Brown Unveils California Jobs Plan

gov jerry brown Brown Unveils California Jobs PlanSACRAMENTO (CBS13) — On Thursday Gov. Jerry Brown revealed his new plan to get Californians back to work – and to keep businesses from leaving the Golden State.

The plan starts with $1 billion in tax relief to companies that purchase new manufacturing equipment. That’s why electric car maker Tesla Motors is supporting the plan.

Tesla’s Diarmuid O’Connell told CBS13, “We would be more likely to expand those operations in this state and as a natural consequence of that we would be hiring more people.”

Just how many more new hires for California is unclear, but one thing that will help, Brown said, is to stop punishing companies for creating jobs in California.

“Every time an out-of-state company moves a job out of California, then they get a tax break,” Brown said at his Capitol news conference Thursday. “And every time they hire within California, they increase the taxes they pay.”

Brown’s plan is to change the tax code by applying the Single Sales Factor (SSF) to all businesses in California. It would eliminate what Brown called “an outrageous and perverse tax incentive that encourages multi-state businesses to create jobs outside of the state.”

It could mean rewarding bio-tech companies like Genentech for hiring more people in California.

Will it create a stronger business climate in California?

“Absolutely,” said Andrea Jackson of Genentech. “Particularly in growing industries like the biotech industry.”

The governor was surrounded by nearly a dozen business leaders Thursday, but Republicans at the Capitol called the plan too little – too late.

Brown said he’s been meeting with Republicans privately to get their support. “Whenever we talk to Republicans it’s always in the dead of night, so we don’t like to tell you about it,” he said in jest.

The governor’s job plan has to move quickly because the legislature’s last day of session in Sept. 9.


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