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California Foundation for Commerce & Education
May 2008 Internet Survey of
California Business Executives’ Attitudes
June 5, 2008
Survey Methodology
1,113 California Chamber of Commerce members participated in the Internet Survey
Online interviews were conducted from May 12 – 21, 2008
The survey has a margin of error of +/- 2.83 percent
23
77
Generally speaking, do you think that things in California are going in the right direction, or do you feel things have gotten pretty seriously off on the wrong track?
Wrong track
Right Direction
Right – Wrong = -53
18
59
23
00
20
40
60
Excellent Good Just fair Poor
How would you currently rate California's economy?
4644
10
0
10
20
30
40
50
It will get better It will stay about the same It will get worse
What is your outlook for California's economy over the next year?
Get Better - Get Worse = -35
57
14
29
0
20
40
60
It will get better It will stay about the same It will get worse
What is the outlook for your own business over the next year?
Get Better - Get Worse = +15
1
63
29
6
Would you say it is easier or harder to do business in California than in other states?
Harder
My company only does
business in California
Easier – Harder = -62
Easier
About the Same
4
4
5
9
10
10
11
14
31
1
0 10 20 30 40 50
Access to capital/getting a loan
High cost of rent/facilities/office space
High cost of energy
Competition within a challengingmarketplace
High state and/or local taxes
High cost of housing
High labor costs
High cost of health care
Hiring and maintaining a qualified workforce
Too much government regulation
1st Choice 2nd Choice
42
28
28
26
21
What would you say is the single biggest challenge to doing business in California? And what would you say is the second biggest challenge?
20
11
11
10
2
4
5
9
11
20
18
32
0
0 20 40 60
Supportive state government
Transportation and logistical infrastructure,including
Availability of qualified and skilled workers
California's ethnic and cultural diversity
Culture of innovation/research &development
Access to large and lucrative markets
Quality of life
Climate/weather
1st Choice 2nd Choice
52
38
37
25
18
What would you say is the single biggest challenge to doing business in California? And what would you say is the second biggest challenge?
14
14
1
30
3
33
3
38
0 10 20 30 40
Reduced employees
Reduced non-employeecontract jobs
No change
Added non-employeecontract jobs
Added employees
Overall, has your company added or reduced jobs in California over the last year?
16
2
51
4
31
0 20 40 60
Reduce employees
Reduce non-employeecontract jobs
No change
Add non-employeecontract jobs
Add employees
Does your company plan to add or reduce jobs in California over the next year?
2
2
2
2
4
5
6
8
12
12
11
12
19
1
0 10 20 30 40
Crime
Access to health care for the uninsured
The cost and supply of housing
Environmental issues, such as protecting the air, land andwater
Physical infrastructure, such as roads, bridges and levees
Taxes
The mortgage and foreclosure crisis
Labor regulations governing overtime, wages, rest periodsand benefits
The increasing cost of health care and health insurance
Illegal immigration
Energy and gas prices
The economy and job creation
The quality of public schools and higher education
The state budget deficit
1st Choice 2nd Choice
33
24
24
23
22
Here is a list of issues that people would like our elected officials in state government to address. Please select the ONE issue you think the elected officials in Sacramento should be paying most attention to? And which issue do you think the elected officials in Sacramento should be paying the next most attention to?
19
12
10
9
8
5
4
4
3
10
43
46
0
1
0 20 40 60
Not serious at all
Not too serious
Somewhat serious
Very serious
Extremely serious
As you may know, the state currently faces a very large budget deficit. How serious a problem do you think this is?
1
89
37
32
28
1
3
0 20 40 60
All tax increase
Mostly tax increase
Micture of both
Mostly spending cuts
All spending cuts
Do you think California state government should deal with the budget deficit through spending cuts, through tax increases, or through a mixture of both?
4
60
69
13
12
7
The largest areas of state government spending are K-12 public education, higher education, health and social services, and prisons and public safety. What do you think should be the highest priority to protect from budget cuts?
K-12 public education
Higher educati
on
Health and social services
Prisons and public
safety
13
13
16
24
25
8
0 10 20 30 40 50
1st Choice 2nd Choice
45
40
33
31
27
Which of these reforms would be your top choice for dealing with the California state budget?
25
With approximately half the state budget going to education, reform our schools and how education dollars are spent by providing essential skills to students so they can succeed in the workplace, cutting bureaucracy and strengthening financial management, expanding teacher training, and paying higher salaries to teachers who improve student performance.
Ensure that whatever mix of new taxes and spending cuts is adopted, the end result is a balanced budget.
Eliminate annual program funding and salary increases in the budget that are automatically linked to inflation.
Ensure that any tax increases are temporary, broadly-based (not focused on any single industry or group of taxpayers), and least harmful to the state's economy.
Reform labor regulations governing overtime, wages, rest periods and benefits to provide more flexibility for employers and employees in the workplace.
Ensure that one-time revenues can never again be used to finance ongoing state programs..