Tuesday, October 21, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

California lawmakers OK stealth bomber tax break

By
From page A5 | July 04, 2014 |

SACRAMENTO — A corporate battle over a giant Pentagon contract to build stealth bombers spilled into the California Legislature on Thursday, as lawmakers grudgingly rushed through a $420 million tax credit for an aerospace contractor before adjourning for their monthlong summer recess.

The 15-year tax incentive would benefit one of the two major competitors, a joint bid being submitted by Boeing Co. and Lockheed Martin Corp.

That has angered the other bidder for the $55 billion federal contract, Northrop Grumman Corp., which says it cannot offer a low enough bid without a similar tax break. Gov. Jerry Brown, who pushed for the tax credit, and Democratic legislative leaders promised to consider a similar incentive for Northrop after the Legislature returns in August.

Lockheed Martin says the incentive would mean 1,100 California jobs should it win the contract, including 750 new jobs and 350 that would be retained.

But Northrop Grumman said it would create 1,500 new jobs in Palmdale should it win the contract, even without the tax subsidy. A company spokesman said giving the break to Lockheed Martin puts Northrop Grumman at a competitive disadvantage, the situation lawmakers pledged to correct next month.

“Northrop Grumman, California’s largest aerospace employer, is extremely disappointed that the legislation passed today in California favors only one aerospace company,” the company said in a statement after the vote. “This is a significant blow to fairness in California’s aerospace industry.”

The bill limits the tax credit to a “subcontractor,” which benefits Lockheed as a subcontractor to Boeing. Northrop is its own contractor, so it wouldn’t qualify.

The company looks forward to working with lawmakers in August to secure a similar subsidy, spokesman Tim Paynter said. “What we really want is a level playing field,” he said.

Brown’s office and Boeing declined comment. There was no immediate comment from Lockheed Martin.

The bill, AB2389, passed the Senate with one vote to spare after hours of heated debate in committee and on the floor, as senators complained that they were being asked by Brown to pass the bill with a two-thirds majority just four days after it was presented to them. It had broader support in the Assembly, where it was approved 68-2.

“I feel like this is a jam-job and this is a game of chicken,” said Sen. Kevin de Leon, chairman of the Senate Appropriations Committee, which voted to send the bill to the full Senate.

The Los Angeles Democrat said California is competing for the aerospace jobs with Alabama, Florida, Texas and other states, but he wasn’t happy about the last-minute process of considering the tax credit.

Yet he and others who voted for it said the gain in jobs would more than offset the subsidy.

Sen. Ted Gaines, R-Roseville, said projections are that there would be a net gain to the state budget of $80 million to $500 million over the life of the tax incentive if the jobs stay in California.

“This measure affects the industry that has helped build California,” said Sen. Steve Knight, R-Palmdale, who sponsored the bill in the Senate. “For the last 80 to 100 years, no state, no region in the world has had the impact on aerospace that California has. Now, Dayton, Ohio, can have their bicycle shop, and North Carolina can have the site of the first powered, controlled flight. But California’s imprint on aerospace is unparalleled, and today we have an option, an option to move the ball forward, an option to keep aerospace in California, an option to be competitive.”

Opponents led by Sen. Ben Hueso, D-San Diego, argued that the money would better go to schools, road construction and other programs that would serve businesses and residents across California. There is no need to give either firm tax-funded subsidies on top of the Pentagon’s profitable taxpayer-funded defense contract, he argued.

“There is so much need in our state, and there is so much poverty in our state,” Hueso said. “This is just more corporate welfare.”

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Crime key topic again at Fairfield candidates night

By Ryan McCarthy | From Page: A5, 20 Comments | Gallery

 
 
Dixon corn maze breaks own world record

By Jess Sullivan | From Page: A5, 1 Comment | Gallery

PAL center seeks volunteers

By Jess Sullivan | From Page: A5, 1 Comment

 
Police Department hosts employee recognition event

By Jess Sullivan | From Page: A5

.

US / World

Police say they might have spotted ambush suspect

By The Associated Press | From Page: B2

 
Fashion designer Oscar de la Renta dies at 82

By The Associated Press | From Page: B2 | Gallery

Yosemite proposes raising entrance, camping fees

By The Associated Press | From Page: B2, 3 Comments

 
CDC releases revised Ebola gear guidelines

By The Associated Press | From Page: B2

Clinton: Midterm elections should motivate women

By The Associated Press | From Page: B2 | Gallery

 
Surfer fends off shark attack with fist, board

By The Associated Press | From Page: B2

WWII airman to be buried in Oakland

By The Associated Press | From Page: B2, 1 Comment

 
Brown: California needs long-term vision on water

By The Associated Press | From Page: B2, 4 Comments

Colorado proposes edible pot ban, then retreats

By The Associated Press | From Page: B2, 2 Comments

 
Submarine hunt sends Cold War chill across Baltic

By The Associated Press | From Page: B2

Oscar Pistorius to finally learn his sentence

By The Associated Press | From Page: B2

 
Youths, tech workers duel over San Francisco field

By The Associated Press | From Page: B2

Suspect in Va. abduction charged in DC area rape

By The Associated Press | From Page: B2

 
Warming Earth heading for hottest year on record

By The Associated Press | From Page: B2, 1 Comment

Lacking a plan, Abbas opts for rhetoric

By The Associated Press | From Page: B2 | Gallery

 
Police: Indiana suspect hints at more killings

By The Associated Press | From Page: B2 | Gallery

Turkey says it helps Kurdish fighters enter Syria

By The Associated Press | From Page: B2

 
Nigeria declared Ebola-free; ‘spectacular success’

By The Associated Press | From Page: B2 | Gallery

Urgent-care clinics ill-equipped to treat Ebola

By The Associated Press | From Page: B2

 
British royal couples’ 2nd child due in April

By The Associated Press | From Page: B2

 
.

Opinion

Spering kept youth league going

By Letter to the Editor | From Page: A11, 8 Comments

 
Day, Blankenchip good for respective cities

By Letter to the Editor | From Page: A11, 1 Comment

‘Misleading’ mailer sent to residents

By Letter to the Editor | From Page: A11

 
.

Living

Community Calendar: Oct. 21, 2014

By Susan Hiland | From Page:

 
.

Entertainment

Yearwood, Santana to perform at World Series

By The Associated Press | From Page: B6

 
Standing ovation at Met Opera despite protest

By The Associated Press | From Page: B6 | Gallery

Still the Same: Bob Seger launching tour, album

By The Associated Press | From Page: B6 | Gallery

 
San Francisco radio stations ban hit song ‘Royals’

By The Associated Press | From Page: B6

Pitbull to host American Music Awards on Nov. 23

By The Associated Press | From Page: B6

 
‘Buffy the Vampire Slayer’ actor arrested in Idaho

By The Associated Press | From Page: B6

NBC’s Snyderman faces credibility issues

By The Associated Press | From Page: B6 | Gallery

 
Not so fast cordcutters – cable’s not going anywhere

By The Associated Press | From Page: B5 | Gallery

TVGrid Oct 21

By Daily Republic Syndicated Content | From Page: A11

 
.

Sports

Local Report: Armijo boys soccer team falls to Vintage

By Daily Republic staff | From Page: B1

 
Steelers rally past stunned Texans 30-23

By The Associated Press | From Page: B1

Bumgarner against Shields in World Series opener

By The Associated Press | From Page: B1, 1 Comment | Gallery

 
Raiders plagued by 3rd-down defensive woes

By The Associated Press | From Page: B1 | Gallery

Champion drag racer Raymond Beadle dies at 70

By The Associated Press | From Page: B1

 
Stiviano lawsuit against Shelly Sterling dismissed

By The Associated Press | From Page: B1

With TD mark in bag, Manning can set more records

By The Associated Press | From Page: B1 | Gallery

 
49ers lose center Daniel Kilgore, needs surgery

By The Associated Press | From Page:

Giants-Royals: A capsule look at World Series

By The Associated Press | From Page: B1

 
Belichick, Brady praise Manning on TD record

By The Associated Press | From Page: B1

Penn State board to meet on disputed Freeh Report

By The Associated Press | From Page: B1

 
McIlroy to skip 2 events to focus on lawsuit

By The Associated Press | From Page: B1

Column: Keselowski marches to his own beat

By The Associated Press | From Page: B1 | Gallery

 
Wanted: Cities interested in hosting 2024 Olympics

By The Associated Press | From Page: B1

Giants rely on core of 4 relievers

By The Associated Press | From Page: B1

 
Royals, fans bond over improbable postseason run

By The Associated Press | From Page: B1

Voynov suspended on domestic violence suspicion

By The Associated Press | From Page:

 
.

Business

Facebook sues law firms, claims fraud

By The Associated Press | From Page: B5

 
Apple reports record 39.3 million iPhone sales

By The Associated Press | From Page: B5, 1 Comment

US regulator: Fannie, Freddie in deal with banks

By The Associated Press | From Page: B5

 
Sears plans to raise more cash via rights offering

By The Associated Press | From Page: B5

Survey: Pay raises rarer despite strong US hiring

By The Associated Press | From Page: B5 | Gallery

 
US agency warns car owners to get air bags fixed

By The Associated Press | From Page: B5

.

Obituaries

.

Comics

Pickles Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Bridge Oct 21

By Daily Republic Syndicated Content | From Page: B7

Sudoku Oct 21

By Daily Republic Syndicated Content | From Page: B7

 
Baby Blues Oct 21

By Daily Republic Syndicated Content | From Page: B6

Sally Forth Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Wizard of Id Oct 21

By Daily Republic Syndicated Content | From Page: B6

Dilbert Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
B.C. Oct 21

By Daily Republic Syndicated Content | From Page: B6

Crossword Oct 21

By Daily Republic Syndicated Content | From Page: B7

 
Frank and Ernest Oct 21

By Daily Republic Syndicated Content | From Page: B6

Blondie Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Word Sleuth Oct 21

By Daily Republic Syndicated Content | From Page: B7

Garfield Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Get Fuzzy Oct 21

By Daily Republic Syndicated Content | From Page: B6

Baldo Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Rose is Rose Oct 21

By Daily Republic Syndicated Content | From Page: B6

For Better or Worse Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Zits Oct 21

By Daily Republic Syndicated Content | From Page: B6

Peanuts Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Cryptoquote Oct 21

By Daily Republic Syndicated Content | From Page: B7

Beetle Bailey Oct 21

By Daily Republic Syndicated Content | From Page: B6