Motion is First Step Toward Economic Impact Analysis for City Legislation

The Los Angeles City Council is considering establishing mandatory studies on how new laws affect the regional economy. Conducting an economic impact analysis would go a long way towards improving the city’s business climate, City Council President Eric Garcetti said. “An analysis of legislation’s economic impact would be an invaluable tool in our legislative decision-making process, helping us decide how to allocate scarce resources so that they have the biggest positive impact on our local economy,” he said. Garcetti introduced a motion directing the chief legislative analyst and city administrative officer to develop a proposed process for conducting economic impact analyses. The motion is expected to be heard in committee the week of Nov. 16. The Los Angeles County Business Federation was supportive of the motion as a first step towards the creation of an independent office of economic analysis. “We at BizFed, and the broad business coalition are very supportive of looking into an Office of Economic Analysis, it’s absolutely critical, but the make or break part of this is its independence. The office must be independent of any political persuasion,” said CEO Tracy Rafter. In Los Angeles there is currently no established protocol for objectively reviewing the local legislations’ impact on job creation, business retention and attraction of private sector investment. “The fact is that laws are passed every day in this city without any idea of what impact it’s going to have in this economy and the creation of this office will go a long way towards helping us stop bad laws,” said Stuart Waldman, president of the Valley Industry & Commerce Association. The office of economic analysis should be set up in much the same way that it was in San Francisco, according to Waldman and Rafter. As the chief legislative analyst looks into developing a proposal and explores its feasibility and location, it’s very important that the city considers housing the office at the City Controllers office, a model that has proven successful in San Francisco, said Rafter. “Exhaustively considering where it will have its most independence is critical,” she said.