In April 2010, the Valley Industry and Commerce Association (VICA) used this space to praise the City of Los Angeles for taking steps to establish an Office of Economic Analysis. Consider this column VICA’s official retraction of that commendation. At the time, a motion (introduced by Council President Eric Garcetti) was before the City Council to determine how the new office would be created. The business community had reason to applaud the city again, July 2011, when the Office of Economic Analysis was made official and fully-funded by Garcetti’s office. Business leaders understand better than anyone the necessity of determining the extended fiscal impact of a public policy decision. Laws can have unintended, yet severe, economic consequences. Elected leaders should know the potential damage a choice could cause to job creation and business development. Many governments do strive to understand the broader economic ramifications of a bill during the decision-making process. The State of California subjects every piece of legislation (about 4,000 each year) to an economic examination. The idea for L.A.’s Office of Economic Analysis was modeled after a similar office in the City/County of San Francisco. The Los Angeles Office of Economic Analysis indeed exists; however, it is used as often as a snow chains in the San Fernando Valley. In fact, the Office of Economic Analysis has yet to evaluate the economic impact of a single piece of city legislation. This begs the question why the city would let this office go unused. Is there a lack of ordinances to be reviewed? That certainly is not the case. Every city ordinance would benefit from an economic impact assessment — the same scrutiny all state bills receive. There is no shortage of city ordinances that should undergo thorough economic analysis. The Revised Sign and Private Waste Hauling System ordinances are two prime examples. Economic concerns have been raised about both proposals, yet they have not been referred for analysis. The sign ordinance would drastically change the way advertisements and on-site signage is regulated. This has an effect on how businesses can promote their services and even attract customers to their location. Despite these obvious economic implications, the ordinance has not been analyzed. The city also intends to make significant modifications to its private waste hauling system. This ordinance serves as a notification that this process has begun and the result will have a sweeping impact on the way waste removal permits are determined. It could even put smaller haulers out of business. It is vital to know the economic consequences of this change, but we are still waiting for the Office of Economic Analysis to review the proposal. When the Office of Economic Analysis was first created, VICA lauded the city for finally taking a proactive approach toward matters affecting business in the city. Unfortunately, we again find ourselves pointing out what city officials should be doing to support the economic engines of the community. The purpose is to prevent the city from passing ordinances that hurt business and inhibit economic growth. A group of 13 research firms have already signed on to evaluate the affect of city ordinances on businesses, citizens, job-creation and other economic indicators. They are just waiting for the city to give them something to examine. Business owners do extensive research, gathering all pertinent information before making important business decisions. We should expect the same from our elected officials. City officials have the resources available — a funded Office of Economic Analysis — that needs to be put to use. What ordinances do you think should be considered by the Office of Economic Analysis? Will L.A. officials ever follow through on ideas to make the city friendlier to business? Email your responses or thoughts about the column to [email protected].