California, Norway face similar, tough issues

Pasadena Star News

By: Cynthia Kurtz

Posted 1/23/2014

Recently, I was one of a small band of Southern Californians who headed to lands north of the Arctic Circle in search of the northern lights. No matter how long you plan or how much cold you are willing to endure, there is no guarantee you will see the lights. We were fortunate. After four days of watching and waiting, the green curtain appeared and danced across the sky. It is a sight I will never forget.

Travel always includes so much more than you expected and Norway was no exception. This year the country that invented the cheese slicer is celebrating its 200th anniversary of their constitution. After years of rule by Sweden and Denmark, Norway became independent in the early 20th 

century.

Not having their own line of monarchs to call on, the Norwegians elected Prince Carl of Denmark as King. Even so, Norway has never really trusted the other European countries. Several votes to join the Euro zone have failed and Norway remains one of the two Nordic countries which have not joined the EU. The Krone is still the national currency.

The economy of Norway is an amazing story. It was a relatively poor country based on fishing and ship-building until the mid-1970. Then the discovery of off-shore oil and gas reserves transformed everything.  Wages went up, unemployment went down and the already extensive social welfare system was expanded. 

Today Norway remains one of the world's largest oil exporters. Twenty percent of the country's gross domestic product (GDP) is from oil and gas. Showing its independence again, Norway decided to stay out of OPEC and keep its energy prices in line with world markets.

A rapidly expanding economy creates challenges as well as benefits.   Norway is one of the most expensive countries in the world. While not a problem for the locals based on their salaries, a traveler may be shocked by a $30 hamburger. 

As I was learning Norway's story I was struck with two things that made me think about California and the SGV. First, because things have been so good in Norway, there has been little incentive in the last 40 years to develop new industries. Even though 42 percent of the oil reserves are still to be extracted, local and national governments realize this is not sustainable. They are beginning to look for other private sector growth that will replace the energy sector in the future.

We face similar issues with the loss of manufacturing, filming and other industry sectors that have historically been important to our economy. We want to do what we can to keep and grow them here. But it is really difficult to hold on to a declining or fleeing industry sector. Equally important is identifying where our future economic growth and jobs will be and putting in place the support systems they need to sustain our future.

Second, learning English is mandatory in Norway starting in kindergarten. Many people speak additional languages. They respect and retain their culture but give their youth the tools to participate in the global economy. I think we would all agree that our youth deserve the same opportunities.

Tax credits target California businesses

Pasadena Star News
By: Cynthia Kurtz
Posted: 1/08/2014

Many states have been trying blatantly to woo California’s businesses but now California is ready to fight back. January 1 marks the beginning of the California Compete Tax Credit Program which will reward businesses that add or move jobs into the state.

$30 millions of tax credits are available this year to reduce business income and franchise taxes for eligible companies. That number grows to $150 million in fiscal year 2014-15 and $200 million in 2015-16 and 2016-17. 

The Program is being administered by GO-Biz, the Governor’s Office of Business and Economic Development. The program was designed to give GO-Biz flexibility so the credits can be allocated to best meet a regional or statewide need. 

Go-Biz has the ability to negotiate the amount of tax credit a business can receive based on the overall economic impact for California. That means they will consider factors such as the number of jobs, employee wages, the extent of unemployment where the business is locating or expanding, and opportunity for future growth.

In order to assure the credits are maximizing the benefits to the state, region or locality the “California Compete Tax Credit Committee” will have ultimate approval. That Committee is composed of the State Treasurer, the Director of the Department of Finance, the Director of Go-Biz, one appointee of the Senate and one appointee of the Assembly.

The tax credit isn’t just for big businesses. Recognizing that most new jobs come from small businesses, the state allocated 25 percent of the credit available in any year for small businesses.

While a tax credit can’t be used to reduce an individual company’s taxes below the minimum tax, the credits can be carried over to reduce taxes for up to five years.

The state Franchise Tax Board has the responsibility of assuring compliance and will review the records of all large businesses which are allocated a tax credit by GO-Biz. For small businesses, the Tax Board’s review will be on an as-needed basis.

I know there are San Gabriel Valley businesses that are planning to expand in the next few years. Some of these businesses haven’t yet decided whether to expand here or in another state. This is the program designed to keep you and your expansion here. 

Applications will be accepted during the first quarter of 2014. Information is available on the Go-Biz website. The Business Development team at the San Gabriel Valley Economic Partnership is also ready and eager to help get you more information. 

So take that Texas. California is open for business.

Parade, events generate magic

Pasadena Star News
By: Cynthia Kurtz
Posted 1/01/2014

On January 1, 2014, the Pasadena Tournament of Roses holds its 125th Rose Parade with theme “Dreams Come True” with Grand Marshall Vin Scully. Following will be the 100th Rose Bowl Game. This is the perfect time to thank the Tournament for their contributions to our region’s identity, economy and fun.
 

In 1890, the members of the Valley Hunt Club voted to hold a parade. They would decorate their horses and buggies with flowers. The parade would be followed with a variety of games - tug of war, jousts, and foot races.   

2,000 people came out to enjoy the New Year’s activities. Blooming flowers and being able to hold outdoor games on January 1 - in the middle of winter - was a great reason for the Indiana Colony settlers to celebrate. 

The following year music was added to the parade when the Monrovia Town Band performed for the crowd. Then came viewing stands and the crowds grew. 

In 1895, the Valley Hunt Club decided the parade had become too big for them to handle and the Tournament of Roses Association was formed to manage the festivities.  

In 125 years, it has only rained on the parade 10 times. Some credit divine intervention because of an 1893 decision to never hold the parade on Sunday. Sunday parades would interfere with folks going to church. So, when New Year’s Day fell on a Sunday, the parade would be held on Monday. The “never on Sunday” tradition continues today.  

In 1900, the parade was captured on film for the first time. In the following months, audiences across the United States had front row seats for the New Year’s Parade and viewers began to promise themselves to “someday” see it live. Today the Rose Parade is viewed by 84 million people in 220 territories and countries. An estimated 700,000 people line the parade route each year.   

We can’t imagine New Year’s Day without football. It all began with a game on January 1, 1902. 8,500 people showed up for the 1,000 available seats in the “town lot”- known today as Tournament Park on the Caltech campus. The University of Michigan beat Stanford University 49 - 0.    

Maybe it was the overwhelming large crowd or maybe it was the lopsided score but football was dropped in favor of other sports. A chariot race in 1904. It was exciting but dangerous. An elephant-camel race in 1913.The elephant won.  

In 1916, football returned and in 1922 the game was moved to the newly constructed “horse-shoe shaped” stadium in the Arroyo Seco with seating for 57,000 - the Rose Bowl. Today we still celebrate the Grand Daddy of them all in the Rose Bowl on New Year’s day.