June 2, 2003

Media Contacts:
Laurie Golden, 818.888.9337
VICA Publicist

Ralph Tarr, 213.896.3100
VICA State and Federal Issues Co-Chair

VICA ENDORSES APPROACH TO REFORM STATE BUDGET AND PROTECT CALIFORNIA’S QUALITY OF LIFE AND ECONOMIC GROWTH

SHERMAN OAKS, CA – The Valley Industry and Commerce Association (VICA) Board of Directors has rejected the assumptions made in the political debate over the current State Budget crisis that balancing the budget can only be achieved by implementing draconian cuts in quality of life programs, significantly increasing taxes and fees, and by borrowing against future revenues through unnecessary deficit bond financing.

Rather, VICA endorses the approach proposed in the California Citizens’ Budget which was produced by the Reason Foundation and the Performance Institute, as follows:

• Develop bipartisan structural reforms that reward enhanced performance, and offer increased accountability;
• Identify the problem for what it is: Out-of-Control Spending
• Target spending reductions based on performance-based budgeting;
• Streamline and reorganize State Government through consolidation and E-Government;
• Create personnel reforms and workforce incentives;
• Enact competitive sourcing and procurement reforms;
• Protect and improve education;
• Implement health and social welfare reforms;
• Adopt a Biennial budget and limit Constitutional revenue and spending;
• Stabilize revenues by creating the most jobs-friendly state in the nation.

Although 45 states are facing budget shortfalls this fiscal year, the State of California is faced with a deficit in the ballpark of $38 billion – the nation’s largest. For information on the California Citizens’ Budget, download http://www.rppi.org/cacitizensbudget.html.

Founded in 1949, VICA’s mission is to encourage the economic vitality of the greater San Fernando Valley region by advocating on behalf of its business community. Fred Gaines, Esq., managing partner of Gaines & Stacey LLP, is the VICA Chairman of the Board. Bonny Herman is President and CEO.