No one likes to dwell on the bad times, but there are lessons and silver linings in the aftermath of the Great Recession. The Valley Industry and Commerce Association, or VICA, fights for the San Fernando Valley’s business community every day to try and make sure the region, the state and hopefully the country never have to go through the housing and retail nosedive the way we did a few years back. But with the enormous losses that were faced by so many, an opportunity arose for the city of Los Angeles – at least, we hope that’s what our elected officials will make of the situation. Back during the recession and the massive revenue declines, the gravity of the situation regarding the city’s truly unsustainable pension fund – which VICA has sought to reform for decades – was brought out for earnest examination. Also, the city was forced to cut thousands of jobs, with the total number of city employees reduced from a little more than 30,000 to just under 24,000 in the last seven years. However bleak the forecast might have been a few years back, the unfortunate situation, as with many tragedies, offers the city a chance to rebuild anew with a more fiscally prudent and revenue-generating model for its operations. Due to the labor deal negotiated with the unions that was approved in December, city labor groups accepted a slightly less-expensive pension plan that freezes wages on most workers for three years, which also will allow the city to hire 5,000 more workers over the next three years. Therein lies a fantastic opportunity. This is a chance for the city to make itself more business friendly, which could generate more revenue and hiring opportunities as well as alleviate some of the burden of its bloated pension plan. There’s a right way and a wrong way to go about this, and VICA has already noted both concerns and suggestions. The best way to address the city’s job situation is, of course, with a coordinated plan. Right now, what’s being proposed is the Workforce Restoration Program – which is looking at how the city can add 5,000 full-time employees by 2018. The initial goal announced was to seek out individuals from groups that are traditionally underemployed, such as former gang members, the homeless and our veterans. While progress on hiring and helping to address homelessness in Los Angeles are two efforts the city needs to make great strides in, determining what jobs are created is just as important as whom the city is seeking to hire. While the city saw cuts to some services in the past few years since the economic downturn and recovery, the reality is not all services are equal. Yes, the city might survive without tree-trimming services quite as often, but addressing the real needs in the housing crisis – the city’s cumbersome, outdated and oft-complained-about permitting and licensing operations – are a true concern that, if addressed, could significantly boost the economy. In fact, one of the issues Google considered when it looked at Los Angeles for a potential rollout of its new Google Fiber technology was whether the city has an “efficient and predictable” permit process for business. It goes well beyond that one example. Instead of considering a moratorium on major construction projects such as the proposed ballot measure gathering signatures now, the city should be looking at how it can create opportunities for more development and jobs. What would be even better, in a perfect world, would be to see City Council President Herb Wesson’s idea for an Ad Hoc Committee on Job Creation to be brought into the fold, and to see how those 5,000 proposed hires could be used to create even more jobs, instead of working backward to restore positions across the board that were cut – some of which we might be able to do without. By looking at city services that generate revenue for the city, as well as the type of housing, retail and commercial opportunities that are much needed, L.A. officials have a real chance to transform the recent losses from the national economic downturn into a local opportunity to revitalize a sleeker, more efficient city. Stuart Waldman is president of the Valley Industry and Commerce Association, a Sherman Oaks-based business advocacy organization that represents L.A. County employers at the local, state and federal levels of government.
