Daily Business Report: Monday, May 16, 2022
Are California’s companies about to get more transparent?
by Grace Gedye
If you’re one of many Californians looking for a job, chances are you’ve run into some familiar frustrations: unclear pay ranges and benefits. And how do you know if the company is a good employer?
If two Democratic state lawmakers have their way, employers might soon have to disclose a lot more information about pay and internal practices. Both bills, working their way through the California Legislature, face ardent opposition from powerful business groups, who fear the proposed laws could lead to unfair comparisons and expensive lawsuits.
The bills are part of a larger push from states, the federal government and, in some cases, employers themselves to make companies more transparent. The California legislators have two goals: shrink gender- and race-based pay gaps, while also increasing the quality of jobs.
Companies in several states — including California — currently must tell workers about a job’s pay ranges upon request, while Colorado, Washington and New York City have passed measures in recent years requiring companies to put pay ranges in job postings. Intel has begun publishing data on how it pays its workforce, and an increasing share of the largest companies disclose some data on their racial and ethnic makeup. Meanwhile, the chair of the federal Securities and Exchange Commission is interested in new rules that would make public companies disclose data about how they treat their employees.
TOP PHOTO: Illustration by Miguel Gutierrez Jr., CalMatters/iStock
El Cerrito housing plan for homeless moves forward
A plan to build 40 apartment homes in El Cerrito for individuals dealing with chronic homelessness recently moved a step closer to fruition. The plan is for phase 1 to be 40 units of permanent supportive housing and phase 2 140 units of affordable housing.
The PATH Villas El Cerrito as proposed will take shape at 5476 El Cajon Blvd. Excavation on the location is already happening, with underground parking taking shape.
According to PATH Ventures director of media Tyler Renner, the property under construction is on the site previously occupied by various businesses over time. Renner added the construction of Family Health Centers of San Diego’s (FHCSD’s) proposed development is an upgrade to the El Cajon corridor.
Recently, the City of San Diego, the San Diego Housing Commission and the County of San Diego applied to obtain state funding under Project Homekey that will go towards financing the proposed development. While the funding request is expected to be approved, planners will reportedly look to secure other funding to finish the project if needed.
Tijuana airport opens new building to ease
travel for CBX sky-bridge passengers
Tijuana’s international airport has opened a new 430,000-square-foot building to facilitate travel for thousands of passengers who use the Cross Border Xpress sky bridge daily.
The new processing facility adds more southbound screening lines for Immigration and Customs in Mexico. It will also add nearly 40 check-in counters and two new boarding gates.
The opening of the two-story building stems from a passenger growth at the Tijuana airport and Cross Border Xpress, or CBX. Both have reported a significant economic recovery after the height of the pandemic.
California’s $100 billion surplus: What to know about Newsom’s spending plan
by Ben Christopher
“Simply without precedent.”
Gov. Gavin Newsom is a man of many superlatives, but even he seemed to struggle Friday to adequately describe just how much extra cash the state of California will have to spend in the coming year’s budget: $97.5 billion.
Speaking for more than two hours in a press conference in Sacramento, Newsom unveiled his latest record spending proposal for the coming fiscal year. Riding a superheating economy and drawing disproportionately from the state’s highest earners, the state is now projected to have a surplus bigger than California — or any state — has ever had, and significantly more than the $76 billion that the governor predicted in January.
Roughly half of the surplus is required by law to be spent on education. That leaves “only” roughly $49 billion in discretionary money, and the governor wants to reserve 99 percent of that for one-time spending:$18.1 billion to provide financial relief for Californians buffeted by inflation, plus $37 billion for infrastructure investments, including $5.6 billion for education facility upgrades, and an extra $2.3 billion for the ongoing fight against COVID-19.
California Coastal Commission rejects
desalination plant for Huntington Beach
The California Coastal Commission has rejected the proposed construction of a desalination plant in Huntington Beach, sealing the controversial project’s fate after more than 20 years of debate.
The unanimous decision about the $1.4-billion plant in Huntington Beach is pivotal because it sets a high bar for the future of turning seawater into drinking water in California, which can help buffer its vulnerable water supply against drought.
The Coastal Commission staff had advised the commission to deny approval — citing, among other factors, the high cost of the water and lack of local demand for it, the risks to marine life and the possibility of flooding in the area as sea levels rise.
Executive Director Jack Ainsworth said their recommendation was not a referendum on the future of desalination in California, pointing to more optimistic prospects for another project, the proposed Doheny Desalination Facility in south Orange County’s Dana Point.
Shannon Stubblefield named to a top post at MiraCosta College
Shannon Stubblefield, an experienced leader in fundraising and developing community partnerships, has been named as the new vice president of institutional advancement and executive director of the foundation at MiraCosta College.
Stubblefield begins her post at MiraCosta College on June 1 after 10 years as chief philanthropy officer for North County Lifeline. Stubblefield led the community engagement department for the nonprofit organization that works with families in North County who are dealing with challenges, such as poverty or mental health issues.
In her new role, Stubblefield will oversee the college’s foundation, institutional advancement efforts, and marketing department.
Stubblefield, a native of Southern California, earned her bachelor’s degree in business management from San Diego State University.
She began working in 2001 with a job at the nonprofit Infoline, now known as 2-1-1 San Diego.
That job sparked an interest in fundraising and philanthropy, leading her to earn a master’s degree at the University of San Diego’s Nonprofit Management and Leadership program.
Fears that Fed’s actions could trigger a recession
by Doug Page
With the yield on the 10-year Treasury Note hovering around 3 percent, two industry economists predict the Fed’s attempts to push down inflation will make for a hard slog with implications not only for the economy and a possible recession, but also for the housing market and, possibly, mortgage rates.
“The Fed will have trouble putting the inflation genie back in the bottle,” said Frank Nothaft, an economist with financial services firm CoreLogic. “It’s running hot, and it might not be until 2024 before the Fed is able to be successful.”
With inflation currently at 8.5 percent, a number that’s scheduled to be updated this week by the U.S. Bureau of Labor Statistics, Nothaft is apprehensive the medicine the Fed is doling out to tame inflation – increasing the Federal Funds rate multiple times this year – might produce an unintended side effect.
“It could trigger an economic slowdown and a recession,” he warned.
Nothaft also thinks inflation could possibly jump by as much as another point. “It could crest at 9 or 9.5 percent before starting to come down, hopefully in the third quarter,” he said.
As for the results the Fed is taking to tame inflation, Freddie Mac’s Deputy Chief Economist Len Kiefer is worried.
“Our baseline economic forecast for 2023 does not forecast a recession; however, given recent economic indicators recession risks have increased,” he said.
Construction milestone reached at
Southeastern Live Well Center
Crews hoisted a signed steel beam in a “topping off” ceremony at the Southeastern Live Well Center site on Friday, marking an exciting milestone for the $74 million project. Once complete, the center will become a social service hub with space for community meetings, educational opportunities and workforce training. The grand opening is scheduled for summer 2023.
County’s Child Support Services department
receives award for innovative programs
The San Diego County Department of Child Support Services received an award for two new programs to help families work through problems facing many parents.
The Innovation in the Child Support Program Award was given to the ounty by the California Child Support Directors Association. The award highlights the department’s Expanded Service Delivery and Youth with Dreams programs.
The Youth with Dreams program was started last year to encourage teen and young adult parents to continue reaching for goals. In the program, young families access essential resources like education, employment and resources to help lead a self-sufficient life. The goal is to reduce barriers young customers face, dismantle stereotypes associated with teen and young adult parents, and to help end the cycle of intergenerational poverty. In less than a year, more than 400 people were receiving help through the Youth with Dreams program.
Departments to present their budget
proposals to county supervisors
County departments will make budget presentations before the Board of Supervisors at public meetings on May 19 and 20. The board first requested the presentations as part of the budget process last year. The presentations will take place again this year before the public hearings on the recommended Fiscal Year 2022-23 budget get underway in June.
The special meetings begin at 9 a.m. on both days at the County Administration Center downtown. Members of the public can attend the meetings or watch the meetings live online and make a request to speak via teleconference or submit a written eComment.
The special meetings will take place in room 310 at the County Administration Center located at 1600 Pacific Highway, San Diego, CA 92101.
Palomar Health awarded on
Newsweek’s Best Maternity Hospitals list
Palomar Health has been awarded on Newsweek’s list of Best Maternity Hospitals 2022. This prestigious award is presented by Newsweek and Statista Inc., the world-leading statistics portal and industry ranking provider.
“Being recognized on Newsweek’s list for Best Maternity Hospitals is entirely the result of our amazing doctors, nurses and staff, who we appreciate so much,” says Palomar Health President and CEO Diane Hansen. “We’re so thrilled to be recognized on this esteemed list and proud to offer award-winning care.”
As the largest public health care district in California with an 800 square-mile service area, Palomar Health is anchored by two state-of-the-art medical center campuses offering medical services in virtually all fields of medicine; including primary care, cardiovascular care, emergency services, trauma, cancer, orthopedics, women’s health, behavioral health, rehabilitation, pediatrics, neonatal intensive care as well as robotic and bariatric surgery.
City of San Diego honored for digitizing
building permit process during pandemic
In recognition of its work to ensure building code compliance and adapt to virtual operations during the COVID-19 pandemic, the City of San Diego received the Building Department of the Year award from the California Building Officials (CALBO) industry group. The city’s Development Services Department accepted the honor during CALBO’s 60th annual business meeting in Rancho Mirage.
The recognition acknowledges DSD’s accelerated implementation over the past two years of technology and cloud-based tools to enforce building codes and standards, and its work with state and national code developers to ensure public health and safety requirements are met.
“Despite COVID-19-related challenges to our operations, we still needed to keep up with the permitting needs of the second-largest city in California,” said Development Services Department Director Elyse W. Lowe. “DSD issues thousands of approvals annually, and through resourcefulness and good governance, we leveraged technology to seamlessly process, review, permit, and inspect projects throughout the city.”
