What will it take to fix California’s ailing economy? The answer may be found at a meeting today of 50 business and labor leaders, all invited by Governor Gray Davis (including yours truly) to attend a roundtable economic summit at Walt Disney Studios in Burbank.

Entitled “Partnering for California’s Future” this meeting already represents a welcome departure from the Sacramento status quo. I can think of a lot of words to describe the State Legislature’s recent attitude towards the business community, and “partner” doesn’t exactly head the list. More like “punching bag.”

Columns and Opinions by CMTA President, Jack M. Stewart June, 2004: It's Going to Cost Cell Phone Users March, 2004: How to Spot Real Workers' Compensation Reform: Lawyers Hate It August, 2003: Congress Can End The Avalanche of Frivolous Lawsuits - Will They? July, 2003: Putting Jobs First Makes Economic and Common Sense

In my line of work, I get a close look at some of California’s most advanced manufacturing enterprises. But I’ve not seen anything like the factory the Legislature has fired up that’s been cranking out one job-killing bill after another: exorbitant energy costs, higher taxes, complicated regulations, new workplace mandates … and no relief in sight.

Every step of the way, we offered ideas to spread the regulatory burden and share in the work of growing our economy. Instead of being joined in good faith negotiations, however, we were all too often rebuffed by a political class that fundamentally misunderstands what it means to run a business today.

Simply put, the community of job creators and entrepreneurs - the engine that drives our economy - has not been invited to partner with state government.

Now, the state’s economy is in the tank - a decline that started before September 11th - and that has helped bring us to today’s dialogue at Disney.

Is this too little, too late? For thousands of California jobs, it is too late. But the Disney meeting can be a useful summit after all if it steers the political dialogue away from a hostile view of the private sector and towards a new era of sensible lawmaking.

We need reform now. Our economy is in trouble and every day that goes by means more lost jobs, diminishing revenue and wasted opportunity.

And make no mistake: The costs associated with a battered business community are not measured only by stock-tickers and cable financial networks. They are instead the human toll resulting from jobs that are lost, mortgages that fail and families that go with less.

That is why we are advancing three initiatives that will bring immediate relief to our faltering economy:

Enact a sales tax exemption on manufacturing equipment: This is a vital investment that will enable businesses to put their money where their business is. With this advantage, costly equipment can be more readily purchased, bringing with it the skilled jobs currently hemorrhaging out of the state and delivering new revenue to state coffers.

Reduce electricity rates and allow for customer choice in energy: This year’s electricity rate increases amounted to a guillotine fitted especially for manufacturers, causing many to cut jobs, some to leave the state and others to shut down entirely.

What we need right now is fair electricity rate reduction (an excellent place to start would be to revisit the 50-200 percent rate increase imposed in June of this year) combined with allowing businesses to procure the electricity they need at a cost they can afford by choosing from a range of competitive options.

Approve a moratorium on new and increased regulatory fees and taxes: This will put an end to dangerous cost shifting by requiring government to reduce its costs - not merely impose new fees - to make up for budget reductions.

Many California manufacturers fear that without this change, state government will simply increase their annual license fees to the state, as a way to “backfill” budget reductions recommended by the Governor or State Legislature.

These are all common sense ideas, and I believe that the Governor’s summit can be a critical first step to a new bipartisan approach.

In many ways, meeting at Walt Disney Studios should inspire us into action. More than 60 years ago, Walt and Roy Disney used profits from their business to make a deposit on 51 acres of land in Burbank that later became the studio locale where the Disney name was defined forever.

This was an example of California business - fueled by enthusiasm, initiative and a new idea - taking a risk, investing in its future and eventually changing the world.

We don’t need such lofty goals today. We only have to keep faith with the Disney experience and the spirit of resolve that has always allowed the Golden State’s business community to light the way to a brighter future.

There is no time to lose. I have seen Sacramento when its politicians are awash in red ink. And with apologies to our gracious Disney hosts, let me tell you, it’s the unhappiest place on Earth.

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