Manufacturing loan program passes Assembly

By CMTA Staff

Capitol Update, June 4, 2010 Share this on FacebookTweet thisEmail this to a friend

This week the Assembly unanimously passed AB 2437 (V. Manual Perez, D-Cathedral City) which establishes the California Manufacturing Competitiveness Act of 2010 for the purpose of supporting the retooling and expansion of California's manufacturing facilities. The bill’s ultimate goal is to support a vibrant logistics network and retain and create jobs.

California manufacturing has unfortunately lost a lot of ground.   California’s manufacturing base has eroded by 34% since 2001 – a loss of over 630,000 manufacturing jobs that paid, on average, $25,000 a year more than service jobs. These losses have cost California nearly $75 billion a year in wages and $5 billion annually in tax revenue – money that once helped pay for schools, infrastructure and other services.  California aerospace and auto manufacturing has practically disappeared and as a result the State now has one of the highest unemployment rates in the U.S. at 12.5%. AB 2437 attempts to help turn this around and establishes a competitiveness loan guarantee program for the purpose of attracting, retaining, and expanding manufacturing facilities.

The bill will now go through the Senate hearing process.

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