Sacramento, CA - Today at Governor Davis’ Economic Summit at Walt Disney Studios in Burbank, California, the California Manufacturers & Technology Association (CMTA) proposed three recommendations to help bring immediate relief to the state’s faltering economy.

“California is in a dramatic economic decline,” said CMTA President Jack M. Stewart. “Manufacturing employment is down 63,000 this year and by more than 10,000 jobs in September alone. The state’s unemployment rate has risen steadily for the eight consecutive months, peaking at its present 5.4 percent.”

“It’s time for the state to implement new policies that will incent investment sooner rather than later,” said Stewart.

CMTA today will introduce proposals to:

• Implement a Sales Tax Exemption on Manufacturing, Processing and Telecommunications Equipment
• Reduce Electricity Rates and Provide Customer Choice in Energy
• Declare a Moratorium on New and Increased Regulatory Fees and Taxes

These initiatives will comprise the association’s focus in the coming months, and were a collaborative effort among CMTA members.

“The costs associated with a battered business community are not only measured by stock-tickers and cable financial networks. They are the human toll of jobs that are lost, mortgages that fail and families that go with less,” added Stewart. “These measures will restore confidence in every manufacturers’ ability to remain productive and allow them to reinvest in the state’s workforce.”

- - 80 percent of the state's exports
- - One sixth of the state's payroll
- - 40 percent higher wages than the statewide average
- - And for every manufacturing job, an additional 1-3 jobs are produced

“These proposals are common sense ideas that will send a strong message to the largest and most important sector of our economy that the state will provide the critical relief they need to help themselves and help California through this economic crisis,” concluded Stewart.

It's a Useful Summit After All - Opinion Editorial by Jack M. Stewart that ran in the Los Angeles Daily News on November 2, 2001

Letter to Governor Davis