2014 CSULB Economic Forecast

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[ INAUDIBLE DISCUSSIONS ]

[ INAUDIBLE DISCUSSIONS ]

>> THE MOST PLEASANT OF MY ALTERNATIVE ACTIVITIES

FOR TODAY IS TO INTRODUCE OUR PRESIDENT.

PRESIDENT PARA HAS HAD A LONG AND DEDICATED CAREER

AT CSULB FOR 12 YEARS.

HE WAS CHAIR OF THE DEPARTMENT OF MUSIC.

HE'S BEEN BOTH AN ASSOCIATE DEAN AND THE DEAN

OF THE COLLEGE OF THE ARTS.

HE SERVED AS BOTH INTERIM PROVOST AND PROVOST AND NOW,

HE IS OUR INTERIM PRESIDENT.

WE'VE BEEN VERY FORTUNATE TO HAVE DR. PARA

AS OUR PRESIDENT THIS YEAR AND MY SADDEST

OF MY ALTERNATIVE DUTIES TODAY IS TO KNOW

THAT THIS IS LIKELY THE LAST ECONOMIC FORUM

THAT HE WILL JOIN US FOR AS HE IS STARTING A MUCH DESERVED

RETIREMENT THIS SUMMER.

IF I TOOK TIME TO REVIEW EVEN JUST THE HIGHLIGHTS OF ALL

OF DON PARA'S CONTRIBUTIONS TO CSULB OVER THE YEARS,

WE WOULD BE HERE FOR SOME TIME.

SO, LET ME JUST SAY THAT FOR TWO DECADES,

WHEN THIS UNIVERSITY ASK DON PARA TO TAKE UP A NEW CHALLENGE

TO WAIT INTO A COMPLEX PROBLEM AND MOST RECENTLY

TO CSU SOME VERY DIFFICULT ECONOMIC TIMES,

HE NOT ONLY ACCEPTED THOSE CALLS BUT HE DID

SO WITH DEDICATION AND INSIGHT.

IT'S MY GREAT PLEASURE TODAY TO INTRODUCE THE PRESIDENT

OF CAL STATE LONG BEACH, DR. DONALD J. PARA.

[ APPLAUSE ]

>> THANK YOU FOR THAT VERY KIND INTRODUCTION, DAVID.

NOBODY DOES ANYTHING ALONE.

THERE HAS BEEN A GREAT TEAM OF PEOPLE WORKING

AT CAL STATE LONG BEACH FOR A LONG TIME.

AND ONE OF THE REASONS THAT IT WORKS IS

THAT WE HAVE A VERY SIMPLE REDIRECT MISSION AND THAT'S

ABOUT STUDENTS AND STUDENT SUCCESS, GRADUATING STUDENTS,

GETTING THEM UNDER THEIR LIFE, GETTING THEM INTO THE CAREER,

GETTING THEM TO GRAD SCHOOL, WHEREVER THEY'RE GOING TO GO.

THAT'S BEEN OUR FOCUS.

THAT'S BEEN OUR MISSION FOR A LONG TIME

AND I THINK THAT'S WHY WE SUCCEED AND I KNOW THAT'S WHY

THAT CAL STATE LONG BEACH IS A VERY SPECIAL PLACE

AND I HAVE BEEN HONORED TO BE THERE FOR 26 YEARS.

AND JUST BECAUSE I'M RETIRING DOESN'T MEAN I WON'T BE COMING

BACK TO THE ECONOMIC FORUM.

THANK YOU FOR BEING HERE IN THIS SECOND DAY OF SPRING.

I HAVE A DAUGHTER WHO LIVES IN CHICAGO.

IT'S THE SECOND DAY OF SPRING THERE BUT THEY DON'T KNOW IT

YET BECAUSE IT'S BEEN-- IT WAS BEEN A VERY TOUGH WINTER.

I'VE BEEN ATTENDING THESE FORUMS FOR MANY YEARS

AND ALWAYS LOOK FORWARD TO WHAT I LEARN ABOUT OUR LOCAL ECONOMY

AND THEN THE LARGER ECONOMY AND THE IMPACT THAT'S GOING TO HAVE

AND THE DECISIONS THAT WE ALL MAKE FOR THE FUTURE.

A GREAT CITY NEEDS A GREAT UNIVERSITY

AND A GREAT UNIVERSITY NEEDS A GREAT CITY.

WE HAVE THAT KIND OF REALITY IN LONG BEACH.

PART OF THIS PACKAGE, PART OF THIS PACKAGE WITH THE CITY

AND THE EDUCATION WHAT THIS IS,

THE LONG BEACH UNIFIED SCHOOL DISTRICT,

AN OUTSTANDING SCHOOL DISTRICT.

LONG BEACH CITY COLLEGE,

AN OUTSTANDING COMMUNITY COLLEGE AND THE UNIVERSITY.

WE'RE ALL FORTUNATE TO BE PART OF THIS COMMUNITY

THAT HAS THIS KIND OF COHESIVENESS AND THIS KIND

OF DIRECTION THAT WE ALL WORK TOGETHER

FOR THE BETTERMENT OF THE COMMUNITY.

THE RELATIONSHIP BETWEEN THE CITY OF LONG BEACH

AND THE EDUCATIONAL ENTITIES ALSO INCLUDES ONGOING

INTERACTION AND DIALOGUE.

A PART OF OUR PARTNERSHIP AND THIS IS GRADUATING STUDENTS

AND THROUGH OTHER EFFORTS THAT WE CREATE

TO SUPPORT THE LONG-TERM VIABILITY

AND VITALITY OF THIS COMMUNITY.

TWO NIGHTS AGO FOR EXAMPLE,

WE HAD A MAYORAL DEBATE ON OUR CAMPUS.

WE WERE VERY HONORED TO HAVE IT ON OUR CAMPUS.

SEVERAL OF THE CANDIDATES ARE HERE TODAY.

DOUG OTTO IS HERE.

BONNIE LOWENTHAL IS HERE.

[ APPLAUSE ]

AND IT WAS A VIGOROUS DEBATE.

IT WAS AN INFORMATIVE DEBATE AND IT--

LET'S JUST ALL KNOW HOW FORTUNATE WE ARE TO HAVE LEADERS

LIKE THOSE PEOPLE AND THE OTHER THREE WHO ARE

AT THE DEBATE IN OUR CITY.

WE WILL BE IN GOOD HANDS.

ALSO, THANKS TO THE LOS ANGELES NEWS GROUP AND THE PT,

OUR ASSOCIATED STUDENTS AND THE DEPARTMENT OF JOURNALISM

AND MASS COMMUNICATION FOR BEING THE ONES TO LEAD THAT EFFORT.

EFFORTS SUCH AS THE REGIONAL ECONOMIC FORUM HELP US

TO ANSWER QUESTIONS THAT ARE VITALLY IMPORTANT TO ALL OF US.

THESE QUESTIONS INCLUDE,

HOW DO WE ENCOURAGE MORE CSULB GRADUATES TO STAY

AND WORK IN LONG BEACH?

HOW CAN ENTITIES LIKE THE OFFICE

OF ECONOMIC RESEARCH PROVIDE EXPERTISE TO THE COMMUNITY WHILE

AT THE SAME TIME PROVIDING LEARNING OPPORTUNITIES

FOR OUR STUDENTS?

HOW DO WE, THE UNIVERSITY

AND THE COMMUNITY TOGETHER CREATE THE FOUNDATIONS

FOR A SUSTAINABLE GROWTH AND PROSPERITY FOR OUR AREA?

AMONG THE PEOPLE WHO PLAY KEY ROLES AND THE PARTNERSHIP

BETWEEN THE CITY AND UNIVERSITY

AND IN DRIVING UNIVERSITY FORWARD AND WORKING

WITH THE COMMUNITY IS DR. HEATHER STEPHENS

WHO YOU WILL HEAR FROM TODAY.

DR. STEVENS IS AN EXCELLENT EXAMPLE

OF A HIGHLY EFFECTIVE EDUCATOR

WHO IS ALSO A VERY VALUABLE RESOURCE FOR OUR COMMUNITY.

DR. STEVENS WILL LEAD OFF THE FORUM

WITH A REGIONAL ECONOMIC OVERVIEW PRESENTATION.

FOLLOWING THAT, WE ARE PLEASED

TO WELCOME THREE INDUSTRY EXPERTS

WHO WILL SHARE THEIR INSIGHTS INTO THE CURRENT ISSUES

IN THEIR INDUSTRIES AND THE IMPACT THEY WILL HAVE

ON OUR AREA.

THANK YOU TO NOELLE HACEGABA, DIANA HENDEL,

AND MARIO RODRIGUEZ FOR JOINING US TODAY.

[ APPLAUSE ]

DISCUSSION AND QUESTIONS FROM THE AUDIENCE WILL FOLLOW

AND THEN THERE WILL BE TIME

FOR INFORMAL DISCUSSIONS AND DIALOGUES.

WE VERY MUCH APPRECIATE YOUR CONTINUED SUPPORT OF THE FORUM

AND OF CAL STATE LONG BEACH,

A SPECIAL THANK YOU TO OUR SPONSORS.

WE HOPE YOU ENJOY THE PRESENTATIONS AND AGAIN,

THANK YOU FOR BEING HERE TODAY.

[ APPLAUSE ]

[ PAUSE ]

>> THE LAST OF MY ALTERNATIVE ASSIGNMENTS FOR TODAY IS

TO INTRODUCE DR. HEATHER STEPHENS

OF THE DEPARTMENT OF ECONOMICS.

DR. STEPHENS HAS HAD THE UNENVIABLE TASK OF FOLLOWING

IN THE FOOTSTEPS OF THE AMENABLE JOE MAGADDINO

WHO PRESENTED THE ECONOMIC FORECAST FOR YEARS

WITH THE KINDS OF ACUMEN AND THE PLUM

THAT REALLY CAN'T BE DUPLICATED.

AND HEATHER HAS WISELY DECIDED NOT TO DO THAT.

ALTHOUGH, AS-- IF YOU WERE HERE LAST YEAR,

YOU SEE THAT THE APPROACH SHE HAS TAKEN AND THE ANALYSIS

THAT SHE BRINGS-- THAT SHE'S REALLY MORE THAN CAPABLE

OF FILLING THOSE RATHER LARGE SHOES.

I'VE BEEN DELIGHTED WITH THE WAY THAT DR. STEPHENS HAS WORKED

TO ENSURE THAT THIS EVENT AND THE ANALYSIS

THAT INFORMANT RESPOND TO THE PARTICULAR COMMUNITY

AND BUSINESS CONCERNS THAT THIS ASSEMBLED GROUP REPRESENTS.

UNFORTUNATELY, I HAVE TO BID YOU FAREWELL AT THIS POINT

TO GET BACK TO THE UNIVERSITY ABOUT 100

OF MY FACULTY I'M MEETING RIGHT NOW AND THOSE OF YOU

WHO RUN BIG GROUPS, NO, YOU DON'T LEAVE A GROUP

LIKE THAT ALONE FOR VERY LONG.

[ LAUGHTER ]

HOWEVER, I'M VERY HAPPY TO LEAVE YOU IN THE VERY CAPABLE HANDS

OF DR. HEATHER STEPHENS.

THANK YOU.

[ APPLAUSE ]

[ PAUSE ]

>> ALTHOUGH, OF COURSE, PEOPLE FROM THE DEPARTMENT

OF ECONOMICS WILL NOT BE AT THAT MEETING, DAVID [LAUGHS].

SO, THANK YOU, DEAN WALLACE AND THANK YOU, PRESIDENT PARA.

I REALLY APPRECIATE YOUR SUPPORT AND THE SUPPORT OF OTHER PEOPLE

FROM THE UNIVERSITY FOR THIS EVENT.

WELCOME TO THE 2014 CSULB REGIONAL ECONOMIC FORUM.

TODAY, WE'RE GOING TO TALK ABOUT WHAT IS HAPPENING

WITH THE GREATER LONG BEACH ECONOMY AND WE'RE GOING TO HEAR

FROM THE PANEL A DISTINGUISHED LOCAL INDUSTRY EXPERTS

THAT DR. PARA MENTIONED TO YOU.

BUT BEFORE I BEGIN, I THINK I WANT TO START

BY THANKING THE MANY PEOPLE WHO CONTRIBUTED

TO MAKE TODAY'S EVENT A SUCCESS.

FIRST, I WANT TO START

BY THANKING THE ADMINISTRATIVE STAFF

IN THE DEPARTMENT OF ECONOMICS.

I DON'T KNOW IF DIANE WHO IS AT THE BACK CAN HERE ME

BUT DIANE GOT HERE EVEN BEFORE I DID THIS MORNING AND BETWEEN HER

AND CERISE [ASSUMED SPELLING] SIMPLY COULD NOT HAVE PULLED OFF

THE LOGISTICS OF TODAY'S EVENT.

I ALSO WANT TO GIVE A STRONG THANKS AND ACKNOWLEDGEMENT

TO THE SUPPORT AND HELP FROM SMG AND THE LONG BEACH CONVENTION

AND ENTERTAINMENT CENTER ESPECIALLY

AND INCLUDING SAVOR AND THE PROJECTIONS.

THEY TOO ARE THE ONES MAKING THIS EVENT FLOW SMOOTHLY.

I ALSO WANT TO ACKNOWLEDGE THE CONTRIBUTIONS

OF BEACON ECONOMICS WHO CONTRIBUTED THE ANALYSIS

THAT YOU CAN SEE IN YOUR FOLDERS ABOUT COMMUTING PATTERNS

AND ALSO THAT I WILL TALK ABOUT IN TODAY'S PRESENTATION.

I WANT TO THANK DEAN WALLACE AND THE COLLEGE

OF LIBERAL ARTS EVEN THOUGH HE HAS LEFT.

MY DEPARTMENT OF ECONOMICS COLLEAGUES,

SEVERAL OF WHOM ARE HERE SITTING IN THE AUDIENCE WITH YOU.

ANNETTE KONIECZKA [ASSUMED SPELLING],

A SENIOR ECONOMICS MAJOR WHO HELPED ME WITH MUCH

OF THE ANALYSIS THAT I WILL PRESENT TO YOU

AND SIMPLY I COULD NOT HAVE GOTTEN ALL TOGETHER

IN TIME WITHOUT HER HELP.

I ALSO WANT TO THANK ALL OF THE OTHER STUDENT VOLUNTEERS

WHO WERE HERE GREETING YOU, CHECKING YOU IN

AND WHO ARE NOW SITTING AMONG YOU TODAY,

ALSO HOPEFULLY INTERESTED IN SEEING WHAT I'M GOING TO SAY.

BEFORE I START THOUGH, I ALSO NEED TO TALK ABOUT THE SPONSORS.

ALL OF YOU WHO CAME TODAY, WE COULD NOT DO THIS EVENT

WITHOUT YOUR FINANCIAL SUPPORT.

SPECIAL THANK YOU TO OUR PLATINUM AND GOLD SPONSORS,

THE PORT OF LONG BEACH, BEACON ECONOMICS, LONG BEACH CONVENTION

AND VISITORS BUREAU, THE DOWNTOWN LONG BEACH ASSOCIATES,

LA COUNTY SUPERVISOR DON KNABE AND MOLINA HEALTHCARE.

THANK YOU TO ALL OF YOU.

[ APPLAUSE ]

AND THEN THE MANY PEOPLE WHO SPONSORED AT THE SILVER LEVEL

BUT I WOULD BE HERE FOR A WHILE LISTING ALL OF THEIR NAMES.

LAST YEAR AT MY FIRST REGIONAL ECONOMIC FORUM,

I HONORED THE TRADITION OF JOE MAGADDINO BY PICKING A MOVING

TO KICK OFF MY PRESENTATION.

FOR THOSE OF YOU WHO HAD BEEN TO HIS PREVIOUS FORUMS,

HE HAD A WHOLE SLIDESHOW OF CURRENT MOVIES

AND LINKED THEM TO CURRENT EVENTS.

WELL, I DECIDED THAT REALLY WASN'T GOING TO BE MY APPROACH.

BUT LAST YEAR, I DECIDED TO DO A MOVIE AND SO THIS YEAR,

I'M GOING TO DO ONE AGAIN.

WHEN I WAS PREPARING MY PRESENTATION,

I NOTICED THAT THERE WAS A MOVIE COMING OUT,

THE "NEED FOR SPEED."

AND IT'S OUT AND I LIKED AARON PAUL IN BREAKING BAD

BUT I'M NOT GOING TO SEE THIS MOVIE.

IT LOOKS REALLY STUPID TO ME.

[ LAUGHTER ]

WHEN I THOUGHT THE TILE AND THE TOPIC

OF THE MOVIE WAS REALLY RELEVANT FOR TODAY.

FIRST, WE HAVE THE UPCOMING GRAN PRIX.

AND AS MANY OF YOU SAW WHEN YOU CAME IN,

THE BARRICADES ARE ALREADY UP AND WE ACTUALLY--

THAT'S WHY WE HAD TO SEND YOU THAT SORT OF CIRCUITOUS ROUTE

TO GET TO THE BALLROOM TODAY.

OBVIOUSLY, THERE'S A LOT OF EXCITEMENT ABOUT THAT STARTING

AND I UNDERSTAND THE AIRPORT GOT ITS CAR THIS WEEK AS WELL

AND IT'S NOW SITTING INSIDE THE AIRPORTS.

THE NEXT YOU FLY OUT, YOU MIGHT SEE IT THERE.

AND OBVIOUSLY, THERE'S THE DEBATE

ON WHETHER THE FORMAT AND--

IS GOING TO CHANGE AND THERE'S BEEN SOME DELAY ON THAT

BUT GRAN PRIX IS ON PEOPLE'S MINDS IN LONG BEACH.

AND SECOND OF ALL BECAUSE THE NEED--

BECAUSE THAT'S WHAT THE ECONOMY NEEDS.

IT NEEDS A LITTLE BIT MORE SPEED

BECAUSE WELL, WE'RE DOING BETTER.

RECOVERY IS STILL A LITTLE BIT SLOW.

SO, HOPEFULLY, OUR DISCUSSION TODAY WILL CONTRIBUTE

TO A GREATER DISCUSSION ABOUT THE GREATER LONG BEACH ECONOMY

AND HOW WE CAN COME TOGETHER AND CAPITALIZE ON AREA--

ON WAYS TO MAKE THINGS GROW FASTER WHILE MINIMIZING

ROADBLOCKS THAT WILL MAKE IT HARD FOR US

TO ACHIEVE THAT SPEED.

SO, LET'S GET STARTED.

BEFORE WE CAN TALK ABOUT LONG BEACH, WE HAVE TO TALK

ABOUT THE SETTING THAT WE ARE OPERATING IN.

CLEARLY, WE ARE OPERATING IN A TIME OF GLOBAL TENSION.

THE ANNEXATION OF CRIMEA BY RUSSIA THIS WEEK CREATES LOTS

OF POSSIBILITIES FOR ECONOMIC SANCTIONS

AND THEY'RE ALREADY BEING IMPLEMENTED AS WE SPEAK.

THIS CONTRIBUTES TO THE OTHER MAJOR,

GLOBAL INSTABILITIES WE'RE ALREADY ALL AWARE OFF, SYRIA,

AFGHANISTAN, IRAN, I COULD GO ON FOR A LONG TIME.

WHAT ABOUT THE GLOBAL ECONOMY?

WELL, THE 2014 GLOBAL FORECAST IS ABOUT 3 TO 3

AND A HALF PERCENT GROWTH

AND THAT IS AN INCREASE OVER LAST YEAR.

BUT ONE OF MY CONCERNS IS THAT THOSE FORECASTS ASSUME

THAT EUROPE IS GOING TO BE RECOVERING MORE THIS YEAR

AND CLEARLY WITH THE NEW STANDOFF OVER CRIMEA

AND THE POTENTIAL THAT THAT COULD HAVE

TO DISRUPT THE EUROPEAN ECONOMIES,

WE DO HAVE TO BE A LITTLE BIT CONCERNED

THAT THOSE GROWTH RATES MAY NOT BE REALIZED.

THERE'S ALSO SOME TALK THAT CHINA, MAYBE IT WON'T SLOW

DOWN THIS YEAR BUT DEFINITELY BY 2015,

AND THAT'S SOMETHING WE REALLY NEED TO BE AWARE

OF AS YOU'LL SEE WHEN I TALK ABOUT TRADE THAT GOES

THROUGH THE LOCAL PORTS.

US GDP, WELL, IT'S BEEN GROWING A LITTLE BIT STRONGER

THAN IT HAD BEFORE AND EVEN THOUGH 2013 ONLY SAW

ABOUT 1.9 PERCENT GROWTH.

THE SECOND HALF WAS THE STRONGER PART OF THAT HALF.

AND PROJECTED GROWTH THIS YEAR, ABOUT 2 AND A HALF TO 3 PERCENT

BUT WE NEED TO GET UP TO 3 PERCENT TO BE CLOSE

TO WHERE WE WERE IN THE '70S AND '80S ON AVERAGE.

SO, WE'RE STILL LAGGING A LITTLE BIT BEHIND.

THE BOTTOM LINE WITH THE US ECONOMY IS

THAT EVEN THOUGH WE SEEM TO BE RECOVERING ON THE GDP LEVEL,

THE PROSPECTS FOR JOB GROWTH ARE PRETTY WEEK.

IN A RECENT SURVEY OF THE TOP CEOS BY THE BUSINESS ROUNDTABLE,

THEY FOUND THAT ONLY 37 PERCENT EXPECT

TO INCREASE THEIR EMPLOYMENT IN THE US THIS YEAR,

EVEN AS THEY FACE 72 PERCENT INCREASE IN SALES

AND A 50 PERCENT INCREASE IN CAPITAL SPENDING.

SO, THEY'RE NOT REALLY EXPECTING TO TRANSLATE THAT INTO NEW JOBS.

AND CONSUMERS ARE ALSO CONCERNED

THAT THE JOBS ARE JUST NOT GOING TO BE THERE.

ONLY 13 PERCENT IN A FEBRUARY POLL BELIEVE

THAT THERE ARE GOING TO BE--

IT'S GOING TO BE JOB GROWTH THIS YEAR.

WE CAN'T TALK ABOUT THE FEDERAL ECONOMY OR THE US ECONOMY

WITHOUT TALKING ABOUT THE FEDERAL RESERVE.

WE'VE KNOWN FOR A WHILE NOW THAT THE FED IS STARTING

TO TAPER BACK ITS BOND-BUYING PROGRAM

AND THAT TAPERING WAS INITIALLY ASSIGNED

AT THE FED SAW THINGS MOVING IN THE RIGHT DIRECTION.

BUT THE GUIDANCE THIS WEEK TO TAKE OFF THE CAP

OR THE TARGET RATE

OF 6.5 PERCENT UNEMPLOYMENT SUGGEST THE FEDS STILL BELIEVES

THAT THERE IS SOME ONGOING UNCERTAINTY WITH OUR FUTURE.

NEVERTHELESS, THEY'VE ANNOUNCED THAT THEY EXPECT

TO START INCREASING INTEREST RATES AS SOON AS 2015

AND THAT CLEARLY IS PUTTING SOME FEAR INTO THE STOCK MARKET

WHICH WAS ALREADY STARTING TO KIND OF REAL

AFTER ITS NICE RETURNS FROM 2013.

THEN THERE'S THE FEDERAL BUDGET.

WE CANNOT GET SORT OF COMPLACENT INTO THINKING THAT JUST

BECAUSE THERE IS A DEAL THAT FUNDS US FOR THE REST

OF THE YEAR, THE THINGS ARE GREAT

WHEN IT COMES TO FEDERAL BUDGET.

WE HAVE RECORD DEBT AND THE CURRENT AGREEMENT

IN CONGRESS ONLY FUNDS US UNTIL REALLY SEPTEMBER 30TH.

AND THE WHITE HOUSE, THE CONGRESSIONAL BUDGE OFFICE

AND OTHERS HAVE ALREADY SAID THAT UNLESS MORE CUTS ARE MADE,

WE'RE GOING TO SEE THOSE ACROSS THE BOARD SEQUESTER CUTS AGAIN

IN 2014 STARTING OCTOBER 2014.

THEN, THERE'S THIS NEW SORT OF UNCERTAINTY COST BY THE END

OF THE FEDERAL UNEMPLOYMENT INSURANCE EXTENSION PROGRAM.

THIS DESCENDED IN DECEMBER NATIONWIDE

AND IT CUT UNEMPLOYMENT INSURANCE BENEFITS FROM UP

TO 63 WEEKS IN CALIFORNIA DOWN TO A MAXIMUM OF 26 WEEKS.

SO, IF YOU'D BEEN UNEMPLOYED FOR 37 WEEKS

AND YOU WERE STILL GETTING UNEMPLOYMENT INSURANCE,

YOU IMMEDIATELY LOST YOUR BENEFITS.

IN NORTH CAROLINA WHERE THEY ENDED THE BENEFITS' EXTENSION

SIX MONTHS EARLIER, THEY SAW A BIG DROP OFF

IN LABOR FORCE PARTICIPATION THIS, YOU KNOW,

THE UNEMPLOYMENT RATE GO DOWN TOO BUT THERE'S, YOU KNOW,

THESE PEOPLE THAT ARE LONG-TERM UNEMPLOYED MIGHT JUST DECIDE

TO DROP OUT OF THE MARKET.

AND OBVIOUSLY, YOU CAN'T OPEN A NEWSPAPER WITHOUT HEARING

ABOUT THE AFFORDABLE CARE ACT AND ITS IMPLEMENTATION.

ONE OF THE MOST PROMISING PARTS OF IT IS

THAT IT ELIMINATES THE ABILITY FOR YOU TO BE DENIED COVER

TO BASE ON PREEXISTING CONDITIONS.

AND THERE HAVE BEEN ABOUT A MILLION PEOPLE WHO HAVE SIGNED

UP UNDER COVERED CALIFORNIA

AND ABOUT FIVE MILLION PEOPLE NATIONWIDE.

BUT WE'RE STILL WAITING TO SEE THE FULL IMPACTS OF THIS.

SO, SOME OF THE POSITIVES IN MY VIEW IS

THAT YOU'VE SEEN PEOPLE LEAVE JOBS BECAUSE THEY DON'T HAVE

TO BE TIED TO THEM ANYMORE.

SO, YOU HEAR ABOUT PEOPLE RETIRING

WHO ARE STILL WORKING JUST

BECAUSE THEY NEEDED HEALTH INSURANCE.

YOU HEAR ABOUT PEOPLE, THEY WERE THINKING

ABOUT STARTING THEIR OWN BUSINESS.

I ACTUALLY HAVE SOME FRIENDS THAT ARE DOING THIS.

BUT A BIG UNDERLYING QUESTION THAT STILL THERE'S NO GOOD DATA

ON IS HOW MANY OF THESE NEW PEOPLE OR HOW MANY

OF THESE FIVE MILLION PEOPLE, THIS ONE MILLION

IN CALIFORNIA DIDN'T HAVE HEALTH CARE BEFORE?

ARE WE ACTUALLY ENROLLING NEW PEOPLE OR NOT?

AND ALL THE FEARS OF THE HEALTH CARE MANDATE ON BUSINESSES

BECAUSE OF THE DELAY AND ITS IMPLEMENTATION, WE'LL JUST HAVE

TO WAIT A LITTLE WHILE TO HEAR ABOUT THAT ONE.

THEN, THERE'S THE 2014 ELECTIONS.

IT COULD ALTER THE MAKEUP OF CONGRESS AND MORE LOCALLY,

WE HAVE A LOT OF IMPORTANT LOCAL RACES

LIKE THE LONG BEACH MAYORAL RACE

WHICH WILL DETERMINE THE ECONOMIC FUTURE OF OUT REGION.

GET OUT AND VOTE.

OK.

[ APPLAUSE ]

THEN THERE'S WATER.

YOU KNOW, WHEN I READ ABOUT THE ECONOMIC FUTURE, EVERYONE TALKS

ABOUT DROUGHT BUT THEY FAIL TO THINK ABOUT THE FACT

THAT WE CAN'T IGNORE THE WATER ISSUES IF WE'RE GOING TO--

IF WE'RE IN CALIFORNIA ESPECIALLY AND WE WANT TO TAKE--

WE WANT TO TALK ABOUT OUR REGIONAL GROWTH.

IN THE SHORT RUN, WE ARE GOING TO FACE HIGHER FOOD PRICES.

IN THE LONG RUN, THESE RISING WATER COSTS

AND SHORTAGES WILL DEFINITELY HURT THOSE WHO LIVE

AT THE ECONOMIC MARGIN BUT ALSO LEAD TO JOB LOSSES

AND OTHER MUCH MORE MAJOR ECONOMIC IMPLICATIONS.

EVEN JUST THE RISING FOOD PRICES COULD BE A CONCERN

IF YOU ARE LIVING AT THE ECONOMIC MARGIN ALREADY.

SO, HERE'S THE JANUARY DATA AT THE LOCAL LEVEL IN TERMS

OF UNEMPLOYMENT AND EVEN THOUGH UNEMPLOYMENT IS DOWN,

LA COUNTIES IS STILL ABOUT 1.3 TIMES THE NATIONAL LEVEL.

AND IN 2013, LONG BEACH'S UNEMPLOYMENT RATE WAS

ABOUT A PERCENTAGE HIGHER THAN LA COUNTY OVERALL.

SO, IT IS SOMETHING THAT WE HAVE TO TAKE SERIOUSLY EVEN

WHEN YOU READ THE NEWSPAPER THAT, YOU KNOW,

NATIONAL UNEMPLOYMENT IS ALMOST AT 6.5 PERCENT.

IT'S A LITTLE BIT HIGHER IN THIS REGION.

NATIONALLY, ABOUT 175,000 NEW JOBS WERE CREATED LAST MONTH

BUT THE NUMBER OF LONG-TERM UNEMPLOYED ALSO ROSE.

DROPS IN UNEMPLOYMENT CAN BE DUE TO A COUPLE OF THINGS EVEN

IF NO NEW JOBS ARE BEING CREATED.

IT COULD BE PEOPLE DROPPING OUT OF THE WORKFORCE

OR WORKING PART-TIME, WHICH MEAN THEY'RE NOT ACTUALLY ABLE

TO MAKE ENDS MEET.

ONE THING THAT CONCERNS ME IS

THAT LABOR FORCE PARTICIPATION HAS REACH LEVEL IS NOT SEEN

SINCE APRIL 1978.

AND THAT COULD BE ESPECIALLY WORRISOME

IF IT'S YOUNGER WORKERS DROPPING OUT

AND WE'RE ONLY JUST NOW STARTING TO SEE THE IMPLICATION

OF THE END OF THOSE EXTENDED UNEMPLOYMENT BENEFITS.

SO, YOU CAN SEE IN THIS CHART

THAT LABOR FORCE PARTICIPATION IS GOING

DOWN AMONG ALL AGE COHORTS.

SO, ONE THING I THOUGHT WAS KIND OF FUN.

I SAW A CHART, SOMETHING LIKE THIS IN THE PAPER, I DON'T KNOW,

SIX MONTHS AGO THAT WAS TALKING

ABOUT COMPARING THE ECONOMY OF 1978 TO 2014.

SO, IN APRIL 1978, WE HAD LABOR FORCE PARTICIPATION

OF 63 PERCENT JUST LIKE WE DO NOW.

AND YET IN APRIL 1978, ONLY 42 PERCENT

OF WOMEN WERE PARTICIPATING.

AND NOW, WE'RE UP TO 47.

SO, THAT'S REALLY CONCERNING TO ME

BECAUSE WOMEN ARE PARTICIPATING AT A HIGHER RATE AND

YET WE STILL HAVE THE SAME LABOR FORCE PARTICIPATION RATE

AS 1978.

SO, THAT MEANS THERE'S A LOT OF PEOPLE OUT THERE

WHO PROBABLY WANT TO HAVE A JOB WHO'VE JUST DECIDED TO DROP OUT.

SINCE THE NCAA STARTED THIS WEEK,

I ALSO THOUGHT I'D TELL YOU WHO THE FINAL FOUR THAT YEAR WAS.

IT WAS ARKANSAS, DUKE, KENTUCKY, AND NOTRE DAME.

AND KENTUCKY UNFORTUNATELY BEAT DUKE

IN THE FINAL SINCE I'M A DUKE FAN.

SO, YOU MIGHT BE NOTICING ME TRY TO LIKE CHECK MY PHONE AS SOON

AS THIS PRESENTATION IS

OVER SINCE THEY MADE THE UNFORTUNATELY MISTAKE

OF SCHEDULING THE DUKE GAME AT 9 AM THIS MORNING.

OK. SO, PER CAPITA INCOME IN THE REGION,

WE'VE SEEN IT REBOUNDED A LITTLE BIT

FROM HAVING DROPPED DURING THE RECESSION BUT YOU CAN SEE

THAT LA COUNTY IS CLOSE TO THE US AVERAGE BUT BELOW CALIFORNIA

AND BELOW ORANGE COUNTY, OK?

SO, THAT'S WHERE WE ARE WITH PER CAPITA INCOME.

AND DESPITE THE INCREASE, YOU KNOW,

LONG BEACH HAS A RELATIVELY LOW PER CAPITA INCOME

THAN IT DID-- COMPARED TO 2008.

SO, WE'VE HAD A BIG DROP HERE IN OUR AVERAGE INCOME.

AND OBVIOUSLY WHEN AVERAGE INCOMES GO DOWN,

THAT'S USUALLY ACCOMPANIED BY RISING OR STABLE POVERTY RATES

IN THE REGION, WHICH IS SOMETHING WE REALLY JUST

CANNOT IGNORE.

SO, SOME COLLEAGUES OF MINE AT THE UNIVERSITY

OF ILLINOIS HAVE DONE SOME WORK AND THEY'VE PROJECTED SORT

OF WHERE THEY-- THE COUNTRY IS GOING

AND THEN THEY'VE ALSO LOOKED

AT WHAT DIFFERENT METRO AREAS ARE GOING.

AND THIS IS THE PROBABILITY OF EXPANSION IN THE NEXT YEAR.

AND AS YOU CAN SEE, THE PROBABLY OF THE US ECONOMY IS GOING

TO EXPAND IS ALMOST 90 PERCENT.

AND YET, THEY'RE FINDING THAT A LOT OF THE METRO AREAS LIKE LA,

CHICAGO, THERE'S A LOT OF THESE OTHER METRO AREAS ARE NOT GOING

TO GROW QUITE AT THAT RATE.

SO, THAT'S SOMETHING WE WANT TO BE CONCERNED WITH

AND YOU CAN SEE LA IS DEFINITELY PRETTY FAR DOWN IN THAT RANKING.

SO, THIS IS THE STUFF I TOLD YOU ABOUT IN MY INTRODUCTION

THAT BEACON ECONOMICS HELPS ME WITH AND REALLY THIS IS TO LOOK

AT COMMUTING IN THE REGION USING DATA FROM THE US CENSUS

AND REALLY UNDERSTAND THE COMMUTING PATTERNS

BECAUSE IF WE'RE GOING TO UNDERSTAND OUR LOCAL ECONOMY,

WE NEED TO KNOW WHERE PEOPLE ARE LIVING AND WORKING

AND THE THINGS THAT ARE MOTIVATING THEM TO MOVE.

SO, THERE'S ABOUT 200,000 RESIDENTS IN THE CITY

OF LONG BEACH THAT ARE EMPLOYED AND ABOUT 66 PERCENT

OF THEM WORK OUTSIDE OF THE CITY OF LONG BEACH

AND THERE'S ABOUT 182,000 JOBS.

SO, IF YOU LOOK AT THIS, YOU CAN SEE THE RED ARE THE PEOPLE

THAT LIVE AND WORK IN LONG BEACH

AND THEN THE GOLD ARE THOSE WHO--

FROM LONG BEACH WHO COMMUTE OUT TO OTHER AREAS.

AND THE BLUE ARE THOSE WHO COMMUTE

IN TO LONG BEACH TO WORK.

AND AS YOU WOULD EXPECT, PEOPLE ARE GOING

TO MAKE MORE MONEY IF-- TO COMMUTE SOMEWHERE ELSE, RIGHT?

AND THAT MAKES SENSE BECAUSE YOU'RE WILLING

TO MAKE A LITTLE BIT LESS IF YOU CAN LIVE CLOSE

TO YOUR HOME POTENTIALLY

VERSUS IF YOU NEED TO COMMUTE ALONG WAY.

THERE'S GOT TO BE A FINANCIAL MOTIVATOR

FOR YOU TO GO SOMEWHERE ELSE.

SO, THIS ISN'T SAYING PEOPLE MAKE LESS IN LONG BEACH,

IT'S JUST SAYING THE PEOPLE THAT LIVE

AND WORK ON AVERAGE MAKE LESS.

AND THEN, IF YOU'RE GOING TO COMMUTE, YOU MAKE MORE.

HERE'S THE BREAKDOWN OBVIOUSLY, MOST OF OUR SORT

OF CROSS-COMMUTING IS WITH LA AND ORANGE COUNTY

BUT WE DO HAVE SOME OTHER AREAS AND, YOU KNOW,

OBVIOUSLY LIKE IF THEY'RE COMMUTING

AND AS THEIR GENERALLY PLACE IS VERY FAR AWAY.

BUT, YOU KNOW, INLAND EMPIRE AND I'M SURE THERE ARE PEOPLE I KNOW

SINCE WE HAVE COLLEAGUE-- AND MY HUSBAND AS A COLLEAGUE WHO LIVES

IN SAN DIEGO COUNTY, SO I MEAN PEOPLE COULD BE DEFINITELY

COMMUTING TO THOSE OTHER AREAS.

ONE OF THE THINGS THAT IS DEFINITELY NOT SURPRISING

TO ME IS WHEN YOU LOOK AT THE COMMUTERS BY INDUSTRY, YOU SEE,

IF YOU LOOK IN THAT FINAL COLUMN,

YOU CAN SEE THAT THERE'S THIS NET OUTFLOW OR THAT'S NEGATIVE

OR THAT WOULD BE A POSITIVE NET INFLOW OF PEOPLE

IN THE TRADE TRANSPORTATION AND UTILITIES INDUSTRIES.

CLEARLY WITH THE PORTS HERE, IT'S NOT SURPRISING THAT THAT'S

WHERE YOU WOULD BE RECRUITING THE MOST PEOPLE

WHO DON'T ALSO LIVE HERE TO COME IN.

IF YOU LOOK AT IT BY OCCUPATION,

YOU CAN SEE THAT PEOPLE ARE GENERALLY COMMUTING

OUT FOR ADMINISTRATIVE OFFICE TYPE JOBS

BUT WE'RE BRINGING PEOPLE IN, IN TRANSPORTATION AND HEALTH CARE.

AND AGAIN, IT'S PROBABLY NOT SURPRISING, WE HAVE A LOT

OF HEALTH CARE FACILITIES IN THE CITY

AND THEN OBVIOUSLY THE WORK-- THE JOBS RELATED TO THE PORTS.

NOT A BIG DIFFERENCE AND PEOPLE ARE COMMUTING

OUT AT ALL EDUCATION LEVELS AND PEOPLE ARE COMMUTING

OUT AT PRETTY MUCH ALL NET OUTFLOW

OF ALL INCOME LEVELS EXCEPT

THAT WE DO ACTUALLY SEE A HIGHER PERCENTAGE OF PEOPLE COMING

IN TO MAKE MORE MONEY AT THE HIGH LEVELS, OK?

SO, THOSE HIGH LEVEL JOBS ARE ATTRACTING PEOPLE

FROM ALL OVER THE REGION.

AND AGAIN, THAT'S NOT SURPRISING.

YOU'RE WILLING TO COMMUTE FURTHER

IF YOU CAN MAKE MORE MONEY.

AND IF THEY ALREADY LIVE SOMEWHERE

AND THEN THEY GOT THIS JOB, THEY MIGHT NOT DECIDE TO MOVE.

OK. SO, ONCE WE UNDERSTAND WHO WE ARE DEALING WITH NOW,

WE HAVE THESE PEOPLE SOME OF WHOM LIVE HERE,

SOME OF WHO COMMUTE AWAY, I MEAN WORK HERE,

SOME OF WHOM COMMUTE AWAY BUT WE HAVE PEOPLE LIVING

IN THIS REGION, WE NEED TO KNOW WHAT'S GOING

ON WITH THE HOUSING MARKET.

WE NEED TO UNDERSTAND WHAT'S GOING ON WITH HOUSING.

AND NOT SURPRISING, WE'VE ACTUALLY SEEN

THAT THE HOUSING MARKET STARTS TO RECOVER, PRICES ARE GOING UP.

BUT I DON'T KNOW IF YOU'VE NOTICED

BUT THERE'S DEFINITELY BEEN A SLOWDOWN IN SALES

IN THE LAST MONTH OR TWO.

I'VE SEEN A LOT MORE OPEN-HOUSES

AT THE SAME HOUSE WEEK AFTER WEEK.

THESE HOUSES ARE NOT TURNING OVER.

AND THAT'S EVIDENCED BY THE FACT

THAT THERE WAS A 16 PERCENT DECLINE

SINCE LAST YEAR IN SALES.

WE'RE STILL CONTINUING TO SEE FORECLOSURES FALL

AND THAT IS ALSO DRIVING THIS DECLINE

IN SALES 'CAUSE YOU DON'T HAVE THESE FORECLOSED HOUSES

BEING SOLD.

AND RENTS, WELL, THEY'VE GONE UP A BIT.

THEY'RE HOLDING A BIT STEADY NOW, OK?

SO, THEY WERE RISING QUITE FAST BUT THERE SEEMED TO BE SORT

OF SLOWING DOWN AND THAT'S PROBABLY MIRRORED WITH THE FACT

THAT THE HOUSING SALES ARE DOWN AS WELL.

SO, WHAT'S THE HOUSING MARKET FUTURE THEN IN LONG BEACH?

WELL, GIVEN THAT LONG BEACH

AND THE SURROUNDING COMMUNITIES ARE RELATIVELY BUILT UP AREAS,

YOU KNOW, IT'S UNLIKELY WE'RE GOING

TO SEE ENOUGH NEW HOUSING BUILT TO KEEP WITH DEMAND

AND SO WE'RE GOING

TO SEE HOUSING PRICES LIKELY CONTINUE TO RISE.

OFFSETTING THAT THOUGH MAY BE THE FACT

THAT NEW MORTGAGE LENDING RULES MAY MAKE IT HARDER FOR PEOPLE

WHO WANT TO BUY TO BUY AND THEN THAT COULD ACTUALLY LEAD

TO INCREASES IN RENTS.

SO, THERE'S A COUPLE SORT OF FORCES THAT ARE KIND OF GOING

AGAINST EACH OTHER WITH THE HOUSING MARKET.

BUT WE-- HOUSING MARKET INCREASE PRICES--

INCREASES GREAT IF YOU CURRENTLY OWN YOUR HOME,

IF YOU'RE IN THE HOUSING INDUSTRY.

BUT OBVIOUSLY AS HOUSING PRICES START TO GO BACK UP AGAIN,

WE CAN'T IGNORE THE ISSUES OF AFFORDABILITY.

YOU KNOW, THE LA MUCH A REGION RANKS AMONG ONE

OF THE LEAST AFFORDABLE METRO REGIONS AND LA

AND ORANGE COUNTY WERE NOTED AS TWO, THE SECOND

AND THIRD MOST UNAFFORDABLE PLACES ONLY BEHIND

SAN FRANCISCO.

AND LET'S PUT IT INTO PERSPECTIVE.

I LIVED IN DC FOR A LONG TIME.

THE MEDIAN INCOME IN LONG BEACH IS ABOUT 52,000 IN 2012.

AND THIS IS THE-- THIS IS SORT OF THAT MIDDLECLASS PERSON.

AND THE MEDIAN INCOME IN DC IS 64,000

AND HOUSING IS ABOUT THE SAME COST.

AND DC IS NOT ONE OF THE MOST AFFORDABLE CITIES.

IT'S ALREADY PRETTY LOW DOWN ON THE LIST.

HOUSING AFFORDABILITY IS ONE OF THE MAJOR DRIVERS AS WELL

AS THE LACK OF JOBS IN TERMS OF NET DOMESTIC OUT MIGRATION

FROM CALIFORNIA AND LA COUNTY.

IF YOU LOOK AT THE RESULTS FROM THE 2008

TO 2011 AMERICAN COMMUNITY SURVEY FROM THE CENSUS,

YOU CAN SEE THAT ROUGHLY 300,000 PEOPLE LEFT LA COUNTY

TO OTHER US COUNTIES WHILE ONLY ABOUT 200,000 MOVED IN.

AND THEN I SAW SOME INTERESTING DATA

FROM ALLIED VAN LINES SHOWING THAT THE NET OUT MIGRATION

OF PEOPLE WITH LARGE LOADS, WE'RE TALKING

ABOUT THE WEALTHIER AND MORE EDUCATED PEOPLE WHO HAVE A LOT

OF STUFF IS OBVIOUSLY THERE'S NEGATIVE

IN MIGRATION FOR CALIFORNIA.

AND TEXAS AND FLORIDA ARE THE PLACES WHERE THEY'RE GOING.

SO, LET'S TALK ABOUT EMPLOYMENT NOW.

EMPLOYMENT IS AN IMPORTANT PART OF TALKING ABOUT THE ECONOMY

OF GREATER LONG BEACH.

AND I'M GOING TO TALK ABOUT IT IN TERMS

OF THIS GREATER LONG BEACH REGION RATHER THAN JUST LOOKING

AT DATA FROM THE CITY OF LONG BEACH.

SINCE CLEARLY, THE CITY ITSELF IS NOT ITS OWN ECONOMY,

SO WE'RE SORT OF TALKING ABOUT CITIES THAT ARE RELATED

OR NEXT TO EACH OTHER.

SO, TOP INDUSTRIES IN THE REGION,

MANUFACTURING STILL REMAINS NUMBER ONE.

AND THEN THE OTHER ONE IS PROBABLY NOT SURPRISING,

TRAVEL AND ENTERTAINMENT, RETAIL, HEALTH CARE,

ADMINISTRATION, PROFESSIONAL SERVICES, GOVERNMENT, TRADE,

TRANSPORTATION, CONSTRUCTION, FINANCE.

THIS IS AS PERCENTAGE OF TOTAL JOBS.

YOU CAN SEE HERE SOME JOBS BY INDUSTRY FROM YEAR TO YEAR

AND WE'RE SEEING ACTUALLY SOME DROP IN THE HEATH CARE JOBS

BUT WE'LL TALK ABOUT THAT WE'RE MAYBE NOT CAPTURING SOME

OF THE JOBS IN THESE PARTICULAR NUMBERS

BECAUSE I COULD ONLY GET THEM FOR 2013.

SOME OF THESE HOME HEALTH CARE JOBS AND THINGS LIKE THAT.

SO, IF I PUT THEM IN, IT WOULD LIKE THIS HUGE INCREASE

BECAUSE I DON'T HAVE THEM IN MY 2012 DATA.

SO, THE PEOPLE MAY BE TRANSITIONING

TO DIFFERENT KINDS OF HEALTH CARE JOBS.

MANUFACTURING EMPLOYMENT CLEARLY IS DOWN BUT STEADY

OVER THE LAST COUPLE OF YEARS.

BUT WITH BOEING'S ANNOUNCEMENT THAT THE C-17 BUSINESS IS GOING

TO LEAVE, WE CAN'T EXPECT THAT NUMBER

TO HOLD STEADY FOR MUCH LONGER.

AND MANUFACTURING IS STRUGGLING OVERALL.

DURABLE GOOD ORDERS IN JANUARY AND DECEMBER WERE DOWN,

ALTHOUGH MOST OF THAT WAS DRIVEN

BY LOWER COMMERCIAL AIRLINER ORDERS.

BUT I THINK THAT THE BOTTOM LINE IS WE HAVE TO CONTINUE TO THINK

ABOUT DIVERSIFYING OUR ECONOMY AND LET IT BE OK

IF MANUFACTURING IS NOT NUMBER ONE ON THAT LIST.

HERE'S THE TRANSPORTATION EQUIPMENT MANUFACTURING JOBS

AND YOU CAN SEE THEY'VE BEEN STEADY BUT AS SOON

AS THOSE C-17 JOBS GO AWAY, YOU'RE GOING

TO SEE A BIG SPIKE DOWNWARD THERE AS WELL.

TRAVEL AND TOURISM, IT'S BEEN GOING WELL, SLIGHT UPTICK.

WE'VE SEEN MORE PEOPLE, MORE EMPLOYMENT AND FOOD AND DRINK.

ESTABLISHMENTS, WE'VE SEEN EMPLOYMENTS

AT LONG BEACH AIRPORT ON THE RISE AND 2013

WITH A STRONG YEAR FOR THESE INDUSTRIES.

HOTEL, YOU KNOW, OCCUPANCIES FORECAST TO BE

ABOUT FLAT THIS YEAR BUT LONG BEACH IS PREPARING FOR INCREASES

IN THE CONVENTION BUSINESS THANKS

TO ALL THE RENOVATIONS HERE AT THE CONVENTION CENTER

AND THE ARENA SO THAT THE HOTELS ARE PREPARING

FOR FUTURE INCREASES WITH RENOVATIONS, ET CETERA.

AND I BELIEVE THAT THESE LONG BEACH AIRPORT RENOVATIONS WILL

HELP DRIVE FUTURE PASSENGER TRAFFIC GROWTH EVEN THOUGH

THERE'S SOME EVIDENCE THAT 2013 TRAFFIC MAY HAVE BEEN A LITTLE

BIT DOWN.

RETAIL TRADE-- OOPS, SLIGHT UPTICK GOING STRONG.

HEALTH CARE, THIS IS THOSE SLIGHT DOWNTICK

THAT I SHOWED YOU FROM BEFORE AND SO WHAT'S GOING

ON WITH FUTURE OF HEALTH CARE EMPLOYMENT THEN?

SO, SEVERAL TRENDS ARE HEADING THIS

AND THESE ARE WHAT ARE GOING TO BE WHAT WE HAVE TO WATCH,

GOING BACK TO AFFORDABLE HEALTH CARE,

I MEAN THE AFFORDABLE HEALTH CARE ACT.

FIRST, THE NEED TO REDUCE COSTS.

HOPEFULLY, AN INCREASE IN THE NUMBER OF INSURED WHO SIGNED

UP THROUGH COVERED CALIFORNIA.

AND THEN THE THIRD TREND IS WHAT HAPPENS

WITH THIS GROWING YOUNGER AND OLDER POPULATION BOTH

OF WHOM DEMAND MORE HEALTH CARE SERVICES.

ALL THREE OF THOSE TOGETHER WERE GOING TO DETERMINE THE FUTURE

OF HEALTH CARE EMPLOYMENT.

GOVERNMENT EMPLOYMENT, YOU SAW THAT LOCAL GOVERNMENT IS DOWN

BUT FEDERAL AND STATES SEEM TO BE HOLDING PRETTY STEADY.

TRANSPORTATION AND WAREHOUSING.

SO, TRANSPORTATION AND WAREHOUSING IS THE STUFF RELATED

TO THE PORT AND YOU CAN SEE HERE THAT IT HAS BEEN ON THE UPRISE.

WE ALSO HAVE THE FACT THAT INBOUND CONTAINERS AT THE PORTS

OF LONG BEACH AND LOS ANGELES ARE BOTH UP.

AND WE ALSO SEE THAT EXPORTS ARE UP AT THE PORT OF LONG BEACH,

SLIGHTLY DOWN AT PORT OF LOS ANGELES BUT STILL

ON THE GENERAL TREND UPWARDS.

VALUE OF IMPORTS THROUGH BOTH PORTS IS UP

AND THIS IS WHY ASIA IS SO IMPORTANT.

NUMBER ONE TRADE THROUGH THE PORTS OF LONG BEACH

IN LOS ANGELES IS CHINA.

AND THEN JUST TAKE A LOOK AT THE REST

OF THAT LIST, EXCEPT FOR IRAQ.

THEY'RE ALL ASIAN.

SO, WE DO CARE IN THIS REGION ABOUT WHAT'S GOING

ON IN THE ASIAN ECONOMY.

TRADE WITH CHINA AND THE US OVERALL WHICH IS

THAT TOP BLUE GRAPH LINE AND IN CALIFORNIA, THE YELLOW LINE ARE

UP AND THEN YOU CAN SEE THAT'S ALSO UP AT THE TWO LOCAL PORTS.

AND THESE JUST TALKS ABOUT SOME OF THE MAJOR COMMODITIES GOING

THROUGH THE PORTS WHICH ARE THINGS LIKE MACHINERY, VEHICLES,

PLASTICS, FUELS, AND THESE ARE THE THINGS

THAT ARE DRIVING THE MAJOR EXPORTS

AND IMPORTS THROUGH THOSE PORTS.

THE PORTS ARE VERY IMPORTANT TO OUR LOCAL ECONOMY.

AS THEY PUT MONEY INTO CAPITAL INVESTMENTS

OVER THE NEXT FEW YEARS, THERE'LL BE ALL THOSE KINDS

OF INVESTMENT AND CONSTRUCTION TYPE JOBS.

WE STILL HAVE TO BE WATCHING WHAT'S GOING

ON WITH THE PANAMA CANAL NOW THAT THE EXPANSION HAS RESUMED.

AND CLEARLY, THERE'S GOING TO BE SOME MAJOR MANAGEMENT CHANGES

AT THE PORT AND THOSE WILL AFFECT WHAT HAPPENS

WITH THE FUTURE OF OUR LOCAL ECONOMY.

OTHER SERVICES ARE ALSO ON THE RISE.

AND THIS WAS THE NUMBER ONE CATEGORY IN MY TOP 10 IN TERMS

OF WHICH INDUSTRIES ARE GROWING.

SO, WHAT ELSE CAN I TELL YOU

ABOUT WHAT'S GOING ON IN LONG BEACH.

WELL, ACCORDING TO A SURVEY, THE LONG BEACH BUSINESS MONITOR,

SMALL BUSINESSES IN LONG BEACH ARE OPTIMISTIC ABOUT 2014.

WHAT OTHER EVIDENCE CAN I PROVIDE?

WELL, LET'S SEE HERE.

NEW HOTEL NEAR THE AIRPORT, ICU BUSINESSES OPENING UP ALL

AROUND TOWN, NEW RESTAURANTS, NEW SHOPS,

THE LEASING OF THE FLY DC JETS PLANT BY MERCEDES-BENZ,

BOEING'S ANNOUNCEMENT THAT EVEN THOUGH IT'S CLOSING

DOWN THE C-17, IT'S STILL GOING

TO BRING 300 NEW ENGINEERING JOBS TO LONG BEACH.

THE GREAT WORK THAT LONG BEACH CITY COLLEGE IS DOING

WITH ITS NEW INNOVATION FUNDS, SOCAL, THERE'S A LOT

OF POSITIVE THINGS GOING ON IN GREATER LONG BEACH THAT'S POINT

TO A GREAT ECONOMIC FUTURE.

BUT WE ALSO HAVE SOME CHALLENGES.

WE HAVE TO FACE THE FACT THAT THOSE 2,000 JOBS ARE GOING AWAY.

AND WE'RE POSITIONED IN SOME FAST-GROWING INDUSTRIES

LIKE HEALTH CARE AND SERVICES.

I BELIEVE THAT OUR BIGGEST OPPORTUNITIES ARE IN HEALTH CARE

IN CONTINUING TO GROW, THE TRANSPORTATION AND WAREHOUSING,

THINGS-- TYPES OF JOBS RELATED TO THE PORT, TRAVEL AND TOURISM,

AND ENCOURAGING ENTREPRENEURS TO START NEW BUSINESSES.

THEY CAN BENEFIT FROM LONG BEACH CITY COLLEGE'S NEW INNOVATE FUND

AND THEY MAY ALSO BENEFIT FROM BEING ABLE TO LEAVE JOBS

BECAUSE THEY'RE NO LONGER HELD

DOWN BY EMPLOYER SPONSORED HEALTH CARE.

SO, I HOPE THAT WHAT I'VE TOLD YOU TODAY HELPS YOU SEE

THAT MOST OF THE SHORT-TERM RECOVERY,

WE HAVE TO BE A LITTLE BIT SORT OF AWARE OF WHAT'S GOING

ON AT THE NATIONAL AND GLOBAL STAGE,

BUT I THINK WE CAN START PREPARING FOR THE FUTURE.

WE CAN START TRAINING PEOPLE FOR THE JOBS THAT ARE GOING

TO BE THERE A YEAR, TWO YEARS, FOUR YEARS, FIVE YEARS,

10 YEARS FROM NOW AND WE CAN CONTINUE TO BUILD

ON OUR ASSETS THE THINGS THAT ARE DOING WELL AND TRY

TO GROW LONG BEACH AND ITS SURROUNDING COMMUNITIES

TO A BRIGHTER AND MORE--

AND ECONOMICALLY DIVERSE BECAUSE THERE WILL BE FEWER

MANUFACTURING JOBS' FUTURE.

THANK YOU.

[ APPLAUSE ]

>> ALL RIGHT.

TODAY, I AM PLEASED TO WELCOME THREE DISTINGUISHED LOCAL

INDUSTRY EXPERTS THAT ARE GOING TO TALK ABOUT THEIR BUSINESSES

AND ORGANIZATIONS AND THE INDUSTRIES IN WHICH THEY OPERATE

AND HOPEFULLY THAT WILL HELP US GET A BETTER IDEA

OF WHAT'S GOING ON WITH THE LOCAL ECONOMY.

SO, I'M GOING TO FIRST INTRODUCE THE THREE PANELISTS

AND THEN ONCE I'VE INTRODUCED THEM, THEY WILL TALK

BUT THAT WAY, I WON'T BE INTRODUCING THEM IN BETWEEN.

AND I COULDN'T DECIDE WHETHER THERE WAS A GOOD ORDER

TO PUT THEM IN.

SO, FOR LACK OF A BETTER ORDER, I JUST MADE IT ALPHABETICAL.

SO, YOU KNOW, SO THERE'S NO

LIKE PREDETERMINED REASON WHY PEOPLE-- WHY THIS IS THIS ORDER.

AND I ASKED THEM IF THEY HAD A PREFERENCE

AND THEY DIDN'T EITHER.

SO, LET-- SO, OUR FIRST PANELIST THEN OUT OF--

THE FACT THAT IT'S ALPHABETICAL IS NOEL HACEGABA

AND HE IS THE ACTING-- EXECUTIVE DIRECTOR

AND THE CHIEF OPERATING OFFICER AT THE PORT OF LONG BEACH.

AND IN THIS CAPACITY, HE'S THE ONE

THAT MANAGES THE DAILY BUSINESS

OF THE PORT INCLUDING FOUR BUREAUS, 17 DIVISIONS,

AND OVER 450 EMPLOYEES.

SO, I THINK DAVID NEED TO GET BACK TO 100 PEOPLE,

YOU PROBABLY CAN RELATED.

HE BRINGS TO HIS CURRENT POSITION, KNOWLEDGE OF THE PORT

AND ITS STAKEHOLDERS BECAUSE HE WAS PREVIOUSLY EXECUTIVE

DIRECTOR OF THE HARBOR COMMISSION,

THE PORT'S GOVERNING BODY.

THERE, HE-- IN ADDITION TO MANAGING ALL THE ADMINISTRATION

AND COMMUNICATION, HE ALSO REPRESENTED THE HARBOR

COMMISSION BEFORE ELECTED OFFICIALS AND PORT STAKEHOLDERS.

NOEL HAS MORE THAN 17 YEARS OF PUBLIC

AND PRIVATE SECTOR EXPERIENCE, MOST RECENTLY,

PRIOR TO JOINING THE PORT AND HARBOR COMMISSION.

HE WORKED AT REPUBLIC SERVICES,

ONE OF THE NATION'S LARGEST ENVIRONMENTAL

SERVICES COMPANIES.

HE HAS BOTH UNDERGRADUATE AND MASTER'S DEGREES IN ECONOMICS.

GOOD CHOICE FROM USC AS WELL AS DEGREES IN BUSINESS

AND URBAN PLANNING AND HE HAS A DOCTORATE

IN PUBLIC ADMINISTRATION FROM THE UNIVERSITY OF LA VERNE

WHERE HE'S CURRENTLY SERVES ON THE FACULTY IN THE COLLEGE

OF BUSINESS AND PUBLIC MANAGEMENT.

HE'S ALSO A GRADUATE OF THE CORO FELLOWS PROGRAM

IN PUBLIC AFFAIRS, ONE

OF THE NATION'S PREMIERE POST-GRADUATE FELLOWSHIP

PROGRAMS AND HE IS A CANDIDATE FOR PORT PROFESSIONAL MANAGER.

IN ADDITION TO SERVING ON THE AMERICAN ASSOCIATION

OF PORT AUTHORITIES, ECONOMIC DEVELOPMENT COMMITTEE,

HE ALSO SITS ON A NUMBER OF BOARDS LOCALLY,

INCLUDING ST. MARY MEDICAL CENTER, THE MARINE EXCHANGE

OF SOUTHERN CALIFORNIA, THE HARBOR ASSOCIATION OF INDUSTRY

AND COMMERCE, ET CETERA, ET CETERA.

YOU MUST BE BUSY.

THANK YOU, NOEL FOR BEING HERE TODAY.

OUR SECOND PANELIST IS DIANA HENDEL.

DIANA IS THE CEO OF LONG BEACH MEMORIAL MEDICAL CENTER,

MILLER CHILDREN'S HOSPITAL LONG BEACH

AND COMMUNITY HOSPITAL LONG BEACH.

THAT IS A LONG TITLE.

DIANA HAS SERVED IN HER CURRENT ROLE SINCE 2009 BUT SHE HAS MORE

THAN 24 YEARS IN THE MEMORIAL CARE HEALTH SYSTEM

AND MOST RECENTLY WAS A COO.

HER EXPERIENCE AT MEMORIAL CARE INCLUDES SEVERAL ADMINISTRATIVE

POSITIONS INCLUDING ADMINISTRATOR

AT SADDLEBACK MEMORIAL MEDICAL CENTER, THE SAN CLEMENTE CAMPUS,

AND AS THE EXECUTIVE DIRECTOR

OF PHYSICIAN INTEGRATION AND STRATEGY.

DIANA HAS BEEN RECOGNIZED FOR HER LEADERSHIP

IN GROWING THE LONG BEACH HOSPITALS

AND FOR THEIR FINANCIAL PERFORMANCE AND PROMINENCE

AND IN THE HEALTH CARE FIELD MORE BROADLY.

SHE HAS BEEN HONORED WITH THE LOS ANGELES BUSINESS JOURNAL

WOMAN MAKING A DIFFERENT CEO AWARD, THE PRESS TELEGRAM,

AMAZING WOMAN OF THE YEAR IN THE HEALTH CARE AWARD.

AND THE WOMAN OF THE YEAR AWARD FROM WOMEN

IN HEALTH ADMINISTRATION OF SOUTHERN CALIFORNIA.

SHE HOLDS A DOCTOR OF PHARMACY DEGREE FROM UC SAN FRANCISCO

WHERE SHE ALSO SERVED AS AN ASSISTANT PROFESSOR AS WELL

AS A BACHELOR'S IN BIOLOGICAL SCIENCES FROM UC IRVINE.

SHE ALSO SERVES ON MANY BOARDS INCLUDING THE HOSPITAL

ASSOCIATION OF SOUTHERN CALIFORNIA,

CALIFORNIA CHILDREN'S HOSPITAL ASSOCIATION AND LOCAL BOARDS

SUCH AS THE LONG BEACH AREA CHAMBER OF COMMERCE,

THE LONG BEACH POLICE FOUNDATION AND MANY OTHERS.

AGAIN, WE HAVE A BUSY PANELIST.

AND SO, THANK YOU DIANA FOR BEING HERE TODAY.

OUR THIRD PANELIST IS MARIO RODRIGUEZ.

HE IS THE EXECUTIVE DIRECTOR OF THE LONG BEACH AIRPORT

AND HE HAS BEEN IN THAT ROLE SINCE 2009.

MARIO HAS MORE THAN 25 YEARS IN THE AVIATION INDUSTRY

AND IS A WELL-REGARDED AVIATION EXPERT.

MOST RECENTLY, BEFORE COMING TO LONG BEACH,

HE WAS THE LOUIS ARMSTRONG NEW ORLEANS INTERNATIONAL AIRPORT

WHERE HIS LEADERSHIP HELPED THE AIRPORT RECOVER QUICKLY

FROM THE EFFECTS OF HURRICANE KATRINA.

HIS PRIOR EXPERIENCE INCLUDES AIR FORCE IN KUWAIT AS WELL

AS PALM BEACH, FLORIDA.

MARIO IS AN ENGINEER BY TRAINING AND HAS A DEGREE

FROM THE UNIVERSITY OF MIAMI.

HE ALSO SITS ON THE BOARD OF AIRPORTS COUNCIL INTERNATIONAL,

IS PRESIDENT OF THE CALIFORNIA AIRPORTS COUNCIL.

AND HE HAS WON THE PRESTIGIOUS ENVIRONMENTAL ACHIEVEMENT AWARD

FROM AIRPORTS COUNCIL INTERNATIONAL.

HE IS ALSO A LEADING AUTHOR AND SPEAKER ON AVIATION ISSUES

AND IS CURRENTLY AUTHORING A TEXTBOOK

ON AIRPORT FINANCIAL MANAGEMENT.

VERY INTERESTING.

MOST IMPORTANT TO OUR LOCAL ECONOMY IS THE IMPRESSIVE RECORD

HE HAS HAD SINCE COMING TO LONG BEACH.

SINCE THE RENOVATION IS NOT ONLY IS EASY TO FLY IN AND OUT

OF LONG BEACH AIRPORT, IT IS SUCH A PLEASURE.

AND I HAVE TO TELL YOU THAT WE WERE INTERVIEWING SOMEONE

FOR AN OPEN-FACULTY POSITION WHO IS FROM ANOTHER COUNTRY

AND HE FLEW IN THROUGH LONG BEACH AIRPORT AND HE ASKS ME

IF THE FIRE PITS MEANT ANYTHING.

AND I SAID, "YES, THEY MEAN YOU'RE AT LONG BEACH AIRPORT."

IT'S JUST FOR THE ATMOSPHERE.

HE THOUGHT THERE WAS SOME KIND OF CULTURAL SIGNIFICANCE.

>> WE CAN MAKE ONE UP [INAUDIBLE].

>> SO, THANK YOU, MARIO FOR BEING HERE TODAY.

OK. SO, FIRST OF ALL, BEFORE WE BEGIN, I WANT TO GIVE A ROUND

OF APPLAUSE FOR THE PANELIST FOR BEING HERE.

[ APPLAUSE ]

>> IT'S REALLY A PLEASURE FOR ME TO BE HERE

AND I'M ACTUALLY JOINED BY TWO OF OUR HARBOR COMMISSIONERS,

DOUG DRUMMOND AND COMMISSIONER SUSAN WISE AND ONE

OF OUR COMMISSIONERS, DR. MIKE WALTER IN ADDITION

TO SEVERAL OF OUR STAFF.

IT IS BECAUSE OF THEIR LEADERSHIP

AND THE STAFFS' DEDICATION THAT I'M THE LUCKY ONE WHO GETS

TO TALK ABOUT ALL THE GREAT THINGS THAT'S TAKING PLACE HERE

AT THE PORT OF LONG BEACH.

IT'S AN EXCITING TIME AT THE PORT

BUT IT'S ALSO A CHALLENGING TIME.

WE SEE OPPORTUNITIES FOR US TO GROW OUR BUSINESS

AND MAKE THE TRANSPORTATION OF GOODS GREENER,

AND ALSO TO INCREASE THE NUMBER OF JOBS IN SOUTHERN CALIFORNIA

AND THROUGHOUT THE REGION.

BUT FOR THOSE WHO MAY NOT BE FAMILIAR WITH THE PORT

OF LONG BEACH, WE ARE THE NATION'S SECOND LARGEST SEAPORT

AND WE HANDLE EACH YEAR A WIDE RANGE OF CARGO VALUED

IN OVER 100 BILLION DOLLARS.

40 PERCENT OF THE NATION'S IMPORTS COME

THROUGH THE SAN PEDRO BAY COMPLEX.

PORT OF LOS ANGELES AND PORT OF LONG BEACH COMBINED.

THAT'S A HUGE NUMBER WHEN YOU CONSIDER THAT MOST

OF THE TRANS-PACIFIC TRADE COMES INTO THIS GATEWAY.

BUT PORT ACTIVITY AS IT RELATES TO ECONOMIC DEVELOPMENT

IN OUR LOCAL ECONOMY GENERATES ONE OUT OF EIGHT JOBS

IN LONG BEACH, OVER 300,000 IN SOUTHERN CALIFORNIA,

AND IF YOU LOOK ACROSS THE NATION, OVER ONE

AND A HALF MILLION JOBS.

THAT'S A HUGE JOB GENERATOR FOR ECONOMY.

LAST YEAR, JUST TO GIVE YOU A PICTURE,

OUR CARGO BOUNDS GREW BY OVER 11 PERCENT.

THAT'S THE PORT'S THIRD BEST YEAR

AND WE'VE BEEN AROUND FOR 103 YEARS.

TO PUT THAT IN PERSPECTIVE FOR YOU, WE WERE GROWING

AT THE FASTEST RATE OF ANY PORT IN NORTH AMERICA

AND WE GREW FASTER THAN THE US ECONOMY BY FOUR TIMES.

THAT'S VERY SIGNIFICANT.

BUT WE FACE INCREASE IN COMPETITION FOR MEXICAN PORTS

AND CANADIAN PORTS TO THE NORTH.

AND LET'S NOT FORGET ABOUT THE PANAMA CANAL EXPANSION PROJECT.

THEY WENT THROUGH A FEW BUMPS HERE ALONG THE ROAD THIS YEAR

BUT NOW, THEY'VE RESET THEIR COMPLETION DATE TO 2016.

THE REASON WHY PANAMA CANAL, THE EXPANSION PROJECT THERE IS

SO SIGNIFICANT IS BECAUSE IT WOULD ALLOW LARGER VESSELS

TO BYPASS WEST COAST PORTS AND GO DIRECTLY

TO THE GULF COAST AND EAST COAST.

WHY IS THAT IMPORTANT?

BECAUSE TWO-THIRDS OF THE US POPULATION RESIDES EAST

OF THE MISSISSIPPI RIVER, BUT WE ARE CONFIDENT AT THE PORT

OF LONG BEACH THAT WE WILL CONTINUE

TO MAINTAIN OUR COMPETITIVE ADVANTAGE AND ONE BIG REASON IS

BECAUSE THE SIZE OF THE VESSELS ARE GETTING BIGGER AND BIGGER.

THE GOOD NEWS IS THAT WE ARE ALREADY BIG SHIP READY.

UNTIL A COUPLE OF YEARS AGO,

THE TYPICAL VESSEL SIZE CALLING THE PORT

OF LONG BEACH WAS ABOUT 8,000 TEUS.

TWO YEARS AGO, WE RECEIVED THE FIRST 12,000 TEU VESSEL

AND THAT WAS FOLLOWING SHORTLY BY A 13,000-TEU VESSEL.

LAST YEAR, WE'VE ALREADY--

WE ALREADY RECEIVED THREE 14,000 TEU VESSELS.

NOW, FOR THOSE OF YOU WHO ARE NOT FAMILIAR WITH THE JARGON,

LET ME EXPLAIN WHAT TEU STANDS FOR.

IT STANDS FOR TWENTY-FOOT EQUIVALENT.

AND YOU SEE THESE STEEL BOXES ON SHIPS, ON TRUCKS, ON TRAINS,

THEY VARY IN LENGTH FROM 20 TO 40, SOMETIMES UP TO 53 FEET

BUT THEY'RE 8 FEET TALL, THEY'RE 8 FEET WIDE.

AND THESE CONTAINERS IF YOU PICTURE A VESSEL WITH AS MANY

AS 14,000 OF THESE TEUS, YOU GET A PICTURE

OF JUST AN APPRECIATION OF JUST HOW MUCH CARGO WE'RE

TALKING ABOUT.

WHEN YOU GO TO CARGO, WHEN YOU GO TO TARGET,

WHEN YOU GO TO WALMART AND YOU GO TO LOOK AROUND THE SHELVES

AND YOU LOOK AT THE PRODUCTS THAT YOU'RE CONTEMPLATING,

PURCHASING EVERYTHING FROM CLOTHES TO SHOES, TO TOYS,

TO ELECTRONIC DEVICES, CHANCES ARE THAT MOST OF THAT CAME

TO THE US ON ONE OF THESE-- IN ONE OF THESE CONTAINERS.

THE OTHER DAY, I WAS WITH MY FAMILY AND WE WERE LOOKING

AROUND AT DIFFERENT ITEMS IN A CLOTHING STORE,

AND I HAVE THIS REALLY BAD HABIT OF LOOKING

WHERE THESE ITEMS WERE MADE.

AND SO, MY WIFE IS TIRED OF THAT AND SO BASED ON THE COUNTRY,

I SAID, "THIS ONE PROBABLY CAME ON OOCL

OR THIS ONE PROBABLY CAME ON NY [PHONETIC]."

SHE SAYS, "I DON'T CARE, IS IT ON SALE?"

[ LAUGHTER ]

OVER THE NEXT FEW YEARS, WE WILL SEE A TREND

THAT IS TRULY AN INDUSTRY GAME-CHANGER.

OVER HALF OF ALL THE VESSELS

IN TRANSIT WILL BE 10,000 TEU OR LARGER.

THAT'S VERY SIGNIFICANT.

LET ME SHOW YOU JUST HOW BIG THESE VESSELS ARE.

IF YOU COMPARE A 14,000-TEU VESSEL WITH SOME

OF THESE OTHER LANDMARKS, YOU'LL NOTICE THAT THEY'RE NEARLY

AS LONG AS THE EMPIRE STATE BUILDING'S TALL

AND IT NEARLY THE WIDTH OF A 10-LANE FREEWAY

BUT THEY'RE ALREADY TOO WIDE TO PASS THE PANAMA CANAL

WHICH IS STILL UNDER CONSTRUCTION

AND SET TO OPEN IN 2016.

SO, WHY ARE THESE VESSELS GETTING BIGGER AND BIGGER?

WHAT'S DRIVING OR WHAT'S STIRRING THIS CHANGE?

THREE WORDS, ECONOMIST OF SCALE.

THE BIGGER THE VESSEL, THE LOWER THE COST PER CONTAINER.

LIKE COSTCO AND OTHER BIG BOX RETAILERS,

BUYING IN BULK REDUCES A UNIT COST.

HOW MANY OF YOU SHOP AT COSTCO?

AND I PRESUME IT'S NOT BECAUSE OF THE 150 HOTDOGS

AND POLISH DOGS THEY SELL OUTSIDE BUT WE SHOP AT COSTCO

BECAUSE YOU GET VALUE FOR THE PRODUCTS THAT YOU BUY.

WE LIKE TO BUY THINGS AT A LOWER PER UNIT COST.

BUT OF COURSE WHEN THAT HAPPENS, WE HAVE TO FIND SPACE

IN OUR HOMES TO PUT THAT STUFF THAT WE BUY.

MANY HOUSEHOLDS, PERHAPS YOURS NOW HAVE TWO REFRIGERATORS.

AND IN MANY HOUSEHOLDS, NOW YOU'RE-- HALF OF YOUR GARAGE,

IF NOT MORE IS UTILIZED AND USED FOR THESE THINGS THAT WE BUY.

IF YOU THINK ABOUT THE PORTS, YOU GET A BETTER SENSE OF SOME

OF THE STRUGGLES THAT WE FACE,

THE LARGER THE VESSELS, THE MORE CONTAINERS.

THE MORE SPACE WE HAVE TO FIND,

THE MORE EFFICIENT WE HAVE TO BECOME.

THE MORE INCENTIVES WE HAVE TO INCREASE PRODUCTIVITY.

THAT'S ONE REASON WHY OUR BOARD

OF HARBOR COMMISSIONERS HAS ESTABLISHED A SUBCOMMITTEE

TO EXPLORE WAYS TO IMPROVE THROUGH PUT EFFICIENCIES

AND ENHANCE PRODUCTIVITY AT THE PORT.

EARLIER, DR. STEPHENS WAS TALKING

ABOUT THE NEED FOR SPEED.

WELL, THE NEED FOR SPEED IS THERE AT THE PORT AS WELL.

AS THE VESSELS ARE GETTING BIGGER,

WE NEED TO DO WHAT WE CAN TO INCENTIVIZE

AND FACILITATE THE SPEED THROUGH WHICH THIS CARGO IS PASSING

TO OUR GATEWAY.

I TALKED ABOUT SPEED BUT IF THESE VESSELS ARE GETTING BIGGER

AND BIGGER, WE ALSO HAVE TO TALK ABOUT INFRASTRUCTURE.

THANKFULLY, WE ARE IN THE MIDST

OF A 10-YEAR 4.5 BILLION DOLLAR CAPITAL IMPROVEMENT PROGRAM.

IN ADDITION TO THE MODERNIZATION AND THE IMPROVEMENT

OF OUR BRIDGES, OUR INFRASTRUCTURE, OUR TERMINALS

AND OUR RAIL SYSTEM, WE'RE ALSO LOOKING AT THIS AS A GOOD WAY

TO INCENTIVIZE THE ECONOMY BY GENERATING NEW JOBS.

LET ME GIVE YOU AN IDEA OF HOW MUCH WE'RE SPENDING CURRENTLY.

IN THIS FISCAL YEAR, OUR CAPITAL BUDGET IS 788 MILLION DOLLARS.

WE ARE SPENDING 2 AND A HALF MILLION DOLLARS A DAY

TO MODERNIZE OUR INFRASTRUCTURE AND MAKE IT MORE ADEQUATE

FOR THE LARGER VESSELS TO MAKE OUR GATEWAY MORE COMPETITIVE

ON THE YEARS TO COME.

THAT'S THE BIGGEST ONE-YEAR CAPITAL BUDGET

IN THE PORT'S HISTORY.

NOW, WHY ARE WE DOING THIS?

BECAUSE WE WANT TO MAINTAIN OUR COMPETITIVE ADVANTAGE.

WE DON'T WANT THE CANADIAN PORTS OR THE MEXICAN PORTS

OR EVEN THE EXPANSION OF THE PANAMA CANAL TO BE AN EXCUSE

FOR THESE CARRIERS TO RUN THEIR CARGO

THROUGH THOSE OTHER GATEWAYS.

AND WE'RE VERY CONFIDENT THAT WITH THE INVESTMENTS

THAT WE'RE MAKING AND THE PARTNERSHIPS THAT WE'RE FORGING

AND CULTIVATING WITH ALL OF OUR STAKEHOLDER PARTNERS THAT WE'RE

IN A GOOD POSITION

OF MAINTAINING THAT COMPETITIVENESS.

ONE OF OUR BIGGEST PROJECTS IS

THAT MIDDLE HARBOR REDEVELOPMENT TERMINAL.

WHEN THAT'S COMPLETED IN 2019, THAT TERMINAL

BY ITSELF WILL RANK AS THE NATION'S FOURTH LARGEST PORT.

THIS IS GOING TO MORE THAN DOUBLE ITS CURRENT CAPACITY

AND CUT EMISSIONS BY 50 PERCENT.

JUST A FEW WEEKS AGO, THE FIRST CRANES, THE LARGEST CRANES

IN THE WORLD ARRIVED AT THE SITE OF MIDDLE HARBOR.

UNFORTUNATELY, I DID NOT GET PERMISSION TO BRING ONE

OF THE CRANES WITH ME TODAY TO SHOW YOU AND BECAUSE THE PICTURE

OF THE SLIDE SIMPLY WOULDN'T JUST IS, I BROUGHT A VIDEO.

SO, IF THIS WORKS, WE'LL ENJOY IT.

[ PAUSE ]

[ MUSIC ]

AND THAT'S HOW QUICKLY WE WORK AT THE PORT OF LONG BEACH.

[ LAUGHTER ]

WE'RE VERY, VERY SPEEDY.

DID YOU SEE THAT DR. STEPHENS?

OK. SO, AS YOU CAN SEE, OUR FUTURE IS BIG

BUT OUR FUTURE IS ALSO BRIGHT.

BUT THE BEST WAY TO APPRECIATE THE MAGNITUDE AND THE SCALE

OF WHAT'S TAKING PLACE AT THE PORTS IS TO SEE IT UP CLOSE

AND WE OFFER AT THE PORT OF LONG BEACH FREE TOURS

TO THE COMMITTEE [PHONETIC] DURING THE SUMMER MONTHS.

SO, PLEASE KEEP YOUR EYES OPEN FOR THAT.

AND FOR THOSE OF YOU WHO ARE REALLY, REALLY MOTIVATED

AND I WOULD ASSUME THAT ALL OF YOU IN THIS ROOM ARE

BECAUSE YOU SHOWED UP ON A FRIDAY MORNING AT 7.

WE HAVE OUR UPCOMING ANNUAL POST OF THE PART EVENT

AND THAT'S ON APRIL 2ND.

SO AGAIN, THANK YOU VERY MUCH

AND ENJOY THE REST OF THE PROGRAM.

>> [BACKGROUND MUSIC] TODAY,

THE BEST HEALTH CARE GOES BEYOND MEDICINE.

MEMORIAL CARE IS TRANSFORMING HEALTH CARE

WITH A PERSONALIZED APPROACH, KEEPING OUR COMMUNITIES HEALTHY

AND CARING FOR THEM THAT ARE NOT.

OUR PHYSICIANS USE BEST PRACTICES,

DRAWING ON THE LATEST RESEARCH FOR SUPERIOR OUTCOMES.

AND THANKS TO SEAMLESS CONNECTIVITY BRING THE BEST

OF OUR BEST RESOURCES TO INSURE COORDINATED CARE.

MEMORIAL CARE TAKES HEALTH CARE BEYOND TREATMENT, PUTTING PEOPLE

ON THE PATH TO WELLNESS WITH HEALTHY NUTRITION,

PHYSICAL ACTIVITY, AND THE RIGHT LIFESTYLE CHOICES.

MEMORIAL CARE HAS EXPANDED OUR REACH AND OUR REPUTATION

FOR QUALITY AND COMPASSION.

NOW, ONE OF THE LARGEST AND BEST HEALTH SYSTEMS RIGHT

IN YOUR OWN BACKYARD.

MEMORIAL CARE HEALTH SYSTEM, INVESTING IN YOU.

>> OK. I LIKE THAT PICTURE ACTUALLY.

>> WE CAN LEAVE THAT.

>> SURE. ACTUALLY, IT'S A GREAT VECTOR.

WELL, THANK YOU.

I CHOSE THAT VIDEO BECAUSE IT REALLY BEGINS

TO PORTRAY THE FUTURE OF HEATH CARE WHERE PATIENT INVOLVEMENT,

PATIENT CONNECTIVITY THROUGH ELECTRONIC CONNECTION

AND THE ABSOLUTE FOCUS ON PREVENTION

AND WELLNESS IS PARAMOUNT FOR THE SUCCESS

OF OUR TRANSFORMATION OF OUR HEALTH CARE DELIVERY SYSTEM.

JUST AS BACKGROUND AND REALLY TO FRAME THE COMMENTS

THAT I'M GOING TO MAKE, I WANT TO SPEND A LITTLE BIT

OF TIME TALKING ABOUT THE ORGANIZATION

THAT I'VE HAD THE PRIVILEGE TO SERVE.

FOR OUR THREE HOSPITALS WHICH ARE PART

OF AN INTEGRATED DELIVERY SYSTEM, MEMORIAL CARE

AS EVIDENCED ON THE VIDEO, WE PRIDE OURSELVES

ON BEING HAVE THREE REALLY STRONG CONNECTIONS

IN THIS COMMUNITY.

FIRST OF COURSE AS A VERY LARGE EMPLOYER, MANY OF YOU KNOW

THAT WE ARE AMONGST THE LARGEST EMPLOYERS

IN THE GREATER LONG BEACH REGION.

IN FACT, WE HAVE MORE

THAN 10,000 PEOPLE WHOSE LIVELIHOODS DEPEND UPON US

EITHER THROUGH DIRECT EMPLOYMENT,

THROUGH PHYSICIAN RELATIONSHIPS

OR INDIRECTLY INDEPENDENT CONTRACTORS.

MANY PEOPLE WHO LIVE AND WORK DIRECTLY

IN THE GREATER LONG BEACH AREA.

SECONDLY, WE HAVE A LONGSTANDING LEGACY OF EDUCATION.

MANY OF THE FOLKS, THE CLINICIANS,

THE CAREGIVERS HAVE TRAINED AT LONG BEACH MEMORIAL,

MILLER CHILDREN'S OR COMMUNITY HOSPITAL.

WE HAVE A STRONG CONNECTION OF COURSE WITH CAL STATE LONG BEACH

AND LONG BEACH CITY COLLEGE WHERE MANY

OF PRACTITIONERS HAVE GRADUATED AND THEN BECOME EMPLOYED

AT LONG BEACH MEMORIAL.

IN FACT, THERE ARE THOUSANDS OF STUDENTS ANNUALLY

WHO ARE TRAINED AT OUR THREE HOSPITALS.

ADDITIONALLY, OF COURSE, AND WHAT WE'RE REALLY WELL-KNOWN

FOR AS A PROVIDER OF HEALTH CARE,

MORE THAN 120,000 PATIENTS COME TO US

TO OUR TWO EMERGENCY DEPARTMENTS AT COMMUNITY HOSPITAL

AND AT LONG BEACH MILLER CHILDREN'S.

MORE THAN 350,000 PATIENTS ARE CARED FOR ANNUALLY EITHER

AS INPATIENTS OR AS OUTPATIENTS.

AND ALMOST 6,000 BABIES ARE BORN TO US.

AND I WOULD REMISS TO NOT ACKNOWLEDGE

THAT WE ARE EXTRAORDINARILY FORTUNATE

IN THE GREATER LONG BEACH AREA

AND WHILE I'M REPRESENTING THREE LARGE HOSPITALS

IN THE HEALTH SYSTEM.

WE ARE QUITE FORTUNATE TO HAVE AMONGST THE VERY BEST HEALTH

CARE PROVIDERS IN THE GREATER LONG BEACH AREA.

OF COURSE, WE HAVE FOLKS HERE FROM MOLINA

WHO SERVED THE UNDERSERVED POPULATION IT HAVE FOR DECADES,

CERTAINLY SCAN HEALTH PLAN WHO SERVE SENIORS.

MANY OTHER ARE NOT-FOR-PROFIT CLINIC--

CLINICALLY-ORIENTED FEDERAL QUALIFIED HEALTH CARE CLINICS

LIKE THE CHILDREN'S CLINIC, COMMUNITY CLINICS,

CERTAINLY ST. MARY MEDICAL CENTER, NUMBER OF OTHERS,

AND OF COURSE OUR OWN PUBLIC HEALTH DEPARTMENT.

AND WE'RE ONE OF THE FORTUNATE CITIES

THAT HAS OUR OWN CITY-LED PUBLIC HEALTH DEPARTMENT.

SO, WE'RE QUITE FORTUNATE IN THE GREATER LONG BEACH

TO HAVE AN EXTRAORDINARY WEALTH OF HEALTHCARE RESOURCES.

AND I THINK IT REALLY BODES WELL.

AND THE REASON I'M PURPOSELY AND INTENTIONALLY EMPHASIZING

THAT IS THAT, OF COURSE WE KNOW THAT THROUGH THE CHANGES,

THE TRANSFORMATION THAT ARE UNDERWAY

THROUGH THE AFFORDABLE CARE ACT.

OUR NEXT SEVERAL YEARS IN DECADES WILL BE TUMULTUOUS

AT BEST, MESSY AT BEST.

BUT WE'RE IN GOOD HANDS IN THE GREATER LONG BEACH AREA.

AND THE ABILITY TO INSURE THE HEALTH AND WELLBEING BOTH

FOR OUR EMPLOYEES, FOR OUR CITIZENS AND FOR CHILDREN

WHO BECOME FUTURE EMPLOYEES IS APPARENT NOT IMPORTANCE.

SO, OF COURSE, OUR HOSPITALS ARE NOT-FOR-PROFIT,

LONGSTANDING PROVIDERS OF CARE,

EDUCATORS OF NEXT GENERATION PROVIDERS AND OF COURSE,

VERY STRONG EMPLOYERS.

WE ARE PROUD TO BE NOT-FOR-PROFIT

BECAUSE HOW WE VIEW THAT MISSION IS THAT WE'RE HERE

TO SERVE EVERYONE IN THE GREATER LONG BEACH AREA REGARDLESS

OF COURSE OF AGE, GENDER, ETHNICITY,

RELIGIOUS AFFILIATION,

AND REALLY MOST IMPORTANTLY, ABILITY TO PAY.

SO, EVERYONE IN THE GREATER LONG BEACH AREA

IN THE SENSE IS OUR MEMBER.

AND SO, THE PROGRAMS AND SERVICES

THAT WE DESIGN ARE PURPOSEFUL IN ENCOMPASSING ALL PEOPLE

IN THE GREATER LONG BEACH AREA.

AND YOU'LL NOTICE THAT I EMPHASIZE PEOPLE,

BECAUSE WE USED TO TALK A LOT ABOUT PATIENTS AND WE STILL DO.

WE'RE HERE TO CARE FOR PEOPLE WHEN THEY'RE ILL.

BUT WE'RE REALLY HIGHLY FOCUSED

ON ALL PEOPLE LONG BEFORE THEY BECOME PATIENTS.

AND IT'S EVIDENCED IN THE VIDEO, THE IDEA OF PROVIDING CARE

AND TREATMENT BEFORE PEOPLE BECAME PATIENTS,

IMPROVING HEALTH AND WELLNESS IS A RADICAL TRANSFORMATION

IN OUR HEALTHCARE INDUSTRY.

NOT JUST FOR OUR REGION, BUT CERTAINLY FOR OUR NATION.

AND SO, OF COURSE AS I MENTIONED, WE'RE IN THE MIDST

OF UNPRECEDENTED IN MULTIYEAR.

IN FACT, I THINK WE'RE ON THE VERGE OF FOUR-YEAR MARK,

THE ANNIVERSARY OF THE PASSING OF THE AFFORDABLE CARE ACT.

AND, IT WILL TAKE MANY DECADES

TO LITERALLY TRANSFORM OUR HEALTH CARE DELIVERY SYSTEM

IN OUR NATION.

AND WHY WAS THE TRANSFORMATION NECESSARY?

WHY WAS THE AFFORDABLE CARE ACT OR SOMETHING LIKE IT NECESSARY?

AND I THINK IF WE RECALL BACK IN 2008, 2009, THERE WAS AN AMAZING

AND MASSIVE COLLISION OF TWO FACTORS

THAT REALLY NECESSITATES AN URGENT TRANSFORMATION

OF OUR HEALTH CARE DELIVERY SYSTEM.

AND THE ONE WAS THE RAPID RISING COST OF HEALTH CARE.

AND I MEAN COST OF HEALTH CARE.

WE HAD GROWN EXPONENTIALLY IN THIS NATION, LARGELY DUE TO COST

OF TECHNOLOGY, PHARMACEUTICALS, LONGEVITY,

CERTAINLY THE INCREASE THE NUMBER OF CHRONIC DISEASES

THAT OUR CITIZENS NOW HAVE, THE IMPACT ON CHILDHOOD OBESITY

AND OBESITY LATER IN LIFE.

CERTAINLY DEFENSIVE MEDICINE PLAYED A PART.

AND DIRECT TO CONSUMER MARKETING.

MANY OF US WANT TO BE CHOOSING OUR HEALTH CARE

AND HAVE THE RIGHT TO CHOOSE OUR HEALTH CARE.

ALL OF THOSE FACTORS COMBINED WITH A MECHANISM

FOR REIMBURSEMENT IS KNOWN AS FEE-FOR-SERVICE MEDICINE,

SO BEING PAID FOR VOLUME.

BEING PAID FOR THE NUMBER OF PRESCRIPTIONS FILLED,

THE NUMBER OF PROCEDURES DONE, THE NUMBER OF SURGERIES DONE,

THE NUMBER OF TIMES A PATIENT VISITS THE DOCTOR OR IS ADMITTED

TO A HOSPITAL,

THAT FEE-FOR-SERVICE REIMBURSEMENT MECHANISM

THAT EXISTED PREVIOUSLY.

AND ALL OF THOSE OTHER FACTORS COMBINED TO ESCALATE THE COST

OF HEALTH CARE TO DOUBLE WHAT OTHER DEVELOPED COUNTRIES HAD

BEEN SPENDING.

SO, IN OUR COUNTRY, WE SPEND ABOUT 8,500 DOLLARS PER PERSON,

WHICH IS MORE THAN TWICE WHAT OTHER DEVELOPED NATIONS SPEND

FOR A HEALTH CARE.

IT IS AN EXTRAORDINARILY LARGE PART

OF OUR NATION'S ECONOMIC ENGINE AT 18 PERCENT OF OUR GDP.

OTHER COUNTRIES SPEND ABOUT HALF AS MUCH AS I MENTIONED.

AND HAVE ABOUT THE SAME OUTCOMES.

AND ONE WOULD SAY, "WELL, WHY WOULD THAT BE?"

BECAUSE WE KNOW THAT WE HAVE AN EXTRAORDINARY HEALTH CARE SYSTEM

IN THIS NATION, AND BECAUSE

OF THE TECHNOLOGIES THAT I'VE MENTIONED.

BECAUSE OF THE ADVANCES IN PHARMACEUTICALS,

BECAUSE OF OUR INNOVATION IN HEALTHCARE

WHICH HAS BEEN A DRIVER FOR OUR ECONOMIC ENGINE,

BUT HAS ALSO LED TO INCREASE COST.

BUT OUR NATION HAS BEEN FOCUSED ON DIAGNOSIS,

TREATMENT, AND HEALING.

AND WE'VE DONE THAT AMAZINGLY WELL.

BUT WHAT WE HAVE NOT FOCUSED

ON IN THIS NATION IS PREVENTION AND WELLNESS.

NOT ON IMPROVING THE POPULATION, THE HEALTH OF OUR POPULATION

AND IMBEDDING IN REIMBURSEMENT, IDEAS OF IMPROVING HEALTH

AND WELLNESS FOR OUR CITIZENS.

NOW, THAT'S CHANGING, AND WE'RE IN THE MIDST OF THAT CHANGE.

BUT THAT WAS ONE OF THE LARGE TORNADOES THAT HIT IN 2008,

THIS RAPID RISE OF HEALTHCARE COST.

BUT NO LONGER COULD WE ALL AFFORD.

NO LONGER COULD THE GOVERNMENT WHICH FUNDS ABOUT 75 PERCENT

OF THE PATIENT CARE VISITS IN OUR COUNTRY.

NO LONGER COULD THE GOVERNMENT IN THE FORM OF MEDICARE

AND MEDICAID AFFORD TO KEEP PACE WITH THAT RISING COST.

SECONDARILY, ON THE OTHER TORNADO THAT HIT AND COLLIDED

AT VERY MUCH THE SAME TIME WAS THE GREAT RECESSION.

SO, NO LONGER COULD EMPLOYERS

AND EMPLOYEES AFFORD THE DOUBLE DIGIT INCREASES

IN PREMIUMS FOR HEALTH CARE.

UP TO THAT POINT, PRIVATE INSURANCE, PPO, HMO,

COMMERCIAL INSURANCE HAD EFFECTIVELY BEEN INTERNALLY

SUBSIDIZING THE COST OF HEALTH CARE THAT WAS UNDERFUNDED

BY THE FEDERAL GOVERNMENT.

SO, WHEN THOSE TWO ELEMENTS COLLIDED,

TRANSFORMATION WAS NECESSARY.

AND WITHOUT A DOUBT, SOMETHING NEEDED TO CHANGE.

AND SO, THAT'S WHAT HAPPENED WITH THE AFFORDABLE CARE ACT

IN MOVING TOWARD THIS IDEA OF CARING FOR THE HEALTH

OF POPULATION AND OF MERGING THREE FACTORS.

ONE, IMPROVING ACCESS, SO THAT ALL CITIZENS HAD ACCESS

TO AFFORDABLE INSURANCE, AFFORDABLE HEALTH CARE.

THE SECOND, BEING IMPROVING QUALITY AND THE PRIMARY DRIVER

OF IMPROVING QUALITY THAT I'LL SPEAK TO IS IMPROVING THE HEALTH

OF THE POPULATION IS HELPING TO PREVENT PEOPLE FROM BECOMING

OR HAVING TO BECOME ACTUAL PATIENTS

IN THE ACUTE CARE SETTING.

AND THEN THE THIRD ASPECT OF COURSE IS DECREASING COST,

BUT AS I HAD MENTIONED, HEALTH CARE REPRESENTS

ABOUT 18 PERCENT OF OUR GDP.

AND SO EFFECTIVELY, THIS MASSIVE INDUSTRY CANNOT BE

TRANSFORMED OVERNIGHT.

SO, WHILE WE MAY REALIZE

THAT AMAZING TRANSFORMATION MUST OCCUR, IT CAN'T OCCUR OVERNIGHT.

IT WILL TAKE DECADES, IN FACT I'VE OFTEN SAID,

THAT WE'LL LIKELY TAKE THE REST OF MY CAREER LIFETIME

TO AFFECT THE FULL IMPACT OF THE AFFORDABLE CARE ACT

AND ITS CHANGES, BECAUSE IN EFFECT,

IT IS THE PROVERBIAL GORDIAN KNOT.

IT'S NOT HEALTH CARE INDUSTRY, IT'S NOT SOMETHING

THAT CAN BE SIMPLY SEVERED NOR CAN YOU PULL ONE THREAD.

YOU MUST IMPROVE ACCESS.

YOU MUST IMPROVE QUALITY, THE POPULATION OF THE HEALTH.

AND YOU MUST DECREASE COST ESSENTIALLY ALL

AT THE SAME TIME.

AND WHEN I SAY, ALL AT THE SAME TIME,

I MEAN OVER A 10-YEAR PERIOD.

AND THAT'S EXACTLY WHAT HAS HAPPENED AND WHAT HAS BEGAN

TO HAPPEN AND WHAT WILL HAPPEN.

SO, I SPEND JUST A COUPLE MINUTES

ON EACH OF THOSE ELEMENTS.

SO, TALKING ABOUT ACCESS AND GETTING DOWN TO THE DATA.

IN LA COUNTY ALONE, IT'S ESTIMATED THAT PRIOR

TO THE IMPLEMENTATION OF THE EXCHANGES

AND THE EXPANSION OF MEDICAID.

ABOUT 1.6 MILLION PEOPLE WERE UNINSURED.

AND ABOUT HALF OF THE 1.6 MILLION WERE UNINSURED

AND WERE ELIGIBLE FOR THE EXCHANGES.

AND AS HEATHER MENTIONED, IN CALIFORNIA

ABOUT A MILLION PEOPLE HAVE ALREADY SIGNED

UP THROUGH THE EXCHANGES.

THERE ARE ANOTHER MILLION THAT ARE IN THE APPLICATION PROCESS.

AND WE EXPECT BY THE END OF MARCH TO HAVE CLOSE

TO THREE MILLION PEOPLE IN CALIFORNIA ENROLLED

THROUGH THE EXCHANGES.

BUT WHAT MAY NOT ALSO BE KNOWN THE OTHER PART

OF THE AFFORDABLE CARE ACT

AND THROUGH CALIFORNIA IS THE EXPANSION

OF MEDICAID ELIGIBILITY.

SO, IN JULY 1ST, 2013, THE ELIGIBILITY REQUIREMENTS

OR CRITERIA FOR MEDICAID,

MEDI-CAL IN CALIFORNIA WERE EXPANDED.

AND ABOUT HALF OF THE 1.6 MILLION PEOPLE THAT I MENTIONED

IN LA COUNTY ARE AND WERE ELIGIBLE

FOR THAT EXPANDED MEDICAID.

AND WE'VE ALREADY BEGAN TO SEE ENROLMENT IN MEDI-CAL INCREASE.

AND WE'VE ALREADY BEGAN TO SEE THE NUMBER OF PEOPLE WHO COME

TO OUR HOSPITALS THROUGH OUR EMERGENCY DEPARTMENTS

WHO ARE UNINSURED BUT WHO NOW QUALIFY FOR MEDI-CAL.

ALMOST THE DIRECT CORRELATION, INVERSED CORRELATION

IN A VERY POSITIVE MEASURE FOR US FINANCIALLY,

BUT MORE IMPORTANTLY FOR PEOPLE WHO NOW COME TO US

AND CAN BE MATCHED WITH A MEDICAL HOME.

SO, OF THE ABOUT 11,000 EMERGENCY DEPARTMENT VISITS

THAT WE HAVE AT LONG BEACH MEMORIAL, MILLER CHILDREN'S,

AND I KNOW THAT THESE STATISTICS ARE SIMILAR

FOR ST. MARY'S MEDICAL CENTER AS WELL.

ABOUT 2,500 PEOPLE PER MONTH OUT OF THE 11,000 COME

TO HAS UTILIZING THE EMERGENCY DEPARTMENT

BECAUSE THEY DON'T HAVE A MEDICAL HOME.

BECAUSE THEY'RE--

CANNOT CONNECTED WITH AN OUTPATIENT PHYSICIAN

OR PRIMARY CARE PHYSICIAN.

SO, WHAT'S NICE ABOUT THE EXPANSION OF MEDICAID

WHEN PATIENTS COME TO US AT THE EMERGENCY DEPARTMENT,

WE CAN MATCH THEM WITH A MEDICAL HOME.

WE CAN MATCH THEM TO AN OUTPATIENT PROVIDER.

SO, THAT THEY CAN RECEIVE CARE

IN A VERY APPROPRIATE SETTING INSTEAD

OF UTILIZING THE EMERGENCY, THE HIGH-COST EMERGENCY DEPARTMENT,

BUT ALSO IMPORTANTLY FOR THEM THE IMPROVEMENT OF THEIR HEALTH

AND WELLBEING FOR THEIR FUTURE AND FOR THEIR FAMILY'S FUTURE.

SO, WE LOOK AT THE NUMBER OF UNINSURED AND CAREFULLY

AND CLOSELY TRACK, WE DON'T HAVE AS GOOD A DATA FOR THOSE PEOPLE

WHO HAVE ENROLLED THROUGH THE EXCHANGES AS HEATHER MENTIONED,

WE'LL CLOSE OUT THE ENROLLMENT AT THE END OF THIS MONTH.

AND BY MIDDLE OF APRIL,

IT SHOULD HAVE SOME REALLY SOLID DATA.

AND HEATHER MENTIONED THAT IT'S REALLY CRITICAL

BECAUSE WE AREN'T SURE YET WHETHER PEOPLE ARE MOVING

FROM ONE INSURANCE PRODUCT TO ANOTHER WITHIN THE EXCHANGE

OR THEY WERE PREVIOUSLY, COMPLETELY UNINSURED

AND NOW JOINING THE EXCHANGE.

WE'RE BEGINNING TO SEE A LITTLE BIT OF BOTH

AT THIS TIME IN OUR HOSPITALS.

THE SECOND AND I MENTIONED THIS BRIEFLY IS THE VENUE OF CARE.

I MENTIONED OUR EMERGENCY DEPARTMENTS

IN ACUTE CARE SETTINGS.

WE ARE ALSO WORKING VERY CLOSELY WITH OUR COMMUNITY PARTNERS

AND WITH OUR OWN ORGANIZATION TO EXPAND ACCESS FOR CARE

IN OUTPATIENT SETTINGS SO THAT PEOPLE HAVE ACCESS TO CARE

FOR PREVENTION AND WELLNESS AND A FOCUS ON PREVENTION

AND WELLNESS BEFORE NEEDING TO COME TO THE HOSPITAL

FOR ACUTE CARE EPISODE.

SO, CONTINUE TO SEE THE GROWTH IF YOU WILL BOTH FOR EMPLOYMENT

BUT IN NUMBER OF VISITS AND NUMBER OF CARE SITES

IN OUR GREATER LONG BEACH AREA IN THE OUTPATIENT ARENA.

AND THEN THE THIRD ASPECT OF ACCESS IS RELATED

TO THE ELECTRONIC HEALTH RECORD ASPECT

OF THE AFFORDABLE CARE ACT.

ABOUT NOW MORE THAN HALF HOSPITALS

IN THE NATION HAVE ELECTRONIC HEALTH RECORDS.

AND ABOUT HALF OF THE MEDICAL GROUPS

AND PHYSICIAN OFFICES HAVE ACCESS AND FULL CONNECTIVITY

FROM ELECTRONIC PERSPECTIVE.

VERY SOON, 100 PERCENT IN THE NATION WILL BE

ON ELECTRONIC MEDICAL RECORDS.

FORTUNATELY IN GREATER LONG BEACH, THE HOSPITALS

AND HEALTH CARE PROVIDERS ARE ALL VERY WELL CONNECTED

AND REALLY LED THE WAY IN OUR NATION FOR CONNECTIVITY.

THAT WILL BECOME A VERY IMPORTANT ONE FOR REDUCING COST

BUT ALSO IMPROVING QUALITY BECAUSE OF THE ABILITY

OF CAREGIVERS TO COMMUNICATE WELL WITH ONE ANOTHER ESPECIALLY

IF THEY'RE IN DIFFERENT ORGANIZATIONS ON AND FOR

ON BEHALF OF THAT PATIENT, AND SO THAT WE

AS PATIENTS HAVE ACCESS TO OUR OWN INFORMATION AS WELL.

THE OTHER PART OF THE ELECTRONIC HEALTH RECORD AND THE IMPORTANCE

OF THAT IS IT GIVES FROM A SCIENTIFIC PERSPECTIVE ACCESS

TO AN AMAZING AMOUNT OF DATA.

AND AGGREGATED CAN REALLY SET THE TONE FOR THE FUTURE

OF HOW WE MAKE DECISIONS FROM A DIAGNOSIS PERSPECTIVE

OR FROM A PREVENTION AND WELLNESS PERSPECTIVE.

SO, THAT DATA MINING WILL BE INCREDIBLY IMPORTANT.

AND SO, WATCH OVER THE NEXT COMING YEARS

TO SEE THE PROLIFERATION OF DATA THAT COMES

THAT A SCIENTIFICALLY BASED FROM ELECTRONIC HEALTH RECORDS.

THE SECOND ASPECT THAT I MENTIONED

ABOUT THE AFFORDABLE CARE ACT IS THE QUALITY.

AND SPECIFICALLY, AND OF COURSE WE'RE ALWAYS INTERESTED

IN IMPROVING QUALITY AROUND ERRORS AND OUTCOMES,

BEST PRACTICES, ET CETERA.

AND THOSE HAVE LONG BEEN UNDERWAY

IN HEALTH CARE ORGANIZATIONS.

BUT WHAT'S NEW IS REALLY FOCUSED ON THE HEALTH OF THE POPULATION.

AND IMPLEMENTING AND DESIGNING AND THEN MEASURING THE IMPACT

OF PROGRAMS THAT IMPROVE THE HEATH OF OUR POPULATION, IMPROVE

AND INSURE PREVENTION AND WELLNESS,

INCLUDING MORE EMPLOYERS IMPLEMENTING PROGRAMS

FOR HEALTH AND WELLNESS.

AND YOU'VE SEEN THIS ACROSS OUR COUNTRY AND CERTAINLY

IN OUR REGION, MANY MORE EMPLOYERS DIRECTLY IMPLEMENTING

PROGRAMS TO IMPROVE THEIR OWN EMPLOYEES' HEALTH AND WELLNESS.

AND THEN THE THIRD ASPECT REALLY LOOKING

AT COST AND DECREASING COST.

AND SO, THROUGH IMPROVING ACCESS

IN CREATING AN AMAZING COMPETITIVE ENVIRONMENT

THROUGH THE EXCHANGES, MANY PEOPLE SAY THAT WELL,

THE GOVERNMENT IS NOW RUNNING INSURANCE.

I CAN ASSURE YOU THE STATE

OF CALIFORNIA FRANKLY HAS NO INTEREST

IN BEING IN INSURANCE PLAN.

IN FACT, THEY'RE ACTIVELY LOOKING TO REDUCE

AND REMOVE THEMSELVES AS THE INSURER.

IT'S SAFE TO SAY THOUGH IN THIS COUNTRY RIGHT NOW

THROUGH MEDICARE AND THROUGH MEDI-CAL, THE VAST NUMBER

OF OUR PATIENTS CURRENTLY ARE COVERED

BY GOVERNMENT-SPONSORED PLANS.

WE HAVE SEEN IN THE LAST 18 MONTHS A SLIGHT RISE

IN THE EMPLOYER-SPONSORED PLANS.

AND WE'VE SEEN THAT THE COST

OF THOSE EMPLOYER-SPONSORED PLANS HAS ONLY GROWN 4

AND A HALF PERCENT.

NOW, IT'S AMAZING FOR ME TO BE SAYING, ONLY GROWN 4

AND A HALF PERCENT AND CELEBRATING THE IDEA

THAT THE COST OF PREMIUMS INCREASING

ABOVE CPI IS SOMETHING TO CELEBRATE.

BUT YOU'LL RECALL THAT IN PREVIOUS YEARS,

THE COST OF PREMIUMS HAD BEEN EASILY IN THE DOUBLE DIGITS.

SO, WE ARE SEEING A DECREASE IN THE INCREASE IN PREMIUMS.

AND WE EXPECT BECAUSE OF THE EXCHANGES,

BECAUSE OF THE INCREASED COMPETITIVE ENVIRONMENT,

WE EXPECT THAT TO CONTINUE.

SO, THE PRESSURE ON COST WHILE IMPROVING AND MAINTAINING ACCESS

AND QUALITY IS AS PARAMOUNT.

WE ARE ALREADY SEEING THAT AND THAT OCCUR IN THIS NATION.

SO, I WOULD CLOSE WITH SAYING THAT WE CERTAINLY AND REFLECTING

FOR ALL OF YOU FROM AN ECONOMIC DEVELOPMENT PERSPECTIVE.

THREE KEY AREAS THAT WE WILL CONTINUE TO MONITOR AND MEASURE

AND DISPLAY DATA AS WE MOVE FORWARD

AS THE AFFORDABLE CARE ACT

AND ITS IMPLEMENTATION BECOMES MORE MATURE.

ONE IS OF COURSE ON THE IMPACT ON EMPLOYERS AND EMPLOYEES.

SO, DO EMPLOYERS AS THE EMPLOYER MANDATE,

WE ALL KNOW HAS BEEN MOVED BACK TO 2015,

DOES THAT COST ANY SHIFT IN NUMBER OF COMPANIES

THAT CONTINUE TO SPONSOR

OR OFFER EMPLOYER-SPONSORED HEALTH PLANS?

I THINK THE PREDICTION AT THIS POINT IS LIKELY NOT,

BUT POSSIBLE, SECONDLY IS JOB DEVELOPMENT.

AND AS HEATHER MENTIONED, OF COURSE HEALTH CARE

IN THIS REGION IS A MASSIVE ENGINE.

AND US AS AN EDUCATOR, AS WE LOOK FORWARD AND PROJECT

INTO THE FUTURE, WE SEE THAT THE GROWTH OVERALL

FOR JOBS WILL HAVE A SLIGHT INCREASE.

BUT WE EXPECT THAT THE SHIFT IN KINDS

OF PROVIDERS WILL CHANGE DRAMATICALLY.

WE WILL EDUCATE MANY MORE PRIMARY CARE PROVIDERS,

NURSE PRACTITIONERS, CLINICAL PHARMACIST AND OTHER CAREGIVERS

WHO WORK IN OUTPATIENT AND AMBULATORY SETTINGS.

AND THOSE CAREGIVERS WHO REMAIN A SPECIALIST WITHIN A HOSPITAL,

THEIR DEGREE OF SPECIALIZATION WILL CONTINUE

WITHIN THE HOSPITAL BECAUSE THE ACUITY, THE SEVERITY OF ILLNESS

FOR PEOPLE WHO ARE SEEN

IN THE HOSPITAL NOW HAS RISEN DRAMATICALLY.

AND THEN THIRD IS THE OVERALL HEALTH OF OUR POPULATION

AND MEASURING ELEMENTS LIKE CHILDHOOD OBESITY.

LIKE NUMBER OF DAYS LOST AT WORK BECAUSE OF ILLNESS.

AND SO, FOCUSING ON THOSE KEY DATA ELEMENTS WILL BE IMPORTANT

FOR OUR FUTURE.

I THINK FOR US AS A COMMUNITY WHEN WE THINK

OF POPULATION HEALTH AND HEALTH OF THE COMMUNITY,

WE THINK PRIMARILY ON BENDING THE CURVE OF CHILDHOOD OBESITY.

WE SAW SOME PRELIMINARY DATA THAT WAS PRODUCED A COUPLE

OF WEEKS AGO IN THE LA TIMES AND A NUMBER

OF OTHER JOURNALS INDICATING A SHARP DECREASE

IN CHILDHOOD OBESITY.

AND FOR CHILDREN YEARS OF AGE TWO TO FIVE, SUBSEQUENT ANALYSIS

OF THAT STUDY HAS REALLY DISPELLED THAT--

THAT WAS, IT WAS A SMALL SAMPLE SIZE.

AND SO, I THINK THAT WE MUST AS A COMMUNITY CONTINUE TO FOCUS

ON PROGRAMS THAT DECREASE OBESITY IN CHILDREN.

AND THEN SECONDLY IS LOOKING AT END OF LIFE,

INSURING THAT WE ALL TAKE RESPONSIBILITY

FOR MAKING DECISIONS FOR END OF LIFE FOR OURSELVES

AND FOR OUR FAMILIES AND FOR OUR PARENTS.

SO, I WILL CLOSE ON THAT, THANK YOU VERY MUCH

FOR THE OPPORTUNITY TO BE HERE, IT'S A PLEASURE.

[ APPLAUSE ]

>> OH, GOOD MORNING, THANK YOU VERY MUCH FOR HAVING ME HERE.

YOU KNOW, AS I WAS WALKING UP THE STAIRS TODAY

AND I ALWAYS HAVE THIS SAME THOUGHT IN THE MORNING.

WE ALL HAVE THE PRIVILEGE OF LIVING

IN THE MOST WONDERFUL COUNTRY ON THE FACE OF PLANET

THAT HAS THE MOST CAPABLE AIR TRANSPORTATION SYSTEM

ON THE GLOBE.

I CAN'T SPEAK ABOUT LONG BEACH AIRPORT

WITHOUT ACTUALLY TYING IT TO THE ENTIRE GRID.

IT'S BECOME SO MUCH PART OF OUR ECONOMY AND SO MUCH PART

OF OUR LIVES THAT YOU CAN'T DISENGAGE FROM IT.

YOU KNOW, WE COULD TRAVEL

ACROSS COUNTRY NOWADAYS IN A MATTER OF HOURS.

WE DON'T THINK ABOUT IT VERY DEEPLY.

BUT WE COULD TRAVEL ACROSS THE COUNTRY, SIT IN THE CHAIR,

WORK ON YOUR COMPUTER THROUGH WI-FI, WATCH A MOVIE,

AND BOOK ALL OF THIS IN A MATTER OF MINUTES ON YOUR IPHONE.

AND IT'S BECOME SO COMMON PLACE THAT WE FORGET

THAT WE'RE ACTUALLY IN SITTING INSIDE, WHAT IS IT?

ESSENTIALLY A 300-TON ROCKET FLYING

TO THE SKY ACROSS THE COUNTRY.

IT REALLY IS A MARVELOUS SYSTEM.

I MAY SHOW YOU A LITTLE BIT

OF HOW THIS SYSTEM LOOKS ABOVE YOUR HEAD.

THAT'S WHAT YOUR NATION LOOKS AT ANY GIVEN TIME,

THAT'S A SNAPSHOT IN TIME OF YOUR TRAFFIC CONTROL SYSTEM.

THERE'S OVER THREE--

THIS COUNTRY MOVES OVER THREE QUARTERS OF A BILLION PEOPLE

ACROSS THE NATION FROM STATE TO STATE EACH YEAR,

HUNDREDS OF THOUSANDS OF TONS OF CARGO, OBVIOUSLY DIFFERENT CARGO

THAN THE PORTS RECEIVE.

BUT IT'S AN ESSENTIAL PART OF EVERY ASPECT OF OUR LIVES,

EVERYTHING FROM THE SERVICE INDUSTRY,

ALL THE WAY TO ON DEMAND MANUFACTURING

AND IT IS SOMETHING THAT IS INCREDIBLY POWERFUL.

AND THIS COUNTRY WOULD NOT BE THIS COUNTRY WITHOUT THE SYSTEM.

AND TO THINK ABOUT IT ALL STARTED, YOU KNOW, AS AN ODDITY,

BACK ABOUT 100 YEARS AGO.

THERE'S A COUPLE OF GENTLEMEN THAT COME TO MIND,

ONE IS CAL RODGERS THAT ACTUALLY EXECUTED THE FIRST CROSS

COUNTRY FLIGHT.

HE BOUGHT WRIGHT FLYER FROM THE WRIGHT BROTHERS AND CAME

ACROSS COUNTRIES, LANDED HERE IN THE LONG BEACH ACTUALLY CRASH

ABOUT 17 TIMES ALONG THE WAY.

AND EVENTUALLY MADE IT HERE AND IT WAS AN ODDITY.

THEN THERE WAS ANOTHER GUY CALLED, CALLED TONY JANNUS

THAT STARTED WHAT IN ESSENCE IS THE FIRST AIRLINE.

FLYING PEOPLE, FERRYING PEOPLE ACROSS TAMPA BAY AND FLORIDA

WHICH IS A DISTANCE OF ABOUT HERE TO NAPLES ISLAND,

WHICH IS AN AMAZING FEET AT THAT TIME.

AND FROM THEN ON, IT'S TRANSFORMED TO BEING PART OF--

PART OF WHAT MAKES THIS COUNTRY INCREDIBLE.

NOW, THE NEXT SLIDE IS JUST THE NETWORK OF ONE AIRLINE.

THIS IS HOW WE MOVE ACROSS THE COUNTRY.

BY THE WAY, THIS IS DELTA AIRLINES AND WE BRING FEET

INTO DELTA AIRLINES THROUGH THEIR HUB IN SALT LAKE CITY.

SO, FROM THERE, WITHIN ONE HOP, YOU'RE ONE HOP AWAY FROM MOST

OF THE COUNTRY AND MOST OF THE WORLD.

SO, IT REALLY IS A POWERFUL-- WE DON'T THINK ABOUT IT BECAUSE WE,

WHEN WE TRAVEL, WE JUST TRAVEL FROM POINT A TO POINT B.

BUT THIS IS ONE AIRLINE.

AND, YOU KNOW, THERE'S AN OLD SAYING AND I'M NOT SURE

IF IT'S A CURSE OR A BLESSING, IT SAYS,

MAY YOU LIVE IN INTERESTING TIMES.

LIKE IT OR NOT-- WHETHER I LIKE IT NOT,

MY INDUSTRY IS ALWAYS CHANGING.

IT'S BEEN A DECADE SINCE WE HAD A PLETHORA OF AIRLINES

AND IN THE LAST DECADE WE'VE MANAGE

OR THE AIRLINES HAVE MANAGED TO CONSOLIDATE

TO ABOUT FOUR MEGA AIRLINES.

UNITED, DELTA, SOUTHWEST, AND AMERICAN AIRLINES.

WHEN THE AMERICAN AIRLINES AND US MERGER FINISHES,

FOUR MEGA AIRLINES WILL CONTROL ABOUT 85 PERCENT

OF THE DOMESTIC MARKET SHARE,

AND EACH AIRLINE TOWARDS ANY OTHER AIRLINE

IN THE FACE OF THE PLANET.

NOW, WHAT THAT MEANS IS THAT AS THE SOLIDIFY WHAT THAT MEANS

TO US IN LONG BEACH AND US AS CONSUMERS, AS THEY SOLIDIFY,

THEY BECOME STRONGER, THEY BECOME MORE EFFICIENT,

THEY BECOME MORE SOLVENT.

SO, IF YOU HAVE AIRLINE STOCK, GOOD FOR YOU.

YOU PROBABLY WON'T SEE ANOTHER BANKRUPTCY IN THE NEAR FUTURE.

NOW, IF YOU FLY, PRICES ARE GOING UP

AND THEY WILL CONTINUE TO GO UP.

AND THE AMOUNT OF SEEDS IN THE MARKET WILL CONTINUE TO GO DOWN.

THE AIRLINES, THE LARGER AIRLINES ARE RETRENCHING

IN LARGER MARKETS.

IN OTHER WORDS, THEY'RE LEAVING THE SMALLER MARKETS A LITTLE IT

AND RETRENCHING IN THE LARGER MARKETS IELAX

BECAUSE THERE IS EFFICIENCY IN THAT SORT OF CONSOLIDATION.

FOR THE TIME BEING, WE CAN PROBABLY PREDICT IN OUR INDUSTRY

THAT ALTHOUGH THERE'S A LIQUIDITY IN THE MARKET,

THERE DOESN'T SEEM TO BE A LOT OF STOMACH IN THE MARKET

FOR A STARTUP AIRLINES.

SO, YOU WILL NOT SEE LIKE A NEW SOUTHWEST ATTACKS

AND STARTING THE SOUTHWEST AIRLINES ANYTIME SOON.

BUT THINGS DO CHANGE.

LET ME SHOW YOU-- THIS IS HOW YOUR AIRPORT LOOKS.

NOW, THIS IS JUST THE DIRECT DESTINATIONS BUT WE DO TIE

INTO THAT GRID THROUGH MULTIPLE HUBS.

ONE OF THEM BEING PHOENIX, ONE OF THEM BEING SALT LAKE

AND OBVIOUSLY JFK, DALLAS HAS A HUB,

ET CETERA, ET CETERA, ET CETERA.

SO, YOU COULD TRAVEL ACROSS THE COUNTRY THROUGH THIS AIRPORT.

ONE OF THE THINGS THAT IS INTERESTING

ABOUT MY CAREER FIELD IS THAT IT'S NOT PREDICTABLE.

IF YOU LOOK AT THE AMOUNT OF BANKRUPTCIES AND THE AMOUNT

OF AIRLINES THAT HAVE GONE OUT OF BUSINESS AND THE AMOUNT

OF CARGO CARRIERS THAT HAVE GONE OUT OF BUSINESS IN MY INDUSTRY,

IT TEND-- YOU TEND TO BELIEVE OR LEADS YOU TO BELIEVE

THAT IT'S KIND OF UNSTABLE AND UNPREDICTABLE AND ACTUALLY IT IS

TO A CERTAIN DEGREE UNSTABLE AND UNPREDICTABLE.

SO, IN LIEU OF CRYSTAL BOWLING THINGS, YOUR AIRPORT

WHICH IS YOUR AIRPORT BELIEVES THE FINANCIAL TARGETS ARE

VERY IMPORTANT.

SO, IN THE LAST FIVE YEARS,

THE AIRPORT HAS INCREASED ITS NET REVENUES

BY ABOUT 50 PERCENT.

WE'VE INCREASE OUR NET RESERVES BY ABOUT 35.

THAT EQUATES TO AN OPERATIONAL RESERVE OF OVER A YEAR.

SO, IN OTHER WORDS, WHATEVER HAPPENS IN THE INDUSTRY

AND WE HOPE IT CONTINUES TO GO UP WE CAN OPERATE YOUR AIRPORT

FOR OVER A YEAR WITHOUT MISSING A BIT FINANCIALLY.

AND THAT'S BECAUSE OF THE INCREDIBLE ECONOMIC IMPACT

THAT IT PROVIDES TO THE AREA.

LIKE I SAID BEFORE, IT'S A GATEWAY TO THE CITY.

AND I-- THIS-- IT WAS WONDERFUL WHEN THE FIRST SPEAKER SAID

THAT A GREAT CITY DESERVES A GREAT UNIVERSITY.

THIS GREAT CITY DOES HAVE A GREAT UNIVERSITY.

BUT IT ALSO DESERVES--

[ APPLAUSE ]

BUT IT ALSO DESERVES A GREAT GATEWAY.

AND RIGHT NOW, WE HAVE A GREAT AIRPORT.

THE ORGANIZATION-- THE AIRPORT ORGANIZATION RIGHT NOW IS AN

AWARD WINNING ORGANIZATION.

WE'VE PICKED UP FOUR AWARDS IN THE LAST YEAR.

WE ALSO HAVE STATE-OF-THE-ART WORLD CLASS FACILITIES.

AND WE ALSO HAVE EXCEPTIONAL FINANCIAL PERFORMANCE.

SO, THE FUTURE IS REALLY LOOKING BRIGHT,

ALTHOUGH WE HAVE SOME SADNESS, OBVIOUSLY,

THE C-17 PROGRAM IS SLOWLY WANING AND, YOU KNOW,

ALL GOOD THINGS MUST COME TO AN END.

BUT, BY THE SAME TOKEN, THE GULFSTREAM, THE MANUFACTURING

OF GULFSTREAM JETS IS ACTUALLY GOING UP.

THERE'S MORE GULFSTREAM JETS BEING PREPARED

AT THE LONG BEACH AIRPORT AND FINALIZED

AT THE LONG BEACH AIRPORT.

LET ME SHOW YOU A LITTLE VIDEO, YOU KNOW,

A VIDEO IS WORTH A THOUSAND WORDS I GUESS ON THE ECONOMIC--

[ MUSIC ]

[ APPLAUSE ]

THANK YOU, YOU KNOW, AS PROFESSIONALS

AND THE AVIATION PROFESSIONALS, WE'VE PREPARED THE AIRPORT

TO BE POISED FOR THE FUTURE.

AND WE BELIEVE THE FUTURE IS BRIGHT AND WE'RE THERE

AND WE HAVE THE CAPABILITY OF CAPITALIZING

ON THAT BRIGHT FUTURE.

SO WE, ALTHOUGH WE SEE CHALLENGES IN THE FUTURE,

THERE'S ALWAYS CHALLENGES

IN THE AVIATION INDUSTRY, THAT DOESN'T CHANGE.

EVEN WHEN THE ECONOMY WAS GOOD, THERE WERE AIRLINE BANKRUPTCIES,

THERE WAS CHANGES IN AIR SERVICE.

WE'RE PREPARED TO DEAL WITH THAT FUTURE,

PREPARED TO MITIGATE ANY SORT OF PROBLEMS

AND CAPITALIZED IN THE FUTURE.

THANK YOU VERY MUCH.

[ APPLAUSE ]

>> WELL, THANK YOU TO ALL OF OUR PANELISTS

FOR SOME VERY INTERESTING VIDEOS

AND VERY INFORMATIVE PRESENTATIONS.

WE REALLY APPRECIATE ALL THREE OF YOU BEING HERE TODAY.

BEFORE WE WRAP UP THE EVENT, I WANT TO OPEN

UP TO QUESTIONS FROM YOU.

THIS IS YOUR CHANCE, IF YOU HAVE A QUESTION FOR ME OR FOR ONE

OF OUR PANELISTS THAT YOU WOULD LIKE TO POST, LET ME JUST--

RAISE YOUR HANDS, STAND UP AND I'LL RECOGNIZE SOMEONE.

AND THEN YOU CAN POST IT.

THIS IS A CHANCE TO BEGIN THE DISCUSSION

ABOUT OUR LOCAL ECONOMY, ABOUT THE FUTURE

OF THE GREATER LONG BEACH REGION.

AND ONCE WE'VE TAKEN SOME QUESTIONS, THEN WE'LL ADJOURN

AND YOU CAN CONTINUE THE DISCUSSIONS MORE INFORMALLY.

DO I HAVE ANY QUESTIONS FROM THE AUDIENCE?

OK, GO AHEAD.

>> THIS IS OUR QUESTION FOR--

EXCUSE ME, FOR EACH OF THE PANELISTS.

>> AND JUST IN CASE YOU COULDN'T HERE THAT IN THE BACK,

THE QUESTION IS TO EACH OF THE PANELISTS,

WHAT GROWTH OPPORTUNITIES DO YOU SEE

IN YOUR INDUSTRY IN LONG BEACH?

>> THAT WAS-- SINCE THE PORT WAS MENTIONED FIRST THEN,

I CAN RESPOND TO THAT IN-- I CAN GIVE YOU THE LONG ANSWER

OR THE SHORT ANSWER SO I'LL GIVE YOU THE SHORT ANSWER.

BY FOCUSING ON ONE ASPECT OF HOW WE CAN CAPITALIZED

AND LEVERAGE ON GROWTH.

SOME OF YOU MAY BE FAMILIAR WITH THE FACT THAT A FEW YEARS AGO,

PRESIDENT OBAMA UNVEILED THE NATIONAL EXPORTS INITIATIVE.

AND IF YOU LOOK AT THE DATA AND YOU LOOK AT THE CARGO VOLUMES,

YOU'LL NOTICE THAT THERE'S A LOT MORE MOVEMENT ON THE EXPORT SIDE

THAN THERE IS ON THE IMPORT SIDE.

AND SO, ONE OF THE THINGS THAT WE AS A PORT,

OUR LEVERAGING IS THE MOMENTUM BEHIND A PUSH

TO INCREASE EXPORTS, AND WE DO THAT BY--

WE HAVE A TRADE DEVELOPMENT STAFF THAT MEETS

WITH THE ENTREPRENEURS SMALL BUSINESS OWNERS.

AND WE TRY TO CONNECT THEM TO FIRMS OVERSEAS

TO INCENTIVIZE THEM AND ENCOURAGE THEM TO CAPITALIZE

ON THESE OPPORTUNITIES.

EXPORTS ARE A HUGE SOURCE OF JOB CREATION, NOT JUST HERE

IN LONG BEACH, THROUGHOUT THE REGION, THROUGHOUT THE COUNTRY.

AND SO, THAT'S ONE THING AND THAT'S ONE WAY THAT THE PORT

OF LONG BEACH IS SEIZING THAT OPPORTUNITY.

>> I WOULD SAY THAT THE ABSOLUTE PRIMARY AREA OF GROWTH IS

IN EXPANSION AND NEED FOR MORE PRIMARY CARE PROVIDERS.

AND THAT MEANS PRIMARY CARE PHYSICIANS,

FAMILY MEDICINE PHYSICIANS, INTERNISTS AND OTHERS, BUT ALSO,

MANY MORE PRIMARY CARE PROVIDERS SUCH AS NURSE PRACTITIONERS,

CLINICAL PHARMACIST AND OTHERS

WHO CAN WORK VERY CLOSELY WITH PATIENTS.

AND WE HAVE A SHORTAGE NOT JUST IN OUR STATE BUT CERTAINLY

IN OUR REGION OF PRIMARY CARE PROVIDERS.

AND SO, WE LOOK TO THE GROWTH OPPORTUNITIES

AROUND PRIMARY CARE, AND PRIMARILY

IN THE OUTPATIENT SETTING.

WE WILL CONTINUE TO SEE SOME GROWTH IN THE ACUTE CARE SETTING

AND SPECIALTY POSITIONS AND ANCILLARY POSITIONS.

BUT WE WILL SEE MUCH MORE GROWTH IN THE OUTPATIENT AREA

AND FROM A PRIMARY CARE PERSPECTIVE, SO.

>> RIGHT, THERE'S MANY, MANY, MANY EXAMPLES

OF WHAT'S HAPPENING IN THE INDUSTRY,

OBVIOUSLY THE C-17 PROGRAM 100 PERCENT CORRECT IS WANING.

AND IT WILL BE WANING IN THE FUTURE

AND IT'LL EVENTUALLY STOP PRODUCTION

AND THE PLAN WILL BE CLOSED.

SIMULTANEOUSLY, GULFSTREAM IS INCREASING THEIR ACTIVITY.

SO NOW, WHERE IS GULF--

THE GULFSTREAM PLANT

AT THE AIRPORT IS INCREASING ITS ACTIVITIES.

AND IT ALSO IS LOOKING TOWARDS EXPANDING ITS FOOTPRINT.

WE HAVE MANY, MANY PROGRAMS

AND FOR EXAMPLE AIR SERVICE MARKETING THAT WE'RE TRYING

TO BRING THE RIGHT AIR SERVICE TO THE AIRPORT

AND CONNECT THE RIGHT CITY PAIRS.

WE ALSO HAVE AN ACTIVE PROGRAM WITH CONVENTION

AND VISITORS BUREAU TO PROMOTE THE CITY

OF LONG BEACH AS A DESTINATION.

BASICALLY, WHAT WE'RE TYING TO DO, IT REALLY IS INTERESTING,

I DID THIS WHEN I WAS IN FORT LAUDERDALE.

FORT LAUDERDALE WAS ACTIVELY DEVELOPED AS AN ALTERNATIVE

TO MIAMI INTERNATIONAL AIRPORT

BECAUSE MIAMI INTERNATIONAL AIRPORT WAS A PAIN IN THE NECK

TO FLY INTO MIAMI INTERNATIONAL AIRPORT.

SO, YOU WANTED BUSINESS PEOPLE TO FLY THROUGH FORT LAUDERDALE,

SPENT A COUPLE OF ROOM NIGHTS IN FORT LAUDERDALE AND DRIVE

DOWN TO MIAMI AND CONDUCT BUSINESS.

IT ACTUALLY HEADED IN THE RIGHT DIRECTION.

WE'VE BEEN DOING THAT SLOWLY THROUGH PROMOTIONS

IN BOSTON AND IN NEW YORK.

FOR EVERY SINGLE PERCENTAGE THAT WE TURN IS AN ECONOMIC IMPACT

OF 20 MILLION DOLLARS TO THE CITY OF LONG BEACH.

SO, IT IS-- AND IT'S VERY DIFFICULT TO DO.

BUT IT'S BASICALLY SETTING INTO PEOPLES' MINDS

THAT THERE IS AN ALTERNATIVE TO LAX.

SO, AND THERE IS SEVERAL OTHER THINGS

THAT WE'RE MOVING FORWARD.

AND THAT'S WHY IF YOU LOOK AT THE AIRPORT,

MOST OF THE AIRPORTS OF THIS SIZE

AROUND THE NATION ARE LOSING A CONSIDERABLE AMOUNT OF TRAFFIC.

BURBANK HAS LOST I THINK ABOUT 25 TO 30 PERCENT OF ITS TRAFFIC.

ONTARIO HAS LOST 40 PERCENT OF ITS TRAFFIC.

IT'S A GREAT TRAGEDY OUT THERE.

WE'VE MANAGED TO HOLD STEADY.

AND WE'VE MANAGE TO HOLD STEADY BECAUSE OF ALL THIS ACTIVITY

THAT WE'RE DOING AND ACTUALLY THAT PROBABLY THE NEW--

THE NEW NORMAL IS THAT IF WE HOLD STEADY,

WE'RE IN GREAT SHAPE AND WE ARE IN GREAT SHAPE.

JETBLUE IS DOING WELL AND ALL OTHER AIRLINES ARE DOING WELL.

NOW, OBVIOUSLY THEIR SHIFTS IN ROUTE MAPS ALL THE TIME.

AND WE WORK WITH THE AIRLINES WHO TRY

TO CONNECT THE DOTS AS WELL AS POSSIBLE.

I DON'T KNOW IF THAT ANSWER YOUR QUESTION.

>> THANK YOU, ANY OTHER QUESTIONS?

OK. ALL RIGHT, SO WE'LL TAKE ONE MORE AND THEN I WILL, YOU KNOW,

AT 10 TO KEEP ON TIME.

I WILL, YOU KNOW, LET PEOPLE GO WHERE THEY WANT TO.

BUT GO AHEAD TIFFANY [ASSUMED SPELLING].

>> OK. A QUESTION FOR DIANA [INAUDIBLE] THE PHYSICIANS

ON YOUR [INAUDIBLE].

I WANTED TO ASK YOU WHAT [INAUDIBLE]

AND ALSO [INAUDIBLE].

>> WELL, SEVERAL DIFFERENT ASPECTS AND,

THANKS FOR THE QUESTION, TIFFANY.

WE HAVE STRONG RELATIONSHIPS WITH MOST

OF THE MAJOR UNIVERSITIES FOR GRADUATE MEDICAL EDUCATION.

AND SO, WE ARE LOOKING TO EXPAND THE NUMBER OF RESIDENTS

AND FELLOWS THAT ARE FOCUSED PRIMARILY

IN PRIMARY CARE MEDICINE.

SO, FOR EXAMPLE AT LONG BEACH IN MILLER CHILDREN'S,

WE HAVE 115 FULLTIME EQUIVALENT GRADUATE MEDICAL EQUIVALENCE

OR EDUCATION.

AND BUT MOST OF THOSE RESIDENTS

OR FELLOWS ARE FOCUSED ON SPECIALTIES.

AND SO, WE ARE MAKING THE CONVERSION

TO FOCUSING SPECIFICALLY ON INTERNAL MEDICINE.

ADDITIONALLY, WE HAVE AND DO HAVE

AND ARE GROWING OUR FAMILY MEDICINE RESIDENCY PROGRAM

THAT IS LONG BEACH MEMORIAL-BASED.

BUT ALSO IN IMPORTANTLY WORKING VERY CLOSELY

WITH CAL STATE LONG BEACH TO BOTH TRAIN NEW NURSES

AFTER WE GRADUATE 108 NURSES A YEAR

TO THE CAL STATE LONG BEACH PROGRAM.

MOST OF WHOM WE'RE ABLE TO EMPLOY DIRECTLY

THROUGH A TUITION DEFERMENT PROCESS.

THEY JOIN OUR ORGANIZATION.

AGREE TOP WORK FOR TWO YEARS, TUITION IS FORGIVEN.

SO, THAT'S BEEN A WONDERFUL WAY TO EMPLOY AND TRAIN ON SITE.

BUT THAT PROGRAM IS EXPANDING TO NURSE EDUCATION

INTO NURSE PRACTITIONER.

AND GRADUATE LEVEL NURSE PRACTITIONERS

WHO CAN CARE DIRECTLY FOR PATIENTS.

SO, THOSE ARE JUST TWO EXAMPLES ADDITIONALLY,

OUR CLINICAL PHARMACY RESIDENCY PROGRAM IS PRIMARY CARE-ORIENTED

CONTINUES TO GROW AND EXPAND AND FOCUS ON.

SO, THOSE ARE THREE EXAMPLES

WHERE WE'RE SHIFTING OUR CURRENT PROGRAMS, EXPANDING THEM

AND ALSO MAKING IT FEASIBLE FOR STUDENTS TO OVERCOME THE COST

OF TUITION, OVERCOME THE COST OF THAT ADVANCE EDUCATION.

>> ANYONE ELSE?

>> HI, GOOD MORNING [INAUDIBLE] SMALL BUSINESSES

[INAUDIBLE] SERVICES.

HAVE YOU BEEN IN THE CITY OF [INAUDIBLE]

IN THE LAST [INAUDIBLE]?

AND SO [INAUDIBLE] LONG BEACH.

I'M REALLY LOOKING [INAUDIBLE].

HOW CAN [INAUDIBLE] SERVICES?

>> YOU'RE EXACTLY THE PERSON I WANTED TO TALK THIS MORNING.

I'M HAPPY TO STICK AROUND AFTER THE PROGRAM TALK

TO YOU SOME MORE.

BUT THERE ARE DEFINITELY A LOT OF OPPORTUNITIES.

AND WE CERTAINLY HAVE AN OPEN DOOR POLICY ESPECIALLY THE LONG

BEACH BUSINESSES.

SO, I LOOK FORWARD TO TALKING WITH YOU.

WE HAVE A NUMBER OF PROGRAMS THAT WE CAN OFFER TO YOU

THAT YOU CAN TAKE ADVANTAGE OF.

ONE OF THE THINGS THAT I WANT TO ELUDE TO YOU EARLIER,

MY EARLY RESPONSE IS AS THE MIDDLECLASS IN ASIA,

PARTICULAR IN CHINA CONTINUES TO GROW.

THE DEMAND FOR US SERVICES AND GOODS ALSO GROWS.

AND SO, THERE'S A LOT OF OPPORTUNITIES,

BUT I LOOK FORWARD TO TALKING WITH YOU

AFTER THE PROGRAM SOME MORE.

>> OK, WE'LL TAKE ONE LAST QUESTION.

AND THEN LIKE I SAID, IF YOU WANT TO STICK AROUND AND COME UP

AND TALK, OUR PANELISTS WILL BE AROUND FOR A LITTLE WHILE,

YOU CAN ASK FURTHER QUESTIONS.

GO AHEAD SIR.

>> AND THEN FIRST [INAUDIBLE], YOU KNOW,

BASICALLY [INAUDIBLE] EVERYBODY

IN THE ROOM [INAUDIBLE] BUSINESSES WANT TO DROP,

CORPORATIONS WANT TO DROP, AND REALLY IS A REGULATORY CLASSES

THAT WE HAVE IN THE STATE [INAUDIBLE] STATE

THAT STARTS BUSINESSES [INAUDIBLE].

SO, THAT'S JUST SOMETHING FOR OUR MEMBERS OF [INAUDIBLE].

I APPLIED [INAUDIBLE].

BUT PEOPLE WANT TO GROW [INAUDIBLE] RESTRICTIONS,

THE IMPORTANT [INAUDIBLE].

WE CAN'T, WE'RE UNDER RESTRICTIONS.

MEDICAL SERVICES, YOU KNOW,

YOU CAN GIVE [INAUDIBLE] MIGHT HELP ME [INAUDIBLE].

BUT [INAUDIBLE] SORT OF LEGISLATIVES

AND ARE SOON TO BE LEGISLATIVES.

PLEASE [INAUDIBLE] REGULATORY PROCESS

BECAUSE THAT'S WHAT [INAUDIBLE].

>> OK.

[ APPLAUSE ]

>> AND I GUESS I WOULD JUST ADD THAT WE WANT

TO GROW WHAT IS MORE IMPORTANT

TO US IS US HELPING YOU KEEP YOUR EMPLOYEES HEALTHY

AND WELL SO THAT YOU CAN GROW.

AND THAT'S OUR PRIMARY FOCUS.

>> WELL, LET ME THEN STOP IT THERE.

LIKE I SAID IF YOU HAVE FURTHER QUESTIONS, FEEL FREE TO COME UP

AND TALK TO OUR PANELISTS WILL BE

AROUND FOR A FEW MORE MINUTES.

AND YOU CAN TALK TO FOLKS THAT ARE SITTING

IN THE DIFFERENT TABLE.

THERE IS FRESH COFFEE OUT IN THE LOBBY.

AND YOU CAN ENJOY THAT.

THANK YOU ALL AGAIN FOR COMING TODAY.

>> GREAT JOB.

>> I REALLY APPRECIATE IT, HAVE A GREAT DAY.

[ APPLAUSE ]

[ INAUDIBLE DISCUSSIONS ]

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