Economic Development Executives Form Keystone Group In Response To Concerns Of California Businesses

Kosmont Companies

In response to business and industry concerns about the ever-increasing cost of doing business in California, the Keystone Group's study is currently assessing the economic and fiscal impacts of these failures and migrations, specifically looking at their impact on California's economy. The research is being conducted by Kosmont Partners, economic and real estate consultants, and the Rose Institute of State and Local Government at Claremont McKenna College.

The study will also identify reasons Southern California companies have failed or left the state based on survey data. Among the issues being studied are the impact on business of recent California mandates leading to increased workers' compensation costs, required payment of prevailing wages on certain private projects, and increased overtime pay requirements. Local measures impacting the cost of doing business throughout the state will also be studied. The research is already revealing unexpected relocation patterns within specific industry clusters and job classifications.

Based on the survey findings, a retooling strategy offering alternative ways to improve the business climate in California will be recommended to state political leaders to consider as part of a program to promptly turn around the state's business climate.

For the last nine years, the annual Kosmont-Rose Institute Cost of Doing Business Survey has been charting the cost of doing business in California. In 2003, the survey predicted that given the state's $38 billion budget deficit, both local cities and the state would be searching for ways to charge businesses even more.

The Keystone Group, a brain trust of economic development leadership in central and Southern California, includes the Presidents and CEOs of the following regional economic development organizations in partnership with Southern California Edison: The Los Angeles County Economic Development Corp., The Economic Alliance of San Fernando Valley, The South Bay Economic Development Partnership, The San Gabriel Valley Economic Partnership, The Westside Economic Collaborative, Gateway Cities Partnership, The Greater Antelope Valley Economic Alliance, The Orange County Business Council, The Inland Empire Economic Partnership, The Coachella Valley Economic Partnership, The Tulare County Economic Development Corp., and The Economic Development Collaborative-Ventura County.