Daily Business Report: Nov. 1, 2023
Unemployment insurance: California’s
‘urgent’ $20 billion problem
By Levi Sumagaysay | CalMatters
California’s unemployment insurance fund is $20 billion in debt, putting the state in a terrible position in case of a recession.
The deep debt — incurred during the COVID-19 pandemic as millions of people lost their jobs and the state borrowed money from the federal government for unemployment benefits — is on Gov. Gavin Newsom’s mind. He cited it as a factor in his recent veto of a bill that would have allowed striking workers to be eligible for unemployment benefits, mentioning that the state is paying hundreds of millions of dollars of interest on the debt.
It’s also top of mind for businesses, which face an increase in required contributions toward the state’s unemployment insurance fund as a result. And it’s on the minds of those who are concerned about whether the state’s unemployment system can handle another crisis such as a pandemic or a recession.
The unemployment insurance fund had regular solvency issues even before the pandemic. Now the situation is more dire, with the Employment Development Department issuing a spring forecast that the debt — which the Legislative Analyst’s Office has said does not include the infamous unemployment fraud that mostly involved temporary federal benefits that the state doesn’t have to pay back — would grow to $19.7 billion at the end of the year.
Photo: A poster explains ways to file for unemployment insurance benefits, as job seekers look for work at the JobTrain employment office in Menlo Park. (Photo by Paul Sakuma, AP Photo, via CalMatters)
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Cal State faculty set to strike if demands not met
By Lynn La | CalMatters
The faculty union of California State University overwhelmingly approved a strike authorization, giving its leadership the green light to pull as many as 29,000 instructors from educating the more than 400,000 students in the nation’s largest public four-year university system.
The California Faculty Association said Monday that 95 percent of its members who voted approved of the strike plans. The union refused to reveal how many of its members actually cast ballots. Core to the demands are that Cal State increase wages by 12 percent for all faculty to keep up with inflation, lift the minimum wages for the lowest-paid instructors, expand parental leave, provide lactation rooms for new parents and more.
Cal State has maintained it cannot afford the union’s demands, instead responding with a smaller one-year raise or a 12 percent raise over three years.
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UC San Diego holds groundbreaking for Triton Center
Triton Center, UC San Diego’s highly anticipated new vibrant urban core – and heart of campus – got a jolt of energy last weekend with the ceremonial groundbreaking of the complex. UC San Diego community members came together with alumni, donors, friends and dignitaries to celebrate Triton Center, which is slated for completion in 2026.
Designed to be a welcoming, socially dynamic destination, Triton Center will centralize student and campus services; showcase UC San Diego’s distinctive accomplishments, heritage, art and culture; and offer spaces for relaxation, enrichment and celebration.
NASSCO christens and launches the USNS Robert F. Kennedy
General Dynamics NASSCO christened and launched the future USNS Robert F. Kennedy (T-AO 208), the fourth ship for the U.S. Navy’s John Lewis-class fleet oiler program, On Oct. 28. House Speaker Emerita Nancy Pelosi served as the principal speaker at the ceremony, with additional remarks from Secretary of the Navy Carlos Del Toro and NASSCO representatives. As is tradition, the ship’s sponsor and daughter of the namesake, the Honorable Kathleen Kennedy-Townsend, christened the ship by breaking a champagne bottle alongside the hull.
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Matthew and Iris Strauss donate
world-class art collection to UC San Diego
By Jade Griffin | UC San Diego
Matthew and Iris Strauss and the Strauss Family Foundation have donated a world-class collection of contemporary art to the University of California San Diego. The collection comprises more than 100 pieces by artists from around the globe, ranging from paintings to mixed-media art to sculptures. The collection includes pieces by renowned artists such as Zhang Huan, Fred Wilson, Sabine Moritz, Yin Xiuzhen, Nalini Malani, Ken Nolan, Donald Sultan, Jörg Immendorff, Ross Blechner and many more.
The Strauss Family Foundation is also donating the 6,000-square-foot property which currently houses the collection, with the intent that it will be sold to create the Matthew and Iris Strauss Family Foundation Endowment at UC San Diego. Funds from the endowment will be used to provide for the maintenance of the collection in perpetuity.
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Jack in the Box opens first store in Louisville, Ky
Jack in the Box Inc., one of the nation’s leading QSR chains, announced the opening of its newest location in the Louisville market, the brand’s first ever entry into the state of Kentucky. This historic opening represents the brand’s second new market entry in the past three months, joining Salt Lake City. The new location features the brand’s innovative CRAVED image, which includes a new restaurant image package with bold colors and signage. With its first location open, Jack in the Box has additional locations planned throughout Louisville for future development.
Steve Harmon appointed chief revenue officer for Inseego Corp.
Inseego Corp., a leader in 5G edge cloud solutions, announced that Steve Harmon has joined the company in the newly-created role of chief revenue officer of Inseego. Harmon will oversee the company’s global revenue growth, marketing and business development strategy, reporting to Inseego’s President and Chief Executive Officer Ashish Sharma. Harmon has over 18 years of experience leading global teams responsible for sales, marketing and revenue operations
Toku joins Innovators’ Network
Toku Inc., a provider of an AI-based screening tool for detection of cardiovascular risk through retinal imaging, has joined the American Heart Association Center for Health Technology & Innovation’s Innovators’ Network. The center is focused on building and fostering health technology relationships to develop innovative and scalable solutions.
The Innovators’ Network is a health care technology consortium that connects entrepreneurs, providers, researchers, and payers.
City helps secure 15 percent flood
insurance discount for property owners
To help make flood insurance more affordable for San Diegans, the City of San Diego has joined a federal program that offers a significant discount to any community that exceeds the minimum floodplain management and protection standards. As of Oct. 1, all property owners in San Diego enrolled in the National Flood Insurance Program (NFIP) will receive the discount when they renew their annual insurance premiums. About 3,000 San Diego property owners will benefit.
La Mesa Chamber celebrates opening of Octapharma Plasma
The La Mesa Chamber of Commerce will celebrate the opening of Octapharma Plasma to the local business community located at 6091 University Ave. in San Diego. To celebrate their arrival, the business is hosting a grand opening celebration on Wednesday, Nov. 15 between the hours of 11 a.m. – 1 p.m., with an official ribbon cutting taking place at 11:30 a.m.
Octapharma offers blood plasma donation services that saves lives.
Vista sets tobacco retail license cap
The Vista City Council set a limit on the number of tobacco retailers permitted to operate locally as part of a continued effort to regulate the expansion of tobacco in the community.
The council agreed on Oct. 24 to set a cap at 70, accounting for 67 existing businesses with active tobacco retail licenses and three businesses currently applying for a license. This cap does not prevent tobacco retailers from transferring their licenses upon selling their businesses.
Supervisors OK grant for future immigrant welcome center
The county Board of Supervisors have accepted a $430,529 grant that will be used to build a welcome center for immigrants in North County. The Governor’s Office of Business and Economic Development awarded the Local Immigrant Integration and Inclusion Grant. There is an existing county immigrant center in National City, which has been open since March. Officials haven’t chosen a location for the new welcome center.
Escondido puts aquatic center project on hold indefinitely
The City of Escondido has paused plans for a new aquatic center due to its ongoing budget crisis, opting instead to shift money saved for the pool to other projects, including a splash pad and repairing aging infrastructure. Rather than choose between potential options for reconstructing the existing James A. Stone Municipal Pool, the City Council unanimously voted on Oct. 18 to not move forward with the aquatic center project.
SANDAG adopts 8-month plan for new CEO search
The San Diego Association of Governments is starting what is expected to be an eight-month process to hire a new leader for the organization following CEO Hasan Ikhrata’s retirement announcement in July. On Oct. 13, the SANDAG board of directors approved a recruitment work plan for the new CEO position, to be led by CPS HR Consulting at a cost of up to $50,000. The plan also included the creation of an ad hoc committee to assist in the recruitment process
MiraCosta College raises $10.6 million
for student financial support
MiraCosta College has raised $10.6 million as part of its “This Changes Everything” campaign, a five-year fundraising initiative aimed at helping thousands of students accomplish their dreams through financial support. Nearly half of all MiraCosta College students who enroll annually come from socioeconomically disadvantaged backgrounds. The $10.6 million will help ensure that each student has an opportunity to excel and pursue a career in the local workforce.
