Earlier this week, we began an examination of California's stifling business regulations, which many business owners and analysts blame for the stagnant job growth and rising unemployment rate in the state. Businesses have repeatedly asked state lawmakers to address this issue and to do away with or revise some of these limiting regulations, and it appears that legislators and the governor are listening.

In the current legislative session, lawmakers from both sides of the aisle have been working to streamline or cut down the number of state business regulations. However, they have disagreed on the scope of the cuts, which has slowed the process significantly.

There are indications that progress may still be made this year. Republicans have made regulatory relief one of their top priorities as the state legislature works with Governor Jerry Brown to revise the state budget. Democrats are equally focused on job creation, and although they have blocked several efforts made by Republicans to address and change specific state regulations, it appears that they may now be focused on reducing regulations in order to encourage job growth.

Lieutenant Governor Gavin Newsom, who is a Democrat, is working on a reformatory business bill, which will reportedly aim to encourage job growth through state economic policies. "It's a non-partisan issue, job creation," he said. "I feel like the time is right and the politics are changing."

Business owners are joining the fight, too, by pledging to support the governor's budget proposal if he, in return, pledges to improve the state's business climate by lowering business taxes and reducing regulations. Even labor unions are on board with streamlining regulations, too, as a reduced job force hurts their bottom line as well.

Whatever the outcome, it is promising that state lawmakers are willing to work together to achieve change in the state. We will keep you posted with any developments.

Source: Tahoe Daily News, "Businesses, GOP demand Calif. regulatory relief," Adam Weintraub, 30 May 2011