California Business Executives Attitudes Survey 2012

California Business Executives Attitudes Survey 2012 California Foundation for Commerce & Education California Chamber of Commerce March 2012

Methodology • Online survey with 42 questions regarding the current California economic and business climate • Multiple choice options randomized to avoid bias • 699 responses generally reflecting the California business market by size of company, geographic location and industry • Margin of error is ± 3.8% at 95% confidence level. • Third in a series: 2008 and 2011 Quantitative Study questions repeated for trends • New questions added to obtain input on current political and policy issues

2012 California Business Climate 2011 2012 Generally speaking, do you think things in California are going in the right direction, or do you think things have gotten pretty seriously off on the wrong track?

2012 California Business Climate 2011 2012 How would you currently rate California's economy?

2012 California Business ClimateFuture California Economy What is your outlook for California's economy over the next year?

2012 California Business ClimateDoing Business in California Would you say it is easier or harder to do business in California than in other states?

2012 California Business Climate Biggest CHALLENGES to doing business in California What would you say is the single biggest CHALLENGE to doing business in California? And, what would you say is the SECOND biggest challenge to doing business in California?

2012 California Business Climate Biggest ADVANTAGES to doing business in California What would you say is the single biggest ADVANTAGE to doing business in California? And what would you say is the SECOND biggest advantage to doing business in California?

2012 California Business ClimateYour Own Business Outlook What is the outlook for your own business over the next year?

2012 California Business Climate Overall, has your company added or reduced jobs in California over the last year? Does your company plan to add or reduce jobs in California over the next year? * Respondents can check all that apply

2012 California Business ClimateHealth Care Benefits Does your company provide health care as a benefit to your employees? Why does your company not provide health care as a benefit to its employees?

2012 California Business ClimateReasons to provide health care • Second Reason: • 29% - It helps employees stay healthy and productive • 28% - Improved ability to recruit and retain employees • 15% - The benefit is a standard in my industry • 12% - It’s my responsibility as an employer • 11% - No additional reason • 5% - My employees have requested this as part of their compensation • Main Reason: • 42% - Improved ability to recruit and retain employees • 22% - This benefit is the standard in my industry • 18% - It helps employees stay healthy and productive • 16% - It’s my responsibility as an employer • 2% - My employees have requested this as part of their compensation

2012 California Business ClimateHealth Care Costs 2011 2012 Over the past year, have your company’s health care costs increased a lot, increased a little, stayed about the same, or decreased?

2012 California Business ClimateHealth Care Benefits Plans What is the likelihood that your company will make the following changes next year In order to address increasing costs of providing health care to employees?

2012 California Business ClimateAffordable Care Act Now talking about health care policy, what is your impression of the national health care reform law called the “Affordable Care Act” that was passed by Congress in 2010?

2012 California Business ClimateAffordable Care Act The federal Affordable Care Act provides a tax credit for small business employers who provide health insurance for at least half of their employees. Businesses must have 25 or fewer employees with average salaries less than $50,000 to claim this tax credit. Are you aware of this tax credit?

2012 California Business ClimateAffordable Care Act – Tax Credit Impact Begin providing benefits? Employers who currently provide health insurance Employers who currently do NOT provide health insurance If you qualified for a tax credit under the Affordable Care Act, how would it affect whether you decide to provide health benefits in the future – would it make you more likely to provide benefits, would it make you less likely to provide benefits, or would it not affect whether you provide benefits or not in the future?

Elected Officials – State Government Priorities Here is a list of issues that people would like our elected officials in state government to address. Please select the issue you think the elected officials in Sacramento should pay the MOST attention to? And which issue do you think the elected officials in Sacramento should pay the NEXT most attention to?

2012 California Business Climate SurveyCalifornia’s Budget Crisis As you may know, the state is still facing a$9 billion budget deficit out of a total budget of $92 billion. How serious a problem do you think this is?

2012 California Business Climate SurveyCalifornia’s Budget Crisis – Cuts or Taxes? Do you think California state government should deal with the budget deficit through all spending cuts, mostly spending cuts, mostly through tax increases, all tax increases or a mixture of both?

2011 California Business Climate SurveyCalifornia’s Budget Crisis – Balance Budget Options Do you believe California state government could balance the budget without raising taxes or do you believe that raising some taxes may be necessary?

2012 California Business ClimateCalifornia’s Budget Crisis Priorities In dealing with the state budget, which of the following is the highest priority for elected officials in your opinion as a business leader?

2012 California Business Climate California’s Budget Priorities Below is a list of state programs that are at risk of receiving cuts in funding in order to balance the state budget. Please rank each of these programs in descending order with the most important program that you believe should be spared from cuts receiving a one (1) and the least important program receiving a six (6). NOTE: Low score = highest priority to protect from budget cuts

2012 California Business ClimateLegislative Reforms – Strongest Support

2012 California Business ClimateReforms – Least Support Below is a list of some reforms that legislators are considering in order to balance the state budget. For each one of the following reforms, please indicate whether you would strongly support, somewhat support, somewhat oppose or strongly oppose that reform to balance the budget.

2012 California Business ClimatePositive Government Action? Can you name one action that California state government has done In the past year to help make it easier to run your business?

2012 California Business ClimatePositive Government Action Comments • Enterprise Zones Tax Credits (5 mentions) • Worker’s Compensation reform (2 mentions) • “Veto or refusal to increase minimum wage” • Ruled on rest periods • Streamlined some paperwork • Taking action to trim the size of state government

2012 California Business ClimateIdeas for positive government action? Is there any one action that California state government can do To help make it easier to run your business?

2012 California Business ClimateMost requested ideas to assist CA businesses • Reduce/simplify regulations (72) • Conform California regulations to Federal regulations(63) • Reduce business taxes (30) • Reduce Worker’s Comp costs & regulations (27) • Less paperwork & administrative burden (23) • Tort reform to reduce lawsuits against businesses (17) • Balance the state budget (16) • More flexibility in meal & rest breaks (15) • Reduce environmental regulations (14) • Reduce state government bureaucracy (10) • Make California “business friendly” (10) • Stop cuts to social services/Medicare (10) Is there an action California state government can do to help make it easier to run your business? Please briefly describe that action.

California Business Executives Attitudes Survey 2012