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MARCH 2006

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SOUTHERN CALIFORNIA SPOTLIGHT


Infrastructure No. 1 Priority

   The goods movement plan is just one small part of a strategic growth plan unveiled by Gov. Arnold Schwarzenegger in January 2006. As he expressed it, the current infrastructure is designed for 25 million people, not the 37 million currently in the state or the 46 million expected by 2025. He hopes to fund the $220-billon, 10-year plan through leveraging $68 billion in general obligation bonds to attract more cash from the federal government, local entities and private investors.
   A few highlights pertinent to corporate site selectors
and Southern California:
   • Movement of trucks off commuter highways, along with hundreds of millions of dollars invested in HOV lanes on freeways;
   • $280 million in L.A. and the Inland Empire alone to be spent on a transportation management system in order to improve corridor mobility;
   • Construction of new charter schools and advanced classrooms for career technical education;
   • Building on the success of a model state university system by expanding capacity for 600,000 more students;
   • New water supply and storage capacity, including funds for two new supply and flood control reservoirs.

   Among the other priorities Schwarzenegger has identified is an increase in the minimum wage by $1 over the next 18 months. He vetoed a minimum wage increase last year because of what his administration calls a "dangerous autopilot formula that could have jeopardized business growth and hampered job opportunities for workers in the long term."

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