At the February 1st California Debt Limit Allocation Committee (CDLAC) meeting both California Association for Local Economic Development (CALED) President & CEO Gurbax Sahota and Program Director Michelle Stephens spoke about the importance of manufacturing to the California economy and the impact it has on local communities. Both speakers offered public comment regarding the value of economic development in California and in support of the staff recommendation to provide $30 million in Industrial Development Bond (IDB) allocation for small- and medium-sized manufacturers. This allocation can be used to finance land purchases, facility expansion, new production equipment acquisition, and solar and energy conservation retrofits.
Representing over 800 professionals who work hard to sustain and grow California’s economy and approximately 300 jurisdictions of all sizes, state, federal, nonprofit, and private practitioners, CALED is the voice of local economic developers in the state. In that role, CALED knows that manufacturing is a critical driver of our economy as evidenced by the emphasis placed on reshoring, the CHIPS and Science Act at the federal level, and in Governor Newsom’s recently proposed budget.
Ms. Sahota noted that IDB’s help small manufacturers purchase equipment and land so they can grow in California and create good-paying jobs for our residents. These jobs in turn make it possible for Californians to afford housing. In addition to the broad impact of manufacturing, Ms. Stephens pointed to a specific manufacturer working with the California Enterprise Development Authority (CEDA), that is applying for IDB allocation from the committee.
This manufacturer, a family-owned, rural business in Placer County, is the largest employer in town with over 200 employees. If they receive the allocation, the company will be able to finance its facility expansion and continue to provide quality jobs that help people move into the middle-class.
CALED and CEDA were happy to see the committee vote in favor of the IDB allocation as part of the State Ceiling Pool for 2023. The Committee’s balanced approach in understanding that California needs to not only support financing for building homes, but also pathways to housing affordability by giving residents the opportunity and individual dignity of a job that allows them to support themselves and their families.
We thank the CDLAC Executive Director Nancee Robles, CDLAC Staff Emily Burgos, and Committee Members, Treasurer Fiona Ma, Controller Malia Cohen, and Representative of Governor Gavin Newsom Gayle Miller for their balanced approach to supporting economic development and affordable housing in California.
To learn more about IDBs, visit www.ceda.caled.org.