Legislators to Miss Budget Deadline Once Again
As budget negotiations between Democrats and Republicans continue throughout the week, key differences remain unresolved, virtually assuring that lawmakers will once again miss a constitutional deadline set for midnight tonight.  In May, the Schwarzenegger administration submitted a revised $103.8 billion budget, reflecting an unexpected shortfall in state revenues, with no new taxes and plans for paying down state debt at the expense of cost-of-living adjustments for the poor and disabled proposed in his original budget.  Facing these and other tough fiscal decisions confronting the state over the next 12 months, Democrats are set on preventing social welfare cuts while Republicans are trying to break the state’s habit of spending more than it takes in.  Despite current disagreements, it is expected that the Legislature will produce a balanced budget for the governor to sign when the fiscal year begins on July 1.

Assembly Committee Discussing Hyper-Weighted Sales Factor Bill
The Assembly Revenue and Taxation Committee continues to hold information hearings on AB 1591, authored by Assemblywoman Fiona Ma (D-San Francisco), legislation that would allow core industries in California to apportion business income to the state using a hyper-weighted sales factor formula.  The current apportionment model relies heavily on property and payroll factors, discouraging corporate investment in our state by imposing an additional tax on new jobs and capital improvements.  CHI strongly supports altering the current methodology, enhancing California’s competitiveness by providing California-based companies a strong incentive to create new jobs and expand operations within the state. Amendments to the bill were taken on Thursday and CHI will continue to track the measure as discussions continue next week.

CHI to Co-Host Biz/Bio Conference
On Thursday, June 28, The California Healthcare Institute (CHI) is pleased to join partners from throughout California and the nation to host the "Building on the Foundation" Biz/Bio conference. The purpose of the conference is to discuss the state of biosciences in the region and to offer a vision on how the industry will grow in California.  Speakers include: Los Angeles Mayor Antonio Villaraigosa; PhRMA President & CEO Billy Tauzin; Alfred Mann, Chairman & CEO, Mannkind Corporation; Gail Naughton, Ph.D., Dean, SDSU College of Business Administration; Charles Warden, Managing Director, Versant Ventures and many others.  The meeting will take place from 1:30 – 5:30 p.m. (reception to follow) at the Millennium Biltmore Hotel in Los Angeles.  For more information or to register for the event, visit www.cabizbio.org.