Daily Business Report: Dec. 6, 2024
Trump’s deportations could cost California
‘hundreds of billions of dollar.’ Here’s how
By Levi Sumagaysay | CalMatters
In Summary: Some sectors, like agriculture, will be hit directly. Many more could feel the ripple effects.
Mass deportations promised by President-elect Donald Trump could have a seismic economic effect in California — potentially inflicting billions of dollars in direct damages to a wide range of industries, including small business, agriculture, construction and child care, advocates and academics said.
The impact could also spread outward to other sectors, including growth drivers like tech.
The Golden State relies heavily on the labor of immigrants, whether they’re naturalized U.S. citizens, have temporary visas or are undocumented. More than 10 million, or 27%, of California’s population is foreign-born, according to the most recent U.S. Census data. Roughly a fifth of those are thought to be undocumented; as of 2022, estimates ranged from 1.8 million undocumented immigrants, according to the Pew Research Center, to 2.4 million, according to the left-leaning Institute on Taxation and Economic Policy.
If undocumented immigrants “magically disappear, you’re going to erase 10% of California production,” said Giovanni Peri, professor of international economics at UC Davis. “We’re talking about hundreds of billions of dollars.”
The loss of workers only speaks to part of the financial impact of deportations. Undocumented immigrants also power the state’s economy as consumers and taxpayers.
There may also be indirect impacts from the deportations. The loss of workers in construction, agriculture (including the state’s world-famous wine industry), hospitality and the care economy would have ripple effects on the rest of the state, according to Manuel Pastor, professor of sociology and American studies and ethnicity at the University of Southern California.
“Behind every software engineer is an army of nannies, food-service workers and gardeners,” Pastor said.
Pastor thinks businesses are likely to protest significant cuts to their workforces given how tight the labor market is. “They’ve come for the tax cut, they didn’t stay for stripping away their labor force,” he said, referring to business owners who supported Trump.
At his campaign rallies, Trump has said immigrants are “attacking” Black and Latino Americans’ jobs. Federal data undermines that claim, instead showing foreign-born, noncitizen Black and Hispanic workers predominantly work different types of jobs than their native-born counterparts.
t could be costly to replace those who are deported. In the construction industry, for example, the median weekly earnings of full-time, U.S.-born workers as of 2020 were $1,031 vs. $786 for foreign-born workers, according to an analysis by the Bureau of Labor Statistics. In California, the median hourly wage as of 2021 was $30 an hour for U.S.-born workers vs. $24 an hour for immigrant workers vs. $16 an hour for undocumented workers, according to the California Immigrant Data Portal, a project by the Equity Research Institute at USC, which is directed by Pastor.
Top Photo: Construction, like at this West Oakland project, is among the industries experts say will be most impacted by mass deportations. (Photo by Anne Wernikoff for CalMatters)
General Atomics awarded next generation Hi-fi modem
General Atomics Aeronautical Systems Inc. (GA-ASI) was awarded a contract on Oct. 4, 2024, to develop a next generation high-frequency (HF) modem for the U.S. Naval Information Warfare (NAVWAR) Program Executive Office Command, Control, Communications, Computers and Intelligence (PEO C4I). The task order was issued by the Naval Information Warfare Center (NIWC) Pacific.
GA-ASI will develop a cost-efficient, software-defined Generation 2 HF modem that meets U.S. Navy ship, sub, and shore environmental requirements and supports a rapid fielding schedule. GA-ASI will provide waveform and modem development, test and evaluation, as well as onsite technical assistance for the NAVWAR PEO C4I program.
Mayor Gloria freezing hiring, new projects amid $258 million budget deficit
By Chris Jennewein | Times of San Diego
Mayor Todd Gloria announced Wednesday that the city will freeze most hiring and review capital spending to address a $258 million budget deficit.
Speaking at a press conference at City Hall, Gloria said defeat of the Measure E sales tax increase in November left no option but an immediate effort to save money.
He said San Diego voters made it clear that “they want to continue to operate this city with our existing resources,” adding that he sees this as “an opportunity to reimagine how our city operates and the services it provides.”
“Since the beginning of my administration, I’ve focused on four key priorities: keeping San Diego safe, addressing our homelessness crisis, building more homes and fixing our roads. These priorities will not be changing,” Gloria said.
In preparing for the next budget, which would begin July 1, city departments will be asked to budget from scratch.
Gloria noted that as a council member, acting mayor and elected mayor he has been involved in 12 city budgets. “I’ve seen this before. We’ve been here before. We’ve gone through it before. And we’ll do it again,” he said.
Luna Grill names Billy Grenham as chief marketing officer
Luna Grill Mediterranean Kitchen has named Billy Grenham as the company’s first chief marketing officer (CMO). Celebrating its 20th anniversary in 2024, the company opened its 52nd restaurant this year and is poised to open a restaurant every other month over 2025 followed by accelerated expansion outside of California over the next five years. Grenham’s appointment is a strategic management addition to further propel the brand’s growth.
Grenham first worked with Pinnella at Yum! Brands during his tenure from 2014 until 2019, where he served in various capacities including Head of Global Marketing and Communications for Taco Bell. Grenham led the global brand vision, growth & omni-channel sales strategies for Taco Bell International restaurants spanning 26 countries, growing from 75 restaurants to now over 1,000.
Carlsbad OKs medical office project
The Carlsbad City Council unanimously approved a resolution on Dec. 3 to move forward with a two-story medical office building located at the corner of Grand Avenue and Hope Avenue in the city’s Village Center District.
The Grand Hope Medical Office development, which aligns with the city’s Climate Action Plan and Village and Barrio Master Plan, is expected to provide a mix of transportation and environmental benefits while addressing public concerns over parking.
The approved project at 2879 Hope Avenue will replace an existing one-story structure with a 10,671-square-foot medical office building featuring three tenant spaces, a common egress balcony, and a one-story parking garage.
Escondido police chief retires after 27 years in law enforcement
Escondido Police Chief Ed Varso will retire on Dec. 6, concluding a 27-year law enforcement career that included nearly 23 years with the Escondido Police Department.
The city will launch a nationwide search for his replacement after the first of the year, with plans to appoint a new chief by June.
Varso, who announced his retirement last month, began his career in 1997 with the Los Angeles County Sheriff’s Department before joining the Escondido Police Department as a police officer in 2001.
Over the next two decades, he rose through the ranks, holding positions as sergeant, lieutenant, captain, and assistant chief before becoming chief in early 2020.
San Diego Wave FC president leaves club for FIFA
San Diego Wave FC President Jill Ellis will step down from her role with the club effective immediately and will become the Chief of Football at FIFA. “I want to extend a huge thank you to the staff and players of the Wave for their profound commitment to the club,” Ellis said in a statement that wished the club and its new ownership group “the very best for the future.”
After the Wave earned the best regular-season record in the league in 2023, last season was a struggle. The club fired coach Casey Stoney in June, and Stoney was replaced by Paul Buckle and then Landon Donovan. The club announced last month that Donovan would not be returning as coach, and the search for a permanent coach continues.
All Souls’ Episcopal Church to hold Christmas European Marketplace
All Souls’ Episcopal Church in Point Loma is presenting its fifth annual Christmas European Marketplace on Saturday, Dec. 7. The holiday market, which includes refreshments, music, and children’s events, will run from 10 a.m. to 2 p.m. at 1475 Catalina Boulevard at the corner of Chatsworth. Park your car and walk onto the campus of All Souls Episcopal Church.
UC San Diego and Scripps Research join national team
to make vision-restoring whole eye transplants a reality
By Ioana Patringenaru | UC San Diego
San Diego team is part of a major undertaking that will bring together more than 40 scientists, doctors, and industry experts hand-picked from around the country to make vision-restoring whole eye transplants a reality.
At UC San Diego, a research team led by Professor Shadi Dayeh, in the Department of Electrical and Computer Engineering, will develop a wireless, multi-modal electrode system to wire the optic nerve to the brain with high-end precision after an eye transplant to restore vision.
At Scripps Research, a research team led by Associate Professor Anne Hanneken, in the Department of Molecular Medicine, will advance neuroprotective surgical protocols, perfusion techniques and monitoring systems to support the long-term viability of the whole eyes and the surgical transplant procedure.
The groundwork for this UC San Diego-Scripps Research collaboration began several years ago when Dr. Hanneken and Professor Dayeh were introduced by Ian Galton, a professor of electrical engineering at UC San Diego and former patient of Dr. Hanneken. Early brainstorming sessions between the three scientists focused on the possibility of directing and inducing optic nerve regeneration in the revived human eye using electrical stimulation.
Dr. Hanneken, who is a pioneer in donor human eye revival, and Professor Dayeh, who will serve as the neuromodulation architect on the project, will jointly work with Dr. Jeffrey Goldberg, Blumenkranz Smead professor and chair of ophthalmology at the Byers Eye Institute at Stanford University, the principal investigator for the project. Dr. José-Alain Sahel, professor and chair of the Department of Ophthalmology at the University of Pittsburgh, will co-direct the initiative with Goldberg.
