Last week, Gurbax Sahota, President and CEO of the California Association for Local Economic Development (CALED), testified before the California Assembly Committee on Economic Development, Growth, and Household Impact. The hearing focused on “Making Sense of California’s Economy: Real Cost Pressures and Household Impacts Facing Californians.”
During her testimony, Sahota highlighted several issues affecting CALED members. She discussed the need to support local governments, the importance of economic development, and the challenges facing rural communities in California.
“Economic development is the creation of wealth through which community benefits are realized,” Sahota said, stressing that local economic development is essential. She emphasized the importance of state and local governments working together to help businesses grow and to create job opportunities for residents. She also pointed out that economic empowerment is one key path to making life more affordable and recommended specific actions for legislators to stimulate the economy, especially in rural areas.
One major topic raised by the committee was the lack of funding for housing development. Sahota shared that “the nearly 500 cities and 58 counties are not conspiring to block housing projects.” One problem rarely discussed is a lack of financial resources to provide subsidies to make these projects feasible. To address this and increase housing availability across the state, it is crucial to improve Tax Increment Financing tools, like Community Revitalization Investment Authorities.
Sahota also showed support for struggling rural communities and suggested reconvening the Rural Caucus to address issues. Many rural areas feel overlooked or left behind.
She pointed out that economic empowerment leads to prosperity and makes living costs more manageable. When businesses and residents do well, government revenue also grows, allowing communities to fund essential services and programs for a better quality of life.
In closing, Sahota encouraged the Committee to recognize that local economic development is critical to improving California residents’ quality of life. She and her CALED colleagues believe that better cooperation and alignment between local and state governments is essential for the success of all communities in California. To view the full video testimony, visit the Assembly’s website.
About CALED
The California Association for Local Economic Development (CALED) is California’s premier economic development association and one of the largest economic development associations in the nation. CALED’s 950+ members work hard to help businesses thrive so they can create economic opportunities for all and grow state and local economies. Since its creation in 1980, CALED has led the way in teaching economic developers, local elected officials, and state representatives the value of economic development and how it is used to grow businesses, generate revenue to expand the local economy, and pay for the services that residents require. For more information, visit www.caled.org.