Everyday in business and personal life, opportunities present themselves. Oftentimes, they present themselves as an obstacle. Just think of market changes, changes in consumer demographics, raw product scarcity, government regulation, weather, cost of fuel, etc.
For every challenge there are four basic responses:
1. The Optimist - They are so excited! They can't wait to make a plan for how to take advantage of the opportunity. They want to talk to everyone about the wonderful opportunity and get buy-in and agreement from everyone they meet. The opportunity is so large the optimist needs to slice and dice every conceivable piece of data, research every player. The amount of time they spend talking about being excited about it, oftentimes leads to being slow to the marketplace.
2. The Pessimist - They are too smart to be excited. Please note that there are no exclamation points in this paragraph. The pessimist will take every opportunity and turn it into another reason to validate their negative outlook. Much time will be spent talking about the Obstacle (NOT OPPORTUNITY). Like the Optimist, it is important for the Pessimist to have others validate their view. With any luck, the whole thing will blow over without anything being done and the Pessimist will once again be smug in their knowledge that everything stinks (business, people, government, etc.).
3. The Realist - See number 2 above. All Pessimists think they are realists.
4. The Opportunist - They are almost as excited as the optimist. They can see the challenge for what it really is; an opportunity. They are smart like the Pessimist, but see the real measure of intelligence as being able to solve the challenge to be able to reap the rewards of the opportunity. They have to think creatively to solve issues that others are only talking about. They do this quickly, in order to take advantage of the opportunity before all the optimists get to market.
Along with acting quickly comes the risk that the Opportunist will fail. That is a given. And the change that they might succeed mightily! Let's think of a few Opportunitsts:
•Southwest Airlines
•Berkshire Hathaway
•Apple
•and a thousand others
As a leader it's your job to choose and develop your firm's mindset. You can choose giddy and slow, you can be grumpy, or you can be fast, positive and action oriented.
| Business Advocate Blog |
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The Business Advocate Blog is a collection of articles written by VICA members. If you are a VICA member and would like to contribute to the VICA blog, submit your 250-500 word article to angela@vica.com. The topic must be relevant to the business community and blatant self-promoting articles will not be published. VICA reserves the right to edit any submission and articles are posted at VICA’s discretion.
The Power of Action vs. Talking by Lionel McCray
05/02/2012 10:53AM
4 Ways To Use Visual Content To Enhance Your Online Marketing by Parham Nabatian
05/02/2012 10:44AM
Did you know that 83% of information processed is done visually? Let’s face it, we are a visual culture and that isn’t going to change anytime soon.
Recent proof continues to prove that our affinity for visuals is growing:
• Instagram, a photo sharing application just sold for 1 Billion dollars.
• Pinterest, a photo scrapbooking website generates more referral traffic than Google+, YouTube and LinkedIn combined.
• Just take a look at how Facebook is progressing with Timeline… you will notice that layout is a lot more visual than the old layout and results with our Facebook accounts show that images receive the most “likes” and “shares.”
Here are some ways to take a visual approach online!
1. Let Your Website Attract Through Pictures
Do not forget that your website is still the heart of your online marketing — and probably your overall marketing!!
Here at Infinite our website receives heavy traffic via search engines for people looking to hire a “Search Engine Optimization” firm. Receiving this feedback from our analytics, we developed a visual banner on the homepage that communicates directly to visitors who are inquiring about that service. The highly-visual graphic banner is one of the highest “clicked” elements of our site!
2. Videos Make It Easier
If you have a product/service that is both expensive or is technical and needs explanation, video is an absolute must!
People would rather watch an instructional video than read an instructional manual. Check out the video we created for Vocado, a project-management service for vocational schools (the video is framed in the iPad):
3. Infographics Get More Attention
Infographics are very popular right now and provide you a great opportunity to receive increased exposure.
Copyblogger, a leading resource for copywriting and content marketing developed an infographic about grammar mistakes that many of people make entitled, “15 Grammar Goofs That Make You Look Silly” (click to view). Between January 1st and March 5th they received 15,000 visits to their website just from the infographic on Pinterest.
Think about ways that you can make your content and information more visual so that it appeals to our natural preference for learning.
4. Facebook Timeline Banner/Twitter Background
This is prime real estate to use exciting visuals that personalize your brand. Our approaches to creating these are to include images of people because of the fundamental business rule that people buy from people and those who they identify with.
For your website think about using:
• Real photography! Photographs of your staff and facilities build greater trust.
• Call to action banners that include benefits/results/ and promotional offers.
Make sure you include images of your staff, customers and of your facilities. Facebook fans and Twitter followers love images; we’ve seen this proven, as the timeline banner we created for Sally Kashani DDS (above) has received 12 likes already.
Health care reform: Five major changes taking place in 2012 by Barbara Oberman-Lippe
03/15/2012 06:52PM
The enactment of the Affordable Care Act (ACA) is ushering in important changes in the health care system that will impact the marketplace in 2012. The law includes major changes to the health care system that impact individuals and employers alike. Here is a brief description of the key issues for 2012. The list is not meant to be exhaustive, and other ACA related issues may be of equal or greater importance to different individuals and businesses.
W-2 Reporting
• Employers with more than 250 W-2’s must begin preparing to report on employees’ W-2 forms – to be issued in January 2013 – the aggregate cost of their employer sponsored coverage. Benefits that are exempt from the W-2 reporting requirement include: stand-alone dental plans, stand-alone vision plans, accident and disability income insurance, life insurance, long term care insurance, health reimbursement accounts, contributions to Health Savings Accounts
Women’s Wellness
• Non-grandfathered plans that renew or become effective on or after August 1, 2012 must include 100% coverage for women’s preventive services when performed by an in-network physician. Services include: prenatal care, additional gestational diabetes screening tests, lactation support, and FDA approved contraceptive methods
Summary of Benefits and Coverage - - - DELAYED!
• Group health plans must provide a uniform summary of benefits and coverage document to individuals at enrollment and re-enrollment. If plan changes are made during the year a new document must be distributed 60 days prior to the effective date of the change. This requirement, originally effective as of March 23, 2012, has been delayed until September 23, 2012.
90-Day Maximum Waiting Period
• Starting in 2014, waiting periods for coverage are limited to 90 days. Existing plans will need to be amended to reduce waiting periods. Group health plans and insurers may need to begin preparing for this change in 2012.
MLR Reporting
• The medical loss ratio (MLR) provision requires health plan issuers to meet new minimum medical spending requirements. Using 2011 data, insurers in 2012 may be faced with rebating policyholders if the MLR ratios are not met.
This information is for educational purposes only and should not be construed as legal or tax advice. Please refer to your attorney or tax advisor for additional information or guidance.
Sources: www.irs.gov; www.natlawreview.com; www.shrm.org
W-2 Reporting
• Employers with more than 250 W-2’s must begin preparing to report on employees’ W-2 forms – to be issued in January 2013 – the aggregate cost of their employer sponsored coverage. Benefits that are exempt from the W-2 reporting requirement include: stand-alone dental plans, stand-alone vision plans, accident and disability income insurance, life insurance, long term care insurance, health reimbursement accounts, contributions to Health Savings Accounts
Women’s Wellness
• Non-grandfathered plans that renew or become effective on or after August 1, 2012 must include 100% coverage for women’s preventive services when performed by an in-network physician. Services include: prenatal care, additional gestational diabetes screening tests, lactation support, and FDA approved contraceptive methods
Summary of Benefits and Coverage - - - DELAYED!
• Group health plans must provide a uniform summary of benefits and coverage document to individuals at enrollment and re-enrollment. If plan changes are made during the year a new document must be distributed 60 days prior to the effective date of the change. This requirement, originally effective as of March 23, 2012, has been delayed until September 23, 2012.
90-Day Maximum Waiting Period
• Starting in 2014, waiting periods for coverage are limited to 90 days. Existing plans will need to be amended to reduce waiting periods. Group health plans and insurers may need to begin preparing for this change in 2012.
MLR Reporting
• The medical loss ratio (MLR) provision requires health plan issuers to meet new minimum medical spending requirements. Using 2011 data, insurers in 2012 may be faced with rebating policyholders if the MLR ratios are not met.
This information is for educational purposes only and should not be construed as legal or tax advice. Please refer to your attorney or tax advisor for additional information or guidance.
Sources: www.irs.gov; www.natlawreview.com; www.shrm.org
Capture Your Audience with “Sticky” Content (Part 2) by Parham Nabatian
03/15/2012 06:48PM
This is Part 2 of our blog post, “Capture Your Audience with ‘Sticky’ Content”, (Read Part 1). In this post you will learn 3 easy ways to create content that captures your audience’s attention.
#4 Use Authoritative Sources
This principle is used to build immediate credibility with your audience.
Let’s say you’re in the market to buy a book to help strengthen your sales skills. You might have never heard about the book “The Ultimate Sales Machine” – but as soon as you see that sticker that say “NY Times Best Seller” and “Amazon.com Bestseller” you know it’s worth checking out. This is referred to as an “authoritative statement.”
You are more likely to trust that product because an authority on that field says it is worth reading. Other similar examples are “As Seen on TV”, and “Featured in Inc Magazine.”
Celebrity endorsements are the second way to prove credibility. Don’t worry if Oprah didn’t pick your product for her favorites before her show ended. You can still creatively use celebrity endorsements.
For example, if you are a financial planner you could gain credibility by writing a blog post that references Alan Greenspan.
#5 Strike An Emotional Chord
The “emotional” principle focuses on answering the question, “How do we make people care about our message?”
One of the best ways you can implement this principle is to create an association between your topic and something your audience can relate with.
We recently gave a presentation on “What Makes A Website Great?” Our goal was to make the audience understand the downfalls of a bad website and how it reflects poorly on their business. Instead of diving into our morning PowerPoint presentation, we first asked the room full of 30 people “How many of you have ever been into a store, where you can’t find what you’re looking for and the first thing the store employee does is come up to you and try to sell you something?” Every one raised their hands – with a groan, looking at each other, hating that exact situation.
“Well sorry to say it, but that’s how most of you are making people feel when they come to your website.” It struck an emotional chord. People could relate to the feeling, and it was much easier for them to understand the importance of having a website with great navigation and informative content.
#6 Tell A Story
“If I look at the mass, I will never act. If I look at one, I will” Mother Teresa once said. That is why we recommend creating your content to focus on one person’s specific story and telling their struggle, show their worry & pain, and then highlight what you did to help.
In 2000, Subway first ran their TV ads that went something like this:
“This is Jared,” the announcer said. “He used to weight 425 pounds” – we see a photo of Jared in his old 60-ince waist pants – “but today he weighs 180 thanks to what he calls the Subway diet.” The announcers describes Jared’s meal plan, and how when combined with a lot of walking – overtime it lead to his extreme weight loss.”
Subways sales immediately picked up, and since then Jared has made it easier for all of us to remember where we can go to eat, when we are trying to watch our figure.
Instead of telling you to eat Subway because it’s healthy, they highlighted Jared’s story and showed you an image of him standing in his old big pants that you will never forget.
Remember, you can extract a moral from a story, but you can’t extract a story from a moral.
People will always remember your stories and not the facts in your content. That is because stories ignite feelings. People forget facts, but not how you make them feel.
#4 Use Authoritative Sources
This principle is used to build immediate credibility with your audience.
Let’s say you’re in the market to buy a book to help strengthen your sales skills. You might have never heard about the book “The Ultimate Sales Machine” – but as soon as you see that sticker that say “NY Times Best Seller” and “Amazon.com Bestseller” you know it’s worth checking out. This is referred to as an “authoritative statement.”
You are more likely to trust that product because an authority on that field says it is worth reading. Other similar examples are “As Seen on TV”, and “Featured in Inc Magazine.”
Celebrity endorsements are the second way to prove credibility. Don’t worry if Oprah didn’t pick your product for her favorites before her show ended. You can still creatively use celebrity endorsements.
For example, if you are a financial planner you could gain credibility by writing a blog post that references Alan Greenspan.
#5 Strike An Emotional Chord
The “emotional” principle focuses on answering the question, “How do we make people care about our message?”
One of the best ways you can implement this principle is to create an association between your topic and something your audience can relate with.
We recently gave a presentation on “What Makes A Website Great?” Our goal was to make the audience understand the downfalls of a bad website and how it reflects poorly on their business. Instead of diving into our morning PowerPoint presentation, we first asked the room full of 30 people “How many of you have ever been into a store, where you can’t find what you’re looking for and the first thing the store employee does is come up to you and try to sell you something?” Every one raised their hands – with a groan, looking at each other, hating that exact situation.
“Well sorry to say it, but that’s how most of you are making people feel when they come to your website.” It struck an emotional chord. People could relate to the feeling, and it was much easier for them to understand the importance of having a website with great navigation and informative content.
#6 Tell A Story
“If I look at the mass, I will never act. If I look at one, I will” Mother Teresa once said. That is why we recommend creating your content to focus on one person’s specific story and telling their struggle, show their worry & pain, and then highlight what you did to help.
In 2000, Subway first ran their TV ads that went something like this:
“This is Jared,” the announcer said. “He used to weight 425 pounds” – we see a photo of Jared in his old 60-ince waist pants – “but today he weighs 180 thanks to what he calls the Subway diet.” The announcers describes Jared’s meal plan, and how when combined with a lot of walking – overtime it lead to his extreme weight loss.”
Subways sales immediately picked up, and since then Jared has made it easier for all of us to remember where we can go to eat, when we are trying to watch our figure.
Instead of telling you to eat Subway because it’s healthy, they highlighted Jared’s story and showed you an image of him standing in his old big pants that you will never forget.
Remember, you can extract a moral from a story, but you can’t extract a story from a moral.
People will always remember your stories and not the facts in your content. That is because stories ignite feelings. People forget facts, but not how you make them feel.
Medicare – more money doesn’t fix bad management! by Gregory N. Lippe
03/15/2012 06:39PM
In an effort to reduce Medicare costs and the nation’s deficit (by an estimated $33 billion over 10 years) President Obama’s budget proposals include several Medicare cost changes that will (if passed) apply to beneficiaries who become eligible in 2017. The changes include: higher income-related premiums under Medicare Parts B and D, a new Part B premium surcharge (equivalent to 30 percent of the Part B premium) for those who purchase a type of Medigap plan that covers substantially all Medicare copayments (under the theory, supposedly supported by research, that beneficiaries with Medigap plans of this type are less conscious of the costs of the services resulting in higher use by these beneficiaries thereby raising Medicare costs and Part B premiums for all beneficiaries), a $75 increase ($25 in 2017, 2019 and 2021) in Part B deductibles and a home health care copayment.
Although there is significant opposition to these proposed changes, if one considers that we must reduce the deficit and that there are only two ways of doing that, reduce costs or increase revenues (the “T” word, which seems intolerable to many members of Congress and many voters), the idea of altering a program for future participants, instead of eliminating the system completely, sounds reasonable. Upon further consideration, however, it doesn’t seem reasonable when one considers that those participants who will be affected by having to pay more for their healthcare have already paid into the system all of their working lives with the promise of receiving the same coverage that exists now. The idea becomes even more unreasonable when one realizes that this is an attempt to cover up a problem by throwing money at it instead of fixing the real problem, which is poor management of the Medicare system.
An example of Medicare’s poor management is a patient that was receiving a medication for which Medicare was paying $427 per month. Medicare decided (without looking into the reason for the cost or if it could be reduced) to no longer pay to provide the medication. The impact on the patient was substantial resulting in hospitalization and surgery at substantial costs that are still mounting and could reach $100,000.00. If someone had decided to research the medication they would have discovered that instead of paying $427 per month for the brand name, they could have purchased a quality generic for $64 per month. Instead Medicare paid approximately 600 percent more than it needed to for many months and incurred substantial hospitalization charges due to a poor decision to eliminate the medication entirely rather than find a less expensive solution.
The Time is Now to Manage Your Employment Practices Exposure by Jeff Newman
03/08/2012 10:56AM
Unfortunately, this area of liability is just getting worse. With the economy still struggling and employment still down, claims have seen significant increases. In 2010, the U.S. Equal Employment Opportunity Commission (EEOC) reported 99,922 charges filed for harassment, and harassment charge receipts filed and resolved were $319.4 million.
As litigation and damage awards continue to rise, it is predicted that employment liability will only become more complex. Employers must limit their exposure by focusing on:
- Desirable Human Resource policies and procedures
- Employment Practices Liability (EPL) Insurance Coverage
EPL insurance works hand-in-hand with your internal employment practices to provide the necessary resources to defend your company against a suit or to pay a claim. However, managing your exposure can save you time (administratively defending a suit can be arduous) and money (deductibles, increased premiums, and payments excess of your limits). The three most common employment-related lawsuits today are:
- Wrongful termination - the discharge of an employee for invalid reasons
- Discrimination - the denial of equal treatment of workers who are members of a protected class
- Sexual Harassment - when a worker is subject to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior
There are ways an organization can help prevent claims from happening by being proactive as it relates to process and procedure within the company. The first thing an organization must do is conduct an HR audit to review:
- Employee Handbook
- Recruitment and hiring practices
- Disciplinary and termination practices
- Performance review requirements
- Promotion and demotion procedures
- Workplace rules
- Training and supervision of employee
The behavior of your employees and management is critical to preventing claims. As a result, training is a must! What seems obvious to you may not be the case for an employee. It is your responsibility to point out what is appropriate and what is not. In fact, in California AB 1825 makes it a requirement for companies with 50 or more employees to provide 2 hours of Sexual Harassment Training for all managers/supervisors every two years. There is no question that an investment of time and resources up front will help any organization down the road manage their Employment Practices Exposure. Not only will it help defend a claim because of proper policies and procedures, but may prevent the claim from happening at all, and wouldn’t that be nice!
Employee Benefits Require Interaction and Education by Amy Evans
03/08/2012 10:49AM
Employee benefits get the best participation, utilization and appreciation when employees have the opportunity to interact directly with insurance representatives during open enrollment meetings. Business that offer employee benefits have an annual "open enrollment" period when employees can make additions and changes to their coverage.
Many businesses seem to be moving away from traditional face-to-face meetings and trending towards passive or online enrollments, where employees are given their benefit options by mail, email or intranet, along with enrollment forms and a deadline for making elections. These passive enrollments seem to save time, materials and energy. Overworked human resources departments don't have to coordinate meetings, track attendance or put together packets of benefits information for distribution. Production doesn't have to shut down for hours so that employees can sit through (often boring and tedious) meetings about their insurance options. Employees can review their options and make elections from home. Great for everyone, right?
The problem with this trend is that it doesn't provide the same level of education and information, and it doesn't give employees the opportunity to really understand and appreciate their overall benefits package. Face-to-face benefits meetings give employees the opportunity to hear about ALL of their options (not just the ones they think they want or understand) and insurance representatives can be on hand to answer questions, both during the meetings (so everyone benefits from the information) and after the meetings (so employees can ask questions about personal situations that they might not want to share with their co-workers).
Employee benefits are complex, and most employees don't invest the time to understand them until they have a health issue. Then they are often overwhelmed with the physical, emotional and financial aspects of their situation. Employers invest an incredible amount of time and money to create benefits packages that will allow them to attract and retain the best employees and remain competitive, and then many of them don't give the benefits the attention they deserve.
Employee benefits are also evolving - they are less about what the employer pays for and more about the options that the employer provides. But these options have to be partnered with education, so employees can make the best choices for themselves and their families. And this is true every year, not just at the initial enrollment, or when a new employee becomes eligible for benefits.
From year to year, employees experience life changes like marriages and births, as well as changes in their health that may affect their insurance needs. Medical coverage can also change from year to year, with deductibles, co-pays and co-insurance steadily increasing under most employer-sponsored plans.
The employee benefits landscape will continue to change, and employers who want their employees to understand, utilize and appreciate their benefits will be wise to invest the time and resources in annual open enrollment meetings, so employees can make the best decisions about their benefits packages.
Amy Evans is a Special Project Coordinator for Aflac’s Sherman Oaks Regional Office. Amy has been an independent agent with Aflac for nine years and works with regional and national insurance brokerages to acquire and maintain large and key accounts.
Many businesses seem to be moving away from traditional face-to-face meetings and trending towards passive or online enrollments, where employees are given their benefit options by mail, email or intranet, along with enrollment forms and a deadline for making elections. These passive enrollments seem to save time, materials and energy. Overworked human resources departments don't have to coordinate meetings, track attendance or put together packets of benefits information for distribution. Production doesn't have to shut down for hours so that employees can sit through (often boring and tedious) meetings about their insurance options. Employees can review their options and make elections from home. Great for everyone, right?
The problem with this trend is that it doesn't provide the same level of education and information, and it doesn't give employees the opportunity to really understand and appreciate their overall benefits package. Face-to-face benefits meetings give employees the opportunity to hear about ALL of their options (not just the ones they think they want or understand) and insurance representatives can be on hand to answer questions, both during the meetings (so everyone benefits from the information) and after the meetings (so employees can ask questions about personal situations that they might not want to share with their co-workers).
Employee benefits are complex, and most employees don't invest the time to understand them until they have a health issue. Then they are often overwhelmed with the physical, emotional and financial aspects of their situation. Employers invest an incredible amount of time and money to create benefits packages that will allow them to attract and retain the best employees and remain competitive, and then many of them don't give the benefits the attention they deserve.
Employee benefits are also evolving - they are less about what the employer pays for and more about the options that the employer provides. But these options have to be partnered with education, so employees can make the best choices for themselves and their families. And this is true every year, not just at the initial enrollment, or when a new employee becomes eligible for benefits.
From year to year, employees experience life changes like marriages and births, as well as changes in their health that may affect their insurance needs. Medical coverage can also change from year to year, with deductibles, co-pays and co-insurance steadily increasing under most employer-sponsored plans.
The employee benefits landscape will continue to change, and employers who want their employees to understand, utilize and appreciate their benefits will be wise to invest the time and resources in annual open enrollment meetings, so employees can make the best decisions about their benefits packages.
Amy Evans is a Special Project Coordinator for Aflac’s Sherman Oaks Regional Office. Amy has been an independent agent with Aflac for nine years and works with regional and national insurance brokerages to acquire and maintain large and key accounts.
International Pow Wow Coming to Los Angeles April 21-25, 2012 by Carol Martinez
03/08/2012 10:36AM
The U.S. Travel Association’s International Pow Wow is the travel industry's premier international marketplace. This year, 2012 International Pow Wow is taking place in Los Angeles, April 21 -25, 2012. In just three days of intensive pre-scheduled business appointments, more than 1,000 U.S. travel organizations from every region of the USA (representing all industry category components), and more than 1,200 International and Domestic Buyers from more than 70 countries, conduct business negotiations that result in the generation of over $3.5 billion in future Visit USA travel. International Pow Wow is taking place at the Los Angeles Convention Center.
Los Angeles will see an immediate economic impact of $9.7 million as a result of hosting International Pow Wow, and another estimated $350 million two to four years following Pow Wow because of the expected increase of international travel business.
On Saturday and Sunday, prior to the business at the Los Angeles Convention Center, Pow Wow delegates will be able to participate in tours that will take place throughout Los Angeles. One of the tours is an opportunity to explore the San Fernando Valley and its hidden gems. Delegates will pay a visit to the 76-acre Stoney Point Park and the Ronald Reagan Presidential Library. They will also visit the nearby Mission San Fernando Rey de España, and learn about California’s El Camino Real and view the relics of centuries past.
On Sunday, April 22, more than 400 international and domestic journalists will gather for a media brunch at the Natural History Museum of Los Angeles County. Following the brunch, media tours will depart, giving the journalists opportunities to explore the dynamic neighborhoods of Los Angeles. One of the 14 media tours is a trip to the San Fernando Valley where journalists will be able to sample some of the best Mexican food in LA at Casa Vega and Loteria! Grill. Journalists will then get a sampling of the arts in the Valley with a visit to NoHo and its NoHo Gallery and Gallery 800. This tour will conclude with a chance to learn some dance moves at Millennium Dance Complex.
The delegates will be staying at one of 11 host hotels during Pow Wow, including the Hilton Los Angeles/Universal City Hotel.
If you are interested in volunteering during International Pow Wow, there are many opportunities to choose from, such as: helping visitors board sightseeing coaches; supporting Event Management with set-up/clean-up and hospitality assistance; taking shifts at LAX as part of the Delegate Welcoming Team at the welcome desk, in baggage claim, or at the shuttle island; and assisting delegates in the registration area or at the information desk at the Los Angeles Convention Center.
Registration is easy at https://app.volunteer2.com/Public/Organization/ee0dbdb1-0390-4d04-b5e2-342e0e536dca. Then, match your abilities with a job, and sign up. For more information, contact Robert Butler, Assistant Project Manager for LA INC. at rbutler@lainc.us
The last time Los Angeles hosted International Pow Wow was in 2004. We are excited to showcase the many changes that have taken place throughout the City and the Valley since then, and hope you have an opportunity to experience International Pow Wow in some capacity as well.
Los Angeles will see an immediate economic impact of $9.7 million as a result of hosting International Pow Wow, and another estimated $350 million two to four years following Pow Wow because of the expected increase of international travel business.
On Saturday and Sunday, prior to the business at the Los Angeles Convention Center, Pow Wow delegates will be able to participate in tours that will take place throughout Los Angeles. One of the tours is an opportunity to explore the San Fernando Valley and its hidden gems. Delegates will pay a visit to the 76-acre Stoney Point Park and the Ronald Reagan Presidential Library. They will also visit the nearby Mission San Fernando Rey de España, and learn about California’s El Camino Real and view the relics of centuries past.
On Sunday, April 22, more than 400 international and domestic journalists will gather for a media brunch at the Natural History Museum of Los Angeles County. Following the brunch, media tours will depart, giving the journalists opportunities to explore the dynamic neighborhoods of Los Angeles. One of the 14 media tours is a trip to the San Fernando Valley where journalists will be able to sample some of the best Mexican food in LA at Casa Vega and Loteria! Grill. Journalists will then get a sampling of the arts in the Valley with a visit to NoHo and its NoHo Gallery and Gallery 800. This tour will conclude with a chance to learn some dance moves at Millennium Dance Complex.
The delegates will be staying at one of 11 host hotels during Pow Wow, including the Hilton Los Angeles/Universal City Hotel.
If you are interested in volunteering during International Pow Wow, there are many opportunities to choose from, such as: helping visitors board sightseeing coaches; supporting Event Management with set-up/clean-up and hospitality assistance; taking shifts at LAX as part of the Delegate Welcoming Team at the welcome desk, in baggage claim, or at the shuttle island; and assisting delegates in the registration area or at the information desk at the Los Angeles Convention Center.
Registration is easy at https://app.volunteer2.com/Public/Organization/ee0dbdb1-0390-4d04-b5e2-342e0e536dca. Then, match your abilities with a job, and sign up. For more information, contact Robert Butler, Assistant Project Manager for LA INC. at rbutler@lainc.us
The last time Los Angeles hosted International Pow Wow was in 2004. We are excited to showcase the many changes that have taken place throughout the City and the Valley since then, and hope you have an opportunity to experience International Pow Wow in some capacity as well.
The Time is Now to Manage Your Employment Practices Exposure by Jeff Newman
02/23/2012 06:05PM
Unfortunately, this area of liability is just getting worse. With the economy still struggling and employment still down, claims have seen significant increases. In 2010, the U.S. Equal Employment Opportunity Commission (EEOC) reported 99,922 charges filed for harassment, and harassment charge receipts filed and resolved were $319.4 million.
As litigation and damage awards continue to rise, it is predicted that employment liability will only become more complex. Employers must limit their exposure by focusing on:
- Desirable Human Resource policies and procedures
- Employment Practices Liability (EPL) Insurance Coverage
EPL insurance works hand-in-hand with your internal employment practices to provide the necessary resources to defend your company against a suit or to pay a claim. However, managing your exposure can save you time (administratively defending a suit can be arduous) and money (deductibles, increased premiums, and payments excess of your limits). The three most common employment-related lawsuits today are:
- Wrongful termination - the discharge of an employee for invalid reasons
- Discrimination - the denial of equal treatment of workers who are members of a protected class
- Sexual Harassment - when a worker is subject to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior
There are ways an organization can help prevent claims from happening by being proactive as it relates to process and procedure within the company. The first thing an organization must do is conduct an HR audit to review:
- Employee Handbook
- Recruitment and hiring practices
- Disciplinary and termination practices
- Performance review requirements
- Promotion and demotion procedures
- Workplace rules
- Training and supervision of employee
The behavior of your employees and management is critical to preventing claims. As a result, training is a must! What seems obvious to you may not be the case for an employee. It is your responsibility to point out what is appropriate and what is not. In fact, in California AB 1825 makes it a requirement for companies with 50 or more employees to provide 2 hours of Sexual Harassment Training for all managers/supervisors every two years. There is no question that an investment of time and resources up front will help any organization down the road manage their Employment Practices Exposure. Not only will it help defend a claim because of proper policies and procedures, but may prevent the claim from happening at all, and wouldn’t that be nice!
Capture Your Audience with “Sticky” Content by Parham Nabatian
02/23/2012 06:00PM
Lets face it, if you are a business owner, corporate manager, or run a non profit, you may not have been trained to be a magazine editor, but when it comes to developing content for your company blog, and online marketing, you need to think like an editor at a magazine. Why? Because an editor’s job is to create content that is interesting and valuable enough to sell their respective publication. If your desire is for people to consistently visit your website & share your company’s messages, than taking this approach is a must.
We highly regard a book called MADE TO STICK and use it often to create our own content. The book establishes what they call a “SUCCESs Model”, which encompasses 6 different principles that make a “sticky idea.” According to the book, a “sticky idea is understood, it’s remembered, and it changes something.” You do want to be understood and remembered right?!
Below you will discover the first 3 of the 6 principles of the “SUCCESs Model.”
Principle #1 Simplicity
This is where you prioritize the information you want people to share about your organization. Try filling in the blank below…
The single most important thing our organization does is _________________.
Southwest Airlines would answer that question with “provide the lowest fare.”
If you’re a real estate agent what would it be, is “help people find homes?” Or “pick the perfect house in the perfect community.” After you establish this, you should create content that proves it.
Principle #2 Unexpected
People generally carry preconceived notions about industries and businesses, so how does your business change those notions? Would you believe that Nordstrom employees are encouraged to iron your shirt even if you bought it from Macy’s … this is a perfect example of unexpected customer service that builds affinity.
Surprise us! What are the preconceived notions people have about your profession/organization and what stories do you have to change those. Share those with stories with us.
Principle #3 Concrete
Whenever you hear the phrase “sour grapes,” you automatically refer to Aesop’s fable. Every person who has tasted something sour and has eaten a grape can imagine that phrase. The “Concrete principle” is about using sensory and specific language to engrave a feeling or idea in someone’s mind.
A common way marketing and advertising professionals use this principle is instead of saying “we will create more business for your company,” they will say “we will have your phones ringing off the hook.” This paints a picture for the audience and allows the them to imagine their desired outcome.
Think of how you can use sensory language in your messages so they become engraved in our minds.
These are the first three principles; please visit back with us for part 2 where we share the remaining principles.
Workers Compensation Trends by Lionel McCray
02/17/2012 09:50AM
Guess what happens when insurance companies lose money? You know the answer, they increase premiums. Workers Compensation carriers are going into their 4th consecutive unprofitable year. The average insurer is spending $1.25 for every dollar of premium received. Expect substantial premium increases in California Workers Compensation ahead.
Potential negative underwriting and pricing actions are concerning enough by themselves. But they are only half of the picture. Just as important is the Experience Modification Factor, which can dramatically increase the actual premium paid. When carrier loss ratios are in the unprofitable range, it is obvious that many employers will also have poor loss histories as compared to their premiums paid. This will push their modifier higher. That modifier sticks with you for several years, penalizing you for your prior losses.
This is an example of what a change of Experience Modifier and Underwriter pricing can have on your policy, even if the base rate is not changed.
http://www.vica.com/Workers%20comp%20chart.jpg
What factors are driving the poor results?
-Average costs of an indemnity claim have risen 35% from 2003 ($61,664 vs. $45,642)
-Average Medical costs have increased 63% since 2003 ($42,613 vs. $26,108)
What can you do?
1. Actively work to prevent injury and illness in your workforce with a joint safety/wellness program. Obesity, smoking and diabetes dramatically increase the costs of work comp claims.
2. Demand consistent, aggressive claims management practices. If there is an open claim you should know why, and what steps are being taken to close it.
Workers' Compensation: Four Mistakes Employers Can Make by Calvin Hedman
02/17/2012 09:41AM
Many employers look at Workers' Compensation as just another unavoidable cost of doing business. It's usually one of those out-of-sight, out-of-mind issues when rates are low. It's not until employers are hit with rate hikes that they really start to give some thought to it.
Employers need to look at Workers' Compensation as a tool to improve the bottom line, and they certainly need to make an effort to keep their rates low over the long-term so they can take advantage of some significant savings.
Here are four mistakes made by employers that can deter their Workers' Compensation savings:
1. Don't assume that lower rates equate to lower costs.
Don't make the faulty assumption that your cost will automatically go down just because your rates have been reduced. Workers' Compensation insurers use an experience modification factor to examine the actual losses incurred by the insured company to establish cost. The actual losses are compared to other industry-alike companies. If the insured company's past losses are below average, then the insurer gives the company a credit rating lowering their premium, but an added surcharge is applied to the premium if the insured company's past losses are above average.
2. Don't believe employers have little control when it comes to the expense of Workers' Compensation.
Employers know they must have Workers' Compensation insurance. However, this acknowledgment shouldn't lend to an employer thinking they've got to pay excessively for it. Cost reduction starts with the hiring process. Initiate effective interview techniques and background checks to help ensure the right people are hired for the right jobs. That said, there's no way to completely eliminate the possibility of injuries in a workplace.
Therefore, it's equally important to have an effective return-to-work program in place to simultaneously assist injured workers return to work as soon as possible and reduce the cost of their claims.
3. Don't neglect or de-emphasize cost containment and injury management during low rate periods.
Safety should be an unyielding focus at all times. This will not only help a company reduce their claim numbers, but also keep their rates low over the long-term. Employers need to keep an eye on the issues that frequently impact the costs of claims, such as medical care costs and lost wages. Also, remember that open claims mean escalating costs and negative impacts to the company's modification factor. Of course, this causes an increased cost for coverage.
4. Don't ignore the association between cost containment and worker retention.
Studies have shown that fewer accidents occur among skilled workforces, but even skilled workers can have an accident. A large factor in whether or not an injured skilled employee returns to work is based on how the employer responds to the individual during and after recovery.
An important part of an employer's response is having a return-to-work program that includes maintaining constant contact with injured workers and their health care providers to monitor how they're recovering and when and how they can get back to work as soon as possible. Skilled employees are more likely to return if they are kept in the loop with a return-to-work program's periodic phone calls about workplace changes that might be occurring in their absence. On the other hand, skilled employees that feel forgotten, undervalued, and disconnected are less likely to return.
Employers need to look at Workers' Compensation as a tool to improve the bottom line, and they certainly need to make an effort to keep their rates low over the long-term so they can take advantage of some significant savings.
Here are four mistakes made by employers that can deter their Workers' Compensation savings:
1. Don't assume that lower rates equate to lower costs.
Don't make the faulty assumption that your cost will automatically go down just because your rates have been reduced. Workers' Compensation insurers use an experience modification factor to examine the actual losses incurred by the insured company to establish cost. The actual losses are compared to other industry-alike companies. If the insured company's past losses are below average, then the insurer gives the company a credit rating lowering their premium, but an added surcharge is applied to the premium if the insured company's past losses are above average.
2. Don't believe employers have little control when it comes to the expense of Workers' Compensation.
Employers know they must have Workers' Compensation insurance. However, this acknowledgment shouldn't lend to an employer thinking they've got to pay excessively for it. Cost reduction starts with the hiring process. Initiate effective interview techniques and background checks to help ensure the right people are hired for the right jobs. That said, there's no way to completely eliminate the possibility of injuries in a workplace.
Therefore, it's equally important to have an effective return-to-work program in place to simultaneously assist injured workers return to work as soon as possible and reduce the cost of their claims.
3. Don't neglect or de-emphasize cost containment and injury management during low rate periods.
Safety should be an unyielding focus at all times. This will not only help a company reduce their claim numbers, but also keep their rates low over the long-term. Employers need to keep an eye on the issues that frequently impact the costs of claims, such as medical care costs and lost wages. Also, remember that open claims mean escalating costs and negative impacts to the company's modification factor. Of course, this causes an increased cost for coverage.
4. Don't ignore the association between cost containment and worker retention.
Studies have shown that fewer accidents occur among skilled workforces, but even skilled workers can have an accident. A large factor in whether or not an injured skilled employee returns to work is based on how the employer responds to the individual during and after recovery.
An important part of an employer's response is having a return-to-work program that includes maintaining constant contact with injured workers and their health care providers to monitor how they're recovering and when and how they can get back to work as soon as possible. Skilled employees are more likely to return if they are kept in the loop with a return-to-work program's periodic phone calls about workplace changes that might be occurring in their absence. On the other hand, skilled employees that feel forgotten, undervalued, and disconnected are less likely to return.
Los Angeles Experiences Record All-Time High for Total Visitors in 2011 by Carol Martinez
02/17/2012 09:38AM
Los Angeles experienced the largest number of visitors and spending in the history of the city in 2011. A total of approximately 26.9 million people visited LA in 2011, an increase of 4.2 percent more overnight visitors than in 2010. Tourist spending rose as well with visitors accounting for $15.2 billion in expenditures – an 8 percent increase from the previous year.
International visitors made one of the largest impacts on LA’s tourism with 5.9 million visitors to the City, a 7 percent increase over last year. International travelers also had a visible increase in spending— 12 percent more in 2011—totaling nearly $5.5 billion in revenue.
In addition to an increase in international visitors, domestic travelers increased by over 2 percent. These visitors spent more than $9.7 billion – a five percent increase over last year.
In 2011, lodging in the Valley broke the 70 percent barrier at 70.9 percent (up 4.9 percent over 2010). And the Average Daily Room Rate was $102.59 (up 2.6 percent over 2010). No records were set, but occupancy in 2011 was the highest in the 2008-2011 period (4 year high), and 2011 ADR was the highest for 2009-2011 (3 year high). Room nights sold were the highest since 2006 (5 year high).
2012 promises to be a blockbuster year for Los Angeles with major new attractions including Universal Studios Hollywood launch of “Transformers The Ride–3D” this May and the arrival NASA space shuttle Endeavor, which will retire at the California Science Center in 2012.
“With the increasing popularity of the iconic backlot Studio Tour including the very highly rated King Kong 360 3D experience, Universal Studios Hollywood enjoyed significant growth in international visitation in 2011,” said Larry Kurzweil, President, Universal Studios Hollywood. “As we set the stage to launch ‘Transformers: The Ride–3D,’ the Park’s most technologically-advanced thrill ride ever built, we’re prepared to see our tourism numbers increase dramatically when the ride opens in May 2012.”
International visitors made one of the largest impacts on LA’s tourism with 5.9 million visitors to the City, a 7 percent increase over last year. International travelers also had a visible increase in spending— 12 percent more in 2011—totaling nearly $5.5 billion in revenue.
In addition to an increase in international visitors, domestic travelers increased by over 2 percent. These visitors spent more than $9.7 billion – a five percent increase over last year.
In 2011, lodging in the Valley broke the 70 percent barrier at 70.9 percent (up 4.9 percent over 2010). And the Average Daily Room Rate was $102.59 (up 2.6 percent over 2010). No records were set, but occupancy in 2011 was the highest in the 2008-2011 period (4 year high), and 2011 ADR was the highest for 2009-2011 (3 year high). Room nights sold were the highest since 2006 (5 year high).
2012 promises to be a blockbuster year for Los Angeles with major new attractions including Universal Studios Hollywood launch of “Transformers The Ride–3D” this May and the arrival NASA space shuttle Endeavor, which will retire at the California Science Center in 2012.
“With the increasing popularity of the iconic backlot Studio Tour including the very highly rated King Kong 360 3D experience, Universal Studios Hollywood enjoyed significant growth in international visitation in 2011,” said Larry Kurzweil, President, Universal Studios Hollywood. “As we set the stage to launch ‘Transformers: The Ride–3D,’ the Park’s most technologically-advanced thrill ride ever built, we’re prepared to see our tourism numbers increase dramatically when the ride opens in May 2012.”
Advertising Trends for 2012 by John Rodriguez
02/09/2012 05:25PM
It is said 2012 is to be an interesting year for many obvious reasons. In regard to advertising, most media is still recovering from the recession, while outdoor advertising has grown by approximately 4.4 percent in 2011.
Due to 2012 being a political election year, and the Olympics about to kick off, outdoor advertising will see a significant increase in business. However, these are seasonal events that will generate a revenue boost-but will not last forever.
So what other industry will help outdoor advertising revenues this year? The automotive industry, it is another revenue booster due to their planned increase of $460 million in advertising revenue this year. Due to the economy slowly coming back, the automotive industry will be incentivizing consumers to buy cars due to a better financial state the automotive industry feels very confident about.
Outdoor advertising is second only to internet advertising. It’s no wonder why, companies from small to large are interested in the maximum amount of impressions for their ad dollars and outdoor advertising is the best way for “maximum impact”. Click here for more details about why this will be a thriving year for the outdoor advertising industry.
Due to 2012 being a political election year, and the Olympics about to kick off, outdoor advertising will see a significant increase in business. However, these are seasonal events that will generate a revenue boost-but will not last forever.
So what other industry will help outdoor advertising revenues this year? The automotive industry, it is another revenue booster due to their planned increase of $460 million in advertising revenue this year. Due to the economy slowly coming back, the automotive industry will be incentivizing consumers to buy cars due to a better financial state the automotive industry feels very confident about.
Outdoor advertising is second only to internet advertising. It’s no wonder why, companies from small to large are interested in the maximum amount of impressions for their ad dollars and outdoor advertising is the best way for “maximum impact”. Click here for more details about why this will be a thriving year for the outdoor advertising industry.
California Workers Compensation-Just the Facts by Chris Mitchell
02/09/2012 05:18PM
By now, you’ve probably been inundated with reports on the California Workers Compensation market. Many have dwelled on the fact that pure premium rates are up 37 percent. While the pure premium rates are indicative of increased costs in the system, carriers in California have for many years had all the tools needed to increase rates. In fact, the top 100 workers compensation carriers filed for an average rate increase of just 2.8 percent effective January 1, 2012.
The real impetus behind rate increases is financial performance and market dynamics. Overall, many property and casualty carriers saw earnings plummet in 2011 driven by volatility among the economic indexes, natural catastrophe losses, and deteriorating underwriting results. In California, workers compensation carriers have seen their combined ratios climb from 55 percent in 2005 to 130 percent as of September 2011. Average costs per indemnity claim hit an all time high in 2010 at $64k with frequency increasing for the first time in almost a decade. And, it’s not just losses. Expenses (LAE and other) have risen from 24 percent of combined in 2005 to 46 percent in 2011 on an accident year basis.
As a result, many carriers have already taken a hard stance on pricing, especially California workers compensation. Carrier actions include multi-line leveraging, a shift to risk sharing with improvement in rating plan parameters or simply walking away from unprofitable business. Carriers will test the market attempting to maximize the rate and retention trade-off. If market dynamics allow for rate increases, carriers will take full advantage. There is significant pressure on strengthening the balance sheet and achieving an acceptable rate of return on capital.
This is familiar territory for companies operating in California. Businesses that have implemented effective controls and enjoy favorable loss experience may see a reduction in costs or nominal increase to cover higher carrier expenses. Carriers will compete for profitable business. Companies that have seen loss rates deteriorate should prepare for a potentially significant increase. The message remains unchanged - the best way to control costs over time is to assure you have an effective risk management plan in place and a thorough understanding of carrier offerings. We cannot expect the market and/or regulators to help us control costs in 2012.
Christopher R. Mitchell is Senior Vice President, Commercial Lines at USI of Southern California Insurance Services
The real impetus behind rate increases is financial performance and market dynamics. Overall, many property and casualty carriers saw earnings plummet in 2011 driven by volatility among the economic indexes, natural catastrophe losses, and deteriorating underwriting results. In California, workers compensation carriers have seen their combined ratios climb from 55 percent in 2005 to 130 percent as of September 2011. Average costs per indemnity claim hit an all time high in 2010 at $64k with frequency increasing for the first time in almost a decade. And, it’s not just losses. Expenses (LAE and other) have risen from 24 percent of combined in 2005 to 46 percent in 2011 on an accident year basis.
As a result, many carriers have already taken a hard stance on pricing, especially California workers compensation. Carrier actions include multi-line leveraging, a shift to risk sharing with improvement in rating plan parameters or simply walking away from unprofitable business. Carriers will test the market attempting to maximize the rate and retention trade-off. If market dynamics allow for rate increases, carriers will take full advantage. There is significant pressure on strengthening the balance sheet and achieving an acceptable rate of return on capital.
This is familiar territory for companies operating in California. Businesses that have implemented effective controls and enjoy favorable loss experience may see a reduction in costs or nominal increase to cover higher carrier expenses. Carriers will compete for profitable business. Companies that have seen loss rates deteriorate should prepare for a potentially significant increase. The message remains unchanged - the best way to control costs over time is to assure you have an effective risk management plan in place and a thorough understanding of carrier offerings. We cannot expect the market and/or regulators to help us control costs in 2012.
Christopher R. Mitchell is Senior Vice President, Commercial Lines at USI of Southern California Insurance Services
Outdoor advertising Viet Nam style by Gregory N. Lippe
02/02/2012 12:51PM
Barbara (my wife) and I recently returned from a vacation in Viet Nam. While there, we decided to check out the local English language newspaper, the VIET NAM NEWS. We were surprised to see that Viet Nam is grappling with an issue similar to that of Los Angeles.
The issue relates to outdoor advertising. As many of you know, a new ordinance is in the works in Los Angeles to amend the citywide sign regulations. The stated purpose of the ordinance is to promote public safety and welfare by regulating signs in keeping with the following objectives:
A. That the design, construction, installation, repair and maintenance of signs will not interfere with traffic safety or otherwise endanger public safety.
B. That the regulations will provide reasonable protection to the visual environment by controlling the size, height, spacing and location of signs.
C. That both the public and sign users will benefit from signs having improved legibility, readability and visibility.
D. That consideration will be given to equalizing the opportunity for messages to be displayed.
E. That adequacy of message opportunity will be available to sign users without dominating the visual appearance of the area.
Although nothing is mentioned as to content of messages, the City of Los Angeles must comply with the California Outdoor Advertising Act which prohibits any statements or words of an obscene, indecent or immoral character or any picture or illustration of a human figure in such detail as to offend public morals or decency. This prohibition is, of course, subject to interpretation by the courts and lawsuits by persons who believe their rights to freedom of speech have been denied or violated.
At first glance it appeared that the objectives of Hanoi’s new draft law were basically the same as ours. Their law would ban outdoor advertising that has a negative impact on the environment, traffic and public safety. However, upon further study significant differences began to immerge. In addition to the bans already mentioned, the Viet Nam law would ban advertising that discriminates against any group; shows national and racial discrimination; depicts stigma and discrimination against the disabled; portrays offenses against religious beliefs; and uses medical and pharmaceutical organizations’ and individuals’ fame, position or prestige for advertising medicines, and medical services. Furthermore, proposed changes to the draft law include providing a list of conditions for advertisements of milk products, vaccines or biological products. Such list would be periodically updated by the government. There is no process for appeal nor is there any basis for litigation to protect rights or freedoms because those concepts don’t exist. Needless to say, there is no VICA comparable organization in Viet Nam.
The issue relates to outdoor advertising. As many of you know, a new ordinance is in the works in Los Angeles to amend the citywide sign regulations. The stated purpose of the ordinance is to promote public safety and welfare by regulating signs in keeping with the following objectives:
A. That the design, construction, installation, repair and maintenance of signs will not interfere with traffic safety or otherwise endanger public safety.
B. That the regulations will provide reasonable protection to the visual environment by controlling the size, height, spacing and location of signs.
C. That both the public and sign users will benefit from signs having improved legibility, readability and visibility.
D. That consideration will be given to equalizing the opportunity for messages to be displayed.
E. That adequacy of message opportunity will be available to sign users without dominating the visual appearance of the area.
Although nothing is mentioned as to content of messages, the City of Los Angeles must comply with the California Outdoor Advertising Act which prohibits any statements or words of an obscene, indecent or immoral character or any picture or illustration of a human figure in such detail as to offend public morals or decency. This prohibition is, of course, subject to interpretation by the courts and lawsuits by persons who believe their rights to freedom of speech have been denied or violated.
At first glance it appeared that the objectives of Hanoi’s new draft law were basically the same as ours. Their law would ban outdoor advertising that has a negative impact on the environment, traffic and public safety. However, upon further study significant differences began to immerge. In addition to the bans already mentioned, the Viet Nam law would ban advertising that discriminates against any group; shows national and racial discrimination; depicts stigma and discrimination against the disabled; portrays offenses against religious beliefs; and uses medical and pharmaceutical organizations’ and individuals’ fame, position or prestige for advertising medicines, and medical services. Furthermore, proposed changes to the draft law include providing a list of conditions for advertisements of milk products, vaccines or biological products. Such list would be periodically updated by the government. There is no process for appeal nor is there any basis for litigation to protect rights or freedoms because those concepts don’t exist. Needless to say, there is no VICA comparable organization in Viet Nam.
Discover the Arts Campaign Launched by Carol Martinez
02/02/2012 12:33PM
Now through April 30, 2012, visitors and residents can enjoy exclusive deals at over 40 acclaimed venues and a dozen premier hotels throughout the city with the “Discover the Arts” program. “Discover the Arts” offers deals such as two-for-one general admission, and discounts of up to 50 percent off regular prices. New for this year are specially designed “show & save” cards, available at Wells Fargo branches and Ralph’s supermarkets, that enable consumers to receive discounts throughout Discover the Arts without having to print out coupons, as was the case in years past. However, consumers can still opt to download special coupons for individual organizations.
The Autry National Center, formed in 2003 by the merger of the Autry Museum of Western Heritage with the Southwest Museum of the American Indian and the Women of the West Museum, is one of the participants this year. Located in Griffith Park, the Autry’s collection of over 500,000 pieces of art and artifacts, which includes the collection of the Southwest Museum of the American Indian, is one of the largest and most significant in the United States. From February 4 to March 18, 2012, the Autry National Center presents Masters of the American West Fine Art Exhibition and Sale, considered the country's most important Western art show.
Maintaining a healthy cash flow by Calvin Hedman
02/02/2012 12:29PM
In today's economic environment, one major concern for many businesses is maintaining a healthy cash flow.
If your company is feeling the squeeze of a tight economy -- and tight credit -- its ability to manage cash flow is critical. Enterprises that successfully practice good cash management generally survive and prosper; those that don't are likely to be undone by the weight of increasing debt and the inability to pay employees and suppliers.
Cash flow is the heartbeat of your business and keeping it stable requires juggling most aspects of your operation, including accounts receivables, payroll, credit and inventory.
With that in mind, here are a dozen strategies to strengthen your company's cash flow:
1. Take the maximum time to pay your suppliers. Essentially this amounts to an interest-free line of credit and gives you more time to use your working capital.
2. Check to see if your suppliers offer payment incentives. Some companies offer a discount for paying early. Even if your business regularly purchases a substantial amount from another company, you're in a good position to negotiate favorable payment terms. In addition to early payment incentives, ask for special terms that accommodate your cash flow requirements. For example, negotiate to make payments after your busy season.
Many suppliers are willing to offer incentives in order to speed up their own receivables and cement long-term relationships with good customers.
3. On your end, offer customers discounts to early payers. Consider providing a one to two percent discount if bills are paid within ten days of delivery. It may cost you a little, but it can also light a fire under slow payers -- and have a major positive effect on your cash flow.
4. Examine payment terms and your billing schedule. If possible, send an invoice with your shipments -- not separately afterward. Waiting until the end of the month can add as many as 30 extra days to your cash flow conversion period. If your business provides a service and it is appropriate, ask customers for a deposit before work begins.
Remind customers of your credit terms. Check your invoices or statements to ensure there is a clear indication of when payment is due. Encourage customers to pay with fund transfers or Internet payments.
5. Closely track and collect overdue accounts. Have your accounting department prepare fast, accurate reports on overdue payments. Monitoring accounts can reveal early warning signs. Act immediately on past-due accounts and use a collection agency if necessary. Telephone tardy customers and obtain a payment commitment by a specific date. Consider giving staff members financial rewards when they collect long-overdue bills.
Don't keep delivering services or shipping goods when payments are far behind. Put problem customers on a C.O.D. system or stop shipments altogether.
6. Consider establishing an interest penalty for late payments. Once a bill becomes seriously overdue, you may have to resort to penalties. While you can, and should, sympathize with hard-pressed customers for a reasonable amount of time, don't let their problems drag your cash flow down.
7. Don't extend credit without taking the proper precautions. Require all new customers to fill out credit applications. Request and check credit references.
A written agreement at the onset of a business relationship can help avoid misunderstandings later on. Spell out the terms of the arrangement on your credit application. You might want to go one step further and have customers sign a separate statement or contract identifying not only when payments are due but also that the other party is liable for any legal or arbitration costs if a bill is not paid.
If your business is extending credit to a financially troubled company, insist on securing personal guarantees from the owners, as well as their spouses.
8. Trim expenses and cut unnecessary spending. Look for ways to reduce waste in office supplies, company vehicles, cell phones and land lines, utilities, business travel, overtime pay, insurance, and more. Ask your employees for cost-cutting suggestions. They are likely to come up with ideas management hasn't thought about.
Dispose of unused vehicles, vacant real estate and machinery you don't need. You could be paying insurance, maintenance and storage costs on them. Selling idle assets can result in a cash flow boost while donating to a qualified charity can be a tax-wise move.
9. Keep your inventory lean. As a rule of thumb, the expense of maintaining stock in inventory averages about two percent of the cost of those goods for each month not sold. If your business carries an item for a year, you're down 24 percent. It's hard to overcome this kind of cost handicap -- especially in hard times.
Don't fall into the trap of hanging onto slow-moving inventory in order to avoid admitting you made a mistake. Cut your losses on old and outdated inventory items. Or donate them and claim a charitable tax deduction.
10. Speaking of tax deductions, look for valuable opportunities you may have overlooked. The complex Internal Revenue Code is filled with breaks for various industries and taxpayers in certain situations. Consult with your tax adviser to see if there are potential opportunities or steps you should take by the end of the year to reduce your tax bill.
11. Free up cash by leasing rather than buying. Leasing computer equipment, cars, facilities, tools and other gear generally costs more than buying, but you avoid tying up cash. You can also limit your exposure with short-term leases.
12. Examine prices. Many company owners and executives won't consider increasing prices in a tough economy because they're afraid customers will head to the competition. But it may be necessary if your prices aren't keeping pace with expenses. If you do raise prices, explain the reasons to your customers, and if possible, give them notice. Emphasize the value of your products or services.
These ideas are just some of the ways your company can improve cash flow. Consult with your accountant who can help you review cash flow statements, find weaknesses, and come up with solutions to maintain a healthy balance between the money flowing in and out of your organization.
If your company is feeling the squeeze of a tight economy -- and tight credit -- its ability to manage cash flow is critical. Enterprises that successfully practice good cash management generally survive and prosper; those that don't are likely to be undone by the weight of increasing debt and the inability to pay employees and suppliers.
Cash flow is the heartbeat of your business and keeping it stable requires juggling most aspects of your operation, including accounts receivables, payroll, credit and inventory.
With that in mind, here are a dozen strategies to strengthen your company's cash flow:
1. Take the maximum time to pay your suppliers. Essentially this amounts to an interest-free line of credit and gives you more time to use your working capital.
2. Check to see if your suppliers offer payment incentives. Some companies offer a discount for paying early. Even if your business regularly purchases a substantial amount from another company, you're in a good position to negotiate favorable payment terms. In addition to early payment incentives, ask for special terms that accommodate your cash flow requirements. For example, negotiate to make payments after your busy season.
Many suppliers are willing to offer incentives in order to speed up their own receivables and cement long-term relationships with good customers.
3. On your end, offer customers discounts to early payers. Consider providing a one to two percent discount if bills are paid within ten days of delivery. It may cost you a little, but it can also light a fire under slow payers -- and have a major positive effect on your cash flow.
4. Examine payment terms and your billing schedule. If possible, send an invoice with your shipments -- not separately afterward. Waiting until the end of the month can add as many as 30 extra days to your cash flow conversion period. If your business provides a service and it is appropriate, ask customers for a deposit before work begins.
Remind customers of your credit terms. Check your invoices or statements to ensure there is a clear indication of when payment is due. Encourage customers to pay with fund transfers or Internet payments.
5. Closely track and collect overdue accounts. Have your accounting department prepare fast, accurate reports on overdue payments. Monitoring accounts can reveal early warning signs. Act immediately on past-due accounts and use a collection agency if necessary. Telephone tardy customers and obtain a payment commitment by a specific date. Consider giving staff members financial rewards when they collect long-overdue bills.
Don't keep delivering services or shipping goods when payments are far behind. Put problem customers on a C.O.D. system or stop shipments altogether.
6. Consider establishing an interest penalty for late payments. Once a bill becomes seriously overdue, you may have to resort to penalties. While you can, and should, sympathize with hard-pressed customers for a reasonable amount of time, don't let their problems drag your cash flow down.
7. Don't extend credit without taking the proper precautions. Require all new customers to fill out credit applications. Request and check credit references.
A written agreement at the onset of a business relationship can help avoid misunderstandings later on. Spell out the terms of the arrangement on your credit application. You might want to go one step further and have customers sign a separate statement or contract identifying not only when payments are due but also that the other party is liable for any legal or arbitration costs if a bill is not paid.
If your business is extending credit to a financially troubled company, insist on securing personal guarantees from the owners, as well as their spouses.
8. Trim expenses and cut unnecessary spending. Look for ways to reduce waste in office supplies, company vehicles, cell phones and land lines, utilities, business travel, overtime pay, insurance, and more. Ask your employees for cost-cutting suggestions. They are likely to come up with ideas management hasn't thought about.
Dispose of unused vehicles, vacant real estate and machinery you don't need. You could be paying insurance, maintenance and storage costs on them. Selling idle assets can result in a cash flow boost while donating to a qualified charity can be a tax-wise move.
9. Keep your inventory lean. As a rule of thumb, the expense of maintaining stock in inventory averages about two percent of the cost of those goods for each month not sold. If your business carries an item for a year, you're down 24 percent. It's hard to overcome this kind of cost handicap -- especially in hard times.
Don't fall into the trap of hanging onto slow-moving inventory in order to avoid admitting you made a mistake. Cut your losses on old and outdated inventory items. Or donate them and claim a charitable tax deduction.
10. Speaking of tax deductions, look for valuable opportunities you may have overlooked. The complex Internal Revenue Code is filled with breaks for various industries and taxpayers in certain situations. Consult with your tax adviser to see if there are potential opportunities or steps you should take by the end of the year to reduce your tax bill.
11. Free up cash by leasing rather than buying. Leasing computer equipment, cars, facilities, tools and other gear generally costs more than buying, but you avoid tying up cash. You can also limit your exposure with short-term leases.
12. Examine prices. Many company owners and executives won't consider increasing prices in a tough economy because they're afraid customers will head to the competition. But it may be necessary if your prices aren't keeping pace with expenses. If you do raise prices, explain the reasons to your customers, and if possible, give them notice. Emphasize the value of your products or services.
These ideas are just some of the ways your company can improve cash flow. Consult with your accountant who can help you review cash flow statements, find weaknesses, and come up with solutions to maintain a healthy balance between the money flowing in and out of your organization.
Healthcare and the Power of VICA by Barbara Oberman-Lippe
01/05/2012 04:55PM
The September 2011 Healthcare Committee meeting began with an announcement from Chairman Jim Garrison describing a recent phone call from California State Assemblyman Mike Feuer. The purpose of the Mr. Feuer’s call was to gain VICA’s support for AB 52, legislation that he authored together with State Assemblyman Jared Huffman, which VICA was opposing. The Assemblyman went on to ask Mr. Garrison what needed to be changed in the bill to obtain VICA’s support. That is the power of VICA, and a good example of how VICA’s advocacy efforts influence state policy.
The VICA Healthcare Committee is composed of members of the business and health care community. The committee operates similarly to a legislative committee (as do all VICA committees) developing positions on issues. Since this is the Healthcare Committee, its issues are focused on the delivery of health care, insurance and worker’s compensation. Committee meetings are devoted to analyzing proposed legislation, discussing its impact on the business community, and taking a position either in support of or in opposition to the legislation. The Healthcare Committee positions are then presented to the VICA board of directors by the committee chairman. Once the Board takes a position on the bill, the advocacy begins. The Board determines the method or methods of advocacy to be used for a given bill.
The Patient Protection and Affordable Care Act (the Health Care Reform Act) could be the most costly legislation for business that has come out of the United States Congress in decades. Although it has not yet been fully addressed by VICA’s Healthcare Committee (because many of its provisions won’t take effect until 2014), it will most likely be one of the committee’s hottest and most controversial topics in the coming year.
Healthcare impacts all businesses and the VICA Healthcare Committee provides an opportunity for all VICA members to obtain cutting edge information on upcoming changes and to provide input to our legislators as they are writing legislation. It’s much more beneficial to be heard before a bill becomes law than to deal with it afterward.
Employment Practices Liability Insurance by Sharyn Quinn
01/05/2012 04:48PM
Lawsuits claiming wrongful termination, discrimination, failure to hire or promote, sexual harassment, and other human resource issues, continue to grow in both numbers of claims filed and in the severity of the defense and settlement expenses.
This coverage should no longer be considered an option to planning your commercial insurance program. If you think your business can’t afford to pay the premium, just wait until you have to pay an attorney to defend you.
The EEOC reported 99,922 charges in 2010. (They use a fiscal year of September 30). The types of claim by percentages were 35.9 percent racial discrimination, 29.1 percent for sexual discrimination, and 36.3 percent involved retaliation claims. The average cost of an out of court settlement was about $40,000 and the defense costs could be upwards of $45,000 if it goes to trial. Private businesses with 100 or fewer employees are the ones most often sued for Federal discrimination claims.
Here are some shocking statistics from the EEOC:
The number of Discrimination and Harassment cases reported was 271; the employee wins 67 percent of the time, with a median “win” of $218,000.
The total paid out in monetary benefits was $85,100,000. Of that, $74,000,000 was in the Title VII area.
This is not to imply there are not legitimately injured employees who should be compensated, but to point out to you and your risk manager that since these types of lawsuits have increased by 400 percent in the past 10 years, it just isn’t practical not to include it in your program.
Your first lines of defense are a good employment or labor attorney, a properly prepared Employee Handbook, a professional Human Resource person, either in house or as a consultant, and well trained managers or supervisors to ensure what you have in place is actually followed. And do the training on an annual basis – don’t let the handbook gather dust.
I’ve heard non-profits say they don’t have the same exposure as a for-profit company, or “no one will sue a nonprofit.” Think again – please. There’s been an upward turn in suits filed against 503(c) organizations. New claims are coming in from donors, fellow board members, and those giving grants! Donors may disagree with how your funds are distributed, or how much is used for administration. Regulatory agencies may take exception over how a grant is used or if there were improper transactions that benefited “insiders”.
If you add the EPL coverage to your D&O coverage, make sure you have a lower deductible or self-insured retention and make sure you have separate limits.
Most insurance carriers writing EPL will give you significant risk management services, as part of the policy, and will give HR a hotline and sample employment manuals.
Please make sure you have an insurance policy that “pays on behalf of,” NOT “indemnify,” unless you want the costs to run through your office first!
When making a choice for your renewal, even though times are tough, please consider Employment Practices Liability Insurance as an investment for your business continuation.
This coverage should no longer be considered an option to planning your commercial insurance program. If you think your business can’t afford to pay the premium, just wait until you have to pay an attorney to defend you.
The EEOC reported 99,922 charges in 2010. (They use a fiscal year of September 30). The types of claim by percentages were 35.9 percent racial discrimination, 29.1 percent for sexual discrimination, and 36.3 percent involved retaliation claims. The average cost of an out of court settlement was about $40,000 and the defense costs could be upwards of $45,000 if it goes to trial. Private businesses with 100 or fewer employees are the ones most often sued for Federal discrimination claims.
Here are some shocking statistics from the EEOC:
The number of Discrimination and Harassment cases reported was 271; the employee wins 67 percent of the time, with a median “win” of $218,000.
The total paid out in monetary benefits was $85,100,000. Of that, $74,000,000 was in the Title VII area.
This is not to imply there are not legitimately injured employees who should be compensated, but to point out to you and your risk manager that since these types of lawsuits have increased by 400 percent in the past 10 years, it just isn’t practical not to include it in your program.
Your first lines of defense are a good employment or labor attorney, a properly prepared Employee Handbook, a professional Human Resource person, either in house or as a consultant, and well trained managers or supervisors to ensure what you have in place is actually followed. And do the training on an annual basis – don’t let the handbook gather dust.
I’ve heard non-profits say they don’t have the same exposure as a for-profit company, or “no one will sue a nonprofit.” Think again – please. There’s been an upward turn in suits filed against 503(c) organizations. New claims are coming in from donors, fellow board members, and those giving grants! Donors may disagree with how your funds are distributed, or how much is used for administration. Regulatory agencies may take exception over how a grant is used or if there were improper transactions that benefited “insiders”.
If you add the EPL coverage to your D&O coverage, make sure you have a lower deductible or self-insured retention and make sure you have separate limits.
Most insurance carriers writing EPL will give you significant risk management services, as part of the policy, and will give HR a hotline and sample employment manuals.
Please make sure you have an insurance policy that “pays on behalf of,” NOT “indemnify,” unless you want the costs to run through your office first!
When making a choice for your renewal, even though times are tough, please consider Employment Practices Liability Insurance as an investment for your business continuation.
Green Your Bottom Line by Carol Martinez
12/15/2011 07:02PM
Los Angeles Mayor Antonio Villaraigosa welcomed nearly 70 travel industry professionals to a recent “Green Your Bottom Line” seminar at the Westin Bonaventure Hotel & Suites in Downtown Los Angeles. The seminar was hosted by LA INC. The Los Angeles Convention and Visitors Bureau, in partnership with the City of LA, The Hotel Association of Los Angeles and Green Seal, Inc.
The “Green Your Bottom Line” seminar provided hoteliers with information on rebates, incentives and qualifications for green discounts. Speakers included Mayor Antonio Villaraigosa, and representatives from the Los Angeles Department of Water and Power (LADWP), Southern California Gas Company and Green Seal, Inc. Seminar highlights included financial and environmental benefits of conducting sustainable business practice and tips for implementing green initiatives into every-day business.
“Los Angeles has more green buildings than any other city in the U.S.,” said Mayor Antonio Villaraigosa who also spoke at the event, reminding local travel industry professionals that all businesses in LA are looking for ways to be green. “You’ll save money. You’ll have more customers,” the Mayor continued, saying that today’s consumers and travelers are always in search of sustainable businesses.
Green Seal recognizes some of LA's top hotels for their environmental conservation efforts, including the Hilton Los Angeles/Universal City Hotel. The Hilton Los Angeles/Universal City meets the Green Seal standard for Lodging Properties by practicing waste minimization, water and energy efficiency, hazardous substance handling and responsible purchasing. The property also practices In-Room and Banquet Event Recycling Program, Dusk till Dawn Motion Sensor Lighting, Compact Fluorescent Lighting, Water Conservation and more.
Other Green promotions in the San Fernando Valley include the Teen Choice Awards, which take place at the Gibson Amphitheatre. The “red” carpet that the stars walk along is actually “green” and made of eco-friendly synthetic grass. All waste from the Gibson Amphitheatre and press tents gets sorted for recycling.
Many local restaurants are also taking steps to minimize their impact on the environment while serving truly top-notch cuisine. Eco-friendly trends include using local, organic and seasonal ingredients, buying only sustainable seafood, and using reclaimed woods and energy-efficient lighting in restaurant design. In the Valley, Madeleine Bistro in Tarzana serves only organic vegan food in a casual environment featuring white linen tablecloths and soft lighting.
The “Green Your Bottom Line” seminar was part of LA INC.’s Green Lodging Program, which encourages LA hotel properties to become Green Seal Certified. There are currently six hotels certified under the program. As tourism continues to grow, LA INC. continues to promote certification as a meaningful, achievable and affordable way for tourism partners to conduct business.
For more information on the Green Lodging Program, visit http://www.ci.la.ca.us/ead/cgbp/lodging.html
Put Our Interests First by Gregory N. Lippe
12/15/2011 06:57PM
On Monday, December 5th, I left my house to go to work and began listening to the news on my car radio. The first story I heard was that our United States Secretary of State, Hillary Rodham Clinton had agreed for the U.S. to provide long-term financial aid to Afghanistan at the request of Afghanistan’s President Hamid Karzai (his request was for 10 more years). The second story I heard was that U.S. citizens can no longer expect to receive first class mail in one day because the post office can no longer afford to provide that service. Due to financial problems they cannot hire enough staff to maintain that level of service.
A few days earlier, I read that the British Embassy in Tehran was attacked with the prior knowledge of and without any protection by the Iranian authorities. Britain’s response was to close its vandalized embassy and expel all Iranian diplomats from London.
I began thinking about these stories and came to a conclusion. Although the three stories mentioned above seem to have nothing in common, they are all reflective of actions or inactions by our leaders that do not appear to be in the best interests of our citizens.
I have difficulty understanding how (when our postal system is faltering and our country is deeply in debt) we can commit to long-term financial aid to another country, especially one that houses enemies of our government and our citizens. Who in their right mind would borrow money to give to others? Can you see yourself going to the bank and taking out a loan for the purpose of making a contribution to a charity? It seems to me that this is exactly what our leaders are doing. The difference is that our government isn’t borrowing from a bank; the greatest amount of our borrowing is from China, a lender that is in the process of putting the United States into economic ruin by continually producing products that cost less and therefore sell for significantly less than similar products produced in the United States. We all know that the reason their products cost less is that they are using unfair advantages such as labor that is paid so cheaply one can make a case that it is slave labor and by devaluing their currency. When are we going to recognize that China just does not play fair? After all, what other country requires us to give them our technology to enable us to sell our products (made from that technology) in their country?
Regarding the story on Britain’s response to the attack on its embassy, I researched prior attacks on U.S. embassies to see what our responses have been and, guess what? I didn’t find one situation where we expelled the diplomats of the country (where we were attacked) from our country. I commend Britain for drawing a deep line in the sand. Perhaps we should follow their lead.
It’s time for our leaders to start putting the needs and best interests of our citizens first.
A few days earlier, I read that the British Embassy in Tehran was attacked with the prior knowledge of and without any protection by the Iranian authorities. Britain’s response was to close its vandalized embassy and expel all Iranian diplomats from London.
I began thinking about these stories and came to a conclusion. Although the three stories mentioned above seem to have nothing in common, they are all reflective of actions or inactions by our leaders that do not appear to be in the best interests of our citizens.
I have difficulty understanding how (when our postal system is faltering and our country is deeply in debt) we can commit to long-term financial aid to another country, especially one that houses enemies of our government and our citizens. Who in their right mind would borrow money to give to others? Can you see yourself going to the bank and taking out a loan for the purpose of making a contribution to a charity? It seems to me that this is exactly what our leaders are doing. The difference is that our government isn’t borrowing from a bank; the greatest amount of our borrowing is from China, a lender that is in the process of putting the United States into economic ruin by continually producing products that cost less and therefore sell for significantly less than similar products produced in the United States. We all know that the reason their products cost less is that they are using unfair advantages such as labor that is paid so cheaply one can make a case that it is slave labor and by devaluing their currency. When are we going to recognize that China just does not play fair? After all, what other country requires us to give them our technology to enable us to sell our products (made from that technology) in their country?
Regarding the story on Britain’s response to the attack on its embassy, I researched prior attacks on U.S. embassies to see what our responses have been and, guess what? I didn’t find one situation where we expelled the diplomats of the country (where we were attacked) from our country. I commend Britain for drawing a deep line in the sand. Perhaps we should follow their lead.
It’s time for our leaders to start putting the needs and best interests of our citizens first.
Redistricting Commissions: So How Did That Work Out For You? by Steve Afriat
12/15/2011 06:52PM
Business leaders believe that Redistricting Commissions and in the case of San Fernando Valley leaders, all-inclusive San Fernando Valley Districts, somehow benefits the business community. Unfortunately, there is no evidence to back this up. While I admire and praise VICA for their effectiveness during the redistricting process, what really was the result?
The Republicans who pushed for the Redistricting Commission concept are now suing and organizing a referendum because they are unhappy with State Senate lines. They acknowledged they were unhappy with all the lines but thought that they have their best chance challenging the State Senate lines. So the very sponsors of the Redistricting Commissions are now claiming they would have been better off without it.
Here in San Fernando Valley, business-friendly legislators have been put in marginal districts. Incumbents including those who are less business friendly are challenging more business-friendly incumbents.
Brad Sherman and Howard Berman, two experienced members of Congress with important committee assignments are now going to spend millions of dollars fighting each other. A more political process could have preserved both seats. While some may argue that they’ll be eliminating a member of Congress that might be too liberal for their taste, that’s not true. Another seat was created that Tony Cardenas is running in and his voting record in Congress will likely be almost identical to that of Berman and Sherman.
And the all-Valley seats argument is equally meaningless. Would someone argue that Encino is a community of interest with Chatsworth when in fact may have more common in Brentwood? And who would argue that Tujunga and Studio City should be communities of interest, when in fact Studio City might have more in common with Hollywood. How silly to make Mulholland Drive some wall of separate interests.
Reapportionment is inherently a political process, probably the most political process in government. Trying to take the politics out of Redistricting is the same as trying to take apples out of apple pie. Those of us who care about good government and who care about a more business-friendly government, should focus on educating elected officials, lobbying them and attempting to enlighten their thinking on issues such as job creation and economic development, which they can likely support.
A fool-hardy nonpolitical Redistricting Commission hurts everybody, creates inexperienced legislators, and makes elections more costly. Let’s stop kidding ourselves!
The Republicans who pushed for the Redistricting Commission concept are now suing and organizing a referendum because they are unhappy with State Senate lines. They acknowledged they were unhappy with all the lines but thought that they have their best chance challenging the State Senate lines. So the very sponsors of the Redistricting Commissions are now claiming they would have been better off without it.
Here in San Fernando Valley, business-friendly legislators have been put in marginal districts. Incumbents including those who are less business friendly are challenging more business-friendly incumbents.
Brad Sherman and Howard Berman, two experienced members of Congress with important committee assignments are now going to spend millions of dollars fighting each other. A more political process could have preserved both seats. While some may argue that they’ll be eliminating a member of Congress that might be too liberal for their taste, that’s not true. Another seat was created that Tony Cardenas is running in and his voting record in Congress will likely be almost identical to that of Berman and Sherman.
And the all-Valley seats argument is equally meaningless. Would someone argue that Encino is a community of interest with Chatsworth when in fact may have more common in Brentwood? And who would argue that Tujunga and Studio City should be communities of interest, when in fact Studio City might have more in common with Hollywood. How silly to make Mulholland Drive some wall of separate interests.
Reapportionment is inherently a political process, probably the most political process in government. Trying to take the politics out of Redistricting is the same as trying to take apples out of apple pie. Those of us who care about good government and who care about a more business-friendly government, should focus on educating elected officials, lobbying them and attempting to enlighten their thinking on issues such as job creation and economic development, which they can likely support.
A fool-hardy nonpolitical Redistricting Commission hurts everybody, creates inexperienced legislators, and makes elections more costly. Let’s stop kidding ourselves!
Dear Santa by Dana Martin
12/08/2011 02:23PM
All I want for Christmas is…
- $3.7 billion to cover the revenue shortfall that will trigger further budget cuts effective January 1; $100 million in higher education, $30 million in our community colleges, $1.5 billion in K-12, and a $248 million cut that threatens to eliminate school bus transportation.
- $1.5 million to pay for the damages and taxpayer expenses associate with the “Occupy LA” knuckleheads who camped out at city hall.
- A Merry Christmas for everyone whose business suffered because their customers stayed away from the downtown corridor due to the “Occupy LA” circus.
- Complete success in Governor Brown’s efforts to reform public pensions.
- An elimination of the gross receipts tax in Los Angeles that serves no purpose other than to drive businesses out of our city.
- A revised tax code that eliminates our over reliance on the top 2 percent for the State’s revenue; stabilizing the State budget and making us less susceptible to market fluctuations impacting the wealthy and by extension every Californian.
- A cohesive working relationship between LAUSD Superintendent John Deasy and UTLA President Warren Fletcher that finally puts kids first.
- A complete and resounding defeat of the “California Opportunity and Prosperity Act” being spearheaded by Felipe Fuentes. History has proven “amnesty” to be ineffective and only encourages more illegal immigration. As well intentioned as this Act is, even if passed by voters, it will be thrown out by the courts because immigration is a federal responsibility. One they’ve ignored. But, a federal responsibility nevertheless.
- A repeal of the California Dream Act where California taxpayers are funding a public education for illegal students who can’t be legally hired by employers in California.
- A federal government with the courage to confront the hard issue of illegal immigration and a streamlined immigration process that provides a path for young people who grew up in this country to gain citizenship.
- A “Buy American First” grassroots movement in this country that stimulates our economy and creates jobs; success where our leaders have failed.
- For someone to come to their senses and pull the plug on the Bullet Train. Estimates now put the anticipated cost of the project at more than $60 billion dollars more than the $34 billion sold to voters. While I recognize the attraction of high speed rail, the return on this level of investment is dubious at best. Let’s put the focus on light rail and roads.
- For parents to not let technology and the resulting access to information rob children of one of the most cherished traditions of childhood, Santa Claus.
Most of all, I want to express my sincere appreciation for everyone in VICA. I greatly value VICA as an organization and each and every one of you as business associates and friends.
Merry Christmas and a Happy New Year.
Gifts to Customers, Clients and Others by Calvin Hedman
12/08/2011 02:15PM
With the holidays coming up, it's a good time to review the tax rules involved in giving gifts to employees. The taxability of employee gifts generally depends on the value and the type of award. Here are some questions and answers that illustrate the complexity of the issue:
- If an employee is awarded an all-expense-paid trip worth $2,000, does the gift result in taxable income?
(Answer: Yes.)
- What about holiday turkeys and other gifts of minimal value? (Answer: No.)
- If a company has a safety program that gives merchandise awards to a small number of employees, is the value of the certificates taxable? (Answer: No, if certain rules are followed.)
- What about if the same safety program gives gift certificates to all employees? Are they taxable? (Answer: Yes.)
- Let's say an employer has a suggestion program that awards points to employees who submit ideas. The employees then redeem the points for merchandise from a catalog. Is the value of the points taxable? (Answer: Yes.)
The following are six general rules on the taxation of gifts, awards, and incentives given to employees:
1. Monetary prizes, awards, bonuses and gift certificates, including achievement awards, are generally considered taxable compensation subject to federal and state income tax withholding, unemployment tax, and FICA taxes.
2. Prizes, bonuses, awards that involve goods or services, such as a vacation trip for meeting a sales goal, also generally result in taxable income.3. "Tangible personal property" awarded to employees to recognize the employees' length of service or safety achievement is not taxable. However, there are strict rules to follow for tax-free treatment that we'll describe later.
4. The term "tangible personal property" does not mean cash or gift certificates. Although the definition of "tangible personal property," is unclear, most tax advisers take the position that certificates and other types of awards redeemable for merchandise -- such as points and cards with point values -- are taxable. One exception: If the merchandise is given as an employee achievement award and meets IRS rules.
5. Awards and gifts of minimal value, such as a holiday turkey, generally fall under the IRS's de minimis rule and are not taxable. That rule says if an employer provides an employee with a product or service that costs so little that it would be unreasonable for the employer to account for it, the value is not taxable income. (Cash awards and gift cards/ certificates redeemable for cash are not included under the de minimis rule.)
What's considered minimal? Most tax advisers say $25 to $75 to an employee in a year. Consult with your tax adviser on the de minimis amount to use in your situation.
6. The value of holiday gifts, such as merchandise or tickets to sporting events, in excess of the de minimis amount is taxable income.In some cases, the value of employee achievement awards can be excluded from taxable income. However, the award must involve something other than cash, a gift certificate, or other cash-equivalent item, and must be given for length-of-service or safety achievement. The amount that the employee can receive tax free is limited to the employer's cost and cannot exceed $1,600 ($400 for awards that are not qualified plan awards) for all awards the employee receives during the year.
In addition, the employer must make the award as part of a meaningful presentation. The tax-free employee achievement award exception does NOT apply if:
- The length-of-service award is for less than five years of service or if the employee received another length-of-service award during the year or the previous four years.
- The safety achievement award is given to a manager, administrator, clerical employee, or other professional employee.
- More than 10 percent of eligible employees previously received safety achievement awards during the year.
Smart idea: When giving gifts to employees, explain the tax implications upfront if there are any. That way, there won't be any unexpected surprises later that might spoil your generosity. Consult with your tax adviser for more information.
Not Too Early by Sharyn Quinn
11/17/2011 04:08PM
To review your current OSHA 300 logs and make certain you’re up to date and ready to post the summary (300A) from February 1, 2012 through April 30, 2012.
The summary lists the total number of job-related injuries that occurred in 2011. Even if you had no recordable injuries, the summary has to be posted, with zeroes on the total line. It includes the average number of employees and total hours worked in the 2011 calendar year, which helps the Department of Labor to calculate industry incidence rates.
This is also a good time to identify trends in the losses and figure out a strategy to mitigate and eliminate those health and safety hazards. (Editorial: This should be done monthly, if you’re exceeding your expected losses.)
You can get the forms from OSHA website: OSHA.GOV/recordkeeping/RKforms.html. (Be sure to follow the printing directions – forms are not designed for letter size.)
ALSO, in the first quarter of each year, if your Experience Modification is 125% or more, you’ll receive your TICF Assessment. This is the “Targeted Inspection and Consultation Fund “that was part of the Workers’ Comp reform back in 1993. It is a special account in the State Treasury and the assessment is used to pay for the inspection program and CalOSHA’s High Hazard Employer Program, the point being to help employers reduce that 125%+ experience modification. Once you get below that, you’re not subject to the assessments.
Don’t stick the bill in a drawer and forget about it, as it’s due within 30 days from billing; if not paid, it will levy penalties equal to 25% of the original assessment and then referred to the Franchise Tax Board (or another agency) for collection. The assessment is based on the total payroll per the worker’s comp carriers’ final audit.
The Assessment is based on your total gross payroll. Here are just a few examples:
Payroll: $750,001 - $1,000,000 = Assessment of $600
Payroll: $1,500,001 - $2,000,000 = $1,000
Payroll: $4,500,001 - $5,500,000 = $3,000
These assessments are a shock if you’ve never previously “earned” one. Another good reason to keep on top of your safety program!Tax-Saving Depreciation Moves for Businesses Before December 31 by Calvin Hedman
11/17/2011 04:05PM
You can still take steps to slash your business's 2011 taxes. To start with, some expiring tax breaks are too good to ignore if your operation is healthy enough to need and be able to pay for asset additions.
Here are four tax-saving depreciation moves your business might want to make before December 31.
1. Buy a Heavy SUV
A big SUV for your business may not save as much gas as smaller cars but these vehicles are useful if you need to haul people and materials around. They also have big tax advantages.
- Thanks to the 100 percent first-year bonus depreciation privilege, you can write off the entire business-use percentage of the cost of a new "heavy" SUV that is placed in service by December 31, 2011 and used more than 50 percent for business. (Used vehicles do not qualify.)
- Under the Section 179 deduction privilege, you can write off up to $25,000 of the cost of a used heavy SUV that is placed in service by the end of your business tax year and used over 50 percent for business. You can then depreciate the rest of the business portion of the SUV's cost using the normal rules.
To collect these tax breaks, you must buy an SUV with a manufacturer's gross vehicle weight rating (GVWR) of more than 6,000 pounds. First-year depreciation deductions for lighter SUVs, passenger cars, and light trucks are much smaller. You can usually find a vehicle's GVWR specification on a label on the inside edge of the driver's side door where the hinges meet the frame.
Example: Your calendar year company buys a new $65,000 Cadillac Escalade and uses it 100 percent for business between now and December 31. On your 2011 business tax return or form, you can write off the entire $65,000 thanks to the 100 percent first-year bonus depreciation deal. In contrast, if you spent the same $65,000 on a new sedan, your 2011 depreciation write-off would only be $11,060.
2. Benefit from 100 Percent Bonus Depreciation for Other New Equipment and Software
Your business can claim 100 percent first-year bonus depreciation for qualifying new equipment and software that is placed in service by December 31, 2011. (Again, used assets do not qualify.) This tax break covers computer and phone systems, office furniture, machinery, and software. New real estate land improvements (sidewalks, drainage systems, and so forth) and certain leasehold improvements qualify too (most other real estate costs do not).
Warning: The December 31, 2011 deadline for 100 percent first-year bonus depreciation applies whether your business's tax year is based on the calendar year or not. So time is growing short if you want to purchase equipment.
3. Take Advantage of the $500,000 Section 179 Deduction for Used Equipment and Vehicles
For tax years beginning in 2011, there's a much larger $500,000 first-year Section 179 depreciation deduction for assets that are not SUVs, like most business equipment and software -- including used assets. For example, this break covers used office furniture and used machinery. The up-to-$500,000 Section 179 deduction privilege is also available for used heavy pickups and vans (meaning those with GVWRs above 6,000 pounds) that are not classified as SUVs under the tax law. These include the following:
- Pickups with a cargo area that is at least six feet in interior length. Many pickups with full-size cargo beds will meet this description (but pickups with shorter beds will fail this test and be classified as SUVs).
- Closed load-carrying vehicles with no seating behind the driver's seat and no body section protruding more than 30 inches ahead of the leading edge of the windshield. Delivery vans qualify.
- Vehicles designed to seat more than nine passengers behind the driver's seat. Shuttle vans and mini-buses qualify.
Warning: Watch out if your business is already expected to have a tax loss for the year (or close to it) before purchasing assets that are eligible for the Section 179 deduction. You cannot claim a Section 179 write-off that creates or increases an overall business tax loss.
4. Claim the $250,000 Section 179 Deduction for Real Estate Improvements
Real property improvements have traditionally been ineligible for the Section 179 deduction. However, there is a big exception this year. You can claim a deduction for qualified real property improvements placed in service for the tax year beginning in 2011. You can claim a first-year Section 179 deduction of up to $250,000. This temporary break applies to the following types of real property:
- Interiors of leased nonresidential buildings.
- Restaurant buildings.
- Interiors of retail buildings.
The $250,000 Section 179 allowance for real estate is part of the overall $500,000 allowance, and it will not be available for tax years beginning after 2011 unless Congress extends it.
Warning: Again, be careful if your business may have a tax loss for the year before considering any Section 179 deduction because the write-off will not be allowed. It cannot create or increase an overall business loss.
The Reality of Life in L.A. by Todd Lindgren
11/17/2011 04:02PM
As the production of feature films has left Los Angeles and California for greener (read: incentive-rich) locales over the last decade, L.A. has relied on the strength of its television industry to provide much-needed jobs for our below-the-line working men and women.
We’ve been grateful for the television production that remains; the more television production we keep local, the more money is pumped into the L.A. economy through wages and direct production spending -- monies paid to vendors and other companies. In particular, there is one subcategory of television production that is bustling -- TV Reality (or “unscripted” television, if you believe that definition).
In October, FilmL.A. announced that local TV Reality on-location production was up 30.4 percent for the third quarter. Over the last six months there have been…..wait for it…. 285 unique Reality shows pulling permits to film in the L.A. area. That’s right, 285!!! With that amount of filming activity, you’d think we’d be sitting comfortably, and yet those of us who spend our careers monitoring the health of this industry have some concerns.
I’m not talking about the questionable redeeming value of some shows; indeed, a look at some of the titles of these shows may cause one to weep for society’s future: Celebrity Wife Swap, Celebrity Rehab, Celebrity Holiday Homes, The Real Housewives of Beverly Hills, My Cat from Hell, My Extreme Animal Phobia, Monsters Inside Me, Who Wants to Date a Comedian, Dude What Would Happen? and Yank your Viva (I swear, I’m not making these up).
But content aside, there are compelling reasons to bemoan L.A.’s increasing reliance on Reality TV. I have nothing against Reality producers or the “stars” or fans of these programs. What frustrates me is the diminished economic value of these shows as compared to TV Dramas and TV Sitcoms and the fact that Reality now comprises nearly 50 percent of all L.A.-based on-location television production. While New York recently touted playing host to a record number -- 23 -- of primetime television series (the demonstrable success of their $420 million-a-year incentive program), FilmL.A. had to report that local on-location TV Drama production in Los Angeles dropped 20 percent in the third quarter.
TV Dramas spend millions of dollars per episode and have casts and crews of hundreds. These shows build sets that keep our local skilled carpenters and construction workers employed. They also have art departments that keep our prop houses busy and wardrobe departments to tailor those slick 1960’s-era suits that are all the rage (local dry cleaners keep them looking sharp). And, they hire caterers that in turn patronize other businesses to feed casts and crews of hundreds daily. There are myriad other examples of the economic reach of these shows.
While still economically valuable, Reality shows generate fewer jobs and have a much smaller economic footprint than other types of television production. Many of the 285 TV Reality shows won’t return to film season after season. So they will not provide hundreds of skilled workers stable employment over the course of many seasons that a popular TV Drama would.
Regardless of whether I’m a fan or not, I’d still like to see every reality show filmed in the L.A. area. And if Kim would pump the millions she earned from her wedding special right back into our local economy, I’d consider that redeeming value.Pacific Standard Time: Art in L.A. 1945-1980 by Carol Martinez
11/17/2011 03:59PM
Now through April 1, 2012 more than 60 cultural institutions across Southern California are joining together for the first time to celebrate the birth of the LA art scene during Pacific Standard Time: Art in L.A. 1945-1980. Featuring an unprecedented collaboration of museums throughout Southern California, the event celebrates the vibrancy of art in LA in the post-war decades through lectures, symposia, films, performances and educational programs.
During the six-month long celebration, which began in October, visitors will be enthralled by exhibitions displaying the best of quintessential California culture from, Identity and Affirmation: African American Post War Photography at the Institute for Arts and Media at California State University Northridge to Art Along the Hyphen: The Mexican-American Generation at the Autry National Center.
Identity and Affirmation: African American Post War Photography consists of 145 images produced by Los Angeles artists, exploring modernist tendencies in the work of the artists as they embraced the development of the arts, music, politics, family, and social life in the Black community and Los Angeles at large. Focusing on the period 1945-1965, Art Along the Hyphen: The Mexican-American Generation presents the work of Mexican American artists who contributed to the emerging California iconography and its connections to the nation’s collective imagination.
To accompany the exhibitions, LA INC. developed special hotel packages at various price-points and geographic locations. Guests who book the packages receive an exclusive museum pass that will grant free, VIP admission for two to 18 leading Los Angeles museums participating in Pacific Standard Time, more than a $250 value. Visitors can enjoy special Pacific Standard Time packages at participating hotels throughout the city, including the Hilton Los Angeles/Universal City and the Sheraton Universal Hotel.
The Pacific Standard Time Performance and Public Art Festival will be held from January 19 to January 29, 2012 and will include more than 30 projects, featuring re-stagings of historic performances as well as reinterpretations by younger artists of works of their predecessors. The festival will take place at institutions and sites from Malibu to Watts, and from Downtown to the desert, showcasing the spirit of art in Southern California.
To help visitors navigate their way around the many exhibitions and events, Pacific Standard Time created pacificstandardtime.org, a virtual hub that serves as a centralized source for comprehensive and up-to-date information about the exhibitions and related programs. In addition to sophisticated search options and MyTime, a personalized itinerary feature, the website offers downloadable family visitor’s guides and blog postings that feature insightful posts by culture journalists.
Can you afford to wait? by Thom Lewis
11/17/2011 03:54PM
With the renewal season in full swing, I’m frequently asked by prospective clients what can and should be doing to control their rising medical plan costs. CFOs are frustrated with increasing costs and lack of transparency as to the drivers, while HR professionals face increasing concerns from employees and their dependents on the costs and quality of the benefit plans being sponsored. Some are ‘ecstatic’ that they’re only receiving a single digit increase, while others are stuck with a double digit pooled rate increase. Most don’t understand the mechanics that make up a renewal calculation and celebrating the ‘success’ of these ‘good’ renewals is like celebrating a tax refund without the check.
The easy answer is to control claims, but you can’t control what you don’t measure, as carriers have historically refrained in this market from providing data to middle market plan sponsors, especially on their more profitable fully insured, pooled business. This leaves decision makers defaulting to the aged old solutions of changing carriers, changing their benefits or changing their contributions. This so called ‘Triangle of Death’ strangles employers and lacks the strategic planning element critical to achieving long term reductions in trend while doing nothing to address the root cause of the problem, i.e. ‘ it’s the claims, stupid.’
As with any process, assumptions can be made to ascertain the starting point for any renewal negotiations. Current funding arrangements shift risks back onto employers, so begin with an understanding of the interdependencies which make up your health care spend. Due to healthcare reform (ACA), we know the carriers are allowed 15 percent of premium for their retention (expenses), with the balance 85 percent available for paying claims. As you negotiate the terms of your renewal, keep this in mind as you pay attention to the network and utilization patterns of your population. Use plan design and contribution modeling to target and improve clinical outcomes.
Changing carriers is disruptive and usually only for short-term financial gain, so push back on your incumbent carrier. Most don’t want to lose business and all are fighting to retain and grow market share as they in turn are negotiating their discounts from providers.
Based on recent profitability announcements, carriers really aren’t taking risks any more so employers accepting more risk transfer are enjoying the commensurate advantages of doing so. Large savings solutions can be complex to execute, requiring decision makers to actively engage themselves and plan participants. Other solutions may be disruptive to traditional relationships, but doing nothing puts the business at increased risk.
Unfortunately, it doesn’t all end with this renewal! The clouds of the 2012 election are upon us, and we’ve only begun to see the impact of various reform scenarios; including, “the death of the valueless broker”, the real impact of federal subsidies, industries that could be impacted by dumping, the rise of defined contribution plans, the state of exchanges (by state) and additional ACA regulations slated to hit stakeholders in the new year. Can you afford to wait?
VICA and Valley Transportation Improvements: Choices and a Call to Action by Coby King
11/10/2011 05:08PM
Tuesday’s Transportation Committee meeting was a great example of the role that VICA can play in making the San Fernando Valley a better place to live. We heard updates from the Metropolitan Transportation Authority on highway and transit projects in and around the Valley. What we learned is that while there are good projects coming down the road, so to speak, we as Valley residents and businesses face choices.
As to a project to improve traffic on Van Nuys Boulevard, should a dedicated transit line run down Van Nuys itself, or should the project run down an adjacent road? Will that project be light rail, a street car or a bus? How can we accommodate the conflicting need for street parking and transit?
Also, how will transit in the Sepulveda Pass connecting the Valley and the Westside be accomplished? Light rail or a bus or something else? On what timetable? Will it be built by 2020 through the America Fast Forward program or decades later without it?
While LAX may seem far away from the Valley, transit connections to the airport are a critical priority for the entire region’s economy. How will the last miles be connected between LAX’s central terminal area and the Green Line/Crenshaw Line that will eventually run at least to Airport and Century?
And why can’t we get improvements to the Ventura Freeway, one of the most clogged major arterials in the Valley?
In every case, we must heed the call to action issues by Metro Board member Mel Wilson, who said that VICA must stand up for the Valley and demand our fair share of funding. As Mel noted, other LA regions are doing it–we risk being left behind if we don’t. We must advocate for the maximum investment in road and transit improvements, at the highest level.
At our meeting Tuesday, representative of local elected officials said to come to them for ideas on legislative priorities. We need to do that and we will. Our Committee will meet again in January, and we will be considering how to implement Mel Wilson’s call to action. We must make sure that the Valley gets what it needs to improve transportation so we can spend less time in traffic, and more time with our families, at our schools, and running our businesses.
Selecting the President of the United States? by Gregory N. Lippe
11/10/2011 05:02PM
According to the United States Constitution there are only three qualifications for the Presidency – The President must be at least 35 years of age, a natural born citizen, and must have lived in the United States for at least 14 years. There are no constitutional requirements that the President be literate, mentally competent or possess any skills.
Based on the above, it appears that someone could be a complete idiot and become President of the United States if he or she could garner enough votes by having a great personality, a substantial amount of money, having the right look or any combination of these traits. Unfortunately there are those who believe we have actually had some Presidents that fit this description.
Article 2 of the United States Constitution lists the areas of authority, the duties and the responsibilities of the President as follows:
1. Commander and Chief of the Army and Navy of the United States, and of the militia
of the several States, when called into the actual Service of the United States.
2. Power to grant Reprieves and Pardons for offenses against the United States.
3. Power, by and with the advice and consent of the Senate, to make Treaties, provided
two-thirds of the Senators present concur.
4. Power by and with the advice and consent of the Senate to appoint Ambassadors,
other public Ministers and Consuls, Judges of the Supreme Court, and all other
Officers of the United States, whose appointments are not otherwise provided for in
the Constitution.
5. Power to fill all vacancies that happen during the Recess of the Senate.
6. From time to time give to the Congress information of the State of the Union and
recommend as he or she shall judge necessary and expedient.
7. May on extraordinary occasions, convene both Houses, or either of them, and in
case of disagreement between them, with respect to the time of adjournment, he
may adjourn them to such time as he shall think proper.
8. Shall receive Ambassadors and other public Ministers.
9. Shall take care that the laws be faithfully executed.
10. Shall Commission all the Officers of the United States
11. Power to veto laws passed by congress.
In carrying out the above duties and responsibilities, the President will often need to find someone in Congress to introduce legislation (since he or she cannot make laws by himself or herself) and will need to lobby members of Congress to vote in favor of his or her ideas.
In business it is common when looking to hire a CEO to attempt to match the education, experience and skills of the individual with the duties and responsibilities of the job. Perhaps we should consider selecting a President based on his or her education, experience and skills in the areas of the President’s duties and responsibilities (as specified in the constitution) along with the ability to gain the respect of members of both parties and the skills to build coalitions and convince those members that his or her ideas are good for their constituents and the country as a whole.
You Think Things are Bad Now? by Dana Martin
11/10/2011 04:59PM
Just wait. The worst is yet to come. For only the sixth time in 20 years California passed not only a balanced budget, it passed it on-time. I know it’s true. I saw it in the news. It even had a sweetener to shore up the shaky California bond market; triggers. But, is this balanced budget real?
The lynch pin on the California budget is an assumption of $4 billion in higher tax revenues from an economy on the rebound. Oops. Even our legislators should know making such an assumption will make you look like ---the backside of a horse.
To be fair, State Controller John Chiang has said that the potential for revenue shortfalls is precisely why the Governor and the legislature included triggers in the budget.
There are three triggers.
Tier 0: If the revenue shortfall is no more than $1 billion, there will be no budget cuts triggered.
Tier 1: If the revenue shortfall is more than $1 billion, but less than $2 billion, $600 million dollars will be cut from the budget.
Tier 2: If the revenue shortfall is more than $2 billion, as much as $1.9 billion will be cut.
Prepare for the worst. As of September 30th, a mere 2 months into the budget year, the shortfall in revenue was already $705 million, three-quarter of the way to Tier 1.
The California Department of Finance must certify on December 15th whether or not the trigger has been tripped. Governor Brown must then make the final determination based on the Department of Finance forecast or that of his own office, whichever is higher. The resulting budget reductions will go into effect on January 1st.
The pain of the budget cuts triggered will be most profound on education. Tier 1 budget cuts require:
- $100 million cut each to the University of California and the California State University
- $30 million cut to California’s Community Colleges, triggering a $10/unit fee hike
There are not any Tier 1 budget cuts to K-12 schools. But, with Tier 2 trigger cuts:
- $1.5 billion will be cut from K-12 schools that will reduce the school year by another 7 classroom days. If the unions oppose this, there will be massive layoffs of classified school employees. Even these layoffs will not be sufficient to offset the entire budget reduction.
- $248 million cut that eliminates school bus transportation.
Know When to Say “No” at the Dentist by Lori Brogin, Esq.
11/10/2011 04:55PM
One of the most important things to remember when visiting your dentist is that you make the final decision regarding your oral treatment. While the dentist is available to provide their professional expertise, you have the power to say “no” to optional services that may cost more money.
The key to ensuring you receive the treatment you need: Ask! Do not be afraid to ask your dentist questions. Ask for a second option or call your dental plan’s Member Service Specialist to ask for advice.
To avoid confusion about treatment or payment options, follow these guidelines:
- Refer to your schedule of covered services and co-payments. If there is a question of whether a treatment recommended by your dentist is covered by your plan, this source will inform you of your options.
- Know that you have options. Your dentist may recommend extra treatment options that are not included in your covered services. These additional services are always optional. You can decline these treatments and select only those covered by your plan if you choose.
Ask your dentist for a treatment plan prior to receiving treatments. It is your right to know about your oral care.Can you afford NOT to join VICA? by Ashlea Gross
10/20/2011 06:06PM
If you aren’t already a member of VICA, you may wonder why your company should join? What are the benefits to you and your business? Does VICA really make a difference in the political process and local business climate?
Founded in 1949, Valley Industry and Commerce Association is a non-profit, business advocacy organization with a history of working effectively with lawmakers and opinion leaders to build consensus on issues that directly impact the regions’ business climate and quality of life. In short, we seek and share answers to important business questions, resolutions for business concerns and take positions on issues that impact business. Last session we were proud that 75 percent of the key bills in Sacramento were decided in our favor.
Our analysis and positions on proposed legislation begin on the committee level in the areas of Land Use, Transportation, Aviation, Education & Workforce, Entertainment, Healthcare & Insurance, Government Affairs and Environment Energy & Utilities. Some policy committees meet monthly but most meet every other month with a specific agenda, position papers and speakers distributed before the meetings. Although VICA is based in the San Fernando Valley our membership and influence extend well beyond the Valley borders with members from Camarillo to Pasadena and Santa Clarita to Downtown LA, Century City and the West Side…anyone who needs a voice at City Hall, Sacramento or even Washington, D.C.
Depending on their priorities, businesses/organizations join VICA for any or all of three major reasons:
Advocacy/Influence – utilizing VICA’s collective clout, expressing the pro-business perspective and being part of the solution.
Involvement – connecting with business leaders and elected officials, sharing expertise and experience, taking leadership roles and making a difference.
Marketing – greater visibility in the business community through sponsorships/advertising of our high-profile events, speaking roles, being interviewed for news articles.
Membership investment in VICA is not based on the number of employees but how much visibility an organization wants or needs. Corporate memberships start at the $1000 Circle of Influence level, which includes one ticket to three of our major events and twelve smaller ones. Higher level memberships can include event sponsorships with a speaking role and maximum visibility, tailored to meet a company’s specific business priorities.
Check our website at www.vica.com for our full calendar and our directory under Member Services (search alphabetically among our 365+ members many of whom may be your current or prospective clients and colleagues). We have nearly 80 VICA board members listed on our website, all of whom are decision makers and owners of area businesses.
Especially in this challenging economy, VICA is the ideal venue to form strategic alliances, to influence public policy and to preserve the local business community. We don’t “sell VICA” as a networking organization, but many of our members connect at events, serving on committees together or on the monthly trips to Sacramento. If you’ll tell us who or what companies you need to meet, we’ll try to make that happen for you.
We understand that budgets are tight and all expenditures must be justified; but with the economic uncertainty and important elections looming, the question should be, “Can you afford NOT to join VICA?”
Increase The Value of Your Business By Building A Successful Brand by Parham Nabatian
10/20/2011 06:04PM
A father and son both own cabinet installation companies, the son’s business is thriving while the father’s is struggling, what is the difference? Why is the son’s business working with larger corporate clients and earning greater profits?
One significant difference is that the son invested in branding his company while his father never did. When we talk about branding, we are not talking about just a logo, we are referring to the set of tools used to market a business and the experiences your customers have with your business. It is the perception you want people to have about your business.
Using visual and verbal consistency to promote your brand is a great first step. Building a brand is not about short-term results but about long-term results, it takes vision and dedication. And yes, every small business can accomplish this, here are the ways we worked with our client Cheyenne Dental Group to build a successful brand:
1. Defining the business and how we want to be perceived
Cheyenne Dental Group was started by Dr. My G. Tran, DDS, a dentist younger than most of his peers. He wanted to emphasize that his office incorporates the latest technology that is more advanced than surrounding competitors. However, unlike other state-of-the-art practices, Cheyenne Dental Group is affordable for most patients.
2. Determining the audience
Cheyenne Dental Group’s focus was to penetrate the Las Vegas community, a community that is saturated with dental practices, so we focused on a target audience – younger families and young couples. Research showed that the female in the family generally makes healthcare decisions; and the brand identity was developed to connect with the female audience. Dr. Tran wanted his patients to feel comfortable that his practice can provide comprehensive care for every family member.
3. Telling our story, one that people will remember
The visual illustration we developed of a young couple dancing on grass and a smiling cloud, exclaiming “When you smile…The world smiles back.” is an advertisement that the community has associated with Cheyenne Dental Group over the past 3 years. The ad was meant to signify that having a healthy and beautiful smile makes a positive impact. Along with the illustration we included a coupon that provides a financial incentive for people to experience care at Cheyenne Dental Group. In this ad, we were able to accomplish two things, show that Cheyenne cares about the health of a person’s smile and provides it at an affordable rate.
4. Consistency and details matter
Cheyenne’s colors, logo, and curved styling are all a part of their visual identity system used on all marketing collateral to maintain a consistent brand identity. The curves in the design are supposed to portray friendliness and engage the female audience, while the metallic shine on the logo communicate the cleanliness of the office.
We used these design elements and messages on all of the practice’s print collateral, web design and email marketing. Patients began to quickly identify what the logo, pictures and colors represented.
5. Follow-through with the customer experience
The perception you build with the branding design and messaging has to align with the reality of your service. Nike and Apple do a great job bringing the brands to life, when you walk into those company stores there is a specific experience they provide.
Again, Branding is not as simple as a logo, or consistent designs, it is a holistic approach of how you portray your business and follow through. Cheyenne Dental Group has been very successful with its brand; it makes a promise through visual and verbal consistency and keeps the promise with the patient experience.
Cheyenne Dental Group is a lot like Apple and Nike, it promises to provide “the premier dental experience”, and it follows through; from the friendliness of the front desk, to the flat screen televisions, and digital x-ray machines they use for exams.
Facts vs. Myths by John Rodriguez
10/13/2011 05:39PM
Myth #1: Overall, people hate billboards
• Most people say billboards provide useful information to travelers (Arbitron, 2002)
American public opinion has been steady for more than three decades, supporting regulation but not elimination of billboards (Dr. Charles R. Taylor, Professor of Marketing, Villanova University, 2002)
More than four out of five people feel digital billboards provide an important public service (Arbitron, 2008)
Myth #2: Billboard bans- help tourism in places like Vermont
• Tourism in Vermont and Maine (no billboards) has lagged the rest of the country and similar-sized states (William Lilley III, iMapData, 2001)
Loss of billboards causes immediate, significant economic harm to roadside businesses that rely on directional advertising
Most billboard advertising promotes local business; the travel-tourism sector is the Number One buyer of outdoor advertising
Myth #3: Most localities ban billboards
• Regulation – not prohibition – is the norm
Four out of five localities provide opportunities for the construction of billboards (Survey of local ordinances conducted by Cleveland State Law Professor Alan C. Weinstein)
Myth #4: Billboards distract drivers, causing traffic safety problems
• Billboards – even the most attention-getting billboards – do not affect driver behavior (Dr. Suzanne Lee, Virginia Tech Transportation Institute, 2004)
Comprehensive studies of accident data show that digital billboards have no statistical relationship with the occurrence of accidents (Tantala Associates, 2007, 2009, and 2010)
Digital billboards are safety-neutral from the driver standpoint (Virginia Tech Transportation Institute, 2007)
The federal government says tri-action billboards do not pose safety problems (FHWA, re amended Oregon state-federal agreement, Federal Register, April 2, 2002)
Myth #5: Billboards light up the skies at night
• Most sky glow – some 96 percent – is produced by sources other than billboards.
Digital billboards are equipped with sensors so that lighting levels are adjusted for surrounding conditions to avoid glare
Myth #6: Amortization is just compensation
• Amortization is an arbitrary time allotment, not compensation
Longstanding federal policy mandates cash compensation for billboards removed by government along federal roads
Forty-four states protect against amortization of billboard assets along state and local roads
Amortization is slow-motion confiscation (George F. Will, May 9, 1991)
Myth #7: Billboards are devices to promote vices: Smokes, sin and sex
• Since the 1999 settlement agreement, cigarette makers have not advertised their brands via outdoor formats
The outdoor industry’s code features an anti-obscenity clause and a 500-foot buffer from schools, parks, and places of worship)
OAAA member companies have adopted policies against accepting sexually-oriented business ads
Myth #8: Billboards don’t pay taxes
• Billboards are heavily taxed and heavily regulated
Billboard operators pay state, local and federal taxes
In addition to generating tax income for government, billboards also produce revenue via permit fees
• Most people say billboards provide useful information to travelers (Arbitron, 2002)
American public opinion has been steady for more than three decades, supporting regulation but not elimination of billboards (Dr. Charles R. Taylor, Professor of Marketing, Villanova University, 2002)
More than four out of five people feel digital billboards provide an important public service (Arbitron, 2008)
Myth #2: Billboard bans- help tourism in places like Vermont
• Tourism in Vermont and Maine (no billboards) has lagged the rest of the country and similar-sized states (William Lilley III, iMapData, 2001)
Loss of billboards causes immediate, significant economic harm to roadside businesses that rely on directional advertising
Most billboard advertising promotes local business; the travel-tourism sector is the Number One buyer of outdoor advertising
Myth #3: Most localities ban billboards
• Regulation – not prohibition – is the norm
Four out of five localities provide opportunities for the construction of billboards (Survey of local ordinances conducted by Cleveland State Law Professor Alan C. Weinstein)
Myth #4: Billboards distract drivers, causing traffic safety problems
• Billboards – even the most attention-getting billboards – do not affect driver behavior (Dr. Suzanne Lee, Virginia Tech Transportation Institute, 2004)
Comprehensive studies of accident data show that digital billboards have no statistical relationship with the occurrence of accidents (Tantala Associates, 2007, 2009, and 2010)
Digital billboards are safety-neutral from the driver standpoint (Virginia Tech Transportation Institute, 2007)
The federal government says tri-action billboards do not pose safety problems (FHWA, re amended Oregon state-federal agreement, Federal Register, April 2, 2002)
Myth #5: Billboards light up the skies at night
• Most sky glow – some 96 percent – is produced by sources other than billboards.
Digital billboards are equipped with sensors so that lighting levels are adjusted for surrounding conditions to avoid glare
Myth #6: Amortization is just compensation
• Amortization is an arbitrary time allotment, not compensation
Longstanding federal policy mandates cash compensation for billboards removed by government along federal roads
Forty-four states protect against amortization of billboard assets along state and local roads
Amortization is slow-motion confiscation (George F. Will, May 9, 1991)
Myth #7: Billboards are devices to promote vices: Smokes, sin and sex
• Since the 1999 settlement agreement, cigarette makers have not advertised their brands via outdoor formats
The outdoor industry’s code features an anti-obscenity clause and a 500-foot buffer from schools, parks, and places of worship)
OAAA member companies have adopted policies against accepting sexually-oriented business ads
Myth #8: Billboards don’t pay taxes
• Billboards are heavily taxed and heavily regulated
Billboard operators pay state, local and federal taxes
In addition to generating tax income for government, billboards also produce revenue via permit fees
State Job Creation Program a Huge Success! by Todd Lindgren
10/13/2011 05:30PM
Last week FilmL.A. released its third quarter 2011 on-location production statistics. One has reason to be cautiously optimistic about film and television production levels in Los Angeles. Firstly, production days in the major categories -- film, television and commercials -- were up. This is a sentence I’m not used to writing. Secondly, the California Film & Television Tax Credit Program was a major factor in the positive turn in production levels, boosting the Feature film category and preventing losses in TV Dramas. This means we have a tool that works to keep production in-state.
Feature film production days were up 49.9 percent for the quarter. The tax credit program put eight feature films that qualified to receive state tax credits to work on the streets of Los Angeles. These projects accounted for 260 production days or 37.6 percent of the total increase.
Production in the TV category was up 5.8 percent in the quarter, driven by increases in the Reality TV subcategory. This summer the LA area saw over 100 new reality show starts, and TV Reality now accounts for nearly half of all television production. What we’ve lost are many economically valuable TV Dramas, which spend far more per episode on vendors and wages and hire far more workers than Reality TV. TV Dramas were the only subcategory that saw losses in Q3. Declines in drama production would have been steeper were it not for six state-incentivized dramas that accounted for 10.4 percent of all area TV Drama days.
One of these shows, Body of Proof, racked up a lot of production days in L.A. this summer after relocating to California from Rhode Island in order to take advantage of the Film & TV Tax Credit. We need more shows like this. Unfortunately, Sacramento has not made it attractive for other TV shows to follow suit, since the legislature has sent tepid signals about its commitment to keeping our signature industry.
In my last blog article I bemoaned the unjust nature of the defeat (more like the perversion) of AB 1069, a piece of legislation that would have extended the Film & Television Tax Credit Program for five years but was cut down to a one-year extension by Senate President Pro Tem Darryl Steinberg and now awaits the Governor’s signature.
TV Shows like Body of Proof will not relocate to California if there is no guarantee the tax incentive will last beyond one year. When New York -- which has attracted a record number of television series this season after extending its tax incentive for five years -- makes a definitive statement about its desire for valuable film and television projects, California loses if it fails to compete.
After more than a decade of personally watching filmed entertainment flee California while Sacramento sits idly by, you’d think I would be pessimistic about the industry’s future in California. Fortunately, I’m still optimistic our elected officials will extend the proven job creator that is our Film & TV Tax Credit Program. Its impact on local film and television production levels gives me hope we have the tool to reverse the trend of runaway production. We have the tool, we just need to use it.
Feature film production days were up 49.9 percent for the quarter. The tax credit program put eight feature films that qualified to receive state tax credits to work on the streets of Los Angeles. These projects accounted for 260 production days or 37.6 percent of the total increase.
Production in the TV category was up 5.8 percent in the quarter, driven by increases in the Reality TV subcategory. This summer the LA area saw over 100 new reality show starts, and TV Reality now accounts for nearly half of all television production. What we’ve lost are many economically valuable TV Dramas, which spend far more per episode on vendors and wages and hire far more workers than Reality TV. TV Dramas were the only subcategory that saw losses in Q3. Declines in drama production would have been steeper were it not for six state-incentivized dramas that accounted for 10.4 percent of all area TV Drama days.
One of these shows, Body of Proof, racked up a lot of production days in L.A. this summer after relocating to California from Rhode Island in order to take advantage of the Film & TV Tax Credit. We need more shows like this. Unfortunately, Sacramento has not made it attractive for other TV shows to follow suit, since the legislature has sent tepid signals about its commitment to keeping our signature industry.
In my last blog article I bemoaned the unjust nature of the defeat (more like the perversion) of AB 1069, a piece of legislation that would have extended the Film & Television Tax Credit Program for five years but was cut down to a one-year extension by Senate President Pro Tem Darryl Steinberg and now awaits the Governor’s signature.
TV Shows like Body of Proof will not relocate to California if there is no guarantee the tax incentive will last beyond one year. When New York -- which has attracted a record number of television series this season after extending its tax incentive for five years -- makes a definitive statement about its desire for valuable film and television projects, California loses if it fails to compete.
After more than a decade of personally watching filmed entertainment flee California while Sacramento sits idly by, you’d think I would be pessimistic about the industry’s future in California. Fortunately, I’m still optimistic our elected officials will extend the proven job creator that is our Film & TV Tax Credit Program. Its impact on local film and television production levels gives me hope we have the tool to reverse the trend of runaway production. We have the tool, we just need to use it.
Employees Using Tablet Computers: Assess the Risks by Calvin Hedman
10/06/2011 03:20PM
When Apple launched the iPad, it created a new class of device that met with rave reviews and sold more than three million devices in the first few months. Currently, more than 29 million iPads have been sold and the third generation is rumored to be hitting the stores in the Spring of 2012.
Tablet computers are here to stay, as evidenced by the popularity of the iPad and the introduction of competitors such as Amazon's lower priced Kindle Fire.
The devices are popping up in all types of businesses including luxury car dealerships, restaurants, retail stores and hotels. Many people find the portability and functionality provide a competitive edge. In situations where it is impractical to pull out a laptop, boot it up and load information, you can easily whip out a tablet and review information with customers, prospects, suppliers and others.
But like many new technology devices, in addition to improving how businesses operate, they can involve a great deal of risk. Yet many tablet users, managers and executives do not understand the risks and have not taken steps to mitigate them.
When new technology hits the market, most businesses do not adopt it right away. However, some of their employees will buy new devices and begin using them to conduct business without the knowledge or approval of their employers.
The vast number of applications that exist for the iPad can be a double-edged sword. Employees may utilize their iPads in beneficial ways their employers have not envisioned. At the same time, employees may use tablet computers for tasks that could cause angst for senior executives, such as working on the company's yet-to-be released product or storing confidential blue prints on a cloud computing platform.
For many users, a tablet may seem like a more convenient laptop computer. But laptops have more security programs designed to protect them from theft, viruses and hacking. Lower-priced tablets, such as the Amazon Kindle Fire, could pose a bigger problem for employers since more employees will be able to afford to conduct business with them.
Don't ignore the threats posed by tablets. Instead, take the time to assess the risks and deploy countermeasures:
Does it make sense to buy tablet computers for employees? Depending on the size and the role they could play in your business, it may make sense to buy tablet computers for employees. Doing so can avoid the "gray area" of enforcing corporate policies for employees who use their personal devices to conduct business. If your company chooses to purchase tablets for those with a defined business need, maintain an up-to-date inventory.
Once an employee leaves or is terminated from the company, the devices must be returned. Some companies allow their employees to keep cell phones, laptops and other devices once they leave because the business has no use for now obsolete technology. But while the technology may be obsolete, the data it could contain is not. It is crucial to have an accurate inventory of devices deployed as well as processes in place to ensure that managers collect them.Better to be safe than sorry. Take another look at your company's computer use policy. Most companies have a policy that mandates employees establish a strong password (made up of letters, numbers and symbols) that they don't share in response to e-mail requests or phishing e-mails. Policies also prohibit employees from disabling anti-virus software.
Before allowing employees to use tablet computers in whatever manner you deem appropriate, ensure that all aspects of your computer use policy can be applied to them. Consider the following additional aspects of a computer policy that can be amended to apply to tablets:
- Deploy standard security such as a password and remote detonation of data in the event the tablet is lost, or stolen. There's a good chance someone may forget a tablet in a cab or leave one unattended at a coffee shop, airport, or even a conference attended by your company's competitors.
- Only permit the installation of a suite of company-approved applications. Employees should also be made aware that all other apps that reside on the iPad are not approved for use in connection with business-related tasks.
- Periodically submit the tablets to your company's IT personnel for review to ensure that there are no viruses or unauthorized apps being used to store company data.
Update your company data retention policies. In the event that your company becomes embroiled in litigation, it will likely be required to produce all types of paper and electronic documentation during the discovery phase. Your company's data retention policies should be updated to include how tablet-related data is being stored, managed and gathered during litigation. Keep in mind that Rule 34 of the Federal Rules of Civil Procedure is generally written to cover devices, such as tablet computers.
Consider forcing all e-mails to be routed through your company server so you can archive messages -- rather than allowing employees to configure devices to use personal e-mail services. It potentially limits information leakage and makes it harder for employees to steal data through their personal e-mail accounts. It can also limit the probability of a virus being transmitted to the company's networks.
Your attorney can provide best practices in data retention and management. In addition, place an unobtrusive bar code on the device so that it can be tracked and recorded throughout the discovery process.
Should iPads and tablet computers be banned at your company? Is the risk posed too great to allow the use of the devices? For example, if your company works on government contracts and handles classified information, the risk that the data could be lost or stolen may be too great to allow employees to use tablet computers. The same may be true for a medical company with confidential patient information. Banning tablets should only be undertaken in extreme circumstances, but it may be appropriate if the risk far outstrips the return.
As with most new types of technology, the inherent risk is far greater at the outset. iPads became very popular in a short period, in part due to companies and individuals adopting the new technology within the first six months of its launch.
Now is the time to pause and assess the real risk that iPads create in the workplace. While security vendors continue to develop software to protect iPads, your company should employ a mixture of technology, policies and procedures to ensure that the risk does not exceed the return.
Oil and Our Economy By: Gregory N. Lippe
10/06/2011 03:17PM
There has been much speculation over the years of the role of oil in our economy and in the motivation of our leaders both in the public and private sectors.
During the Persian Gulf War there were those who claimed that the only reason the United States was in the war was to grab the oil produced in the region. The same claims were made when the U.S. invaded Iraq in 2001. Both times we had Presidents that derived much of their income from the oil business and a wealthy Vice President who was also tied to the oil industry. As far as I know, the United States did not take over any oil from foreign interests as a result of the wars so if the main reason we went to war on both occasions was for oil (as many suggest) our efforts were certainly not successful. Quite to the contrary, we spent trillions of dollars of funds we didn’t have (therefore we borrowed, driving up the national deficit); lost thousands of lives and drove our economy into a tailspin that still does not appear to have any significant relief in sight. Did we really go to war for oil? How important is oil to our economy?
Although I submit that it is, our current President appears to believe that oil is not (or should not be) of great importance and that our main goal with respect to oil at this time should be to find a way to become less dependent on it as a resource for several reasons (not necessarily in the following order): 1st, to reduce our dependence on foreign oil, primarily from the middle-east, making us less vulnerable to terrorist sympathetic regimes, 2nd, to achieve a cleaner environment and 3rd as a means of creating a substantial amount of jobs.
With respect to reducing our dependence on foreign oil, I’m not sure that we are (or need to be) as dependent as we have been led to believe we are. The facts are that the U.S. currently consumes approximately 19 million barrels of oil per day and that approximately 9.1 million barrels or 48 percent of our daily consumption is produced in the United States and 52 percent is imported. Also, approximately 40 percent of our imported oil is from Canada and Mexico, therefore approximately 31 percent or 5.9 million barrels per day is imported from the entire middle-east. Based on an article in the opinion section of the Wall Street Journal, October 1-2, 2011 edition, we are significantly under-producing our own oil reserves (which include an estimated 24 billion barrels, enough to cover the entire amount of oil imported from the middle east for 11 years) from the Bakken fields of North Carolina (discovered in 2005).
With respect to achieving a cleaner environment, the use of alternative energy could certainly help and we should be working toward accomplishing that goal, which combined with producing more of our own oil, will further reduce our dependency on foreign oil. Although going “green” can definitely help the environment and can create jobs, I believe that increased production and use of oil will continue to retain and create more jobs than those that will result strictly from the “green” effort in the foreseeable future (keeping in mind that China is already surpassing us in green manufacturing). In addition to energy, there are approximately six thousand products currently made from oil. These products range from upholstery and carpeting to clothing, cameras, DVDs, artificial limbs, cortisone, antihistamines, aspirin, hair coloring, food preservatives telephones, tires, car bodies, boats, etc. As I have said before what we need to do is to incentivize the development of our own markets for our internally manufactured goods. Many of these products (made from oil) that are manufactured elsewhere can be manufactured in the U.S. again if we incentivize the purchase of U.S. made goods.
In conclusion, it appears that oil is and will continue to be very important to our economy for many years and we should focus on developing more of our own reserves while, at the same time, working to achieve alternative sources for energy.
International Pow Wow Coming to Los Angeles Spring 2012 by Carol Martinez
09/29/2011 05:40PM
Los Angeles will welcome U.S. Travel Association’s International Pow Wow, the travel industry’s premier international marketplace, April 21-25, 2012. The citywide event will highlight an array of great L.A. venues throughout the region, from landmark hotels and cultural and entertainment attractions to award-winning restaurants and neighborhood districts. Larry Kurzweil, President and COO of Universal Studios Hollywood, is Chairman of the Los Angeles Pow Wow Host Committee.
L.A. and the surrounding areas will see an immediate economic impact of $6.5 million as a result of hosting the convention and another estimated $350 million two to four years following Pow Wow because of the expected increase of international travel business. Tourism is the No. 1 industry in the city, with international visitors making up about 20 percent of the visitor market, but accounting for nearly 35 percent of visitor spending.
Universal Studios Hollywood already attracts international visitors to the San Fernando Valley, and when “Transformers: The Ride-3D” debuts in spring 2012, the Valley can expect to welcome even more visitors. International Pow Wow will also introduce visitors to additional new attractions that were not in Los Angeles the last time our city hosted Pow Wow in 2004, such as the Ronald Reagan Presidential Library and Museum and the Valley Performing Arts Center on the campus of Cal State Northridge. The all new “Lex Luthor: Drop of Doom” ride will open at Six Flags Magic Mountain in spring 2012 as well.
International Pow Wow attracts more than 1,500 international and domestic buyers from 70 countries, over 400 international media and travel suppliers and organizations from every region of the United States. With thousands of occupied hotel rooms and the Los Angeles Convention Center booking, Los Angeles’ International Pow Wow will have an immediate economic impact in 2012. Millions of dollars in future tourism are expected as a result of the bookings that take place during the five-day gathering. In addition to the marketplace and the hosted evening events, the International tour operators and media participate in dozens of neighborhood tours which showcase the many facets of Los Angeles, including the San Fernando Valley.
For up-to-date information on Pow Wow 2012, visit the LA INC. Web site at www.discoverLosAngeles.com/PowWow2012.
Carol Martinez is the Vice President of Media Relations and Communications for LA INC. The Los Angeles Convention and Visitors Bureau
L.A. and the surrounding areas will see an immediate economic impact of $6.5 million as a result of hosting the convention and another estimated $350 million two to four years following Pow Wow because of the expected increase of international travel business. Tourism is the No. 1 industry in the city, with international visitors making up about 20 percent of the visitor market, but accounting for nearly 35 percent of visitor spending.
Universal Studios Hollywood already attracts international visitors to the San Fernando Valley, and when “Transformers: The Ride-3D” debuts in spring 2012, the Valley can expect to welcome even more visitors. International Pow Wow will also introduce visitors to additional new attractions that were not in Los Angeles the last time our city hosted Pow Wow in 2004, such as the Ronald Reagan Presidential Library and Museum and the Valley Performing Arts Center on the campus of Cal State Northridge. The all new “Lex Luthor: Drop of Doom” ride will open at Six Flags Magic Mountain in spring 2012 as well.
International Pow Wow attracts more than 1,500 international and domestic buyers from 70 countries, over 400 international media and travel suppliers and organizations from every region of the United States. With thousands of occupied hotel rooms and the Los Angeles Convention Center booking, Los Angeles’ International Pow Wow will have an immediate economic impact in 2012. Millions of dollars in future tourism are expected as a result of the bookings that take place during the five-day gathering. In addition to the marketplace and the hosted evening events, the International tour operators and media participate in dozens of neighborhood tours which showcase the many facets of Los Angeles, including the San Fernando Valley.
For up-to-date information on Pow Wow 2012, visit the LA INC. Web site at www.discoverLosAngeles.com/PowWow2012.
Carol Martinez is the Vice President of Media Relations and Communications for LA INC. The Los Angeles Convention and Visitors Bureau
The California Dream Act by Dana Martin
09/29/2011 05:32PM
Governor Jerry Brown is likely to sign the California Dream Act into law. Doing so will enable illegal immigrants to compete for state financial aid.
I am not insensitive to the plight of illegal immigrants. Many live in abject poverty struggling daily to provide for their families. Living their lives in fear of deportation, they do not have insurance and avoid medical care, even when they are seriously ill. Largely, the students who will benefit from the Dream Act were brought here as young children. They did not choose to come here illegally. Their parents made that choice for them. These young adults have lived here most of their lives. They are more at home here in America than they are in the country of their birth. Some do not even speak their native tongue. But, what they all want is a brighter future.
Illegal immigration is a complex, heart wrenching issue of our own design. The United States has never done a good job controlling illegal immigration. If anything, weve turned a blind eye towards illegal immigrants from Mexico because they historically have been a cheap source of labor.
That big ol rooster of illegal immigration is now coming home to roost. How were going to fix it remains to be seen. But, the California Dream Act is not the answer.
Illegal immigration is a federal issue. One theyve ignored at our expense, but a federal issue nevertheless. The California Dream Act does nothing to address the problem and it does not create a path to citizenship.
The additional cost of the Dream Act to the states $1.3 billion Cal-Grant entitlement program is estimated to be $13 million annually. That may not seem significant, but when the state is drowning in red ink, it is an expenditure that is ill-timed at best. Im also very skeptical of the $13 million estimate. Since when has any of the states programs come in anywhere close to its original estimate?
Assemblymember Gil Cedillo of Los Angeles who authored the California Dream Act likes to speak about the economic benefits of a college education. He points out how much more college graduates earn on the average than high school graduates. He points out the economic benefit of hiring students who have demonstrated such tremendous talent and resilience. It seems Assemblymember Cedillo has forgotten it is against federal law for companies to hire illegal immigrants. Why should California provide a college education for an illegal immigrant who cant legally work in the United States?
This is a legal and an economic matter. Our leaders need to develop a backbone and stop worrying about being called "racists" for opposing illegal immigration. Lets start addressing illegal immigration by securing our borders and streamlining the path to legal immigration for these students and these workers who deserve a chance at citizenship.
By not addressing the core issues, the California Dream Act may very well become our nightmare.
I am not insensitive to the plight of illegal immigrants. Many live in abject poverty struggling daily to provide for their families. Living their lives in fear of deportation, they do not have insurance and avoid medical care, even when they are seriously ill. Largely, the students who will benefit from the Dream Act were brought here as young children. They did not choose to come here illegally. Their parents made that choice for them. These young adults have lived here most of their lives. They are more at home here in America than they are in the country of their birth. Some do not even speak their native tongue. But, what they all want is a brighter future.
Illegal immigration is a complex, heart wrenching issue of our own design. The United States has never done a good job controlling illegal immigration. If anything, weve turned a blind eye towards illegal immigrants from Mexico because they historically have been a cheap source of labor.
That big ol rooster of illegal immigration is now coming home to roost. How were going to fix it remains to be seen. But, the California Dream Act is not the answer.
Illegal immigration is a federal issue. One theyve ignored at our expense, but a federal issue nevertheless. The California Dream Act does nothing to address the problem and it does not create a path to citizenship.
The additional cost of the Dream Act to the states $1.3 billion Cal-Grant entitlement program is estimated to be $13 million annually. That may not seem significant, but when the state is drowning in red ink, it is an expenditure that is ill-timed at best. Im also very skeptical of the $13 million estimate. Since when has any of the states programs come in anywhere close to its original estimate?
Assemblymember Gil Cedillo of Los Angeles who authored the California Dream Act likes to speak about the economic benefits of a college education. He points out how much more college graduates earn on the average than high school graduates. He points out the economic benefit of hiring students who have demonstrated such tremendous talent and resilience. It seems Assemblymember Cedillo has forgotten it is against federal law for companies to hire illegal immigrants. Why should California provide a college education for an illegal immigrant who cant legally work in the United States?
This is a legal and an economic matter. Our leaders need to develop a backbone and stop worrying about being called "racists" for opposing illegal immigration. Lets start addressing illegal immigration by securing our borders and streamlining the path to legal immigration for these students and these workers who deserve a chance at citizenship.
By not addressing the core issues, the California Dream Act may very well become our nightmare.
AB 900 – what’s big enough for CEQA fast-tracking? by Aaron Green
09/29/2011 05:06PM
Governor Brown should be applauded for his signing of AB 900 – a bill that would provide an expedited legal review for large development projects in California that are environmentally sustainable and that would contribute $100 million or more in investment in California. It’s about time! Our firm represents several clients working on projects right now that will benefit from this legislation and our clients will be very pleased to see this bill become law. Its passage will send a strong and positive message to the business community that California cares about creating jobs and improving the state of our economy.
But California Environmental Equality Act (CEQA) reform must extend to those beyond the big boys in the development industry. Some Homeowners Associations, Neighborhood Councils and community activists have antidevelopment agendas, no matter what type of development is proposed, and these few bad apples exploit CEQA in an effort to slow down the entitlement process, often delaying projects for years or even decades. This results in increased costs for developers; while delay can be very expensive and impact the bottom line substantially for large developers, it can bankrupt a small independent developer who cannot afford to build a $100 million project that would qualify for fast-tracking under AB 900.
It’s the small developer, who, upon hearing that a neighborhood association is dogmatically litigious in the area he hopes to build a 30 unit apartment build, will turn to us after we’ve discussed a project and say: “forget about it. I don’t want to deal with that headache and years of litigation.” The small developers can’t afford to hire a team of lawyers; however their projects deserve protection from meritless CEQA litigation too.
We applaud the Legislature for passing AB 900 and commend Governor Brown for signing this important bill. But we need to go a step further. We need true CEQA reform.
Just to be clear: we are NOT advocating for revoking laws that are fundamental for protecting our environment, nor are we suggesting that the public should not have the right to comment during the EIR process. However, as long as the CEQA can be manipulated by neighborhood organizations, (or any project opponents for that matter) our business environment in California will continue to suffer without any added benefit to the environment CEQA intends to protect. Our lawmakers need to clean up CEQA so that environmental protections remain while simultaneously closing the loopholes that allow for the manipulation of this process by the ill-intentioned few.
Aaron Green is the Director of Political and Community Relations for the The Afriat Consulting Group, Inc.
VICA’S 23rd Annual Business Forecast Conference by Barbara C. Oberman
09/22/2011 05:03PM
The Big Economy that Should is the theme of VICA’s 23rd Annual Business Forecast Conference scheduled for Friday, October 28. Each year the conference draws more than 450 business leaders to prepare for the coming year. The conference offers a rare opportunity for attendees to discuss timely issues with high ranking officials and public officers.
With the economy struggling, business and consumer confidence at an all time low and everyone talking about another recession, this year’s conference suggests we can do much better.
The program begins with senior expert economists that will offer their assessment of the economy. Keynote speakers include Gary Schlossberg, Senior Economist for Wells Capitol Management. Mr. Schlossberg will discuss the national economic picture. William Roberts, Director of the SFV Economic Research Center & Professor of Economics, CSU, Northridge, will address the local economy, and economist Nancy Sidhu, LAEDC, will provide the California forecast.
The daylong conference looks at the fundamental issues and industries that impact the California and local economy. Eight panel discussions will be held throughout the day. Organized in “tracks” the first track, titled “All Aboard the Consumer Express,” will address the impact of e-commerce on local brick and mortar businesses with a panel called, Shopping Wars: Paper, Plastic or PJ’s. Since tourism is one of the Los Angeles regions top industries, the second panel titled Touchdown for Tourism, will discuss the significance of tourism to the area and examine the potential impact of the new football stadium and enhanced convention space.
Track 2 is titled “Stop this Train, I Want to Get Off.” With the never-ending foreclosure crisis, a glut of empty office and retail space, and a lack of demand for new homes, the experts on this panel (Is Anybody Buying It?) will provide an overview of the challenges facing the residential and commercial real estate markets. This track also features a panel about commercial lending and credit for small businesses, titled: The Pursuit of Capitol.
Track 3 is titled “Riding the Rails of the Future.” This last summer the closure of the 405 freeway, “Carmageddon” illustrated how we can effectively prevent gridlock. Or did it? Transportation officials from across the state will discuss what is being done to address our ongoing traffic dilemmas and the role of initiatives like America Fast Forward during the panel called, Measure R We There Yet? In a second panel titled Too Green to Fail? expert panelists will review the economic viability of green jobs to determine whether there is hope for this sector, or just hype.
Track 4 “Is there Light at the End of the Tunnel?” Businesses in the private sector appear frozen in place and have stopped hiring. California’s unemployment rate continues to surpass national averages. Experts in workforce education will discuss training programs, partnerships and solutions for amplifying the state’s employment rate in the panel titled Matchmaker, Matchmaker, Find Me a Job. Last One out, Get the Lights is the title of the second panel in this track. With strict regulations, high taxes, and layers of bureaucracy, businesses cannot get out of California fast enough. Expert panelists will discuss how to keep top companies in the state and attract new business.
The luncheon program will feature a keynote address from a noteworthy business or political leader.
VICA’s 23rd Annual Business Forecast Conference, promises to provide business leaders with practical information and insights to help guide their businesses and prepare for the future.
Exhibitor booth packages and sponsorships are still available. Contact the VICA office at 818-817-0545 for details.
Barbara C. Oberman serves on VICA’s Membership and Healthcare committees, and is President of Barbara C. Oberman Insurance Services, Inc.
Obama’s Jobs Plan Delivers a Blow to Job Growth by Dana K. Martin
09/15/2011 07:12PM
When President Obama announced his Jobs Bill before a prime time audience September 8, he talked about cutting payroll taxes, building infrastructure and creating jobs. What he did not talk about was that his Jobs Bill would limit the tax exemption for municipal bond interest to 28 percent for couples earning $250,000 a year. Buyers of municipal bonds largely come from this income bracket.
Since the 16th Amendment was ratified in 1913, the United States has chosen not to directly tax the interest on state and municipal bonds. Interestingly, Arthur A. Ekirch, Jr., in his book The Sixteenth Amendment: The Historical Background, points out that New York Governor Charles Evans Hughes, spoke out against the income tax amendment because he believed it would give the federal government the power to tax state and municipal bonds. One hundred years later, President Obama’s Jobs Bill threatens to do just that.
Capping the tax exemption for municipal bonds punishes state and local governments. To maintain the demand for municipal bonds, issuers will be forced to raise the interest paid on those bonds. Doing so increases the interest cost on bonds substantially.
Matt Fabian of Municipal Market Advisors says that the cost to state and local issuers could top $10 billion in additional interest. Mr. Fabian estimates that an investor in a 5 percent tax-exempt bond would need to receive an additional 50 basis points (one-half percent) to realize the same yield on that bond after tax.
According to bondbuyer.com, a rise of 50 basis points would result in an additional interest expense to issuers of about 9 percent for a 30-year bond or $90,000 on a $1 million bond. Extrapolate that out to a $1.5 billion tax-exempt general obligation bond issued by California to pay for schools, hospitals, roads, and mass transit, the added cost to California in interest payments would be an estimated $135 million.
If the intent of the administration is to create jobs, this provision of the Jobs Bill is a job killer. To markedly increase the cost of issuing bonds when we are still reeling from the effects of the recession is not going to stimulate job growth. California’s $26 billion deficit could grow much deeper if investors are discouraged from buying California bonds. Funding for the infrastructure construction being promoted by President Obama to create jobs will be seriously impacted. No construction. No jobs.
Few of us are under any illusion this Jobs Bill will pass through Congress. But, the precedent being set is very dangerous. Just as Governor Charles Evans Hughes feared, President Obama’s Jobs Bill effectively places a federal tax on state and municipal bonds. It isn’t the “wealthy” targeted by President Obama who will pay this tax. Our cities and our states will pay it if they are going to continue to attract buyers willing to invest.
My Civics Teacher Got It All Wrong (Or Did He?) by Todd Lindgren
09/15/2011 07:06PM
A prevalent opinion among Californians -- one fostered by recurring budget deficits and legislative gridlock -- is that Sacramento is broken. A quote often (erroneously) attributed to Otto von Bismarck is, “Laws are like sausages – it is best not to see them being made.” But there’s one bill I’ve chosen to watch closely as it’s gone through the process of being made, AB 1069 (Fuentes) – a bill to extend the Film & Television Tax Credit Program for five years.
With September 9th the deadline for the legislature to pass bills before recess, there was some serious wheeling and dealing going on in the halls of the Capitol last week. I’m not politically naïve, but I’m nonetheless flabbergasted at the perversion of the legislative process on display with respect to AB 1069, a piece of legislation that was vital to protecting our entertainment industry and putting tens of thousands of Californians to work by keeping billions of dollars of film industry spending in-state. A fissure in the legislative process that impacted AB 1069 lends credence to claims our system is broken.
I remember from high school civics the concept of “balance of power” and roles of the respective branches of government. I don’t remember my teacher stressing the importance of the position of Senate President Pro Tem. Since AB 1069 was first read in February, it has sailed through Assembly and Senate committees, as well as the full Assembly by votes of 9-0, 8-0, 16-1, 77-1, 9-0 and 9-0. However, when it landed on Senate President Pro Tem Darrell Steinberg’s desk, he seemingly unilaterally imposed a one-year extension limit and tied the amount of credits available to budget “triggers,” circumventing the will of each legislator and thousands of Californians who had supported it along the road to passage. I feel so betrayed -- my civics teacher never taught me the Senate President Pro Tem had veto powers!
In the final hours of the session, the Senate passed the one-year extension while removing the triggers, an outcome welcomed by some program supporters. However, a one-year extension is a statement to the industry that its future in California is uncertain. Television producers especially need stability and consistency in incentive programs when deciding where to locate. TV Shows like “Body of Proof” which moved from Rhode Island to California after qualifying for California’s incentive will not uproot for guarantees of only a year.
Each episode of a one-hour drama employs 254 cast and crew and 150 extras, bringing $70,000 in sales tax and $190,000 in income tax. Now, multiply that by an entire season and you’ll see the tax revenue is in the millions per show. Well aware of this fact, New York State expanded and extended its tax credit program in 2010 for five years. As a result, New York’s Mayor Bloomberg recently touted the record 23 primetime TV shows filming in New York (http://www.hollywoodreporter.com/news/new-york-mayor-touts-record-225880). That’s twenty-three times the tax revenue stated above NOT going to California’s coffers.
Assemblyman Fuentes has vowed to bring back a five-year extension bill when the legislature reconvenes in 2012. Maybe Senator Steinberg -- in the spirit of compromise my civics teacher taught me is essential to bill-making -- will recognize the vital need to keep our entertainment industry from decimation and will support that bill. Or, maybe he’ll end up supporting the view that Sacramento is still broken.
The Twilight Zone by Damian Jones
09/15/2011 07:02PM
VICA always does a great job of getting top-rate speakers on a variety of topics. These speakers are usually interesting and sometimes even honest about politics and policy in California. That having been said…did anyone who attended the Bill Lockyer speech a couple of weeks ago think that it was actually a Twilight Zone episode.
For those who weren’t in attendance let me quickly recap what he said. Among Lockyer’s assertions – state government isn’t too big (state spending is smaller than it had been under Republican Governors); there are no major problems with the state pension system; the rating agencies who rate California bonds were unfair to this state; and most importantly…state government can’t really do much to spur economic growth.
I was hopeful that Lockyer would have been more honest. He has been known to throw some brutal “let’s get with it and stop the partisan bickering” bombs in Sacramento from time to time. But he seemed to disappoint most as he stuck to the party line script. He saw no fault with anything that California state leadership was undertaking or more importantly with the legacy issues of the state government bureaucracy.
Lockyer cited a number of statistics that in the absence of reality one might look at dispassionately and agree with his assertions. However, Californians don’t have the luxury of ignoring reality. The reality of the situation in this state – we have the second highest unemployment rate in the US, we have a regulatory scheme that drives businesses from this state and our entire economic development strategy can no longer be based on the weather.
Unfortunately this type of “stick your head in the sand” leadership is what we see in Sacramento more often than not. At this point businesses need to ask themselves – if this is the current leadership position of California elected officials is there any hope for a different tomorrow in the long-term future of this state?
For those who weren’t in attendance let me quickly recap what he said. Among Lockyer’s assertions – state government isn’t too big (state spending is smaller than it had been under Republican Governors); there are no major problems with the state pension system; the rating agencies who rate California bonds were unfair to this state; and most importantly…state government can’t really do much to spur economic growth.
I was hopeful that Lockyer would have been more honest. He has been known to throw some brutal “let’s get with it and stop the partisan bickering” bombs in Sacramento from time to time. But he seemed to disappoint most as he stuck to the party line script. He saw no fault with anything that California state leadership was undertaking or more importantly with the legacy issues of the state government bureaucracy.
Lockyer cited a number of statistics that in the absence of reality one might look at dispassionately and agree with his assertions. However, Californians don’t have the luxury of ignoring reality. The reality of the situation in this state – we have the second highest unemployment rate in the US, we have a regulatory scheme that drives businesses from this state and our entire economic development strategy can no longer be based on the weather.
Unfortunately this type of “stick your head in the sand” leadership is what we see in Sacramento more often than not. At this point businesses need to ask themselves – if this is the current leadership position of California elected officials is there any hope for a different tomorrow in the long-term future of this state?
Website Design Tips – Strengthening Your Core! by Parham Nabatian
09/08/2011 04:21PM
If you have spoken to a personal trainer or read about fitness, you’ve learned about the importance of your core muscles. Strengthen your core muscles, and you will inevitably strengthen your body’s other muscles. Your website should be viewed as the Core of your online marketing, ensuring its strength, will strengthen the rest of your marketing.
While there is a new popular social media platform or online marketing tool every couple months, your website remains the most valuable asset because of the control you maintain. If optimized, your website is typically one of the top results when someone Google’s your business, so placing your focus here before signing up for that new social media site should be your priority.
Here are 6 approaches you should take:
1. Have a clear and easy-to-see headline that tells people the purpose of your business. Don’t assume that people know what your company does. Using large fonts for headlines that attract attention and descriptive call-to-actions will enhance the user experience.
2. If you’re directly selling a product or service, you should explain why they need to buy and the advantages of your product in a bullet point format.
3. Give to get, if you want to get email addresses for your email marketing or attract more Facebook likes, give something away. For example, a dentist can mail a free toothbrush to people in a 5-mile radius if they join his/her email list.
4. Organization matters, treat each web page with a purpose by driving your visitor with one key message on each page.
5. Make the fonts and messaging on your website legible to all audiences. Contrary to what people believe, older people do read websites, and size 12, light grey fonts may not be legible for them.
6. Use contrasting color/shapes to make certain links and messages stand out.
While there is a new popular social media platform or online marketing tool every couple months, your website remains the most valuable asset because of the control you maintain. If optimized, your website is typically one of the top results when someone Google’s your business, so placing your focus here before signing up for that new social media site should be your priority.
Here are 6 approaches you should take:
1. Have a clear and easy-to-see headline that tells people the purpose of your business. Don’t assume that people know what your company does. Using large fonts for headlines that attract attention and descriptive call-to-actions will enhance the user experience.
2. If you’re directly selling a product or service, you should explain why they need to buy and the advantages of your product in a bullet point format.
3. Give to get, if you want to get email addresses for your email marketing or attract more Facebook likes, give something away. For example, a dentist can mail a free toothbrush to people in a 5-mile radius if they join his/her email list.
4. Organization matters, treat each web page with a purpose by driving your visitor with one key message on each page.
5. Make the fonts and messaging on your website legible to all audiences. Contrary to what people believe, older people do read websites, and size 12, light grey fonts may not be legible for them.
6. Use contrasting color/shapes to make certain links and messages stand out.
A change of focus by Gregory N. Lippe
09/08/2011 04:19PM
It’s difficult to turn on a radio, watch a television news show, read a newspaper or surf the internet without being confronted with major concerns about the lack of jobs and the crippled economy. We have been bombarded with a tremendous amount of rhetoric from politicians who blame the current administration and claim to have the solutions. We also hear from the optimists who talk about the great times ahead “when the economy turns around.” Unfortunately with all of the rhetoric I have yet to hear a convincing message as to how the economy is going to turn around and how jobs are going to be created.
Government subsidies and short term tax incentives (such as hiring credits) although possibly providing a quick fix will certainly not provide the sustained growth we need to survive and flourish. It seems to me that the best way to assure continued job creation and economic growth is to go back to domestic manufacturing of basic products that people need every day. New technology and so-called green products should definitely be part of the equation but should not be the be-all and end-all of our focus.
Unfortunately the majority of the manufacturing of everyday products has gone to foreign countries where labor is cheaper resulting in cost being the market driver even though the products may be of substantially lower quality with very short useful lives. Because a huge number of Americans are suffering from difficult financial circumstances, who can blame them for buying the least expensive products even if the money they spend goes to fuel the economies of those countries that are, in essence, taking their jobs away.
The bottom line is the only way for us to be successful at manufacturing again is to create our own markets for our products. Rather than providing incentives to employers to hire workers we should be providing incentives to people to buy the products that the employers produce. Having a market to sell one’s products to is the best way I know of to stimulate manufacturing and create jobs that will be permanent rather than lasting only as long as the hiring incentives do. I am sure that there are many possibilities for stimulating markets. During WWII patriotism (along with a heavy national marketing campaign) was used successfully to stimulate the sale of government bonds. Why don’t we have a national marketing campaign to stimulate patriotism and the purchase of U.S. products? Why don’t we use tax policy to provide deductions or tax credits for purchasing U.S. made products? I am sure that there are many more tools that can be utilized to incentivize the purchase of U.S. goods if our leadership will start focusing on creating markets and manufacturing for those markets.
Government subsidies and short term tax incentives (such as hiring credits) although possibly providing a quick fix will certainly not provide the sustained growth we need to survive and flourish. It seems to me that the best way to assure continued job creation and economic growth is to go back to domestic manufacturing of basic products that people need every day. New technology and so-called green products should definitely be part of the equation but should not be the be-all and end-all of our focus.
Unfortunately the majority of the manufacturing of everyday products has gone to foreign countries where labor is cheaper resulting in cost being the market driver even though the products may be of substantially lower quality with very short useful lives. Because a huge number of Americans are suffering from difficult financial circumstances, who can blame them for buying the least expensive products even if the money they spend goes to fuel the economies of those countries that are, in essence, taking their jobs away.
The bottom line is the only way for us to be successful at manufacturing again is to create our own markets for our products. Rather than providing incentives to employers to hire workers we should be providing incentives to people to buy the products that the employers produce. Having a market to sell one’s products to is the best way I know of to stimulate manufacturing and create jobs that will be permanent rather than lasting only as long as the hiring incentives do. I am sure that there are many possibilities for stimulating markets. During WWII patriotism (along with a heavy national marketing campaign) was used successfully to stimulate the sale of government bonds. Why don’t we have a national marketing campaign to stimulate patriotism and the purchase of U.S. products? Why don’t we use tax policy to provide deductions or tax credits for purchasing U.S. made products? I am sure that there are many more tools that can be utilized to incentivize the purchase of U.S. goods if our leadership will start focusing on creating markets and manufacturing for those markets.
City, Let’s Adopt More Entitlement Streamling, With Teeth by Victor V. Martin
09/01/2011 08:38PM
In a time of great economic downturn, businesses and the city alike would both benefit from a more streamlined entitlement process. This is especially true for smaller and medium-sized businesses that come before the city, the lucky ones who can even pay for entitlements in this economic climate. An ordinance or City Council action that gives the Planning Department more authority to let mid-level managers or staffers make quicker decisions as to how what are essentially administrative requests are handled would free up staff time so that city staff can then focus its energies on the broader goals of the Planning Department.
A solution to address the root of the matter would be an ordinance that allows planning managers more flexibility to make decisions based on the size and scope of a proposal. Naturally, larger entitlement proposals will be more expensive, complex and time consuming. However, many of the businesses that come before the financially-strapped city are not of that size. With ever-increasing fees across the board, it is incredibly expensive for modest businesses to locate in the city or to grow their business.
An updated code–adopted by council–with broader authority to allow planners to approve projects within certain larger parameters would benefit businesses and the city. The months and months that it takes to obtain even minor approvals can drive a business to financial ruin. As a result, businesses choose not locate in the City of Los Angeles.
I will be the first to say that Planning and more particularly Building & Safety have done a great job of working with stakeholders in land use on getting feedback to streamline the approval process. But this is only a partial approach to address the root of bureaucratic gridlock within the city. The City Council should step up to the plate and adopt a policy or an amendment to the ordinance that gives city departments, Planning in particular, the very authority they need to empower mid-level managers or those working under them more ability to approve small or even medium-sized requests.
For example, I worked to entitle a mere second story to an existing building at a school. Yet, the stifling entitlement process took well over a year to complete where in all honesty it should have been signed off by a Zoning Administrator in a matter of weeks. That is where the need to change the actual ordinance comes in. Had an ordinance with teeth given more discretion to Zoning Administrators or managers in Planning, the project would have been approved sooner and this in turn would have given the ever shrinking and more valuable Planning staff the ability to work on more important priorities such as planning for the city’s future, community plans, infrastructure, a pedestrian-friendly environment, sustainability, etc. Now that would be real planning.
Victor V. Martin is the Director of Land Use at The Afriat Consulting Group, Inc.
A solution to address the root of the matter would be an ordinance that allows planning managers more flexibility to make decisions based on the size and scope of a proposal. Naturally, larger entitlement proposals will be more expensive, complex and time consuming. However, many of the businesses that come before the financially-strapped city are not of that size. With ever-increasing fees across the board, it is incredibly expensive for modest businesses to locate in the city or to grow their business.
An updated code–adopted by council–with broader authority to allow planners to approve projects within certain larger parameters would benefit businesses and the city. The months and months that it takes to obtain even minor approvals can drive a business to financial ruin. As a result, businesses choose not locate in the City of Los Angeles.
I will be the first to say that Planning and more particularly Building & Safety have done a great job of working with stakeholders in land use on getting feedback to streamline the approval process. But this is only a partial approach to address the root of bureaucratic gridlock within the city. The City Council should step up to the plate and adopt a policy or an amendment to the ordinance that gives city departments, Planning in particular, the very authority they need to empower mid-level managers or those working under them more ability to approve small or even medium-sized requests.
For example, I worked to entitle a mere second story to an existing building at a school. Yet, the stifling entitlement process took well over a year to complete where in all honesty it should have been signed off by a Zoning Administrator in a matter of weeks. That is where the need to change the actual ordinance comes in. Had an ordinance with teeth given more discretion to Zoning Administrators or managers in Planning, the project would have been approved sooner and this in turn would have given the ever shrinking and more valuable Planning staff the ability to work on more important priorities such as planning for the city’s future, community plans, infrastructure, a pedestrian-friendly environment, sustainability, etc. Now that would be real planning.
Victor V. Martin is the Director of Land Use at The Afriat Consulting Group, Inc.
