California Foundation for Commerce & Education
California Chamber of Commerce
March 2012
◦ Online survey with 42 questions regarding the
current California economic and business climate
◦ Multiple choice options randomized to avoid bias
◦ 699 responses generally reflecting the California
business market by size of company, geographic
location and industry
◦ Margin of error is ± 3.8% at 95% confidence level.
◦ Third in a series: 2008 and 2011 Quantitative
Study questions repeated for trends
◦ New questions added to obtain input on current
political and policy issues
2011
2012
Generally speaking, do you think things in California are going in the right direction,
or do you think things have gotten pretty seriously off on the wrong track?
2011
2012
How would you currently rate California's economy?
2012
It will get better
2011
10%
2008
22%
19%
50%
50%
46%
It will stay about the same
28%
31%
It will get worse
0%
20%
44%
40%
60%
What is your outlook for California's economy over the next year?
2012
Easier
2011
2008
0%
1%
1%
4%
7%
6%
About the same
Harder
57%
63%
73%
23%
Only do business in California
35%
29%
0%
20%
40%
60%
80%
Would you say it is easier or harder to do business in California than in other states?
Single Biggest
Challenge
Second
Biggest
Challenge
Combined
Top %
Too
much
government
regulation
High
state
and or
local
taxes
State
budget
deficit
50%
10%
11%
5%
5%
5%
3%
3%
4%
3%
2%
1%
1%
14%
19%
11%
12%
10%
8%
6%
6%
4%
4%
3%
2%
1%
64%
29%
22%
17%
15%
13%
9%
9%
8%
7%
5%
3%
2%
Hiring and
High
maincost of taining a High
health qualified labor
care
workforce costs
Poor
High
quality
cost of educahous- tional
ing
system
High cost
Access to of rent/
capital/ facilities/
getting a office
loan
space
Reduced
Poor
higher
quality
educainfra- High
tional
Struc- cost of opporture
energy tunities
What would you say is the single biggest CHALLENGE to doing business in California?
And, what would you say is the SECOND biggest challenge to doing business in
California?
Item
The state is a
leader in many
industries, such
as high-tech,
Climate/ Quality biotech and
weather of life agriculture
Culture of
innovation/
research and
development
Access to
large and
lucrative
markets
California's
ethnic and
cultural
diversity
Availability
of qualified
and skilled
workers
Transportation
and logistical
infrastructure,
including
Supportive
roads, seaports state governand airports
ment
35%
15%
14%
9%
11%
5%
6%
5%
0.4%
Second
Biggest
Advantage
26%
18%
12%
11%
8%
10%
7%
7%
0.4%
Combined
Top
Percentage
61%
33%
26%
20%
19%
15%
13%
12%
0.8%
Single Biggest
Advantage
What would you say is the single biggest ADVANTAGE to doing business in California?
And what would you say is the SECOND biggest advantage to doing business in
California?
2012
2011
It will get better
2008
29%
41%
38%
45%
48%
It will stay about the same
57%
14%
14%
14%
It will get worse
0%
20%
40%
60%
What is the outlook for your own business over the next year?
Overall, has your company added or
reduced jobs in California
over the last year?
Does your company plan to add or reduce
jobs in California over the next year?
* Respondents can check all that apply
Does your company provide health care as a
benefit to your employees?
Why does your company not provide health
care as a benefit to its employees?

Main Reason:
◦ 42% - Improved ability to
recruit and retain
employees
◦ 22% - This benefit is the
standard in my industry
◦ 18% - It helps employees
stay healthy and
productive
◦ 16% - It’s my
responsibility as an
employer
◦ 2% - My employees have
requested this as part of
their compensation

Second Reason:
◦ 29% - It helps employees
stay healthy and
productive
◦ 28% - Improved ability to
recruit and retain
employees
◦ 15% - The benefit is a
standard in my industry
◦ 12% - It’s my
responsibility as an
employer
◦ 11% - No additional
reason
◦ 5% - My employees have
requested this as part of
their compensation
2011
2012
Over the past year, have your company’s health care costs increased a lot,
increased a little, stayed about the same, or decreased?
Very
Likely
Somewhat
Likely
Increase premiums paid by
employees
34%
30%
Increase co-payments or
deductibles paid by employees
25%
38%
Change prescription drug
benefits for employees
11%
26%
Make no changes to health care
benefit
16%
19%
Restrict eligibility of employees
and/or their dependents
5%
7%
Drop health care as a benefit to
employees
1%
2%
Percent
Likely
Not too
Likely
Not at all
Likely
64%
17%
14%
63%
19%
14%
37%
35%
20%
26%
28%
12%
37%
45%
3%
20%
73%
Down 3%
Down 4%
Up 2%
35%
Down
11%
Down 7%
Down 2%
Percent
Not Likely
31%
Down 2%
33%
No change
55%
Down 10%
54%
No change
82%
Up 1%
93%
Down 2%
What is the likelihood that your company will make the following changes next year
In order to address increasing costs of providing health care to employees?
Now talking about health care policy, what is your impression of the national
health care reform law called the “Affordable Care Act”
that was passed by Congress in 2010?
The federal Affordable Care Act provides a tax credit for small business employers who provide
health insurance for at least half of their employees. Businesses must have 25 or
fewer employees with average salaries less than $50,000 to claim this tax credit.
Are you aware of this tax credit?
Begin providing benefits?
Employers who currently provide
health insurance
Employers who currently do NOT
provide health insurance
If you qualified for a tax credit under the Affordable Care Act, how would it affect whether you decide to provide
health benefits in the future – would it make you more likely to provide benefits, would it make you less likely to
provide benefits, or would it not affect whether you provide benefits or not in the future?
Issues:
Most Attention
Next Most
Attention
Combined
Percentage
Economy and job creation and unemployment
29%
17%
46%
State budget deficit
28%
16%
44%
Labor regulations governing overtime, wages, rest periods and
benefits
13%
10%
23%
Quality of public schools and higher education
8%
12%
20%
Immigration, including illegal immigration
6%
10%
16%
Taxes
5%
8%
13%
Increasing cost of health care and health insurance
6%
7%
13%
Mortgage and foreclosure crisis
2%
6%
8%
Physical infrastructure, such as roads, bridges and levees
1%
5%
6%
Energy and gas prices
1%
3%
4%
Environmental issues, such as pollution and climate change
1%
2%
3%
Cost and supply of housing
1%
1%
2%
Crime
0%
1%
1%
Here is a list of issues that people would like our elected officials in state government to address.
Please select the issue you think the elected officials in Sacramento should pay
the MOST attention to? And which issue do you think the elected officials
in Sacramento should pay the NEXT most attention to?
As you may know, the state is still facing a$9 billion budget deficit out of a total
budget of $92 billion. How serious a problem do you think this is?
Do you think California state government should deal with the budget deficit through
all spending cuts, mostly spending cuts, mostly through tax increases, all tax
increases or a mixture of both?
Do you believe California state government could balance the budget without raising
taxes or do you believe that raising some taxes may be necessary?
In dealing with the state budget, which of the following is the highest priority for
elected officials in your opinion as a business leader?
#1
#2
#3
K-12 public education
276
177
104
74
46
22
2.3
Economic Development and
job creation
196
118
149
101
85
50
2.9
Higher education, such as
community colleges and
public universities
54
156
156
136
123
74
3.5
Courts & public safety
87
101
125
156
194
36
3.5
Health care and social
services
60
106
122
167
157
87
3.7
26
41
43
65
94
430
5.1
Prisons
#4
#5
#6
Average
Rank
Below is a list of state programs that are at risk of receiving cuts in funding in order to balance the state
budget. Please rank each of these programs in descending order with the most important program that you
believe should be spared from cuts receiving a one (1) and the least important program receiving a six (6).
NOTE: Low score = highest priority to protect from budget cuts
Strongly
Support
Somewhat
Support
Percent
Support
Somewhat
Oppose
Strongly
Oppose
Percent
Oppose
Ensure that whatever mix of new taxes
and spending cuts are adopted, the end
results is a truly balanced budget
without gimmicks
75%
21
96%
2%
2%
4%
Reform public employee pensions to
more resemble private sector 401 (k)
plans
76%
18%
94%
5%
1%
6%
Conform overtime rules to federal law,
which would return California to a forty
hour work week before adding on any
overtime (rather than on each eight
hour day) to provide workers and
employers greater flexibility and
savings
74%
20%
94%
4%
2%
6%
Place a cap on all state spending so it
cannot grow faster than the rate of
inflation plus population growth
67%
26%
93%
6%
1%
7%
With approximately half the state
budget going to education, reform the
education system to strengthen the
role of principals, expand teacher
training, ease termination of
incompetent teachers, and pay higher
salaries to teachers who improve
student performance
58%
34%
92%
6%
2%
8%
Strongly
Support
Somewhat
Support
Percent
Support
Somewhat
Oppose
Strongly
Oppose
Percent
Oppose
Ensure that one-time revenues cannot
finance ongoing state programs
61%
30%
91%
8%
1%
9%
Place a cap of up to five percent of an
employee’s salary as the most a public
agency can contribute to an employee’s
retirement per year
56%
28%
84%
11%
5%
16%
Reform environmental regulations to
increase certainty and reduce the time
to develop a project
43%
41%
84%
12%
4%
16%
Provide long-term funding certainty for
California universities and colleges to
ensure continued innovation and
skilled workforce
34%
47%
81%
16%
3%
19%
Release some non-violent criminals
early to reduce prison costs
13%
44%
57%
26%
17%
43%
Below is a list of some reforms that legislators are considering in order to balance the state budget.
For each one of the following reforms, please indicate whether you would strongly support,
somewhat support, somewhat oppose or strongly oppose that reform to balance the budget.
Can you name one action that California state government has done
In the past year to help make it easier to run your business?






Enterprise Zones Tax Credits (5 mentions)
Worker’s Compensation reform (2 mentions)
“Veto or refusal to increase minimum wage”
Ruled on rest periods
Streamlined some paperwork
Taking action to trim the size of state
government
Is there any one action that California state government can do
To help make it easier to run your business?






Reduce/simplify regulations
(72)
Conform California regulations
to Federal regulations(63)
Reduce business taxes (30)
Reduce Worker’s Comp costs
& regulations (27)
Less paperwork &
administrative burden (23)
Tort reform to reduce
lawsuits against businesses
(17)
Is there an action California state
government can do to help make it easier
to run your business?






Balance the state budget (16)
More flexibility in meal & rest
breaks (15)
Reduce environmental
regulations (14)
Reduce state government
bureaucracy (10)
Make California “business
friendly” (10)
Stop cuts to social
services/Medicare (10)
Please briefly describe that action.