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"content": "\u003cp>The city of \u003ca href=\"http://www.ci.tracy.ca.us/\" target=\"_blank\" rel=\"noopener noreferrer\">Tracy\u003c/a> sits on the edge of the Central Valley, where Interstate 580 meets I-5.\u003c/p>\n\u003cp>And like a lot of towns in this region, it’s been welcoming the warehousing industry and the jobs that have come with it.\u003c/p>\n\u003cp>Safeway, Restoration Hardware and lots more big retailers have warehouses in Tracy. But in the age of rapid automation, how long will these jobs last?\u003c/p>\n\u003cp>[contextly_sidebar id=”jJBhsILOb4IGQP5g1e1yGVbQaEASqxx3″]\u003c/p>\n\u003cp>Amazon’s fulfillment center in Tracy offers a case study of the effects that robots will have on the future of jobs. While big retailers like Walmart and Target continue to rely mostly on human labor to fulfill customer orders, \u003ca href=\"https://www.bloomberg.com/news/articles/2016-06-29/how-amazon-triggered-a-robot-arms-race\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon has deployed an army\u003c/a> of robots to help with the task in Tracy.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The Amazon facility in Tracy is huge at about 1 million square feet. And the best way to describe the experience inside? It’s like walking through a ginormous machine.\u003c/p>\n\u003cp>For one thing, it’s really loud.\u003c/p>\n\u003cp>“It’s the conveyance,” said Ashley Robinson, an Amazon spokeswoman. I could barely hear her above the noise. What she calls conveyance, most people know as conveyor belts.\u003c/p>\n\u003cp>“We’ve got miles of conveyance here in this facility,” Robinson said.\u003c/p>\n\u003cfigure id=\"attachment_11495468\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-11495468\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/06/DC_1-1020x574.jpg\" alt=\"\" width=\"640\" height=\"360\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-1020x574.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-1180x664.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-960x540.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-240x135.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-375x211.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-520x293.jpg 520w\" sizes=\"(max-width: 640px) 100vw, 640px\">\u003cfigcaption class=\"wp-caption-text\">What is the future of jobs at warehouses like Amazon’s? \u003ccite>(Erasmo Martinez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Three stories of conveyor belts move an endless stream of yellow plastic boxes carrying customers’ stuff.\u003c/p>\n\u003cp>“They’re heading toward the pack stations, where they’ll be packed, a label supplied and sent out to the loading dock,” Robinson said.\u003c/p>\n\u003cp>At a lot of warehouses, moving things is mostly a human job, but here it’s mostly been automated. And while conveyor belts are an old technology, Robinson said, “It’s all part of the symphony of Amazon fulfillment.”\u003c/p>\n\u003cp>The conductor of that symphony? A computer. It keeps track of everything that comes in and out of the warehouse. Then it conducts the conveyor belts, humans and robots to get you, the consumer, that stuff as quickly as possible.\u003c/p>\n\u003cp>Amazon’s robots are hard at work on the fourth floor of the warehouse, caged behind a black chain-link fence. These robots don’t have arms or faces. Instead, they look like giant orange hockey pucks.\u003c/p>\n\u003cp>The robot’s job? To fetch the stuff customers order online.\u003c/p>\n\u003cp>To do this, they glide around the warehouse and through a labyrinth of thousands of portable storage units. The shelves on those units are crammed with a random assortment of items: books, paper towels, board games.\u003c/p>\n\u003cp>“I’m seeing some bottles of vitamins — it looks like there’s some ink cartridges for printers,” Robinson said. “I’m seeing a zombie bobblehead toy up there.”\u003c/p>\n\u003cp>When the robot finds its storage unit, it glides underneath and lifts it up. Then it delivers it to a human worker who is called a picker.\u003c/p>\n\u003cp>On the day I was there, a computer told the picker to grab what looked like a fantasy board game. It was on its side and jammed up against the shelf. The picker found it, scanned it and placed it on the conveyor belt.\u003c/p>\n\u003cp>The robot took the shelf away and up rolled another shelf with another customer’s order.\u003c/p>\n\u003cp>“So in a traditional fulfillment center where the associate would walk to the different items within a library of inventory, it can take hours to fulfill the customer order,” Robinson explained. “With the robotics it can take minutes.”\u003c/p>\n\u003cp>A job that takes hours now takes minutes and fewer humans. It’s happened with every industrial revolution, and some people say we’re entering another one right now.\u003c/p>\n\u003cp>\u003ca href=\"https://www.sri.com/about/people/karen-myers\" target=\"_blank\" rel=\"noopener noreferrer\">Karen Myers\u003c/a> is a scientist at \u003ca href=\"https://www.sri.com/\" target=\"_blank\" rel=\"noopener noreferrer\">SRI\u003c/a>, one of Silicon Valley’s oldest research centers. I asked her: What we can expect from this next big shift?\u003c/p>\n\u003cp>“It’s definitely going to take away a lot of jobs,” Myers said.\u003c/p>\n\u003cp>At the same time, she says, we’re running up against the limits of technology, too. Take the picker at the Amazon fulfillment center. Myers said those skills are proving to be uniquely human.\u003c/p>\n\u003cp>“So in computer science there’s a problem called the ‘bin packing problem,’ ” Myers said.\u003c/p>\n\u003cp>It’s like it sounds: How do you program a robot to recognize a bunch of random objects and then pick up and stow them in a container?\u003c/p>\n\u003cp>“Our fingers are incredibly dexterous and the current generation of robotic manipulators. They’re getting much, much better,” Myers said. “But they’re just not quite there yet.”\u003c/p>\n\u003cp>And Myers said artificial intelligence, or the robot’s brain, isn’t up to the task. While artificial intelligence has made amazing advances in recognizing objects, it will take a while before its vision equals humans in the workplace.\u003c/p>\n\u003cp>For example, remember that board game the Amazon picker was looking for? It was on its side and crammed into the shelf. The picker could barely see the box but she could still tell it was a board game. Myers says robots can’t do that.\u003c/p>\n\u003cp>And then there’s the human touch. Myers says robots are great at picking up similar items over and over again. But Amazon’s business is to sell every random thing a consumer might want and that poses challenges.\u003c/p>\n\u003cp>“If you’re going to pick up a box of Kleenex, it’s pretty light. But if you’re trying to pick up a car battery, that’s going to be really heavy,” Myers said. “And how does a robot know that china is fragile but board games aren’t?”\u003c/p>\n\u003cp>Myers says it will be a long time before a robot has the kind of common sense that humans rely on for these tasks.\u003c/p>\n\u003cp>“So one of the things we’ve learned is that automation is really good for some things, and humans are good for some things,” Myers said.\u003c/p>\n\u003cp>Instead of human or machine, technologists believe that we will work more side by side.\u003c/p>\n\u003cp>“And oftentimes by having a collaborative man-machine type setting, you can get more than just one in isolation,” Myers said.\u003c/p>\n\u003cp>A recent study by \u003ca href=\"https://qz.com/941163/pwc-study-automation-risk-is-higher-for-american-jobs-than-for-workers-in-germany-the-uk-and-japan/\" target=\"_blank\" rel=\"noopener noreferrer\">PricewaterhouseCoopers predicted\u003c/a> that by 2030, 38 percent of jobs in the U.S. might be taken by automation. In past industrial revolutions, jobs were destroyed but new ones replaced them. Or technology helped industries grow and create jobs.\u003c/p>\n\u003cp>It’s too early to tell how this industrial revolution is going to play out in the warehousing industry.\u003c/p>\n\u003cp>Critics say Amazon’s technology is destroying jobs, especially in retail, but the data on that are not clear. Robinson, of Amazon, said what is clear is that \u003ca href=\"http://www.fresnobee.com/news/local/article153979624.html\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon continues to grow\u003c/a>.\u003c/p>\n\u003cp>“I can say that here in our own facility, when we opened it, we thought 1,000 people would be working in this facility,” Robinson said. “Today it’s over 3,000 employees.”\u003c/p>\n\u003cp>Robinson said robots working with humans enabled the Tracy center to fulfill more customer orders faster. That’s attracted more customers and the need for more human workers.\u003c/p>\n\u003cp>At least for now.\u003c/p>\n\u003cp>Despite the robots, \u003ca href=\"http://www.seattletimes.com/business/amazon/amazon-on-pace-to-boast-fortune-500s-second-largest-workforce/\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon is becoming one of the largest employers in the U.S.\u003c/a>, driven largely by the growth in its fulfillment centers.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>[AmazonFulfillmentCenterMap]\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The city of \u003ca href=\"http://www.ci.tracy.ca.us/\" target=\"_blank\" rel=\"noopener noreferrer\">Tracy\u003c/a> sits on the edge of the Central Valley, where Interstate 580 meets I-5.\u003c/p>\n\u003cp>And like a lot of towns in this region, it’s been welcoming the warehousing industry and the jobs that have come with it.\u003c/p>\n\u003cp>Safeway, Restoration Hardware and lots more big retailers have warehouses in Tracy. But in the age of rapid automation, how long will these jobs last?\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Amazon’s fulfillment center in Tracy offers a case study of the effects that robots will have on the future of jobs. While big retailers like Walmart and Target continue to rely mostly on human labor to fulfill customer orders, \u003ca href=\"https://www.bloomberg.com/news/articles/2016-06-29/how-amazon-triggered-a-robot-arms-race\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon has deployed an army\u003c/a> of robots to help with the task in Tracy.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The Amazon facility in Tracy is huge at about 1 million square feet. And the best way to describe the experience inside? It’s like walking through a ginormous machine.\u003c/p>\n\u003cp>For one thing, it’s really loud.\u003c/p>\n\u003cp>“It’s the conveyance,” said Ashley Robinson, an Amazon spokeswoman. I could barely hear her above the noise. What she calls conveyance, most people know as conveyor belts.\u003c/p>\n\u003cp>“We’ve got miles of conveyance here in this facility,” Robinson said.\u003c/p>\n\u003cfigure id=\"attachment_11495468\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-11495468\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/06/DC_1-1020x574.jpg\" alt=\"\" width=\"640\" height=\"360\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-1020x574.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-1180x664.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-960x540.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-240x135.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-375x211.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/06/DC_1-520x293.jpg 520w\" sizes=\"(max-width: 640px) 100vw, 640px\">\u003cfigcaption class=\"wp-caption-text\">What is the future of jobs at warehouses like Amazon’s? \u003ccite>(Erasmo Martinez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Three stories of conveyor belts move an endless stream of yellow plastic boxes carrying customers’ stuff.\u003c/p>\n\u003cp>“They’re heading toward the pack stations, where they’ll be packed, a label supplied and sent out to the loading dock,” Robinson said.\u003c/p>\n\u003cp>At a lot of warehouses, moving things is mostly a human job, but here it’s mostly been automated. And while conveyor belts are an old technology, Robinson said, “It’s all part of the symphony of Amazon fulfillment.”\u003c/p>\n\u003cp>The conductor of that symphony? A computer. It keeps track of everything that comes in and out of the warehouse. Then it conducts the conveyor belts, humans and robots to get you, the consumer, that stuff as quickly as possible.\u003c/p>\n\u003cp>Amazon’s robots are hard at work on the fourth floor of the warehouse, caged behind a black chain-link fence. These robots don’t have arms or faces. Instead, they look like giant orange hockey pucks.\u003c/p>\n\u003cp>The robot’s job? To fetch the stuff customers order online.\u003c/p>\n\u003cp>To do this, they glide around the warehouse and through a labyrinth of thousands of portable storage units. The shelves on those units are crammed with a random assortment of items: books, paper towels, board games.\u003c/p>\n\u003cp>“I’m seeing some bottles of vitamins — it looks like there’s some ink cartridges for printers,” Robinson said. “I’m seeing a zombie bobblehead toy up there.”\u003c/p>\n\u003cp>When the robot finds its storage unit, it glides underneath and lifts it up. Then it delivers it to a human worker who is called a picker.\u003c/p>\n\u003cp>On the day I was there, a computer told the picker to grab what looked like a fantasy board game. It was on its side and jammed up against the shelf. The picker found it, scanned it and placed it on the conveyor belt.\u003c/p>\n\u003cp>The robot took the shelf away and up rolled another shelf with another customer’s order.\u003c/p>\n\u003cp>“So in a traditional fulfillment center where the associate would walk to the different items within a library of inventory, it can take hours to fulfill the customer order,” Robinson explained. “With the robotics it can take minutes.”\u003c/p>\n\u003cp>A job that takes hours now takes minutes and fewer humans. It’s happened with every industrial revolution, and some people say we’re entering another one right now.\u003c/p>\n\u003cp>\u003ca href=\"https://www.sri.com/about/people/karen-myers\" target=\"_blank\" rel=\"noopener noreferrer\">Karen Myers\u003c/a> is a scientist at \u003ca href=\"https://www.sri.com/\" target=\"_blank\" rel=\"noopener noreferrer\">SRI\u003c/a>, one of Silicon Valley’s oldest research centers. I asked her: What we can expect from this next big shift?\u003c/p>\n\u003cp>“It’s definitely going to take away a lot of jobs,” Myers said.\u003c/p>\n\u003cp>At the same time, she says, we’re running up against the limits of technology, too. Take the picker at the Amazon fulfillment center. Myers said those skills are proving to be uniquely human.\u003c/p>\n\u003cp>“So in computer science there’s a problem called the ‘bin packing problem,’ ” Myers said.\u003c/p>\n\u003cp>It’s like it sounds: How do you program a robot to recognize a bunch of random objects and then pick up and stow them in a container?\u003c/p>\n\u003cp>“Our fingers are incredibly dexterous and the current generation of robotic manipulators. They’re getting much, much better,” Myers said. “But they’re just not quite there yet.”\u003c/p>\n\u003cp>And Myers said artificial intelligence, or the robot’s brain, isn’t up to the task. While artificial intelligence has made amazing advances in recognizing objects, it will take a while before its vision equals humans in the workplace.\u003c/p>\n\u003cp>For example, remember that board game the Amazon picker was looking for? It was on its side and crammed into the shelf. The picker could barely see the box but she could still tell it was a board game. Myers says robots can’t do that.\u003c/p>\n\u003cp>And then there’s the human touch. Myers says robots are great at picking up similar items over and over again. But Amazon’s business is to sell every random thing a consumer might want and that poses challenges.\u003c/p>\n\u003cp>“If you’re going to pick up a box of Kleenex, it’s pretty light. But if you’re trying to pick up a car battery, that’s going to be really heavy,” Myers said. “And how does a robot know that china is fragile but board games aren’t?”\u003c/p>\n\u003cp>Myers says it will be a long time before a robot has the kind of common sense that humans rely on for these tasks.\u003c/p>\n\u003cp>“So one of the things we’ve learned is that automation is really good for some things, and humans are good for some things,” Myers said.\u003c/p>\n\u003cp>Instead of human or machine, technologists believe that we will work more side by side.\u003c/p>\n\u003cp>“And oftentimes by having a collaborative man-machine type setting, you can get more than just one in isolation,” Myers said.\u003c/p>\n\u003cp>A recent study by \u003ca href=\"https://qz.com/941163/pwc-study-automation-risk-is-higher-for-american-jobs-than-for-workers-in-germany-the-uk-and-japan/\" target=\"_blank\" rel=\"noopener noreferrer\">PricewaterhouseCoopers predicted\u003c/a> that by 2030, 38 percent of jobs in the U.S. might be taken by automation. In past industrial revolutions, jobs were destroyed but new ones replaced them. Or technology helped industries grow and create jobs.\u003c/p>\n\u003cp>It’s too early to tell how this industrial revolution is going to play out in the warehousing industry.\u003c/p>\n\u003cp>Critics say Amazon’s technology is destroying jobs, especially in retail, but the data on that are not clear. Robinson, of Amazon, said what is clear is that \u003ca href=\"http://www.fresnobee.com/news/local/article153979624.html\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon continues to grow\u003c/a>.\u003c/p>\n\u003cp>“I can say that here in our own facility, when we opened it, we thought 1,000 people would be working in this facility,” Robinson said. “Today it’s over 3,000 employees.”\u003c/p>\n\u003cp>Robinson said robots working with humans enabled the Tracy center to fulfill more customer orders faster. That’s attracted more customers and the need for more human workers.\u003c/p>\n\u003cp>At least for now.\u003c/p>\n\u003cp>Despite the robots, \u003ca href=\"http://www.seattletimes.com/business/amazon/amazon-on-pace-to-boast-fortune-500s-second-largest-workforce/\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon is becoming one of the largest employers in the U.S.\u003c/a>, driven largely by the growth in its fulfillment centers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Uber fired 20 employees for reasons ranging from sexual harassment to bullying to discrimination. The mass-firing came after an \u003ca href=\"https://ww2.kqed.org/news/2017/06/06/uber-fires-20-employees-after-investigation-of-harassment-and-bias-claims/\" target=\"_blank\">extensive investigation that looked into 215 complaints\u003c/a>. Scores of additional employees are in counseling or training as more investigations proceed.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"content": "\u003cp>Gov. Jerry Brown called President Trump's decision to withdraw the U.S. from the Paris climate accord an \"insane move\" and said \"California will resist because his effort is misguided.\"\u003c/p>\n\u003cp>Trump announced on Thursday that he was pulling the U.S. out of the historic international agreement that set global goals for cutting greenhouse gas emissions. He cited job losses and a lack of fairness in the Paris deal as key reasons to exit and try to re-enter the accord on different terms.\u003c/p>\n\u003cp>“This agreement is less about the climate and more about other countries gaining a financial advantage over the United States,” Trump said in a speech from the White House.\u003c/p>\n\u003cp>The reaction was swift from California's leadership, which has \u003ca href=\"https://ww2.kqed.org/news/2017/05/31/california-lawmakers-move-towards-new-renewable-energy-goals/\">a tendency\u003c/a> to act in direct contrast -- and even\u003ca href=\"https://ww2.kqed.org/science/2016/12/12/if-trump-wont-can-california-sign-the-international-climate-treaty/\"> independence from \u003c/a>-- the Trump administration on federal matters.\u003c/p>\n\u003cp>“He’s wrong on the facts. California’s economy and America’s economy are boosted by following the Paris agreement,” Brown said in a call to reporters with U.S. and global experts on climate change. “Trump is wrong when he says this is bad for jobs. It’s good for jobs -- the jobs of the future.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Addressing Trump's arguments directly, Brown said in an interview with PBS Newshour's Judy Woodruff that job growth and climate action are not mutually exclusive. He told Woodruff that California has created 2.4 million jobs since the recession, thanks in part to efforts to protect the environment.\u003c/p>\n\u003cp>\"It's consistent and in fact I'd say driven by the clean tech investments and the climate action strategies that we've embarked upon,\" he said.[contextly_sidebar id=\"M0AIY4FPznYPTduYxZRzGXs8Vy56jg87\"]\u003c/p>\n\u003cp>Brown and two other governors -- Andrew Cuomo of New York and Jay Inslee of Washington -- announced that they were forming the United States Climate Alliance, a coalition that will convene U.S. states committed to upholding the Paris Climate Agreement and taking aggressive action on climate change.\u003c/p>\n\u003cp>\"The world is not waiting for Donald Trump,\" Brown told Woodruff. \"He has given a body blow to the cause of environmental sustainability. But we'll take it, we'll respond, we're on the field of battle and we're gonna overcome. That I can promise you.\"\u003c/p>\n\u003cp>The three states, which represent over one-fifth of U.S. gross domestic product, are committed to achieving the U.S. goal of reducing emissions 26-28 percent from 2005 levels and meeting or exceeding the targets of the federal Clean Power Plan, they said in a statement.\u003c/p>\n\u003cp>“California will resist because his effort is misguided. I would even say this is an insane move,\" Brown said on the call with reporters. \"The world depends on a sustainable future.\"\u003c/p>\n\u003cp>Brown said he was headed to China on Friday to continue work on the climate change fight, meeting with 175 partners from around the world.\u003c/p>\n\u003cp>\"This group is completely committed to meeting the Paris agreement. We are committed and even going further,\" he said. \"Trump is AWOL but \u003ca href=\"https://ww2.kqed.org/science/2017/06/01/what-will-happen-to-california-after-trumps-exit-from-paris-accord/\" target=\"_blank\" rel=\"noopener noreferrer\">California is on the field, ready for battle\u003c/a>.\"\u003c/p>\n\u003cp>\u003cstrong>Here are more reactions from California lawmakers:\u003cbr>\n\u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>Attorney General Xavier Becerra\u003cbr>\n\u003c/strong>\u003cspan class=\"message_body\">\"For California, there’s no retreat in the fight against pollution. Today, we’re more committed than ever to protecting our people, our planet, and our economy from all threats … including all the hot air that’s blowing in from Washington, D.C. \u003c/span>\u003cspan class=\"message_body\">Our state intends to move forward on protecting our air and our climate regardless of what the federal government does or does not do. We will defend all of our laws, including California’s vehicle emissions standards, anywhere they are challenged. \u003c/span>\u003cspan class=\"message_body\">We won’t allow President Trump to ignore the law, or the public outcry, or the very real threat of climate change. I won’t hesitate to protect those we serve. And if that means lawsuits, I am ready. If that means battling out in the court of public opinion, I’m ready for that, too.\u003c/span>\"\u003c/p>\n\u003cp>\u003cstrong>Sen. Dianne Feinstein\u003c/strong>\u003cbr>\n“If the White House won’t lead, California will step up. We will continue our fight against climate change.”\u003c/p>\n\u003cp>\u003cstrong>Sen. Kamala Harris\u003c/strong>\u003cbr>\n“Pulling out of the Paris Agreement is an irrational decision that is a disastrous step backward, threatens the future viability of our planet for future generations, and abdicates our role of leadership.”\u003c/p>\n\u003cp>\u003cstrong>Rep. Jared Huffman (D-San Rafael, District 2)\u003cbr>\n\u003c/strong>\"TY @JerryBrownGov for your climate leadership! If the Trump’s admin won’t lead, our states must #defendclimate\"\u003c/p>\n\u003cp>\u003cstrong>House Rep. Tom McClintock (R-Elk Grove, District 4)\u003c/strong>\u003cbr>\n\"THANK YOU @POTUS for protecting America's working families from the folly of #ParisAgreement. American prosperity comes first!\"\u003c/p>\n\u003cp>\u003cstrong>Rep. Nancy Pelosi, House Minority Leader (D-San Francisco, District 12)\u003c/strong>\u003cbr>\n“By walking away from this pact, President Trump is abandoning America’s leadership position in the fight against the climate crisis and is sending a strong message to the rest of the world to create, design and manufacture clean energy solutions and create jobs elsewhere. If President Trump wants nations like China and India to take stronger and swifter action on climate, then he should do so through the accountability and enforcement provisions in the Paris Agreement, not by breaking our word and storming out of the room.\"\u003c/p>\n\u003cp>\u003cstrong>House Rep. Kevin McCarthy (R-Bakersfield, District 23), Majority Leader\u003c/strong>\u003cbr>\n\".@POTUS made the right call in leaving a deal that would have put an unnecessary burden on the United States.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cstrong>Rep. Scott Peters (D-La Jolla, District 52)\u003c/strong>\u003cbr>\n“Exiting the Paris Agreement is bad for the planet and for American standing, leverage, and jobs. It is morally wrong and monumentally stupid.\"\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Addressing Trump's arguments directly, Brown said in an interview with PBS Newshour's Judy Woodruff that job growth and climate action are not mutually exclusive. He told Woodruff that California has created 2.4 million jobs since the recession, thanks in part to efforts to protect the environment.\u003c/p>\n\u003cp>\"It's consistent and in fact I'd say driven by the clean tech investments and the climate action strategies that we've embarked upon,\" he said.\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Brown and two other governors -- Andrew Cuomo of New York and Jay Inslee of Washington -- announced that they were forming the United States Climate Alliance, a coalition that will convene U.S. states committed to upholding the Paris Climate Agreement and taking aggressive action on climate change.\u003c/p>\n\u003cp>\"The world is not waiting for Donald Trump,\" Brown told Woodruff. \"He has given a body blow to the cause of environmental sustainability. But we'll take it, we'll respond, we're on the field of battle and we're gonna overcome. That I can promise you.\"\u003c/p>\n\u003cp>The three states, which represent over one-fifth of U.S. gross domestic product, are committed to achieving the U.S. goal of reducing emissions 26-28 percent from 2005 levels and meeting or exceeding the targets of the federal Clean Power Plan, they said in a statement.\u003c/p>\n\u003cp>“California will resist because his effort is misguided. I would even say this is an insane move,\" Brown said on the call with reporters. \"The world depends on a sustainable future.\"\u003c/p>\n\u003cp>Brown said he was headed to China on Friday to continue work on the climate change fight, meeting with 175 partners from around the world.\u003c/p>\n\u003cp>\"This group is completely committed to meeting the Paris agreement. We are committed and even going further,\" he said. \"Trump is AWOL but \u003ca href=\"https://ww2.kqed.org/science/2017/06/01/what-will-happen-to-california-after-trumps-exit-from-paris-accord/\" target=\"_blank\" rel=\"noopener noreferrer\">California is on the field, ready for battle\u003c/a>.\"\u003c/p>\n\u003cp>\u003cstrong>Here are more reactions from California lawmakers:\u003cbr>\n\u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>Attorney General Xavier Becerra\u003cbr>\n\u003c/strong>\u003cspan class=\"message_body\">\"For California, there’s no retreat in the fight against pollution. Today, we’re more committed than ever to protecting our people, our planet, and our economy from all threats … including all the hot air that’s blowing in from Washington, D.C. \u003c/span>\u003cspan class=\"message_body\">Our state intends to move forward on protecting our air and our climate regardless of what the federal government does or does not do. 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Jared Huffman (D-San Rafael, District 2)\u003cbr>\n\u003c/strong>\"TY @JerryBrownGov for your climate leadership! If the Trump’s admin won’t lead, our states must #defendclimate\"\u003c/p>\n\u003cp>\u003cstrong>House Rep. Tom McClintock (R-Elk Grove, District 4)\u003c/strong>\u003cbr>\n\"THANK YOU @POTUS for protecting America's working families from the folly of #ParisAgreement. American prosperity comes first!\"\u003c/p>\n\u003cp>\u003cstrong>Rep. Nancy Pelosi, House Minority Leader (D-San Francisco, District 12)\u003c/strong>\u003cbr>\n“By walking away from this pact, President Trump is abandoning America’s leadership position in the fight against the climate crisis and is sending a strong message to the rest of the world to create, design and manufacture clean energy solutions and create jobs elsewhere. 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"content": "\u003cp>A proposal to expand the state's parental leave protections to small-business employees passed the state Senate, despite Gov. Jerry Brown's opposition to a very similar measure last year.\u003c/p>\n\u003cp>\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB63\">SB 63\u003c/a>, from Sen. Hannah-Beth Jackson (D-Santa Barbara) advanced to the Assembly Tuesday on a party-line vote, with all 13 Senate Republicans voting against the measure.\u003c/p>\n\u003cp>\"Two-point-seven million more Californians will benefit from this measure,\" said Jackson. \"Family lives have changed dramatically in recent decades, but our policies have remained frozen in time.”\u003c/p>\n\u003cp>The legislation would mandate that businesses with between 20 and 50 employees give their workers 12 weeks to spend with a new child, and guarantee their employment when they return. Currently, those protections are required only of businesses with more than 50 employees. The bill does not require the leave to be paid.\u003c/p>\n\u003cp>SB 63 was viewed as important by a pair of powerful Capitol constituencies. Its passage was a top priority for the \u003ca href=\"http://womenscaucus.legislature.ca.gov/news/2017-04-04-legislative-womens-caucus-hails-priority-bills-stronger-california-implore-governor\">Legislative Women's Caucus\u003c/a>, while the California Chamber of Commerce lobbied for its defeat, labeling it a \u003ca href=\"http://advocacy.calchamber.com/policy/bill-tracking/job-killers/2017-job-killers/\">\"job killer.\"\u003c/a>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>On Tuesday, Republicans said they support parental leave, but not for smaller businesses. Sen. Jeff Stone (R-Coachella Valley) said his pharmacy would be hurt by the expansion, because his workers provide a specific skill set that is difficult to replace.\u003c/p>\n\u003cp>\"If I get two or three of them that have to leave because of parental or maternal needs, I just can’t go out into the street and hire people to replace them,\" he said.\u003c/p>\n\u003cp>Last year, Gov. Jerry Brown vetoed \u003ca href=\"http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB654\">SB 654\u003c/a>, a nearly identical provision also written by Sen. Jackson.\u003c/p>\n\u003cp>The governor emphasized the importance of early bonding time between parents and babies, but wrote in his \u003ca href=\"https://www.gov.ca.gov/docs/SB_654_Veto_Message.pdf\">veto message \u003c/a>that he was concerned \"about the impact of this leave, particularly on small businesses and the potential liability that could result.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>No word on whether the governor is likely to view this new version of the bill differently.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A proposal to expand the state's parental leave protections to small-business employees passed the state Senate, despite Gov. Jerry Brown's opposition to a very similar measure last year.\u003c/p>\n\u003cp>\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB63\">SB 63\u003c/a>, from Sen. Hannah-Beth Jackson (D-Santa Barbara) advanced to the Assembly Tuesday on a party-line vote, with all 13 Senate Republicans voting against the measure.\u003c/p>\n\u003cp>\"Two-point-seven million more Californians will benefit from this measure,\" said Jackson. \"Family lives have changed dramatically in recent decades, but our policies have remained frozen in time.”\u003c/p>\n\u003cp>The legislation would mandate that businesses with between 20 and 50 employees give their workers 12 weeks to spend with a new child, and guarantee their employment when they return. Currently, those protections are required only of businesses with more than 50 employees. The bill does not require the leave to be paid.\u003c/p>\n\u003cp>SB 63 was viewed as important by a pair of powerful Capitol constituencies. Its passage was a top priority for the \u003ca href=\"http://womenscaucus.legislature.ca.gov/news/2017-04-04-legislative-womens-caucus-hails-priority-bills-stronger-california-implore-governor\">Legislative Women's Caucus\u003c/a>, while the California Chamber of Commerce lobbied for its defeat, labeling it a \u003ca href=\"http://advocacy.calchamber.com/policy/bill-tracking/job-killers/2017-job-killers/\">\"job killer.\"\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>On Tuesday, Republicans said they support parental leave, but not for smaller businesses. Sen. Jeff Stone (R-Coachella Valley) said his pharmacy would be hurt by the expansion, because his workers provide a specific skill set that is difficult to replace.\u003c/p>\n\u003cp>\"If I get two or three of them that have to leave because of parental or maternal needs, I just can’t go out into the street and hire people to replace them,\" he said.\u003c/p>\n\u003cp>Last year, Gov. Jerry Brown vetoed \u003ca href=\"http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB654\">SB 654\u003c/a>, a nearly identical provision also written by Sen. Jackson.\u003c/p>\n\u003cp>The governor emphasized the importance of early bonding time between parents and babies, but wrote in his \u003ca href=\"https://www.gov.ca.gov/docs/SB_654_Veto_Message.pdf\">veto message \u003c/a>that he was concerned \"about the impact of this leave, particularly on small businesses and the potential liability that could result.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>No word on whether the governor is likely to view this new version of the bill differently.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Tijuana Retail Reaping Profits That Once Flowed to San Diego",
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"content": "\u003cp>President Trump’s stance on immigration is reshaping consumer tendencies in the San Diego-Tijuana region, with businesses in Mexico reaping profits that \u003ca href=\"http://www.kpbs.org/news/2017/feb/20/trump-tensions-scare-binational-shoppers/\">once went to stores in the U.S.\u003c/a> amid a rise in Mexican patriotism.\u003c/p>\n\u003cp>Baja California visitors -- primarily from Tijuana -- spend more than $4.5 billion a year on retail and entertainment purchases in San Diego County, according to Crossborder Group, a binational market research entity. But many of them are now opting to make those same purchases in Tijuana.\u003c/p>\n\u003cp>Like thousands of other Tijuana shoppers, Lizbeth Miranda used to do a lot of her wardrobe shopping in San Diego. But she said Trump’s comments about Mexicans have made her feel “uncomfortable” and she now wants to show off her Mexican pride by buying clothes at home.\u003c/p>\n\u003cp>Earlier this month, she bought several T-shirts emblazoned with Tijuana’s area code, 664, at a store called \"Tijuana: I Love 664.\"\u003c/p>\n\u003cp>“I like buying things here more, to support my country,” Miranda said. “I’m proud of being Mexican and want to support my country.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>https://www.youtube.com/watch?v=kWkLG5AwOfc\u003c/p>\n\u003cp>People in Mexico have been paying close attention to Trump’s comments about immigrants because many have families in the U.S. that could be affected by his policies. Many are offended by his descriptions of immigrants as “rapists” and “criminals,” and his claim that \u003ca href=\"https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/beltway/2017/01/31/can-trump-make-mexico-pay-for-the-wall/&refURL=https://www.google.com/&referrer=https://www.google.com/\">Mexico will pay\u003c/a> for a $20 billion-plus border wall.\u003c/p>\n\u003cp>The anger has triggered a newfound sense of \u003ca href=\"http://www.latimes.com/world/mexico-americas/la-fg-mexico-patriotism-trump-2017-story.html\">Mexican patriotism,\u003c/a> which has been beneficial for Tijuana retail, according to Tijuana's Chamber of Commerce. Rumors about tougher customs inspections are also scaring consumers away from San Diego, and instead boosting consumer spending in Tijuana.\u003c/p>\n\u003cp>“I think all of the publicity about Trump, about his wall, and all of that blah-blah-blah, I think lots of local (Tijuana) people have stopped buying American products and have stopped shopping in the U.S.,” said Felipe Acevedo, a Tijuana arts and crafts vendor who said he's seeing a boom in sales to Mexican customers.\u003c/p>\n\u003cfigure id=\"attachment_11485984\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11485984\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/TJMugs-800x465.jpg\" alt=\"Ceramic mugs for sale at a shop in Tijuana.\" width=\"800\" height=\"465\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-160x93.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-240x140.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-375x218.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-520x302.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Ceramic mugs for sale at a shop in Tijuana. \u003ccite>(KATIE SCHOOLOV/KPBS)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Acevedo said Tijuana residents are increasingly interested in ceramic mugs, sombreros and other products that are “made in Mexico.” His store is located on Avenida Revolución, which used to cater to San Diego tourists in quest of cheap margaritas and Mexican souvenirs. Now the street is crowded with residents from Mexico and offers merchandise geared toward locals.\u003c/p>\n\u003cp>Tijuana’s Chamber of Commerce launched a campaign in November to ride the new wave of Mexican pride: \u003ca href=\"http://www.canacotijuana.com/index.php/programa-yo-compro-en-tijuana\">“Yo Compro en Tijuana,”\u003c/a> or “I Shop In Tijuana.” It encourages businesses to do what they can to compete with San Diego businesses -- for example, allowing customers to return items that are broken or do not fit, a practice that is less common in Mexico than in the U.S.\u003c/p>\n\u003cp>“(Trump) has awakened a sense of Mexican patriotism,” said Mario Escobedo Carignan, president of Tijuana’s Chamber of Commerce. “He says, ‘America first, then the rest of the world.’ So we’re doing the same.”\u003c/p>\n\u003cp>https://www.youtube.com/watch?v=FFz_46qfrZU\u003c/p>\n\u003cp>While Tijuana has seen the benefits of Trump’s comments about Mexico, San Diego businesses are taking a hit. The neighborhood of San Ysidro, which sits on the north side of the border, used to be a magnet for Tijuana shoppers. Not anymore.\u003c/p>\n\u003cp>Sunil Gakhreja owns Sunny Perfumes in downtown San Ysidro. He said his business has seen a 50 percent decrease in sales since Trump was elected.\u003c/p>\n\u003cp>“Ninety-nine percent of our customers are Mexico-based. If they don’t cross, we don’t sell. And not just my store. All over San Ysidro,” he said.\u003c/p>\n\u003cp>On holidays, Sunny Perfumes used to become so crowded that Gakhreja had to hire extra help. But on Mother’s Day this year, he needed only one employee, and most of the time, the store was empty.\u003c/p>\n\u003cp>“We are in trouble,” he said.\u003c/p>\n\u003cp>Olivia Campos is the owner of Carolin Shoes next door. She said rumors tied to Trump’s stance on immigration are discouraging people from crossing the border into the U.S. because they fear interacting with customs officers.\u003c/p>\n\u003cp>“They’re afraid they’ll take away their passports, their green cards, some people say they’re even checking cellphones,” she said.\u003c/p>\n\u003cp>Campos said sales in her store dropped 70 percent since November.\u003c/p>\n\u003cp>Business in San Ysidro was already struggling last year because of \u003ca href=\"http://www.kpbs.org/news/2015/aug/05/san-ysidro-sees-fewer-tijuana-consumers-mexicos-pe/\">a plummeting Mexican peso,\u003c/a> which was hurting the purchasing power of Tijuana consumers. The exchange rate has since stabilized, but retail stores are still having a hard time.\u003c/p>\n\u003cp>Jason Wells, executive director of the San Ysidro Chamber of Commerce, said fear, uncertainty and anger tied to the Trump administration are now to blame for San Ysidro’s struggling economy.\u003c/p>\n\u003cp>He said retail citywide has dropped 30 to 50 percent in the past year, with non-brand clothing stores seeing the greatest decrease of 65 percent.\u003c/p>\n\u003cp>“A lot of this has been the national rhetoric,” he said. “And yes, there is a fear, and it’s palpable, you can feel it in the street.”\u003c/p>\n\u003cp>Wells said San Ysidro is trying to devise new strategies to recover lost business -- perhaps diversifying products and services, or offering discounts. But for now, Mexico continues to reap the profits that once belonged to the U.S.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“I get asked about the wall all the time. And I said, 'You know what, a future physical wall isn’t a problem. It’s the current psychological wall that this White House has already built,' ” he said.\u003c/p>\n\n",
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"nprByline": "\u003cstrong>\u003ca href=\"http://www.kpbs.org/staff/jean-guerrero/\">Jean Guerrero\u003c/a>\u003cbr>\u003ca href=\"http://www.kpbs.org/\">KPBS\u003c/a>\u003c/strong>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>President Trump’s stance on immigration is reshaping consumer tendencies in the San Diego-Tijuana region, with businesses in Mexico reaping profits that \u003ca href=\"http://www.kpbs.org/news/2017/feb/20/trump-tensions-scare-binational-shoppers/\">once went to stores in the U.S.\u003c/a> amid a rise in Mexican patriotism.\u003c/p>\n\u003cp>Baja California visitors -- primarily from Tijuana -- spend more than $4.5 billion a year on retail and entertainment purchases in San Diego County, according to Crossborder Group, a binational market research entity. But many of them are now opting to make those same purchases in Tijuana.\u003c/p>\n\u003cp>Like thousands of other Tijuana shoppers, Lizbeth Miranda used to do a lot of her wardrobe shopping in San Diego. But she said Trump’s comments about Mexicans have made her feel “uncomfortable” and she now wants to show off her Mexican pride by buying clothes at home.\u003c/p>\n\u003cp>Earlier this month, she bought several T-shirts emblazoned with Tijuana’s area code, 664, at a store called \"Tijuana: I Love 664.\"\u003c/p>\n\u003cp>“I like buying things here more, to support my country,” Miranda said. “I’m proud of being Mexican and want to support my country.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/kWkLG5AwOfc'\n title='//www.youtube.com/embed/kWkLG5AwOfc'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>People in Mexico have been paying close attention to Trump’s comments about immigrants because many have families in the U.S. that could be affected by his policies. Many are offended by his descriptions of immigrants as “rapists” and “criminals,” and his claim that \u003ca href=\"https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/beltway/2017/01/31/can-trump-make-mexico-pay-for-the-wall/&refURL=https://www.google.com/&referrer=https://www.google.com/\">Mexico will pay\u003c/a> for a $20 billion-plus border wall.\u003c/p>\n\u003cp>The anger has triggered a newfound sense of \u003ca href=\"http://www.latimes.com/world/mexico-americas/la-fg-mexico-patriotism-trump-2017-story.html\">Mexican patriotism,\u003c/a> which has been beneficial for Tijuana retail, according to Tijuana's Chamber of Commerce. Rumors about tougher customs inspections are also scaring consumers away from San Diego, and instead boosting consumer spending in Tijuana.\u003c/p>\n\u003cp>“I think all of the publicity about Trump, about his wall, and all of that blah-blah-blah, I think lots of local (Tijuana) people have stopped buying American products and have stopped shopping in the U.S.,” said Felipe Acevedo, a Tijuana arts and crafts vendor who said he's seeing a boom in sales to Mexican customers.\u003c/p>\n\u003cfigure id=\"attachment_11485984\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11485984\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/TJMugs-800x465.jpg\" alt=\"Ceramic mugs for sale at a shop in Tijuana.\" width=\"800\" height=\"465\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-160x93.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-240x140.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-375x218.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/TJMugs-520x302.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Ceramic mugs for sale at a shop in Tijuana. \u003ccite>(KATIE SCHOOLOV/KPBS)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Acevedo said Tijuana residents are increasingly interested in ceramic mugs, sombreros and other products that are “made in Mexico.” His store is located on Avenida Revolución, which used to cater to San Diego tourists in quest of cheap margaritas and Mexican souvenirs. Now the street is crowded with residents from Mexico and offers merchandise geared toward locals.\u003c/p>\n\u003cp>Tijuana’s Chamber of Commerce launched a campaign in November to ride the new wave of Mexican pride: \u003ca href=\"http://www.canacotijuana.com/index.php/programa-yo-compro-en-tijuana\">“Yo Compro en Tijuana,”\u003c/a> or “I Shop In Tijuana.” It encourages businesses to do what they can to compete with San Diego businesses -- for example, allowing customers to return items that are broken or do not fit, a practice that is less common in Mexico than in the U.S.\u003c/p>\n\u003cp>“(Trump) has awakened a sense of Mexican patriotism,” said Mario Escobedo Carignan, president of Tijuana’s Chamber of Commerce. “He says, ‘America first, then the rest of the world.’ So we’re doing the same.”\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/FFz_46qfrZU'\n title='//www.youtube.com/embed/FFz_46qfrZU'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>While Tijuana has seen the benefits of Trump’s comments about Mexico, San Diego businesses are taking a hit. The neighborhood of San Ysidro, which sits on the north side of the border, used to be a magnet for Tijuana shoppers. Not anymore.\u003c/p>\n\u003cp>Sunil Gakhreja owns Sunny Perfumes in downtown San Ysidro. He said his business has seen a 50 percent decrease in sales since Trump was elected.\u003c/p>\n\u003cp>“Ninety-nine percent of our customers are Mexico-based. If they don’t cross, we don’t sell. And not just my store. All over San Ysidro,” he said.\u003c/p>\n\u003cp>On holidays, Sunny Perfumes used to become so crowded that Gakhreja had to hire extra help. But on Mother’s Day this year, he needed only one employee, and most of the time, the store was empty.\u003c/p>\n\u003cp>“We are in trouble,” he said.\u003c/p>\n\u003cp>Olivia Campos is the owner of Carolin Shoes next door. She said rumors tied to Trump’s stance on immigration are discouraging people from crossing the border into the U.S. because they fear interacting with customs officers.\u003c/p>\n\u003cp>“They’re afraid they’ll take away their passports, their green cards, some people say they’re even checking cellphones,” she said.\u003c/p>\n\u003cp>Campos said sales in her store dropped 70 percent since November.\u003c/p>\n\u003cp>Business in San Ysidro was already struggling last year because of \u003ca href=\"http://www.kpbs.org/news/2015/aug/05/san-ysidro-sees-fewer-tijuana-consumers-mexicos-pe/\">a plummeting Mexican peso,\u003c/a> which was hurting the purchasing power of Tijuana consumers. The exchange rate has since stabilized, but retail stores are still having a hard time.\u003c/p>\n\u003cp>Jason Wells, executive director of the San Ysidro Chamber of Commerce, said fear, uncertainty and anger tied to the Trump administration are now to blame for San Ysidro’s struggling economy.\u003c/p>\n\u003cp>He said retail citywide has dropped 30 to 50 percent in the past year, with non-brand clothing stores seeing the greatest decrease of 65 percent.\u003c/p>\n\u003cp>“A lot of this has been the national rhetoric,” he said. “And yes, there is a fear, and it’s palpable, you can feel it in the street.”\u003c/p>\n\u003cp>Wells said San Ysidro is trying to devise new strategies to recover lost business -- perhaps diversifying products and services, or offering discounts. But for now, Mexico continues to reap the profits that once belonged to the U.S.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“I get asked about the wall all the time. And I said, 'You know what, a future physical wall isn’t a problem. It’s the current psychological wall that this White House has already built,' ” he said.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Monterey County's Flower Industry Is Ailing -- Marijuana May Be the Cure",
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"content": "\u003cp>Rows of dilapidated greenhouses line the little farm roads on the southeastern outskirts of Salinas. People once called this area the \"flower basket of America.\" Most of the flowers are now gone, but they could soon be replaced with marijuana.\u003c/p>\n\u003cp>It’s legal to smoke recreational marijuana in California, but you still can’t grow it commercially. The state plans to start issuing permits sometime in 2018, and people around California are angling to get in on the cash crop. In Monterey County, many who want to start cultivating cannabis -- like George Omictin -- once made a living growing flowers.\u003c/p>\n\u003cp>Omictin’s family owns a plot of land southeast of Salinas. The property has a house under construction surrounded by a clutch of rundown greenhouses. A few already have collapsed. Others are in sad shape, leaning to one side or the other, huge holes in their plastic. Omictin said the family had to reinforce the greenhouses; otherwise, a strong storm could have come through and blown more of them down.\u003c/p>\n\u003cp>His parents were immigrants and migrant workers. They bought property in the early 2000s, trying to become owners instead of laborers. But then cheap flowers from overseas undercut the U.S. market. At one point, Omictin said they were selling bouquets at 10 cents a bunch just so they wouldn’t rot in the greenhouses.\u003c/p>\n\u003cfigure id=\"attachment_11477679\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11477679\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/Pot-Flowers-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">George Omictin's family used to grow flowers in Monterey County. Now some of the greenhouses are in disrepair. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The family hasn’t grown flowers since 2008. Instead, they have been renting out the greenhouses, trying to make enough money to stay afloat while they search for a sustainable way to earn a living and hold onto their land. The family has debts to pay off. To do that, they will no longer grow pretty flowers, Omictin said, but perhaps smokable ones.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Monterey County is helping flower growers get into the marijuana business. It passed an \u003ca href=\"https://www.municode.com/library/ca/monterey_county/codes/code_of_ordinances?nodeId=TIT21ZO_CH21.67COMECAAC\" target=\"_blank\" rel=\"noopener noreferrer\">ordinance\u003c/a> saying you can grow cannabis only in old greenhouses. Aaron Johnson, a local lawyer who specializes in marijuana, says the county is trying to do two things: to save the greenhouses and prevent new cannabis farms from springing up all over the place.\u003c/p>\n\u003caside class=\"pullquote alignright\">'Basically, the county threw a life vest to save us now.'\u003ccite>George Omictin\u003c/cite>\u003c/aside>\n\u003cp>“You have these vast crop lands. They didn’t want those to be paved over for greenhouses,” Johnson said. “So they basically said, ‘Look, keep it at the existing greenhouses, use these things that are falling down.’ ”\u003c/p>\n\u003cp>The ordinance suddenly turned the eyesore greenhouses on the outskirts of Salinas into valuable commodities.\u003c/p>\n\u003cp>“Literally within a period of two weeks I saw the prices go from $50,000 an acre for undeveloped industrial land to about $300,000 an acre,” Johnson said.\u003c/p>\n\u003cp>“Basically, the county threw a life vest to save us now,” Omictin said.\u003c/p>\n\u003cp>At first, Omictin’s conservative father was reluctant to grab the life vest because marijuana is a drug. He worried SWAT teams might come in and raid the place. His son eventually convinced him that cannabis could be a lifesaver. And the fact that the federal government still labels marijuana a drug was actually a big part of its appeal.\u003c/p>\n\u003cp>[contextly_sidebar id=\"jRq3ubgYYkezSsIsqRPWESJWWJyxHPyu\"]\u003c/p>\n\u003cp>Because cannabis is in a legal gray area, it may be a more commercially reliable crop than flowers. Marijuana cannot be legally transported across international borders the way flowers are. They pour in from South American countries where workers are paid far less and the flowers are far cheaper.\u003c/p>\n\u003cp>The stream of cheap flowers from places like Colombia has put many U.S. growers out of business, said Kasey Cronquist, CEO of the California Cut Flower Commission. Today Cronquist said only a handful of rose or chrysanthemum growers are left in the country and not a single farmer who grows carnations.\u003c/p>\n\u003cp>\"People can't believe it,” Cronquist said. “How did we do this? How did we get here? Well, it goes back to these trade agreements in the early '90s, and the rest is history.\"\u003c/p>\n\u003cfigure id=\"attachment_11485725\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11485725\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/FlowerFarm-800x534.jpg\" alt=\"A fieldworker harvests flowers at a farm near Moss Beach.\" width=\"800\" height=\"534\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-800x534.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-1020x681.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-960x641.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A fieldworker harvests flowers at a farm near Moss Beach. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That history begins with cocaine. Starting in 1991, the U.S. signed trade deals aiming to get South American cocaine growers to cultivate flowers instead. First there was the \u003ca href=\"https://help.cbp.gov/app/answers/detail/a_id/325/~/andean-trade-preference-act-%28atpa%29---expiration-of-duty-free-treatment\" target=\"_blank\" rel=\"noopener noreferrer\">Andean Trade Preference Act\u003c/a>, and then in 2012 the \u003ca href=\"https://ustr.gov/uscolombiatpa\" target=\"_blank\" rel=\"noopener noreferrer\">Colombia Free Trade Agreement\u003c/a>. Through these deals, the government has sent hundreds of millions of dollars in subsidies, and it has cut tariffs on South American flowers.\u003c/p>\n\u003cp>Cronquist said the U.S. overlooked the microeconomic effects of these trade deals on individual industries like cut flowers. Instead, he said the country focused on the diplomatic effort to limit cocaine production, which despite U.S. intervention still continues in South America. Cronquist called the whole endeavor “trade policy run amok.”\u003c/p>\n\u003cp>To survive the cheap U.S.-subsidized flowers streaming in from South America, farmers here sought protected niches. Some tried potted flowers. They are in soil that is very difficult to transport across borders because of customs restrictions. Other farmers got into edible crops like lettuce, which are highly perishable.\u003c/p>\n\u003cp>In Salinas, families like the Omictins are now betting on cannabis. They hope the feds won’t crack down once they start growing. But at the same time, they want marijuana to remain in enough of a legal gray area that it is protected from the forces of globalization. Otherwise, marijuana farmers overseas could start shipping in boatloads of legal product at dirt-cheap prices.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Then they would be right back where they started: with greenhouses filled with weeds that no one wants to buy.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Rows of dilapidated greenhouses line the little farm roads on the southeastern outskirts of Salinas. People once called this area the \"flower basket of America.\" Most of the flowers are now gone, but they could soon be replaced with marijuana.\u003c/p>\n\u003cp>It’s legal to smoke recreational marijuana in California, but you still can’t grow it commercially. The state plans to start issuing permits sometime in 2018, and people around California are angling to get in on the cash crop. In Monterey County, many who want to start cultivating cannabis -- like George Omictin -- once made a living growing flowers.\u003c/p>\n\u003cp>Omictin’s family owns a plot of land southeast of Salinas. The property has a house under construction surrounded by a clutch of rundown greenhouses. A few already have collapsed. Others are in sad shape, leaning to one side or the other, huge holes in their plastic. Omictin said the family had to reinforce the greenhouses; otherwise, a strong storm could have come through and blown more of them down.\u003c/p>\n\u003cp>His parents were immigrants and migrant workers. They bought property in the early 2000s, trying to become owners instead of laborers. But then cheap flowers from overseas undercut the U.S. market. At one point, Omictin said they were selling bouquets at 10 cents a bunch just so they wouldn’t rot in the greenhouses.\u003c/p>\n\u003cfigure id=\"attachment_11477679\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11477679\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/Pot-Flowers-800x600.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/Pot-Flowers-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">George Omictin's family used to grow flowers in Monterey County. Now some of the greenhouses are in disrepair. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The family hasn’t grown flowers since 2008. Instead, they have been renting out the greenhouses, trying to make enough money to stay afloat while they search for a sustainable way to earn a living and hold onto their land. The family has debts to pay off. To do that, they will no longer grow pretty flowers, Omictin said, but perhaps smokable ones.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Monterey County is helping flower growers get into the marijuana business. It passed an \u003ca href=\"https://www.municode.com/library/ca/monterey_county/codes/code_of_ordinances?nodeId=TIT21ZO_CH21.67COMECAAC\" target=\"_blank\" rel=\"noopener noreferrer\">ordinance\u003c/a> saying you can grow cannabis only in old greenhouses. Aaron Johnson, a local lawyer who specializes in marijuana, says the county is trying to do two things: to save the greenhouses and prevent new cannabis farms from springing up all over the place.\u003c/p>\n\u003caside class=\"pullquote alignright\">'Basically, the county threw a life vest to save us now.'\u003ccite>George Omictin\u003c/cite>\u003c/aside>\n\u003cp>“You have these vast crop lands. They didn’t want those to be paved over for greenhouses,” Johnson said. “So they basically said, ‘Look, keep it at the existing greenhouses, use these things that are falling down.’ ”\u003c/p>\n\u003cp>The ordinance suddenly turned the eyesore greenhouses on the outskirts of Salinas into valuable commodities.\u003c/p>\n\u003cp>“Literally within a period of two weeks I saw the prices go from $50,000 an acre for undeveloped industrial land to about $300,000 an acre,” Johnson said.\u003c/p>\n\u003cp>“Basically, the county threw a life vest to save us now,” Omictin said.\u003c/p>\n\u003cp>At first, Omictin’s conservative father was reluctant to grab the life vest because marijuana is a drug. He worried SWAT teams might come in and raid the place. His son eventually convinced him that cannabis could be a lifesaver. And the fact that the federal government still labels marijuana a drug was actually a big part of its appeal.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Because cannabis is in a legal gray area, it may be a more commercially reliable crop than flowers. Marijuana cannot be legally transported across international borders the way flowers are. They pour in from South American countries where workers are paid far less and the flowers are far cheaper.\u003c/p>\n\u003cp>The stream of cheap flowers from places like Colombia has put many U.S. growers out of business, said Kasey Cronquist, CEO of the California Cut Flower Commission. Today Cronquist said only a handful of rose or chrysanthemum growers are left in the country and not a single farmer who grows carnations.\u003c/p>\n\u003cp>\"People can't believe it,” Cronquist said. “How did we do this? How did we get here? Well, it goes back to these trade agreements in the early '90s, and the rest is history.\"\u003c/p>\n\u003cfigure id=\"attachment_11485725\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11485725\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/FlowerFarm-800x534.jpg\" alt=\"A fieldworker harvests flowers at a farm near Moss Beach.\" width=\"800\" height=\"534\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-800x534.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-1020x681.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-960x641.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FlowerFarm-520x347.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A fieldworker harvests flowers at a farm near Moss Beach. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That history begins with cocaine. Starting in 1991, the U.S. signed trade deals aiming to get South American cocaine growers to cultivate flowers instead. First there was the \u003ca href=\"https://help.cbp.gov/app/answers/detail/a_id/325/~/andean-trade-preference-act-%28atpa%29---expiration-of-duty-free-treatment\" target=\"_blank\" rel=\"noopener noreferrer\">Andean Trade Preference Act\u003c/a>, and then in 2012 the \u003ca href=\"https://ustr.gov/uscolombiatpa\" target=\"_blank\" rel=\"noopener noreferrer\">Colombia Free Trade Agreement\u003c/a>. Through these deals, the government has sent hundreds of millions of dollars in subsidies, and it has cut tariffs on South American flowers.\u003c/p>\n\u003cp>Cronquist said the U.S. overlooked the microeconomic effects of these trade deals on individual industries like cut flowers. Instead, he said the country focused on the diplomatic effort to limit cocaine production, which despite U.S. intervention still continues in South America. Cronquist called the whole endeavor “trade policy run amok.”\u003c/p>\n\u003cp>To survive the cheap U.S.-subsidized flowers streaming in from South America, farmers here sought protected niches. Some tried potted flowers. They are in soil that is very difficult to transport across borders because of customs restrictions. Other farmers got into edible crops like lettuce, which are highly perishable.\u003c/p>\n\u003cp>In Salinas, families like the Omictins are now betting on cannabis. They hope the feds won’t crack down once they start growing. But at the same time, they want marijuana to remain in enough of a legal gray area that it is protected from the forces of globalization. Otherwise, marijuana farmers overseas could start shipping in boatloads of legal product at dirt-cheap prices.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Then they would be right back where they started: with greenhouses filled with weeds that no one wants to buy.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "For Local Governments, Cashing in on Cannabis Won't Be Easy",
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"content": "\u003cp>At the office of Monterey County’s Treasurer-Tax Collector, gun-toting guards now stand sentry over the parking lot and entry door.\u003c/p>\n\u003cp>A newly renovated front office now serves as a secure drop-off point for taxpayers carrying duffel bags full of cash (payments made by appointment only). A fleet of state-of-the-art currency counters stand ready to speedily tally unprecedented sums of paper bills. And the regularly scheduled armored truck pickups are now passing through at a quicker clip.\u003c/p>\n\u003cp>Monterey County is among the many California cities and counties discovering a hard truth as they angle for a cut of the state’s newly legalized marijuana proceeds: Tax collecting in cannabis country comes with its share of obstacles. And there’s no “how to” guide.\u003c/p>\n\u003cp>“It’s been a challenge just to craft all of this from scratch,” county Treasurer-Tax Collector Mary Zeeb said from her office in Salinas. As of the first of this year, all licensed medical pot growers in unincorporated Monterey County owe Zeeb’s office $2 for every square foot they farm. That’s thanks to a measure passed by an overwhelming 74 percent of the county’s voters last November, who decided that if cannabis is going to be a mostly-legal local industry, the county treasury might as well get in on the action.\u003c/p>\n\u003cp>Among the list of questions that city fiscal analysts and county councilmembers are now puzzling over:\u003c/p>\n\u003cul>\n\u003cli>What is the “sweet spot” tax rate that will keep local budgets in the black without chasing growers and vendors back into the black market?\u003c/li>\n\u003cli>Who exactly are the officially licensed weed dealers in their jurisdiction?\u003c/li>\n\u003cli>When taxing an industry that is effectively barred from the traditional banking sector, what do you do with all their cash?\u003c/li>\n\u003cli>And just how do you audit a pot farm anyway?\u003c/li>\n\u003c/ul>\n\u003cp>“We set up our processes, and we hoped that they were going to work. So far, I’ve been pleasantly surprised that they mostly have,” says Zeeb, now processing the first quarter of collections.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Monterey County reports taking in roughly $700,000 from 60 growers (with 15 more still in arrears as of earlier this month). Those tax bills were based on self-report yield data from the growers themselves, but once all the permits are finalized, Zeeb says each grower will be taxed based on his or her permitted acreage.\u003c/p>\n\u003cp>“This is kind of the startup period,” she says. “We had a very steep learning curve.”\u003c/p>\n\u003cfigure id=\"attachment_11479241\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/FistfullOfWeed-800x545.jpg\" alt=\"A marijuana grower displays cannabis grown at one of his properties.\" width=\"800\" height=\"545\" class=\"size-medium wp-image-11479241\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-800x545.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-160x109.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-1020x695.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-1180x804.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-960x654.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-240x164.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-375x255.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-520x354.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A marijuana grower displays cannabis grown at one of his properties. \u003ccite>(JOSH EDELSON/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Monterey County isn’t the only local government learning on the fly. \u003c/p>\n\u003cp>Last election, 32 cities and nine counties put marijuana tax measures on the ballot. All but two were approved -- and more measures have been scheduled during special elections since. These taxes largely apply to medical cannabis, but were designed to encompass recreational pot once the state begins issuing permits no sooner than the beginning of next year.\u003c/p>\n\u003cp>“This certainly was by far the biggest year -- last November -- for these sorts of measures,” says Michael Coleman, fiscal policy advisor to the League of California Cities.\u003c/p>\n\u003cp>Coleman attributes the green wave at the local level as a response to Proposition 64, by which state voters in November legalized the cultivation, sale and use of marijuana by adults for recreational purposes. Though the initiative gives local governments the right to restrict marijuana business activity within its borders, it requires them to do so proactively.\u003c/p>\n\u003cp>The proposition “begged the question for everyone,” he says. “If you say nothing, you’re making the decision to allow a bunch of stuff to happen in your community.”\u003c/p>\n\u003cp>[contextly_sidebar id=\"PPQ4MHu6h2RC7dD7w90QxkhQFwucFLqR\"]\u003c/p>\n\u003cp>Instead, many local governments have opted to allow the marijuana industry to set up shop, but to tax them for the right to do so.\u003c/p>\n\u003cp>Alongside the cultivation tax, for example, Monterey County applies a 5 percent gross-receipts tax on all operations in the business of distributing, manufacturing and testing cannabis. That’s on top of the 15 percent excise tax and $9.25 per ounce cultivation tax the state will \u003ca href=\"https://www.boe.ca.gov/industry/medical_cannabis.html#Overview\">impose\u003c/a> on both medical and recreational marijuana under Prop. 64 (though card-carrying medical marijuana patients will be exempt from the state’s 7.25 percent sales tax) -- as well as the property, business license and corporate taxes that all companies pay.\u003c/p>\n\u003cp>Cannabis entrepreneurs complain about the heavy tab.\u003c/p>\n\u003cp>But these tax initiatives aren’t solely a cash grab by locals, said David McPherson, the cannabis compliance director at HdL Companies, which advises local governments on cannabis regulatory and tax issues.\u003c/p>\n\u003cp>Some cities and counties are simply trying to recoup the expenses of setting up a new regulatory system and pay for the expected cost of cracking down on the non-compliant. Other communities want to hammer out rules and regulations early to send a message to the industry that they are legally (and maybe philosophically) open to a well-regulated, professional weed industry.\u003c/p>\n\u003cp>But the potential growth of commercial cannabis represents an undeniable fiscal opportunity.\u003c/p>\n\u003cp>“Cities and counties have been struggling for the last 20 years,” McPherson said, who used to be the head tax collector for the City of Oakland, the first municipality to tax and regulate the industry. “They’re just figuring out how to keep out bankruptcy.” He points to Proposition 13 and other constitutional restrictions on local taxes, and the escalating costs of public pension contributions. In constrained times, cannabis represents that rare opportunity for local government: a fresh source of untapped tax revenue.\u003c/p>\n\u003cp>How to tap that source is a work in progress.\u003c/p>\n\u003cp>[contextly_sidebar id=\"FnL06GXETZVM5xRCpnrI1ck3ODyq7JIy\"]\u003c/p>\n\u003cp>In Humboldt County, where a world-renowned cannabis industry has long operated off the grid and off the books, voters approved a $1 to $3 per-square-foot cultivation tax on growers by a greater than 2-to-1 margin. But of the nearly 10,000 grow operations that local officials estimate lie scattered across the lightly populated, densely forested county, fewer than 2,500 have registered, according to Treasurer-Tax Collector John Bartholomew. And since the ordinance only allows the county to collect taxes from fully permitted growers, Bartholomew’s office has only sent out 13 tax bills.\u003c/p>\n\u003cp>“It’s just too bad that we couldn’t levy the taxes on any grower we knew that was operating,” he said. “If they don’t have the permit, we can’t bill them. I think that there was probably influence from the industry in how that measure was written.”\u003c/p>\n\u003cp>In the meantime, Bartholomew is concerned that transient operators -- so-called “trimmigrants” who arrive for the season, harvest a plot, and then leave the county -- may be able to skip town without paying their share. Bartholomew has lobbied Sacramento for a change to state law that would allow his department to seize the property of those who allow their land to be used for cultivation but don’t pay their taxes. So far, not a single legislator has agreed to carry such a bill.\u003c/p>\n\u003cfigure id=\"attachment_11479245\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/WeedGrowRoom-800x586.jpg\" alt=\"A marijuana greenhouse at one of the relatively few registered Humboldt County pot farms.\" width=\"800\" height=\"586\" class=\"size-medium wp-image-11479245\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-800x586.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-160x117.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-1020x747.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-1180x865.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-960x704.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-240x176.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-375x275.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-520x381.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A marijuana greenhouse at one of the relatively few registered Humboldt County pot farms. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But even in more urbanized areas, where the regulatory authority of local government is less contested, authorities are still puzzling over some basic questions when it comes to taxing marijuana.\u003c/p>\n\u003cp>For example, what exactly is the “right” tax rate for the cannabis industry? Absent much economic literature on the subject, many cities and counties have established a maximum levy, while giving themselves a flexible range of rates to charge in the future. The Goldilocks-like task of finding that “just right” tax burden -- the rate that funds local regulatory requirements without pushing growers and vendors out of business -- is something that cities and counties will be experimenting with in the years to come.\u003c/p>\n\u003cp>What these county-by-county and city-by-city rates and policies will mean for the development of the industry is unclear.\u003c/p>\n\u003cp>Last March, Sonoma voters passed a gross receipts tax with a maximum rate of 10 percent for all marijuana businesses in unincorporated sections of the county. This came over the objections of the local growers alliance. But this June, Santa Rosa, the Sonoma County seat, will be voting on its own local gross receipts tax that will undercut the county rate, setting its ceiling at 8 percent. (The starting rates will range from 1 to 3 percent, depending on the type of business.)\u003c/p>\n\u003cp>With Santa Rosa positioning itself as the more business friendly alternative in the area, the city has seen marijuana investment money pour in as the vacancy rate for industrial space plummets.\u003c/p>\n\u003cp>“There’s an enormous amount of speculation going on,” says David Guhin, director of the city’s planning and economic development department. “We’re hearing stories of other smaller industrial users -- like butcher shops and other things -- that can’t expand now because they can’t compete with the money that cannabis is bringing to the table.”\u003c/p>\n\u003cp>[contextly_sidebar id=\"nBqw7bw7SflSaax3RHQQpSO6lA35zGKv\"]\u003c/p>\n\u003cp>According to Cara Martinson with the California State Association of Counties, cities and counties will need to coordinate to avoid creating a “patchwork” of tax rates that drives the cannabis industry in one direction or another. But she says coordination is tricky because state policy itself remains fluid.\u003c/p>\n\u003cp>The state has until the end of 2017 to craft regulations under Prop. 64 and to square them with existing rules that apply to medical marijuana, which are also in flux. Earlier this month the state released draft regulations for medical weed.\u003c/p>\n\u003cp>At the same time, lawmakers and regulators in Sacramento are struggling with some of the same logistical issues that beguile local tax authorities. Chief among them is the question of how to collect an \u003ca href=\"http://www.lao.ca.gov/BallotAnalysis/Proposition?number=64&year=2016\">expected\u003c/a> $1 billion in annual tax revenue in cash -- a question that remains unresolved. \u003c/p>\n\u003cp>The State Treasurer’s Office has put together a group to figure out how to get otherwise “unbankable” cannabis businesses their own checking accounts. Likewise, state lawmakers have introduced bills that would \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB148\">set up\u003c/a> additional tax payment centers and \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB1410\">allow\u003c/a> cannabis distributors to collect tax payments from their farmers. Some state officials have even floated a proposal to establish a state-run \u003ca href=\"http://www.willitsnews.com/article/NR/20170202/NEWS/170209996\">bank\u003c/a> -- though it is unclear whether such a bank would have an easier time than the private sector skirting federal banking regulations.\u003c/p>\n\u003cp>But for now, these are simply proposals. As state lawmakers puzzle over these questions, local governments are forging ahead.\u003c/p>\n\u003cp>[contextly_sidebar id=\"jOogNYU7ZRI2Hp6ASCtvDviVi1nWSytN\"]\u003c/p>\n\u003cp>“The fact that there’s a moving target at the state level makes it way more challenging for folks to develop thoughtful, comprehensive, local ordinances,” says Martinson.\u003c/p>\n\u003cp>Even so, David Guhin in Santa Rosa says he’s optimistic about the prospects of the local measure. That is in part because the city began offering interim permits to cannabis manufacturers and vendors as early as late 2015 while the regulations were still being hammered out. That gave city officials a year and half of lead time to figure out how big the local industry actually is, how much they can be taxed, and how much the new regulations will cost the city.\u003c/p>\n\u003cp>If the city weed tax passes in June, Guhin says Santa Rosa will have an advantage over cities and counties that only began enacting their policies after a tax was approved. Still there is more learning ahead.\u003c/p>\n\u003cp>“We get a new question every day -- one that we haven’t thought of,” he says. “But we’re trying to figure it out with everyone else.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n",
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"excerpt": "California counties are angling for a cut of newly legalized pot proceeds. But tax collecting comes with its share of obstacles, and there’s no ‘how to’ guide.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>At the office of Monterey County’s Treasurer-Tax Collector, gun-toting guards now stand sentry over the parking lot and entry door.\u003c/p>\n\u003cp>A newly renovated front office now serves as a secure drop-off point for taxpayers carrying duffel bags full of cash (payments made by appointment only). A fleet of state-of-the-art currency counters stand ready to speedily tally unprecedented sums of paper bills. And the regularly scheduled armored truck pickups are now passing through at a quicker clip.\u003c/p>\n\u003cp>Monterey County is among the many California cities and counties discovering a hard truth as they angle for a cut of the state’s newly legalized marijuana proceeds: Tax collecting in cannabis country comes with its share of obstacles. And there’s no “how to” guide.\u003c/p>\n\u003cp>“It’s been a challenge just to craft all of this from scratch,” county Treasurer-Tax Collector Mary Zeeb said from her office in Salinas. As of the first of this year, all licensed medical pot growers in unincorporated Monterey County owe Zeeb’s office $2 for every square foot they farm. That’s thanks to a measure passed by an overwhelming 74 percent of the county’s voters last November, who decided that if cannabis is going to be a mostly-legal local industry, the county treasury might as well get in on the action.\u003c/p>\n\u003cp>Among the list of questions that city fiscal analysts and county councilmembers are now puzzling over:\u003c/p>\n\u003cul>\n\u003cli>What is the “sweet spot” tax rate that will keep local budgets in the black without chasing growers and vendors back into the black market?\u003c/li>\n\u003cli>Who exactly are the officially licensed weed dealers in their jurisdiction?\u003c/li>\n\u003cli>When taxing an industry that is effectively barred from the traditional banking sector, what do you do with all their cash?\u003c/li>\n\u003cli>And just how do you audit a pot farm anyway?\u003c/li>\n\u003c/ul>\n\u003cp>“We set up our processes, and we hoped that they were going to work. So far, I’ve been pleasantly surprised that they mostly have,” says Zeeb, now processing the first quarter of collections.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Monterey County reports taking in roughly $700,000 from 60 growers (with 15 more still in arrears as of earlier this month). Those tax bills were based on self-report yield data from the growers themselves, but once all the permits are finalized, Zeeb says each grower will be taxed based on his or her permitted acreage.\u003c/p>\n\u003cp>“This is kind of the startup period,” she says. “We had a very steep learning curve.”\u003c/p>\n\u003cfigure id=\"attachment_11479241\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/FistfullOfWeed-800x545.jpg\" alt=\"A marijuana grower displays cannabis grown at one of his properties.\" width=\"800\" height=\"545\" class=\"size-medium wp-image-11479241\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-800x545.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-160x109.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-1020x695.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-1180x804.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-960x654.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-240x164.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-375x255.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/FistfullOfWeed-520x354.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A marijuana grower displays cannabis grown at one of his properties. \u003ccite>(JOSH EDELSON/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Monterey County isn’t the only local government learning on the fly. \u003c/p>\n\u003cp>Last election, 32 cities and nine counties put marijuana tax measures on the ballot. All but two were approved -- and more measures have been scheduled during special elections since. These taxes largely apply to medical cannabis, but were designed to encompass recreational pot once the state begins issuing permits no sooner than the beginning of next year.\u003c/p>\n\u003cp>“This certainly was by far the biggest year -- last November -- for these sorts of measures,” says Michael Coleman, fiscal policy advisor to the League of California Cities.\u003c/p>\n\u003cp>Coleman attributes the green wave at the local level as a response to Proposition 64, by which state voters in November legalized the cultivation, sale and use of marijuana by adults for recreational purposes. Though the initiative gives local governments the right to restrict marijuana business activity within its borders, it requires them to do so proactively.\u003c/p>\n\u003cp>The proposition “begged the question for everyone,” he says. “If you say nothing, you’re making the decision to allow a bunch of stuff to happen in your community.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Instead, many local governments have opted to allow the marijuana industry to set up shop, but to tax them for the right to do so.\u003c/p>\n\u003cp>Alongside the cultivation tax, for example, Monterey County applies a 5 percent gross-receipts tax on all operations in the business of distributing, manufacturing and testing cannabis. That’s on top of the 15 percent excise tax and $9.25 per ounce cultivation tax the state will \u003ca href=\"https://www.boe.ca.gov/industry/medical_cannabis.html#Overview\">impose\u003c/a> on both medical and recreational marijuana under Prop. 64 (though card-carrying medical marijuana patients will be exempt from the state’s 7.25 percent sales tax) -- as well as the property, business license and corporate taxes that all companies pay.\u003c/p>\n\u003cp>Cannabis entrepreneurs complain about the heavy tab.\u003c/p>\n\u003cp>But these tax initiatives aren’t solely a cash grab by locals, said David McPherson, the cannabis compliance director at HdL Companies, which advises local governments on cannabis regulatory and tax issues.\u003c/p>\n\u003cp>Some cities and counties are simply trying to recoup the expenses of setting up a new regulatory system and pay for the expected cost of cracking down on the non-compliant. Other communities want to hammer out rules and regulations early to send a message to the industry that they are legally (and maybe philosophically) open to a well-regulated, professional weed industry.\u003c/p>\n\u003cp>But the potential growth of commercial cannabis represents an undeniable fiscal opportunity.\u003c/p>\n\u003cp>“Cities and counties have been struggling for the last 20 years,” McPherson said, who used to be the head tax collector for the City of Oakland, the first municipality to tax and regulate the industry. “They’re just figuring out how to keep out bankruptcy.” He points to Proposition 13 and other constitutional restrictions on local taxes, and the escalating costs of public pension contributions. In constrained times, cannabis represents that rare opportunity for local government: a fresh source of untapped tax revenue.\u003c/p>\n\u003cp>How to tap that source is a work in progress.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>In Humboldt County, where a world-renowned cannabis industry has long operated off the grid and off the books, voters approved a $1 to $3 per-square-foot cultivation tax on growers by a greater than 2-to-1 margin. But of the nearly 10,000 grow operations that local officials estimate lie scattered across the lightly populated, densely forested county, fewer than 2,500 have registered, according to Treasurer-Tax Collector John Bartholomew. And since the ordinance only allows the county to collect taxes from fully permitted growers, Bartholomew’s office has only sent out 13 tax bills.\u003c/p>\n\u003cp>“It’s just too bad that we couldn’t levy the taxes on any grower we knew that was operating,” he said. “If they don’t have the permit, we can’t bill them. I think that there was probably influence from the industry in how that measure was written.”\u003c/p>\n\u003cp>In the meantime, Bartholomew is concerned that transient operators -- so-called “trimmigrants” who arrive for the season, harvest a plot, and then leave the county -- may be able to skip town without paying their share. Bartholomew has lobbied Sacramento for a change to state law that would allow his department to seize the property of those who allow their land to be used for cultivation but don’t pay their taxes. So far, not a single legislator has agreed to carry such a bill.\u003c/p>\n\u003cfigure id=\"attachment_11479245\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/WeedGrowRoom-800x586.jpg\" alt=\"A marijuana greenhouse at one of the relatively few registered Humboldt County pot farms.\" width=\"800\" height=\"586\" class=\"size-medium wp-image-11479245\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-800x586.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-160x117.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-1020x747.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-1180x865.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-960x704.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-240x176.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-375x275.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/WeedGrowRoom-520x381.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A marijuana greenhouse at one of the relatively few registered Humboldt County pot farms. \u003ccite>(Sam Harnett/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But even in more urbanized areas, where the regulatory authority of local government is less contested, authorities are still puzzling over some basic questions when it comes to taxing marijuana.\u003c/p>\n\u003cp>For example, what exactly is the “right” tax rate for the cannabis industry? Absent much economic literature on the subject, many cities and counties have established a maximum levy, while giving themselves a flexible range of rates to charge in the future. The Goldilocks-like task of finding that “just right” tax burden -- the rate that funds local regulatory requirements without pushing growers and vendors out of business -- is something that cities and counties will be experimenting with in the years to come.\u003c/p>\n\u003cp>What these county-by-county and city-by-city rates and policies will mean for the development of the industry is unclear.\u003c/p>\n\u003cp>Last March, Sonoma voters passed a gross receipts tax with a maximum rate of 10 percent for all marijuana businesses in unincorporated sections of the county. This came over the objections of the local growers alliance. But this June, Santa Rosa, the Sonoma County seat, will be voting on its own local gross receipts tax that will undercut the county rate, setting its ceiling at 8 percent. (The starting rates will range from 1 to 3 percent, depending on the type of business.)\u003c/p>\n\u003cp>With Santa Rosa positioning itself as the more business friendly alternative in the area, the city has seen marijuana investment money pour in as the vacancy rate for industrial space plummets.\u003c/p>\n\u003cp>“There’s an enormous amount of speculation going on,” says David Guhin, director of the city’s planning and economic development department. “We’re hearing stories of other smaller industrial users -- like butcher shops and other things -- that can’t expand now because they can’t compete with the money that cannabis is bringing to the table.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>According to Cara Martinson with the California State Association of Counties, cities and counties will need to coordinate to avoid creating a “patchwork” of tax rates that drives the cannabis industry in one direction or another. But she says coordination is tricky because state policy itself remains fluid.\u003c/p>\n\u003cp>The state has until the end of 2017 to craft regulations under Prop. 64 and to square them with existing rules that apply to medical marijuana, which are also in flux. Earlier this month the state released draft regulations for medical weed.\u003c/p>\n\u003cp>At the same time, lawmakers and regulators in Sacramento are struggling with some of the same logistical issues that beguile local tax authorities. Chief among them is the question of how to collect an \u003ca href=\"http://www.lao.ca.gov/BallotAnalysis/Proposition?number=64&year=2016\">expected\u003c/a> $1 billion in annual tax revenue in cash -- a question that remains unresolved. \u003c/p>\n\u003cp>The State Treasurer’s Office has put together a group to figure out how to get otherwise “unbankable” cannabis businesses their own checking accounts. Likewise, state lawmakers have introduced bills that would \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB148\">set up\u003c/a> additional tax payment centers and \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB1410\">allow\u003c/a> cannabis distributors to collect tax payments from their farmers. Some state officials have even floated a proposal to establish a state-run \u003ca href=\"http://www.willitsnews.com/article/NR/20170202/NEWS/170209996\">bank\u003c/a> -- though it is unclear whether such a bank would have an easier time than the private sector skirting federal banking regulations.\u003c/p>\n\u003cp>But for now, these are simply proposals. As state lawmakers puzzle over these questions, local governments are forging ahead.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“The fact that there’s a moving target at the state level makes it way more challenging for folks to develop thoughtful, comprehensive, local ordinances,” says Martinson.\u003c/p>\n\u003cp>Even so, David Guhin in Santa Rosa says he’s optimistic about the prospects of the local measure. That is in part because the city began offering interim permits to cannabis manufacturers and vendors as early as late 2015 while the regulations were still being hammered out. That gave city officials a year and half of lead time to figure out how big the local industry actually is, how much they can be taxed, and how much the new regulations will cost the city.\u003c/p>\n\u003cp>If the city weed tax passes in June, Guhin says Santa Rosa will have an advantage over cities and counties that only began enacting their policies after a tax was approved. Still there is more learning ahead.\u003c/p>\n\u003cp>“We get a new question every day -- one that we haven’t thought of,” he says. “But we’re trying to figure it out with everyone else.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"disqusTitle": "Massive Big Sur Landslide Makes Highway 1 Even More Impassable",
"title": "Massive Big Sur Landslide Makes Highway 1 Even More Impassable",
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"content": "\u003cp>Driving down Highway 1 along the Big Sur coast just got even more difficult after a huge landslide. If the road along one of the most beautiful stretches of California coastline could get any more closed, it just did. \u003c/p>\n\u003cp>Picture 1 million tons of rocks and dirt on the road, and you'll have an idea. \u003ca href=\"https://ww2.kqed.org/news/2017/05/23/huge-landslide-in-big-sur-causes-new-challenge-to-reopen-highway-1/\">Check out Dan Brekke's post\u003c/a>, including an aerial video.\u003c/p>\n\u003cp>Full disclosure: in February, I walked along a closed portion of Highway 1 in Big Sur and now have an even bigger appreciation for just how amazing it is that the road even stays on the side of the cliffs at all.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Driving down Highway 1 along the Big Sur coast just got even more difficult after a huge landslide. If the road along one of the most beautiful stretches of California coastline could get any more closed, it just did. \u003c/p>\n\u003cp>Picture 1 million tons of rocks and dirt on the road, and you'll have an idea. \u003ca href=\"https://ww2.kqed.org/news/2017/05/23/huge-landslide-in-big-sur-causes-new-challenge-to-reopen-highway-1/\">Check out Dan Brekke's post\u003c/a>, including an aerial video.\u003c/p>\n\u003cp>Full disclosure: in February, I walked along a closed portion of Highway 1 in Big Sur and now have an even bigger appreciation for just how amazing it is that the road even stays on the side of the cliffs at all.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"disqusTitle": "California Democrats Slam President Trump's Budget Proposal",
"title": "California Democrats Slam President Trump's Budget Proposal",
"headTitle": "The California Report | KQED News",
"content": "\u003cp>As soon as he released it, \u003ca href=\"https://www.nytimes.com/2017/05/22/us/politics/trump-budget-cuts.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=first-column-region®ion=top-news&WT.nav=top-news\">President Donald Trump's budget proposal \u003c/a>was generating blowback in California, where Democratic politicians and others attacked its cuts to programs benefiting the poor, and its trillions of dollars in tax cuts aimed mostly at the wealthy.\u003c/p>\n\u003cp>Even Republican members weren't praising the controversial spending.\u003c/p>\n\u003cp>Here's a roundup of what some California leaders are saying:\u003c/p>\n\u003cp>\u003cstrong>House Minority Leader Nancy Pelosi, D, San Francisco\u003c/strong>\u003c/p>\n\u003cp>https://twitter.com/NancyPelosi/status/867062932915572736\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003cstrong>Governor Jerry Brown:\u003c/strong>\u003c/p>\n\u003cblockquote>\u003cp>\"This budget proposal is based on utterly bogus economic assumptions. It gives a massive tax break to the wealthiest, while imposing painful and debilitating burdens on tens of millions of decent and hard-working people. It's unconscionable and un-American.\"\u003c/p>\u003c/blockquote>\n\u003cp>\u003cstrong>Fresno Republican Rep. David Valadao:\u003c/strong>\u003c/p>\n\u003cblockquote>\u003cp>\u003cspan class=\"s1\">\"With our national debt rising over nineteen trillion dollars and an annual budget deficit of over five hundred billion dollars, the United States must work to reduce federal spending and protect our economy for the next generation of Americans. \u003c/span>\u003c/p>\n\u003cp>\u003cspan class=\"s1\">However, as a Member of the House Appropriations Committee, I believe we must balance our duty to reduce spending with the needs of communities throughout the United States. It’s important to adequately fund the critical programs and services many Americans, like my constituents in California’s Central Valley, rely on every day. \u003c/span>\u003c/p>\n\u003cp>\u003cspan class=\"s1\">As the Committee proceeds through the appropriations process, I look forward to working with both Republicans and Democrats to carefully consider future funding levels and enact responsible spending policies for all Americans.”\u003c/span>\u003c/p>\u003c/blockquote>\n\u003cp>\u003cstrong>\u003cbr>\nEast Bay Democratic Rep. Eric Swalwell:\u003c/strong>\u003c/p>\n\u003cp>https://twitter.com/RepSwalwell/status/866986949877411841\u003c/p>\n\u003cp class=\"p1\">\u003cstrong>Oakland Rep. Barbara Lee:\u003c/strong>\u003c/p>\n\u003cp>https://twitter.com/RepBarbaraLee/status/867069434380386304\u003c/p>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">“I have never seen a budget so devoid of compassion and empathy for families struggling to make ends meet.\u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">This Republican agenda is Robin Hood in reverse. Their morally bankrupt budget steals health care from children and food assistance from hungry families in order to pad the pockets of billionaires and defense contractors. If their budget is enacted, afterschool programs will close. Seniors will be forced to forgo medical care. Parents will have to choose between paying the rent and putting food on the table.\u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\"> \u003c/span>\u003cspan class=\"s1\">Steve Bannon, the architect of this heinous agenda, stated his ultimate goal was ‘deconstruction of the administrative state.’ This administration will stop at nothing to dismantle the lifesaving programs that keep families safe, healthy and educated. \u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">The vision presented in this Republican budget is clear: the rich get ahead, and everyone else pays the price.\u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">Democrats stand united in rejecting this heartless vision. Instead of rigging the system further for the rich, Democrats want to invest in job creation, health care, and vital services like Meals on Wheels. The American people deserve a budget that recognizes the dignity inherent in every person.”\u003c/span>\u003c/p>\n\u003c/blockquote>\n\u003cp class=\"p1\">\u003cstrong>\u003cspan class=\"s1\">\u003ci> \u003c/i>Santa Monica Rep. Ted Lieu:\u003c/span>\u003c/strong>\u003c/p>\n\u003cp>https://twitter.com/tedlieu/status/867059373998256129\u003c/p>\n\u003cp>\u003cstrong>California Schools Chief Tom Torlakson, a Democrat: \u003c/strong>\u003c/p>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">“I give this budget an ‘F’ grade for failing public school students in California and across the nation. We need to invest more in our public schools, not slash away at programs that help students succeed.”\u003c/span>\u003c/p>\n\u003c/blockquote>\n\u003cp>\u003cstrong>Tom Steyer, president of NextGen Climate and a big Democratic donor:\u003c/strong>\u003c/p>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">“Donald Trump’s budget is a con of epic proportions, proof that his Administration is hellbent on rewarding wealthy special interests by defrauding the American people. Trump told voters that the economy was rigged against them, but his budget would make that more true than ever before, weakening our economy, increasing inequality and hurting the most vulnerable Americans.\u003c/span>\u003c/p>\n\u003cp>“Hard-working Americans—not corporate CEOs—need a raise. It is inexcusable and immoral to reward wealthy and powerful corporations while gutting crucial public programs that millions of Americans rely on for basic necessities like food. A budget is a reflection of our priorities: We need a federal budget that supports our most vulnerable communities, makes smart investments in our future and creates a more just economy for all Americans.”\u003c/p>\u003c/blockquote>\n\u003cp>\u003c/p>\n\u003cp class=\"p1\">\u003cstrong>Ben Monterroso, executive director of Mi Familia Vota, which works for increased Latino civil participation\u003c/strong>\u003c/p>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">\"(This budget) will disappoint everyone, including those who voted for him, unless they are wealthy. \u003c/span>\u003cspan class=\"s1\">Four months into Trump’s administration, the Latino and immigrant communities have learned to push back on regular assaults from the Trump administration. But the full budget released today should wake up all Americans who have been left out of Trumps’s ‘America First,’ agenda, as outlined in his budget.\"\u003c/span>\u003c/p>\n\u003c/blockquote>\n\n",
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"excerpt": "Trump’s budget was attacked for its cuts to programs benefiting the poor, and its trillions of dollars in tax cuts aimed mostly at the wealthy.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>As soon as he released it, \u003ca href=\"https://www.nytimes.com/2017/05/22/us/politics/trump-budget-cuts.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=first-column-region®ion=top-news&WT.nav=top-news\">President Donald Trump's budget proposal \u003c/a>was generating blowback in California, where Democratic politicians and others attacked its cuts to programs benefiting the poor, and its trillions of dollars in tax cuts aimed mostly at the wealthy.\u003c/p>\n\u003cp>Even Republican members weren't praising the controversial spending.\u003c/p>\n\u003cp>Here's a roundup of what some California leaders are saying:\u003c/p>\n\u003cp>\u003cstrong>House Minority Leader Nancy Pelosi, D, San Francisco\u003c/strong>\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cstrong>Governor Jerry Brown:\u003c/strong>\u003c/p>\n\u003cblockquote>\u003cp>\"This budget proposal is based on utterly bogus economic assumptions. It gives a massive tax break to the wealthiest, while imposing painful and debilitating burdens on tens of millions of decent and hard-working people. It's unconscionable and un-American.\"\u003c/p>\u003c/blockquote>\n\u003cp>\u003cstrong>Fresno Republican Rep. David Valadao:\u003c/strong>\u003c/p>\n\u003cblockquote>\u003cp>\u003cspan class=\"s1\">\"With our national debt rising over nineteen trillion dollars and an annual budget deficit of over five hundred billion dollars, the United States must work to reduce federal spending and protect our economy for the next generation of Americans. \u003c/span>\u003c/p>\n\u003cp>\u003cspan class=\"s1\">However, as a Member of the House Appropriations Committee, I believe we must balance our duty to reduce spending with the needs of communities throughout the United States. It’s important to adequately fund the critical programs and services many Americans, like my constituents in California’s Central Valley, rely on every day. \u003c/span>\u003c/p>\n\u003cp>\u003cspan class=\"s1\">As the Committee proceeds through the appropriations process, I look forward to working with both Republicans and Democrats to carefully consider future funding levels and enact responsible spending policies for all Americans.”\u003c/span>\u003c/p>\u003c/blockquote>\n\u003cp>\u003cstrong>\u003cbr>\nEast Bay Democratic Rep. Eric Swalwell:\u003c/strong>\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp class=\"p1\">\u003cstrong>Oakland Rep. Barbara Lee:\u003c/strong>\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">“I have never seen a budget so devoid of compassion and empathy for families struggling to make ends meet.\u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">This Republican agenda is Robin Hood in reverse. Their morally bankrupt budget steals health care from children and food assistance from hungry families in order to pad the pockets of billionaires and defense contractors. If their budget is enacted, afterschool programs will close. Seniors will be forced to forgo medical care. Parents will have to choose between paying the rent and putting food on the table.\u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\"> \u003c/span>\u003cspan class=\"s1\">Steve Bannon, the architect of this heinous agenda, stated his ultimate goal was ‘deconstruction of the administrative state.’ This administration will stop at nothing to dismantle the lifesaving programs that keep families safe, healthy and educated. \u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">The vision presented in this Republican budget is clear: the rich get ahead, and everyone else pays the price.\u003c/span>\u003c/p>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">Democrats stand united in rejecting this heartless vision. Instead of rigging the system further for the rich, Democrats want to invest in job creation, health care, and vital services like Meals on Wheels. The American people deserve a budget that recognizes the dignity inherent in every person.”\u003c/span>\u003c/p>\n\u003c/blockquote>\n\u003cp class=\"p1\">\u003cstrong>\u003cspan class=\"s1\">\u003ci> \u003c/i>Santa Monica Rep. Ted Lieu:\u003c/span>\u003c/strong>\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>\u003cstrong>California Schools Chief Tom Torlakson, a Democrat: \u003c/strong>\u003c/p>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">“I give this budget an ‘F’ grade for failing public school students in California and across the nation. We need to invest more in our public schools, not slash away at programs that help students succeed.”\u003c/span>\u003c/p>\n\u003c/blockquote>\n\u003cp>\u003cstrong>Tom Steyer, president of NextGen Climate and a big Democratic donor:\u003c/strong>\u003c/p>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">“Donald Trump’s budget is a con of epic proportions, proof that his Administration is hellbent on rewarding wealthy special interests by defrauding the American people. Trump told voters that the economy was rigged against them, but his budget would make that more true than ever before, weakening our economy, increasing inequality and hurting the most vulnerable Americans.\u003c/span>\u003c/p>\n\u003cp>“Hard-working Americans—not corporate CEOs—need a raise. It is inexcusable and immoral to reward wealthy and powerful corporations while gutting crucial public programs that millions of Americans rely on for basic necessities like food. A budget is a reflection of our priorities: We need a federal budget that supports our most vulnerable communities, makes smart investments in our future and creates a more just economy for all Americans.”\u003c/p>\u003c/blockquote>\n\u003cp>\u003c/p>\n\u003cp class=\"p1\">\u003cstrong>Ben Monterroso, executive director of Mi Familia Vota, which works for increased Latino civil participation\u003c/strong>\u003c/p>\n\u003cblockquote>\n\u003cp class=\"p1\">\u003cspan class=\"s1\">\"(This budget) will disappoint everyone, including those who voted for him, unless they are wealthy. \u003c/span>\u003cspan class=\"s1\">Four months into Trump’s administration, the Latino and immigrant communities have learned to push back on regular assaults from the Trump administration. But the full budget released today should wake up all Americans who have been left out of Trumps’s ‘America First,’ agenda, as outlined in his budget.\"\u003c/span>\u003c/p>\n\u003c/blockquote>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Why Are Fewer Loans Going to Minority Business Owners?",
"title": "Why Are Fewer Loans Going to Minority Business Owners?",
"headTitle": "The California Report | KQED News",
"content": "\u003cp>It took Leonard Stephens more than three months to get ready to apply for a loan guaranteed by the Small Business Administration to expand his Oakland-based media company, OUR TV.\u003c/p>\n\u003cp>On a recent day, OUR TV's programming included documentaries about celebrities like Michael Jordan and James Brown, high school games in the Oakland Athletic League and locally produced talk shows featuring black entrepreneurs and professionals.\u003c/p>\n\u003cp>The goal is to \"inspire\" and entertain the hundreds of thousands of Bay Area households that OUR TV reaches through cable channels, said Stephens. Viewership is increasing through the company's online streaming as well, he added.\u003c/p>\n\u003cp>\"People are watching us all over the world. I looked at the analytics yesterday,\" said Stephens, who plans to use the $500,000 loan he is applying for to build infrastructure and hire employees to reach audiences in Houston, Detroit and other cities. \"The loan is very key. You have to have finances to be able to expand.\"\u003c/p>\n\u003cp>If Stephens succeeds, he will become one of the few African-Americans receiving SBA loans in California.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The SBA, which aims to help support small businesses so they can create more jobs, guaranteed $5.1 billion in loans in California last year -- most of it through large banks. Only about 2 percent of those borrowers were African-Americans, a sharp drop from pre-recession levels. Latinos, who own more than 23 percent of businesses in the state, received just 13 percent of those loans.\u003c/p>\n\u003cp>Officials at the SBA say it's challenging to increase sound credit for entrepreneurs in the communities hardest hit by the Great Recession. They argue the agency is trying to expand its efforts to extend more loans to minority business owners through institutions other than banks, especially in lower-income areas.\u003c/p>\n\u003cp>Critics counter that the federal agency should do more to increase the flow of capital to Latino and African-American businesses, which are an \u003ca href=\"https://www.mbda.gov/news/press-releases/2015/08/us-minority-owned-firms-continue-outpace-growth-nonminority-owned-firms\" target=\"_blank\" rel=\"noopener noreferrer\">increasing share\u003c/a> of the U.S. economy, but are \u003ca href=\"http://www.kauffman.org/microsites/state-of-the-field/topics/background-of-entrepreneurs/demographics/race\" target=\"_blank\" rel=\"noopener noreferrer\">more likely to fail\u003c/a> partly because of lower access to capital.\u003c/p>\n\u003cp>[SBALoans]\u003c/p>\n\u003cp>\u003cstrong>Navigating a Bank Loan Application\u003c/strong>\u003c/p>\n\u003cp>The SBA guarantees loans for up to $5 million. If the borrower doesn't repay, the agency promises to cover between 75 and 85 percent of the tab. The goal is to encourage banks and other lenders to take a greater risk on borrowers who have growth potential, but might not ordinarily qualify for financing.\u003c/p>\n\u003cp>That's why Stephens, a member of the Oakland African American Chamber of Commerce, believes he has a greater chance of qualifying for an SBA-backed loan than a regular bank loan.\u003c/p>\n\u003cfigure id=\"attachment_11463434\" class=\"wp-caption alignnone\" style=\"max-width: 2952px\">\u003cimg class=\"wp-image-11463434 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/RS25330_alt_581.jpg\" alt=\"\" width=\"2952\" height=\"2252\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581.jpg 2952w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-160x122.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-800x610.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-1020x778.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-1920x1465.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-1180x900.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-960x732.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-240x183.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-375x286.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-520x397.jpg 520w\" sizes=\"(max-width: 2952px) 100vw, 2952px\">\u003cfigcaption class=\"wp-caption-text\">Keith Curry clips a microphone on Ash Solar, from the nonprofit GO Public Schools, as host Robert Harris looks on at the set of OUR TV's \"All About Community\" show on March 14, 2017. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At the outset, Stephens consulted with friends and his mother, who worked at a large bank for 42 years, about the best strategy to pursue financing.\u003c/p>\n\u003cp>Stephens has financed OUR TV through sponsorships, the rental of airtime, and savings from a separate consulting business. He knew the loan application process could be difficult.\u003c/p>\n\u003cp>Minorities are less likely to apply for bank loans for fear of rejection, \u003ca href=\"http://journals.sagepub.com/doi/abs/10.1177/0891242415620484\" target=\"_blank\" rel=\"noopener noreferrer\">according\u003c/a> to various studies. When they do apply, they get turned down more frequently than equally creditworthy white-owned firms.\u003c/p>\n\u003cp>Stephens decided he needed to enlist extra help in order to apply: He hired brokers.\u003c/p>\n\u003cp>\"The brokers are there to utilize some of the banks they've worked with before, that they have a good relationship with,\" said Stephens, who hired the same firm recommended by a friend who got a loan. \"A lot of things that they've told me make a lot of sense.\"\u003c/p>\n\u003cp>Their advice included submitting the application to local community banks, instead of national ones, and paying for an accountant to organize years' worth of OUR TV's financial documents.\u003c/p>\n\u003cp>So far, Stephens says he has paid $30,000 to the accountant and brokers in his bid.\u003c/p>\n\u003cp>\"I've invested a lot of money on these brokers,\" said Stephens, who is waiting to hear back from the SBA and bank on his loan application. \"Talk to me in a few weeks, and then I'll have a better, bigger perspective and hopefully a bigger smile on my face by then.\"\u003c/p>\n\u003cp>\u003cstrong>System 'Not Working,' Say Critics\u003c/strong>\u003c/p>\n\u003cp>The SBA is the only federal agency collecting data on bank business loans by ethnicity. The small percentage of minorities among SBA borrowers is a troubling sign for the U.S. economy, said Alicia Robb, an economist who studies minority-owned enterprises and is a researcher at UC Berkeley.\u003c/p>\n\u003cp>\"We are looking at a system that's not working,\" Robb said. \"The whole reason for the SBA program is to try and get people who are underrepresented in business lending to get these kinds of loans.\"\u003c/p>\n\u003cp>Nationwide, the number of minority-owned firms has grown significantly to become about 29 percent of all businesses, \u003ca href=\"https://www.sba.gov/sites/default/files/advocacy/Minority-Owned-Businesses-in-the-US.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according to the U.S. Census.\u003c/a> But African-American and Latino-owned startups have higher failure rates than other enterprises partly because of lower access to capital, \u003ca href=\"http://www.kauffman.org/what-we-do/resources/entrepreneurship-policy-digest/including-people-of-color-in-the-promise-of-entrepreneurship\" target=\"_blank\" rel=\"noopener noreferrer\">according to research.\u003c/a>\u003c/p>\n\u003cp>\"We need the government to really focus on these huge gaps that we see in the market,\" Robb said. \"If these minority businesses had the capital they need, they could create more jobs in their communities.\"\u003c/p>\n\u003cp>\u003cstrong>The SBA Responds\u003c/strong>\u003c/p>\n\u003cp>Minority entrepreneurs in lower-income communities have been less able to compete for loans from big banks because of lingering impacts from the Great Recession, said Mark Quinn, who directs the SBA for Northern California.\u003c/p>\n\u003cp>\"Low-income communities had credit scores affected, lenders became more conservative, regulators told lenders they wanted to see more cautious lending,\" Quinn said. \"That combination has ended up reducing the amount and share of our lending to African-American and Latino businesses.\"\u003c/p>\n\u003cp>Those who lost homes -- often their largest asset -- during the recession also lost the ability to use those properties as collateral for loans from financial institutions.\u003c/p>\n\u003cp>At the same time, banks have been reducing the number of business loans under $1 million while increasing the market share for loans above that amount because they are more profitable, \u003ca href=\"http://www.hbs.edu/faculty/Publication%20Files/15-004_09b1bf8b-eb2a-4e63-9c4e-0374f770856f.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according to research.\u003c/a> Quinn said that dynamic has left out more Latino and African-American business owners with very small ventures that require less capital.\u003c/p>\n\u003cp>\"You can’t get really the large for-profit lenders to see that it’s profitable to do lots of small loans,\" Quinn said.\u003c/p>\n\u003cp>Wells Fargo, one of the top providers of SBA-backed financing in the country, reduced by half the number of all business loans for under $1 million in the Oakland, Fremont and Hayward areas since 2008, according to loan origination \u003ca href=\"https://www.ffiec.gov/craadweb/aggregate.aspx?Activity=5&Year=2015&State=06&Msa=36084&County=001&strStatetext=06-CALIFORNIA%20(CA)&MSAtext=&Countytext=001+-+ALAMEDA+COUNTY\" target=\"_blank\" rel=\"noopener noreferrer\">figures \u003c/a>reported under the Community Reinvestment Act. Other large banks show a similar trend.\u003c/p>\n\u003cp>A spokesman for Wells Fargo wrote that fewer small businesses applied for financing in 2015 than in 2007, though the bank has started to see an uptick in the number of applicants who are creditworthy.\u003c/p>\n\u003cp>\"Small businesses were hit harder in the recession and have come back more slowly than larger businesses in the recovery,\" wrote Ruben Pulido, a spokesman for Wells Fargo in San Francisco.\u003c/p>\n\u003cp>\u003cstrong>Tackling the Problem\u003c/strong>\u003c/p>\n\u003cp>While SBA-guaranteed loans are a small fraction of all the business lending going in the country, the agency's figures offer a glimpse of which businesses are able to grow enough to qualify for bank loans, Quinn said.\u003c/p>\n\u003cp>He said the SBA is trying various tactics to tackle the issue, including continuing to offer technical support to prepare entrepreneurs on finance and how to qualify for capital; and partnering with Community Development Financial Institutions (CDFIS) and microlenders to make smaller loans of under $250,000.\u003c/p>\n\u003cp>Many African-American and Latino-owned businesses are \"very tiny,\" he said. \"We look to the nonprofit world, lenders whose mission is to reach borrowers in small business communities that we can’t get to through large national banks.\"\u003c/p>\n\u003cp>The SBA started a pilot loan program in 2011 that is reaching a greater percentage of black and Latino borrowers, called Community Advantage. Still, that and a microlending initiative were only 5 percent of all of SBA-backed loans in California, according to the agency's figures.\u003c/p>\n\u003cp>\"Nonprofits depend on few people doing fabulous work in their communities,\" Quinn said. \"But the challenge is really how you can scale the volume of activity there.\"\u003c/p>\n\u003cfigure id=\"attachment_11463455\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"wp-image-11463455 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/RS25414_IMG_0541-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-520x347.jpg 520w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Dominica Rice serves drinks at her restaurant Cosecha as Rene Sanchez and Panfila Ceja work behind her and customers wait in line on March 9, 2017. Rice has already repaid her SBA loan. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Reaching Minority Entrepreneurs\u003c/strong>\u003c/p>\n\u003cp>SBA-backed loans to the smallest borrowers are originated by organizations like Main Street Launch, a CDFI near downtown Oakland that focuses on veterans and entrepreneurs in lower-income areas.\u003c/p>\n\u003cp>\"We have more flexibility and a closer relation to the borrower that allows us to take the additional risk,\" said Main Street Launch President and CEO Jacob Singer. \"Transaction costs are still high, but we as nonprofits are able to subsidize through philanthropic activity mostly from the banks.\"\u003c/p>\n\u003cp>Main Street Launch receives about $2 million each year in loans and grants from large banks, such as Wells Fargo and Chase. That is one way large financial institutions comply with the Community Reinvestment Act, a federal law that obligates banks to help meet the credit needs of the communities in which they operate.\u003c/p>\n\u003cp>Unlike banks, Main Street works with clients to put together their financial projections, review goals and understand opportunities for their business, Singer said. The organization places a lighter emphasis on potential borrowers' assets and credit scores, but loan officers must still be confident clients will be able to repay, Singer said.\u003c/p>\n\u003cp>\"It’s hard work to qualify for capital, and not everyone should be a small-business person,\" Singer said. \"One of the important things we and our peers do is to not issue credit to someone who is not ready. That can be as valuable a service as giving someone a loan.\"\u003c/p>\n\u003cp>Out of 350 inquiries Main Street Launch received last year, they funded 76 loans, which they consider a \"pretty normal rate\" for lending.\u003c/p>\n\u003cp>It took years of research before Dominica Rice applied successfully for a $35,000 loan through Main Street Launch to start her first business, Cosecha, in the city's Old Oakland neighborhood.\u003c/p>\n\u003cp>The self-described \"very cautious\" chef sought tutoring from local nonprofits, saved $10,000 and spoke to former employers about starting a business -- all while holding a job.\u003c/p>\n\u003cp>\"I took almost five years of interviewing people who I've known and worked with who own restaurants,\" said Rice, who started working in the restaurant industry as a teen in Los Angeles. \"What mistakes have you made, how did you structure your lease?\"\u003c/p>\n\u003cp>Rice described the SBA \u003ca href=\"https://www.sba.gov/starting-business/finance-your-business/loans/business-loan-application-checklist\">loan application\u003c/a> as \"daunting\" -- it can take at least three weeks for the most prepared applicants. She said entrepreneurs must be \"upfront\" and push for the technical advice and help they need from the SBA and nonprofit lenders, to make sure they get that process right.\u003c/p>\n\u003cp>\"Tell them ... I'm a dyslexic Chicana from L.A. Like, this is not my thing,\" said Rice, who has already repaid her loan. \"I'm not the person who's filling out applications or writing essays about how and why you should open a restaurant. I am the person who climbs a mountain to meet a \u003cem>señora\u003c/em> who makes \u003cem>mole. \u003c/em>That's who I am.\"\u003c/p>\n\u003cfigure id=\"attachment_11459812\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"wp-image-11459812 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/RS25264_IMG_0551-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-520x347.jpg 520w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Dominica Rice holds a plate of crispy fish tacos with avocado and beans at her restaurant, which she opened after years of planning. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Dishes with Mexican mole sauce are popular in Rice's restaurant, where a long line of customers queued up, awaiting their lunch on a recent afternoon. Eight cooks and employees, most of them Latinas, made fresh tortillas, deep-fried fish fillets and assembled colorful salads in the open kitchen.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\"I'm really proud that I've produced jobs for all these moms and grandmas,\" said Rice, whose daughter is 12. \"Business is definitely growing and we have way more staff. Most of my staff is already at $15 an hour or more.\"\u003c/p>\n\n",
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"excerpt": "Black and Latino entrepreneurs striving to start and grow businesses in California represent a tiny fraction of the borrowers of SBA-backed bank loans, which offer some of the most affordable financing and best repayment terms in the market.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>It took Leonard Stephens more than three months to get ready to apply for a loan guaranteed by the Small Business Administration to expand his Oakland-based media company, OUR TV.\u003c/p>\n\u003cp>On a recent day, OUR TV's programming included documentaries about celebrities like Michael Jordan and James Brown, high school games in the Oakland Athletic League and locally produced talk shows featuring black entrepreneurs and professionals.\u003c/p>\n\u003cp>The goal is to \"inspire\" and entertain the hundreds of thousands of Bay Area households that OUR TV reaches through cable channels, said Stephens. Viewership is increasing through the company's online streaming as well, he added.\u003c/p>\n\u003cp>\"People are watching us all over the world. I looked at the analytics yesterday,\" said Stephens, who plans to use the $500,000 loan he is applying for to build infrastructure and hire employees to reach audiences in Houston, Detroit and other cities. \"The loan is very key. You have to have finances to be able to expand.\"\u003c/p>\n\u003cp>If Stephens succeeds, he will become one of the few African-Americans receiving SBA loans in California.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The SBA, which aims to help support small businesses so they can create more jobs, guaranteed $5.1 billion in loans in California last year -- most of it through large banks. Only about 2 percent of those borrowers were African-Americans, a sharp drop from pre-recession levels. Latinos, who own more than 23 percent of businesses in the state, received just 13 percent of those loans.\u003c/p>\n\u003cp>Officials at the SBA say it's challenging to increase sound credit for entrepreneurs in the communities hardest hit by the Great Recession. They argue the agency is trying to expand its efforts to extend more loans to minority business owners through institutions other than banks, especially in lower-income areas.\u003c/p>\n\u003cp>Critics counter that the federal agency should do more to increase the flow of capital to Latino and African-American businesses, which are an \u003ca href=\"https://www.mbda.gov/news/press-releases/2015/08/us-minority-owned-firms-continue-outpace-growth-nonminority-owned-firms\" target=\"_blank\" rel=\"noopener noreferrer\">increasing share\u003c/a> of the U.S. economy, but are \u003ca href=\"http://www.kauffman.org/microsites/state-of-the-field/topics/background-of-entrepreneurs/demographics/race\" target=\"_blank\" rel=\"noopener noreferrer\">more likely to fail\u003c/a> partly because of lower access to capital.\u003c/p>\n\u003cp>[SBALoans]\u003c/p>\n\u003cp>\u003cstrong>Navigating a Bank Loan Application\u003c/strong>\u003c/p>\n\u003cp>The SBA guarantees loans for up to $5 million. If the borrower doesn't repay, the agency promises to cover between 75 and 85 percent of the tab. The goal is to encourage banks and other lenders to take a greater risk on borrowers who have growth potential, but might not ordinarily qualify for financing.\u003c/p>\n\u003cp>That's why Stephens, a member of the Oakland African American Chamber of Commerce, believes he has a greater chance of qualifying for an SBA-backed loan than a regular bank loan.\u003c/p>\n\u003cfigure id=\"attachment_11463434\" class=\"wp-caption alignnone\" style=\"max-width: 2952px\">\u003cimg class=\"wp-image-11463434 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/RS25330_alt_581.jpg\" alt=\"\" width=\"2952\" height=\"2252\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581.jpg 2952w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-160x122.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-800x610.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-1020x778.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-1920x1465.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-1180x900.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-960x732.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-240x183.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-375x286.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25330_alt_581-520x397.jpg 520w\" sizes=\"(max-width: 2952px) 100vw, 2952px\">\u003cfigcaption class=\"wp-caption-text\">Keith Curry clips a microphone on Ash Solar, from the nonprofit GO Public Schools, as host Robert Harris looks on at the set of OUR TV's \"All About Community\" show on March 14, 2017. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At the outset, Stephens consulted with friends and his mother, who worked at a large bank for 42 years, about the best strategy to pursue financing.\u003c/p>\n\u003cp>Stephens has financed OUR TV through sponsorships, the rental of airtime, and savings from a separate consulting business. He knew the loan application process could be difficult.\u003c/p>\n\u003cp>Minorities are less likely to apply for bank loans for fear of rejection, \u003ca href=\"http://journals.sagepub.com/doi/abs/10.1177/0891242415620484\" target=\"_blank\" rel=\"noopener noreferrer\">according\u003c/a> to various studies. When they do apply, they get turned down more frequently than equally creditworthy white-owned firms.\u003c/p>\n\u003cp>Stephens decided he needed to enlist extra help in order to apply: He hired brokers.\u003c/p>\n\u003cp>\"The brokers are there to utilize some of the banks they've worked with before, that they have a good relationship with,\" said Stephens, who hired the same firm recommended by a friend who got a loan. \"A lot of things that they've told me make a lot of sense.\"\u003c/p>\n\u003cp>Their advice included submitting the application to local community banks, instead of national ones, and paying for an accountant to organize years' worth of OUR TV's financial documents.\u003c/p>\n\u003cp>So far, Stephens says he has paid $30,000 to the accountant and brokers in his bid.\u003c/p>\n\u003cp>\"I've invested a lot of money on these brokers,\" said Stephens, who is waiting to hear back from the SBA and bank on his loan application. \"Talk to me in a few weeks, and then I'll have a better, bigger perspective and hopefully a bigger smile on my face by then.\"\u003c/p>\n\u003cp>\u003cstrong>System 'Not Working,' Say Critics\u003c/strong>\u003c/p>\n\u003cp>The SBA is the only federal agency collecting data on bank business loans by ethnicity. The small percentage of minorities among SBA borrowers is a troubling sign for the U.S. economy, said Alicia Robb, an economist who studies minority-owned enterprises and is a researcher at UC Berkeley.\u003c/p>\n\u003cp>\"We are looking at a system that's not working,\" Robb said. \"The whole reason for the SBA program is to try and get people who are underrepresented in business lending to get these kinds of loans.\"\u003c/p>\n\u003cp>Nationwide, the number of minority-owned firms has grown significantly to become about 29 percent of all businesses, \u003ca href=\"https://www.sba.gov/sites/default/files/advocacy/Minority-Owned-Businesses-in-the-US.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according to the U.S. Census.\u003c/a> But African-American and Latino-owned startups have higher failure rates than other enterprises partly because of lower access to capital, \u003ca href=\"http://www.kauffman.org/what-we-do/resources/entrepreneurship-policy-digest/including-people-of-color-in-the-promise-of-entrepreneurship\" target=\"_blank\" rel=\"noopener noreferrer\">according to research.\u003c/a>\u003c/p>\n\u003cp>\"We need the government to really focus on these huge gaps that we see in the market,\" Robb said. \"If these minority businesses had the capital they need, they could create more jobs in their communities.\"\u003c/p>\n\u003cp>\u003cstrong>The SBA Responds\u003c/strong>\u003c/p>\n\u003cp>Minority entrepreneurs in lower-income communities have been less able to compete for loans from big banks because of lingering impacts from the Great Recession, said Mark Quinn, who directs the SBA for Northern California.\u003c/p>\n\u003cp>\"Low-income communities had credit scores affected, lenders became more conservative, regulators told lenders they wanted to see more cautious lending,\" Quinn said. \"That combination has ended up reducing the amount and share of our lending to African-American and Latino businesses.\"\u003c/p>\n\u003cp>Those who lost homes -- often their largest asset -- during the recession also lost the ability to use those properties as collateral for loans from financial institutions.\u003c/p>\n\u003cp>At the same time, banks have been reducing the number of business loans under $1 million while increasing the market share for loans above that amount because they are more profitable, \u003ca href=\"http://www.hbs.edu/faculty/Publication%20Files/15-004_09b1bf8b-eb2a-4e63-9c4e-0374f770856f.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according to research.\u003c/a> Quinn said that dynamic has left out more Latino and African-American business owners with very small ventures that require less capital.\u003c/p>\n\u003cp>\"You can’t get really the large for-profit lenders to see that it’s profitable to do lots of small loans,\" Quinn said.\u003c/p>\n\u003cp>Wells Fargo, one of the top providers of SBA-backed financing in the country, reduced by half the number of all business loans for under $1 million in the Oakland, Fremont and Hayward areas since 2008, according to loan origination \u003ca href=\"https://www.ffiec.gov/craadweb/aggregate.aspx?Activity=5&Year=2015&State=06&Msa=36084&County=001&strStatetext=06-CALIFORNIA%20(CA)&MSAtext=&Countytext=001+-+ALAMEDA+COUNTY\" target=\"_blank\" rel=\"noopener noreferrer\">figures \u003c/a>reported under the Community Reinvestment Act. Other large banks show a similar trend.\u003c/p>\n\u003cp>A spokesman for Wells Fargo wrote that fewer small businesses applied for financing in 2015 than in 2007, though the bank has started to see an uptick in the number of applicants who are creditworthy.\u003c/p>\n\u003cp>\"Small businesses were hit harder in the recession and have come back more slowly than larger businesses in the recovery,\" wrote Ruben Pulido, a spokesman for Wells Fargo in San Francisco.\u003c/p>\n\u003cp>\u003cstrong>Tackling the Problem\u003c/strong>\u003c/p>\n\u003cp>While SBA-guaranteed loans are a small fraction of all the business lending going in the country, the agency's figures offer a glimpse of which businesses are able to grow enough to qualify for bank loans, Quinn said.\u003c/p>\n\u003cp>He said the SBA is trying various tactics to tackle the issue, including continuing to offer technical support to prepare entrepreneurs on finance and how to qualify for capital; and partnering with Community Development Financial Institutions (CDFIS) and microlenders to make smaller loans of under $250,000.\u003c/p>\n\u003cp>Many African-American and Latino-owned businesses are \"very tiny,\" he said. \"We look to the nonprofit world, lenders whose mission is to reach borrowers in small business communities that we can’t get to through large national banks.\"\u003c/p>\n\u003cp>The SBA started a pilot loan program in 2011 that is reaching a greater percentage of black and Latino borrowers, called Community Advantage. Still, that and a microlending initiative were only 5 percent of all of SBA-backed loans in California, according to the agency's figures.\u003c/p>\n\u003cp>\"Nonprofits depend on few people doing fabulous work in their communities,\" Quinn said. \"But the challenge is really how you can scale the volume of activity there.\"\u003c/p>\n\u003cfigure id=\"attachment_11463455\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"wp-image-11463455 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/RS25414_IMG_0541-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25414_IMG_0541-qut-520x347.jpg 520w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Dominica Rice serves drinks at her restaurant Cosecha as Rene Sanchez and Panfila Ceja work behind her and customers wait in line on March 9, 2017. Rice has already repaid her SBA loan. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Reaching Minority Entrepreneurs\u003c/strong>\u003c/p>\n\u003cp>SBA-backed loans to the smallest borrowers are originated by organizations like Main Street Launch, a CDFI near downtown Oakland that focuses on veterans and entrepreneurs in lower-income areas.\u003c/p>\n\u003cp>\"We have more flexibility and a closer relation to the borrower that allows us to take the additional risk,\" said Main Street Launch President and CEO Jacob Singer. \"Transaction costs are still high, but we as nonprofits are able to subsidize through philanthropic activity mostly from the banks.\"\u003c/p>\n\u003cp>Main Street Launch receives about $2 million each year in loans and grants from large banks, such as Wells Fargo and Chase. That is one way large financial institutions comply with the Community Reinvestment Act, a federal law that obligates banks to help meet the credit needs of the communities in which they operate.\u003c/p>\n\u003cp>Unlike banks, Main Street works with clients to put together their financial projections, review goals and understand opportunities for their business, Singer said. The organization places a lighter emphasis on potential borrowers' assets and credit scores, but loan officers must still be confident clients will be able to repay, Singer said.\u003c/p>\n\u003cp>\"It’s hard work to qualify for capital, and not everyone should be a small-business person,\" Singer said. \"One of the important things we and our peers do is to not issue credit to someone who is not ready. That can be as valuable a service as giving someone a loan.\"\u003c/p>\n\u003cp>Out of 350 inquiries Main Street Launch received last year, they funded 76 loans, which they consider a \"pretty normal rate\" for lending.\u003c/p>\n\u003cp>It took years of research before Dominica Rice applied successfully for a $35,000 loan through Main Street Launch to start her first business, Cosecha, in the city's Old Oakland neighborhood.\u003c/p>\n\u003cp>The self-described \"very cautious\" chef sought tutoring from local nonprofits, saved $10,000 and spoke to former employers about starting a business -- all while holding a job.\u003c/p>\n\u003cp>\"I took almost five years of interviewing people who I've known and worked with who own restaurants,\" said Rice, who started working in the restaurant industry as a teen in Los Angeles. \"What mistakes have you made, how did you structure your lease?\"\u003c/p>\n\u003cp>Rice described the SBA \u003ca href=\"https://www.sba.gov/starting-business/finance-your-business/loans/business-loan-application-checklist\">loan application\u003c/a> as \"daunting\" -- it can take at least three weeks for the most prepared applicants. She said entrepreneurs must be \"upfront\" and push for the technical advice and help they need from the SBA and nonprofit lenders, to make sure they get that process right.\u003c/p>\n\u003cp>\"Tell them ... I'm a dyslexic Chicana from L.A. Like, this is not my thing,\" said Rice, who has already repaid her loan. \"I'm not the person who's filling out applications or writing essays about how and why you should open a restaurant. I am the person who climbs a mountain to meet a \u003cem>señora\u003c/em> who makes \u003cem>mole. \u003c/em>That's who I am.\"\u003c/p>\n\u003cfigure id=\"attachment_11459812\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg class=\"wp-image-11459812 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/05/RS25264_IMG_0551-qut.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-960x640.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-240x160.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-375x250.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/05/RS25264_IMG_0551-qut-520x347.jpg 520w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Dominica Rice holds a plate of crispy fish tacos with avocado and beans at her restaurant, which she opened after years of planning. \u003ccite>(Farida Jhabvala Romero/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Dishes with Mexican mole sauce are popular in Rice's restaurant, where a long line of customers queued up, awaiting their lunch on a recent afternoon. Eight cooks and employees, most of them Latinas, made fresh tortillas, deep-fried fish fillets and assembled colorful salads in the open kitchen.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"I'm really proud that I've produced jobs for all these moms and grandmas,\" said Rice, whose daughter is 12. \"Business is definitely growing and we have way more staff. Most of my staff is already at $15 an hour or more.\"\u003c/p>\n\n\u003c/div>\u003c/p>",
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"order": 9
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"info": "What kind of no sabo word is Hyphenación? For us, it’s about living within a hyphenation. Like being a third-gen Mexican-American from the Texas border now living that Bay Area Chicano life. Like Xorje! Each week we bring together a couple of hyphenated Latinos to talk all about personal life choices: family, careers, relationships, belonging … everything is on the table. ",
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"info": "The Political Mind of Jerry Brown brings listeners the wisdom of the former Governor, Mayor, and presidential candidate. Scott Shafer interviewed Brown for more than 40 hours, covering the former governor's life and half-century in the political game – and Brown has some lessons he'd like to share. ",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/The-Political-Mind-of-Jerry-Brown-Podcast-Tile-703x703-1.jpg",
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"order": 18
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"marketplace": {
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"title": "Marketplace",
"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
"airtime": "MON-FRI 4pm-4:30pm, MON-WED 6:30pm-7pm",
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"masters-of-scale": {
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"title": "Masters of Scale",
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"airtime": "Every other Wednesday June 12 through October 16 at 8pm (repeats Thursdays at 2am)",
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},
"mindshift": {
"id": "mindshift",
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"info": "The MindShift podcast explores the innovations in education that are shaping how kids learn. Hosts Ki Sung and Katrina Schwartz introduce listeners to educators, researchers, parents and students who are developing effective ways to improve how kids learn. We cover topics like how fed-up administrators are developing surprising tactics to deal with classroom disruptions; how listening to podcasts are helping kids develop reading skills; the consequences of overparenting; and why interdisciplinary learning can engage students on all ends of the traditional achievement spectrum. This podcast is part of the MindShift education site, a division of KQED News. KQED is an NPR/PBS member station based in San Francisco. You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>",
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"order": 12
},
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"google": "https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkM1NzY0NjAwNDI5",
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"morning-edition": {
"id": "morning-edition",
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"info": "\u003cem>Morning Edition\u003c/em> takes listeners around the country and the world with multi-faceted stories and commentaries every weekday. Hosts Steve Inskeep, David Greene and Rachel Martin bring you the latest breaking news and features to prepare you for the day.",
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"onourwatch": {
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"title": "On Our Watch",
"tagline": "Deeply-reported investigative journalism",
"info": "For decades, the process for how police police themselves has been inconsistent – if not opaque. In some states, like California, these proceedings were completely hidden. After a new police transparency law unsealed scores of internal affairs files, our reporters set out to examine these cases and the shadow world of police discipline. On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. Is it the officers, or the public they've sworn to serve?",
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"order": 11
},
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"on-the-media": {
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"title": "On The Media",
"info": "Our weekly podcast explores how the media 'sausage' is made, casts an incisive eye on fluctuations in the marketplace of ideas, and examines threats to the freedom of information and expression in America and abroad. For one hour a week, the show tries to lift the veil from the process of \"making media,\" especially news media, because it's through that lens that we see the world and the world sees us",
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},
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"perspectives": {
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"order": 14
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"info": "The economy explained. Imagine you could call up a friend and say, Meet me at the bar and tell me what's going on with the economy. Now imagine that's actually a fun evening.",
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"politicalbreakdown": {
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"title": "Political Breakdown",
"tagline": "Politics from a personal perspective",
"info": "Political Breakdown is a new series that explores the political intersection of California and the nation. Each week hosts Scott Shafer and Marisa Lagos are joined with a new special guest to unpack politics -- with personality — and offer an insider’s glimpse at how politics happens.",
"airtime": "THU 6:30pm-7pm",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/Political-Breakdown-2024-Podcast-Tile-703x703-1.jpg",
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"order": 5
},
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"possible": {
"id": "possible",
"title": "Possible",
"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
"airtime": "SUN 2pm",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/Possible-Podcast-Tile-360x360-1.jpg",
"officialWebsiteLink": "https://www.possible.fm/",
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"source": "Possible"
},
"link": "/radio/program/possible",
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"spotify": "https://open.spotify.com/show/730YpdUSNlMyPQwNnyjp4k"
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},
"pri-the-world": {
"id": "pri-the-world",
"title": "PRI's The World: Latest Edition",
"info": "Each weekday, host Marco Werman and his team of producers bring you the world's most interesting stories in an hour of radio that reminds us just how small our planet really is.",
"airtime": "MON-FRI 2pm-3pm",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/The-World-Podcast-Tile-360x360-1.jpg",
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