tv Washington Business Report ABC October 9, 2011 9:30am-10:00am EDT
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>> business news from the capital region. this is "washington business report" with abc 7ational correspondent rebecca cooper. >> thank you for joining us for looking business and finance issues in e washington region. first, a look at ways to tackle the unemployment problem that plagues ththe u.s. economy. while the washington area is better than the rest of the country, the city of washington dodoes not fare better. ththe district is a tale of two cities. there are places like ward 3 and then towardward 8 which is reported
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to have the highest umployment rate in the nation by bloomberg. sam ford tells us about a new program to focus hiring employed residents. >> ross is hiring dozens of d.c. workers. mayor gray was so anxious for people to know he held his biweekly news conference in front of the store to welcome them to town and here and from employeeees. >> i was unemployed for a year.r. i was thankful. >> with the d.c. unemployed rate at 11.1% -- >> we have no problem staff in it. i am excited >> the ross folks were intent on makiking itt d.c.-friendly a and asked the d.c. department to find workers. ththis mother of seven have not worked in four years.
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>> drove past it, and a big sign, now hiring, apply online, and the next dayay they called me back. >> she left work in 2019 >> i have no doubt. -- 2009. >> i had no doctor >> thank you to sam for. joining us to talk aboutobs and the economy d.c. mayor vincent gray. thank u for joining us on "washington business report." let's start with the program one city, one hire. why did you launch it? >> we decided that with the high on unplowed levels we have in the city, -- on employment levels in the city, and properly but, on the eastern level they are very high tide 25% in ward 8. some of the folks we have been talking about have been out of jobs for a very long time.
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it is a simple concept that says we have job vacancies in the city. we have people that need jobs. the city can be a bridge. we are working with the private sector for one city, one higher. we are asking folks to take responsibility. we will help them identify people. we will provide on-the-job training wages, tax credits. >> for example, the woman dead sam -- that sam talked to, you helped to write a proper resume. you are not requiring this. how'd you get businesses to go along with thi concept? >> the idea is to make it easier for them. they are looking to fill vacancies, which signs -- sounds odd in a climate of high unemployment, but we have vacancies in the city in the area. we are making it easier for employers to find candidates, get them to be able to put
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documents together, and takes them through preemployment stage so they could be r ready for an interview, and then we will fofollow up with support like tax credits and d other things that make it easier. we are not asking for people to put people in jobs that do not exist. we are trying to fill the jobs that do exist. >> you got the idea from atlanta. i noted in reading about the program that theirs was launched by someone in the private sector, the publisher of "the atlalanta business journal." what makes you think you will have more sway try to talk to businesses? >> creating the inctives that we are creating, and also giving people candidates that have alreadyy been screened -- we have a lot of people that are well- qualified that are out of work in this city. among the people unemployed in this cit 60% have college degrees. this is an effort to say to employers we want to be a
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partner with you. we w want to solve the unemployment problem, and also help you fill the vacancies that you have. >> let's get to the gap. there are some. you talk about the skills gap. there are 51,000 advertise to jojob openings, 36,000 unemployed residents, but not the right residents to fill those jobs in all cases. let's turn to other issues of concern, starting with schools. you are facing tough budget times, and one of the places seeing cuts is the school system. are you worried you are creating a long-term pblem? >> we did not cut the schools.. we had $187 million. >> you had teacher layoffs. >> not this year.. anyone who left left because of performance issues, not because we have to reduce the budget. we had no layoffs of teachers in this last cycle, over the summer going into the fall.
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so, we are investing in schools because we recocognize the long- term answer to this problem is to have an educated sophisticated work fororce who was prepared to be able to support themsees. we and vested in this fiscal -- we actually invested almost $100 million in additional dollars in public education here in the city. d.c. public schools a the public charter schooools which are e serving 40% of our schools >> you had teacher layoffs because of performance, but the union won a victory having to hire back some laid off during michele repo tender. -- laid off during michele r hee's tenure. >> if they deserve their jobs back, they should get it back. if you do not perform, you should not be in the j job.
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frankly, teaching our kidsds is one of the most important an honorable profession as we have. we have to make sure we have the best possible people doing it, best possible principles, readers get >> you have praised president obama for his jobs initiatives including tax incentiveses but here in the district you know the businesses complain that taxes are tooo hh in the district and that these incentives are not enough. they would like to see you lower the overall tax rate for the city. where are things in terms of that request? >> we will look at it, but the realitys we committed to the rating agencies on wall streetet the three that we work with, moodys, standard and poor's, and fitch, that we would he a structurally balanced budget going into the next fiscal year, which is important to maintaining our ratings, and that meant tough decisions. we had $187 million of cuts,s, but $127 million of revenue
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enhancements, and in some cases that my tax increases. i am not lookingo increase taxes any more. we hope is will even things out and we could see the ececonomy producing in the city, and because the tax decreases. >> i want to get a couple of more things in a news. you just announced 600 new police officers will be hired to >> 300. >> 300. still a significant numbmber. some say you have gotten over- zealous. the senator sid back off, mr. mayor, police officers are throwing people in jail for expired license tags. >> that licy is a longstanding one? >> a little harsh, do n think? >> first o all, it is after 30 days. its someone who has let it lapse. >> do you think they deserve to go to jail? >> we have said to our officers let's use good judgment and
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discretion. first of all, this is a throwback to a time when we had drug dealers driving around with on registered vehicles. it was a crime fighting tactic that was very effective. we are also talking about people who might be taking kids to school, who may have inadvertentlyverlooked that. >> i used to live in lincololn park, and now is a virtual sesasame street. >> we are telling the officers to light up. >> you are also coming under criticism from "the washington po" for a grass mowining issue. the war of the weeds. they say you have unfairly awarded a cutting contract to a higher bid be. >> i d did not -- bidder.. i did not award the contract. it came up on auction, and that is when you make the decision to
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it is a baltimore company that has six the eight words. the is no other city tried to make sure that t it goes they're. >> you make sure it was a d.c.- based company? >> no, we are simply read coete the contract to get people in the cit to bid. grass cutting should be putting our own people to work. why should we go to baltimore? >> m mr. mayor, always good to have you on that show. thank you so much. up next, a a small business ceo who m might make you feel like a
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>> in this week's small business spoight we feature heidi kallett, a mom turned mini-mogul. she is the ceo and president of the dandelion patch a stationery and gift store with locatitions in vienna, whe preston, and leesburg. we saw video. i'm not teasing you about your height but you are truly amazing. i know you through the charity work you do. you are a mob of two. your husband has a difficult job. how and why did you decide it was time to go into business for yourself? >> i wanted to make sure i was creating movement that did not forget about manners. halfs important to spread that
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message far and wide. -- it ismportant to spre that message far and wide. >> hi consomme get e-mails and you're constantly -- i constantly get e-mails, and you are constantly hosting seminars. >> we start of the youngest age. it is about children. i am worried about tomorrow's generation. i want to make sure we do not lose personal relationships. >> how do you account for the growth? is like you are struggling to keep a dying art alive, yet business is booming. >> we are doing really well. the short answer is defining who your customer i is. you can not be all things to all people so we have focused on milestone event. we focus on those and then use and the events that we could be part of. the people that celebrate those milestone events are certainly our customers.s. >> how do you compete with some
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of the bigger names? how do you as a small business make your name seen and heard? >> we are more custom, and probably more higher-end. we really try to save your out when someone - -- figure out that when someone receives austom his invitation that is totally looks like rebecca. >> i would love to see that. [laughter] >> how do you make time for the outside events? is that what keeps inteterest? >> i would be a liar to say it is notot good for business, but when i personally look around at what is going on in the world and i feel down on myself for having one of those moments the best thing to do is volunteer. i realize people have it so much worse. it helps me keep it in perspective. blocking out time for volunteer work is important >> heidi kallett, i was going to write you thank you note.
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i received d one wants from corn brown. it is so rare. >> it is memorable. >> it is. heidi kallett, thank you. ♪ ♪ ♪ ♪ [ multiple sounds making melodic tune ] ♪ ♪ [ male announcer ] at northrop grumman, every innovation every solution comes together for a single purpose -- to make the world a safer place. that's the value of performance. rthrop grumman. o0 c1 look, every day we're using
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kate, you have been traveling nonstop with the president. he has been going everywhere talking about his jobs plan, and he is targeting eric cantor. do peoeople know who he is, and y do they care? >> the idea is the white house is getting tougher because they have a lot of liberals say he has not been tough enough so in his press conference last week he saidd he wants the senate to come out with aggressive plans or i can not target them in these attacacks. he is going to orlando on tuesday, to pittsburgh to meet with union leaders, and later in the week, visiting sosome other key states. he wants to target them. he wants to bring up eric cantor and john boeoehner. that is the point. >> you are our glamour girl. while he is in glamorous florida, you will be in glamorous scranton.
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you have already been talking to you in leaders. what are you hearing from them? >> just like every other american, they are worried about the economy. i inherited a lot of dissatisfaction with the jobs plan, the idea -- i am hearing a lot of dissatisfaction with the jobs plan, the idea that he has not done enough. they realize republicans are not working with the president, but they say he could be more forceful. scranton were big hillary clinton supporters. there was never a lot of enthusiasm for the president in scranton. looking at them now, a lot of them are saying they wished him of the clinton would run this time around, which is not going to happen. >> peter, we got our monthly jobs report, and i have to give you credit. forecasters had expected adding 65,000 jobs. you predicted 80,000. it came in at 103,000. what is your take?
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>> it is better than last month, but it is more like a dead c cat bounce. we created 133,000 private- sector jobs, but we need to create 400,000 jobs a month each and every mth for 36 months to get unemployment down to 6%. the present has a problem because a lot of democrats do nolike the jobs plan,o they came up with a millionaire's tax to come up w with something the republicans can say no on but the realy is the democrats are slow-walking the president to >> i am one of the great optimist when it comes to congress. i see the good that could be done behind closed doors, and even i have given up on the congress and the president getting much work done between now and the campaign. peter, this week, tell us what can be done outside of washington to get the economy be moving again?
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>> there are a lot of things the present could do but will not. when his domestic energy producti. he could get a differentne energy secretary. that does not mean he pursues electric vehicles -- he does not pursue electric vehicles, but does so in tandem. he talks about china, gets irritated by check, but he looks like he is afraid to stand up to china. if we did some things about the trade deficit which is within the power of the president to effect if we would make a real process. there are legitimate complaints about banking regulation. we have increased layers of regulation on banks, and he keeps in defending it even thoughgh the banking situation the e home mortgage situation does not get better. >> i will give you a good grade for that answer, but an incolete. i want tonowhat the private sector can do? >> you cannot blalame genera electric for not building a
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light bulb factory if people are eager to buy chinese light bulbs because they are subsidized. you cannot blame people for bung imported oil if you do not let them buy in domestic oil. the president has to get out of the white, and he does not get it toyota >> -- get out of the way, and he does not get it. >> the president said the chinese are trying to gain the system, but he is worried be regulations would not get wto approval. >> a great story about aouth carolina delegation and how conservativeves are split. >> president obama wants us to think not like gerald ford but harry truman. he had a tough congress tuesday with, but acted on his own. his time to starart behaving like a president, not like a politician from chigo lambasting the rich, more tax breaks -- i can deal with china. i can do with energy.
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it is time for him to dl with that part >. >> he did at -- if he acted unilaterally on china, prices would go up. >> absolutely. >> we are going have this debate. let's talk about the debate that is coming up. your news organization, bloomberg, is hosting the next big debate. >> that is right. we h have a debate in new hampshire, the first solely about the economy. it will be 8:00 p.m. on bloomberg television and streaming live. >> is funded by the peterson institute. >> i will be going to new york thatight to appear the next morning on fox to help cover the debate appeared >> ver good. all-star lineup and all-star coverage. we will have this debate after the debate. thank you for joining us. up next, our number for the weeeek -- 188,003 and 74.
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