How can California balance its progressive tax policies with the need to retain businesses and high-income residents? What specific skills will be valuable in an AI-driven economy?
These and other issues will be discussed during the Business Forecast Conference hosted by the business advocacy group the Valley Industry & Commerce Association (VICA) and its president, Stuart Waldman, on Friday, Oct. 18.
Reynold Hoover, the CEO of LA28, the organizing committee for the 2028 Olympic and Paralympic Games in Los Angeles, is set to speak along with others including William Dolan, the California regional investment director for U.S. Bank Private Wealth Management and Charlie Dougherty, an executive director and senior economist at Wells Fargo Corporate and Investment Banking.
The panels will include discussions on the economy, elections, sports, transportation, and the presence of AI in the workforce.
“We have 39,5 million people living in California and 400,000 less than we had a couple of years ago,” Dolan said in a phone interview.
Reasons for the exodus range from high taxes to a lack of affordable housing and jobs.
“California in general has outgrown or outpaced the greater U.S. economy,” he said, adding that the Golden State still has a higher unemployment rate than the nation. “California is at 5.3 and the national number is at 4.2.”
One of the reasons for the high unemployment rates, he said, is the fact that “a younger population works in hospitality and tourism that tends to have a higher turnover.”
Another factor is the shortage of affordable housing. California has been issuing about 10,000 housing permits per month, and Dolan said “it’s not enough.”
“With the lack of supply of housing we have the lack of sufficient jobs for folks and that’s created this housing shortage and affordability problems coupled with (high) interest rates,” Dolan said.
Still the upcoming 2028 Summer Olympics and 2026 FIFA World Cup, he said, are expected to bring “increased economic activity” to the region.
The interesting thing about the Olympics, he said, is that the city is taking “existing infrastructure and enhancing it.” One example is Metro’s Sepulveda Transit Corridor Project that is planned to connect the San Fernando Valley and Westside.
“It’s designated to help the Olympics but also helps the greater economy long term,” he said.
On Friday, other panels will discuss California’s taxation strategies and explore the balance between revenue generation and economic stimulation.
The panel about elections and taxes will look into what trends define the political climate and how the elections influence the future of the state.
Guests will discuss strategies for creating affordable housing through local and state policy proposals and explore factors shaping the future of housing in California.
Eric Freedman, U.S. Bank’s chief investment officer, said in a phone interview that it was important for California to keep building new housing while “ramping up tourism and having some additional revenue sources.”
The conference will start at 7 a.m. Friday at 555 Universal Hollywood Drive in Universal City.
