California’s Economic Horizon: Treasurer Ma’s Optimistic Forecast for the Inland Empire

State Treasurer Fiona Ma outlines key initiatives and predicts robust growth for the region, highlighting major projects and economic strategies

By Ken Alan, Freelance Writer for IEBJ

California State Treasurer Fiona Ma presented an optimistic economic forecast for the Inland Empire at the Mid-Year Banking & Financial Industry Outlook. “I spend a lot of my time traveling to all 58 counties to understand their economic development needs and match them with investors,” she explained.

Treasurer Ma highlighted her support for the Brightline West high-speed rail project, which secured $3 billion in funding from President Biden’s Bipartisan Infrastructure Bill and an additional $3.5 billion through private activity bonds (PABs). The 218-mile train, running through the median of Interstate 15, will have stations in Las Vegas, Victor Valley, Hesperia, and terminate in Rancho Cucamonga, where it will connect with the California High-Speed Rail.

While high-speed rail remains controversial due to its high construction costs, Ma argued that such systems are vital solutions to highway gridlock and the high cost of housing in major metro areas. With no significant highway projects in the planning stages, California legislators are considering electronic tolls to manage peak hour traffic. Additionally, the air travel industry continues to struggle with pilot shortages, high fuel costs, safety concerns, and customer service issues, which could be alleviated by increased competition. The persistent barriers to new housing—such as labor costs, high interest rates, and government red tape—also remain formidable.

The construction of the Brightline project is expected to take four years, aiming for completion in 2028 just in time for the Olympic Games in Los Angeles. Ma promised three years of high-paying construction jobs and mentioned plans for new affordable rental units and renovations to existing ones.

Treasurer Ma also referenced the Barstow International Gateway project (BIG) as another economic catalyst for the Inland Empire. Though not directly involved, she noted that the railroad company BNSF had purchased 4,000 acres on the west side of Barstow to develop a major transloading center for international freight from the ports of Los Angeles. This initiative is expected to significantly reduce truck traffic on Southern California freeways and boost San Bernardino County’s economy.

Treasurer Ma oversees a state budget of $3.7 trillion. During the first two years of the pandemic, California realized surpluses of $46 billion and $96 billion, respectively. However, in the third year, the state faced a $50 billion deficit due to layoffs in tech companies, declines in commercial leases, and reductions in individual and corporate tax revenue.

“Our state heavily relies on personal income tax, corporate tax, and sales taxes,” Ma added, noting that as of May, personal income taxes were up $1.4 billion over projections and corporate taxes had risen by $752 million.

Ma invited business leaders to explore the California State Treasurer’s website (www.treasurer.ca.gov) to learn more about state programs that support economic prosperity, including Cal Savers, the Scholarship 529, and CalABLE for disabled workers.

She is currently collaborating with a Blue Ribbon Commission to provide banking services to residents unable to afford traditional banking. Ma emphasized that California’s quality of life remains a competitive advantage over lower-tax states with laws she described as unfriendly to women, minorities, teachers, and doctors. She also noted the high interest from investors in the state.

The Mid-Year Outlook featured a panel discussion with industry leaders on the current and future states of finance. William Wang, MBA, a cash flow expert, encouraged business leaders to consider the opportunity costs against high interest rates, suggesting that a 5% rate change should not significantly impact businesses with a solid capital use strategy. Ursula Garrett, CPA, advised business owners to maintain accurate records to avoid audits and recommended consulting a CPA if contacted by the IRS. Krisante Gunewardena from RE/MAX Diamond Bar noted a recent reduction in lease rates, suggesting it’s an opportune time for office sector investments.

The event was hosted by the Inland Empire Regional Chamber of Commerce at Riverside City Hall’s Grier Pavilion on Thursday, June 6.