>> AND THAT IS SACRAMENTO
AIRPORT AHEAD OF US.
>> THE PAST 27 YEARS, WE HAVE
BEEN OPERATING AND MANUFACTURING
FLIGHT SIMULATORS.
KEVIN: HIS SMALL BUSINESS HAS
SEEN ITS UPS AND DOWNS,
PARTICULARY AFTER THE 9/11
TERROR ATTACKS AND THE 2008
RECESSION.
>> INDUSTRYWIDE USE CAME TO A
SCREECHING HALT.
KEVIN: YET EVEN WEATHERING THOSE
PROBLEMS, HE'S SOLDIERED ON.
>> IT'S EXPENSIVE.
YOU KNOW, TAXES ARE HIGH THIS
-- ARE HIGH.
THIS PART OF CALIFORNIA ISN'T
DOESN'T REALLY HAVE THAT MUCH
INDUSTRY.
KEVIN: HIS BUSINESS PAYS ITS
TAXES, SOCIAL SECURITY, AND
UNEMPLOYMENT EACH QUARTER.
SO WHEN HIS ACCOUNTANT SENT HIM
THIS NOTICE SAYING HE OWED MORE,
MUCH MORE, HE WAS CONFUSED.
>> IT'S JUST AN EXTRA BILL THAT
WE GOT FROM THE STATE FOR
UNEMPLOYMENT.
KEVIN: UNDER STATE LAW,
EMPLOYERS HAVE TO PAY IN TO THE
STATE'S UNEMPLOYMENT FUN
BUT IN 2009, DURING THE
RECESSION, MORE AND MORE PEOPLE
APPLIED FOR UNEMPLOYMENT AND
CALIFORNIA RAN OUT OF MONEY.
>> UNFORTUNATELY, WHAT HAPPENED
IS ALL THE MONEY COMING IN FROM
EMPLOYERS THAT PAY FOR BENEFITS
TO UNEMPLOYED WORKERS WASN'T
NEARLY ENOUGH TO COVER ALL T
MONEY THAT WAS GOING OUT.
KEVIN: LOREE LEVEY SAYS THE
FEDERAL GOVERNMENT CAME IN WITH
A LOAN BUT LIKE ANY LOAN, THEY
WANTED THEIR MONEY BACK.
AFTER TWO YEARS, WITHOUT PAYING
THE BALANCE OFF THE FEDS STARTED
TO ADD PENALTIES.
THINK OF IT AS PAYING ONLY THE
MINIMUM PAYMENT ON YOUR CREDIT
CARD.
THE STATE HAS ONLY BEEN MAKING
THE MINIMUM PAYMENT SINCE 2011.
SO THE FEDS HAVE STUCK
CALIFORNIA NOT ONLY WITH
INCREASED PAYMENTS EVERY YEAR,
BUT INTEREST, TOO.
>> SO INSTEAD OF PAYING $42 PER
EMPLOYEE THEY USED TO PAY, NOW
THEY ARE PAYING $199 PER
EMPLOYEE.
KEVIN: MAKING MATTERS WORSE,
DURING THE RECESSION CALIFORNIA
INCREASED HOW MUCH THE STATE
PAYS FOR UNEMPLOYMENT AND
INCREASED THE NUMBER OF PEOPLE
ELIGIBLE FOR UNEMPLOYMENT.
BUT THEY HAVEN'T CHANGED HOW
MUCH THE STATE COLLECTS IN
UNEMPLOYMENT TAXES.
THEY'RE COLLECTING THE SAME
AMOUNT THEY DID IN 1984.
>> A MOMENT THAT IT'S OURS AND
WE END UP WITH MORE AND MORE
PEOPLE BECOMING UNEMPLOYED, WE
HAVE A SYSTEM WHERE WE DON'T
HAVE ENOUGH BALANCE TO BE ABLE
TO WEATHER THAT, SO WE WILL GO
BACK INTO A BORROWING SITUATION
PROBABLY AGAIN.
>> I AM GETTING A LOT OF
COMPLAINTS.
KEVIN: STATE SENATOR TED GAINES
REPRESENTS PARTS OF PLACER, EL
DORADO, AND SACRAMENTO COUNTIES.
HE SAYS HIS OFFICE HAS DOZENS OF
CALLS FROM BUSINESSES OVER THE
PAST MONTH.
HE THINKS THE LEGISLATURE SHOULD
ACT AND TAKE EXCESS TAX REVENUE
AND JUST PAY OFF CALIFORNIA'S
UNEMPLOYMENT DEB
>> YOU COULD TAKE A LOOK AT
ELIMINATING THE INCREASED RATE
THAT BUSINESSES ARE HAVING TO
PAY AND SAY THAT IN THE FUTURE
THAT COULD BE PAID BY TAX
, REVENUES THAT ARE BROUGHT IN
TO THE STATE TREASURY DURING
GOOD TIMES.
>> WE WILL COME TO OUR LEFT JUST
A LITTLE BIT.
KEVIN: MEANWHILE, ALTMAN SAY
IT'S ANOTHER EXAMPLE OF HOW
EXPENSIVE IT IS TO RUN A
BUSINESS IN CALIFORNIA.
>> LAST COUPLE YEARS, WE HAVE
SEEN INCREASE IN OUR INSURANCE
RATES AS WELL BECAUSE CALIFORNIA
LIABILITY INSURANCE, MEDICAL
INSURANCE WE PAY.
FOR A SMALL COMPANY IT'S REALLY
, DIFFICULT TO SURVIVE.
KEVIN: BUT UNLESS THE
