October 11, 2002

Harman Holds Roundtable To Discuss Impact
Of Faltering Economy On The South Bay

REDONDO BEACH - With national unemployment and poverty levels on the rise, Rep. Harman held a roundtable discussion with local elected officials and experts to discuss the impact of the nation’s economic downturn on South Bay cities, families, schools, hospitals and businesses.

Recently released statistics demonstrate that the economy is continuing to falter. The national unemployment rate is up 1.6 percent, with an additional 2.4 million Americans out of work in 2002. Los Angeles County residents lost an estimated 23,600 jobs alone this year, with unemployment peaking at 7.3 percent in June.

In a recent survey of South Bay businesses conducted by the South Bay Economic Development Partnership, 42 percent reported reductions in their workforces and those with expansion plans dropped to 57 percent from 67 percent a year prior. Ominously, the survey also reported that the number of companies considering moving out of California has risen dramatically from 3 percent in 2000 to 19 percent in 2001.

“National security issues, including Iraq, have dominated Congress’ attention for weeks,” said Harman. “But economic security matters too. It is tragic to see the federal budget surplus squandered, promises to protect the Social Security trust fund broken, and the total breakdown of fiscal discipline. Needed programs like full funding of special education, prescription drug benefit under Medicare, and investments in affordable housing are all on hold.”

Local leaders commented on economic problems their communities currently face. Sandy Jacobs, Mayor Pro-Tem of El Segundo and a member of the Harbor-UCLA Community Alliance, stated: “We’re really worried about the potential closure of Harbor-UCLA. Not only would it be disastrous for healthcare delivery in the South Bay, but it would also result in the loss of thousands of jobs, which adds additional strain on area resources.”

“It is vital that we retain Los Angeles Air Force Base in the area and therefore the base modernization project is essential, “ said Kelly McDowell, El Segundo City Councilman. “The Base and its space and missile contracting activities support thousands of jobs for South Bay residents.”

“It is shameful that Congress plans to recess when our economic security and homeland security are in jeopardy,” stated Harman. “I urge the White House to stop playing politics so that we can pass a Homeland Security Bill. We also need to adopt a responsible, balanced budget and pass appropriations bills to help the South Bay and communities across the country.”

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