So far, the highlights of the show have been new HCD Branch Chief John Nun. He roused the crowd yesterday with his opening remarks focused on making the EZ program more transparent and efficient. He informed the audience that his job duties are focused exclusively on the EZ program. He has increased his staff by two members. Each staff member will be assigned to a number of zones that they will be responsible for and in fact intend to visit. John’s on hand’s approach was widely welcomed and highly praised by the audience and by CAEZ President Craig Johnson who gave his own rousing rally-the-troops speech this morning. The theme of these two speakers was the word “unprecedented” which Johnson had the audience recite with him. From lobbying, to public relations to statutory review and close collaboration with HCD, the CAEZ is taking shape and taking charge like never before. Yolanda Benson and Toni Symonds gave insightful presentations regarding current legislation, including AB 1139 and the schedule for the next few months. The legislative discussion seemed to come full circle to Johnson’s message that the audience get involved and continue to the wave of activism that is taking the EZ program to a whole new level.

Although payroll job losses slowed significantly, the state unemployment rate continued to climb in August, rising three-tenths to 12.2 percent, its highest level since 1940’s record 14.7 percent. From a survey of 5500 households, the state Employment Development Dept reported that 14 California counties now have jobless rates of 15 percent or more, and nearly 30 percent of the state’s unemployed workers have been jobless for over six months. However, EDD’s employer payroll survey showed substantial improvement, with 12,300 jobs lost in August, compared to 38,900 in July and an average of 73,700 for the previous six months. California’s trade, transportation & utilities sector and the construction industry suffered the biggest declines last month, down 7100 and 7000 jobs respectively, followed by manufacturing (-2800). Educational and health services added 6000 positions, along with information (3400) and government (2000).

The Business Forecasting Center at the University of the Pacific predicts that California’s unemployment rate will remain above 12 percent for all of 2010, peaking at 12.6 percent next spring. A return to the state’s pre-recession unemployment levels (under 6 percent) may not happen before 2013. UCLA’s Anderson Forecast is slightly more optimistic, projecting a peak of 12.2 percent and double-digit unemployment until sometime in 2011.

The Recession’s Uncounted Casualties

They’re not a factor in the unemployment rate, but they are either out of work or stymied by the recession into working fewer hours than they’d like, often at reduced wages. The Bureau of Labor Statistics reports that California’s underemployment rate – a broader index which includes unemployed people as well as people forced to take part-time or odd jobs, and those who have quit job hunting out of discouragement – is currently at 18.5 percent, up from 11.7 percent one year ago. An estimated 1.7 million Californians are working part time because full-time positions aren’t available, and about 34,000 would-be workers have grown too discouraged to continue job hunting.

California’s Enterprise Zones need to be expanded to create job incentives.

The California State Board of Equalization (BOE) today began sending letters to 5,188 retailers in 6 different zip codes notifying them of upcoming visits by BOE specialists. The affected zip codes receiving letters this month are: San Jose (95128, 95129, 95130, and 95131); Garden Grove (92840); and Temecula (92592).

The BOE specialists will be canvassing the areas to ensure that businesses are properly registered and paying taxes. The new enhanced compliance effort began in September 2008, with 130 zip codes already notified. Specialists have visited more than 74,000 businesses statewide.

These visits are part of the Statewide Compliance and Outreach Program (SCOP). The goal of these visits by the BOE specialists is to ensure all businesses are properly registered so there is no unfair business advantage over those businesses that are properly registered and reporting their taxes and/or fees. A recent two-year pilot estimated that more than three percent of businesses operating in California do so without the appropriate permits or licenses that allow for collection of sales and use tax, as well as other taxes and fees. Non-compliance is a part of the more than $2 billion sales and use tax gap. The tax gap is the difference between the amount of taxes owed and the amount paid.

The BOE specialists will conduct checks for seller’s permits of all storefronts and other known business locations.  When the specialists visit, business owners will be asked business-related questions and not be asked for personal financial information. If an owner has questions about the inquiries from the specialists, they should call their regional SCOP team contact or the Taxpayer Information Call Center at 800-400-7115.

There are seven teams of approximately eight people each located throughout the state that began their door-to-door visits based on zip code. Registered retailers will be checked for appropriate permits and licenses, as well as service industry businesses, especially if the particular service industry also sells taxable retail items. Those businesses found to be out of compliance will be given instructions on how to register with the BOE and given information about other necessary licenses. For more information on the Statewide Compliance and Outreach Program, click here.