-San Gabriel Rivers Watershed Council found that 40 percent of the groups the state funds for water conservation projects have laid off some employees. Nancy Steele is with the council.

  Nancy Steele: “A lot of the nonprofits are doing work that was requested in a way, you could say, by the voters when they passed these clean water clean beaches bonds, as diverse as protecting homes from flood, fires, and erosion, water conservation projects, and saving fish that are going extinct.”

  Steele says that most groups surveyed have stopped paying private contractors for work like water monitoring and coastal restoration. Those projects could start back up when the state gets a budget. But Steele says they’ll cost more, take longer, and yield fewer results.

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  • February 16, 2009 10:03 AM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• AIDS group decries FOX TV rejection of commercial spot promoting condom use

  It’s not often you hear about a business turning down money, especially now. But that’s what a local Fox TV affiliate did when an AIDS advocacy group tried to place a 30-second spot promoting condom use on Sunday’s episode of “The Family Guy.”

  Michael Weinstein with the AIDS Healthcare Foundation says Fox-11 turned away his media buyer because its parent network doesn’t allow condom advertising during prime time.

  Michael Weinstein: “We wanted to point out the most glaring example of hypocrisy. They won’t run a condom ad, but they will have very offensive content that demeans women, and that really sends the wrong messages to young people. The right message is, ‘if you’re going to be sexual, use a condom.’”

  “The Family Guy” is a popular animated cartoon series. The watchdog group Parents Television Council gives it a Red rating for its sexual themes and language.

  LINK: AIDS Healthcare Foundation

  LINK: Fox-11

  LINK: The Family Guy

  LINK: Parents Television Council

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  • February 13, 2009 7:16 PM
  • Categories: Arts, Business/Economy, Health, Society/Culture

• Insurance Commissioner Poizner denounces California budget deal

  Two Republican candidates for governor are denouncing the state budget deal as they seek to burnish their conservative credentials with the GOP faithful. KPCC’s Frank Stoltze reports.

  Frank Stoltze: Even before the governor and legislative leaders presented the deal, leading GOP gubernatorial candidates Steve Poizner and Meg Whitman were flogging it. Poizner told KPCC that raising taxes is a terrible idea.

  Insurance Commissioner Steve Poizner: Our economy is extremely weak right now, and raising taxes on working class folks right now when they’re struggling to make ends meet, worrying about their mortgages and their jobs, is really just going to make matters worse. It’s like taxing misery.

  Stoltze: Whitman also said that raising taxes is a bad idea, even as the state faces a $42 billion budget shortfall, a falling credit rating, and massive cuts in social spending. She said instead that the state should cut its payroll by 10 percent, and double its twice-a-month furloughs for state workers. Poizner joined Whitman in calling for more cuts.

  Poizner: We should roll back spending to two or three years ago, which doesn’t seem hard to conceive. The state survived just fine two or three years ago.

  Stoltze: The budget deal the governor and legislative leaders worked out already calls for $15 billion in spending cuts.

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  • February 13, 2009 6:43 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Judge delays decision on Orange County Sheriff deputy pensions

  A Los Angeles judge has decided to delay making a decision about Orange County Sheriff’s deputy pensions. KPCC’s Susan Valot says the judge today put off making a ruling until later this month.

  Susan Valot: Orange County supervisors last year filed a lawsuit to roll back sheriff’s deputy pensions.

  The supervisors say boosting the pension plan to “three percent at 50” a few years ago and making it retroactive amounted to an illegal gift of state funds. They say the plan encourages deputies to retire earlier, at age 50. The supervisors also say the pension hike is an unfunded liability that digs the county deeper into debt.

  The union for deputies says the pension increase does not violate the state Constitution. It also says a deal’s a deal.

  L.A. County Superior Court Judge Helen Bendix earlier this week indicated she might side with the Association of Orange County Deputy Sheriffs and throw out the lawsuit. But now she’ll mull it over a little more… and rule on or before February 23.

  Local lawmakers up and down California are watching this case. It could set a precedent that could allow them to sue to save money on unfunded pensions.

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  • February 13, 2009 6:31 PM
  • Categories: Business/Economy, Criminal Justice

• Two counties sue Controller to get scheduled payments

  Supervisors from two counties, San Diego and Sacramento, have gone ahead with a lawsuit against the State Controller. KPCC’s Nick Roman says they’re trying to pry loose millions of dollars in scheduled payments from California’s government.

  Nick Roman: Controller John Chiang is holding that money so he has cash to pay the state government’s bills while the governor and lawmakers bicker over the budget.

  San Diego and Sacramento counties, and about two dozen others that could join the lawsuit, say that money is theirs. They’re due hundreds of millions of dollars to pay for services for poor, elderly, and disabled Californians.

  Controller Chiang says he shares the counties’ anger about the money delays. But he also says that as long as the state government is in a budget mess, he’ll pay only the bills he has to by law, like debt service.

  For their part, the counties say their lawsuit isn’t an “attack” on the Controller. They just want the money that’s coming to them.

  A budget deal this weekend could render the counties’ lawsuit meaningless… although their anger with the governor and state lawmakers might linger for a long time.

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  • February 13, 2009 6:14 PM
  • Categories: Business/Economy, Politics/Public Affairs

• People adjust Valentine's plans during economic crisis

  A dozen roses, a box of chocolates, or a night out on the town are specters of Valentine’s Days past for many Southern California families.

  Twenty-eight-year-old Elsis Martinez and her husband are raising two small boys and saving to buy their first home. She says they can’t afford to exchange romantic gifts this year.

  Elsis Martinez: “My 3-year-old changes shoe size practically every month. So, we have to keep up with him – just the monthly bills. Our monthly bills are getting higher and higher. We can’t afford to make any expenses, extra expenses.”

  Martinez is a legal assistant. Her husband is a warehouse supervisor.

  The National Retail Federation’s spending survey found that Americans plan on spending about $100 per person this Valentine’s weekend. That’s about $20 less than people generally spent last year.

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  • February 13, 2009 4:48 PM
  • Categories: Business/Economy

• Retailers lure Valentine's Day shoppers with discounts

  Retailers are luring thrifty shoppers this Valentine’s Day with discounts on flowers, early-bird gift specials, and free online shipping.

  None of that is enough to persuade newlyweds Diana Renteria and her husband to pull out their credit cards and splurge. She says they’ve been trying to save money, so they plan to stay in this year.

  Diana Renteria: “Not so much because of the money, but because we both don’t like waiting a long time and being that Valentine’s this year is a Saturday, there’s gonna be a huge line. So, we just decided to have dinner at home.”

  Renteria is a legal assistant – her husband’s a baggage security officer at Los Angeles International Airport.

  The National Retail Federation’s spending survey found that Americans plan to spend about $15 billion this year on gifts this Valentine’s weekend.

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  • February 13, 2009 3:28 PM
  • Categories: Business/Economy

• Grand Avenue developers ask for more time

  The real estate bust means the grand ideas of revitalizing downtown L.A. are scaling down. KPCC’s Shirley Jahad reports.

  Shirley Jahad: Ground breaking for The Grand Ave project is nearly two years overdue. Now developers are asking for another break on fines and penalties for being late.

  Developers faced hefty fines starting next week if no shovels were in the ground. The related company is asking the county-city panel overseeing the project to wave the quarter of a million dollar a month fine.

  Some observers and economists say the project is sinking in the credit crunch and it could be months before developers get the financing they need to start.

  The Grand Avenue project is just one of a slew of downtown development efforts now on hold. About a third of more than a hundred condo developments are stalled.

  The grand avenue project includes hotels, condos, retail, and restaurants around downtown L.A.’s civic and cultural institutions. It was supposed to be complete this year. Now it will be 2011 – if it happens.

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  • February 13, 2009 3:26 PM
  • Categories: Business/Economy

• Bad economy sends more people to public hospitals instead of clinics

  A survey by the California Association of Public Hospitals finds the economic downturn is sending more people to public hospitals. KPCC’s Frank Stoltze has more.

  Frank Stoltze: The survey of 19 public hospitals throughout the state found the number of patients up four percent in October of 2008, compared to October the year before. It found that public hospitals have also seen a 10 percent increase in the number of uninsured patients, and a 19 percent increase in the number of uninsured patients who visited emergency rooms.

  The president of the California Association of Public Hospitals and Health Systems says that as more people lose their jobs, they also lose their medical insurance or the means to pay for it. The closing of several public and private hospitals in Southern California compounds the problem.

  The survey included County-USC, Olive View, and Harbor UCLA Medical Centers, all in Los Angeles County.

  LINK: California Association of Public Hospitals and Health Systems

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  • February 12, 2009 7:13 PM
  • Categories: Business/Economy, Health

• Specialist describes DOJ review of Ticketmaster/Live Nation merger

  If the Department of Justice approves the merger of Ticketmaster and Live Nation, the new company will combine the world’s top ticket seller with the world’s dominant concert promoter.

  Marc Schildkraut is a mergers specialist at the Howrey law firm in Washington. He spoke with KPCC’s “Patt Morrison” about the Justice Department’s investigation.

  Marc Schildkraut: “The DOJ is going to go out and get everyone’s opinion, it’s going look to everyone in the industry to try and find out whatever they can find out about the deal. They’re going to be, probably will be getting ten of thousands, maybe hundreds of thousands, sometime even millions of documents from the companies.”

  The Department of Justice investigation into the proposed Ticketmaster/Live Nation merger will likely last several months.

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  • February 12, 2009 4:33 PM
  • Categories: Arts, Business/Economy, Politics/Public Affairs

• Congressman Pascrell criticizes Ticketmaster/Live Nation merger

  As the Justice Department begins its investigation into the proposed merger of Ticketmaster and Live Nation, some members of congress are actively lobbying against the deal.

  The merger would combine the world’s top ticket seller with the world’s top concert promoter. One of those loudly opposing the proposal is Democratic Congressman Bill Pascrell of New Jersey.

  Bill Pascrell: “We’re talking about a $21 billion industry, so I understand why they would want to control the whole caboodle. They want to control the actors, they want to control the music, they want to control the management, they want to control the world’s top acts.”

  Pascrell spoke with KPCC’s “Patt Morrison.” The Justice Department’s investigation of the proposed Ticketmaster/Live Nation merger could take several months.

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  • February 12, 2009 4:31 PM
  • Categories: Arts, Business/Economy, Politics/Public Affairs

• Congressman criticizes proposed Ticketmaster/Live Nation merger

  Ticketmaster and Live Nation are hoping the Justice Department approves their merger. But some in Congress are vowing to fight the consolidation of the world’s biggest ticket seller with the world’s biggest concert promoter.

  Congressman Bill Pascrell is a Democrat from New Jersey. He’s been leading the charge against the merger.

  Bill Pascrell: “People just want a little entertainment, they don’t want to be ripped off, they don’t want to be bogged down by the anxiety about how much this is going to cost. They want to know what it’s going to be before they go into the situation. This is illegal scalping, there’s no two ways about it.”

  Pascrell spoke with KPCC’s “Patt Morrison.” If the government approves the merger, Ticketmaster and Live Nation could control 80 percent of the $21 billion ticket sales market.

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  • February 12, 2009 4:29 PM
  • Categories: Arts, Business/Economy, Politics/Public Affairs

• Gregg withdraws nomination to become commerce secretary

  By DAVID ESPO
  AP Special Correspondent

  WASHINGTON (AP) — Republican Sen. Judd Gregg of New Hampshire abruptly withdrew his nomination as commerce secretary Thursday, citing “irresolvable conflicts” with President Barack Obama’s handling of the economic stimulus and 2010 census. “We are functioning from a different set of views on many critical items of policy,” Gregg said in a statement released by his Senate office.

  Gregg, 61, is a former New Hampshire governor who previously served in the House. He has been in the Senate since 1993 and currently serves as the top Republican on the Senate Budget Committee, where he is known as a crusader against big spending.

  He was Obama’s second choice to fill the Commerce portfolio.

  New Mexico Gov. Bill Richardson withdrew several weeks ago in the wake of a grand jury investigation into alleged wrongdoing involving state contracts. He has not been implicated personally.

  The withdrawal appeared to take the White House by surprise, with members of the president’s media operation learning of Gregg’s decision from reporters. An administration official said Gregg dropped out without warning for a position that he had expressed interest in just a few weeks ago.

  In his statement, Gregg thanked Obama for the nomination, and said, “I especially admire his willingness to reach across the aisle.”

  In citing the stimulus and census, he said, “Prior to accepting this post, we had discussed these and other potential differences, but unfortunately we did not adequately focus on these concerns. We are functioning from a different set of views on many critical items of policy.”

  The unexpected withdrawal marked the latest setback for Obama in his attempt to build a Cabinet.

  Treasury Secretary Tim Geithner was confirmed despite revelations that he had not paid some of his taxes on time, and former Senate Democratic Leader Tom Daschle withdrew as nominee as health and human services secretary in a tax controversy.

  In his statement, Gregg said his withdrawal had nothing to do with the vetting into his past that Cabinet officials routinely undergo.

  Gregg’s reference to the stimulus underscored the partisan divide over the centerpiece of Obama’s economic recovery plan. Conservatives in both houses have been relentless critics of the plan, arguing it is filled with wasteful spending and won’t create enough jobs. Gregg has refrained from voting on the bill - and on all other matters - while his nomination was pending.

  The Commerce Department has jurisdiction over the Census Bureau, and the administration recently took steps to assert greater control. Republicans have harshly criticized the decision, saying it was an attempt to politicize the once-in-a-decade event.

  The outcome of the census has deep political implications, since congressional districts are drawn based on population. Many federal funds are distributed on the basis of population, as well.

  Both of those factors mean there is a premium on counting as many residents as possible. Historically, the groups believed to be most undercounted are inner-city minorities, who tend to vote Democratic.

  The Congressional Black Caucus and a group representing Latino elected officials had raised questions about Gregg, noting that as chairman of the Senate panel overseeing the Census Bureau budget he frequently sought to cut funds that they believe led to an undercount of minorities.

  To allay concerns over Gregg, the White House initially indicated that it might take greater control over the Census Bureau. But amid GOP criticism it has since clarified that the White House will “work closely with the census director,” and that the Census Bureau would not be removed from the Commerce Department.

  Gregg’s announcement also undid a carefully constructed chain of events.

  The New Hampshire senator had agreed to join the Cabinet only if his departure from the Senate did not allow Democrats to take control of his seat.

  New Hampshire Gov. John Lynch, in turn, pledged to appointed Bonnie Newman, a former interim president of the University of New Hampshire.

  She, in turn, had agreed not to run for a full term in 2010, creating an open seat for Democrats to try and claim.

  In a statement, Senate Republican leader Mitch McConnell of Kentucky said Gregg “made a principled decision to return and we’re glad to have him. He is among the smartest, most effective legislators to serve in the Senate - Democrat or Republican - and a key adviser to me and to the Republican Conference. It’s great to have him back.”

  Lynch, who spoke to Gregg several hours before the announcement, said he respected Gregg’s decision to withdraw and remain in the Senate. He thanked Newman for her willingness to serve.

  A day after Gregg’s nomination was announced, The Associated Press reported that a former staffer was under criminal investigation for allegedly taking baseball and hockey tickets from a lobbyist in exchange for legislative favors while working for Gregg.

  The former staffer, Kevin Koonce, has been identified in court papers only as “Staffer F” in the sprawling corruption probe stemming from disgraced lobbyist Jack Abramoff.

  Gregg said at the time that he had been told he was neither a subject nor target of the investigation, and would cooperate fully.

  Associated Press Writers Liz Sidoti in Washington and Holly Ramer in Concord, N.H., contributed to this report.

  (Copyright 2009 The Associated Press. All rights reserved.)

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  • February 12, 2009 2:10 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Hollywood pet store shifts from purebred to mixed breed dogs

  A Hollywood pet store has shifted from selling high-end purebred dogs to peddling the same mixed-breed pups you’d find at shelters.

  A growing awareness about the existence of breeders known as puppy mills inspired the new business model. President Barack Obama’s self-deprecating remarks about his mixed heritage have also raised the profile of mixed-breed dogs.

  During a news conference shortly after he won the presidency, President Obama described the challenge of adopting a puppy from the shelter, because his daughter Malia is allergic to dogs.

  Barack Obama: “A lot of shelter dogs are mutts, like me. So, whether we’re gonna be able to balance those two things, I think, is a pressing issue on the Obama household.”

  Clark DuVal owns the OrangeBone puppy store on Melrose Avenue. He says his clients think the mutts in his windows are cool, and they appreciate his decision not to deal with the puppy mills.

  Clark DuVal: “Very, very aware, absolutely in this city about what’s going on. Acutely aware and huge supporters of President Obama. This is definitely Obama territory around here.”

  Customers realize cost savings, too – purebred dogs can go for thousands of dollars a pup, while the rescued shelter animals DuVal sells cost 300 or 400 dollars. All in keeping with the new era of cheap chic.

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  • February 12, 2009 12:58 PM
  • Categories: Business/Economy

• LA City Attorney reaches settlement deal with Health Net

  The Los Angeles City Attorney has reached a settlement with Health Net over accusations that the insurance company wrongfully terminated the policies of people who’d filed expensive medical claims. KPCC’s Frank Stoltze has more.

  Frank Stoltze: State regulators already have reached settlements with Los Angeles-based Health Net. Jeff Isaacs of the city attorney’s office argues that L.A.’s settlement is better, starting with its requirement that Health Net pay people whose policies it terminated.

  Jeff Isaacs: Six-point-three million that will be distributed to approximately 800 or so rescission victims. And it will be distributed automatically so they don’t have to do anything. And the average amount of the distribution will be close to $8,000 per victim.

  Stoltze: The state settlements include no such provision. Isaacs says the city’s deal also makes it easier to obtain reimbursement for medical costs incurred after people lost their coverage, although it caps the total amount at $3 million. Health Net also has agreed to pay $2 million in civil penalties.

  The state insurance commissioner also has announced a settlement with Anthem Blue Cross that includes reinstating the policies of 2300 people.

  In recent years Los Angeles, two state regulators, and policy holders have sued various health insurance companies over their alleged practice of dumping people who make expensive claims.

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  • February 11, 2009 6:18 PM
  • Categories: Business/Economy, Criminal Justice, Health, Politics/Public Affairs

• San Bernardino County latest to sue state over deferred payments

  The number of California counties suing the state government over deferred payments is growing. San Bernardino County joined the fray yesterday. KPCC’s Steven Cuevas says the county is demanding millions from Sacramento for social services.

  Steven Cuevas: California Controller John Chiang says payments could be deferred at least a month. That gives the state government some fiscal wiggle room as it carves out what could be the final details of a long-delayed budget.

  Not having that money means around 90,000 welfare recipients in San Bernardino County will go without. The county will only cover the welfare through March. It’s already facing worker furloughs and massive program cuts. Chief financial officer Mark Uffer.

  Mark Uffer: We can get through July 1st of 2010, assuming there isn’t some catastrophic incident at the state or the federal level, or if the economy doesn’t tank further.

  Cuevas: Uffer says income from property taxes and sales taxes could plunge another 12 percent over the next year. It’s already off around 20 percent. Uffer told county supervisors the budget mess could get a lot messier.

  Uffer: There’s a huge cliff there, and we’re headed toward it. We work every day to try and fix that. But there’s no magic. We’re running out of magic. At that point, we’ll probably be in a triage mentality. And if things don’t turn around, the cliff is July 2010 (long pause)… got really quiet all of a sudden.
  Supervisor Ovitt: I was gonna say, on that light note, we’re going to open it up to public testimony.

  Cuevas: San Bernardino and Riverside counties will join several other counties in Sacramento for a noon rally to pressure lawmakers to end the budget impasse. The legislature might vote on a proposed budget before the week is over.

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  • February 11, 2009 5:11 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Blue Cross agrees to reinstate health insurance policies, and pay reimbursement and fine

  The state’s largest for-profit health provider has agreed to reinstate medical insurance policies for 2300 people in California. State regulators had accused Anthem Blue Cross of wrongfully terminating their policies. KPCC’s Frank Stoltze reports.

  Frank Stoltze: State Insurance Commissioner Steve Poizner said Anthem Blue Cross has agreed to reinstate policies, and to reimburse any medical costs people incurred after the insurer terminated them, at an estimated cost of $14 million.

  Commissioner Steve Poizner: This is a very major important settlement here. I pushed these companies extremely hard – lots of arm twisting to get them to really help these 2300 people who are really in a desperate situation.

  Stoltze: Anthem Blue Cross will also pay a $1 million fine to the state.

  Jerry Flannigan of Consumer Watchdog called the fine an insult to Californians. He told the Los Angeles Times that it pales in comparison to what the company probably saved by cancelling the policies of people facing illnesses.

  Poizner said that in the last five years, Anthem used innocent mistakes on applications to claim people had failed to disclose pre-existing health problems… and cancel their policies. The company’s agreed to simplify applications, and to refine medical pre-screening. That could result in more rejected applications.

  Regulators have reached similar agreements with Blue Shield and Health Net, and they’re reviewing market practices by Kaiser and Aetna.

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  • February 11, 2009 4:51 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• Senate President Pro-Tem says budget deal may be near

  A compromise state budget deal is apparently near completion in Sacramento. But top lawmakers and the governor are not ready to call it a deal… yet. Senate President Pro-Tem Darrell Steinberg told reporters in Sacramento that negotiators are ironing out the loose ends of a “common framework.” Steinberg says lawmakers and the governor are aware the public wants quick, responsible action to solve the state’s fiscal crisis.

  Senator Darrell Steinberg: “We must avert the stoppage of 142 CalTrans transportation projects, and the jobs these projects create. That’s something that’s going to occur this week. We must avert mass layoffs. We must avert IOUs. We must avert the continuing downward rating of our credit. And most importantly, we must end the fear and anxiety that Californians feel today.”

  Steinberg says budget cuts might be slightly less painful, depending on how much California benefits from a federal aid package making its way through Congress. But he says budget negotiators are not relying on a federal bailout to fix the state’s fiscal problems.

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  • February 11, 2009 4:46 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LAUSD reaches three year deal with unions on health benefits

  After six months of negotiations, eight L.A. Unified labor unions that represent more than 100,000 active and retired employees announced today a significant three-year agreement on health and welfare benefits. United Teachers Los Angeles president AJ Duffy spoke with reporters about the deal.

  AJ Duffy: “This is a good agreement. This will allow the current level of benefits to be continued for active employees, and will allow the district to maintain it’s time-honored agreements with retirees who’ve given a lifetime of service.”

  The deal guarantees that for the rest of this year, active and retired L.A. Unified employees will keep their current benefits and won’t have to pay health care premiums.

  In the following two years, a school district committee that consists almost entirely of union members will have more power to negotiate benefits with providers. It’ll cost L.A. Unified more than $900 million to provide these benefits this year.

  The teachers union is negotiating separately with the school district on salary increases. UTLA leaders are moving forward with a strike authorization vote next month.

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  • February 11, 2009 4:43 PM
  • Categories: Business/Economy, Education, Health

• House Financial Services Committee grills bank executives

  Before the federal government distributes the second half of the money in what it used to call the Troubled Asset Relief Program, lawmakers in Washington want to know what happened to the first half.

  The U.S. House Financial Services Committee grilled the chiefs of major banks over the way their institutions spent that dough. Southland Congressman Brad Sherman was on the panel. He told KPCC’s “Patt Morrison” that he got disappointing answers to his questions.

  Brad Sherman: “Transparency is not really the big problem here, because these guys have the intestinal fortitude to take the money and tell you they took the money, and keep the money, and tell you they are going to keep the money.

  “This $78 billion, everybody agrees it’s the right figure. That’s how much we were screwed. Are they going to give back the money? No. The huge bonuses were paid. Is anybody gonna get back the money? No.”

  Sherman, a San Fernando Valley Democrat asked during the House hearing why bank executives spent taxpayer money on employee bonuses and shareholder dividends.

  Most members of Congress who’d voted on the bailout said they believed it would allow the banks to free up credit for consumers. Treasurer Timothy Geithner calls the second phase of the program the Financial Stability Plan.

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  • February 11, 2009 3:34 PM
  • Categories: Business/Economy

• Congressman Sherman dissatisfied with bank executives

  During today’s hearing of the U.S. House Financial Services Committee, Representative Brad Sherman took some of the nation’s top bankers to task for paying shareholder dividends and offering employee bonuses with taxpayer money from the Troubled Asset Relief Program. Sherman told KPCC’s “Patt Morrison” that none of the execs’ responses satisfied him.

  Brad Sherman: “The biggest concern is the report issued by the Congressional Oversight panel that showed that we got screwed out $78 billion. And I asked these CEOs, ‘Okay, you’ve got our money, you’ve shortchanged us, will you give us the shortfall?’ And eight out of eight said no.”

  Sherman, a Democrat, represents parts of the San Fernando Valley in Congress. The banking committee queried the chiefs of Wells Fargo, Bank of America, JP Morgan Chase, and five other institutions about the way they spent the first half of the federal bank bailout.

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  • February 11, 2009 3:00 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Governor and legislature reach tentative deal on deficit

  The Sacramento Bee is reporting that the governor and the California legislature have reached a tentative deal on the state’s $42 billion budget deficit.

  Neither side is confirming the details. But the newspaper says this version would increase the state sales tax by 1 percent, to 9-and-three-quarters percent. That’s prompted some political observers to wonder whether consumers will buy more items online – where many sites don’t charge sales taxes.

  Sacramento Bee reporter Dan Walters told KPCC’s “AirTalk” that avoidance strategy may not work for some purchases.

  Dan Walters: “You aren’t going to have a car shipped in for example. You can’t avoid the sales tax on a car. It will give us basically the highest sales tax rate in the country.

  “It’ll have some effect on retail sales – whether it’ll be a big effect or a small effect, I don’t think we will ever know how big of an effect, because retail sales go up and down with the economy. But it does raise a lot of money. A 1 cent increase in sales tax raises about five-and-a-half billion dollars a year.”

  The bill also would create a temporary, one-quarter-of-one-percent surcharge on personal income taxes, and would double the vehicle license fee. Lawmakers are still ironing out the details. They’re expected to deliver the bill to the floor on Friday.

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  • February 11, 2009 2:43 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Southern California Edison signs world's largest solar power deal

  Southern California Edison officials say they’ve signed what they believe is the world’s largest agreement for solar power. Edison is pairing up with BrightSource Energy on seven solar power projects. Utility spokesman Stuart Hemphill says the projects will produce enough energy to power more than 800,000 homes.

  Stuart Hemphill: “These are out in the Mojave desert, fairly close to the Nevada border. And what you’d find is six of the projects will be located east of Barstow area.”

  The projects are expected go online in the next half-dozen years. As of last year, renewable sources accounted for 16 percent of Edison’s energy portfolio. Edison believes that proportion will rise to 20 percent after it’s phased in the new projects. The deal still needs the approval of the California Public Utilities Commission.

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  • February 11, 2009 2:21 PM
  • Categories: Business/Economy, Environment

• San Bernardino County sues state over deferred payments

  San Bernardino County has joined other California counties that are suing the state over withheld social service money. The 100-day state budget crisis is to blame for the holdup.

  But word out of Sacramento is that lawmakers could vote on a proposed budget compromise as early as Friday. San Bernardino County spokesman David Wert says that’s not stopping a coalition of counties from pressuring lawmakers to act with a public meeting tomorrow in the state capitol.

  David Wert: “If the state can solve its problems on Friday, that’s great for the counties, but so far the state’s been unable to do that. The type of announcement that was made this morning has been made many times over the last year.

  “And until something is voted on, San Bernardino County, Riverside County and the other counties need to be up there where state officials can hear the message.”

  If lawmakers don’t reach a budget agreement, San Bernardino County could lose out on a month or more of funding for 90,000 welfare recipients. That’s on top of a $140 million budget deficit the county is already wrestling with.

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  • February 11, 2009 2:14 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Southern California Edison signs deal to increase solar energy

  Southern California Edison has signed a deal to increase the amount of power it generates from solar energy. Edison announced the agreement with BrightSource Energy this morning.

  Stuart Hemphill is Edison’s vice president for renewable and alternative power. He says the deal may represent the world’s largest commitment to solar energy in a single set of agreements.

  Stuart Hemphill: “I think we’re going to be changing the way electricity is produced and consumed in the state and it’s an exciting place to be. I think we’re going to have a very different electrical system 10 years from now than what we have today.”

  Under the deal, Edison would pair with BrightSource on seven projects. All would be located in the Mojave Desert. They’d go online in the next four to seven years.

  The California Public Utilities Commission still needs to approve the agreement.

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  • February 11, 2009 1:48 PM
  • Categories: Business/Economy, Environment

• LA County Supervisors approve hiring freeze

  The Los Angeles County Board of Supervisors continued bracing for the fallout from the state’s budget crisis. It approved a hiring freeze for all county jobs. KPCC’s Frank Stoltze has more.

  Frank Stoltze: The hiring freeze includes all county departments. It excludes jobs that Chief Executive Officer Bill Fujioka decides are critical to public health and safety.

  The supervisors acted as state Controller John Chiang prepares to withhold more than $100 million in payments to the county because of California’s budget crisis. L.A. County supervisors have voted to join a lawsuit challenging the controller’s right to do that.

  In addition, Governor Schwarzenegger has proposed delaying more than a billion dollars in payments to the county through August. He’s promised that the state will pay it back. A spokesman for Supervisor Zev Yaroslavsky says that, given the state’s $42 billion budget shortfall and no end in sight to the recession, county officials “would be fools” to expect to see the money soon… if at all.

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  • February 10, 2009 6:46 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Orange County joins lawsuit against state over budget deferrals

  Orange County is joining several other counties in a lawsuit against the state. KPCC’s Susan Valot says they want the state government to pay what it owes the counties.

  Susan Valot: Orange County’s budget director says if the state goes through with a plan to defer some payments for up to seven months, it would leave the county with a more than $100 million hole in its budget by the end of June.

  So the Orange County supervisors have agreed to get in on a lawsuit by several counties against the state. Supervisor Chris Norby says they’re basically suing the state for money it doesn’t have.

  Supervisor Chris Norby: We did it anyway, because we think that while they may not have it, we’ll at least be first in line once they get it. And it will send a shot to the legislature that you’ve got to resolve this one way or the other.

  Valot: The counties haven’t field the lawsuit yet. San Diego, Sacramento, and San Francisco counties are already on board. In the meantime, Riverside and San Bernardino county supervisors say they’ll join other county supervisors Thursday in Sacramento, to put pressure on state lawmakers to come up with a budget and keep the money flowing.

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  • February 10, 2009 5:33 PM
  • Categories: Business/Economy, Criminal Justice, Politics/Public Affairs

• USC buys two of its affiliated hospitals from Tenet Healthcare

  In addition to the hospital it runs with Los Angeles County, the University of Southern California is affiliated with a few private hospitals. KPCC’s Cheryl Devall says USC plans to buy two of those facilities.

  Cheryl Devall: All the University of Southern California hospitals help train the next generation of doctors. Hospital management company Tenet Healthcare operated two of the smaller ones – USC University Hospital and the USC/Norris Comprehensive Cancer Center. Both accept only private or physician-referred patients.

  A couple of years ago, the university went to court to end its relationship with Tenet. It claimed the company wasn’t investing enough in the facilities. Tenet countersued. USC’s acquisition of the two hospitals settles the legal dispute. University officials say the $275 million deal will foster more coordination and control of USC’s medical teaching, research, and practice.

  That could, ultimately, affect operations at the biggest of the USC hospitals, the one it runs with L.A. County. Fifty-thousand patients check into County-USC Medical Center each year. Another three-quarters of a million get outpatient treatment there.

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  • February 10, 2009 3:20 PM
  • Categories: Business/Economy, Health

• Car wash manager used machete to intimidate workers

  Los Angeles City Attorney Rocky Delgadillo has filed a criminal complaint against the owners of four car washes.

  Delgadillo says Benny Pirian and his brother Nissan mistreated workers at their four car washes in Hollywood, Los Feliz, and Northridge.

  Delgadillo told KPCC his office and the federal Department of Labor have been investigating the car washes for four months, interviewing workers who were willing to talk.

  Rocky Delgadillo: “One of the managers, Manuel Reyes, actually brandished a machete to intimidate these individuals to not cooperate with us in our investigation. If they did cooperate, the brave souls who did, their hours were reduced or their job was eliminated.”

  Delgadillo alleges some workers earned as little as $35 for eight hours of work – and that some worked just for tips. Delgadillo also says the workers received no additional pay for working overtime and that managers discouraged the workers even from taking water breaks.

  Benny and Nissan Pirian have denied similar allegations in the past.

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  • February 10, 2009 2:52 PM
  • Categories: Business/Economy, Criminal Justice

• City attorney files complaint against car wash owners

  Los Angeles City Attorney Rocky Delgadillo has filed a criminal complaint against the owners of four L.A.-area car washes. Delgadillo told KPCC that brothers Benny and Nissan Pirian pay dozens of their employees less than minimum wage and subject them to harmful working conditions.

  Rocky Delgadillo: “There were individuals who received acid burns, lacerations, puncture wounds, and none of those individuals were aided in any way, shape, or form by their employer to get medical attention. They were left to their own devices.”

  The complaint seeks $450,000 in wages Delgadillo believes the workers should have earned.

  The Pirians have denied allegations of low wages in the past, and they’ve accused the workers of falling under the influence of labor union organizers.

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  • February 10, 2009 11:37 AM
  • Categories: Business/Economy, Criminal Justice

• Ticketmaster and Live Nation announce merger

  The world’s biggest ticketing service and the world’s biggest concert promoter are joining forces. Ticketmaster and concert promoter Live Nation announced this morning that they’ll merge into a new company called Live Nation Entertainment.

  Business analyst Mark Lacter told KPCC’s Steve Julian that the merger will likely require a long review process, because the new company would take on a dominant role in the concert business.

  Mark Lacter: “The Obama administration will clearly take a close look at this merger. Also, don’t be surprised if smaller competitors try challenging the deal in court. Whatever happens, Steve, it’s going to be a long time before this is resolved one way or another.”

  Ticketmaster’s chairman says the deal will give audiences more live entertainment options.

  Musician Bruce Springsteen is among the deal’s critics. He posted a statement on his Web site claiming the new company could exercise a near-monopoly on music ticket sales.

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  • February 10, 2009 11:34 AM
  • Categories: Arts, Business/Economy

• Los Angeles County considers hiring freeze

  The Los Angeles Board of Supervisors is considering imposing an immediate hiring freeze for county government jobs. KPCC’s Frank Stoltze reports it’s the latest fallout from the state’s fiscal crisis.

  Frank Stoltze: In a memo to supervisors, Chief Executive Officer Bill Fujioka says L.A. County stands to lose $105 million in deferred state funding this month. That total could balloon to nearly one-and-a-half billion dollars by August. It’s money the county expects to get once the state regains its fiscal footing.

  But Fujioka says the delay could cause a serious cash flow problem. That’s why he wants an immediate hiring freeze for all but critical health and safety jobs. Fujioka also wants to freeze all non-essential purchases of services and supplies. That’ll place more strain on the local economy.

  California Controller John Chiang says the state must delay some payments to counties to preserve cash for education, debt service obligations, and other payments the law requires. He says delays begin Friday, and will continue until the governor and state legislature come up with adequate solutions to the state’s cash shortfall.

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  • February 9, 2009 5:50 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Deal announced on stimulus; weekend vote likely

  AP Special Correspondent

  WASHINGTON (AP) - With job losses soaring nationwide, Senate Democrats reached agreement with a small group of Republicans Friday night on an economic stimulus measure at the heart of President Barack Obama’s plan for combatting the worst recession in decades.

  “The American people want us to work together. They don’t want to see us dividing along partisan lines on the most serious crisis confronting our country,” said Sen. Susan Collins of Maine, one of three Republican moderates who broke ranks and pledged their votes for the bill.

  Democratic leaders expressed confidence that the concessions they had made to Republicans and moderate Democrats to trim the measure had cleared the way for its passage. No final vote was expected before Saturday or Sunday.

  Officials put the cost of the bill at $827 billion, including Obama’s signature tax cut of up to $1,000 for working couples, even if they earn too little to pay income taxes. Also included are breaks for homebuyers and people buying new cars. Much of the new spending would be for victims of the recession, in the form of unemployment compensation, health care and food stamps.

  Republican critics complained that whatever the cost, billions were ticketed for programs that would not create jobs.

  In a key reduction from the bill that reached the Senate floor earlier in the week, $40 billion would be cut from a “fiscal stabilization fund” for state governments’ education costs, though $14 billion to boost the maximum for college Pell Grants by $400 to $5,250 would be preserved, as would aid to local school districts for the No Child Left Behind law and special education.

  A plan to help the unemployed purchase health insurance would be reduced to a 50 percent subsidy instead of two-thirds.

  The agreement capped a tense day of backroom negotiations in which Senate Majority Leader Harry Reid, joined by White House chief of staff Rahm Emanuel, sought to attract the support of enough Republicans to give the measure the needed 60-vote majority. Democrats hold a 58-41 majority in the Senate, including two independents.

  Uncertain of the outcome of the talks, Democrats called Sen. Edward M. Kennedy back to Washington in case his vote was needed. The Massachusetts senator, battling brain cancer, has been in Florida in recent days and has not been in the Capitol since suffering a seizure on Inauguration Day more than two weeks ago.

  In addition to Collins, Republican Sens. Arlen Specter of Pennsylvania and Olympia Snowe of Maine pledged to vote for the legislation.

  Whatever the price tag, the compromise marked a victory for the new president, who has veered between calls for bipartisanship and increasingly strong criticism of Republicans in recent days. And it indicated that Democratic leaders remain on track to deliver a bill to the White House by the end of next week.

  Late Friday night, White House press secretary Robert Gibbs said, “On the day when we learned 3.6 million people have lost their jobs since this recession began, we are pleased the process is moving forward and we are closer to getting Americans a plan to create millions of jobs and get people back to work.”

  Obama said earlier in the day that further delay would be “inexcusable and irresponsible” given Friday’s worst monthly unemployment report in a generation - 598,000 jobs lost in January and the national unemployment rate rising to 7.6 percent. And late Friday, federal regulators announced the closures of three banks, First Bank Financial Services in Georgia and Alliance Bank and County Bank in California, raising to nine the number of bank failures this year.

  “The world is waiting to see what we’re going to do in the next 24 hours,” said Reid who has spent much of the week trying to balance demands among moderates in both parties against pressure for a larger bill from liberals in his own rank and file.

  By midday, the majority leader had spoken once with Obama by phone and five times with Emanuel. He met with Collins and Specter as well as Sen. Ben Nelson, a conservative Nebraska Democrat who had long advocated cuts in the House-passed bill.

  Later, Nelson declared on the Senate floor, “We trimmed the fat, fried the bacon and milked the sacred cows.” He said the compromise included $350 billion in tax cuts that would reach 95 percent of all Americans.

  One Republican-proposed document that circulated earlier called for cuts of $60 billion from money Democrats want to send to the states. That money is targeted to avoid budget cuts for schools as well as law enforcement and other programs.

  Talk of cuts in proposed education funds triggered a counterattack from advocates of school spending as well as unhappiness among Democrats.

  One, Sen. Carl Levin of Michigan, told reporters he and others hoped that some of the funds on the chopping block would be restored next week when negotiations open on a House-Senate compromise.

  At its core, the legislation is designed to ease the worst economic recession in generations, and combines hundreds of billions of dollars in new spending with tax cuts. Much of the money would go for victims of the recession in the form of food stamps, unemployment compensation and health care. There are funds, as well, for construction of highways and bridges.

  But the administration also decided to use the bill to make a down payment on key domestic initiatives, including creation of a new health technology industry and so-called green jobs designed to make the country less dependent on imported oil.

  And Democrats in Congress decided to add additional huge sums for the states struggling with the recession, as well as billions more for favored programs such as parks, the repair of monuments in federal cemeteries, health and science research and more.

  With Obama enjoying post-inauguration support in the polls and the economy shrinking, Democratic leaders in Congress have confidently predicted they would have a bill to the president’s desk by mid-February.

  But Republicans, freed of the need to defend former President George W. Bush’s policies, have pivoted quickly to criticize the bill for its size and what they consider wasteful spending.

  The entire Republican rank and file voted against the measure in the House, effectively prodding senators to take up the same cause.

  In the intervening days, Republicans have appeared to catch the administration and its allies off-guard, holding up relatively small items for ridicule and routinely seizing on comments from Democrats critical of the House-passed bill.

  At the same time, they have stressed a desire to help the economy but have said they prefer tax cuts and spending that would have a more immediate impact on job creation.

  Privately, Democrats in Congress have been critical of Obama and his aides for failing to counter the Republicans more effectively. In recent days, the president has sharpened his rhetoric against unnamed critics of the bill whom he accused of trying to re-establish the “failed policies” of the past eight years.

  Despite the struggle, some Republicans seemed to sense the White House would ultimately prevail, and sought political mileage.

  Obama “could have had a very, very impressive victory early on,” said Sen. John Cornyn of Texas, who heads the Senate Republican campaign committee. “But this is not turning out to be an impressive victory. it is turning out to be a little bit of a black eye.”

  (Associated Press writers Andrew Taylor, Erica Werner, Julie Hirschfeld Davis, Liz Sidoti and Stephen Ohlemacher contributed to this report.)

  (Copyright 2009 by The Associated Press. All Rights Reserved.)

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  • February 6, 2009 8:10 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Christian bikers stage economic crisis prayer crusade in Inland Empire

  Thunderstorms won’t be the only thing rumbling through the Inland Empire this weekend. More than a hundred Christian motorcycle riders will roar across local freeways in what they call a “praying procession” for the region’s battered economy. KPCC’s Steven Cuevas has details.

  Steven Cuevas: It’s the second time a coalition of Inland churches has hosted the “Ride and Pray” event. Bikers will fan out across the region from Riverside to Yucaipa delivering prayer and ministry to people in financial and emotional distress. Riders will wear t-shirts emblazoned with a message the churches have already been sending through a yard sign and billboard campaign.

  Debbie Hornsby: It says, “Cast your cares on him, for he cares for you. Give your life to Jesus.”

  Cuevas: Pastor Debbie Hornsby is one of the ride’s organizers.

  Hornsby: I think our heart is just, that if we can get the word out there that Inland people are hurting, they’ll begin to turn to churches and begin to say to their neighbor, ‘Who has that yard sign? Y’know, I’m really struggling. What’s that sign all about?” And then that opens the door for people to love them and share the gospel with them.

  Cuevas: Sunday afternoon, “Ride and Pray” participants will steer their choppers into the Stater Bros. parking lot in Fontana for the 1:00 start. The lot is just off the 15 Freeway at Summit Avenue. There’ll be six more rides through the summer.

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  • February 6, 2009 6:35 PM
  • Categories: Business/Economy, Religion/Spirituality, Transportation

• DMV customers unprepared for office being closed due to furloughs

  The twice-monthly state employee furlough kicked in today. Not everybody had heard the news that, because of California’s cash crunch, most state offices are closed on the first and third Fridays of every month. Early this morning, KPCC’s Brian Watt visited the Department of Motor Vehicles office in Culver City. So did a few customers.

  Brian Watt: A steady trickle of motorists pulled into the empty parking lot outside the dark DMV office. Some of what they said before they drove off is not suitable for broadcast.

  Sergio Cornejo: It’s terrible. It ruins my weekend. I was hoping to take out my car…

  Watt: Sergio Cornejo of Culver City works as an audio video technician.

  Cornejo: I had a four-wheel-drive Blazer that I actually wanted to actually take out this weekend and play with it, but because of this, we can’t.

  Watt: But Cornejo cut the state some slack for trying to save money.

  West L.A. artist Semere Ab had brought in a beat-up car for recycling. He took the Friday closing in stride, and said the state could be establishing a healthy trend.

  Semere Ab: I think it should be permanent; not because of economic reasons, but I think people should work only four days a week .

  Watt: That would allow more time for family and creativity, he said. But most state workers who have no choice but to take the day off would probably prefer to get paid.

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  • February 6, 2009 6:25 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• State insurance commissioner announces AAA So Cal rate cut

  The state insurance commissioner has announced a rate reduction for drivers covered by AAA of Southern California. Commissioner Steve Poizner says the rate cut of more than 5 percent will save the average policyholder about $100 a year.

  Steve Poizner: “This is great news because it will infuse $101 million into the Southern California economy. Of course, that couldn’t come at a better time given the tough economic conditions.”

  Consumer groups are not cheering. Doug Heller is with Consumer Watchdog. It wanted the commissioner to cut AAA’s premiums by 13 percent – more than double what he approved.

  Doug Heller: “We’re still being overcharged. Commissioner Poizner did not go to the mat for consumers on this rate cut and he always should be looking out for consumers, especially at a time like this, in these tough financial times.”

  The consumer group says it will formally ask the state Department of Insurance to reconsider the size of the rate cut. An executive with AAA applauded the commissioner’s decision.

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  • February 6, 2009 5:24 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Union workers in support of Employee Free Choice Act march in LA

  Hundreds of union workers marched in Los Angeles yesterday in support of the federal Employee Free Choice Act. The bill would allow people in a given workplace to organize by signing cards that authorize union representation.

  Greg Good, a spokesman for the pro-labor L.A. Alliance for a New Economy, explained why his organization supports the bill.

  Greg Good: “This, a landmark piece of legislation that’s going to help insure that, that, essentially more workers have the opportunity for good, middle-class jobs in this country, and the way it’s going to do that is, is to really afford them the choice to join the union through majority sign-up.”

  Many business leaders regard that alternative to secret-ballot union elections as an insidious end-run. Brian Worth, an independent electrical contractor who heads the Coalition for a Democratic Workplace, wants Congress to reject the bill.

  Brian Worth: “This is a bad deal for workers because it exposes them, as part of a card-check campaign, to intimidation and coercion. I don’t think it takes any great stretch of the imagination, I mean, to know what it would be like to be the last person that the union needed to get a card signed.”

  Brian Worth and Greg Good spoke with KPCC’s “AirTalk.” The Employee Free Choice Act is likely to pass in the U.S. House, but opposition may stall it in the Senate.

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  • February 6, 2009 4:06 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Bank of America stock rebounds after 25 year low

  Bank of America stock rebounded today after it fell to a 25 year low during early trading yesterday. The bank has been suffering after it purchased troubled investment bank Merrill Lynch and mortgage lender Countrywide last year.

  Jim Wilcox teaches about banks at UC Berkeley’s Haas School of Business. He spoke with KPCC’s Larry Mantle about Bank of America’s problems.

  Jim Wilcox: “I always regarded it as something of a public service on the part of the B of A shareholders that they were actually willing to pay as much as they did either for Merrill Lynch or for Countrywide.

  “I never quite understood why they thought that was such an attractive buy at that price, and it’s turned out now that they’ve actually bought themselves a lot of trouble.”

  Some financial observers have worried that the federal government may take over Bank of America. That fear has caused the bank’s stock to plunge this year. But in a televised interview today, the bank’s CEO says that he’s talked with members of Congress and regulators, and that nationalization of the bank was “not even a remote possibility.”

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  • February 6, 2009 3:34 PM
  • Categories: Business/Economy

• State parks workers won't be taking Fridays off

  Close to 300,000 state employees are taking a mandatory, unpaid day off tomorrow. Governor Schwarzenegger ordered the furlough because California’s running out of money. Among the few state workers who will keep working on Fridays are staffing the state parks, the governor’s spokeswoman Lisa Page told KPCC’s “Patt Morrison.”

  Lisa Page: “Parks is actually included in the 10 percent of the employees that do have exception to this first and third Friday. They’ll be able to take their furloughs at another time so that our parks can remain open.”

  Fridays are a typically busy day for state parks. The governor estimates that two unpaid days off a month – the equivalent of a 10 percent pay cut for California public employees – will save the state about one-and-a-half billion dollars through June of next year.

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  • February 5, 2009 5:19 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Employee Free Choice Act supporters march from downtown LA to Westwood

  Hundreds of union workers are marching from downtown Los Angeles to Westwood in support of the Employee Free Choice Act. The proposed federal legislation would make it easier for workers to organize.

  Forty-one-year-old Sal Zamora said he’s participating because after he spent 16 years in prison, the Iron Workers Union helped him become a contributing member of society.

  Sal Zamora: “And a lot of my brothers in the union have been able to start a new life. Our business agents will do anything to help someone that wants a better life.”

  Workers from about 40 different unions are participating in the march.

  Organizers say California U.S. Senator Barbara Boxer supports their cause – but they’re not so sure about her fellow Democrat Dianne Feinstein. The marchers paused this afternoon to call Feinstein’s office to urge her support.

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  • February 5, 2009 2:06 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Union members march in support of Employee Free Choice Act

  Hundreds of union members and their supporters are marching across Los Angeles today. They want Congress to pass the Employee Free Choice Act. The federal legislation would make it easier for workers to join unions.

  One marcher, nurse Deirdre Kirkwood, worked in the neo-natal intensive care unit for 7 years at a hospital in Riverside. She says the hospital fired her about a year ago when she began trying to organize a union for registered nurses.

  Deirdre Kirkwood: “They gave me no reason other than that I was an at-will employee. I had no contract, therefore, they could fire me, legally. It’s against federal law to fire someone for forming a union. But there’s not really much justice attached and that’s one reason why we need to pass the Employee Free Choice Act.”

  Now Kirkwood works for another hospital that has a union contract. The march began near downtown Los Angeles and ends this afternoon at the Federal Building in West Los Angeles.

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  • February 5, 2009 2:04 PM
  • Categories: Business/Economy, Politics/Public Affairs

• California's Healthy Families program welcomes new funding for children's insurance

  California’s Healthy Families program is in the clear for the next four-and-a-half years. President Barack Obama has signed bipartisan legislation that stabilizes federal funding for that program and for similar, low-cost health insurance plans for children across the country.

  About 70,000 uninsured kids and teenagers in Riverside and San Bernardino Counties stand to benefit from the new law. Richard Brown, who teaches public health at UCLA, says it’ll allow families who earn a little above the federal poverty level to qualify for health, dental, and vision care coverage.

  Richard Brown: “The poverty level for a family of four is around $19,000 a year, today. So, this would enable us to raise it to three times that level. When you think about the cost of housing in California, the cost of transportation, that is not a lot of money to, then, go out and buy health insurance.”

  Brown co-wrote a new study (released Wednesday) on uninsured children and the UCLA Center for Health Policy Research. It dissected areas of the Inland Empire by senate, assembly, and congressional districts, and estimated the numbers of uninsured children based on income in those areas.

  LINK: UCLA Study

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  • February 4, 2009 6:02 PM
  • Categories: Business/Economy, Health, Politics/Public Affairs

• Riverside County sues state over deferred payments

  Riverside County is suing the State of California. It wants lawmakers in Sacramento to pony up millions of dollars in delayed funding for social services. KPCC’s Steven Cuevas has details.

  Steven Cuevas: The state held up scheduled payments to the 58 counties when February began. The move temporarily saves the state billions in cash as it fumbles with a $40 billion budget gap. Riverside County lost about $35 million a month for student aid, welfare, and other social services. The only way those programs will get funded now is if the county puts up the dough. Not likely.

  Supervisor John Tavaglione: That will eat up our reserves (snaps fingers) like that!

  Cuevas: Supervisor John Tavaglione says Riverside County has its own $90 million budget crisis to deal with. It could lay off nearly 300 workers by summertime. Tavaglione say the county’s lawsuit is meant to spur state lawmakers into solving the budget stalemate.

  Tavaglione: We needed to tell them to start working together, stop playing partisan games. If they intend to defer payments, fine. We will cut back on those programs and we are not going to backfill on those programs based on their inability to pass a budget, and their inability to make cuts where necessary and their inability put money away for a rainy day because they’re in a habit and that’s why they’re in the mess they are in.

  Cuevas: Riverside County’s lawsuit might not be the last volley fired across the state government’s bow. L.A. County is threatening to withhold property tax revenue it’s collected… calling the move its own “Boston Tea Party.”

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  • February 4, 2009 5:32 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Grammy Foundation hosts career day for high school students

  More than a thousand Los Angeles-area high school students got an opportunity today to learn about careers in music. Ahead of Sunday’s big recording industry awards show, the Grammy Foundation rounded up successful musicians, songwriters, and producers for its 21st annual Career Day at the University of Southern California.

  During a panel discussion, 22-year-old singer-songwriter Jesse McCartney told the students that he began to taste success at age 16. But he resisted the pressure to drop out of high school.

  Jesse McCartney: “That guy who would have dropped out at 15 to 16, his partner that was in that music class that finished high school, he’s the one that’s gonna be more musically inclined graduating. He’s the one that’s gonna get the deal. And even though he waited a little longer, he’s definitely gonna come out on top.”

  After the panel, students attended workshops on topics including music publishing, production, and engineering.

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  • February 4, 2009 4:09 PM
  • Categories: Arts, Business/Economy, Education

• Some industries thrive, even during recession

  The unemployment rate reached almost 10 percent in Los Angeles County at the end of the last year. But some industries - health care and private education among them – seem to thrive, even in a recession. Economist Jack Kyser of the L.A. County Economic Development Corporation says specialized training offers the key to those jobs.

  Jack Kyser: “You can’t even go to be a barista at Starbucks because they’re cutting stores right and left. So it’s, the issue of training is very, very important. A lot of times people, when the economy slows down, would look at temporary help, but firms are laying off their temporary workers.”

  Kyser says voter-approved state bond money - and, possibly, a federal economic stimulus package - may offer a jumpstart to the engineering sector later this year. The sectors that aren’t doing well include construction, manufacturing, and retailing.

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  • February 4, 2009 12:49 PM
  • Categories: Business/Economy

• Disney earnings fall 32% during 4th quarter

  Earnings fell at The Walt Disney Company during the last quarter of 2008. The company reported a 32 percent decline amid a downturn that Chief Executive Robert Iger said is likely to be “the weakest economy in our lifetime.” KPCC’s Steve Julian has more.

  Steve Julian: According to one analyst, it was the first time Iger said publicly that consumers shifting from television and DVDs to digital formats was beginning to affect Disney’s businesses. The shift already has plagued the newspaper and recorded music industries.

  Studio revenue dropped 26 percent, outpacing declines in other businesses. The movies WALL-E and The Chronicles of Narnia: Prince Caspian didn’t perform as well as last year’s Pirates of the Caribbean and Ratatouille.

  Revenue fell 4 percent at resorts and theme parks as attendance dropped. It went up slightly at ESPN and the Disney Channel. Overall, company revenues fell 8 percent to $9.6 billion.

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  • February 4, 2009 9:53 AM
  • Categories: Arts, Business/Economy

• California education chief worries about effect of budget cuts

  California’s education chief says the public schools are in a “precarious” situation. In his annual “State of Education” address, Superintendent of Public Instruction Jack O’Connell said schools face up to $10 billion in cuts this school year because of the state’s massive deficit. O’Connell worries that the resulting layoffs and larger class sizes cuts could hurt some students more than others.

  Superintendent Jack O’Connell: “It’s the students of color, students who are poor, students who are learning English, or coping with learning disabilities, who need the most assistance. And equal cuts across the school, or across a school district, will be inequitably felt by them.”

  Any deal lawmakers work out to balance the state’s $40 billion deficit is likely to include cuts to education.

  The governor says he wants to give schools more spending flexibility. But the state’s biggest teachers union maintains that would leave schools with smaller instructional staffs.

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  • February 3, 2009 6:22 PM
  • Categories: Business/Economy, Education

• Standard and Poor's lowers California's credit rating

  The back-and-forth over the budget in Sacramento has led Standard and Poor’s to cut California’s credit rating to a less-than-satisfactory “A.” That places the Golden State in a tie with Louisiana for the worst credit risk in the country. Christopher Thornberg with Beacon Economics suggests that the picture can only brighten from here.

  Christopher Thornberg: “When you sit down and look at the numbers, you know, we’ve already cleared up some of the mess – maybe we have a $10 billion gap right now, maybe a $12 billion gap left – this is less than 1 percent of our state economy.

  “This is not a big number. The problem here is not that we can’t fix it, the problem is that we’re not fixing it. And of course the closer and closer that we get to running out of cash, the riskier and riskier our bonds are.”

  Thornberg spoke with KPCC’s “Patt Morrison.” In its report, Standard and Poor’s said that despite California’s strong economic fundamentals, the prospects for an imminent recovery look unlikely.

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  • February 3, 2009 5:23 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Disney profits down 32% in first quarter

  Mickey Mouse is reporting mini-profits. The Walt Disney Company says net income down sharply in the first quarter of its fiscal year. KPCC’s Nick Roman has the details.

  Nick Roman: Disney president Robert Iger described the first three months of his company’s fiscal year as “challenging.” “Staggering” might be a better word for what hit the Burbank-based entertainment giant in October, November, and December.

  Disney profits were down 32 percent from the same period a year earlier. Then again, at least they were profits. Plenty of companies can’t say that. What Disney’s feeling isn’t much different from what everyone’s feeling.

  Ad sales for Disney’s TV networks were down because times are tough for its usual ad buyers. DVD sales and toy sales were weak. Theme park attendance dropped – not as much as it could have, thanks to Disney discounts.

  But Robert Iger says you can’t blame all of Disney’s struggles on the bad economy. He says competition for consumers’ attention and money is fierce - and even if they can’t afford much right now, those consumers can still afford to be choosy.

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  • February 3, 2009 5:02 PM
  • Categories: Business/Economy

• Denny's patrons wait 2 hours for free Denny's Grand Slam breakfasts

  At Denny’s restaurants throughout the country today, there was proof that Super Bowl commercials work - especially when they advertise free food. During Sunday’s big game the restaurant chain advertised a free Grand Slam breakfast - pancakes, eggs, and meat – between 6 o’clock this morning and 2 in the afternoon.

  People lined up and waited for as long as two hours to chow down. The owner of one downtown Los Angeles location - he’d only identify himself as “Joey” – handed out rain checks to people who were still waiting when the promotion ended.

  Joey: “It’s like the sign of the times. We have a couple of restaurants, and even before 6 a.m., I mean, line already started out the door. I just hope that this, this will help our business, to get more customers, to get new customers.”

  Joey said that the economy is taking its toll on the restaurant industry, and that sales on most days lately have been a little slow.

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  • February 3, 2009 5:00 PM
  • Categories: Business/Economy

• Million dollar home sales down

  Manhattan Beach sold more expensive houses than anyplace in California last year. That news comes with a recessionary add-on: California real estate agents sold fewer million-dollar-plus homes during the same spell than at any time in the last five years. More on the story from KPCC’s Cheryl Devall.

  Cheryl Devall: Even at the top of the housing heap, sales took a tumble. Realty tracking firm DataQuick reports that 42 percent fewer houses priced at a million dollars or more sold in California last year than in the year before.

  One reason, DataQuick’s president said – wealthy potential buyers are holding onto their cash, and even they can’t get the go-ahead for jumbo mortgage loans. He added that a lot of sales in what realtors call “the upper half” of the market have been on hold for months waiting for financing.

  That’s why only 296 of Manhattan Beach’s most expensive residences sold last year, down more than 100 from the previous year. Last year’s priciest home sale in the state was a 6-bedroom, 10-bathroom Bel Air property that went for $38 million.

  Throughout California, home sales are up by 2.5 percent over this time last year - largely because foreclosed houses are going for a steal.

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  • February 3, 2009 4:58 PM
  • Categories: Business/Economy

• California bonds drop to 'A' rating; worst in the country

  One of the big New York-based bond rating houses has shoved California’s bond rating down a notch. It’s more fallout from the budget chaos in Sacramento. KPCC’s Nick Roman says that means California is tied for the worst bond rating among the 50 states.

  Nick Roman: An A sounds good – but it’s pretty much an F in the world of government-issued general obligation bonds. You want a AA or a AAA rating. That’s what most states have. Not California.

  Standard and Poor’s dropped its rating on $46 billion in California bonds from A+ down to A. The reasons include the state government’s failure to fix its budget - and its “rapidly eroding” cash position.

  The lower rating doesn’t mean California will default on its bonds. The state constitution says debt gets paid no matter what. But when your bond rating goes down, the interest rate on your bonds goes up. It has to so you can get investors to buy your bonds - and give you the money to do the things government does.

  If the state budget gets fixed, California’s bond rating could go back up. But Standard and Poor’s also says that if the budget doesn’t get fixed soon, it will “consider the appropriateness” of an even lower rating.

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  • February 3, 2009 1:15 PM
  • Categories: Business/Economy

• UC campuses will temporarily pick up tab for Cal Grants

  With the state strapped for cash, it’s delayed tax refunds and other payments for at least a month. That includes state grants to students who need the money for fees, books, and education costs. KPCC’s Susan Valot says the University of California system is offering its students a bit of a reprieve.

  Susan Valot: The University of California says it’ll foot the bill to cover the Cal Grant money students haven’t received – but will eventually get – once the budget mess is squared away in Sacramento. It did the same thing last fall when lawmakers in Sacramento were late with the state budget.

  University students that qualify for Cal Grants get up to $10,000 a year to pay for education expenses.

  Until the checks come in again, those students will get an advance on their Cal Grant payments from the UC. The 10-campus university system says it’ll use money from its short-term financial reserves to foot the bill for now. But the UC also says it expects to be reimbursed once lawmakers pass the state budget.

  LINK: Cal Grants

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  • February 2, 2009 5:06 PM
  • Categories: Business/Economy, Education

• New actors union negotiating team to return to talks with producers

  The Screen Actors Guild and the Alliance of Motion Picture and TV Producers are scheduled to meet this week. KPCC’s Brian Watt says it’s a safe bet the tone will be friendlier than the last time they got together.

  Brian Watt: That was a few months ago, when contract talks broke down, and Hollywood started worrying about the possibility of another strike. But last week, it was mutiny at the Screen Actors Guild. Its national board replaced its hardline chief negotiator and executive director, and retooled its negotiating team.

  It also told President Alan Rosenberg he can no longer speak officially on the Guild’s behalf. Rosenberg wrote a song that mocks the softer stance he believes the Guild’s new cast of negotiators will take at the bargaining table from now on. He performed it during an interview with Hollywood blog TheWrap.com.

  Alan Rosenberg: (singing):
  Just tell my bosses that I’ll take what they’re willing to give
  ‘Cause I’m just so grateful that they even let me live.

  Watt: Neither the Guild nor the producers’ alliance will comment on this week’s meeting. Screen actors have been working without a contract since last summer.

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  • February 2, 2009 1:00 PM
  • Categories: Arts, Business/Economy

• Toymaker Mattel posts lower-than-expected fourth quarter profits

  The world’s top toy company, Mattel, posted a fourth-quarter profit that fell far below expectations. KPCC’s Steve Julian says the company was hurt by a strong dollar and weak holiday sales

  Steve Julian: Mattel makes Hot Wheels and Barbie, the doll collection that turns 50 this year. But sales of both product lines fell more than 20 percent last year as fewer people bought toys leading up to the holiday season.

  Fourth quarter profit fell to $176 million dollars, a 46 percent decline. Revenue fell by 11 percent.

  The toymaker, based near Los Angeles, said in November it would shed about a thousand jobs. Company officials noted that Mattel was facing one of the most challenging periods in the past century, and that it wasn’t immune from last year’s deteriorating economic environment.

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  • February 2, 2009 12:03 PM
  • Categories: Business/Economy

• Attorney General Brown says he'll fight state furloughs

  Governor Schwarzenegger has expanded his state furlough program to include employees of constitutional officers… including the State Attorney General, Controller, Treasurer, Secretary of State, Lieutenant Governor, and Superintendent of Public Instruction. But one of those officers thinks the furloughs are illegal. KPCC’s Special Correspondent Kitty Felde reports.

  Kitty Felde: Leave it to a lawyer to challenge an official order from the governor. California’s top counselor, Attorney General Jerry Brown, issued his own legal opinion about the current governor’s plan to give state employees two days off a month without pay.

  In a written statement, Brown, a former governor, said he believes Thursday’s state Supreme Court order okaying furloughs does not apply to constitutional officers, including employees in his office.

  State Treasurer Bill Lockyer sent his own letter to State Controller John Chiang, asking to exempt the Treasurer’s office from the furloughs for the same reasons.

  Attorney General Brown said his department would take “appropriate legal steps” to fight the proposal. He added that his office would find other ways to cut its budget.

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  • January 30, 2009 6:15 PM
  • Categories: Business/Economy, Politics/Public Affairs

• California gas workers get support from other unions

  A federal mediator got involved in contract talks today between the Southern California Gas Company and the union that represents 5,000 of its employees. Their current contract expires tomorrow night, and the union is preparing for a strike. KPCC’s Brian Watt has the story.

  Brian Watt: The two sides remain far apart on key issues including pensions, medical benefits, and sick pay. Members of the Utility Workers Union local voted overwhelmingly earlier this week in favor of striking if necessary.

  Now, the local has the backing of the L.A. County Federation of Labor and its coalition of more than 350 unions. Federation chief Maria Elena Durazo spelled out how union workers - from teachers to truck drivers – are ready to help.

  Maria Elena Durazo: Picket line support, rallies, demonstrations, food drives for the strikers, raising money for the strikers…

  Watt: Art Frias has worked 32 years for the Southern California Gas company in a variety of jobs, from meter repair to customer service.

  Art Frias: Through this job, I was able to join the middle class family, and I want to stay there.

  Watt: Frias and other union members accuse the utility of using tough economic times as an excuse for making a bad offer. The gas company has said it’s offering the workers pay increases as high as 10-and-a-half percent.

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  • January 30, 2009 5:20 PM
  • Categories: Business/Economy

• Museum of Contemporary Art lays off 20% of staff

  L.A.’s Museum of Contemporary Art announced today it’s laying off 20 percent of its employees and cutting more than $4 million from its operating budget. KPCC’s Adolfo Guzman-Lopez has the story.

  Adolfo Guzman-Lopez: The cuts follow a month after philanthropist Eli Broad announced a $30 million bailout for the museum. The day that happened, trustees announced they’d bought out MOCA director Jeremy Strick’s contract and appointed former UCLA chancellor Charles Young as the museum’s chief executive officer. In a statement, Young said the cuts are necessary to ensure the museum’s long-term financial stability.

  MOCA had been on the verge of closing. The sour economy dried up the value of its endowment, and many big donors had stopped giving. The museum’s laying off full-time and part-time employees including curators - 32 in all. Their last day on the job will be next Friday.

  This year marks MOCA’s 30th anniversary. It’s developed a reputation as the nation’s leading contemporary art museum. Many cultural observers agree, but the cuts in personnel and budget will test MOCA’s ability to remain a top museum.

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  • January 30, 2009 5:12 PM
  • Categories: Arts, Business/Economy

• LA County Federation of Labor backs gas workers strike

  The 5,000 union workers at the Southern California Gas Company say they’re ready to go on strike. Their current contract expires at midnight tomorrow, and the two sides are still far apart on key issues including pensions, medical benefits, and sick pay.

  The Utility Workers Union local got some backup today from the L.A. County Federation of Labor – it represents 350 area labor unions. Federation head Maria Elena Durazo said everybody hopes the Gas Company employees can reach a deal.

  Maria Elena Durazo: “But in case that the workers decide to move forward with a strike, UPS drivers, sanitation workers, teachers, actors, security officers, janitors, longshore workers, laundry and hotel workers, port drivers, nurses, and the rest of the hundreds of thousands of workers in the L.A. labor movement are standing with them in solidarity.”

  Durazo said the federation will offer support on the picket line, through food drives and financial assistance for striking workers. Negotiators from the gas company and the union are meeting this afternoon with a federal mediator.

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  • January 30, 2009 3:28 PM
  • Categories: Business/Economy

• Amazon, Netflix prosper amid recession

  During a week in which companies from Starbucks to Shell announced dismal quarterly results, some businesses are reporting that times are pretty good. Online retailer Amazon enjoyed a strong fourth quarter.

  So did movie rental company Netflix, said spokesman Steve Swasey. He told KPCC’s “Patt Morrison” that one reason is that the company anticipated what cost-conscious customers want.

  Steve Swasey: “Netflix changed the way Americans rent movies about 10 years ago and we’re doing it again. And, Netflix makes it very easy for consumers to get movies very cost-effectively, very convenient, with great selection. And, I think all those things put together are a comfort for consumers in this economy.”

  The value of Netflix shares rose 15 percent the day it announced its quarterly results. Swasey said the company’s hiring in its software development, engineering, and finance departments.

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  • January 29, 2009 5:30 PM
  • Categories: Arts, Business/Economy

• Schwarzenegger says it's either furloughs or layoffs for California state workers

  Governor Schwarzenegger says the unions for state workers have a choice: Accept his order to furlough their members for two days a month, or risk layoffs.

  The governor says his order will conserve cash until lawmakers work up a balanced budget for this year and next. He told reporters in Sacramento today that unless he gets the furloughs, he’ll have to lay off state workers.

  Governor Arnold Schwarzenegger: “Labor has the choice. They can help us in making the decision on how we save the $1.4 billion. Our recommendation was furloughs, where everyone takes a little haircut, rather than laying people off.”

  The governor’s order requires state employees to stay home two days a month, unpaid, beginning next week. Public employee unions and the State Controller are challenging the governor in court. A ruling on the furlough order could come this week.

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  • January 28, 2009 5:46 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA City Council votes to continue pachyderm forest habitat

  The Los Angeles Zoo is on track to open its new elephant habitat in about a year and a half. The L.A. City Council voted today to continue construction on the $42 million Pachyderm Forest project.

  For 14 years, Vicky Guarnett has worked with elephants at the zoo including its present occupant Billy, and Gita, a female that died there two and a half years ago. Guarnett said after the council vote that the zoo offers its animals world-class veterinary care.

  Vicky Guarnett: “How can I tell somebody that they’re not gonna lose their grandfather? How can I tell someone they’re not gonna lose a loved one at 40 from cancer? You can’t guarantee anything. Gita was well taken care of, well loved, and she was 52 years old when she passed away with heart problems.”

  Hundreds of people – including Bob Barker, Cher, and Lily Tomlin – crowded the city council chambers to speak against the Pachyderm Forest. Some who testified also urged the zoo to move the Billy to an elephant sanctuary with more room than the six-acre enclosure under construction.

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  • January 28, 2009 4:35 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Investigator says Wilmington man who killed family in deep debt

  We’re learning more about the Wilmington man who apparently killed his family before turning the gun on himself yesterday. KPCC’s Susan Valot says the lead investigator has released more details.

  Susan Valot: That investigator says Ervin Lupoe was deep in debt when he killed his wife, five children, and himself. LAPD detective David Cortez says Lupoe was at least a month behind on his mortgage, owed thousands of dollars on credit cards, and owed the Internal Revenue Service at least $15,000.

  Lupoe and his wife were fired recently from their medical tech jobs at the Kaiser Permanente hospital in West L.A. They allegedly lied about their income to try to qualify for cheaper childcare.

  Investigators say the couple pulled their kids out of school last week and planned to move in with a relative in Kansas. Detectives found the Lupoe’s SUV packed with children’s clothing and snow chains. It’s not clear why that trip didn’t happen.

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  • January 28, 2009 3:08 PM
  • Categories: Business/Economy, Criminal Justice

• Campaign launched to get more to claim earned income tax credit

  A campaign is on in the Southland to get more qualified low-income families to claim the Earned Income Tax Credit. Families with two or more children who earn around $40,000 a year or less can get almost 5,000 of those dollars back.

  But they have to file for it, and 20 percent of eligible Californians don’t. Alicia Lara of the United Way of Greater Los Angeles says that’s because many taxpayers don’t know it applies to them.

  Alicia Lara: “A lot of people think that it’s like welfare or something like that. And what people need to understand about Earned Income Tax - it’s something that you put into the system and earn back. It’s your money, and so, by not filing, you’re leaving money - your own money - on the table.”

  The United Way is working with government agencies and non-profits throughout Los Angeles to spread the word about the Earned Income Tax Credit – and to provide free income tax assistance to those who qualify. More information is available online at EITC-LA.com.

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  • January 28, 2009 3:00 PM
  • Categories: Business/Economy, Politics/Public Affairs

• L.A. Opera announces additional layoffs, pay cuts

  Los Angeles Opera administrators said today that the slumping economy’s forcing them to carry out a second round of layoffs at the 22-year-old company. KPCC’s Adolfo Guzman-Lopez has the story.

  Adolfo Guzman-Lopez: Eight people lost their jobs at the L.A. Opera. Added to the nine people cut a couple of months ago, that equals nearly one fifth of the company’s employees; people who worked to market, produce, and otherwise ensure that “Madama Butterfly” and “Carmen” made their curtain calls this season.

  Chief Operating Officer Stephen Roundtree says the L.A. Opera’s suffering from soft ticket sales. Less investment income for some of its major donors also translates into fewer big contributions. Roundtree says the organization will cut the pay of remaining employees by an average of six percent.

  Stephen Roundtree: Placido Domingo who is, of course, the general director of the company, is taking an eight percent cut, and also he has not taken any salary for the past year.

  Guzman-Lopez: Layoffs and salary cuts will save the opera about half a million dollars in its budget of more than $60 million. Also straining the L.A. Opera’s resources is the extravagant $6 million production this year and next of the four operas in Richard Wagner’s Ring Cycle. But Roundtree predicts that production won’t break L.A. Opera, because advance ticket sales are strong.

  LINK: L.A. Opera

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  • January 27, 2009 5:57 PM
  • Categories: Arts, Business/Economy

• California Republicans among House members meeting with Obama

  The House of Representatives takes up President Obama’s economic stimulus package tomorrow. The president went to Capitol Hill today to see if he could win over Republican lawmakers. KPCC’s Special Correspondent Kitty Felde spoke with one California congressman who was in that meeting.

  Kitty Felde: During more than 20 years in the State Legislature, Tom McClintock built a solid reputation as a fiscal conservative from Thousand Oaks. He’s in Congress now – and lives in the Sierra foothills.

  But he’s the same fiscal conservative - so it’s not surprising that he opposes President Obama’s economic stimulus package. But McClintock says he welcomed the president’s visit to Capitol Hill to seek advice and counsel from Republicans in Congress.

  Congressman Tom McClintock: We’re certainly going to do everything we can to assist him in crafting something that will get bipartisan support, but what’s coming up on the House floor.

  Felde: Even before President Obama stepped foot on a snowy Capitol Hill, Republican leaders made it clear GOP members would vote against the stimulus package unless it’s revised. McClintock says he might shift his position if the president tosses in bigger cuts in corporate and capital gains taxes.

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  • January 27, 2009 3:18 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Label maker Avery Dennison to lay off 3,600 people

  Pasadena-based label maker Avery Dennison announced today it’ll cut about 10 percent of the jobs in its operations around the world. More on the story from KPCC’s Cheryl Devall.

  Avery Dennison: The same economic downturn that’s affecting companies from Caterpillar to Citigroup has driven down earnings at Avery Dennison. The office and industrial products company reported that its fourth-quarter revenues were down 9 percent from the same period the year before.

  That had to do, in part, with the continuing slump in the retail clothing business - a big customer not only for Avery Dennison adhesive labels, but also for its retail information services division. The company says it’ll eliminate close to 3,600 jobs as part of a broader restructuring it began in the final quarter of last year. Avery Dennison employs about 36,000 people in more than 60 countries.

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  • January 27, 2009 1:41 PM
  • Categories: Business/Economy

• SAG president responds to firing of executive director

  The Screen Actors Guild’s national executive director and chief negotiator, Doug Allen, is out of a job. After complaints that Allen has mismanaged contract talks with film and TV producers, a slim majority of moderates on the Guild’s national board ousted him. Guild President Alan Rosenberg has been an ardent supporter of Doug Allen’s. He offered his personal opinion today to KPCC’s “AirTalk.”

  Alan Rosenberg: “Doug was fired because he was too good and too strong, and too much of a unionist. For the first time, we had a negotiator who was saying that this whole idea of pattern bargaining – where we have to be stuck with a deal that was arrived at by other unions who never asked the questions that we needed to ask about how the Internet was gonna impact actors – that that was an absurd notion. And Doug’s the first NED we’ve had in a long time who challenged that notion because of the direction the board gave him, and the negotiating team gave him.”

  Nonetheless, that negotiating team is also out – replaced by a new negotiation task force. SAG’s former general counsel David White is taking over Doug Allen’s duties as interim national executive director. Longtime Guild senior advisor John McGuire takes over as chief negotiator. SAG members have worked without a contract since the end of June.

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  • January 27, 2009 12:15 PM
  • Categories: Arts, Business/Economy

• Officials warn against foreclosure scams

  First come the foreclosures… and then come the foreclosure scams. State and local officials say con artists are offering help for an upfront fee. You know what happens next. KPCC’s Brian Watt says in the midst of this housing crisis, it’s a new and very real challenge.

  Brian Watt: In the last year, more than 12,000 Angelenos fell victim to foreclosure. More foreclosures mean more desperate homeowners trying to save their homes… and, says L.A. Mayor Antonio Villaraigosa, more scammers trying to take advantage.

  Mayor Antonio Villaraigosa: They tell you to give some of their money up front. They offer dream deals, and promise to rework your loans for a small fee. And then, they take the money and run.

  Watt: California Real Estate Commissioner Jeff Davi says his department has shifted its attention to deal with a rising number of foreclosure fraud cases: nearly 300. He said anyone facing foreclosure should know…

  Jeff Davi: …in California, if a notice of default has been filed against your property, nobody can charge you an advance fee for loan modification services.

  Watt: Davi said homeowners should ask anyone who offers those loan modification services to see a license first. Commissioner Davi and Mayor Villaraigosa say legal aid groups and other certified counselors offer free help to anyone who needs to clear up a foreclosure… and doesn’t want to get scammed doing it.

  LINK: Department of Real Estate

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  • January 26, 2009 5:51 PM
  • Categories: Business/Economy, Criminal Justice

• Automakers resistant to stricter EPA regulations

  President Barack Obama has asked the federal Environmental Protection Agency to review a Bush administration ruling over state auto emission controls. In California and a dozen other states that want to regulate greenhouse gases by imposing stricter emission standards, officials praised the new president’s move. The response isn’t as enthusiastic in the country’s auto capital, said Neal Boudette, Detroit bureau chief for the Wall Street Journal.

  Neal Boudette: “In public, it’s pretty muted, and the automakers, especially GM and Chrysler, are not exactly in a position right now to protest too loudly in public because GM and Chrysler are getting loans from the federal government. And they’re hoping the Obama Administration will continue to help them and increase that help.”

  Boudette told KPCC that the auto industry fears more regulation and increased confusion among potential car buyers. For years, the auto industry has fought the states on this issue.

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  • January 26, 2009 5:14 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Study suggests gridlock leads to slower job growth

  Gridlocked traffic may equal less job growth. That’s the finding of a study out of UC Irvine. KPCC’s Susan Valot reports.

  Susan Valot: The study in the “Journal of Urban Economics” suggests that wherever drivers sit in traffic longer, that’s where there tend to be fewer jobs.

  A UC Irvine researcher looked at traffic delays in major metropolitan areas between 1982 and 2003. He found that traffic congestion seems to discourage job growth because it raises the cost of doing business – if you have to sit longer in traffic to get to work, you want to get paid more.

  Traffic also increases the cost of shipping goods. To cover those costs, companies will scrimp a little by hiring fewer workers. The study suggests that if the Los Angeles-Orange County area had slashed traffic in half in 1990, it would have generated about 100,000 additional jobs 13 years later.

  The study comes out as President Barack Obama is expected to push for more spending in transportation and infrastructure projects as a way to boost the economy.

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  • January 26, 2009 4:52 PM
  • Categories: Business/Economy, Transportation

• Quiksilver cuts 200 jobs, reduces expenses

  Quiksilver says it’s cutting 200 jobs and reducing other expenses in its U.S. division. The Huntington Beach-based action apparel maker has been struggling to keep its head above water in rough economic surf. KPCC’s Nick Roman has more.

  Nick Roman: Quiksilver’s been on a bad streak for a long time. In November, it sold off its winter sports brand Rossignol. It ended last year holding about a billion dollars in debt - and it’s trying to renegotiate some of that debt.

  Two weeks ago, it replaced the boss of its U.S. division. So layoffs at Quiksilver aren’t much of a surprise. They also might not be the only news the company makes this week. Quiksilver’s apparently in talks to sell its popular DC Shoes brand to VF Corporation.

  That North Carolina firm owns 25 apparel labels - including Wrangler and Vans. There’s also a rumor that says sports footwear and apparel giant Nike is in talks to buy Quiksilver - and another one that says Quiksilver’s already turned down a Nike offer.

  The last year has been tough for everyone in the action sports apparel industry. Several firms - Quiksilver among them - skipped a big industry trade show in San Diego over the weekend.

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  • January 26, 2009 4:47 PM
  • Categories: Business/Economy

• Economic observers see bank nationalization

  Under the Troubled Asset Loan Program, Citigroup and Bank of America have absorbed close to $90 billion in federal assistance. Some economic observers claim this falls just short of nationalizing the banks.

  Joseph Mason, who teaches finance and banking at Louisiana State University, recalls that the United States did nationalize banks to help restore consumer confidence during the 1930s.

  Joseph Mason: “The nationalization of the banking system lasted on the order of about 25 years; it did help us get out of the Great Depression.”

  Mason told KPCC that there is a downside to nationalization - it could contribute to sluggish economic growth after the crisis subsides.

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  • January 26, 2009 4:21 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Home Depot Expo stores close

  Going-out-of-business sales will start as soon as tomorrow at five Expo home decorating stores in Los Angeles and Orange County. Their parent company, Home Depot, is closing all Expo locations in response to the economic downturn.

  The Atlanta-based retailer also plans to eliminate 7,000 jobs. Home Depot spokeswoman Kathryn Gallaghner said the high-end Expo brand hadn’t performed well, even before the recession.

  Kathryn Gallaghner: “Exiting our Expo business was a very difficult decision, particularly given all the hard work and dedication of our associates in that business. But at the same time it was a necessary decision that will strengthen our core Home Depot Business.”

  Expo stores in Huntington Beach, Laguna Niguel, Westwood Village in Los Angeles, Monrovia, and Redondo Beach in the next two months. About 750 employees at those stores will lose their jobs.

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  • January 26, 2009 2:34 PM
  • Categories: Business/Economy

• Home Depot eliminating 7,000 jobs, closing 5 LA/OC stores

  The country’s biggest home improvement store plans to eliminate 7,000 jobs. Home Depot announced today that it’ll also close five of its high-end Expo home decorating showrooms in Los Angeles and Orange County. Kathryn Gallaghner is a spokeswoman for the company.

  Kathryn Gallaghner: “We will be closing our Expo Stores in Huntington Beach, Laguna Niguel, Westwood Village in Los Angeles, Monrovia, and Redondo Beach. Those Expo Stores will be closing. Throughout the process of closing these stores, we are still committed to meeting the needs of our customers.”

  Liquidation sales at those locations begin tomorrow. About 750 employees will lose their jobs when the stores close in the next couple of months.

  Home Depot was one of several corporations that cut tens of thousands of jobs today in response to the economic downturn. Telecommunications company Sprint/Nextel and heavy equipment maker Caterpillar also announced layoffs, and pharmaceutical companies Pfizer and Wyeth are likely to eliminate jobs when they merge.

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  • January 26, 2009 2:17 PM
  • Categories: Business/Economy

• LA Mayor, state officials, non-profits warn of foreclosure scams

  More foreclosures means more scams that target homeowners desperate to save their homes. Government and non-profit officials are warning borrowers about con artists who promise to help renegotiate a mortgage in exchange for an upfront fee - then walk away without following through.

  California Real Estate Commissioner Jeff Davi told reporters at L.A. City Hall that his office is looking at nearly 300 cases of possible fraud.

  Jeff Davi: “We have people that are facing dire straits, contemplating loss of their home, that are approached by these illegal operators, to give their last few dollars. Offering a solution, offering a salvation, and then providing no services for that. What we do find is that a lot these individuals aren’t even licensed.”

  Davi says when someone offers help to modify a loan, homeowners should ask to see a license first.

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  • January 26, 2009 1:16 PM
  • Categories: Business/Economy, Criminal Justice

• Hip hop's Death Row Records auctions office contents this Sunday

  Folks who want to own a piece of hip hop history will be in Fullerton Sunday morning during an auction of the remnants of Death Row Records. More from KPCC’s Debra Baer.

  Debra Baer: The auction lists more than 500 items from the Death Row offices. They include everything from a MTV Music Video Awards moonman statue to pallets of CDs, and even some of the cigars that Marion “Suge” Knight left at his once-successful music company.

  Knight and his partner Andre “Dr. Dre” Young founded the label 18 years ago and produced some of the biggest names in rap music, including Snoop Dog and Tupac Shakur.

  The company filed for bankruptcy more than two years ago, and was turned over to a trustee because it was heavily in debt. WIDEawake Entertainment of Toronto bought it recently for $18 million.

  The electric chair pictured in the music company’s infamous logo is up for bid, along with some platinum records, personal clothing, and portraits of Knight, Shakur, and other artists from the label.

  LINK: Death Row Records Auction

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  • January 23, 2009 6:10 PM
  • Categories: Arts, Business/Economy

• California biotech company to study embryonic stem cell treatment

  A California biotech company says that within a few months it plans to start the world’s first study of a treatment based on human embryonic stem cells. The treatment developed at UC Irvine allowed paralyzed rats to walk again.

  Peter Kiernam, who chairs the board of directors of the Christopher and Dana Reeve Foundation, said the study offers hope to people with spinal cord injuries. He praised this state’s early efforts to promote stem cell research.

  Peter Kiernam: “California’s been great. They’ve been really the leading edge of, of advocacy and spending and research. And we owe a great debt to the people of California because they were really a big part of the impetus for making this happen.”

  Kiernam spoke on KPCC’s “Patt Morrison.”

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  • January 23, 2009 5:01 PM
  • Categories: Business/Economy, Science/Technology

• California unemployment rate highest in 15 years

  California ended last year with the highest unemployment rate in 15 years. Last month the state’s jobless rate surged by almost a full percentage point to 9.3 percent. More than 1-and-a-half million people were looking for work. Nancy Sidhu is chief economist for the L.A. County Economic Development Corporation.

  Nancy Sidhu: “I knew it was likely to be a higher unemployment rate, I didn’t know it was going to be this much higher. Because we increased a good deal more than the nation as a whole had, which is our best clue to what’s really going on. So this is a fairly significant increase.”

  The nation’s unemployment rate was just over 7 percent last month. Sidhu and other economists predict more job cuts before the economy recovers. Los Angeles County had 9.9 percent jobless rate in December. The Inland Empire rate rose to 10.4 percent – the highest in 13 years.

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  • January 23, 2009 4:43 PM
  • Categories: Business/Economy

• LA jobless rate surged to 9.9% in December

  California’s economy continued to hemorrhage jobs last month. The unemployment rate rose to 9.3 percent in December from 8.4 percent in November. The state reports that 1.7 million people were looking for work last month – almost a third of them in Los Angeles County. Nancy Sidhu is chief economist for the L.A. Economic Development Corporation.

  Nancy Sidhu: “This figures to be a very serious recession. The last time California saw a 9.3 percent unemployment rate was 15 years ago when we were just coming out of the very deep recession of the early 1990s. And so I’m afraid there are more increases in unemployment to come.”

  Sidhu spoke with KPCC’s “AirTalk.” The unemployment rate for Los Angeles County surged a full percentage point to 9.9 percent. That compares with a national jobless rate of a little more than 7 percent.

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  • January 23, 2009 2:40 PM
  • Categories: Business/Economy

• SAG leadership proposes 'compromise plan'

  The leadership of the Screen Actors Guild is backing away from plans to call a strike authorization vote. Instead those leaders are proposing what they call a “compromise plan” with the Alliance of Motion Picture and Television Producers. SAG president Alan Rosenberg explained the proposal to KPCC’s Larry Mantle.

  Alan Rosenberg: “It would entail going back to the AMPTP, to the employers, trying to get them to make the deal a little bit better, because if we’re going to put the deal out to the membership, I’m sure the AMPTP wants to see it ratified.

  “I think they have to do a little bit better than what they’ve done in order to get the deal ratified. It is not a good deal. It is a deal that will damage actors now and in the future.”

  Rosenberg insists that a strike authorization vote is still very much on the table - and is something the union could rely on in the future if negotiations don’t work out.

  A faction of self-proclaimed moderates in the union has opposed the vote, saying that it’s a bad idea during the recession.

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  • January 23, 2009 11:55 AM
  • Categories: Arts, Business/Economy

• Univision, Televisa settle lawsuit

  Your favorite primetime soap operas aren’t going anywhere. KPCC’s Cheryl Devall says that’s because Mexico’s leading producer of the melodramas settled its lawsuit with a major Spanish-language network today in a Los Angeles federal court.

  Cheryl Devall: Mexican producer Televisa and broadcast network Univision announced the settlement on the tenth day of their civil trial. The premise for the court proceeding resembled the plot of a telenovela in which longtime partners scrambled for their share of a fortune.

  Televisa had contended that Univision violated a contract by refusing to pay millions of dollars of proceeds in an advertising revenue-sharing agreement. Lawyers for both sides said the settlement of the three-year dispute will offer better rights to Univision and higher royalty payments to Televisa.

  In a joint statement, they added that there will be no disruption in some of the most popular programs broadcast on the leading Spanish-language network. The companies did not disclose the terms of the agreement, but they did announce a separate one: Televisa will license to Univision the right to broadcast the home games of three top Mexican soccer teams this year.

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  • January 22, 2009 5:23 PM
  • Categories: Arts, Business/Economy

• Hilton Hotels to move headquarters to Washington DC

  Beverly Hills-based Hilton Hotels Corporation plans to move its global headquarters out of the Southland by late this year. KPCC’s Cheryl Devall has more about today’s announcement.

  Cheryl Devall: The hospitality company’s officials say it’ll be cheaper - and better for business strategy – to operate from the Washington, D.C. area than from Beverly Hills. A statement on the corporate Web site says that in addition to operating costs, Hilton’s ability to attract and keep talented people factored into the decision to move.

  Hilton’s been looking to expand beyond its present holdings. They include 3,200 properties - from Hampton Inns to Waldorf-Astorias with a lot of Hilton Hotels in between - in 77 countries. The company employs about 135,000 people, and there’s no word yet on how the headquarters move will affect the ones who work in Hilton’s corporate offices.

  A year and a half ago, when private equity firm Blackstone Group bought Hilton, business observers predicted that the hotelier might relocate its base to cut costs. Hilton Hotels is one of the largest publicly-traded companies in Los Angeles County.

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  • January 21, 2009 3:03 PM
  • Categories: Business/Economy

• State legislator says fed aid won't fix state budget crisis

  They went to Washington, D.C. for the Obama Inauguration - but the state legislature’s top Democrats stuck around an extra day to talk with California’s congressional delegation.

  Senate President Pro Tem Darrell Steinberg told reporters on a conference call that he’s confident Congress will pass an economic stimulus package by mid-February. He says it could bring billions to California.

  Darrell Steinberg: “If it’s 10, if it’s 12, if it’s 8 – it will be a huge help, but not a substitute for the deficit reduction work we have to do directly in Sacramento.”

  Assembly Speaker Karen Bass - who also met with lawmakers on Capitol Hill – says California will not get bailed out by the federal government. She says deep cuts to state programs will still be part of any budget solution, as will new taxes.

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  • January 21, 2009 3:01 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA County unemployment could rise above 10 percent

  The December unemployment numbers for Los Angeles County will be released later this week. The county’s unemployment rate was almost at 9 percent in November. KPCC’s business analyst Mark Lacter says it’s likely that in the next couple of months, that rate could rise above 10 percent.

  Mark Lacter: “Perhaps by quite a bit - and many of those lost jobs will be in the retail and service sectors. With so many low-wage workers losing their jobs, it puts enormous strains on the government’s safety net, which explains why there’s so much concern about the state of California running out of cash for unemployment benefits.”

  Lacter says there’s concern that higher unemployment could lead to more foreclosures, because people won’t have the money to pay their mortgages.

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  • January 21, 2009 11:29 AM
  • Categories: Business/Economy

• 'Paul Blart, Mall Cop' tops box office

  A new comedy about a mall cop secured the top spot at the box office this weekend. Details from KPCC’s Debra Baer.

  Debra Baer: “Paul Blart, Mall Cop” earned an estimated 33.8 million in its first weekend. Kevin James stars as a portly shopping center security guard who tries to foil a bank heist. Sony is hoping it’ll exceed expectations by making 40 million by the end of the holiday weekend today.

  Last week’s first place movie “Gran Torino” dropped to second with about 22 million in ticket sales. In third place was “My Bloody Valentine” – the new horror feature by Lionsgate.

  The new biodrama “Notorious,” about slain rapper Christopher “Notorious B.I.G” Wallace, opened in fourth place with more than 21.5 – the biggest opening ever for Fox Searchlight. And “Hotel for Dogs,” Paramount’s new family comedy, opened in fifth with more than 17 million.

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  • January 19, 2009 9:56 AM
  • Categories: Arts, Business/Economy

• California Lottery retools its nightly drawing show

  The California Lottery’s big television show gets a big relaunch this weekend. KPCC’s Molly Peterson has the story.

  Molly Peterson: When “The Big Spin” debuted more than 23 years ago, California didn’t have much experience in the gaming business. The new state lottery’s promoters offered a televised turn of the wheel to selected players who scored a hundred bucks on scratcher cards.

  Game show star Chuck Woolery even hosted - between his emcee duties on “Love Connection” and “Scrabble.” Over the years, the range of lottery games diversified, and so did the hosts - “The Big Spin” added a Spanish-speaker.

  But last week the state retired that show. A lottery spokesman said it had become dated. On its replacement – “Make Me a Millionaire” – contestants compete for cars or cash in four different games.

  One, called California Cool, will test participants’ knowledge of the state. Lottery commissioners think this is a good time to promote gambling again – the governor wants to pay down the California’s budget deficit by borrowing against future lottery winnings.

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  • January 16, 2009 5:13 PM
  • Categories: Arts, Business/Economy

• Business journalist: Circuit City ran out of time in tough economy

  Circuit City, the country’s second-largest consumer electronics store, announced today it’s closing its remaining locations in this country. After it filed for bankruptcy protection, the company had hoped a buyer would express interest. Ali McCannon of Business Week said it’s a little too late for that now.

  Ali McCannon: “They’ve, you know, run out of time, basically. And it shows too; the buyers are worried about the fact that expanding, especially in kind of the electronics realm, it’s just not a smart strategy at the moment, given how concerned and frugal the consumer has become, barely even spending, if at all.”

  McCannon spoke with KPCC’s “AirTalk.” Circuit City has until the end of March to sell all its merchandise. The closing of its 567 stores in the United States will affect 30,000 employees.

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  • January 16, 2009 1:41 PM
  • Categories: Business/Economy

• Circuit City likely presages many more retail store closures

  Consumer electronics retailer Circuit City, which announced that it’ll close its remaining stores in the next couple of months, is only the latest casualty of the economic recession. Ali McCannon with Business Week says the International Council of Shopping Centers predicts a pretty bad year for mall-based stores.

  Ali McCannon: “They’re projecting 73,000 stores will shut their doors within the next six months. So you know, I think the outlook is pretty dire.”

  McCannon spoke with KPCC’s “AirTalk.” Macy’s, Mervyn’s, Rite Aid, Ann Taylor, and Office Depot have closed some or all of their stores after a dismal holiday shopping season.

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  • January 16, 2009 1:33 PM
  • Categories: Business/Economy

• Business journalist wonders how Circuit City will handle warranties after closing

  Circuit City, the country’s second-largest retailer of consumer electronics, announced today it’s closing its remaining stores. The decision follows a lackluster holiday shopping season and the company’s filing for bankruptcy protection.

  Circuit City has until the end of March to liquidate all its merchandise. It’s uncertain what that’ll mean for people who’ve bought merchandise there with warranties, Ali McCannon of Business Week told KPCC’s “AirTalk.”

  Ali McCannon: “It’s tough to believe, you know, when the stores are liquidated, and then employees are gone. Who would be the staff that will be able in a position to… you know, you think that when you have a warranty problem and you have to call up someone to deal with the issue. Who’s going to be there to do it whether it gets passed on to the specific vendors or suppliers?”

  The store closings leave more than 30,000 employees out of a job. Some Circuit City stores will begin liquidation sales as early as tomorrow.

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  • January 16, 2009 12:58 PM
  • Categories: Business/Economy

• Mayors from Orange County, Baja, California meet to discuss regional issues

  Mayors from Orange County and Baja, California met yesterday in Anaheim to touch base on issues that affect both sides of the border. KPCC’s Susan Valot says tourism and the economy are the major issues.

  Susan Valot: The idea behind the meeting is to work together to solve regional problems. For Mexico, it’s an image problem. Stories of increased drug-related violence have scared away tourists.

  Enrique Perez of the Rancho Santiago Community College District put the cross-border meeting together. He says tourism in Mexico plays a role in Orange County’s economy.

  Enrique Perez: When there’s a perception in Baja that you cannot travel there, that you can’t do business there, obviously the economy of Baja goes down. Well, here in Anaheim, we get a lot of tourism from Baja. We get a lot of shoppers at Main Place and at South Coast Plaza. When their economy goes down because we’re not traveling there, they’re not coming up.

  Valot: The mayors of four Baja cities, including Tijuana and Rosarito, say they’ve improved security in their cities. They’ve bumped up police pay so cops might be less inclined to take payoffs from criminals. And the mayors plan to bring their police for training at the Orange County Sheriff’s Department training facility.

  Mayors from both sides of the border hope to meet annually, just like the U.S. Conference of Mayors.

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  • January 16, 2009 12:32 PM
  • Categories: Business/Economy, Criminal Justice, Politics/Public Affairs

• Governor's press secretary elaborates on proposed lawmaker pay freeze

  During his annual State of the State address, Governor Arnold Schwarzenegger suggested that the state suspend lawmakers’ pay until they work out a budget he can accept.

  His press secretary, Aaron McLear, told KPCC’s Patt Morrison that since other state employees and functions are facing cutbacks and furloughs, the legislature shouldn’t get paid either.

  Aaron McLear: “His point is simple: If we’re unable to get the job done for the people, to deliver a budget which is due on June 15th every year, then the leaders of this state should have some consequences, right? I mean, it’s the people who are suffering, the people who are getting their taxes increased and their programs cut. Well, the folks who are making that happen ought a have some consequences, and that’s the point he made today.”

  During a brief speech delivered without the usual ceremonial flourish, the governor compared a prospective $42 billion deficit with a rock upon the state’s chest that must be removed. Legislative leaders have said they’re making progress toward adopting a budget that’ll meet with the governor’s approval.

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  • January 15, 2009 6:59 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Republican Senator Tony Strickland on proposed pay freeze for legislators

  Governor Schwarzenegger’s suggestion that lawmakers go without pay until they work out a budget is prompting mixed responses in Sacramento. Democratic Assembly Speaker Karen Bass has said she doesn’t think that’ll be necessary because legislative leaders are close to a compromise.

  Republican State Senator Tony Strickland told KPCC’s “Patt Morrison” that something needs to spur lawmakers to get the job done.

  Senator Tony Strickland: “You know, we didn’t need to be here, but that’s old news. We’re leaders, and I think great leaders rise through the difficult times, when you look at our history of our state and our nation. So the governor is right, this does need to be the year of political courage. And there’s not a Democrat problem or a Republican problem; it’s a California problem. People would like for us to fix these problems, and we need move forward recognizing that no one’s going to everything that they want.”

  The projected $42 billion budget deficit was the only subject of the governor’s abbreviated State of the State address.

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  • January 15, 2009 6:54 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Schwarzenegger's press secretary discusses State of the State address

  This year’s State of the State address was one of the shortest anyone can remember; a scant dozen minutes in which Governor Arnold Schwarzenegger outlined California’s lingering budget problems. His press secretary, Aaron McLear, spoke with KPCC’s “Patt Morrison.”

  Aaron McLear: “We’re in difficult times right now, and I don’t think it’s appropriate for us to be talking about all these bold visions and all these bold proposals that he had. And as you know, this is a guy with just boundless ambition, so for him to temper that in a State of State speech is difficult. But we have a $42 billion deficit, and really it doesn’t make any sense for leaders of the state to do anything until we get our fiscal house in order.”

  In his speech, the governor suggested that state lawmakers take a pay cut until they can work out a budget he’s willing to sign. Legislative leaders contend the move won’t be necessary, because they’re making progress toward that goal.

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  • January 15, 2009 6:50 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Legislative leaders praise governor's tone, priorities in State of the State address

  Leaders in the state Senate and the Assembly say Governor Schwarzenegger’s brief State of the State address hit the right tone. Usually the speeches are about the governor’s policy goals. Assembly Republican Leader Mike Villines says that, given the current circumstances, it was good that Schwarzenegger honed in on the budget.

  Assemblyman Mike Villines: “I think he’s totally right. I think this is a historic time; there’s really no other thing for us to focus on, for any of us, Republican, Democrat, Independent, Green, whatever you are. And it’s gotta be done so we can turn around and say, ‘What can we do?’ optimistically.”

  Senate Democratic Leader Darrell Steinberg says he agreed with the Governor’s statements about current, meaningful budget negotiations.

  Senator Darrell Steinberg: “The governor, I think, sought to reassure Californians and we want to reassure Californians that we’re going to solve this problem, and the fact of the matter is we’re downstairs every day making significant progress…”

  Legislative leaders largely agree that the tone of budget meetings with the governor is improving. Democrats have said there could be a budget deal by the end of the month. They’re working to solve a $40 billion plus budget deficit before the state runs out of cash.

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  • January 15, 2009 6:43 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Lawmakers react to Schwarzenegger's State of the State address

  Lawmakers from both sides of the aisle are cool to Governor Schwarzenegger’s suggestion that they forfeit pay if they don’t pass a budget on time. He presented the idea in his State of the State address today.

  Democratic Assembly Speaker Karen Bass says she could have done without that part of his speech.

  Assemblywoman Karen Bass: “His suggestion about us forfeiting pay – I kind of joked and said maybe he would be willing to share his royalties. But I don’t believe it’s going to come to that, so I don’t believe it will be necessary.”

  Senate Republican Leader Dave Cogdill says cutting pay as punishment won’t necessarily produce a better budget.

  Senator Dave Cogdill: “To just get out a budget on time doesn’t make a lot of sense to me. I think we were sent here to do our best to make sure the budgets we approve are the right budgets for the state of California as we see it…”

  Democratic and Republican leaders have been meeting with the governor every day this week on budget negotiations. They need to remedy a $40 billion plus shortfall.

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  • January 15, 2009 6:28 PM
  • Categories: Business/Economy, Politics/Public Affairs

• $400 million in community college bond-funded contracts approved

  The Southland economy’s set to get a small construction boost. Los Angeles Community College administrators are green lighting $400 million in bond-funded contracts. KPCC’s Adolfo Guzman-Lopez has more.

  Adolfo Guzman-Lopez: These contracts account for about one-tenth of the 3-and-a-half billion dollars in bonds voters approved in November to improve L.A. community colleges.

  The contracts will go toward construction of an $80 million health center at West L.A. College, new classrooms, labs, and parking lots at Mission College in Sylmar, and a $28 million parking structure at Harbor College in Wilmington.

  Economists and labor leaders praised the L.A. Community College administration’s swift action to approve construction and design projects. College administrators say these contracts will create more than 6,000 new jobs in the next few years.

  In the last several years voters within L.A. Community College boundaries have approved almost $6 billion in bonds to build and improve facilities.

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  • January 15, 2009 2:45 PM
  • Categories: Business/Economy, Education

• Environmental agency chief responds to State of the State address

  Governor Arnold Schwarzenegger says California cannot address other policy issues until lawmakers come up with a budget he can sign.

  The chief of the California Resources Agency, Mike Chrisman, says that means the state has no money for local environmental initiatives.

  Mike Chrisman: “All of our grant programs, recent general obligation bond programs that funnel dollars for local projects, parks projects, wildlife mitigation projects, and others. All those expenditures have been put on hold as a result of the state budget crisis.”

  Chrisman says his agency and others will close on the first and third Fridays each month until the governor and legislators agree on a plan to pay for state salaries and programs.

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  • January 15, 2009 12:37 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Schwarzenegger delivers brief, blunt State of State address

  Governor Schwarzenegger compared California’s massive budget deficit to a “rock upon our chest.” He also said the state wouldn’t be able to focus on other important issues until it solves the budget problem.

  The governor made the comments this morning during a very short State of the State address. Schwarzenegger told lawmakers that in order to solve the state’s fiscal crisis, they would need to sacrifice.

  Governor Arnold Schwarzenegger: “Of course no one wants to take money from our gang fighting programs, or from MediCal, or from education. Of course not. No one wants to pay more taxes or fees. But each of us has to give up something, because our country in an economic crisis, and our state simply doesn’t have the money.”

  He warned lawmakers that the state faces insolvency within weeks if they fail to close the widening deficit. It’s estimated at $40 billion over the next year-and-a-half.

  The budget crisis prompted changes from State of the State tradition. This year’s speech was only 12 minutes long, and the governor delivered it at 10 in the morning. He usually makes the address in the evening.

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  • January 15, 2009 12:33 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Motion Picture and Television Fund long-term care facility closing

  The medical branch of a retirement facility that’s served performing artists for 60 years is closing by the end of this year. KPCC’s Cheryl Devall has more on today’s announcement by the board of the Motion Picture and Television Fund.

  Cheryl Devall: The high cost of health care has caught up with the medical direct-care services the Motion Picture and Television Fund established in 1948. A statement from its operators says the Woodland Hills long-term medical care facility and acute-care hospital run an operating deficit of about $10 million a year.

  At that rate, the organization’s board says it would run out of reserve money within five years. So the board plans to get out of the direct long-term care business and to concentrate resources on the fund’s six outpatient health centers and other services.

  The changes will not affect the operation of the fund’s retirement and assisted-living homes in Woodland Hills. But they will eliminate about 290 jobs in the medical facilities.

  The organization’s board said that in recent years, the acute-care hospital has rarely cared for more than 10 patients at a time. The fund plans to transfer any remaining patients to nearby hospitals later this year.

  Link: Motion Picture and Television Fund

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  • January 14, 2009 4:57 PM
  • Categories: Arts, Business/Economy, Health

• Gottschalks files for bankruptcy

  The Commerce Department says retail sales were off 2.7 percent in December. That’s more than double what analysts had expected. KPCC’s Susan Valot says that tough December has claimed another California retailer.

  Susan Valot: Fresno-based Gottschalks filed for Chapter 11 bankruptcy. That means it can stay open while it reorganizes.

  As part of the bankruptcy, the regional department store chain negotiated a $125 million financing package from a group of lenders – and it put itself up for sale. The bankruptcy court still has to approve the deal.

  Gottschalks has several dozen stores in the West, including 38 in California, its largest market. The closest stores to the Los Angeles market are in Riverside, San Bernardino, Redlands, and Palmdale. The company did not announce any store closings as part of its reorganization.

  Several chains have blazed this trail already. KB Toys and Circuit City declared bankruptcy recently. Mervyns closed its doors after Christmas.

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  • January 14, 2009 12:15 PM
  • Categories: Business/Economy

• Obama science meetings focus on oceans, economy

  President-elect Barack Obama’s transition team has been consulting with scientists about U.S. ocean policy this week. Linwood Pendleton of the Coastal Ocean Values Center is one of several Californians attending a meeting in Annapolis, Maryland this week. He says some of the discussion there has focused on the role oceans play in the country’s economy.

  Linwood Pendleton: “The ocean is this infrastructure that links so much of what’s going on in all parts of the country, whether it’s pollutants that run down the Mississippi from way up into the heartland, or overbuilding on the coast, or overfishing on the Outer Continental Shelf.”

  Leaders of a federal ocean initiative plan to make recommendations to the next president based on the meeting – and on recent science.

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  • January 14, 2009 12:12 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs, Science/Technology

• 4th quarter earnings prospects don't look good

  Companies are getting ready to release their fourth-quarter earnings during the next few weeks. KPCC business analyst Mark Lacter says the prospects don’t look good.

  Mark Lacter: “Alcoa reported a huge loss in the fourth quarter, which tells you something about the state of manufacturing, and we’re about to see J.P. Morgan, Citigroup, and the other big banks report their numbers - and they will not be good.”

  Lacter says some Southland banks that are solid in normal times are also struggling. They include the Asian-American banks East-West bank and Nara Bancorp. Problems with commercial lending have hurt their profits.

  Lacter says more office building and shopping mall owners are likely to default on their loans as their tenants go under.

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  • January 14, 2009 11:32 AM
  • Categories: Business/Economy

• Number of film/TV production days in LA hit a 15-year low

  Feature film location shooting hit a 15-year low in Los Angeles County, the agency that tracks those trends has revealed. KPCC’s Cheryl Devall says the dragging economy and Hollywood labor politics share the blame.

  Cheryl Devall: FilmL.A. handles permits for all location shooting in the city of Los Angeles and unincorporated L.A. County. That activity took a dive last year, especially during the last three months.

  Movie shoots on location dropped a little more than eight percent during the last quarter, compared with the same spell in 2007. The 100-day Writers Guild strike caused movie producers to wrap up many projects early last year.

  Location shooting for TV commercial slumped, too. FilmL.A. officials say that’s because the weakening economy led advertisers to spend less money.

  Beyond these trends, the agency predicts something worse: that producers aren’t willing to shoot their big-budget projects in and around Los Angeles any more. The FilmL.A. report concludes that locally-produced reality TV shows, with smaller staffs and budgets, have replaced feature films as the engine that drives the region’s entertainment industry.

  LINK: FilmL.A., Inc.

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  • January 13, 2009 6:29 PM
  • Categories: Arts, Business/Economy

• Career counselor offers advice for job seekers

  Times are tough for all kinds of job seekers, even those with college degrees. Don Asher, a career counselor who calls himself “America’s Job Search Guru,” said that despite the odds, some of the oldest methods still work.

  Don Asher: “Walk-in still works, because there you are; they can see you, they can see if you dress well, they can see if you drool, they can see if you curse while you talk. So it’s an advantage that you have.”

  Asher told KPCC’s “Patt Morrison” that it helps to expand your job search beyond what’s posted, and to focus on the kind of work that suits you best, regardless of what the online job listings say.

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  • January 13, 2009 6:25 PM
  • Categories: Business/Economy, Society/Culture

• College graduates face poor job prospects

  The economy’s dealing everyone a bad hand - including people who’d thought their college degrees would offer a life raft. UC Irvine labor economist David Neumark said that in this recession, the burden of unemployment is falling more heavily than usual on college graduates.

  David Neumark: “If you think about the industries that have been affected, we’ve all been hearing about them, particular in finance. Those are high education fields.

  “I guess it’s not surprising – at least to me at any rate – that those with higher education and more professional rated jobs are feeling more of the burden than they might have in a past downturn, let’s say, that was focused primarily on manufacturing.”

  Neumark spoke with KPCC’s “Patt Morrison.” The unemployment rate for college grads is headed toward 4 percent, the worst in a quarter-century. Almost 11 percent of people who hold only high school diplomas are unemployed.

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  • January 13, 2009 4:45 PM
  • Categories: Business/Economy

• OC supervisors approve work furlough policy

  Orange County supervisors today cleared the way for social services workers to take work furloughs. KPCC’s Susan Valot says the board unanimously approved a new work furlough policy.

  Susan Valot: The new policy allows for Orange County agencies to require workers to take unpaid time off - up to one day off per two-week period. The policy goes into effect at the end of this month.

  It clears the way for the county’s Social Services Agency to force thousands of its workers to take two unpaid weeks off this year to save money. The Social Services Agency is the same one that just sent out pink slips to 210 employees.

  Social services workers say the move leaves children vulnerable. They say the county ought to be looking at trimming executive perks or dipping into reserves instead of layoffs and furloughs.

  County Executive Officer Tom Mauk says the county can’t dip into its reserves, except for emergencies, “or else we’ll be back to 1994.” That’s the year the county declared bankruptcy - a bankruptcy it’s still paying off.

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  • January 13, 2009 4:32 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Billboard moratorium introduced in Assembly

  A Southland assemblyman wants to freeze construction on new electronic billboards through the year 2012. KPCC’s Cheryl Devall says critics of the signs contend they distract drivers too much.

  Cheryl Devall: A billboard moratorium would allow time for more thorough research on perceived hazards, said Assemblyman Mike Feuer. He’s introduced a bill in Sacramento that would outlaw new electronic billboards - and the conversion of existing billboards to digital displays - for at least three years.

  Various nonprofit and government studies are trying to determine whether the bright, ever-changing signs jeopardize traffic safety. In his district that includes West Los Angeles and West Hollywood, the digital billboards and oversized ads that wrap the sides of buildings have sparked controversy.

  Advertising companies say a media-saturated landscape forces them to compete harder than ever for attention. They’ve challenged similar local billboard restrictions on First Amendment free speech grounds.

  Last week a federal appeals court ruled against that argument and upheld the City of Los Angeles’ limit on outdoor advertising - including a three-month moratorium on new billboards.

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  • January 13, 2009 1:49 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LA Times raises newsstand price by twenty-five cents

  It’s costing a quarter more to buy the Los Angeles Times. The paper raised newsstand prices from $.50 to $.75 today amid declining advertising revenues. A spokeswoman for the company says it’s still a good deal, and she notes that other area papers like the Orange County Registrar charge as much.

  USC Annenberg journalism professor Bryce Nelson begs to differ.

  Bryce Nelson: “I think that this will drive away readers even more. And in an era when they’re shrinking the product and offering less services, I think that a lot of readers are going to resist paying more for a newspaper that they perceive as offering less than it did a couple of years ago.”

  The price for the Times’ Sunday edition remains $1.50.

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  • January 12, 2009 6:09 PM
  • Categories: Business/Economy

• LA Times raises newsstand prices

  The Los Angeles Times today raised its newsstand price from 50 to 75 cents per copy. The price hike follows layoffs at the paper as its parent company navigates bankruptcy protection. KPCC’s Frank Stoltze reports.

  Frank Stoltze: During tough economic times, newspapers often raise newsstand prices to make up for lost advertising revenue. Newspaper Analyst John Morton writes for the American Journalism Review.

  John Morton: It used to be that if you raised your price by some amount, you’d lose somewhere around 5 percent of your circulation, but usually within a year or so you’d get it all back. What’s different now is if you lose it, you usually don’t get it back.

  Stoltze: That’s because the Internet offers, free of charge, much of the same information newspapers do. The Times’ daily circulation is 780,000. Morton says up to 30 percent of that is probably sold at newsstands.

  A Times spokeswoman says 75 cents a copy is “still one of the best deals in town.” She notes that many other area papers, including the Orange County Register, charge as much. The Times Sunday edition newsstand price remains $1.50.

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  • January 12, 2009 4:23 PM
  • Categories: Business/Economy

• Actors weigh in as SAG board meets

  Screen Actors Guild members may have to decide soon whether to authorize a strike. The Guild’s national board of directors is meeting today and tomorrow to decide when - or if - it will ask rank-and-file members to signal their position.

  Outside Guild headquarters, actress Carole Elliot said she’s ready to vote ‘yes’ in order to give SAG’s negotiating team some bargaining leverage against movie and TV producers. She took aim at the big stars who’ve said they’d vote ‘no.’

  Carole Eliot: “We can’t stand behind Tom Hanks and - I mean they may be wonderful people, but they’re producers! And they’re supplying the money. They don’t want to go on strike.

  “It doesn’t mean we’re going to have a strike. If we vote for a strike authorization, we need 75 percent of the return ballots saying yes. That does not mean we’re going on strike.”

  Many opponents of strike authorization say SAG’s negotiating team has failed in contract talks with film and TV producers.

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  • January 12, 2009 4:06 PM
  • Categories: Arts, Business/Economy

• LA bills homeowners who install alarms

  Homeowners in the city of Los Angeles will have to fork over more cash before they install security systems on their properties. The L.A. City Council approved the ordinance today. KPCC’s Patricia Nazario has the story.

  Patricia Nazario: The ordinance would bar alarm companies from installing security systems until property owners pay a $31 fee and obtain a city permit. Security companies then must verify that homeowners have permission from the city and have paid the licensing fee before they install the alarm.

  City Council approved the ordinance because of a long and costly problem with false alarms. Half the calls the L.A. Police Department responds to involve un-permitted alarm systems.

  L.A. spends more than it collects from homeowners whose alarm systems go off by mistake. The city generally gets stuck with the extra expenses for un-permitted property owners and - until now - it hasn’t maintained addresses on file to bill for the costs and inconvenience.

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  • January 12, 2009 3:58 PM
  • Categories: Business/Economy

• Actors comment on SAG strike authorization

  The national board of directors of the Screen Actors Guild began a special meeting today to deal with growing internal tension over the possibility of a strike. As the meeting started, small groups of Guild members stood outside the union’s headquarters to weigh in on the question. Jerry Gelb opposes authorizing SAG’s leaders to call a walkout.

  Jerry Gelb: “The current platform that our leadership is working from is the standard old rallying, saber-rattling view that ‘we’re the good guys and they’re the bad guys and unless we get what we want, we need to go on strike.’ And right now, the leverage to be gained by wielding any hammer like a strike isn’t gonna bring us the results that they’re hoping to get.”

  Supporters of strike authorization say that leverage is key in talks with film and TV producers who haven’t yielded any ground so far.

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  • January 12, 2009 3:44 PM
  • Categories: Arts, Business/Economy

• Congressional oversight panel criticizes monitoring of bailout money

  A congressional oversight panel has accused the federal Treasury Department of not adequately monitoring $350 billion in taxpayer money it lent to financial institutions through the Troubled Assets Relief Program.

  Economist Christopher Thornberg said it isn’t easy to determine where every dollar goes.

  Christopher Thornberg: “Realistically, the concept of tracking this money, it’s just silly.”

  Joseph Mason teaches business at Louisiana State University and the Wharton School. He said Treasury officials have never articulated what they’d use the troubled asset money for.

  Joseph Mason: “We’re still making up policy as we go along based upon some made up understanding that’s only in the treasury secretary’s head about the causes of this crisis, and so far that hasn’t worked very well.”

  Mason and Thornberg spoke with KPCC’s “Patt Morrison.” Members of a congressional oversight panel say the Treasury’s lack of oversight has hindered its ability to restore confidence in financial markets. They’re calling for more transparency and for stricter regulations on banks and other lending institutions.

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  • January 9, 2009 5:22 PM
  • Categories: Business/Economy, Politics/Public Affairs

• President's economic policy advisor talks about 9/11 influence

  The events of September 11, 2001 left an indelible mark on President George W. Bush’s first year in office. Allan Hubbard, the president’s former assistant for economic policy, spoke with KPCC’s “Patt Morrison” about the way the attacks on the World Trade Center and the Pentagon influenced the Bush administration’s economic policies.

  Allan Hubbard: “9/11 obviously became… and the war on terror became the number one priority of the president, but he continued to pursue his economic goals; also including free trade, dealing with the biggest fiscal challenge in the country, which is the entitlement.”

  Hubbard said that despite the current recession, he believes that during the last eight years the president and his administration have done an excellent job handling the nation’s economy. Hubbard is now chairman of E&A Industries, an Indianapolis-based firm that acquires manufacturing companies.

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  • January 9, 2009 4:38 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Tecnology lets developer sell many downtown lofts at once

  Downtown L.A. lofts for sale – to the highest bidders – all at once! A developer demonstrated new technology today it will use to auction off 79 lofts in downtown L.A.’s Rowan building simultaneously - rather than the traditional one at a time.

  The Web-based technology allows pre-approved bidders to keep tabs on the highest bids for all the units up for auction - and adjust their bidding strategy as the auction continues. Bill Stevenson helped develop the technology. He says it helps sellers move faster, and learn more about what buyers are willing to pay.

  Bill Stevenson: “It’s difficult to get sales quickly in this market. We don’t, exactly where to price either. Nobody is an expert out here. What we’ve done is we’ve set these reserve prices - these minimum bids - at what we believe are below the market, and say, ‘OK now, you - the buying public - tell us where the market really is.’”

  The minimum bid on the cheapest loft is $195,000. Stevenson says the building - at 4th and Spring Streets- had pre-sold 120 of its 206 lofts, but the rough economy and construction delays knocked that number down to around 30.

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  • January 9, 2009 2:51 PM
  • Categories: Business/Economy

• Assemblyman Lieu speaks on Citigroup working with borrowers

  Banking leader Citigroup’s announcement that it will try to work with mortgage borrowers to stem the tide of foreclosures sits well with the author of a Sacramento bill that aims to do the same thing. Assemblyman Ted Lieu spoke with KPCC’s “AirTalk.”

  Ted Lieu: “What this will do is allow consumers to modify their loans in bankruptcy. But I do think it’s important to have these loans be modified prior to bankruptcy because we don’t want to have that be the only option to a homeowner.

  “And so we’ve introduced the California Foreclosure Prevention Bill, which establishes a 90-day moratorium on foreclosures and allows a bank to avoid it if they modify, or have a program to modify, people’s loans.”

  Citigroup - one of the few major banks to favor concessions to homeowners – faces a fight from financial industry lobbyists. Other lenders maintain that altering mortgage loans would drive up the cost of borrowing for a home.

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  • January 9, 2009 2:37 PM
  • Categories: Business/Economy

• Poll: Most Americans willing to pay taxes for infrastructure

  Most Americans are willing to pay a little more in taxes to upgrade schools, roads, and other public works projects. That’s the finding of a poll commissioned by a group called Building America’s Future.

  Governor Arnold Schwarzenegger, Pennsylvania Governor Ed Rendell, and New York City Mayor Michael Bloomberg head the organization. Its survey found that 81 percent of Americans are prepared to pay one percent more in federal taxes for re-building efforts.

  Governor Schwarzenegger says the poll results don’t surprise him because Californians have overwhelmingly supported bond measures for projects like that.

  Governor Arnold Schwarzenegger: “The people are willing to pay for it. They want to have their infrastructure kept up. They want to have the infrastructure kept up, they want to have new roads and new schools. They don’t want to have their kids in overcrowded classrooms…”

  Schwarzenegger also had positive words for President-elect Barack Obama’s re-building proposals, particularly those that involve renewable energy.

  Building America’s Future conducted the online poll of 800 adults late last month.

  LINK: Building America’s Future

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  • January 8, 2009 7:20 PM
  • Categories: Business/Economy, Politics/Public Affairs, Society/Culture, Transportation

• State legislative analyst worried about borrowing in Schwarzenegger's budget plan

  Reasonable, but risky. That’s how the state’s non-partisan legislative analyst describes Governor Schwarzenegger’s latest budget proposal.

  Mac Taylor says the plan is a “good faith effort.” He agrees with the Administration that the state faces a $40 billion shortfall. But Taylor is worried about the borrowing in the governor’s plan.

  Mac Taylor: “So you’ve got at least $23 billion in ‘09; 10 that you have to finance through the credit markets, and given the status of those markets at the time, that could be very difficult for the state to do, to access that credit in the coming year.”

  Taylor says he’s also concerned about the legality of “revenue anticipation warrants,” another expensive type of borrowing the governor wants to use.

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  • January 8, 2009 7:16 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Economist says government has to respond to retail slump

  Washington lawmakers and policy experts are debating the size - and the timing – of a proposed federal stimulus package. Jon Haveman, founding principal of Beacon Economics, told KPCC’s “Patt Morrison” that the government will have to respond to the slump in retail - and soon.

  Jon Haveman: “Somebody spending - the only thing that can turn around these numbers – and it’s not likely to be the American people. That’s more likely to be the American government.

  “We had Barack Obama this morning making his pitch for a $700 billion-plus stimulus package and it’s quite clear that something like that is going to be necessary from the American government.”

  Haveman said that’s because Americans fearful about their economic security are saving and not spending.

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  • January 8, 2009 5:07 PM
  • Categories: Business/Economy

• Macy's closure underscores retail problems

  Last month marked one of the worst holiday shopping seasons on record for American retailers. Jon Haveman of Beacon Economics said today’s announcement that Macy’s would close 11 department stores - including one in downtown Los Angeles - underscores retail’s problems.

  Jon Haveman: “California is in fact a little bit worse than the national average and this is just a high profile event. And that sort of synthesizes or expresses what’s been going on in California for the last two years. Retail in employment in California has been falling since about February of 2007.”

  Haveman, author of “An Economic Backdrop for Fiscal Reform in California,” told KPCC’s “Patt Morrison” that the mortgage lending and foreclosure crisis plays into the decline in retail profits.

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  • January 8, 2009 5:02 PM
  • Categories: Business/Economy

• State schools superintendent responds to proposed budget cuts

  A state proposal to save money by trimming five days from the school year doesn’t sit well with California’s superintendent of public instruction.

  Jack O’Connell told KPCC’s “AirTalk” he doesn’t believe the state is going to save $1 billion, as the governor’s administration claims.

  Jack O’Connell: “Here’s the reality – these districts have collective bargaining agreements already. So, we have a thousand school districts in the state, and I don’t believe you’re going to see a majority of these school districts be able to renegotiate and suddenly in the middle of the year reduce funding for these five days.”

  The state finance department spokesman has said that no school district will be forced to cut days from the academic year for budget reasons.

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  • January 8, 2009 1:08 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• School year cut would not be mandatory

  The Schwarzenegger administration is defending a proposal that would allow school districts to save money by cutting five days from the academic year. H.D. Palmer is a spokesman for the state department of finance. He told KPCC’s Larry Mantle that the proposal would not be mandatory.

  H.D. Palmer: “It is not something that we are proposing as you shall do this or you must do this, we are giving school districts the option of doing this in order to save what again would be, as you noted, a little bit over $1 billion in the coming fiscal year. This is not a proposal that would affect the current school year or the current fiscal year.”

  Palmer added that educators suggested the proposal last year when they met with the governor about the budget crisis.

  But state schools superintendent Jack O’Connell responded that there are better ways to save money - and that districts shouldn’t even have the option of cutting instructional days. O’Connell said he realizes that California will have to cut education money amid the budget crisis, but he added that the state should do it with a scalpel - not a meat axe.

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  • January 8, 2009 1:06 PM
  • Categories: Business/Economy, Education

• State superintendent opposes shortening school year

  The state schools superintendent is criticizing a budget proposal that would allow school districts to shave five days off of their school year. The proposal by Governor Schwarzenegger would give districts the option of reducing their school year from 180 days down to 175 days to save money.

  State Superintendent Jack O’Connell told KPCC’s Larry Mantle that cutting school days is not the way to go.

  Jack O’Connell: “We know we’re going to have to postpone the purchase of much needed textbooks, and computers, and technology, and professional development for our professional educators - all of them really necessary for our students. But to deny our student a learning opportunity that every other class has had since we increased to 180 – I want more learning opportunities for our students, not fewer.”

  O’Connell also argues that such a move could put students in poor areas at a further disadvantage, since wealthier districts might be able to pay for the extra five school days on their own.

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  • January 8, 2009 1:02 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• Macy's closes downtown LA store

  The bad economic news just keeps on coming. Macy’s says it’s closing 11 stores across the country - including one in Los Angeles. KPCC’s Nick Roman has the details.

  Nick Roman: Macy’s reports same-store sales in December fell 4 percent from the year before. That wasn’t as bad as expected – but to get there, the Cincinnati-based retailer had to discount merchandise sharply to drive up the sales numbers. It’s no surprise then that Macy’s followed its gloomy sales report with an announcement that it’s closing 11 stores in nine states.

  Among the closures is a Macy’s store in Downtown L.A. at 7th and Figueroa. It’s a good spot if you work in downtown – or if you ride the bus or the Metro Red Line. But it’s a little tough to see from the street - and parking’s no picnic. The store’s been open for 20 years - but it never seems to be especially busy.

  Macy’s president says closing this store is part of the retailer’s usual end-of-the-year process to “prune under-performing locations.” Clearance sales start next week. As for the 136 workers at that downtown Macy’s – they might be able to switch to other Macy’s stores in the Southland.

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  • January 8, 2009 1:00 PM
  • Categories: Business/Economy

• Schwarzenegger says he'll talk budget with lawmakers again

  Governor Arnold Schwarzenegger says he’s restarting stalled budget talks with legislative leaders to get a quick deficit-cutting deal finished. The state government is on the verge of paying out IOUs if it doesn’t close some or all of a budget deficit that could reach as high as $42 billion over the next year and a half.

  The governor says neither Democrats nor Republicans in Sacramento have done enough to solve the crisis.

  Governor Arnold Schwarzenegger: “It’s not enough for Republicans just to say that, ‘We wanna see first the cuts before we even talk about revenues.’ And it’s not enough for Democrats to say, ‘We wanna first see extra revenues before we talk about cuts.’ Our state needs both in order to weather this crisis.”

  Democrats passed an $18 billion deficit reduction package that the governor rejected. He’s proposed his own bigger package that included enough spending cuts, revenue increases, and borrowing to cover the deficit. But so far, he’s had no takers from either the Democrats or the Republicans.

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  • January 7, 2009 6:06 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Congressman Royce calls for SEC overhaul

  Amid Congressional hearings on Bernard Madoff’s alleged $50 billion pyramid scheme, Orange County congressman Ed Royce told KPCC’s “Patt Morrison” that it’s time to overhaul the federal Securities and Exchange Commission.

  Ed Royce: “It’s an agency full of government bureaucrats who have little understanding of how the markets function, and if we replaced those bureaucrats with individuals with a better understanding of our markets, that would help prevent these types of episodes.”

  Lawmakers from both major parties are expressing dismay that federal regulators didn’t clue in to alleged problems with Madoff’s financial statements. Royce, a Republican, urged better enforcement of existing regulations.

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  • January 7, 2009 5:23 PM
  • Categories: Business/Economy, Criminal Justice

• Sherman calls on SEC members to resign over Madoff

  Congressional hearings are underway this week on Bernard Madoff’s alleged $50 billion Ponzi scheme. Members of the U.S. House Financial Services Subcommittee on Capital Markets say they’re more about investigating this scandal - and preventing a future one - than about finger-pointing.

  But Southland Congressman Brad Sherman told KPCC’s “Patt Morrison” that if federal regulators had done their job, they’d have uncovered fraud a long time ago.

  Brad Sherman: “What they would have seen is two things, first a figure of $17 billion for the assets that Madoff was claiming to have and they would have seen an auditor’s report from an audit firm that no one ever heard of. And if they had bothered to find out that that audit firm had only one CPA, they would have realized that no proper audit could have been conducted.”

  Sherman, a Democrat, said that all sitting members of the federal Securities and Exchange Commission should offer to resign for failing to read Madoff’s annual financial statements close enough.

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  • January 7, 2009 5:04 PM
  • Categories: Business/Economy, Criminal Justice

• LA to exercise outdoor advertising limits

  Now that a federal appeals court has upheld the city of Los Angeles’ right to limit outdoor advertising, L.A. plans to exercise that right as much as possible, says David Michaelson of the City Attorney’s office.

  David Michaelson: “The city planning department is right now preparing new regulations in a comprehensive extensive way governing all aspects of off-site signage, billboards, super graphics, digital signs, you name it. Those new regulations, in a draft form, will probably be released to the city planning commission within a few weeks now.”

  Michaelson spoke with KPCC’s “Patt Morrison.” The appeals court invalidated a billboard company’s challenge to the city on free speech grounds. Although the ruling allows Los Angeles more flexibility in limiting outdoor ads, Michaelson says the city’s facing challenges from other advertising companies.

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  • January 7, 2009 4:13 PM
  • Categories: Business/Economy, Criminal Justice

• Home Depot on decision to drop Sunland-Tujunga store

  Community activists in the northeast San Fernando Valley are celebrating today. Home Depot is dropping a long-term effort to build a store in Sunland-Tujunga.

  Opponents had mounted an intense campaign against the store, saying it would drive small hardware stores out of business and hurt the local environment. Home Depot spokeswoman Kathryn Gallagher talked about why the company is giving up.

  Kathryn Gallagher: “It’s twofold. Given the steps required by the city as well as the current economic landscape, and both of those just point to the fact that it just simply doesn’t make sense, business sense, for us to pursue this project.”

  Gallagher spoke with KPCC’s “Patt Morrison.” As part of its decision not to pursue a store in Sunland-Tujunga, Home Depot is dropping a lawsuit against the city of Los Angeles.

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  • January 7, 2009 2:59 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Anti-Home Depot campaign wins victory in Sunland-Tujunga

  Home Depot is dropping its effort to build a store in Sunland-Tujunga in the San Fernando Valley. The company says it no longer makes business sense to pursue the store, given the recession, and the cost of complying with the city of L.A.’s environmental regulations.

  Community activists fought a long battle against Home Depot. They felt it would kill small hardware stores and harm the environment. Joe Barrett is chairman of the No on Home Depot Campaign.

  Joe Barrett: “The site is surrounded by homes on three sides and there’s an elementary school less than 500 feet away, and the type of traffic that Home Depot attracts is industrial in nature, a lot of trucks.

  “And what we really needed, and what our community plan calls for, is a neighborhood retail center that serves the needs of the community, and we never felt like Home Depot fit that profile.”

  Barrett spoke with KPCC’s “Patt Morrison.” Home Depot operates 13 stores in Los Angeles.

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  • January 7, 2009 2:48 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Leader of anti-Home Depot campaign celebrates victory

  A long battle between Home Depot and community activists in the San Fernando Valley is over. Home Depot is giving up on its plans to build a store in Sunland-Tujunga. The company blamed city regulations and the overall economy.

  Opponents objected to the store on the grounds that it would drive small hardware stores out of business and bring too much heavy truck traffic to the area. They want the site to be a pedestrian-friendly shopping center with such things as restaurants, bookstores, and theaters. Joe Barrett is chairman of the No on Home Depot Campaign.

  Joe Barrett: “If we don’t have the right development on that site, then we would have to live with the consequences for about two generations, and that’s how long Home Depot holds the lease to the property.

  “So, we felt, even if we have to get a vacant site for a while, that ultimately it’s better if we work towards getting the right type of development there.”

  Barrett spoke with KPCC’s “Patt Morrison.” In giving up its plans for a Sunland-Tujunga store, Home Depot dropped a lawsuit against the city of Los Angeles.

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  • January 7, 2009 2:43 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Cal State instructors union releases report on budget cut consequences

  In a new report, the union that represents instructors at Cal State University campuses takes aim at Governor Arnold Schwarzenegger’s proposed budget cuts.

  Schwarzenegger’s proposed cutting millions of dollars from the state’s education system to help close a big budget gap. California Faculty Association president Lillian Taiz says that years of cuts have already created obstacles for low-income students in the Cal State system.

  Lillian Taiz: “They can’t get out in four years. They’re lucky to get out in six years. It could take longer. They’re going to go head-over-heels in debt, if they can figure out how to fill out the forms. Their library isn’t open as many hours as it should be.”

  The California Faculty Association’s report indicates that California ranks 49th of 50 states in educational attainment, the percentage of the adult population that holds at least a high school diploma.

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  • January 7, 2009 2:19 PM
  • Categories: Business/Economy, Education

• Teachers union head: LAUSD layoffs would drive away district's future teachers

  The L.A. teachers union is reacting angrily to the possibility of large-scale teacher layoffs. The LAUSD says budget problems may force it to lay off more than 2,000 of its newer teachers this year. AJ Duffy is president of United Teachers Los Angeles.

  AJ Duffy: “These are the teachers of tomorrow, and if you get rid of them now, they are gone forever. They will not come back to this district. They will go to Florida. They will go to Illinois.They’ll go to any other place where they can get a job, or worse than that, they’ll go to another profession. What we are looking at here is the total devastation of public education in California, and that is a tragedy.”

  Duffy spoke on KPCC’s “AirTalk.” LAUSD says if it moves forward with the layoffs, 1700 elementary school teachers and 600 middle and high school math and English teachers would receive pink slips.

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  • January 7, 2009 1:35 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• LAUSD's Chief Operating Officer: Newer teachers may be laid off

  The LAUSD’s Chief Operating Officer spoke on KPCC’s “AirTalk” today about the district’s financial troubles. Dave Holmquist said L.A. Unified may have no choice but to lay off more than 2,000 of its newer teachers this school year.

  Dave Holmquist: “Well, we certainly hope it doesn’t damage the profession of teaching. I mean, this is all budget driven. We aren’t doing this but for the fiscal crisis that we are in. I mean, certainly we don’t like to lay off teachers, and we don’t want to have to do it mid-year. Fortunately, we do have some out-of-classroom teachers, so while it will be a disruption to learning, we hope to minimize that if it becomes necessary to do so.”

  LAUSD says the state’s fiscal mess has blown a $250 million hole in the L.A. public school budget.

  The teachers who might receive mid-year pink slips have less than two years’ experience, meaning they have fewer job protections than teachers with more seniority.

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  • January 7, 2009 1:25 PM
  • Categories: Business/Economy, Education

• Republican Assemblyman DeVore says tax hikes unnecessary to balance budget

  The day after Governor Schwarzenegger vetoed another Democratic budget plan, Republican assemblyman Chuck DeVore insisted that the state can close its deficit without hiking taxes. He claims that California has more government than it can afford.

  Assemblyman Chuck DeVore: “You’d only have to go back to a budget four years ago, the budget of 2004-2005, and if we adopted that budget we’d be in balance. That’s how much government has grown. The budget four years ago was $78 billion. Now, were people dying in the streets four years ago? Were our children not being educated four years ago? Of course not.”

  DeVore spoke on KPCC’s AirTalk. Democratic state lawmakers tried for a second time to advance a spending plan that raised some taxes and cut other state spending. They’d hoped to approve it without any Republican support. State Republicans and anti-tax groups are suing over that budget strategy because they say it’s illegal.

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  • January 7, 2009 12:56 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Schwarzenegger spokesman says Democrats' spending cuts insufficient; budget stalemate continues

  The state budget is the focus of Governor Schwarzenegger’s press conference this afternoon. Yesterday, Schwarzenegger vetoed a Democratic budget proposal that included a mix of spending cuts and tax hikes. Democratic leaders suggest he bowed to pressure from anti-tax groups. The governor’s spokesman Aaron McLear denies that.

  Aaron McLear: “We’re not really sure what those comments refer to. The governor’s been very clear from the outgo that he needs to have economic stimulus to create jobs, and he needs to reduce government spending before he can support any proposal. The Democrats yesterday sent down same proposal they passed three weeks ago, which for a variety of reasons was unacceptable to the governor, and not good enough to for the state.”

  McLear told KPCC’s Larry Mantle that the Democrats’ spending cuts don’t go far enough. In response, Democrats say they couldn’t accept some of the governor’s economic stimulus proposals.

  Republicans have filed a lawsuit along with anti-tax groups against the Democratic budget proposal. They say it’s illegal because it raises taxes with only a simple majority vote of the legislature, not the two-thirds vote state law requires.

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  • January 7, 2009 12:27 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Democratic Senate leader Steinberg "perplexed" about budget stalemate

  The Democratic leader of the State Senate says he’s “perplexed” as to why Democrats have been unable to reach a budget agreement with Governor Schwarzenegger. Yesterday he vetoed the Democrats’ $18 billion budget plan.

  Senate President Pro-tem Darrell Steinberg maintained that Democrats had met the governor more than halfway on his proposals to stimulate the economy. But Steinberg told KPCC’s Larry Mantle that his party was unwilling to go all the way.

  Senator Darrell Steinberg: “What the governor wanted was a plan that allowed him and his reps to set aside any environmental permit if they deemed it to be an obstacle to expediting the transportation project. We believe that is simply bad public policy.”

  A spokesman for the governor says the Democratic proposal raised taxes but didn’t cut spending enough.

  Republicans and anti-tax groups have filed suit to stop the plan. They insist the plan is illegal because it would raise taxes without requiring a two-thirds vote.

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  • January 7, 2009 12:05 PM
  • Categories: Business/Economy, Politics/Public Affairs

• LAUSD superintendent warns of likely layoffs in face of deficit

  The L.A. Unified School District’s new superintendent Ray Cortines sent a letter today to district employees. In it, he warns of possible layoffs.

  At a news conference this afternoon, Cortines said his immediate goals are to address a $250 million budget shortfall for this school year, and to begin planning for even bigger deficits in the next two years. Cortines said the school district could lose a lot of its newer teachers.

  Ray Cortines: “If I’m a third grade teacher, and I’ve been around for 50 years, I’m not gonna lose my third grade job. But the teacher next door to me, this little young whippersnap that I’ve been mentoring and helping, this teacher is going. So it creates a morale problem within a school.”

  Cortines said 2,000 to 4,000 district employees, not only teachers, could lose their jobs. The L.A. Unified Board of Education must approve any personnel cuts.

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  • January 6, 2009 5:41 PM
  • Categories: Business/Economy, Education

• Groups sue to block California Democrats' tax plan

  Anti-tax groups and dozens of Republican lawmakers are suing to block a plan Democrats passed last month to raise taxes. The package passed without Republican support or a two-thirds legislative vote. The coalition says that makes it illegal.

  Jon Coupal of the Howard Jarvis Taxpayers Association says the Democrats’ move would set a dangerous precedent if it’s allowed to stand:

  Jon Coupal: “What the legislative majority has attempted is clearly a change in state law for the purpose of changing revenue, and we are confident that the courts will agree with us.”

  Coupal says the group filed the legal challenge today in California’s Third District Court of Appeals. The governor has threatened to veto the plan anyway, so it may never become law.

  Democrats say their plan is legal because it cuts and raises equal amounts of taxes. They also say they voted to increase other fees – not taxes – that don’t require a two-thirds vote.

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  • January 6, 2009 5:33 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Univision and Televisa battle over ad revenues

  Two media companies that serve the Southland’s large Spanish-speaking audience are preparing to duke it out in court. Televisa is the Mexican producer of the soap operas that anchor TV network Univision’s prime time.

  It’s claiming that the Spanish-language network cut some Televisa programs out of a deal to share advertising revenue. Media consultant Julio Rumbaut explained the premise of the court battle to KPCC’s “Patt Morrison.”

  Julio Rumbaut: “Televisa feels that it has very, very relevant content and very very compelling content for the U.S. Hispanic market. I think Televisa has tried to find a way to break the contract or be susceptive to by looking at a breach issue.”

  A jury was seated today in the $118 million breach-of-contract case. It’s playing out in a federal courtroom in Los Angeles.

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  • January 6, 2009 4:15 PM
  • Categories: Arts, Business/Economy, Criminal Justice

• Long Beach city council considers sale or lease of municipal airport

  In closed session Tuesday, the Long Beach city council is set to discuss the sale or lease of its airport. KPCC’s Adolfo Guzman-Lopez has the story.

  Adolfo Guzman-Lopez: The bad economy’s pushed Long Beach’s budget almost $16 million into the red. The city’s considering ways to cut spending and generate revenue. Investment banks have approached the city about selling or leasing its 84-year-old airport.

  Long Beach Councilwoman Gerry Schipske thinks the city should continue to run the facility.

  Councilwoman Gerry Schipske: With the economy being what it is, this is not the time for infrastructure to be purchased on the cheap. We as a council, local government, should be focusing on our particular budget and how we’re going to live within our means, and we should not be selling off city assets.

  Guzman-Lopez: Schipske urges plenty of public discussion about a possible sale or lease before she and her council colleagues make a decision.

  Federal officials 12 years ago opened up sale or lease of up to five municipal airports. No airports have changed hands.

  Following a two-year process, Chicago’s city council last October approved a 99-year lease of Midway Airport to a private operator for a $2.5 billion payment. Federal officials are reviewing that proposal.

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  • January 5, 2009 5:56 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• Ban on toxic chemicals in kids products takes effect

  California’s ban on a toxic chemical found in children’s products has taken effect - even as companies and regulators try to figure out how a federal rule also affects those items. KPCC’s Molly Peterson has more.

  Molly Peterson: California retailers can no longer sell toys and other products for kids that contain pthalates – an oily, colorless chemical that softens plastics. The ban’s been a long time coming.

  Big-box stores started phasing out products with the substance last year. Some retailers say California’s ban will set standards for the rest of the country. But that’s not a given in other states that operate under a less-restrictive federal law.

  The Consumer Product Safety Commission says federal law allows companies to keep selling products with pthalates in them as long as those products are made before February 10 of this year. If a company gets the products off the assembly line in time, they can still go to market.

  Senator Barbara Boxer, who sponsored the federal ban, says the commission is incorrectly interpreting the law. Environmental groups worry it’s a recipe for consumer confusion - and a reason to keep reading labels.

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  • January 2, 2009 3:45 PM
  • Categories: Business/Economy, Environment

• Private holding company buys IndyMac

  A private holding company agreed today to buy Pasadena-based IndyMac, the troubled bank federal regulators took over in July.

  Peter Morici, who teaches at the University of Maryland’s business school, told KPCC’s “Patt Morrison” it’s lucky that private investors had the $14 billion they needed to buy.

  Peter Morici: “My feeling is that this is a good thing. This is money coming off the shelf, you know, and now being put in play, and I think that will have a positive effect on the market. But no one event is going to have a salutary effect.

  “You know we’ve seen that over-and-over again. We get good news, then we get a couple days above market and then it falls back and so on and so forth. But this is good news. I mean, these private investors see value in this bank.”

  IndyMac operates 33 branches in the Southland, as well as loan servicing and reverse-mortgage businesses. Its new owners have pledged to inject significant private capital into the company.

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  • January 2, 2009 3:24 PM
  • Categories: Business/Economy

• Rose Parade float chassis get reused

  You can still enjoy the spectacular flower-covered floats from yesterday’s Tournament of Roses Parade. All 46 of them are parked on Sierra Madre Boulevard near Pasadena High School for up-close viewing through tomorrow.

  Tim Estes is president of Fiesta Parade Floats, the maker of 12 floats in this year’s parade. He likens the afterlife of parade floats to the fate of old cars.

  Tim Estes: “After the parade, we’ll tear apart our Chevy Camaro down to the chassis. Then next year, I’m gonna build a Ford Mustang. So the chassis are good for a number of years because we build our own chassis - they’re good for about 10 years, actually.

  “And the majority of the floats are taken apart, dismantled, and pretty much discarded. We certainly recycle all the steel and other materials, but we build new every year pretty much.”

  Estes and his crew have more floats to build for parades coming up in just a few weeks: on the Martin Luther King holiday and Chinese New Year.x

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  • January 2, 2009 2:51 PM
  • Categories: Arts, Business/Economy

• NYSE delists RV manufacturer Fleetwood

  The New York Stock Exchange has dropped one of the Inland Empire’s few Fortune 500 companies. Recreational vehicle manufacturer Fleetwood Enterprises is out of the exchange after its stock value tumbled 98 percent last year. KPCC Steven Cuevas reports.

  Steven Cuevas: For whom does that opening bell on Wall Street toll?

  [Wall Street opening bell rings]

  Pretty soon, it won’t toll for Fleetwood Enterprises. Trading of the once venerable RV maker will be suspended when that bell rings Monday. The company’s value has plunged below the minimum required by Wall Street regulators.

  That doesn’t mean Fleetwood is no more. It’ll hang onto plants in the Midwest and Inland Empire – although it’s already shuttered five of its module housing facilities and let go hundreds of workers.

  Fleetwood still has 6,000 employees nationwide. But each position is being scrutinized as the RV maker attempts to right itself after a long spinout. Fleetwood blew through millions of dollars in reserves for a poorly timed expansion plan.

  Then came soaring fuel prices, a crippling credit freeze – and oh yeah, did I mention global recession? People want to hang on to the home they got, not buy a second one with wheels.

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  • January 2, 2009 2:34 PM
  • Categories: Business/Economy, Transportation

• New law allows restaurants to buy from farmers

  Some of the new laws that take effect today may sound obscure, says Sacramento Bee columnist Dan Weintraub, who keeps track of lots of them. But, he told KPCC’s “Patt Morrison,” one of these laws could affect your next restaurant meal.

  Dan Weintraub: One of my other favorites is this bill that allows chefs to buy restaurant fare directly from farmers and allows farmers to sell their products at their own farms, which begs the question, why did we have a law prohibiting chefs–
  Patt Morrison: Yeah…
  Weintraub: – from buying food from farmers. (laughs)
  Morrison: Sounds like a no-brainer.
  Weintraub: It’s amazing some of the stuff that is on the books.

  Amazing but true – and as of today, that prohibition falls in California.

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  • January 1, 2009 1:34 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Little Tokyo holds New Year's festival

  Downtown L.A.’s Little Tokyo celebrates the New Year with a festival tomorrow. Southern California’s Japanese Chamber of Commerce sponsors the event called Oshogatsu.

  The chamber’s Jeffrey Yamazaki says traditional foods like mochi figure big in the holiday.

  Jeffrey Yamazaki: “Mochi is a rice cake, right? We have red and white mochi we throw away to the audience for free. We have 600 mochi.”

  Yamazaki says this is the 11th year Little Tokyo has hosted a free celebration that helps raise money for cultural exchanges between the United States and Japan. A program of music and performances begins on two stages at 11 o’clock in the morning on New Year’s Day.

  Link: Japanese Chamber of Commerce of Southern California

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  • December 31, 2008 4:20 PM
  • Categories: Arts, Business/Economy

• Anchorage brings float to Rose Parade

  For the first time ever, the city of Anchorage, Alaska is entering a float in the Tournament of Roses Parade. The parade happens just a couple of days before Alaska celebrates 50 years of statehood. Jeannette Moores of the Anchorage Convention and Visitors Bureau describes the contents of her city’s booth at the post-parade Showcase of Floats.

  Jeannette Moores: “Dogs with dogsleds for dogsled rides. Glacier ice, a giant huge piece of glacier ice for people to come up and touch. A climbing wall so people can come out and climb and do some of the activities that we enjoy every day. So we’re hoping that people in Southern California will come out and see what Anchorage and Alaska has to offer.”

  The Showcase of Floats begins after the Rose Parade at 1 o’clock tomorrow afternoon, and continues through Saturday.

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  • December 31, 2008 1:56 PM
  • Categories: Arts, Business/Economy

• Viacom may pull channels from Time Warner Cable

  You won’t find cable TV’s fiercest wrestling match on pay-per-view. It’s taking place in the final hours of this year – as Viacom threatens to pull its channels from Time Warner Cable unless the cable operator pays a higher fee for its programming.

  Viacom channels include Nickelodeon, MTV, BET, and Comedy Central. Patricia Fregoso, regional vice president for Time Warner Cable, told KPCC’s “AirTalk” that Viacom’s pretty bold to ask for more money when the economy’s so bad.

  Patricia Fregoso: “We actually think the claims that equate to pennies to our customers are misleading and actually insulting, because when you do the math, Viacom is asking for another $39 million annually. And, of course, viewers, customers pay that price at the end of the day.”

  Viacom officials counter that the company’s programs are the most-watched on cable, so they’re worth more than Time Warner’s willing to pay. If the two sides don’t settle by midnight, Viacom’s 20 channels on that system will go bye-bye.

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  • December 31, 2008 1:38 PM
  • Categories: Arts, Business/Economy

• Time Warner may drop Viacom channels

  Time Warner cable subscribers may lose Nickelodeon, Comedy Central and 17 other channels after midnight tonight.

  Viacom owns those channels. The media company is in a dispute with Time Warner over pricing. Viacom spokeswoman Kelly McAndrew told KPCC’s “AirTalk” that Time Warner undervalues her company’s channels.

  Kelly McAndrew: “Our networks, nearly 20 of them, garner almost 20 percent of the cable viewing audience - and yet, the fees that Time Warner pays for our programming account for only 2 and a half percent of what they get from their average cable subscriber.”

  McAndrew says Viacom’s seeking a 12 percent increase in fees - worth about 23 cents a month per subscriber.

  But Time Warner’s regional vice president claims that what Viacom really wants is an extra $39 million a year - and that the cable operator would have to pass along that cost to consumers.

  If the two companies don’t reach an agreement by midnight, Viacom says its channels will go dark for Time Warner subscribers.

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  • December 31, 2008 1:36 PM
  • Categories: Arts, Business/Economy

• Anchorage joins Rose Parade

  West Covina. Torrance. Duarte. A number of Southland cities have floats in the Tournament of Roses Parade. This go-round, Anchorage, Alaska joins them for one time only. KPCC’s Brian Watt tells us why.

  Brian Watt: Anchorage has been angling for a float in this parade for quite some time – because it happens so close to a very important date in Alaska’s history.

  Jeannette Moores: It is Alaska’s 50th anniversary of statehood. So it’s happy birthday Alaska on January 3rd.

  Watt: Jeannette Moores works for the Anchorage Convention and Visitors Bureau.

  Moores: This is a great marketing opportunity for our state. Southern California is one of the top visitor markets for Alaska.

  Watt: So the float presents what Anchorage hopes visitors will come and enjoy: glaciers, kayaking, native Alaskan performers. The city’s even shipped down Alaskan spruce boughs and mosses for the decor.

  Don’t forget the life-size sled dogs. And Libby Riddles, the first woman to win the grueling 1000-mile Iditarod Sled Dog Race, is set to ride on the float – in far warmer temperatures.

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  • December 31, 2008 1:17 PM
  • Categories: Arts, Business/Economy

• Potentially suicidal feeling more pressure this holiday season

  Mental health advocates debate whether the incidence of suicide is higher during the holidays. But Sandri Kramer of the Didi Hirsch Community Mental Health Center says that people prone to suicidal behavior are feeling particular pressure this holiday season.

  Sandri Kramer: “What we are hearing that is quite different this year is that there is an increased sense of hopelessness and a greater fear. Perhaps people are still holding on to jobs; still holding on to their homes. Perhaps things are relatively OK but they see the dominoes fall all around them.”

  Kramer spoke on KPCC’s “AirTalk.” Her organization offers mental health services at nine locations in Los Angeles County and operates a 24-hour crisis hotline.

  If you or someone you know may need help with this issue, go online to SuicidePreventionCenter.org for more information.

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  • December 30, 2008 1:48 PM
  • Categories: Business/Economy, Society/Culture

• 'Marley and Me' leads post-Christmas box office

  Hollywood got a nice gift for the holidays: a big turnout at the box office. Details from KPCC’s Debra Baer.

  Debra Baer: After a strong debut on Christmas, Marley and Me continued to draw crowds this weekend, leading the box office with 37 million in sales. The dog tale starring Jennifer Aniston and Owen Wilson made a total of about 52 million since Thursday.

  Bedtime Stories, Disney’s new holiday flick with Adam Sandler, ranked second, making almost 39 milllion since Christmas.

  Running a close third was Paramount’s Bejamin Button with Brad Pitt and Kate Blanchett –with a total of 39 million.

  Rounding out the top five – MGM’s Valkyrie with Tom Cruise ranked 4th earning 30 million since opening on Christmas.

  And – Yes Man was in 5th after making 16 million over the weekend. Overall, the movie industry ended the year strong on the heels of a two-week slide. The top 12 movies made more than 182 million, up 8 percent over the same time last year.

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  • December 29, 2008 12:07 PM
  • Categories: Arts, Business/Economy

• Shoppers at mall not necessarily there to spend money

  Deal or no deal? Del Amo Fashion Center this weekend is crowded with people sorting through racks and sale signs to find out whether stores have stores have slashed prices to their liking. For Laveda Brisbane of Rancho Palos Verdes, it’s not about the shopping. She stood in Del Amo Mall, bagless and soaking in the scene.

  Laveda Brisbane: “I guess it was just to get out together. This is my daughter. And just to be together and we’ll stop and have a Starbucks coffee and… it’s just is a relaxed day. We’re not rushing around trying to find bargains.”

  Brisbane said she and her daughter visited the mall to look and browse, but not really to buy, except maybe some underwear. Apparently that’s what a lot of shoppers did before Christmas, too; most retail establishments say their holiday sales were down this year, compared to last.

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  • December 26, 2008 7:05 PM
  • Categories: Business/Economy, Society/Culture

• Shoppers hit malls for post-Christmas sales

  Retail sales have been down this holiday season. But the malls are still crowded with shoppers trying to snag after-Christmas deals.

  Vicky Vaughn is visiting Southern California from Sacramento. She and her family ended up at Del Amo Fashion Center in Torrance. Vaughn said she found some good deals on clothes and shoes, but she spent a little more conservatively than usual.

  Vicky Vaughn: “Just because of, you know, wanting to make your money go farther, and I think thinking about what other people may not have might make you a little bit reserved and kind of going over the top. You know, makes you think twice this year, than last year.”

  Some people apparently are doing that thinking at home… before they press the “send order” button. Amazon.com reported a 17 percent increase in orders over the holiday season. It’s one of very few retailers to do better this year than last.

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  • December 26, 2008 6:45 PM
  • Categories: Business/Economy, Society/Culture

• Fade to black for VHS format

  For about 20 years, until 1997, the VHS tape was the preferred home video medium. But the last U.S. distributor of that format has announced he’s going out of business. New York Times personal tech correspondent David Pogue told KPCC what that means for the videotapes in your cabinet.

  David Pogue: “Getting your stuff transferred – your personal records, your photos, your films – getting that stuff transferred to the latest format is really expensive. It’s possible. There’s companies that will do it, but to get it done right and color corrected and all that will cost thousands of dollars.”

  Pogue predicted that from now on, any home user who wants to preserve and access that data will have to get used to shifting formats every few years… just as they have with their favorite music.

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  • December 26, 2008 4:38 PM
  • Categories: Arts, Business/Economy

• Santa Anita opens winter racing meet

  Santa Anita opened its winter thoroughbred racing meet today under clear skies… and a cloudy economy. KPCC’s Nick Roman bets it’ll be a tough 84 days of horseracing at the Arcadia track.

  Nick Roman: There are three big days at Santa Anita. The last Saturday in January features the eight Sunshine Millions races. The million-dollar Santa Anita Handicap in March is the track’s richest race. The Santa Anita Derby in April shows off the West Coast contenders for the Kentucky Derby a month later.

  The trick isn’t to draw bettors to Santa Anita on those days. They’ll show up for the big races. The trick is to lure them in on the other days. The lousy economy and an Internet wagering dispute punched a hole in Hollywood Park’s handle during its autumn meet. Santa Anita officials hope to do better.

  Among the keys will be good horses and big fields. But it’ll be tougher to draw both since the economy’s forced the track to cut the purses by 10 percent. Weather will be important, too. Rain that wouldn’t drain fouled Santa Anita’s synthetic track last season. It was so bad they had to cancel racing days. The surface has been replaced, and it’s reportedly held up well during the recent storm.

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  • December 26, 2008 4:35 PM
  • Categories: Business/Economy, Sports/Recreation

• High levels of post-Christmas returns expected

  In more prosperous times, this day after Christmas was the punch lines for jokes about “National Returns Day,” when people throng the malls with gifts they hope to exchange for cash or store credit. Scott Krugman of the National Retail Federation told KPCC that the trend may hold true, even in this grim economy.

  Scott Krugman: “We expect maybe slightly above average return activity. I think because of that, retailers are loosening return policies for consumers, with the idea that this influx of store traffic, there’s an opportunity to covert that into sales.”

  Merchants are eager for any sales they can rack up. Preliminary reports indicate that Americans spent about 20 percent less on women’s clothing, electronics, and jewelry during this year’s holiday shopping season than last year’s. That adds up to the biggest Christmastime shopping decline in four decades.

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  • December 26, 2008 4:32 PM
  • Categories: Business/Economy

• Surveys reveal slowest shopping season in decades

  Early surveys indicate what the gloom-sayers have been predicting for weeks: this has been the slowest holiday shopping season in decades. Malachy Kavanaugh of the International Council of Shopping Centers confirmed that trend on KPCC.

  Malachy Kavanaugh: “We’ve been tracking sales on a weekly basis for the last few weeks and it shows that consumers have cut back. Merchandise categories like discounters and, uh… they seem to be doing well this holiday season, but on the flip side you have department stores and specialty stores and high-end retailers that have been suffering the most.”

  Something to think about if you happen to be navigating post-Christmas mall traffic today.

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  • December 26, 2008 4:00 PM
  • Categories: Business/Economy

• City of L.A. looks to increase parking meter revenue

  Drivers may have just gotten a holiday break from feeding the parking meters, but the city of L.A.’s about to draw a lot more money from that revenue stream. Details from KPCC’s Cheryl Devall.

  Cheryl Devall: Los Angeles is in the process of changing out 6,000 parking meters. The city’s transportation department expects those meters to boost annual revenues by $18 million.

  Here’s how: they’ll accept credit or debit cards and coins. On many of them, you may end up paying for more time than you need. That’s because the minimum charge if you’re using a card is $1. If you’re running out of time, these smart meters can send a text message to your cell phone, and you can feed the meter with the phone, too.

  Another change: On these meters you’ll have to pay for parking until 8:00 in the evening, not the traditional 6:00 cutoff time. That by itself could rack up a lot of parking ticket revenue.

  The city’s describing this as an experiment. If the new meters live up to expectations, they could become the standard on all 40,000 metered parking spaces in L.A.

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  • December 26, 2008 3:47 PM
  • Categories: Business/Economy, Politics/Public Affairs

• High schooler Washington offers advice to Obama

  The economic slowdown weighs on the minds of local high school students. Fifteen-year-old Jasmine Unique Washington at Animo Film and Theater Arts Charter High School in South L.A. says she wants President-elect Barack Obama to restore the country’s economic prosperity. She offers this advice about how to begin

  Jasmine Unique Washington: “Create jobs for Americans that have a fair wage and will support a family.”

  Washington wants Obama and his economic advisers to prevent American companies from shifting jobs to developing countries.

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  • December 24, 2008 1:27 PM
  • Categories: Business/Economy, Politics/Public Affairs

• High schooler suggests priorities for President-elect Obama

  For people lucky enough to have jobs, there’s still the nagging question: Is there enough money in the paycheck to cover food, rent, and other necessities… especially if you clean hotel rooms, park cars, or sew jeans in the garment industry?

  Fifteen-year-old Celine Gonzales attends Animo Film and Theater Arts Charter High School in South Los Angeles. She’d like the next president to address the economic squeeze.

  Celine Gonzales: “My advice to President-elect Barack Obama would be to work on the regulations of the business here in the United States, in order to better have some regulations on the companies, so there would be more jobs for Americans, that they would be able to make a living wage on, like, a humble job.”

  Gonzales says she also wants Obama to invest in schools, and especially in arts education.

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  • December 23, 2008 3:40 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• On heels of Broad bailout, new MOCA CEO promises improvements

  Months before it was expected to run out of money, trustees of L.A.’s Museum of Contemporary Art announced today they’re accepting a $30 million bailout from philanthropist Eli Broad. More on the story from KPCC’s Adolfo Guzman-Lopez.

  Adolfo Guzman-Lopez: Broad offered the money on the condition that MOCA will shake its administration. Trustees bought out the remaining year of director Jeremy Strick’s contract, and appointed former UCLA Chancellor Charles Young to guide the museum through the overhaul.

  Young described his goals to museum trustees and reporters gathered in MOCA’s downtown L.A. auditorium.

  Charles Young: There are many challenges which we have to address. We have to bring our expenses in line with our revenue. We have to find new ongoing sources of revenue, and create an endowment that will help to sustain MOCA’s operation into the future.

  Guzman-Lopez: Young said the museum needs these changes to get past the financial mess it’s experiencing now. MOCA administrators failed to secure donations, and the economy sapped the value of its endowment.

  Half of Broad’s $30 million will pay for art exhibits during the next five years. The other half will match money MOCA raises for its endowment.

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  • December 23, 2008 3:20 PM
  • Categories: Arts, Business/Economy

• Fry's vice president arrested for embezzlement

  Federal authorities have arrested a Fry’s Electronics executive on charges he’d embezzled company money to finance his high-stakes gambling. KPCC’s Brian Watt has the story.

  Brian Watt: As Fry’s vice president of merchandising and operations, Ausaf Umar Siddiqui supervised the buying of whatever the electronics retailer solid in its 34 stores.

  The IRS accuses Siddiqui of making side-deals with five suppliers to keep their goods on Fry’s shelves. He allegedly bought more of those vendors’ goods than normal, and at higher prices, in exchange for kickbacks that totaled more than $65 million.

  Siddiqui reportedly drove a Ferrari, and prosecutors say he was such a high-rolling gambler that casinos chartered private jets to fly him to Las Vegas. The Internal Revenue Service also alleges that Siddiqui set up a shell company to hide the embezzled money, and that he paid nearly $18 million to subsidiaries of the Las Vegas Sands Corporation, operator of the Venetian Casino Resort.

  Siddiqui lives in Palo Alto. Fry’s, based in San Jose, has several locations in the Southland.

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  • December 23, 2008 1:21 PM
  • Categories: Business/Economy, Criminal Justice

• MOCA board of trustees agrees to bailout, resignation of museum director

  The trustees of L.A.’s Museum of Contemporary Art announced today they’re accepting a $30 million bailout from philanthropist Eli Broad to stay afloat. The board also accepted the resignation of longtime museum director Jeremy Strick.

  The trustees and Strick fostered several acclaimed exhibits at MOCA. They also failed to secure the museum’s financial footing as contributions declined in recent years and the economy soured.

  Broad told reporters he wants changes in the museum’s fiscal practices to accompany his donation.

  Eli Broad: “Well, we can’t look back; we’ve got to look to the future. Clearly mistakes have been made; those have been already reported. It’s a new day. And there’s no point in going back and talking about what happened and why it happened. Clearly things should have not have happened that happened. That’s history now, we’re moving forward, not backward.”

  Broad and MOCA’s trustees have hired former UCLA chancellor Charles Young as interim chief executive as trustees shore up the museum’s finances and locate a new director.

  LINK: MOCA

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  • December 23, 2008 1:16 PM
  • Categories: Arts, Business/Economy

• Actors voice differing views on potential strike

  A potential strike by the Screen Actors Guild has caused a deep divide between members. SAG’s contract expired in June, and negotiations have broken down over residual payments to actors in projects distributed on the Internet. The union has postponed next month’s scheduled strike authorization vote by at least two weeks. Ron in Hollywood told KPCC’s “AirTalk” he supports the idea of a strike.

  Ron in Hollywood: “A union is only – has teeth if it can get a strike authorization. If the membership won’t back its union, there’s no point in having a union. So anybody who won’t vote for a strike authorization right now I think is saying they don’t want to be in a union.”

  Michael, who called from Silverlake, said he feared that many who’d vote to strike are either non-working actors with day jobs, or stars so successful they’d be able to weather a long spell without steady work.

  Michael from Silverlake: “It concerns me that our fate lies in the hands of so many who really don’t have much of a vested interest in not striking. In other words, they don’t lose a thing if we do.”

  Actors for and against a strike have announced their positions on competing Web sites.

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  • December 23, 2008 12:05 PM
  • Categories: Arts, Business/Economy

• Actor: strike issue is sharply dividing Hollywood

  The embattled Screen Actors’ Guild has put the brakes on a strike authorization vote… for now. SAG leaders have announced they’re putting it off until after a two-day national board meeting next month. The issue of whether to strike has deeply divided people in Hollywood, actor Tess Harper told KPCC’s Larry Mantle.

  Tess Harper: “I’ve been to three Hollywood parties in the last week; at two of them the host met people at the door saying, ‘Please, please don’t talk about the SAG issue.’”
  Larry Mantle: “It’s that divisive.”
  Harper: “It’s that divisive. So much for consensus.”

  Harper is a former SAG board member. Actors are debating the pros and cons of authorizing a strike against movie and TV producers over residual payments for projects distributed online. Some SAG members fear missing out on a big potential revenue stream; others say an economic recession is the wrong time to shut their industry down.

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  • December 23, 2008 11:56 AM
  • Categories: Arts, Business/Economy

• L.A. Controller Chick says city may have to privatize some services

  Los Angeles City Controller Laura Chick says the city may have to privatize some of it services to address a growing budget deficit. KPCC’s Frank Stoltze reports.

  Frank Stoltze: In a report released Monday, Chick listed golf courses, animal shelters, and the maintenance of city cars as services that might be privatized. She highlighted airports too; likely Palmdale or Van Nuys, not L.A. International Airport. A spokesman for the mayor said the city’s already looking into privatizing its parking facilities.

  Chick said “dire circumstances sometimes lead to drastic measures.” L.A. faces a more than $400 million shortfall in the fiscal year that starts July 1.

  The city’s powerful labor unions – some of the mayor’s and the controller’s biggest political supporters – have opposed any efforts to privatize. They argue that private companies pay lower wages than the city, and that there would be a loss of good jobs.

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  • December 23, 2008 11:04 AM
  • Categories: Business/Economy, Politics/Public Affairs

• Bad economy prompts people to swap guns for gift cards

  Southland law enforcement officials say a record number of people are exchanging guns for gift cards this year. KPCC’s Frank Stoltze says they attribute the increase to the bad economy.

  Frank Stoltze: It’s become an annual tradition in some areas: police offer gift cards to people who surrender their guns. It’s an anonymous program, no questions asked. Before police destroy them, they examine the weapons to see whether anyone used them in a crime.

  In Compton last month, sheriff’s deputies collected a thousand guns – more than twice last year’s total – plus two grenades. Cops in the Coachella Valley say they’re collecting more firearms than ever, too.

  They’re expecting another big turnout for an exchange program today and tomorrow in Lennox, an unincorporated area wedged between Inglewood and L.A. International Airport. Police will trade $100 gift cards for guns that work; $50 gift cards for those that don’t.

  Assault weapons are worth a $200 gift card. The cards are redeemable at Target stores or Ralphs supermarkets.

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  • December 22, 2008 7:01 PM
  • Categories: Business/Economy, Criminal Justice

• Economic downturn hits Toyota with $2 billion in losses

  In a sign that the economic recession reaches beyond borders, Japanese automaker Toyota’s reporting close to $2 billion in likely losses at the end of the current fiscal year.

  Irv Miller, a spokesman for Toyota’s domestic sales unit based in Torrance, told KPCC’s “Patt Morrison” that his company’s hurting from the same consumer credit and spending crunch that affects other car manufacturers.

  Irv Miller: “This is a very far-reaching economic situation. Toyota is not immune to situations such as this, and we are experiencing the same kind of economic crises that other companies are.”

  Auto industry analysts predict that South Korean and European-based automakers will also report losses soon. The Bush administration last week offered $17 billion in federal loans to help General Motors and Chrysler through a similar slump.

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  • December 22, 2008 5:46 PM
  • Categories: Business/Economy, Transportation

• Toyota announces expected operating loss, adjustments

  Make some room, General Motors and Chrysler. For the first time in its 70-year history, Japanese automaker Toyota reported that it anticipates an operating loss.

  Irv Miller, a spokesman for Torrance-based Toyota Motor Sales USA, said the world’s number-two car company plans to adjust the way it does business in the year ahead.

  Irv Miller: “We believe that we can take a look at our manufacturing process and become more efficient there. We can find ways to defer some of our capital investment to a little bit longer term, committing to the R&D that got us here, and find a, find a more efficient way to do things.”

  Miller spoke with KPCC’s “Patt Morrison.” Toyota made $28 billion in profit last year, but it expects almost $2 billion in losses when the fiscal year ends in March.

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  • December 22, 2008 4:05 PM
  • Categories: Business/Economy, Transportation

• Governor Schwarzenegger prods lawmakers on budget from beside the 405

  Governor Arnold Schwarzenegger held a news conference today alongside the 405 freeway in West Los Angeles. KPCC’s Brian Watt says the governor was nudging state lawmakers to pass a budget he can accept.

  Brian Watt: Freeway traffic: Southland motorists know it well, and Governor Schwarzenegger used it to highlight the budget stalemate’s impact on infrastructure projects. Nearly $4 billion in funding is on hold right now, said the governor, and that’s jeopardizing 2,000 projects all over the state. That includes a 10-mile carpool lane on the 405 north of L.A. International Airport.

  Governor Arnold Schwarzenegger: Now, this would reduce 23,000 hours of congestion every day. And now this project has been… cannot move forward. So instead of seeing cranes here, and instead of seeing of bulldozers here, and instead of seeing more construction workers here, we see more gridlock.

  Watt: Schwarzenegger spoke over the shouts of more than a dozen sign-carrying protesters. The environmental and labor activists urged him to sign the budget proposal Democrats in the legislature passed last week. He’s threatened to veto it. State Assembly speaker Karen Bass calls that threat the single biggest obstacle to progress on the state’s road construction projects.

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  • December 22, 2008 3:59 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• Coachella Valley cities sponsor "Gifts for Guns" program

  Short on holiday cash? If you’re packing heat, head to the Coachella Valley. You can swap that gat for goodies. Police departments there are surrendering gift cards to anyone who surrenders a firearm. KPCC’s Steven Cuevas has details on the “Gifts for Guns” program.

  Steven Cuevas: Turn in that rusty .22 or Grandma’s old sawed-off shotgun, and earn a $100 gift card to Target, Wal-Mart, or another retailer of your choice… no questions asked. Authorities will even return stolen guns to their rightful owners, provided the person is still licensed to carry the weapon.

  Over the weekend, more than 150 guns were handed over to cops in Cathedral City, Indio, and Desert Hot Springs. Cathedral City saw the biggest turnover. Officers ran out of gift cards in 15 minutes. A crowd of pistol-packing Christmas shoppers waited impatiently while more were retrieved. A few dozen people were turned away in Indio when cards ran out there.

  The “Gifts for Guns” exchange program continues through Tuesday at police departments throughout the Coachella Valley.

  Note: Indio, Cathedral City, Palm Springs, and Desert Hot Springs Police Departments are all taking part in the program.

  Gift for Gun Locations, Dates, and Times:

  December 20 and December 22, 2:00pm - 4:00pm, next to the IMAX, Cathedral City

  December 20 and December 22, 2:00pm - 4:00pm, Animal Care Center, Indio

  December 20 and December 22-24, 12:00pm - 2:00pm, Carl May Center, Desert Hot Springs

  December 23, 12:00pm - 3:00pm, PSPD 200 South Civic, Palm Springs

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  • December 22, 2008 2:44 PM
  • Categories: Business/Economy, Criminal Justice, Society/Culture

• Report says state budget cuts on social services will hurt economy in long run

  To close a crushing multi-billion dollar budget gap, state lawmakers are proposing cuts to everything from education to roads. But a new report from the Sacramento-based California Budget Project says slashing social programs will do more than hurt low-income and newly unemployed Californians at a bad time.

  Project director Jean Ross says slashing food stamp, Medi-Cal, and Cal-Works programs will damage the economy, too.

  Jean Ross: “The worst thing you can do during an economic downturn is to cut back on that flow of dollars. And as a result families buy less, have a tougher times making ends meet, and so would ask lawmakers that they be creative in devising strategies to address the budget gap, and that they minimize the cuts to low income families.”

  The California Budget Project instead recommends that state lawmakers impose carefully chosen tax hikes. Jean Ross says that’s better than cutting deeply into safety net programs during a bruising recession.

  LINK: California Budget Project

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  • December 22, 2008 2:33 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Schwarzenegger orders hiring freeze, worker cuts

  By JUDY LIN

  Associated Press Writer

  SACRAMENTO, Calif. (AP) - Gov. Arnold Schwarzenegger on Friday ordered a state hiring freeze and payroll cuts to conserve cash as California struggles to deal with a $42 billion budget deficit.

  The governor issued an executive order that requires state agencies to reduce payroll by 10 percent, which could lead to massive layoffs. He also ordered the state’s 235,000 employees to take two days off a month without pay, starting Feb. 1.

  Schwarzenegger also issued an executive order calling lawmakers back into session to deal with the budget for the third time in two months. On Thursday he announced he would veto an $18 billion Democratic deficit-cutting package that he said didn’t do enough to address the financial crisis.

  In a letter to state workers, Schwarzenegger said California must take emergency steps that will require sacrifices from everyone.

  “It is imperative that state government look inside itself and be part of the solution,” the governor wrote. “We simply have no other choice.”

  Labor officials said they were considering filing a lawsuit to prevent job losses.

  “We definitely think we have grounds for filing an unfair labor charge,” said Jim Herron Zamora, a spokesman for the Service Employees International Union, Local 1000, the largest state employee union. “Our contract doesn’t allow him to do this.”

  Officials warn that the state will run out of cash in February unless Schwarzenegger and lawmakers can reach a deal to close the budget gap with spending cuts, revenue increases or a combination of both.

  Schwarzenegger ordered all state employees to take two days off a month without pay or take a similar salary cut to achieve $1.3 billion in savings through the next fiscal year.

  On top of that, the governor directed agencies that get their money from the state’s largest budget account, the general fund, to achieve a 10 percent payroll savings. Officials said that could lead to an undetermined number of layoffs.

  Department of Personnel Administration spokeswoman Lynelle Jolley said any workers who lose their jobs as a result of the order could seek employment at other state departments that use special state funds.

  “We’re hoping we can do this with the least number of layoffs possible but the goal is to address this imminent cash crisis,” Jolley said.

  Lawmakers adjourned for the holidays Thursday after Democrats pushed through a package of spending cuts and tax increases using a creative maneuver to bypass Republican opposition.

  Schwarzenegger’s decision to veto the package left Democratic leaders scrambling to save their plan. They argued that it met some of his demands for speeding up public works projects and selling surplus state property.

  Assembly Speaker Karen Bass, D-Los Angeles, said it was “mind-boggling” that the governor would throw away a package that begins tackling the state’s fiscal problems because it didn’t contain exactly what he wanted.

  “It’s like a child telling Santa if you don’t bring every single item on the list, then stay out of my chimney,” Bass said. “I am hoping that the governor over these next few days will really reconsider saying he will veto the budget.”

  Bass and Senate President Pro Tem Darrell Steinberg, D-Sacramento, said they would remain at the Capitol to negotiate with the governor or his staff, but would not call the other 118 lawmakers back until a deal could be reached.

  Under the governor’s special session declaration, lawmakers have 45 days to send the governor bills that address the budget crisis. If they fail to do so, the Legislature may not act on other bills.

  The governor had sought what he said was assistance for homeowners facing foreclosure, broad authority to relax environmental regulation on public works projects and more toll roads. Democrats allowed only partial waivers for a limited number of road projects and for certain state properties up for sale.

  Additionally, Schwarzenegger requested deeper cuts than Democrats were willing to offer, such as reductions in welfare and senior assistance programs, greater flexibility to reduce school spending, and the elimination of two of 14 state employee holidays.

  Environmental advocates also questioned why the governor would toss aside the only deficit-cutting legislation to reach his desk since he declared a fiscal emergency on Nov. 5. Paul Mason, deputy director of the Sierra Club in California, suggested that by demanding environmental exemptions, the governor was betraying his public image as a crusader against global warming.

  Associated Press Writers Samantha Young and Steve Lawrence contributed to this report from Sacramento and Garance Burke contributed from Fresno.

  (Copyright 2008 by The Associated Press. All Rights Reserved.)

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  • December 19, 2008 7:01 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Orange County transportation officials line up possible projects

  If President-elect Barack Obama is able to push through a comprehensive economic stimulus plan, Orange County’s roadways and railways could see some of the windfall. At least, that’s what county transportation officials hope. KPCC’s Susan Valot says today they unveiled what they’d do if they get the money.

  Susan Valot: Orange County Transportation Authority officials say the top project on their list is widening the 57 Freeway. That’ll cost $140 million, but officials point out it would generate more than 5,000 jobs.

  In all, OCTA has a list of projects that totals more than $2 billion. It includes building a parking structure at the Metrolink station in Tustin, improving railroad grade crossings throughout the county, and widening Alton Parkway in South County.

  Transportation officials say investing in infrastructure, like roads and bridges, is critical for turning the economy around. Their projects would create nearly 56,000 jobs. But it all hinges on what’s in President-elect Obama’s stimulus plan… and whether federal lawmakers pass it.

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  • December 19, 2008 5:04 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• City of L.A. passes renter protection law in face of foreclosures

  The mortgage crisis doesn’t just hurt homeowners. Renters can be in for a shock when lenders foreclose on their landlords’ properties. KPCC’s Cheryl Devall says the City of Los Angeles signed off on a rescue plan for renters today.

  Cheryl Devall: In the first nine months of this year, 1300 apartment buildings in Los Angeles went into foreclosure. That meant the tenants had to move out right away. And LA Mayor Antonio Villaraigosa said that shouldn’t happen if they kept up with their rent and lease payments.

  A new city law will make it illegal to turn out tenants in foreclosed buildings, at least until a new owner takes control of the property. City officials predict that the change could affect 300,000 apartment buildings and houses for rent.

  The law echoes mortgage guarantor Fannie Mae’s decision this week to renew the leases of renters who live in the foreclosed buildings it owns. Renters who face eviction because of foreclosure may seek help from the City of L.A. housing department toll-free at 866-557-R-E-N-T. (866-557-7368)

  LINK: City of L.A. Housing Department

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  • December 19, 2008 4:19 PM
  • Categories: Business/Economy, Society/Culture

• Founder of nonprofit Homeboy Industries praises Solis pick for Labor

  The next head of the federal Labor Department has a soft spot for Los Angeles’ gang intervention non-profit, Homeboy Industries.

  Father Gregory Boyle, who founded the rehabilitation program 20 years ago, says that throughout her political life Hilda Solis has been a friend to his cause.

  Father Gregory Boyle: “…and a model, especially, to Latinas who look at her and see what she’s accomplished. She’s been a very prophetic voice in the Congress. I anticipate she’ll be the same in this cabinet.”

  President-elect Barack Obama today announced he’s chosen the Latina Congresswoman from El Monte as his Secretary of Labor.

  LINK: Homeboy Industries

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  • December 19, 2008 4:14 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Schwarzenegger announces further state layoffs, cutbacks

  Governor Schwarzenegger told state employee unions that to save some cash, they’ll face unpaid furloughs for two days every month beginning in February. The governor’s also ordering a 10 percent cut in the state workforce. That could result in thousands of layoffs.

  Jon Haveman with Beacon Economics, a research and consulting firm, told KPCC that these moves could further darken California’s ominous employment outlook.

  Jon Haveman: “This year we’re down about 150,000 jobs. And next year, I won’t be surprised if it’s also an equivalent number. So we’re talking about, in a decline, about 300,000 jobs in the state.”

  Haveman predicted that by the end of the coming year, the state’s unemployment rate will edge toward 10 percent. California officials announced an unemployment rate of almost 8.5 percent for last month.

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  • December 19, 2008 3:53 PM
  • Categories: Business/Economy, Politics/Public Affairs

• City of Hemet imposes city-wide layoffs

  The city of Hemet is the latest local municipality to impose layoffs. KPCC’s Steven Cuevas says the axe is even falling on once-sacred cows: The police and fire departments.

  Steven Cuevas: Hemet is laying off four police officers. By some city’s standards, that might not seem like much. But the Hemet PD has only about 80 cops on the payroll.

  It already slashed two dozen positions through attrition and a hiring freeze. The latest cuts take effect in 30 days. Many officers are already looking for work elsewhere.

  The city of 70,000 will also close one of its fire stations. It has only five. Nine city workers will also get the axe. Two dozen others have been offered early retirement incentives. The Hemet City Council wants all departments to trim spending by as much as 25 percent.

  The city’s budget woes are tied to a drop in development fee income, and declining revenue from property and sales taxes.

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  • December 19, 2008 3:47 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Highland Park resident praises Solis' work as congresswoman

  President-elect Barack Obama has given the nod to Southland Latina Congresswoman Hilda Solis to head the Labor Department.

  Angelenos are proud of her success story. Beth Steckler from Highland Park described the Democratic representative from El Monte as a fighter.

  Beth Steckler: “She’s carried that Green Jobs bill, and she did that before Obama was elected. I really think that idea of transforming – using the economic stimulus and job creation to transform our energy system is a really good idea, and I think she understands that.”

  Solis is a leader in the Congressional Hispanic Caucus, and political observers regard her as pro-union.

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  • December 19, 2008 3:42 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Solis accepts Labor post; credits upbringing with shaping her values

  East L.A.’s Congresswoman Hilda Solis is president-elect Barack Obama’s pick for Secretary of Labor. This morning she introduced herself to national reporters who are just learning her story.

  Labor Secretary-designate Hilda Solis: “As a daughter of immigrants raised in La Puente in the San Gabriel Valley, near the beloved East Los Angeles, I learned at a very young age the value of hard work, public service, and commitment to family. That’s why I share President-elect Obama’s belief in an America where, if you work hard, anything is possible.”

  Southland organized labor leaders are praising the appointment. Solis is the daughter of union members who came to this country from Mexico and Nicaragua. She’s focused on workers’ and immigrants’ rights during her years in Congress and the California legislature.

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  • December 19, 2008 3:35 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Obama selects Congresswoman Hilda Solis for Labor Secretary

  President-elect Barack Obama has nominated Southland congresswoman Hilda Solis as his Secretary of Labor.

  Obama praised Solis as a champion of the middle class.

  President-elect Barack Obama: “For the past eight years the Dept. of Labor has not lived up to its role either as an advocate for hard working families or as an arbiter of fairness in relations between labor and management. That will change when Hilda Solis is Secretary of Labor. Under her leadership, I am confident that the Department of Labor will once again stand up for working families. I’m confident about that because Hilda has always been an advocate for everyday people.”

  Solis said she learned the value of hard work growing up in La Puente as the daughter of immigrants. She added that she’d work to enforce federal labor laws and to strengthen worker protections.

  Solis was the first Latina to serve in the California state senate. For eight years she’s represented East Los Angeles and parts of the San Gabriel Valley in Congress.

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  • December 19, 2008 3:30 PM
  • Categories: Business/Economy, Politics/Public Affairs

• City of Redlands imposes city-wide layoffs in face of budget gap

  Governor Schwarzenegger’s plan to order state workers to take unpaid leave is nothing new. At least one Southland city has already moved ahead with furloughs in an effort to close its own ballooning budget gap. KPCC’s Steven Cuevas has more.

  Steven Cuevas: About 400 city employees are being ordered to take two weeks of unpaid leave through the end of the fiscal year in June. The furloughs could save the city around half-a-million dollars.

  Redlands is trying to face down a budget deficit that approaches $3 million. It has around twice that in reserves, but that money’s supposed to be saved for emergencies like earthquakes or fires, not a bad budget.

  On top of the furloughs, most city offices in Redlands will be shut down on Fridays. They’re already closed every other Friday.

  Unions representing city workers agreed to the cost-saving actions. The cuts do not affect the Redlands police and fire departments… for now. The city is negotiating similar cuts with those unions. It might offer early retirement packages, too.

  The culprits behind Redlands’ budget collapse are the same as in other cities: Property values have fallen sharply. Development has slowed to a crawl. Sales tax revenue is down.

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  • December 19, 2008 3:28 PM
  • Categories: Business/Economy, Politics/Public Affairs

• City of L.A. offers lead toy testing and exchange

  Parents who live in Los Angeles are invited to test their children’s toys for lead tomorrow at four different sites around the city. Frank Mateljan is with the L.A. City Attorney’s office.

  Frank Mateljan: “We have our experts there with the equipment to test the toys. If the toys do preliminarily test at a high level of lead, parents will then have the opportunity to exchange that toy for a $25 gift certificate.”

  Families can exchange up to two toys for gift cards. A legal settlement with Mattel and other toymakers is paying for the program. The city and state sued them after last year’s massive recall of lead-painted toys made in China.

  For more information, visit the City Attorney’s Web site

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  • December 19, 2008 3:24 PM
  • Categories: Business/Economy, Criminal Justice, Society/Culture

• Gang member rehabilitation program cuts back in face of financial hard times

  Los Angeles’ one-stop shop for gang member rehabilitation has fallen on hard times. Homeboy Industries has imposed a hiring freeze in its food service and silk-screening enterprises, because there’s no money to fill 100 jobs that have opened up since last summer.

  The non-profit’s executive director, Father Gregory Boyle, says any gesture of public support, including eating at the Homegirl Café or ordering bread from the bakery, counts for a lot right now.

  Father Gregory Boyle: “Most importantly, if they’re an employer who’d be willing to secure one spot for one person who is released from prison and is ready to redirect his or her life. Those are huge helps.”

  Boyle says this is the first time in its 20-year history that Homeboy Industries has frozen hiring for its learn-on-the-job programs. He says the economic downturn is forcing some of its sustaining donors to cut back on contributions.

  LINK: Homeboy Industries

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  • December 19, 2008 3:18 PM
  • Categories: Business/Economy, Society/Culture

• Obama names Southern California congresswoman Hilda Solis as Secretary of Labor

  President-elect Barack Obama named Southern California congresswoman Hilda Solis as his Secretary of Labor this morning.

  Solis said she’ll work to strengthen unions and support the nation’s diverse workforce..

  Hilda Solis: “I look forward to working with President-elect Obama to reinvest in workforce training, build effective pipelines to provide at-risk youth in underserved communities with sustainable skills, and support high-growth industries by training the workers that they need. This includes promoting green-collar jobs.”

  Solis said those jobs would help to combat climate change as they offer economic security to working families.

  Voters just elected Solis to a fifth term in Congress. She represents a district that includes East Los Angeles and the San Gabriel Valley. Solis also served in the state legislature for eight years.

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  • December 19, 2008 1:06 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Gas prices starting to rise again

  When you fill ‘er up this weekend, bring along an extra handful of change. KPCC’s Nick Roman says gas prices are moving up just a little bit.

  Nick Roman: In L.A. and Orange Counties, you’re paying a little more than $1.73 for a gallon of gas. That’s still less than last week, but you won’t be able to say that for long.

  The Oil Price Information Service says the price of gas has gone up for two straight days in L.A. County… for three days out of the last five in Orange County. That’s after falling every single day for three months in a row.

  A lot of it has to do with OPEC’s talk this week about cutting back oil production. Some of it has to do with increased demand for gasoline during the holiday travel season. But OPEC’s promise to cut production didn’t shake the markets all that much; holiday traveling will be over in a couple of weeks; and if the economy shivers in January, the demand for gasoline will drop even more.

  That means chances are a pretty good gas will get even cheaper soon. Just so you know: What we pay for gas now is about the same as in Chicago. In New York, they pay 20 cents a gallon more. In Texas, about 18 cents a gallon less.

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  • December 19, 2008 11:41 AM
  • Categories: Business/Economy, Transportation

• Car salesman says it's a great time to buy a car

  The freeze on consumer credit, and the general economic slump, have caused most people to flee from that new car smell. Falling demand is one reason that starting tomorrow, two of the major automakers, General Motors and Ford, are shutting down dozens of manufacturing plants for longer than the usual holiday break.

  Tawny Arnaud, vice president of sales at Galpin Ford, told KPCC that it may seem funny, but this is a great time to buy a car.

  Tawny Arnaud: “Actually, buying a car, whether it’s Chrysler product, GM, or Ford, right now, if people would turn around and buy those vehicles, we won’t have to be talking about a bankruptcy because we won’t have that bankruptcy.”

  Arnaud refuted claims that it’s hard for anyone but buyers with perfect credit to get financing for a car. His employer in Van Nuys is the country’s biggest Ford dealership.

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  • December 18, 2008 5:27 PM
  • Categories: Business/Economy, Transportation

• Boxer says green technology could create jobs

  The new Congress meets the first week of January, but U.S. Senator Barbara Boxer says global warming legislation will take a backseat to an economic stimulus package.

  Boxer heads the Senate’s Environment and Public Works Committee. She says she agrees with L.A. Democratic Congressman Henry Waxman, who chairs the House committee tasked with global warming legislation, that tackling “greenhouse gas” will strengthen the economy.

  Senator Barbara Boxer: “Henry Waxman and I see the world very much the same way in terms of mobilizing this nation to fight global warming, creating a lot of jobs in the process, making the country energy efficiency; leading to the development of technologies that we can export around the world will make us a great leader in this century.”

  In the short run, Senator Boxer says there is a “green” side to the proposed economic stimulus package, such as building new schools with solar rooftops.

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  • December 18, 2008 4:43 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Culver City councilman cautiously optimistic on economic stimulus

  This week, U.S. Senator Barbara Boxer promised Southern California cities that economic help was on its way from Washington. But she says a stimulus package now in the works won’t be passed for at least a month.

  Culver City Councilman Micheal O’Leary is cautiously optimistic.

  Councilman Micheal O’Leary: “As a new politician, I listen to politicians like the general public still. I’m skeptical till I see results. But I’m confident that I heard that there is concern at federal and state level for what’s happening at the local level. I will hold all full judgement till I see the results.”

  Councilman O’Leary says he believes cities are more responsible when it comes to dispensing federal funds than Washington, especially when the feds eliminate the red tape.

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  • December 18, 2008 4:35 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Greenhouse gas legislation must wait for economic stimulus

  On Capitol Hill, two committees likely to tackle global warming issues are headed by Californians. Barbara Boxer chairs the Environment and Public Works Committee on the Senate side. Henry Waxman will chair Energy and Commerce on the House side. KPCC’s Special Correspondent Kitty Felde spoke with Senator Boxer about legislation on global warming.

  Kitty Felde: If you were counting on the new Congress to immediately push for a cap-and-trade system on carbon, or to impose stricter rules on “greenhouse gas” emissions, you’ll be disappointed. Senator Barbara Boxer says Congress has a different priority.

  Senator Barbara Boxer: I think the very first thing we’re going to do is this economic recovery package. And in that package, there’ll be a lot of things that will lead us to reduce carbon. Such as … making buildings like this very energy efficient, putting solar rooftops on schools. Things like that are going to be the way we cut down on carbon. But the actual cap-and-trade legislation is going to wait just a little bit until we see what President-elect Obama wants.

  Felde: Senator Boxer says the president-elect has told her he wants to “think about” whether he wants a flexible cap-and-trade program, or a plan where Congress spells out all the details.

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  • December 18, 2008 3:55 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Los Angeles City Council cuts budget

  The Los Angeles City Council has approved a combination of cuts in city services and fee increases to address a $130 million budget deficit. City officials say plummeting tax revenues fueled by the bad economy prompted the move. KPCC’s Frank Stoltze has the story.

  Frank Stoltze: City Council President Eric Garcetti said most departments face a three percent cut in their budgets. The city will cut police and fire departments by one percent.

  Councilman Eric Garcetti: The pain is really spread pretty evenly. It’s in everything from a few less library books to trimming some hours at our parks and some of our maintenance, being able to hold off on the purchase of some of our police cars.

  Stoltze: The council also decided to pay for a $20 million legal settlement with a bond issue; to sell surplus city property; and to bump spay and neuter fees from $28 to $40 dollar per pet. Garcetti predicted bigger cuts in July.

  Garcetti: I think it’s very difficult to look at this coming year without facing layoffs in the city, or at least attrition, in which we don’t hire people after people retire.

  Stoltze: The city faces an estimated $400 million shortfall in the fiscal year that starts July 1.

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  • December 17, 2008 6:45 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Amid economic downturn, Getty Trust tightens belt, freezes hiring

  As freezing temperatures hit the region, the Getty Trust imposed a hiring freeze today. KPCC’s Cheryl Devall has more on the latest Southland arts organization to feel the economic chill.

  Cheryl Devall: The chief executive of the trust behind one of the world’s biggest arts endowments says stock market turbulence has significantly drained that pool of money.

  The value of the Getty Trust, estimated at almost $6 billion at the end of the last fiscal year, has declined by about 25 percent, James Wood told Getty staff in a memo. He said that means the operator of museums and research facilities in West Los Angeles and Malibu will have to significantly reduce its spending in the fiscal year ahead.

  More immediately, Getty facilities will have to stop hiring new employees, and promoting or raising the salaries of current staff, for the foreseeable future.

  The economic squeeze has prompted institutions including the Pacific Asia Museum in Pasadena and the Bowers Museum in Santa Ana to cut budgets, staff, and planned exhibitions. L.A.’s Museum of Contemporary Art is weighing a potential merger with the L.A. County Museum of Art for the same reasons.

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  • December 17, 2008 5:24 PM
  • Categories: Arts, Business/Economy

• As projects are put on hold, senator urges California lawmakers to balance budget

  U.S. Senator Barbara Boxer came to Culver City today to reassure local officials that “help is on the way.” A federal stimulus package that Congress is expected to pass early next year could provide money to build highways, schools, prisons, and other projects.

  But Boxer said the money isn’t coming right away. The California Democrat Boxer also had a message for Sacramento lawmakers: Get your “budget act together.” Now.

  Senator Barbara Boxer: “And I just call on every representative and every state senator to put the state first, regardless of your party or anything else; we are at that point where we have to set aside almost everything else to make sure that we save our state and that we keep our state whole.”

  About the same time Boxer was speaking, a board chaired by State Treasurer Bill Lockyer voted to cut off all state funding for those same projects until June. Lockyer says the state can’t sell bonds until its budget is balanced.

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  • December 17, 2008 5:08 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Kids make holiday cards and gifts due to bad economy

  Some kids in the Southland plan to get creative this Christmas - they’re making holiday cards and gifts.

  Ten-year-old Jacklyn Chavarri is a fifth grader at Plainview Elementary School in the San Fernando Valley. She says her mom is making arts and crafts a family project this year because she’s trying to save money.

  Jacklyn Chavarri: “Having to cut back on like buying a lot of stuff like ice cream, candies, a lot of toys, and not that much presents this year.”

  The last shopping weekend before Christmas is approaching. In a national phone survey released today, America’s Research Group found that consumers are extremely conservative with their money this Christmas. More people are spending less; they told researchers they’ll stay within their gift shopping budgets.

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  • December 17, 2008 4:29 PM
  • Categories: Business/Economy

• 5th grader expects fewer Christmas presents due to economy

  Many families are tightening their budgets this holiday season, and children are feeling the pinch.

  Ten-year-old Edith Salcido is a fifth grader at Plainview Elementary School in the San Fernando Valley. She says she’s expecting fewer presents under the Christmas tree this year, because her mom has other obligations.

  Edith Salcido: “She said that because she wants to send some money to her mom from Mexico. Yeah, she wants to make her money stretch.”

  It’s just eight days ‘til Christmas and the U.S. economy continues to spiral downward. Chrysler announced today it’s shutting down all its domestic vehicle production plants for a month starting Friday. That’s two weeks longer than the auto industry’s usual seasonal lull.

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  • December 17, 2008 3:44 PM
  • Categories: Business/Economy

• Cal State San Bernardino hosts summit on recession-related stress

  There are all kinds of special conferences and summits these days about the economic crisis. There’s another one tomorrow at Cal State San Bernardino. But this one’s different. KPCC’s Steven Cuevas says it’s all about the impact the bad economy is having on our mental health.

  Steven Cuevas: Record unemployment, empty food banks, home foreclosures, bankrupt businesses… who doesn’t have a little worry and a lot of stress?

  You might want to hear what mental health and financial experts have to say about coping with the recession stress. The idea came about last October, after a San Fernando Valley man killed five family members and himself over apparent financial worries.

  Cal State San Bernardino’s College of Social and Behavioral Sciences is hosting the free one-day summit. Anyone can attend. Several experts on the economy and mental health will be there, as well as a panel of public health and social service providers. The aim is to explore ways that all of us can fend off a mental health crisis to match our economic crisis.

  The free conference starts at 8:30 in the morning at Cal State San Bernardino. RSVPs are requested.

  LINK: Cal State San Bernardino - info on summit

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  • December 17, 2008 3:00 PM
  • Categories: Business/Economy, Health, Society/Culture

• Exxon Mobil to pay six million dollar settlement to EPA for refinery pollution

  Oil giant Exxon Mobil will pay $6 million in penalties to the federal Environmental Protection Agency. KPCC’s Molly Peterson reports that some of the air pollution happened at Exxon’s Torrance plant.

  Molly Peterson: The six million is a national total that covers violations of a settlement Exxon made with the EPA for refineries in California, Louisiana, and Texas.

  Three years ago, Exxon agreed to do a better job controlling sulfur pollution from its smokestacks. The company also agreed to shell out $13.5 million dollars under the original terms of the settlement.

  Exxon has paid almost $8 million in penalties, plus nearly $7 million more for environmental projects in neighborhoods near its refineries.

  Most of the present violations are for failing to monitor and control sulfur in some fuel gas streams. Sulfur dioxide can cause respiratory problems in surrounding communities. Exxon Mobil says it’s properly monitoring and controlling sulfur at its refineries in Torrance and other places.

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  • December 17, 2008 2:07 PM
  • Categories: Business/Economy, Criminal Justice, Environment, Health

• Strapped California puts infrastructure projects on hold; Boxer says new year should bring relief

  Finance officials in Sacramento today put road, rail, and bridge projects in California on hold. State Treasurer Bill Lockyer says without a state budget deal, he can’t sell bonds. KPCC’s Special Correspondent Kitty Felde says Senator Barbara Boxer added her voice to the chorus calling for a speedy budget agreement.

  Kitty Felde: Boxer says there will be federal money eventually to help with road and school construction. It’ll be part of an economic stimulus package Congress is expected to pass in the new year.

  But for the time being, she says it’s up to the state to get its house in order by balancing its budget. Senator Boxer said banks need to do their part to get projects back on track by lending again.

  Senator Barbara Boxer: There’s no reason, with the overnight rate almost at zero right now, and the fed getting ready to buy up treasuries so that they can pour more money in, why we can’t step up to the plate for a state like California where we voters have voted to pay back these bonds in the future.

  Felde: Boxer was in Culver City to deliver a statewide report on the recession’s effect on California. She cites a statewide unemployment rate of more than 8 percent, the highest in 14 years, as another reason to get California’s building projects back on track.

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  • December 17, 2008 2:01 PM
  • Categories: Business/Economy, Politics/Public Affairs, Transportation

• Ray Cortines talking with school unions about health benefit cuts

  The new head of L.A.’s public schools says that because of the state’s budget mess, he expects that he’ll have to make $200 to $400 million in mid-year cuts to the LAUSD budget.

  Incoming Superintendent Ramon Cortines told KPCC’s “AirTalk” that he’s already working on where to find the cuts, and that one area he’s looking into is the district’s union contracts.

  Ramon Cortines: “We are negotiating with all of our unions on health care, and together the unions and the district understand the perilous financial future both here and in the state, and are trying to hammer out a program that protects all of our present employees and looks at new employees that come on board.”

  Cortines was senior deputy superintendent until the school board bought out the contract of outgoing Superintendent David Brewer last week.

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  • December 17, 2008 1:46 PM
  • Categories: Business/Economy, Education, Health

• Ramon Cortines anticipates mid-year budget cuts for LAUSD

  The newly-appointed superintendent of L.A.’s public schools officially starts work on New Year’s Day, but Ramon Cortines says he’s not waiting until then to start dealing with massive budget cuts.

  Cortines expects $200 to $400 million in mid-year cuts, and another $700 million in reductions over the next two years. He told KPCC’s “AirTalk” that he’ll be working closely with the LAUSD Board.

  Ramon Cortines: “One of the things I will be doing after the first of the year is bringing to the board options for the mid-year cuts, and we will work up until Christmastime on ideas to help the board in making the best decision possible, even though it’s going to be a difficult decision.”

  Cortines said he’s talking to the unions representing teachers and other school workers about possible cuts in health care benefits for new employees.

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  • December 17, 2008 1:29 PM
  • Categories: Business/Economy, Education

• SAG holds strike authorization town hall meeting

  The Screen Actors Guild – or SAG – is convening a town hall style meeting tonight in Hollywood to inform members about the upcoming strike authorization vote. KPCC’s Brian Watt says there’ll probably be some tension in the room.

  Brian Watt: There was certainly more than tension when the Guild held a similar meeting two days ago in New York. Members there took the union’s Hollywood leaders to task for the way they’ve handled contract talks with film and TV producers.

  A few days earlier, the Guild’s New York board had called for replacing SAG’s negotiating team and stopping plans to hold a strike authorization vote next month.

  But the Guild’s national president Alan Rosenberg still wants to hold the vote – and to tell the rank and file why they need to authorize a strike. He’ll need a “yes” from 75 percent of the voters, and he’s got support from stars including Mel Gibson and Martin Sheen. One-thousand more actors have signed a solidarity statement on the SAG Web site.

  But two former SAG presidents and more than 130 A-list actors – from Morgan Freeman to Glenn Close – signed another letter urging a “no” vote. Rhea Pearlman and Danny DeVito wrote the letter, and now it’s on a Web site where the number of endorsers topped 700 this morning.

  Link: Screen Actors Guild (SAG)
  Link: No SAG Strike

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  • December 17, 2008 1:10 PM
  • Categories: Arts, Business/Economy

• Auto writer appraises the upcoming electric Mini Cooper car

  When it comes to electric cars, BMW is trying to move to the head of the pack. It’s produced an all-electric Mini Cooper, called the Mini E. The company has people testing 500 Mini Es in L.A. and New York.

  David Booth writes about the car industry for the Canadian National Post. He told KPCC he likes the Mini E.

  David Booth: “I believe it’s got 204 horse power, it actually feels like much more, they claim about 8-and-a-half seconds, 0 to 60. But it, again, it feels like it’s quicker than that. You know, it’s a little heavy because it’s carrying around all those batteries, and there’s no rear seat right now of course, because that’s where the batteries go. But it performs all right; sure it does, absolutely.”

  BMW says that in ideal conditions, the two-seater Mini E can go 150 miles without a charge. While American car companies have been working on electric cars for years, BMW took the Mini E from concept to road test in only ten months.

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  • December 16, 2008 6:02 PM
  • Categories: Business/Economy, Transportation

• Expert says industry manipulated light cigarette tests

  The cigarette industry is bracing itself for a wave of new lawsuits after Monday’s Supreme Court ruling on so-called “light” cigarettes. The Court ruled that cigarette makers could be sued for allegedly deceptive advertising.

  Dr. Stanton Glantz teaches medicine at UC San Francisco’s Center for Tobacco Control. He told KPCC that the industry manipulated tests with smoking machines by punching tiny holes in the “light” cigarettes.

  Dr. Stanton Glantz: “So that when the machines sucked air through the cigarette it would get diluted with room air, and so the amount of tar and nicotine that was delivered to the machines was reduced, knowing full well that when actual human smokers put the cigarettes in their mouths, they covered up these microscopic holes with their lips, and so got much higher actual doses of tar and nicotine.”

  A lawyer for Altria, which owns Phillip Morris, issued a statement saying the company believes it will be able to successfully defend itself against the anticipated lawsuits.

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  • December 16, 2008 4:16 PM
  • Categories: Business/Economy, Criminal Justice, Health

• LACMA offers financially troubled MOCA assistance

  As the board of Los Angeles’ Museum of Contemporary Art met to discuss that institution’s financial future, the L.A. County Museum of Art has offered a lifeline. More on the story from KPCC’s Cheryl Devall.

  Cheryl Devall: A persistent budget gap has jeopardized one of the world’s most-acclaimed modern art museums. Artists, patrons and art scholars, and administrators have rallied to help keep open the Museum of Contemporary Art.

  Along with online petitions, rumors circulated that L.A.’s larger, public art museum would step in to help the smaller private one. The grapevine turned out to be right. The nonprofit that manages the L.A. County Museum of Art presented MOCA’s board with a governance plan that would incorporate members of both boards under LACMA’s management.

  The proposal also would encourage both museums’ collections to share space in the buildings they operate in the mid-Wilshire area and downtown L.A. This plan would not involve financial support from Los Angeles County, LACMA officials said in a statement.

  Note: There’s no guarantee that the contemporary art museum’s officials will approve the plan, despite the county museum’s assurance that it’s intended to preserve the independence and integrity of both institutions.

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  • December 16, 2008 4:14 PM
  • Categories: Arts, Business/Economy

• Jewish charities didn't know they were investing with Madoff

  A number of Jewish charitable groups in Southern California are reeling from the alleged financial scam perpetrated by Bernard Madoff. At least one family foundation has reportedly closed, and a foundation that invests for local charities and individuals says it has lost $18 million. Rob Eshman is editor-in-chief of the Jewish Journal. He says this is by far the biggest story of the year for the Jewish community.

  Rob Eshman: “It’s not clear that many of these organizations even knew that they were investing directly with Madoff. Madoff used something like a system of rainmakers, guys who would come and collect money or bundle money and invest it in his company, Bernard Madoff Investment Securities.”

  Eshman spoke on KPCC’s “AirTalk.” The Jewish Federation of Greater L.A. says it has lost more than $6 million. Other victims of Madoff’s alleged fraud include Hollywood executive Jeffrey Katzenberg, and a charity founded by Steven Spielberg.

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  • December 16, 2008 3:28 PM
  • Categories: Business/Economy

• Madoff scandal hurts Jewish charities

  The massive fraud allegedly perpetrated by Wall Street financier Bernard Madoff has hit Southern California Jewish charities especially hard. Some groups have lost millions of dollars, and at least one family foundation has reportedly shut down. Rob Eshman is the editor-in-chief of L.A.’s Jewish Journal.

  Rob Eshman: “I did talk to a major philanthropist yesterday, who said that as far as he’s concerned, the community’s going to have to cut back its priorities to really just what it was when Jews first came to L.A. in the 1850s, which is feeding the poor, feeding and clothing the poor and the hungry, and just start from there again and really make sure basic needs are met before we go into the things like education and other things that are so important, and that the Jewish community has been so successful in supporting.”

  Eshman spoke on KPCC’s “AirTalk.” The Jewish Federation of Greater L.A. says it lost more than $6 million in the scam. Other victims include Hollywood executive Jeffrey Katzenberg, and Steven Spielberg’s Wunderkinder Foundation.

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  • December 16, 2008 3:14 PM
  • Categories: Business/Economy

• Homes sales up in LA County

  Bargains and bargain hunters are keeping the housing market alive in the Southland. KPCC’s Patricia Nazario has the latest numbers.

  Patricia Nazario:Home sales across Southern California were up last month, largely because prices are down in the six-county region.

  In L.A., about 5,000 homes sold. That’s almost a 15 percent jump compared to November a year ago.

  Low prices spurred a similar trend in Orange County, but those realtors made twice as many deals over the same time last year.

  Real estate research firm DataQuick in La Jolla calculated the numbers. That company has made a name for itself tracking property deals in L.A., Riverside, San Diego, Ventura, San Bernardino, and Orange counties.

  Its regional report shows that nearly 20,000 homes sold last month. The median selling price was $285,000. It was 435,000 in November of last year. That means this season’s buyers picked up properties at a 35 percent discount.

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  • December 16, 2008 2:53 PM
  • Categories: Business/Economy

• New survey says people less likely to buy foreclosures

  A new survey from real estate tracking firms Trulia.com and RealtyTrac finds that potential home buyers are less likely to buy a foreclosed property now then they were six months ago. The survey says that fewer than half the adults in this country would consider buying a foreclosed house, even if it was in good shape.

  Rick Sharga of RealtyTrac says that worry over hidden costs and declining home value are driving the apparent “foreclosure phobia.”

  Rick Sharga: “And one of the questions we had looking at the survey results is whether or not the fears that people are expressing in terms of buying a foreclosure, like if the property would hold its value over time, we’re wondering if that’s not endemic to the overall real estate market – and one of the things that’s keeping sales at a lower than normal average.”

  Potential homebuyers also want to pay a lot less for foreclosed properties - as much as half what they’d fork out for a non-foreclosed house of equal size. The average foreclosure discount rate in Southern California is closer to 30 percent.

  Consumers’ aversion to foreclosed properties could make it harder for Southland municipalities that hope to buy, fix, and sell distressed houses under the federal Neighborhood Stabilization Program. The government plans to distribute money from that program starting next month.

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  • December 16, 2008 1:05 PM
  • Categories: Business/Economy

• KB Toys going out of business, more retailers could go under

  More tough times may lie ahead for the retail industry. KB Toys announced last week it was going out of business. Eleven-thousand people in that company expect to lose their jobs.

  KPCC Business Analyst Mark Lacter predicted that more retailers could go under in the months ahead.

  Mark Lacter: “Consumers need to feel more comfortable about spending money and we’re probably a good year away from that happening. The most recent UCLA economic forecast doesn’t have taxable sales picking up until 2010 and that’s way too long for a number of other chains that are on the edge.”

  During October, Lacter said, 15,000 people in the retail business lost their jobs in California. That’s usually when stores are hiring for the holidays.

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  • December 16, 2008 10:47 AM
  • Categories: Business/Economy

• MOCA trustees meet to approve action plan to keep MOCA open

  The trustees of the Museum of Contemporary Art Los Angeles meet today to seek a solution to the worst financial crisis in the museum’s 29-year history. KPCC’s Adolfo Guzman-Lopez has the story.

  Adolfo Guzman-Lopez: The slow economy isn’t the only reason MOCA’s in a financial hole. For years the museum tapped into its endowment - and didn’t replenish the money - so it could pay for day- to-day operations. Earlier this year, auditors warned MOCA administrators about that practice.

  Museum officials say they’re closing a satellite gallery in L.A.’s Little Tokyo next month. They also say they’re likely to run out of money next year to keep open the main venue in downtown L.A. and another space in West Hollywood.

  Trustees discussed their options at a meeting a month ago. A spokeswoman would not disclose the agenda for today’s meeting. Observers expect trustees to approve an action plan to keep MOCA open. Many of the private institution’s supporters oppose a proposal to merge it with the much larger and financially healthier L.A. County Museum of Art.

  L.A. philanthropist Eli Broad has promised MOCA $30 million in rescue money if other donors can match a portion of that amount.

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  • December 16, 2008 10:31 AM
  • Categories: Arts, Business/Economy

• Volunteer talks about volunteering at East LA church

  For some people, volunteering during the holidays is as much a tradition as Christmas trees and menorahs. Jane Argento of Pasadena is a longtime supporter of Dolores Mission Church in East Los Angeles. She’s paid particular attention this year to the Catholic parish’s program that matches willing shoppers with needy families’ wish lists.

  Jane Argento: “About three years ago, I picked up a pink bicycle that was one little girl’s wish. And when I delivered it with some staff people from Dolores Mission to this one-room apartment where a mother lived with three of her children – a little kitchen. A bathroom. That was it. Mother just stood there, she’d just come home from work, and tears running down her cheeks.”

  Argento said the level of poverty 20 minutes away from her two-story Pasadena home staggered her. She said she keeps returning to the Dolores Mission neighborhood because its families have become her friends and teachers.

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  • December 16, 2008 10:04 AM
  • Categories: Business/Economy

• Madoff investment fraud hurts Southland charitable organizations

  Two Southland charitable organizations have confirmed that alleged fraud by a New York-based investment advisor probably hurt their finances. More on the story from KPCC’s Cheryl Devall.

  Cheryl Devall: Individual and institutional investors entrusted Bernard Madoff with their retirement funds and philanthropic endowments because he delivered consistent returns. Last week, federal agents arrested Madoff in connection with an investigation into his firm’s loss of at least $50 billion, possibly more.

  One organization that expressed shock and outrage over that development is the Jewish Community Foundation of Los Angeles - the area’s largest charitable gift asset manager for Jewish philanthropists. In a statement, foundation officials said they’d invested less than five percent of its assets in the Madoff firm. They said they expect the foundation to remain stable and to meet its present and future commitments.

  The private philanthropic fund of director Steven Spielberg confirmed that it had invested 70 percent of its dividend and interest income with Madoff. A spokesman for that charity, the Wunderkinder Foundation, declined comment beyond admitting some financial loss.

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  • December 15, 2008 4:54 PM
  • Categories: Business/Economy, Criminal Justice

• New York SAG actor: Producers' offer doesn't necessitate a strike

  There reportedly is a rift within the Screen Actors Guild over next month’s planned strike authorization vote. New York leaders of SAG want the union to call off the vote. They contend that it’s irresponsible in the current economic climate.

  SAG has argued that the studios’ offer doesn’t meet its demands on residual payments, particularly in the area of new media. Former SAG president and New York board member Richard Masur told KPCC’s Larry Mantle he doesn’t buy that argument.

  Richard Masur: “What’s in this current proposal is increases in every single across the board, virtually every single area of residuals, either direct increases or increases by virtue of the fact that minimums are increasing. The only place that there is an issue about residuals is in made-for-new-media products; made under a certain budget level that is not ad supported.”

  Masur made clear that he was speaking for himself, not for the organization.

  SAG president Alan Rosenberg has criticized the New York board’s action. He called it “extraordinarily destructive and subversive.” He’s called an emergency national board meeting Friday in Hollywood.

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  • December 15, 2008 1:14 PM
  • Categories: Arts, Business/Economy

• Producers run ad vs. SAG in trades; SAG deals with inner conflict

  The Alliance of Motion Picture and TV Producers has placed an ad in Hollywood’s trade papers today. It takes aim at claims made by Screen Actors Guild President Alan Rosenberg about the producers’ final contract offer. KPCC’s Brian Watt has this update.

  Brian Watt: Since the beginning of the contract drama between the Guild and the producers alliance, the issue of residuals for work streamed or downloaded on the Internet has been the star. In the producers’ ad today, it gets top billing once again.

  What the producers call Alan Rosenberg’s “rhetoric” – that their contract offer is the beginning of the end of residuals” – occupies one side of the ad.

  On the other side, bullet points aim to debunk that rhetoric. The producers say they’re increasing the residual rate for permanent downloads, and offering the first-ever residuals for films and TV shows streamed on the Web.

  In a statement, SAG calls the entire ad “great fiction,” and goes on to refute the producers’ bullet points.

  SAG has its own internal conflict to resolve. Late last week, leaders of the Guild’s New York branch called on the union to stop plans for the strike authorization vote scheduled for next month, and to replace SAG’s negotiating committee.

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  • December 15, 2008 1:05 PM
  • Categories: Arts, Business/Economy

• Los Angeles looks at major budget cuts

  A Los Angeles City Council committee Monday will begin looking at how to reduce a $90 million budget deficit. The mayor wants cuts in place in two weeks. KPCC’s Frank Stoltze has more.

  Frank Stoltze: To address the deficit, Mayor Villaraigosa has proposed raising the fee to spay or neuter pets from $28 to $40, delaying the city’s plan to install left turn arrows, and selling “under-used” fire stations and libraries.

  The mayor also wants to issue a $20 million bond to pay for major lawsuit settlements. That could cover a possible settlement with hundreds of immigrant rights marchers who fell under the batons of LAPD riot police in MacArthur Park last year.

  Villaraigosa says the budget deficit grew $30 million in the past three weeks alone, mainly because of plummeting property and sales tax collections. The city’s overall budget is $7.1 billion. The L.A. city budget could face a $400 million deficit in the next fiscal year, which starts July 1.

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  • December 12, 2008 5:48 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Shelters, missions overwhelmed by homeless demand

  Los Angeles County’s homeless authority says on any given night 73,000 people are sleeping on the street. More than 10,000 are children or teens.

  And it’s getting worse thanks to the slowing economy and big job losses. Union Rescue Mission President Andy Bales says the number of people visiting his shelters is up three fold over this time last year. He says it reminds him of the 1930s.

  Andy Bales: “During the depression, the Union Rescue Mission provided 42 percent of the meals that were provided to the city of L.A. and somehow made it through. We’re trying to live up to heritage.”

  Bales says it’s not easy. Demand for his nonprofit’s winter shelters is up sharply, while cash and food donations are shrinking.

  The Union Rescue Mission provides shelter for about 1,500 families during the winter months. Bales says so many people need help that he’s considering opening the mission’s chapel to house another 50 families.

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  • December 12, 2008 5:17 PM
  • Categories: Business/Economy, Society/Culture

• Senate leader Steinberg promises swift action toward balanced budget

  Democratic State Senator Darrell Steinberg is the new president pro tem of the state Senate. He wants to work on health care, energy, and water issues, but he’ll find it hard to do much of anything until he helps broker a deal to balance the state budget. Steinberg promises to keep the pressure on lawmakers to reach an agreement soon.

  Senator Darrell Steinberg: “Our goal here, and in fact our commitment, is by the end of December, even if it means working through the holidays, which I hope isn’t the case, that we will take a $17- to $18-billion chunk out of this problem.”

  Steinberg spoke on KPCC’s “AirTalk.”

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  • December 12, 2008 1:50 PM
  • Categories: Business/Economy, Politics/Public Affairs

• CA Senate President Pro Tem lays out policy goals for health care, renewable energy, water

  The new president pro tem of the state Senate spoke on KPCC’s “AirTalk” today. Sacramento Democrat Darrell Steinberg said that besides dealing with the gaping budget deficit, he has other policy goals.

  Senator Darrell Steinberg: “First of all, I think we need to get children’s health care done in California within the first 120 days. Secondly, renewable energy. This is of course an issue which is not only crucial to meeting our climate change goals in California but it’s also, I think, the new economy.”

  Steinberg said he also wants to increase water availability. He hopes to get a water infrastructure bond on the ballot in 2010.

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  • December 12, 2008 1:44 PM
  • Categories: Business/Economy, Environment, Health, Politics/Public Affairs

• California to adopt new, stricter air pollution rules for trucks and buses

  California is expected today to adopt what would be the country’s most comprehensive rule to get the dirtiest trucks and buses off the road, starting in 2010. KPCC’s Steve Julian says trucking firms are vehemently opposed.

  Steve Julian: California has the dirtiest air in the nation, so the goal is to get rid of the vehicles that cause that pollution.

  But the California Trucking Association maintains that, in a recession, it’s unfair to force them to replace their vehicles, or outfit them with pollution filters or new engines. The cost to businesses, school districts, and transit agencies statewide is estimated at $5.5 billion.

  Air regulators, however, say the cost would be spread over 16 years. They add that the cost is dwarfed by the tens of billions in health benefits to people who incur asthma and suffer heart attacks from breathing dirty air. The State Air Resources Board says the requirements would prevent 9400 premature deaths over 20 years.

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  • December 12, 2008 1:19 PM
  • Categories: Business/Economy, Environment, Health, Politics/Public Affairs

• Anderson forecaster says some California regions will feel more recession pain

  Economists with UCLA’s Anderson Forecast confirmed today that the country’s in a recession, and that California’s along for one rough ride. But some parts of the Golden State will feel more economic pain than others.

  Senior economist Jerry Nickelsburg says the Inland Empire, for example, will feel a “triple whammy” in the year ahead.

  Jerry Nickelsburg: “It has a very large logistics industry, which serves imports for all of the United States – that’s down. Large retail sector – that’s down. Large residential construction sector, and that’s down. So the Inland Empire, you know, is going to be a region that is hurting.”

  Nickelsburg says Orange County will suffer from declines in the mortgage finance industry and in tourism. But he says the recession won’t sock Los Angeles County, San Francisco, and Silicon Valley as hard.

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  • December 11, 2008 4:07 PM
  • Categories: Business/Economy

• UCLA economist looks at how national recession will affect California

  A nasty national recession means California’s economy is in for a rough ride during the year ahead. That’s the analysis from UCLA’s Anderson forecast today. Senior economist Jerry Nickelsburg considered what the Golden State might take away from the country’s economic table next year.

  Jerry Nickelsburg: “We’re looking at employment declining by about a percent and a half. We’re looking at income declining. And personal income in California rarely declines in a recession. But it does happen about half the time in the deeper recession, and it will happen this time. So 2009 is going to be sort of a tough road to hoe for us.”

  Nickelsburg added that California’s messy state budget crisis won’t help matters.

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  • December 11, 2008 3:53 PM
  • Categories: Business/Economy

• USC Medical Center nurse comments on hospital inequity

  South Los Angeles public health professionals and advocates are using a Health Equity Scorecard to measure the resources in their area against those on L.A.’s Westside. The non-profit Community Health Councils released the yearlong study today and hosted a panel about it.

  L.A. County USC Medical Center nurse Robin Ellis attended the meeting at Holman United Methodist Church. She says the report describes what she sees every day.

  Robin Ellis: “I went to visit a friend in Glendale Memorial the other night. There were two people in the emergency room there. At work the previous day, I’m working in the psychiatric emergency room. In the waiting room, in the ER, we have 200-plus.”

  Ellis says the difference is that patients at County USC’s waiting room didn’t have medical insurance. County USC and Glendale Memorial Hospitals are about 10 minutes apart.

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  • December 11, 2008 3:41 PM
  • Categories: Business/Economy, Health

• Community Health Council compares inequities in South LA

  A discussion of health disparities between South L.A. and the city’s Westside animated a panel this morning that included Los Angeles County Supervisor Mark Ridley-Thomas.

  His plan to close the gap focuses on the reopening of Martin Luther King Medical Center as a full-service hospital. Ridley-Thomas said his goal includes a public-private partnership.

  Mark Ridley-Thomas: “It will drive the quality of health care, the extent of the technology that’ll be in place, as well as the innovation that’ll do things that could very easily be cutting edge.”

  About 100 people attended the talk at Holman United Methodist Church. Ridley-Thomas cautioned them against expecting a quick fix. He said they should expect incremental changes over the next few years.

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  • December 11, 2008 3:37 PM
  • Categories: Business/Economy, Health

• Senior NPR VP says show cancelations won't change quality of reporting

  The economic crisis that’s affected all kinds of companies has spread to National Public Radio. A $22 million budget deficit has prompted the network to cancel two daily programs, including “Day to Day” heard weekdays on KPCC.

  Ellen Weiss, Senior Vice President for News at NPR told KPCC’s “AirTalk” that staff cuts at the network’s production facility in Culver City will not change the quality of its reporting and storytelling.

  Ellen Weiss: “The fact that we have to make an economic decision about two programs does not mean that we’re lessening our commitment to the west, to the region, to California.

  “And part of what we have to do is both working with our member stations and looking internally and ask ourselves, what will be the new definition of NPR West’s role in addition to being a place where excellent journalism takes place and Morning Edition is co-hosted out of.”

  NPR is eliminating 64 positions in various departments, for a seven percent reduction in staff. It’s the network’s largest layoff in a quarter-century. “Day to Day” and another program based at NPR West, “News and Notes,” will cease production in March.

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  • December 11, 2008 2:17 PM
  • Categories: Business/Economy

• Air regulators meet to talk about reducing global warming, disel truck air pollution

  State air regulators meeting in Sacramento today will be talking about cutting global warming - and cutting air pollution from diesel trucks. KPCC’s Molly Peterson reports.

  Molly Peterson: The California Air Resources Board released a study this week that the longer truck drivers are behind the wheel, the greater their risk of lung cancer. Air regulators say tightening rules about how much diesel trucks can spew would save the state billions of dollars in health care costs, not to mention thousands of lives.

  The proposed rule would install particle traps on trucks’ exhaust pipes in the first years, then phase in tougher controls over 15 years. But truckers say they’re feeling financial pain over this proposal. Even small retrofits can cost upwards of $10,000 a pop, and clean trucks - the kind the state will eventually require – cost up to $200,000.

  Air regulators say California needs to control pollution from diesel engines so it can meet federal air standards - and protect federal highway money. But lobbyists for the trucking industry are vowing to fill the air board’s airtime with plenty of public comments against the proposed rules.

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  • December 11, 2008 1:25 PM
  • Categories: Business/Economy, Environment, Transportation

• UCLA's Anderson Forecast says this is no typical recession

  The economists of UCLA’s Anderson Forecast weigh in today on the financial crisis in the country and in California. KPCC’s Brian Watt reports.

  Brian Watt: This is no ordinary recession - the UCLA economists say it’s a “nasty” one. Forecast director Edward Leamer says that past recessions have looked on a chart like the letter “V.”

  Ed Leamer: In the first stroke of the “V”, you lose a couple of million jobs, 3 million jobs - mostly manufacturing jobs. In the second stroke of the V, you get them back.

  Watt: This go-round, says Leamer, most of the job losses aren’t in manufacturing, but in retail, restaurants, and temporary business services. So while most economists agree the recession started almost a year ago, the economy still hasn’t reached the bottom of the “V.”

  Leamer: Right now, the economy is being driven by fear on the part of both investors and consumers. And it’s very hard to predict when that fear is going to dissipate.

  Watt: The forecast calls for the country’s unemployment rate to rise from 6.5 percent two months ago to 8.5 percent late next year.

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  • December 11, 2008 11:52 AM
  • Categories: Business/Economy

• California air regulators consider new rules to limit truck pollution

  State air regulators meeting in Sacramento today will be talking about cutting global warming and cutting air pollution from diesel trucks. KPCC’s Molly Peterson reports.

  Molly Peterson: The California Air Resources Board released a study this week that said that the longer truck drivers are behind the wheel, the greater their risk of lung cancer.

  Air regulators say tightening rules about how much diesel trucks can spew would save the state billions of dollars in health care costs, not to mention thousands of lives.

  The proposed rule would install particle traps on trucks’ exhaust pipes in the first years, then phase in tougher controls over 15 years. But truckers say they’re feeling financial pain over this proposal. Even small retrofits can cost upwards of $10,000 a pop, and clean trucks, the kind the state will eventually require, cost up to $200,000.

  Air regulators say California needs to control pollution from diesel engines so it can meet federal air standards and protect federal highway money. But lobbyists for the trucking industry are vowing to fill the air board’s air time with plenty of public comments against the proposed rules.

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  • December 10, 2008 8:05 PM
  • Categories: Business/Economy, Environment, Health, Politics/Public Affairs

• City of Norco gives $1 million lifeline to a pair of struggling auto dealers

  As Washington lawmakers debate a multi-billion dollar bailout for Detroit automakers, the Riverside County city of Norco has signed off on a lifeline of its own for a pair of struggling car dealers. KPCC’s Steven Cuevas has details on the deal.

  Steven Cuevas: Whatever you do, don’t call it a bailout.

  Jeff Allred: Right, it’s a temporary line of credit for the remainder of this fiscal year, which ends June 30.

  Cuevas: Jeff Allred is Norco’s city manager. He says Norco Mazda and Frahm Dodge each got a half-million dollar line of credit to offset slack sales. The money will cover the dealers’ basic operating costs until the credit market thaws and car sales pick up. In a small city like Norco, with annual sales tax income of only about $5 million, these modestly-sized car dealerships are simply too big to fail. City manager Jeff Allred.

  Allred: The auto dealers in Norco provide up to 40 percent of our sales tax revenues. So this should be viewed as an investment, using redevelopment money to protect general fund revenues. Norco is dependent on revenues from auto dealers to provide services like police, fire, park maintenance, trail maintenance.

  Cuevas: It’s not the first time Norco has extended lines of credit to auto dealers. But the other times were for a lot less, and the money was typically invested signs and lighting. Now, all those bricks and all that mortar are the collateral the Norco will use to secure the million-dollar lifeline.

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  • December 10, 2008 5:21 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Norco gives $1 million lifeline to a pair of struggling auto dealers

  As Washington lawmakers debate a multi-billion dollar bailout for Detroit automakers, the Riverside County city of Norco has signed off on a lifeline of its own for a pair of struggling car dealers. KPCC’s Steven Cuevas has details on the deal.

  Steven Cuevas: Whatever you do, don’t call it a bailout.

  Jeff Allred: Right, it’s a temporary line of credit for the remainder of this fiscal year, which ends June 30th.

  Cuevas: Jeff Allred is Norco’s city manager. He says Norco Mazda and Frahm Dodge each got a half-million dollar line of credit to offset slack sales. The money will cover the dealers’ basic operating costs until the credit market thaws and car sales pick up.

  In a small city like Norco – with annual sales tax income of only about $5 million – these modestly-sized car dealerships are simply too big to fail. City manager Jeff Allred:

  Allred: The auto dealers in Norco provide up to 40 percent of our sales tax revenues. So this should be viewed as an investment, using redevelopment money to protect general fund revenues. Norco is dependent on revenues from auto dealers to provide services like police, fire, park maintenance, trail maintenance.

  Cuevas: It’s not the first time Norco has extended lines of credit to auto dealers. But the other times were for a lot less - and the money was typically invested in signs and lighting. Now, all those bricks and all that mortar are the collateral the Norco will use to secure the million-dollar lifeline.

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  • December 10, 2008 4:14 PM
  • Categories: Business/Economy

• LA Times Publisher says Tribune bankruptcy won't disrupt operations

  The publisher of the Los Angeles Times spoke with KPCC’s “Patt Morrison” today about the bankruptcy of the Tribune Company, which owns the Times. The Times has laid off dozens of staffers in recent months, but Publisher Eddy Hartenstein said the bankruptcy won’t lead to more cuts.

  Eddy Hartenstein: “This is really not affecting operations in the least. None of our readers, none of our advertisers are seeing any change day-to-day. It is all about restructuring the debt at the Tribune company level.”

  In addition to the Times, the Tribune Company owns the Chicago Tribune, the Baltimore Sun, and other papers.

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  • December 10, 2008 4:03 PM
  • Categories: Business/Economy

• GOP strategist says Schwarzenegger out of touch with his own party

  The struggle over the state budget got even more complicated today. Governor Schwarzenegger said the deficit has now grown to nearly $15 billion. Schwarzenegger’s budget plans have so far been stymied by the members of his own party in the legislature. GOP strategist Arnold Steinberg says the governor needs to overcome his differences with his fellow Republicans.

  Arnold Steinberg: “Ultimately the chief executive bears responsibility for bringing his own party to the table. But this is a governor who actually once joked that he can’t remember the first names of some of the legislature and they have to wear name tags, but it’s not just a petty matter of lack of personal rapport, he simply hasn’t addressed some of their philosophical or ideological concerns.”

  Steinberg spoke with KPCC’s “Patt Morrison.” Schwarzenegger says he wants to meet with Republican and Democratic leaders tomorrow to discuss the budget mess.

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  • December 10, 2008 3:55 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Democratic strategist says GOP upping the ante in budget fight

  Governor Arnold Schwarzenegger said today that the state’s budget deficit has ballooned by another three-and-a-half billion dollars, to nearly $15 billion. State lawmakers continue to bicker over how to balance the budget.

  Republicans are sticking to their opposition to new taxes. They want spending cuts and limits, and they want to relax environmental and labor laws to stimulate business. That has Democratic consultant Bill Carrick worried.

  Bill Carrick: “They have upped the ante beyond anything we have ever, you know, debated in these impasses before. So, it’s going to be very difficult. I have a lot of difficulty seeing what the end game is for anybody in this, the governor, the Democrats, or the Republicans. It’s just hard to figure out where this is going. It’s in uncharted territory”.

  Carrick spoke with KPCC’s “Patt Morrison.” Governor Schwarzenegger wants to meet with the legislative leaders of both parties tomorrow.

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  • December 10, 2008 3:48 PM
  • Categories: Business/Economy, Politics/Public Affairs

• SAG chief negotiator says strike authorization doesn't mean union will strike

  The Screen Actors Guild plans to send out strike authorization ballots on January 2nd. More than 100,000 SAG members will receive ballots. Three quarters of those who cast ballots would need to vote yes in order to authorize a strike.

  But SAG’s chief negotiator Doug Allen told KPCC’s Larry Mantle that even if that happens, it doesn’t mean the union will strike.

  Doug Allen: “A vote yes is not a decision to strike - it’s a decision to empower the national board to make that decision. And I would certainly anticipate that we would take a strong ‘yes’ vote by our members back to the bargaining table to use that, get an agreement if we could.”

  The group representing film and television producers has claimed that SAG’s unwilling to accept a deal like those the Writers Guild and other unions have agreed to. Allen says that deal doesn’t address the issues that are important to his membership.

  Allen says the biggest issue of dispute right now involves residuals for programming created for new media platforms.

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  • December 10, 2008 12:45 PM
  • Categories: Arts, Business/Economy

• SAG negotiator says strike authorization vote is negotiating tool

  The Screen Actors Guild will send strike authorization ballots to its members on January 2nd. SAG says it will count the votes on January 23rd.

  Even if the rank file authorizes a strike, it doesn’t mean the union will call one. SAG’s chief negotiator Doug Allen told KPCC’s Larry Mantle that the vote is a negotiating tool.

  Doug Allen: “There is the misconception on the part of management that we’re not capable of doing this and I hope that when we demonstrate that we are that it will help us move the bargaining process forward and get an agreement.”

  Three-quarters of voting members would need to vote yes to authorize a strike.

  SAG is holding town-hall style meetings to answer members’ questions. The next Southern California meeting will be a week from today at the Hollywood Renaissance Hotel.

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  • December 10, 2008 12:35 PM
  • Categories: Arts, Business/Economy

• San Bernardino County hosts workshop series to aid small businesses

  Struggling Inland Empire entrepreneurs are getting a helping hand through a series of business survival workshops in San Bernardino County. The first happened today in Colton.

  Vincent McCoy heads the non-profit Inland Empire Small Business Development Center. It offers guidance on how to get a business loan in lean times.

  Vincent McCoy: “If you’re going to a bank for a loan, you will need a business plan, solid financial projection, data that supports your loan application. We work with you on that application and make a better presentation to that lender. The second thing we can help you do is help identify the right lender. Some lenders don’t do restaurants. Some don’t do construction. So you want to go to the right lender, as opposed to any lender.”

  McCoy’s firm also helps business owners dissolve their businesses or find a new buyer. Future workshops will also offer free business plan analysis, as well as guidance on how to take advantage of tax rebates and government loans.

  LINK: San Bernardino County

  LINK: Inland Empire Small Business Development Center

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  • December 9, 2008 6:25 PM
  • Categories: Business/Economy

• OC economists predict we're near bottom of recession

  Economists at Chapman University predict there’s nowhere to go but up after the end of this year. They released their annual economic forecast this afternoon in Costa Mesa.

  Chapman economist Esmael Adibi predicts the first half of next year will be weak in gross domestic product growth and job creation. He expects things to pick up slowly after that.

  Esmael Adibi: “We are counting quite a bit on Mr. Obama’s stimulus package. In fact, we’re assuming that the package that is going to eventually come through is going to be roughly about $500 billion.

  “That’s the minimum. It could be even bigger than that. And by the time that spending takes place, that’s going to be third and fourth quarter. And that’s going to give some life to the economy.”

  Adibi says if President-elect Barack Obama doesn’t get an economic stimulus package done, we’ll have serious problems.

  On a more optimistic note, he adds that since California was one of the first states to enter recession, it’ll likely be one of the first out.

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  • December 9, 2008 3:09 PM
  • Categories: Business/Economy

• OC economists say worst may be close to over

  The worst may almost be over. Chapman University’s annual economic forecast suggests that may be the case. KPCC’s Susan Valot says economists released their forecast in Costa Mesa today.

  Susan Valot: Chapman University economist Esmael Adibi predicts this quarter will be the bottom of the recession. He says we’ll lose more jobs nationwide during the first half of next year. But after that, Adibi expects things to pick up slowly. He says Orange County and the rest of California could be among the first to come out of the recession, since they were among the first ones in.

  Esmael Adibi: So I think most of the job losses in Orange County and the rest of California are beyond, behind us. Look at Orange County mortgage industry. That was a major engine of job growth. And that industry disappeared and most of the layoffs are done.

  Construction sector went through correction - still there’s going to be some correction, especially on commercial side, office and retail - but I think Orange County and California are going to show smaller job losses.

  Valot: At least compared to the rest of the country. Adibi says unemployment is still a challenge. He based his forecast on the assumption that once in office, President Barack Obama will implement a $500 billion economic stimulus plan that will help.

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  • December 9, 2008 3:06 PM
  • Categories: Business/Economy

• California Attorney General Brown calls on Detroit automakers to drop environmental lawsuits before bailout

  As the Detroit automakers wait on a federal life-raft for their industry, California’s attorney general Jerry Brown wants to know whether a financial rescue would require those companies to drop their lawsuit against the state’s efforts to regulate greenhouse gas emissions.

  Jerry Brown: “We want the Congress to condition the bailout on the automobile companies dropping their lawsuits. I mean they’re spending tens of millions fighting many states, including California, that have adopted these strict tailpipe emission standards that are designed to curb greenhouse gas emissions.”

  Brown told KPCC’s “Patt Morrison” that efficiency is key if the United States wants to regain leadership in the auto industry. The leader of a U.S. House global warming panel said today that any bailout should hinge on the industry dropping the legal challenges Brown spoke about.

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  • December 9, 2008 1:50 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Comptroller report shows lenders with restructured loans re-defaulting

  A new federal report suggests that some homeowners continue to have trouble paying their mortgages even after lenders work out more favorable terms.

  The report by the Comptroller of the Currency tracked more than 70,000 loans that banks and other lenders modified during the first quarter of this year. Within six months, 53 percent of those borrowers missed a payment.

  Comptroller John Dugan told KPCC’s “Patt Morrison” that the skipped payments aren’t necessarily resulting in foreclosures.

  John Dugan: “Thirty days past due – some people cure that. And particularly some people who have trouble paying their mortgages can be chronically payers that do cure their mortgages.

  “But even when we look at numbers that are 60 days past due – and if we get out eight months past the first quarter. The re-default rate is over 41 percent.”

  Dugan calls those numbers “surprisingly high.” He says his agency doesn’t know why people re-defaulted.

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  • December 9, 2008 1:41 PM
  • Categories: Business/Economy

• Government agency finds those with modified loans still missing payments

  A government agency has found that most people whose loans were modified in the first quarter of this year ended up missing another mortgage payment during the next six months.

  The data is from the Office of the Comptroller – the agency that oversees regulations of all national banks. KPCC’s Business Analyst Mark Lacter says the data suggests that many mortgages are beyond saving.

  Mark Lacter: “A loan officer I interviewed said that seven out of 10 homeowners he sees cannot be helped – that is, they wouldn’t be able to afford a loan even if it’s adjusted downward.”

  The Office of the Comptroller report covered about 78,000 mortgages that were modified. Nearly 53 percent of those borrowers re-defaulted on their mortgages within six months.

  Lenders had modified the terms in various ways, such as lowering payments or giving borrowers a second opportunity to make those payments.

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  • December 9, 2008 12:47 PM
  • Categories: Business/Economy

• Downtown LA introduces taxi pilot program

  From now on it could be easier to go dancing, to dinner, or to a concert in downtown Los Angeles - and park only once. KPCC’s Patricia Nazario has more on a pilot program that encourages people to cab it.

  Patricia Nazario: Los Angeles is the second most populous city in the United States, after New York. Nine million people live in the Southland and millions more visit each year. New York transplant – and executive with the L.A. Live entertainment district – Lisa Herzlick says she was feeling right at home, until she tried to flag down a cab.

  Lisa Herzlick: So, I kinda put my hand up and tried to hail a cab and the cabs drove by. They didn’t stop.

  Nazario: Now, they will. The L.A. City Council is allowing cabbies in Hollywood and downtown to load and unload passengers at curbside. Before, traffic officers would ticket them on the spot. Longtime cabbie Yikum Sayas says he hopes the new rule will generate a few extra bucks.

  Yikum Sayas: I make like $100 a day to $150.
  Nazario: And now? How much do you hope to make?
  Sayas: At least $200 in a day. That’s what I’m expecting.

  Nazario: L.A. Live executives and taxi operators expect the new city ordinance will draw more people to L.A.’s downtown entertainment district. Depending on how it works out, city council members say they may expand the program citywide.

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  • December 8, 2008 5:18 PM
  • Categories: Business/Economy, Transportation

• Hollywood Reporter editor says SAG strike is possible

  The Screen Actors Guild has called its members to a closed-door meeting tonight. The leadership is trying to convince the rank and file to authorize a strike.

  After a months-long impasse in talks with the major studios, analysts expect SAG to hold a strike authorization vote later this month. Seventy-five percent of those who vote would have to authorize a strike. Hollywood journalist Alex Ben Block says the outcome is uncertain.

  Alex Ben Block: “Despite the economic crises going on in this country, it’s almost unthinkable they could go out on strike, but it’s a very real threat. And the possibility of a strike by the Screen Actors Guild, that could paralyze Hollywood.”

  Ben Block is editor-at-large for the Hollywood Reporter. He spoke with KPCC’s “Patt Morrison.”

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  • December 8, 2008 2:37 PM
  • Categories: Arts, Business/Economy

• Taxi restrictions lifted in new taxi pilot program

  Hailing a cab from the curb in Hollywood or downtown Los Angeles was illegal - until today. Traffic officers used to ticket cabbies who pulled over in red zones to pick up or drop off passengers.

  L,A, Live development executive Lisa Herzlick says that lifting the restriction elevates the city’s image as a tourist destination.

  Lisa Herzlick: “Not just for people who live downtown or who visit downtown that don’t want to get in their car once they’ve parked, but for people that visit us from all over the world. They will get what they expect when they come here from a transportation hub.”

  L.A. lawmakers launched the pilot program today in Hollywood and downtown. Cab operators had been trying for about five years to change a city ordinance that penalized them for loading and unloading passengers at curbside.

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  • December 8, 2008 2:35 PM
  • Categories: Business/Economy, Transportation

• Downtown LA taxi program launches

  So, how do you hail a cab in Los Angeles?

  Wendy Greuel and Jan Perry: “OK, ready… taxi!”

  Los Angeles City Council members Wendy Greuel and Jan Perry practiced the shout on stage this morning. They were reminding visitors and locals that it’s finally possible to hail a taxi in downtown L.A., including the area around the L.A. Live entertainment complex.

  Until today, traffic officers would ticket cabbies who stopped in red curb zones to pick up or drop off passengers. From now on, drivers will only get warnings.

  It’s part of pilot program city officials inaugurated in downtown L.A. and Hollywood. They say the convenience of hiring a cab on the go will make life easier for people who live near the Staples Center and tourists visiting the zone for conferences and conventions.

  Over time, officials hope to roll out the program citywide.

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  • December 8, 2008 2:14 PM
  • Categories: Business/Economy, Transportation

• LA Times parent company Tribune files for Chapter 11 bankruptcy protection

  In a development that’s stunned the already-battered media industry, the parent company of the Los Angeles Times filed today for Chapter 11 bankruptcy protection. KPCC’s Cheryl Devall has the story.

  Cheryl Devall: The Times is not unprofitable. That paper’s reporting that Chicago-based Tribune had enough cash on hand to make a $70 million payment to its banks. But the company couldn’t buy the time to restructure the rest of its debt load without filing for bankruptcy.

  In a memo to employees, Tribune owner Sam Zell said a sharp decline in advertising revenue, the credit crisis, and the persistent economic slump have combined to create what he called “a perfect storm.” Tribune plans to continue operating its eight daily newspapers and 23 television stations.

  It’s not clear whether the company can meet some of its other obligations - including severance and other payments to many of the employees it’s laid off lately to cut costs. Last year, Zell acquired Tribune in a heavily leveraged deal. The bankruptcy filing does not involve the Chicago Cubs baseball team - a Tribune property Zell had hoped to sell fast in order to meet a major payment.

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  • December 8, 2008 2:11 PM
  • Categories: Business/Economy

• Tribune, owner of LA Times and KTLA, files for bankruptcy

  The Tribune media conglomerate has filed for bankruptcy protection. Tribune - owner of the Los Angeles Times and KTLA Channel 5 – is trying to deal with $13 billion in debt.

  Bryce Nelson is a former L.A. Times reporter who teaches journalism at USC. He told KPCC’s “AirTalk” that the bankruptcy filing will greatly affect Tribune media properties.

  Bryce Nelson: “People will be reluctant to make advertising contracts, subscription contracts, go to work for these organizations - it will have a whole cycle of repercussions to each individual property in Tribune.”

  Most of the debt resulted from a complex transaction that allowed real estate magnate Sam Zell to take Tribune private last year.

  In a memo to employees, Zell blamed the company’s problems on the “perfect storm” of a decline in advertising revenue, a tough economy, and the credit crunch.

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  • December 8, 2008 12:19 PM
  • Categories: Business/Economy

• LA Times' parent company files for bankruptcy

  The owner of the Los Angeles Times filed today for Chapter 11 bankruptcy protection.

  Tribune Company has been struggling with a heavy debt load. KPCC’s Business analyst Mark Lacter says the company also faces the prospect of losing more advertising revenue.

  Mark Lacter: “There’s a lot of concern that beginning the first part of next year, a lot of retail advertising is going to dry up because the terrible situation going on with retailers these days. They’re actually getting a fair amount of advertising right now, but what happens in January when the holiday season is over? That’s a real concern of theirs.”

  Tribune also has had trouble selling some of its assets. The company had planned on selling the Chicago Cubs and its home stadium Wrigley Field, but it’s had trouble doing that in the current economic climate.

  Tribune went private last year in a heavily-leveraged deal. Along with the L.A. Times, the media company owns 11 other newspapers and almost two dozen TV stations, including KTLA Channel 5.

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  • December 8, 2008 11:59 AM
  • Categories: Business/Economy

• Biden's new economic advisor says job losses have increased rapidly

  The American economy shed more than half a million jobs last month. That guarantees an unemployment tally of two million this year. Jared Bernstein, director of the Living Standards Program at the Economic Policy Institute, said that while big companies lost value, workers suffered the most.

  Jared Bernstein: “We lost over half a million jobs in one month. What’s particularly notable is that if you look at the rate of job loss over this recession, it started off pretty mild; about 80,000 jobs per month. Not that that’s a picnic, but it’s better than what we’ve looked at. Over the past three months, the rate average job losses have been over 400,000.”

  Shortly before Bernstein spoke with KPCC’s “Patt Morrison” today, Vice President Joe Biden appointed him as his chief economic advisor.

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  • December 5, 2008 7:12 PM
  • Categories: Business/Economy, Politics/Public Affairs

• New unemployment figures one of many bad economic signals

  The dismal unemployment figures for last month are only one of many signals the American economy has been on its way down for a long time, Christopher Thornberg of Beacon Economics told KPCC’s “AirTalk.”

  Christopher Thornberg: “People have been spending far beyond their means and that’s been reflected at the national level by this huge trade deficit. This was not sustainable.

  “Even though our policymakers like to pretend everything was fine, it was clear that there was this huge albatross that nobody was willing to acknowledge, and now we are paying the price for ignoring the obvious.”

  Last month, 533,000 people in this country lost their jobs - resulting in an unemployment rate of 6.7 percent.

  November’s under-employment rate, including people who put in part-time hours but would work full-time if they could, was more than twice that percentage - 12.7 percent.

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  • December 5, 2008 3:20 PM
  • Categories: Business/Economy

• Representative Brad Sherman says Big Three had better approach to Congress today

  The Big Three automakers still got a grilling in Congress today, but it wasn’t as bad as when they testified a couple of weeks ago. Congressman Brad Sherman spoke with KPCC’s “Patt Morrison” about the hearing.

  Brad Sherman: “They came here with a serious plan. Before they basically said, we flew here on our jets, we got room on the jets for cash, give us the cash. This time they came out with a much more realistic approach.”

  Sherman said there’s very little time left to save the carmakers. If Congress approves a bailout, Sherman wants to create an oversight board that would control how the Big Three use taxpayer money.

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  • December 5, 2008 3:19 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Representative Brad Sherman calls for 'Warranty Trust Fund' for automakers

  The financial state of the Big Three automakers has L.A. Congressman Brad Sherman worried about the people who might buy one of their cars.

  Brad Sherman: “I want these companies to survive but I’ve got to tell consumers in Los Angeles, you buy a car from the big three today, you’re counting on a five or eight year warranty, or even just a three year warranty. In the event the company goes bankrupt, your warranty is gone.”

  Sherman told KPCC’s “Patt Morrison” that he wants Congress to create a “Warranty Trust Fund.” His idea is that two percent of what you pay for your car would go into a trust fund, so that if the company went under, there would be money to pay for future repairs.

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  • December 5, 2008 3:17 PM
  • Categories: Business/Economy, Politics/Public Affairs

• 533,000 people lose jobs in November

  The unemployment numbers for November rattled even seasoned observers of the economy. Figures released today show that 533,000 people in this country lost their jobs last month.

  Floyd Norris, chief financial correspondent for the New York Times, traces the decline to the bankruptcy of Wall Street brokerage Lehman Brothers.

  Floyd Norris: “The economy went into something approaching a freefall in mid-September after Lehman was allowed to fail. And that scared a lot of people, and the ramifications of it scared a lot of people. We’ve known that before – the downturn is accelerating. There were no encouraging numbers here.”

  Norris spoke with KPCC’s “Patt Morrison.”

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  • December 5, 2008 3:01 PM
  • Categories: Business/Economy

• Real estate scholar questions whether home ownership is always a good thing

  Amid the economic downturn, many people are clamoring for the federal government to rescue homeowners who’ve gotten in over their heads. Thomas Davidoff, a real estate scholar at UC Berkeley, questions whether so many people should have pursued home ownership in the first place.

  Thomas Davidoff: “I think it was a real mistake, I think, on the part of the government to assume that it’s a great idea for people to own. You know, people have this idea that homeownership helps everybody, helps communities. And it does have benefits, but if people are pushing to be homeowners, when you get into a recession it’s unaffordable, and being a homeowner is a risky option. You’re making an investment that is very tied up with your labor income.”

  Davidoff told KPCC’s “AirTalk” that one likely result of the recession is that many jobless Americans will be pushed out of their homes and into rental properties.

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  • December 5, 2008 12:44 PM
  • Categories: Business/Economy

• L.A. Live entertainment district opens Downtown tonight

  A display of 11,000 digital lights is launching L.A. Live’s grand opening ceremony tonight.

  High school freshman Robert Gomez says he’s heard about the two-and-a-half-billion dollar entertainment district in downtown Los Angeles. He’s been to the Nokia Theatre and he’s noticed the entertainment district’s bowling alley. But he doesn’t get it when promoters compare the zone to one of New York City’s premier tourist destinations.

  Robert Gomez: “Well, I don’t know about Times Square. I think it’s pretty exciting. To be honest, I don’t really come here much. I’m mainly at home, stuck at home.”

  L.A. Live developers hope to appeal to local audiences and convention and business travelers. When the district’s finished next spring, it’ll include a salsa club, upscale restaurants and lounges, and hundreds of hotel rooms.

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  • December 4, 2008 7:58 PM
  • Categories: Arts, Business/Economy

• California Lottery sales slide every month since July

  Ticket sales for the California Lottery peaked three years ago. This year, they’ve slid every month since July. Lottery spokesman Al Lundeen said many regular players are hanging onto their money.

  Al Lundeen: “The economy clearly impacts lottery sales. We’d like to think that – and we know that – lottery players use discretionary dollars to play games. Not many months ago, people were saying, ‘oh we’re spending a lot more on gasoline,’ and as a result have a few less dollars to play the lottery.”

  Lundeen told KPCC’s “Patt Morrison” that he expects strong sales for tomorrow’s $146 million Mega Millions Jackpot.

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  • December 4, 2008 4:22 PM
  • Categories: Business/Economy

• Community and labor groups accuse CVS of discrimination in minority communities

  Community and labor groups are accusing CVS Pharmacies of discriminatory practices in minority communities. The labor group “Change To Win” says CVS has fewer stores in poor communities. And it says the CVS stores that are there tend to have shorter hours, dirtier floors, and more out-of-date products.

  CVS says “Change To Win” is pressuring the company to give union recognition to employees without a National Labor Relations Board election. Reverend Eric Lee with the Southern Christian Leadership Conference of Greater L.A. led a protest outside a CVS store in a South L.A. He says labor isn’t the key issue.

  Reverend Eric Lee: “It’s not about organizing CVS workers as much as it is coming together and pooling our resources so that we can demand change and respect that we deserve. Now, if there is organizing that takes place, then that’s better for our people who work in these communities.”

  In a statement, CVS said it doesn’t “tolerate discrimination of any kind” - but it says it will review the claims in the “Change To Win” report.

  Link: Change To Win
  Link: Southern Christian Leadership Conference of Greater Los Angeles
  Link: CVS Caremark

  Tools

  • December 4, 2008 4:04 PM
  • Categories: Business/Economy

• Tattoo parlor owner reacts to LA Live entertainment complex opening

  Small business owners in downtown Los Angeles hope the new L.A. Live entertainment complex will supercharge their cash registers.

  Mario Daggett opened Downtown Custom Tattoo a year ago. It’s a few blocks away from the entertainment zone. Daggett says he’s already extended his evening hours in anticipation of more foot traffic.

  Mario Daggett: “Our hours are from 12 in the afternoon ‘til 10 at night, and we’re thinking about staying open until midnight. You know, it’s gonna bring a lot more life out here, a lot more people out here, a lot more business, you know? It’s gonna bring the economy up, too, I think.”

  Developers boast that the $2.5 billion L.A. Live will become the West Coast version of New York’s Times Square.

  The 4 million square-foot district is situated around the Staples Center. Its attractions include an interactive Grammy Museum and an expanded version of the popular salsa club the Conga Room.

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  • December 4, 2008 2:30 PM
  • Categories: Arts, Business/Economy

• New LA Live entertainment complex opens tonight

  It’s not the ball dropping at Times Square, but downtown Los Angeles boosters are hoping for a big turnout tonight at L.A. Live’s grand opening ceremony. The $2.5 billion entertainment complex near Staples Center includes concert venues, restaurants, lounges, and a museum tracing the history of the Grammy Awards.

  Marshall Mitchell doesn’t live in the Southland. But he visits L.A. at least twice a month for his public relations firm.

  Marshall Mitchell: “Generally when I come to L.A. I’m not downtown, so something like this draws me down other than a Lakers game. You know, the usual things that are going on here at the convention center, so it definitely would be a lure for me.”

  The ceremony starts at 7 o’clock. L.A. Mayor Antonio Villaraigosa and singer Natalie Cole will help flip the switch on the plaza’s digital holiday light display.

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  • December 4, 2008 2:28 PM
  • Categories: Arts, Business/Economy

• Treasury Department considering lower home loan interest rates

  In its continuing effort to reverse the economic downturn, the Treasury Department is considering whether to lower interest rates for home loans. The Wall Street Journal reports that through mortgage guarantors Fannie Mae and Freddie Mac, the federal government would encourage banks to lend to homeowners at 4.5 percent – a full point lower than prevailing rates for standard 30-year mortgages.

  Stuart Gabriel, who heads the Ziman Center for Real Estate at UCLA, evaluated the idea on KPCC’s “AirTalk.”

  Stuart Gabriel: “It is an attempt to reach out to a very different class of participants in the market, not those that are currently facing foreclosure, looking to refinance or whatever, but rather other potential buyers who are either frozen out now by the high level of mortgage rates or afraid to move, out of fear.”

  Gabriel said the entry of potential millions more homebuyers into the market could help to stabilize housing prices and start the economy toward recovery. So far, the lending plan would apply only to people who want to buy – not to those who want to re-finance their mortgages.

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  • December 4, 2008 2:26 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Canyon Country resident reacts to opening of LA Live

  The lights go on at L.A. Live tonight and developers hope the complex will transform downtown Los Angeles. The $2.5 billion entertainment district near the Staples Center will house a trendy bowling alley, upscale restaurants, and lounges.

  Mary Lewis lives 40 miles north of downtown in Canyon Country. She says she’s not likely to visit often, but she thinks L.A. Live will be great for people who live downtown.

  Mary Lewis: “And I think that’ll bring more people to the downtown area. They’ll rejuvenate down here and I think – maybe it’ll become like Chicago downtown!”

  Mayor Antonio Villaraigosa and singer Natalie Cole will help flip the switch on the plaza’s “Light of the Angels” digital light display tonight at 7.

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  • December 4, 2008 2:13 PM
  • Categories: Arts, Business/Economy

• LA Live development opens tonight

  The development downtown boosters are comparing to New York City’s Times Square – L.A. Live – officially opens tonight.

  Developers hope the $2.5 billion entertainment district will add new life after dark to the city center. High school teacher Mary Ann Avila said she hopes it’ll generate jobs for some of her students.

  Mary Ann Avila: “That’s another thing that would be good, you know? An avenue for them to get some extra money and spend it! (laughs) Or, help with their college education. Yeah!”

  A handful of restaurants and trendy venues in the complex - including the Nokia Theater concert hall – have been open for months. More attractions are on the way. L.A. Live’s grand opening and holiday tree lighting ceremony begin at 5 o’clock.

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  • December 4, 2008 2:10 PM
  • Categories: Arts, Business/Economy

• Business analyst says Bratz lawsuit loss is 'more bad news' for Van Nuys manufacturer

  A federal judge has given control of the Bratz doll line to Mattel. The El Segundo-based toy company won a copyright lawsuit earlier this year against MGA Entertainment, which manufactures the Bratz doll line.

  A jury found that the man who created the Bratz dolls was working for Mattel when he came up with the concept. KPCC Business analyst Mark Lacter says the latest ruling is more bad news for MGA, which is based in Van Nuys.

  Mark Lacter: “The Bratz dolls represent up to half of the revenues that they receive each year, so if you pull Bratz out of the lineup, you don’t really have much of a company left.”

  The judge is allowing MGA to wait until after the holiday season before pulling the dolls off of shelves. The order won’t take effect until at least next February, when the two sides are scheduled to meet in court. MGA plans to appeal the ruling.

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  • December 4, 2008 12:57 PM
  • Categories: Business/Economy, Criminal Justice

• Judge orders recall of Bratz dolls

  A federal judge in southern California has ordered the recall of a very popular line of dolls. KPCC’s Steve Julian says the entire line of Bratz dolls violates a Mattel copyright.

  Steve Julian: Bratz dolls first came out in 2001, designed by a man then under contract for Mattel. A jury recently awarded Mattel $10 million for copyright infringement and $90 million more for breach of contract.

  MGA, the company that makes the Bratz doll line, which includes Bratz Boys, Baby Bratz, and Bratz Petz, must stop making the dolls. They also must reimburse its vendors and distributors, and pay to have the dolls shipped back. MGA says it will appeal the judge’s ruling.

  During the trial, Mattel attorneys said MGA made nearly $800 million on the Bratz line. The dolls are known for their pug noses, almond shaped eyes, and big lips. They cut deeply into Barbie’s popularity. Domestic sales of Barbie were down 15 percent last year.

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  • December 4, 2008 11:17 AM
  • Categories: Business/Economy, Criminal Justice

• Judge rules that Bratz dolls must be recalled

  The dolls that rivaled Barbie - Bratz dolls - are coming off the shelves. KPCC’s Steve Julian says a federal judge has ruled against the doll’s maker in a copyright infringement suit.

  Steve Julian: A jury already had decided that the doe-eyed, coquettish Bratz dolls violated Mattel’s copyright. But the jury was not told to decide whether the infringement involved only the four original dolls - or the three dozen that followed, as well.

  U.S. District Judge Stephen Larson decided that all 40 in the line must be pulled off store shelves. He did, however, give the doll’s maker, MGA, until after Christmas to recall them. MGA says it will appeal.

  The line expanded from Yasmine, Chloe, Sasha, and Jade to Bratz Boyz, Baby Bratz, and Bratz Petz, all spelled with Z’s. MGA has countersued Mattel, claiming the toy giant’s popular MyScene dolls are a copy of the Bratz brand. Mattel has seen Barbie sales decline since the Bratz dolls were introduced in 2001.

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  • December 4, 2008 11:15 AM
  • Categories: Business/Economy, Criminal Justice

• Unite For Strength faction of SAG writes to members about strike authorization vote

  The Screen Actors Guild’s leadership is preparing to send members a ballot to authorize a strike. Seventy-five-percent of members would have to authorize it.

  KPCC’s Brian Watt says a moderate faction of the Guild is letting its supporters know how important that vote is.

  Brian Watt: The Unite for Strength faction seized a slim majority on the Guild’s National Board in an election three months ago. The new board chose to try federal mediation in SAG’s stalled contract talks with film and television producers.

  But Unite for Strength has little say on SAG’s negotiating committee – which concluded that mediation had failed. That’s what triggered the strike authorization vote.

  Amy Aquino: Unite for Strength is not taking a position on the strike authorization per se. Too large a group, too many different feelings.

  Watt: Amy Aquino is a founding member of Unite for Strength. Aquino co-wrote an e-mail message to the faction’s supporters.

  Aquino: It’s really, really vital that a) everyone vote and b) that when they do vote, that vote is informed.

  Watt: Aquino said the faction will be making sure SAG members don’t overlook their ballots in a sea of holiday cards.

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  • December 3, 2008 1:12 PM
  • Categories: Arts, Business/Economy

• Auto industry reports poor sales

  The auto industry is reporting dreary sales numbers. Toyota’s sales fell by almost 34 percent last month compared to the previous November. Ford says its sales of light vehicles fell 35 percent.

  KPCC’s Business Analyst Mark Lacter says these numbers are bad news for California. The state relies on the tax revenue that auto sales generate.

  Mark Lacter: “It’s the single largest source of revenue for the state, as well as many counties and cities. Through October, you’re looking at a loss of roughly $2 billion, which is serious money - and there’s really no way to make up the shortfall. This is why there is so much concern about cutting back on public services.”

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  • December 2, 2008 2:28 PM
  • Categories: Business/Economy, Transportation

• Author suggests people should evaluate nonprofits differently

  When they go online to Charity Navigator, or question nonprofit executives about the costs of overhead, Americans are asking the wrong questions about what it means to be responsible donors. That’s the main argument of a new book by charity entrepreneur Dan Palotta.

  Dan Palotta: “We as a society have been trained to ask one question and one question only about charity, ‘What percentage of my donation goes to the cause?’ And it’s a really dangerous question that gives us useless information.”

  Palotta, who’s operated long-distance bike rides to raise money for AIDS research, spoke with KPCC’s “AirTalk.”

  He offered the example of two soup kitchens: one that allocates $.90 on the dollar to provide services, and another that uses $.70 per dollar that way. Palotta argued that while most contributors would assume that the first soup kitchen is worthier; donors who visit the second site might discover that the 70-cent soup kitchen runs a more efficient operation by spending more money on administration.

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  • December 1, 2008 6:06 PM
  • Categories: Business/Economy, Society/Culture

• Legislative analyst issues education reform recommendations

  California’s legislative analyst has issued its periodic list of reform proposals intended to make government more effective and efficient. KPCC’s Adolfo Guzman-Lopez reviews the analyst’s public school recommendations.

  Adolfo Guzman-Lopez: The legislative analyst issued 12 public school recommendations.

  They include opening charter school authorization to public agencies other than school districts, such as universities. The analyst suggested that California align public school accountability standards with those of the federal government.

  The analyst also suggested combining seven separate funding programs having to do with class size and teacher pay. That would reduce school district paperwork, and would offer administrators a clearer picture of what state money they can expect.

  Jennifer Kuhn of the Legislative Analyst’s Office predicts that the proposals won’t fall on deaf ears.

  Jennifer Kuhn: Maybe half of our recommendations are implemented in a two-year period and half aren’t. And then we have to take a look at the ones that haven’t been, to look at whether they’re still salient issues that the legislature would want to pursue.

  Guzman-Lopez: These reforms may be necessary. But Sacramento’s got a bigger problem: how to find the money to keep state government running.

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  • December 1, 2008 4:46 PM
  • Categories: Business/Economy, Education, Politics/Public Affairs

• Schwarzenegger holds press conference on state's fiscal emergency

  Governor Schwarzenegger today declared a fiscal emergency. He called legislators into special session to address a budget deficit of more than $11 billion. KPCC’s Frank Stoltze reports that Schwarzenegger said the deficit could grow to $28 billion over the next year-and-a-half without “bold action.”

  Frank Stoltze: At a Los Angeles news conference, a grim governor said the numbers are growing worse as tax revenues plummet.

  Governor Arnold Schwarzenegger: Without immediate action, our state is headed for a fiscal disaster.

  Stoltze: Schwarzenegger said California would run out of cash by March without adjustments to the state budget. He declared a fiscal emergency under Proposition 58.

  Schwarzenegger: Under Proposition 58, the legislature now has 45 days to send me bills addressing this crisis. If the 45 days pass and they still haven’t addressed the problem, they cannot adjourn or consider anything else until they do.

  Stoltze: The governor and Democrats want equal amounts of spending cuts and tax increases, along with a stimulus package. In a special session last month, Republicans refused to go along with any tax hikes. Now, more than three dozen newly elected legislators have taken office.

  Schwarzenegger: They all know what to do; the question always is, is the will there?

  Stoltze: The governor said he’ll urge legislators again to step out of their “ideological sandboxes” and make some tough choices.

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  • December 1, 2008 4:38 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Forestry expert praises LA County's fire prevention strategies

  California is bracing itself for the next round of wildfires, and is worrying about how much it will cost to fight them. Some say L.A. County is setting a good example for how to prevent fires.

  L.A. County helps pay for a variety of fire prevention measures with a special tax on homeowners in high fire areas. Bill Stewart is a forestry expert at UC Berkeley.

  Bill Stewart: “It’s going to really reduce your fire insurance and reduce, you know, the risk of your house burning down if we start to invest fifty, hundred, hundred-and-fifty dollars per year in doing projects now, and if we do that over the next twenty years, everybody is going to be better off.”

  Stewart spoke with KPCC’s “Patt Morrison.” He says there are a lot of other ideas floating around in Sacramento about how to raise additional money for fire prevention.

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  • December 1, 2008 3:56 PM
  • Categories: Business/Economy, Environment, Politics/Public Affairs

• Dodgers president says organization needs to consider priorities in tough times

  What’s the responsibility of a local sports team to its community? That question has been posed by none other than the president of the L.A. Dodgers, Jamie McCourt. She wondered aloud recently about whether the team should spend megabucks to sign star players, or build more local parks.

  McCourt told KPCC’s “Patt Morrison” that she recognizes that it’s not an either/or proposition; she’s just trying to stimulate discussion.

  Jamie McCourt: “The philosophical question that I was asking is, ‘What are our values right now, while people are having economic woes and losing jobs and worried about their futures?’ Shouldn’t we at least be asking the question about what’s important, and where are the family priorities, and what can we do with our role, you know, as far as the Dodgers are concerned?”

  The Dodgers are currently trying to re-sign free agent Manny Ramirez to a deal that could cost more than $20 million a year.

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  • December 1, 2008 3:41 PM
  • Categories: Business/Economy, Society/Culture, Sports/Recreation

• Schwarzenegger won't request federal help with California budget crisis

  Now that he’s declared a fiscal emergency in California, Governor Schwarzenegger says lawmakers have transcend ideology to solve the state’s budget problems. Until California becomes more fiscally responsible, the governor said he’ll refuse to seek federal assistance.

  Governor Arnold Schwarzenegger: “I would never ask the federal government to help us before we not straighten out our own mess. We got to go and look at our numbers and say, ‘We are right now not fiscally responsible.’ We are right now spending money we don’t have, and so therefore, the federal government shouldn’t give us a penny.”

  Schwarzenegger added that because California lawmakers passed a budget so late, the state is more than one-and-a-half-billion dollars in the hole.

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  • December 1, 2008 3:39 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Schwarzenegger declares fiscal emergency in California

  On the first day of a special legislative session, Governor Arnold Schwarzenegger declared a fiscal emergency for the State of California today.

  Under Proposition 58, the governor is giving state lawmakers 45 days to send him bills addressing California’s budget crisis. He’s urging the people of California to exert pressure on those elected officials.

  Governor Arnold Schwarzenegger: “If we adopt the strong economic stimulus measure that I have proposed, which is the most important ingredient in this whole package, we can offset a lot of the pain that comes with spending reductions and new taxes.”

  Schwarzenegger predicts that if the legislature doesn’t act, in the next 18 months California’s preliminary estimated deficit will reach $28 billion.

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  • December 1, 2008 2:21 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Author challenges assumptions about how nonprofits should operate

  Longstanding assumptions about the proper way to run charitable organizations are hampering their effectiveness, Dan Palotta argues.

  The originator of high-profile fundraisers like long-distance bicycle tours for AIDS research told KPCC’s “AirTalk” that chronic diseases, homelessness, and hunger require the same approaches to problem-solving that successful corporations apply.

  Dan Palotta: “We have to start asking, ‘What do you need to solve these problems? And let us provide it to you.’ We have to stop asking, ‘What is the Executive Director’s salary?’ And we have to start asking, ‘What kind of a CEO would you need to eradicate this problem, and what do you need to pay them?’ Then we can start to create real solutions to these problems.”

  In his new book “Uncharitable: How Restraints on Nonprofits Undermine Their Potential”, Palotta argues for competitive salaries to attract the most creative and productive thinkers to the nonprofit sector.

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  • December 1, 2008 2:16 PM
  • Categories: Business/Economy, Society/Culture

• LA economist not expecting big sales on Cyber Monday

  It’s Cyber Monday, when retailers try to attract online shoppers with deep discounts and free shipping.

  Jack Kyser is chief economist with the L.A. Economic Development Corporation. He said analysts aren’t expecting much from the day this year.

  Jack Kyser: “A lot of people say it’s going to be sort of flat, compared with last year. It had been recording very, very strong growth. And traditionally, people will go to the mall and see what kind of prices the stores are offering, not just on the doorbusters. And they go online and buy it, so we have to watch and see.”

  Initial tracking figures from Black Friday report sales up from one to seven percent. Kyser said that would be a surprise.

  Economic monitors have expressed concern about retail sales during the holiday shopping season because of the downturn, and also because the holiday shopping season is shorter this year.

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  • December 1, 2008 2:09 PM
  • Categories: Business/Economy

• Shopper shares how economic downturn has affected her Christmas shopping

  The holiday shopping season has officially begun. One shopper told KPCC’s Brian Watt there’ll be gifts under her tree this year - just not as many as before.

  Brian Watt: Last year, Kathy Mitchell says she gave a lot of gifts to a lot of friends.

  Kathy Mitchell: And now my list, unfortunately, is not as long as it used to be. Or as long as I would like it to be. And I guess you can’t give as extravagant of a gift. You just have to be careful this year.

  Watt: No extravagance because money’s tight. What else does “careful” mean to a paralegal who lives in Beverly Hills and chases doorbuster bargains at stores in Culver City?

  Mitchell: I’m not using any credit cards this year. I just - no, no. That’s not good. Because it takes you too long to repay them. This year it’s no credit cards – that’ s why my list is shorter.

  Watt: But Mitchell said she started early to spend the money she knew she had - so she could take advantage of the best deals.

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  • November 28, 2008 4:52 PM
  • Categories: Business/Economy

• Musical instrument repair shop weathers economic downturn

  Family-owned businesses face particular challenges when the economy lags. But shops that provide unusual services may be exempt. KPCC’s Adolfo Guzman-Lopez found that out when he visited an establishment in Long Beach.

  Adolfo Guzman-Lopez: World of Strings has sold and repaired guitars, violins, and double basses for more than 40 years.

  Shop owner Jon Peterson tests a $3,500 student double bass after he works on its bridge. Some symphony musicians only trust him with their instruments. Peterson says his eight-employee business is stable.

  Jon Peterson: There’s a little bit of a slump. But you know, I think it’s an overall kind of thing. But we’re still moving along.

  Guzman-Lopez: Sales are down, but repair work keeps coming in. Ninety double basses in various stages of playability attest to that.

  Peterson: We try to track to what people are interested in, try to keep those things available, try to keep a friendly shop, make it a place to come.

  Guzman-Lopez: Peterson says customer service has helped him weather the downturn better than other shops. He wouldn’t talk about his annual sales - but he says that when he does retire, he’ll be fine.

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  • November 28, 2008 1:27 PM
  • Categories: Arts, Business/Economy

• UC Berkeley economist/historian explains origin of Black Friday

  A time of economic turmoil – very much like the one we’re in now – launched this day as the start of the holiday shopping season, UC Berkeley economist and historian Martha Olney told KPCC’s “Patt Morrison.”

  Martha Olney: “Franklin Roosevelt, as one his moves to try to help the economy during the Great Depression, moved Thanksgiving from the last Thursday of the month to the fourth Thursday of the month so as to make the Christmas shopping season one week longer, and hope to turn those balance sheets into that nice black color instead of the red negative color.”

  Olney said that the custom of recording profits with a black pencil in accounting books inspired the name “Black Friday” - the day on which retailers could begin to hope they’d end the calendar year “in the black.”

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  • November 28, 2008 1:24 PM
  • Categories: Business/Economy, History

• Black Friday shopping expected to be strong

  Seventeen-year-old Harry Hawkins was one of the early shoppers this morning at Fox Hills Mall. He said the long lines forced him to change plans.

  Harry Hawkins: “I started off my morning going to Circuit cCity, bought a couple DVDs, a couple games, you know. Then I came over here to Old Navy, but the line was just too long and I was not going through it. I put back all the clothes I had because I wasn’t dealing with it.”

  Some worry that the holiday season could be tough for retailers with the economic downturn, but Black Friday was expected to be strong. A store manager at JC Penney in Glendale told KPCC that this morning’s crowd is as strong as last year’s.

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  • November 28, 2008 1:06 PM
  • Categories: Business/Economy

• Shopper says Black Friday is overhyped

  Tradition trumps the scary economy, so throngs of shoppers headed to their favorite stores and malls before the crack of dawn. By 6:30 this morning, Carla Selfridge and her son had already taken care of business at the Circuit City in Culver City. She described the holiday shopping mania as “overrated”:

  Carla Selfridge: “Because they make it seem like there’s this limited amount of items, and it’s not. They’ve got plenty of stuff in the stores. They’ve got plenty of everything. They’ve got plenty of flat panels, they’ve got plenty of computers.

  “At Circuit City, they were saying, “Who wants a laptop? OK, here’s a laptop.” It wasn’t like “Oh, we only have six or we only have seven.” They have plenty of everything! It’s all hype to get us out here to make us spend, spend, spend. Uh-hunh. No, no, no.”

  Selfridge said she’s shopping more conservatively than she did last holiday season. But she’d already purchased her 32-inch flat panel television on the Circuit City website. She said she got a good deal by waiting until after midnight to lock in that order.

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  • November 28, 2008 11:32 AM
  • Categories: Business/Economy

• Former California house speaker Nunez moves to lobbying firm

  California’s new legislative session begins Monday. Lawmakers who are termed out have been looking for something else to do. KPCC’s Special Correspondent Kitty Felde reports that the former Assembly Speaker has a new job with a high-powered public relations firm.

  Kitty Felde: When Democrat Fabian Nunez took the job as Assembly Speaker, he was never afraid to butt heads with newly-elected Republican Governor Arnold Schwarzenegger. Their relationship mellowed over time.

  Now that Nunez is leaving the legislature, he’s joining a public relations firm operated by two of Schwarzenegger’s political advisors. Nunez will join Mercury Public Affairs, a national political consulting firm.

  Steve Schmidt, who ran Schwarzenegger’s re-election campaign and Adam Mendehlson, the governor’s former press deputy, are partners in Mercury. The company’s newest hire gives Mercury an entrée to California’s Democratic power brokers.

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  • November 26, 2008 6:27 PM
  • Categories: Business/Economy, Politics/Public Affairs

• Deloitte Consulting settles dispute with LAUSD over payroll system

  The Los Angeles Unified School District has announced a $15 million settlement with Deloitte Consulting, the company it had paid to make sure a massive new payroll system worked.

  That system wreaked havoc on payroll almost two years ago. It underpaid, overpaid, and failed to pay tens of thousands of L.A. Unified employees.

  The school district was ready to sue Deloitte Consu