NFIB/California Issues Statement on Budget Agreement

CONTACT: Michelle Orrock, 916-501-7433

SACRAMENTO, Calif. -- The National Federation of Independent Business/California issued the following statement today in response to the Legislature passing a budget agreement:

"The recent budget deal that the state Legislature passed contains more than $13 billion in tax increases on Main Street, working Californians and families, all while doing very little to help small businesses keep their doors open and people employed  during these challenging times. It is now time to get back to the business of growing California's economy," said John Kabateck, NFIB/California executive director.

"We are encouraged by the silver lining of a small business hiring tax credit that promises to help businesses once they are in a position to grow, and hope that it will be a sustainable incentive one day for small employers who are presently reducing shifts and laying people off to make ends meet. Small business also recognizes efforts by our state leaders to negotiate a cap on growth in state spending in an attempt to ward off future financial famines, but remains cautiously optimistic about a formula that could in fact allow for future adjustments to account for tax increases.

"Small business creates the vast majority of California jobs and plays a pivotal role in leading the way out of a recession. This deal does not offer the flexibility or assurances that will help small businesses to retain existing jobs and turn the corner on this suffering economy.

"While there appears to be some marginal inroads in the direction of economic stimulus, our state leaders unfortunately missed a golden opportunity to shorten this recession for small business. With onerous new cost burdens, direct benefits to big business and few concessions from organized labor in this deal, it is now time for the Legislature to make a serious and valiant effort to support and protect California small businesses."