California leaders advocate for regional cost of living adjustments and small business support

The California Assembly Committee on Economic Development, Growth, and Household Impact convened on July 11, 2025, to discuss critical issues affecting local economies, particularly in San Diego. The meeting highlighted the need for tailored economic support measures to address the unique challenges faced by communities in high-cost areas.

One of the primary topics was the proposal for a regional cost of living adjustment (COLA) index. Advocates argued that the current statewide formula does not accurately reflect the financial realities of families in San Diego, many of whom live just above the federal poverty line but struggle to achieve financial security. A regional COLA would provide better support for these working families.

Additionally, the committee discussed the establishment of small business affordability zones. These pilot programs would aim to offer targeted relief through measures such as rent stabilization, tax credits, and childcare subsidies. The focus would be on high-cost neighborhoods that are experiencing significant displacement, ensuring that legacy and culturally significant businesses can continue to thrive.

The conversation also touched on the importance of local funding and flexibility in policy implementation. Committee members noted that previous federal funding, such as block grants, has diminished, making it essential to adapt local policies to better serve small businesses, particularly in culturally diverse areas like the convoy pan Asian cultural district.

Overall, the meeting underscored the necessity for bold and creative solutions to support California's communities, especially in the face of rising living costs and economic challenges. The committee's discussions will inform future legislative efforts aimed at fostering economic resilience and stability for families and businesses across the state.