Winn - I don't think we've had success (yet) with Google calendar / ics integration. We're passing a valid "local time" as far as i know - but Google seems to be interpreting it as UTC with no offset.
The relevant ical doc from this page - http://www.ietf.org/rfc/rfc2445.txt
FORM #1: DATE WITH LOCAL TIME
The date with local time form is simply a date-time value that does
not contain the UTC designator nor does it reference a time zone. For
example, the following represents Janurary 18, 1998, at 11 PM:
You can potentially try experimenting with modifications of the ics file and see if you can get the correct result. If so, post back (with a patch if possible), or just let us know what worked and we'll see if we can incorporate a fix for a future version. You can either modify the .ics file directly, or modify the template which formats it: templates/CRM/Core/Calendar/ICal.tpl