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