The Leading Voice of Business in Orange County                                                                                   Tuesday, January 10, 2017
BREAKING NEWS: GOVERNOR BROWN RELEASES $177.1 BILLION BUDGET PROPOSAL
Today, Governor Jerry Brown presented a $177.1 billion state budget proposal for 2017-18. The proposal opened with "Save some biscuits for a rainy day" in reference to First Dog Sutter, and a reference to add to the state's rainy day fund, lauded by Republicans. Many priorities in the budget are relevant to OCBC's four core initiatives and strategic policy priorities for 2017, the first of which is a major spending proposal for education. Gov. Brown proposes K-14 funding growth to $73.5 billion in 2017-18, up 55 percent, or $26.2 billion from 2011-12. Next is transportation infrastructure with the inclusion of a proposal for $4.2 billion annually to fix California's roads and highways, enhance transit, and improve goods movement corridors. No funding is allocated for housing, even with a recognition of California's housing crises. Finally, the governor proposed $2.1 billion for his climate change goals through cap and trade, however, this is contingent upon an urgency vote requiring the approval of the legislature to keep cap and trade legitimized beyond the year 2020.  Details of the spending plan will be laid out in a series of trailer bills to be submitted to the legislature by February 1. OCBC is optimistic about the Governor prioritizing transportation and education but will continue to urge further work to ensure Southern California gets its needs met. CLICK HERE for the Governor's press release. For more information, contact Bryan Starr, Sr. Vice President, Government Affairs. This article was updated at 5:00pm on 1/10/17.
ADAPT. CONNECT. TRANSFORM. 2017 WILL BE THE YEAR OF INTERESTING TIMES
The oft-quoted so-called Chinese curse, "May you live in interesting times," seems just right for the dawn of 2017 and last year's era of fake news.  The quote itself is fake.  In reality, there is no equivalent expression in Chinese.  Any more than John F. Kennedy's famous quote, "In the Chinese language, the word 'crisis' is composed of two characters, one representing danger and the other, opportunity."  Motivational speakers use these memes, as did political speakers such as Secretary of State Condoleezza Rice and former Vice President Al Gore in separate talks. Nevertheless, fake or not, interesting times of danger and opportunity seem before us.  A new President with no political experience will likely judge policy and politics on what experience he does have:  what's good for business, jobs and the economy. CLICK HERE to read more. 
WILL YOU ADAPT, CONNECT AND TRANSFORM? OCBC'S ANNUAL DINNER - FEB. 16, REGISTER NOW!
Registration is open for OCBC's 2017 Annual Dinner and Installation of the Board of Directors, sponsored by Transportation Corridor Agencies. The gala event will feature the theme "ACT : Adapt. Connect. Transform." OCBC will recognize outgoing 2016 Chair RJ Mayer, The Mayer Corporation, and install the 2017 Board of Directors, led by incoming Chair Richard Porras, AT&T. Keynote speaker and more details coming soon!
Date: Thursday, February 16, 2017  Time: 5:30 p.m.  Registration  I 9 p.m. Adjourn Place: Hotel Irvine  For more information, contact Sabra Ritter, Events Director. 
 
ASSEMBLYWOMAN QUIRK-SILVA VISITS OCBC, PROMISES TO PROTECT PROP. 13
OCBC's Government Affairs Committee welcomed Assemblywoman Sharon Quirk-Silva, 65th District of California, Friday for the first meeting of 2017. The Assemblywoman recently reassumed her seat after the Nov. 2016 election and will chair the state's Jobs Committee, also known as the JEDE committee. As teacher of 30 years before her time in public office, the Assemblywoman understands the importance of workforce development programs and impacts on the economy and jobs and said this will be a critical issue for her in the coming months.  OCBC commends Assemblywoman Quirk-Silva immensely on her steadfast pledge to SUPPORT Prop. 13, and oppose changes including split-roll taxation. Prop. 13 was passed by two-thirds of California voters in 1978 to reduce property tax rates on homes, businesses and farms. Watch a short video interview conducted by Lucy Dunn, President and CEO! For more information, contact Bryan Starr, Senior Vice President, Government Affairs. 
SANTANA: LOCAL OFFICIALS HAVE THE POWER TO ALLEVIATE HOUSING CRISIS
Orange County residents carry the highest housing cost burden in California. And that's something that every local elected official in our county should be called out on. Because they can solve it...According to a new statewide housing assessment issued last week by the California Department of Housing and Community Development on California's housing future, the state faces a stark shortage of housing with ominous implications for our families and individual health. As it is, no one in California pays more for housing than Orange County residents, concludes the statewide assessment - noting that an OC resident pays about 44 percent of their income toward housing (way above the 30 percent mark recognized as housing affordability). One third of renters overall are paying 50 percent of their income toward housing, the assessment concluded. CLICK HERE to read more. 
UBER SHARES NEW WEBSITE, MOVEMENT, TO GUIDE INFRASTRUCTURE PROJECTS OF THE FUTURE
OCBC investor Uber recently launched its new website Movement, which opened up its traffic data for cities and agencies to use for infrastructure planning. Uber has enormous information and insight into how traffic works within a city and can also anonymize this data. Uber recognized the implications of public benefit to have access to this information and is releasing it first to organizations who apply for early access. For more information, contact Bryan Starr, Sr. Vice President, Government Affairs. 
OCTA APPROVES MEASURE M NEXT 10 PLAN, COMMITS TO KEEPING VOTER PROMISES
On Nov. 14, the Orange County Transportation Authority (OCTA) Board of Directors voted to approve the Measure M Next 10 Plan, which ensures the agency continues to the deliver the promises made in the Measure M2 Investment Plan, despite changing economic impacts and revenue shortfalls. Projections for M2 were beginning to look dire. If OCTA did not address the funding problem early, M2 would face a cash flow deficit totaling $200 million between the years 2026 and 2034 because of an eventual $10.1 billion revenue shortfall projected out to 2041 due to the recession and changes in consumer spending. As a key stakeholder in improving the region's mobility, OCBC met with OCTA leaders to discuss the best way forward to address projected funding shortfalls. Potential options included delaying projects and hoping for increased state and federal funding, which has been in steep decline over the past decade; canceling some M2 projects all together, and thereby betraying promises made to voters, or using excess toll revenue from the SR-91 Express Lanes. The choice was clear and OCBC agreed that reprogramming excess toll revenue from the SR-91 Express Lanes to supplement M2 projects near the SR-91 corridor was the best plan. This revenue shift is a good solution to an otherwise costly problem.  The OCTA Board agreed and authorized the reprogramming of toll revenues. The recent OCTA Board action replaces the M2020 plan and outlines $68 billion in transportation improvements over the next 10 years. CLICK HERE for a brief overview of the plan. CLICK HERE for the full report. CLICK HERE to read more. For more information, contact Bryan Starr, Sr. Vice President, Government Affairs.
ADRIAN FOLEY AT OCBC'S FIRST CHAIRMAN'S LEADERSHIP BREAKFAST - JAN. 26
Join OCBC for the first Chairman's Leadership Breakfast of the 2017 series featuring Adrian Foley, COO, Brookfield Residential, Western Region President. He oversees the entire California business portfolio for Brookfield Residential - one of North America's largest publicly traded real estate entities, with land development and homebuilding operations in 11 of the most dynamic regions across the U.S. and Canada. Our guest will be interviewed by none other than Tom Phelps, Manatt, Phelps and Phillips, Chair of OCBC's CEO Leadership Caucus. For more information, contact Sabra Ritter, Events Director. 
Date: Thursday, January 26, 2017  Time: 7:30 a.m. to 9:00 a.m.  Location: The Center Club
Cost: $85 members  I  $145 Non-members  I  $300 2017 CLB series 
REGISTER TODAY, THIS WILL SELL OUT! ONE VOICE, TWO CAPITOLS ADVOCACY TRIP - MARCH 2017
This WILL sell out! Help make the voice of business heard and advance OC's competitive advantage by joining OCBC for the annual One Voice, Two Capitols Advocacy Trip to Sacramento Monday, March 13-14. Join us for targeted legislative meetings to advocate for OC's priorities and unparalleled networking with business and elected officials. For more information, contact Bryan Starr, Sr. Vice President, Government Affairs. 
WHEN: March 13-14, 2017 WHERE: The Sheraton Grand Hotel  I  1230 J Street, Sacramento, CA
 
WATER INFRASTRUCTURE IMPROVEMENT FOR THE NATION ACT
Before leaving for the holidays, Congress passed the Water Infrastructure Improvement for the Nation Act (WIIN). The infrastructure bill enacts the Water Resources Development Act of 2016 and provides funding for harbor, flood protection and water resources infrastructure throughout the country.  Of interest to California and Orange County is the fact that the act also included a number of provisions addressing California's drought.  Specifically, WIIN includes language allowing for increased water delivery from the Delta to the San Joaquin Valley and Southern California, which is important to Orange County; expediting water storage, delivery, and other alternative water supply development in the western United States; providing $335 million for water storage and groundwater projects; and providing $180 million for desalination, recycling, and water reuse projects. CLICK HERE to read more. For more information, contact Bryan Starr, Sr. Vice President, Government Affairs.

Special thanks to IRWD Government Affairs Director Christine Compton for contributing to this article. 
TIME TO TURN UP THE HEAT: STATE AGENCIES NEED TO REOPEN SOCALGAS STORAGE FACILITY NOW!
Winter is here and baby, its cold outside!  Southern Californians turned up their home thermostats for the first time this year, increasing the demand for natural gas. Normally this level of demand would not be an issue. Natural gas is abundant affordable, clean energy and merely needs storage for access to our energy needs. More than 95 percent of Southern Californians use natural gas for home heating and-you probably didn't know this-about 60 percent of the electricity used in California comes from power plants that run on natural gas. However, one of the largest storage facilities available, Southern California Gas Company's (SoCalGas) Aliso Canyon storage facility, located in the Santa Susana Mountains near Porter Ranch, Los Angeles, has endured a prolonged closure for more than a yeardue to a serious gas leak.  The leak has now been fixed, local environmental and homeowner issues at Porter Ranch have been addressed. The utility has made comprehensive reforms to protect against another leak.  The well is sealed.  The facility is safe.  Yet Aliso Canyon is still closed and 21.6 million Southern Californians face uncertainty about the cost and reliability of their energy supply until Aliso Canyon is re-opened. CLICK HERE to read more. For more information, contact Bryan Starr, Sr. Vice President, Government Affairs.
CPUC APPROVES SOUTH OC RELIABILITY ENHANCEMENT PROJECT, WIN FOR OC BIZ, RESIDENTS!
On Dec. 15 with a 5-0 vote, the California Public Utilities Commission (CPUC) approved San Diego Gas & Electric's proposal to construct the South Orange County Reliability Enhancement Project. OCBC commends the CPUC's vote and has long been a supporter of the project as it improves electric reliability to its customers in the southern portion of Orange County, while also enhancing public safety by providing greater protection against catastrophic events and other threats. This is a tremendous milestone as the project has taken nearly five years to reach this point. SDG&E is now finalizing engineering plans and preparing for the start of construction, which should begin toward the end of the second quarter of 2017. The project will not only improve electrical reliability, but also the aesthetics around the San Juan Capistrano Substation. For more information, contact Bryan Starr, Sr. Vice President, Government Affairs.
THE SURPRISING CITIES WHERE YOU'LL FIND AMERICA'S NEWEST AND OLDEST HOMES
Irvine, CA: Job-fueled population growth:  Since the recession, Irvine (No. 7), with other cities in Orange County, has been leading the economic recovery in Southern California. While nearby Los Angeles has an unemployment rate of 5.1 percent in November, higher than the California average, Irvine has only 2.8 percent unemployment, according to the California Employment Development Department. That's in part because it's home to a slew of life science and IT companies. From 2010 to 2015, Irvine's population grew by 18 percent. "Luckily there is still some available land [in Irvine] to build new homes," says Wallace Walrod, chief economic adviser to the Orange County Business Council. "The city of Irvine is open to new development as long as it's planned." A poster city for the master-planned community, Irvine features landscape that's defined by its manicured public spaces, uniform Spanish red-tile roofs, and beige homogeneity that date to the 1960s. New construction in Irvine is responsible for the bulk of housing creation in Orange County. Irvine Co., which owns most of Irvine's land, divides the land into separate villages and develops them in series. Newer villages like Portola Springs are located farther inland. FivePoint, another local developer, is moving forward with an ambitious project near the decommissioned El Toro military base that will include more than 9,500 residences when completed. For more information, contact Patty Conover, Public Affairs Manager. CLICK HERE to read the full article. 
OCBC'S LUCY DUNN AND TCA'S MIKE KRAMAN COMMENDED BY CA STATE PARKS FOUNDATION
OCBC's Lucy Dunn and TCA's Mike Kraman were graciously featured in an article of the California State Parks Foundation, further cementing the powerful accomplishments achieved with the business and environmental communities work together. The article followed the historic agreement between the Save San Onofre Coalition and the Transportation Corridor Authority to protect the San Onofre State Beach and the Richard and Donna O'Neil Land Conservancy while also paving the way for the Foothill-South toll road (SR-241), and pointed to Kraman and Dunn's leadership which "brought the Coalition to the table to talk about whether there were ways to protect San Onofre and the Conservancy that would allow us to move on. To be honest, Coalition members were concerned at first. Slowly but surely, however, trust was built that allowed the settlement to move forward." CLICK HERE to read the full article. For more information, contact Delaine Moore, Communications Director. 
TOD BURNETT: TRANSPORTATION AND ENVIRONMENTAL PROTECTION IN SOUTH ORANGE COUNTY
As the leading provider of higher education and training in South Orange County, Saddleback College is dedicated to student success and the health and safety of all of our 40,000 annual students and over 1,500 employees. We play an important role in the community, and we remain strongly committed to our local environment, providing valuable environmental education and training programs, implementing sustainable practices on campus and forging partnerships with environmental organizations. I was thrilled to hear that on Nov. 10 the leaders of a coalition of a dozen environmental groups stood shoulder-to-shoulder with the Transportation Corridor Agencies (TCA) announcing an historic settlement, ending their 15-year battle over how to connect the 241 Toll Road with the I-5 Freeway. This settlement paves the way for TCA to move forward in an effort to find a mobility solution to the ever-increasing traffic congestion in South Orange County. I offer my most sincere congratulations, respect and appreciation to both sides for working toward a solution that balances our region's transportation needs with environmental protections. CLICK HERE to read more. For more information, contact Delaine Moore, Communications Director.
OCBC INVESTORS MAKE THE OC REGISTERS 2016 'GAME CHANGERS' LIST 
The Orange County Register highlighted people who changed lives in 2016 with their OC's 100 Most Influential People list. OCBC congratulates all the people on this list of "game changers" and would like to extend added token of thanks and appreciate to several OCBC investors and partner organizations with individuals who were featured, including: Laura Archuleta, Jamboree Housing Corporation; Emile Haddad, FivePoint Holdings LLC;  Dr. Negar Ashouri, CHOC Children's; Donald Bren, The Irvine Company; Jack Brouwer, UC Irvine; Erwin Chemerinsky, UC Irvine Law School; Dr. Mildred Garcia, CSU Fullerton; and Peter Navarro, UC Irvine. For more information, contact Natalie Rubalcava, Vice President Investor Relations and Business Development. 
GET YOUR CYBERSECURITY TIP OF THE DAY HERE...
Many corporate breaches are the result of end users unknowingly compromising the network and can be directly attributed to inadequate security awareness training. The number of spear phishing campaigns targeting employees increased by 55 percent in 2016. A training program is designed to empower employees to recognize common cyber threats, know work policies and practices regarding internet safety. As well as encouraging employees to report suspicious activity to IT staff as soon as they can. When it comes to cyber security, educating your employees is the first, best defense against most online dangers! For more information, contact Jocelin Jimenez, Economic Development Specialist. 
MEMBERS IN THE NEWS
COMMUNITY EVENTS    
German American Business Association Luncheon with Dr. Mohamed A. El-Erian - Tuesday, January 10
Join GABA for a luncheon with one of the world's most influential economic thinkers, Chief Economic Adviser to Allianz, Fmr. CEO of PIMCO and award winning author. CLICK HERE for sponsorship opportunities. CLICK HERE to learn more and register. 

North Orange County Regional Outlook - Tuesday, February 28
Join the North Orange County Chamber for a gathering of cities that are experiencing a shift in many facets of their communities, from housing and development, to education levels and jobs. The event features a panel of experts and a discussion on these issues and takes place from 7:30 a.m. to 9:00 a.m. at the Embassy Suites in Brea - NOC. CLICK HEREfor more info. 
UPCOMING OCBC COMMITTEE MEETINGS: JANUARY
Latino Educational Attainment 
Friday, January 13, 2017  I  9:00 a.m. to 10:30 a.m. 

Workforce Development 
Wednesday, January 18, 2017  I  7:30 a.m. to 9:00 a.m. 

Cybersecurity Task Force
Wednesday, January 25, 2017  I  8:30 a.m. to 10:00 a.m. 

Committee meetings are open to OCBC members and invited guests only. All committee meetings are held at the OCBC offices unless otherwise specified. For more information on upcoming committee meetings for 2016 check out OCBC's Committees. For more information, contact  Natalie Rubalcava, Vice President, Investor Relations and Business Development. 
GET CONNECTED ONLINE WITH OCBC 
Do you tweet? Have a Facebook page or surf YouTube? Then follow the latest news and information from OCBCsocial media online. Follow us on Twitter. Like our Facebook page. Tune into our YouTube channel. Check out OCBC's blog: Dunn and Done. Or visit our newest website, LocationOC.com.

If you have questions on how to get connected with OCBC online, contact Delaine Moore, Communications Manager, at 949.794.7220 or dmoore@ocbc.org.
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OC's housing shortage affects workforce and economy
OC's housing shortage affects workforce and economy
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