Economic Summit focuses on sustainable prosperity

The free-spending consumer boom of the past 25 years led many to confuse prosperity with spending money. Nowhere has this delusion been more acute than amongst California municipalities.

In 1978, California voters revolted against a property tax system that drove taxes skyhigh when real estate values ballooned. They slashed the property tax by nearly two-thirds and permanently capped increases to 2% a year. Rather than develop a reasonable and fair alternative for financing local government services, then Governor Jerry Brown “bailed out” counties and cities with the State’s surplus (yes, in those days California State government had billions in the bank).

The surplus ran out. What the vast majority of cities eventually turned to as an alternative was the sales tax. For the last 25 years, cities have relentlessly, creatively and often foolishly pursued sales tax generating businesses. It has become the most important single measure of success for city governments.

So, for example, Camarillo declared its freeway adjacent strawberry fields “blighted,” clearing the way for “redevelopment” to subsidize building theaters, restaurants, big box retailers and an outlet mall that has grown into the biggest in the State. They outwrestled adjacent Oxnard in the outlet war (as Ventura outwrestled Oxnard in the mall war). As a result, Camarillo boasts a healthy budget and a beautiful new library full of new books and patrons.

But is Camarillo really more prosperous because there are lots of entry-level jobs at restaurants and retailers? Is such “prosperity” sustainable in the decades ahead?

For those who didn’t think much about a day of reckoning, such concerns seemed misplaced. So what if fat subsidies were being handed out to major corporations and well-placed developers in cities across California? So what if those interests poured back large heapings of cash into local City Council campaigns? So what if wealth-generating businesses were ignored or even discouraged in favor of auto dealerships and megamalls? So what if sensible land use planning was prostituted at the cost of traffic jams, polluted run-off and devastated downtowns and local businesses?

There are still many people who think that this downturn is just a cyclical adjustment and that we should be getting ready for the next big round of sales tax piracy. But more realistic voices are finally being heard that prosperity is based on high-wage, high value jobs that come from companies that provide value-added goods and services. Consumption is a product of prosperity, not a short-cut to prosperity.

That conversation needs to happen. The idea for an economic summit originated with Councilmember Ed Summers and the Chamber of Commerce embraced the idea. Mayor Christy Weir and Chamber Liaison Jim Monahan have also helped with planning the event. On Saturday, the community is invited to take a fresh look at prosperity in the 21st Century. Should we put all our focus on chasing real estate deals - or should we be asking how to improve the business climate for less glamorous producers of real wealth, the small to medium companies in engineering, light manufacturing, technology and other businesses struggling to make a profit in a high cost environment like coastal California? How can we be on the leading edge of the greening of America’s economy not only because it is a good fit with community values, but because it provides competitive advantage in the 21st Century?

The City of Ventura and the Ventura Chamber of Commerce are partnering to hold this important event in the Council Chambers at Ventura City Hall, this Saturday from 9:00 a.m. to 1:00 p.m. Sign up to attend here.

Local business owners, community leaders and economic experts are being invited to participate alongside Ventura City Councilmembers in strategizing a vibrant and sustainable economy for Ventura's future. Principal speaker, Bill Watkins, Economist with the newly formed forecasting and research center at Cal Lutheran University, will set the stage for serious conversations in five break-out sessions for attendees:

• Improving the City's Bottom Line and Fiscal Health
• Fostering Smart Growth
• Greening Ventura's Economy
• Retaining/Expanding Jobs and Businesses
• Enhancing our Business Climate
  

Immediately following the breakout sessions, each group will report their recommendations to the City Council that afternoon. Based on the reports, City Council will direct staff and assign action items for a 90-day, 1-year and 5-year work plan.

A single day will not dramatically revamp our priorities or bring instant success. Nor should it. Promoting prosperity is a long-term endeavor. But this Saturday is an important and highly visible opportunity to talk about what matters most - and help forge a community consensus for what we can be actively doing today to create sustainable prosperity for Ventura in the decades to come.