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Schipske Says Long Beach Needs Economic Impact Study on Potential Boeing Loss So that Governor’s Office of Jobs and Business Development Can Assess What Incentives Can Be Offered -- Suggests Costs of Study Be Borne by City, Local Union and LB Chamber of Commerce
Long Beach, CA – November 15, 2013 – After a series of telephone calls and meetings to determine what the City of Long Beach can do to keep The Boeing Company in Long Beach, Fifth District Councilwoman Gerrie Schipske today stated:
“My office staff and I have been in contact with the Governor’s Office of Jobs and Business Development, the Los Angeles County Economic Development Corporation and the leadership of United Aerospace Workers Local 148 about what can be done to keep the Boeing Company here in Long Beach – either with the C-17 program or the ‘wing work’ for the 777x. It is clear that with the announcement that the International Association of Machinists in Puget Sound, Washington rejected a contract deal with Boeing, and the subsequent statement from Boeing CEO, Ray Conner, that the company will open the process competitively and pursue all options for the 777x, that the City of Long Beach needs to step up and make the case why Boeing should remain here.
Governor Brown signed into law last July three pieces of legislation that include hiring credits for companies in areas blighted with the highest jobless rates, a sales tax exemption on tools for manufacturing and research and development equipment and tax incentives for companies that create jobs and pay the highest wages.
The City of Long Beach faces the highest unemployment rate in the State as well as a growing poverty rate amongst adults and young people. The loss of Boeing would mean our second largest employer would be gone which could have catastrophic results on our local economy.
I have been told that in order for Governor Brown’s Office of Jobs and Business Development to determine what if any incentives can be offered to retain Boeing in Long Beach, an ‘Economic Impact Study’ needs to be prepared detailing the exact economic loss Long Beach would suffer should Boeing leave. The Los Angeles County Representative for the Governor’s Office of Jobs and Business Development recommended that such a study be commissioned with the Los Angeles County Economic Development Corporation.
The Los Angeles County Economic Development Corporation (LAEDC), a private, non-profit 501(c)3 organization established in 1981. Its mission is to attract, retain, and grow business and jobs for the regions of Los Angeles County.
The study is estimated to cost $15,000 which could be borne equally by the City of Long Beach, the United Aerospace Workers Local 148 and the Long Beach Chamber of Commerce.
Long Beach needs to fight to keep these jobs here. What we do in this instance sends a strong message to Boeing and any other company that would consider locating here, that the City of Long Beach will stand by them and that we will do what it takes to protect our local economy.
I am submitting a council agenda item requesting that the City fund the ‘Economic Impact Study’ and that the City Manager request the participation of UAW and the Long Beach Chamber of Commerce in this critical effort.”
Councilwoman Gerrie Schipske represents the 5th Council District in which The Boeing Company is located. She has launched a Facebook page where readers can indicate their support for this effort: www.facebook.com/keepboeinginlongbeach
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