According to Michael Reagan, further implementation California’s AB32 will not only halt job growth in the state, it will also push about 3 million jobs out of California. With a current statewide unemployment rate of 12.4 percent, Reagan says the environmental initiatives that make up AB32 will be detrimental to the state’s economy.
Reagan is now encouraging voters to support Prop 23. Reagan summarizes California Prop 23 as an initiative that will only allow AB32 to be implemented once the state’s unemployment rate drops to 5.5 percent and stays there for four consecutive quarters.
The last time California saw a 5.5 percent or lower unemployment rate was in September 2007, just before the Great Recession started in December 2007. While California has proven that it can easily manage a 5.5 percent or lower unemployment rate for an extended period of time, the state of today’s economy is going to make achieving this anytime soon a difficult feat.
Can the state of California sit in a holding pattern with the environmental initiatives that are targeted with AB32 in order for the state’s economy to recover or will AB32’s implementation create an even bleaker job market for the state? California voters will be asked to answer this question in November.