Yesterday, the Orange County Register published an op-ed by Rob Lapsley, President of the California Business Roundtable, and Jeffrey Ball, president and CEO of the Orange County Business Council. In the op-ed, Lapsley and Ball argue that the Legislature is wrongly focused on price controls, which only exacerbate the problem, rather than addressing underlying causes of the state’s out-of-control cost-of-living crisis.
Lapsley and Ball write:
“In a recent PPIC Statewide Survey, more than six in ten Californians say they are seriously considering leaving the state due to the high cost of living. Rent, utilities, insurance, and basic goods all cost more here than almost anywhere else in the nation. According to the U.S. Bureau of Economic Analysis, California’s cost of living is nearly 40% higher than the national average — a staggering statistic for a state that prides itself on opportunity.”
“This crisis isn’t abstract. It affects every paycheck, every grocery bill, and every attempt to build a financial future. The root causes of this affordability emergency are excessive regulations that increase our housing costs, utility costs, and gasoline costs. Yet, instead of facing these facts, too many lawmakers in Sacramento are reaching for political Band-Aids with new and higher taxes while California continues to hemorrhage jobs and residents to other states. Now, rather than controlling costs, legislators are trying to control prices.”
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“Let’s start with Senate Bill 709, which would empower state agencies to impose price caps on consumer goods. SB 709 is a foolish proposal which would reduce tax revenue to local schools and government services while driving up costs for renters and small businesses that rely on affordable and readily available self-storage facilities.”
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These proposals may score political points, but they do nothing to address the true drivers of higher costs in California – regulatory burdens and supply constraints. Worse, they divert attention from where we should focus our efforts for meaningful solutions.
Thankfully, some leaders in Sacramento understand that you don’t make California more affordable through additional regulations that drive up costs even higher.
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We urge Senator Umberg and his colleagues to bring that same clarity to the debate over SB 709, AB 1157, and any other proposal that tries to blame business instead of tackling the root causes of the cost-of-living crisis. That means supporting policies that grow housing, reform regulations, and make it easier for businesses to create jobs and invest in California.
To read the entire column: https://www.ocregister.com/2025/04/28/the-legislature-must-confront-the-real-drivers-of-our-cost-of-living-crisis/