Daily Business Report-April 10, 2019

Certain corporations might have to pay significantly higher state corporate taxes.

A $5 billion corporate tax proposal

CALmatters

Corporations earning $10 million or more in California would pay significantly higher state corporate income taxes—and far more if their chief executives make large salaries, under legislation proposed Monday.

Legislation by Democratic Sen. Nancy Skinner of Berkeley and Democratic Assemblywoman Buffy Wicks of Oakland would raise the corporate tax rate, now 8.84 percent, to at least 10.84 percent.

The rate would rise to 14.84 percent if the CEO’s pay is 300 times or more the median employee’s income.

That would be the highest corporate tax rate of any state, according to the Tax Foundation.

The tax would generate $5 billion a year or more.

The Department of Finance estimates corporation taxes will generate $13.1 billion this year.

Skinner: “Increasing taxes on big corporations and incentivizing those corporations to pay their employees higher wages is a progressive way to capture new funding for our schools and other programs, while reducing the income inequality of regular Californians.”

History: In 1996, Gov. Pete Wilson, Republican Assembly Speaker Curt Pringle and Democratic Senate President Pro Tem Bill Lockyer agreed to cut the corporate rate to 8.84 percent from 9.3 percent.

Lockyer said then: “Those of us who are advocates of education and have worried about the magnitude of the tax think this is an acceptable and balanced compromise and protects education.”

What’s ahead: The bill has not faced its first hearing, and would need a two-thirds vote for approval. Skinner has shown an ability to win passage of major legislation.

For a report on 2019 tax proposals by CALmatters’ Judy Lin, click here.

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Adela de la Torre to be inaugurated

9th president of San Diego State University

The investiture of Adela de la Torre as the ninth president of San Diego State University

will be held Thursday from 2 to 4 p.m. at Viejas Arena. Defined as the “act or ceremony of conferring the authority and symbols of a high office,” an investiture is an academic ceremony in which a new leader is “vested” with the official powers of office.

De la Torre is the first woman to serve as president of SDSU. She brings with her 30 years of service in leadership roles within institutions of higher education, including the California State University system, the University of Arizona and the University of California, Davis.

For the inauguration, de la Torre has selected Mildred García as keynote speaker. In more than four decades in higher education, García has frequently broken glass ceilings and served as a cultural pioneer on her way to becoming president of the American Association of State Colleges and Universities, an advocacy group for more than 400 public colleges, universities and systems. Like de la Torre, García has experience both in teaching and administration, and she is known for a leadership style that emphasizes inclusion and diversity.

“Dr. García has been my role model for many years,” de la Torre said. “As the first Latina president in the CSU system and one of the few Latina presidents in California, she has been a trailblazer for many of us who are now in these roles. Her commitment to social equity and access to higher education for all students is a fundamental value that I share.”

Prior to her appointment as president, de la Torre served as the vice chancellor for student affairs and campus diversity at UC Davis. Her research focuses on aspects of Latino community health – an area in which SDSU is a national leader.

De la Torre served as director for the UC-Davis Center for Transnational Health for 14 years, as chair of the UC Davis Chicana/Chicano Studies Department, as director of the Hispanic Center of Excellence in the College of Medicine at the University of Arizona, and as director of the Mexican American Studies and Research Center at the University of Arizona.

The inauguration is open to the public. Viejas Arena is at 5500 Canyon Crest Drive, San Diego 92182

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New Cal State San Marcos president

to visit campus for the first time

On the same day of Adela de la Torre’s investiture at SDSU, Ellen Neufeldt, the newly named president of California State University San Marcos, will visit the North County campus for the first time. She will be at CSUSM on Thursday and Friday and her visit will include a forum on Thursday at noon at The Sports Center that’s open to the campus community.

Neufeldt, the former vice president of student engagement and enrollment services for Old Dominion University in Norfolk, Va., succeeds Karen Haynes, who will be retiring in June. Haynes has lead Can State San Marcos since 2004, making her the longest-tenured president in the CSU system.

“It’s such an honor to have been selected the next president,” Neufeldt said. “There is such a positive trajectory to move forward from together and so much pride in what’s already happened in San Marcos. I’m thrilled to be someone who can lead the university on the next chapter of the journey.”

In a scene from last year’s conference, Brian White, student at USD, shows a scarf that represents the life of his mother, who had recently died. (Images from a USD video)

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University of San Diego Research Conference

showcases learning beyond the classroom

University of San Diego students haven’t earned their bachelor’s degrees yet but they’re already researching possible cancer treatments, pollution in the Tijuana Estuary, and the power of political narratives. Students will present their work in poster and oral presentations and interactive and visual arts exhibits at the 29th Annual Creative Collaborations Undergraduate Research Conference on Thursday, April 11. The event takes place from noon to 2 p.m. in the University Center.

“Creative Collaborations showcases the commitment of our faculty in mentoring the next generation of research leaders as well as USD’s dedication to academic excellence by providing students with experiential learning opportunities,” said Elisa Maldonado Greene, director of USD’s Office of Undergraduate Research. “The scholarship conducted on campus addresses a variety of contemporary issues and has the potential to make real contributions to knowledge and practice.”

Chemistry students have helped research proteins that when killed, disrupt the growth of lung cancer cells and could someday lead to new treatments. Other students are measuring the heavy metals in the Tijuana River Estuary and looking at the power of political narratives like “Make America Great Again.”

More than 200 poster projects also include the design of a robot to collect plastics and other ocean debris, the possibility of applying rights given to juvenile court defendants to minors in deportation hearings, and a mobile classroom that could teach Logan Heights students about issues facing their neighborhoods.

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General Atomics ground control station

controls first end-to-end flight of an RPA

The Certifiable Ground Control Station (CGCS) from General Atomics Aeronautical Systems Inc. was used to control the complete flight of an MQ-9B SkyGuardian — including takeoff and landing — on March 12. This is the first time the CGCS has been used to control an entire end-to-end flight of a Remotely Piloted Aircraft (RPA).

“Controlling takeoff and landing was the last step in a progression of flight milestones for the CGCS,” said David R. Alexander, president of General Atomics Aeronautical. “Our vision is that MQ-9B will be the first RPA certified to fly in national and international airspace. To achieve that goal, our GCS needs to be type-certified, as well. Completing an end-to end flight was an important step in achieving that ultimate goal.”

The flight originated from the Yuma Proving Grounds in Yuma, Ariz. The CGCS features a Pro Line Fusion integrated avionics system from Collins Aerospace, the Abaco FORCE2 flight computer, as well as all the weapons and payload controls for MQ-9B.

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SoCalGas vs. SoCal Edison

Voice of San Diego

Southern California Gas Co., the natural gas provider owned by San Diego-based Sempra Energy, is facing a seemingly old challenge to its core business: electricity.

For years, gas and power have somewhat peacefully coexisted because much of Southern California’s power came from burning gas. Now, though, environmentalists and lawmakers are pushing for all of the state’s power to be generated without burning gas.

The city of San Diego, for instance, is planning to create its own power-buying agency so it can distance itself from Sempra’s other local utility, San Diego Gas & Electric, which sells both power and gas.

But in a future where power is green, there will be pressure to electrify more and more household appliances, like water heaters and stoves. Power companies like Southern California Edison can get more business that way, but SoCalGas would get less. That’s why the gas giant is trying to pitch customers and regulators on the idea of “renewable” gas.

The Los Angeles Times just did a thorough look at this battle.

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VA to boost contracting with service-disabled

and veteran-owned small businesses

ExecutiveGov

The Department of Veterans Affairs plans to boost contractual partnerships with veteran-owned and service-disabled, veteran-owned small businesses. The VA said it aims to provide 17 percent of its contracts to businesses owned by veterans while 15 percent will be allocated to service-disabled veteran-owned businesses in a move to reinforce its contracting goals by five percent.

“We have increased the dollars awarded each year, but now it’s time to update the goals to reflect this new commitment,” said Robert Wilkie, secretary of VA. “We need to lock in the gains we have made and continue to build for the future.”

VA noted that the agency is required by law to prioritize members of both communities prior to considering other small business preferences. In addition, the agency provided contracts worth $5.4B to veteran-owned businesses and $5.1B to service-disabled, veteran-owned businesses in 2017.

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Personnel Announcements

Bill Drew has joined PRA San Diego as general manager

PRA San Diego has named Bill Drew as general manager. As key leadership of the San Diego team, Drew is responsible for local strategic direction and developing new business opportunities, increasing revenue streams and managing the San Diego team, while building strong relationships with local contacts to continue to promote PRA’s leadership in the San Diego market. Drew is an innovative, creative business leader and sales professional with over 20 years of experience as a general manager and sales manager in the hospitality space.

Most recently Drew served as regional vice president and general manager for Bright Events Rental, based in San Diego, where he was responsible for overseeing operations in four locations with over 350 team members in the full-service event rental arena. Drew also served as a sales manager for ARAMARK Uniform Services where he successfully managed sales teams responsible for revenue growth, new client acquisition and profitability for a Fortune 250 managed services company.

PRA is a leader in the business events industry, with the broadest owned network of offices in the Americas.