CERRITOS -- The state budget shortfall and skyrocketing workers' compensation costs make it unlikely Long Beach will get a commercial aerospace program that could create thousands of jobs, Los Angeles County Supervisor Don Knabe said Friday.

"We're fighting to get the 7E7 in Long Beach, but I think the chances are slim and none,' Knabe told a group of business people. "Just because of our business climate in California.'

Knabe was speaking at the Cerritos Chamber of Commerce's luncheon held to update businesses on state legislation and other issues that affects them.

Dozens of states, and other cities across California, are bidding to build the aerospace giant's next long-range commercial aircraft.

It's estimated that the program could create 1,200 direct jobs and another 2,000 to 5,000 indirect jobs. The fiscal impact on Long Beach would reach billions over the life of the program, economists say.

But that's only if the assembly line isn't established elsewhere, such as in one of the many states where the cost of doing business is lower.

Knabe echoed the sentiments expressed by several business people that workers' compensation costs, which have more than doubled for many businesses in the past year, are a key worry.

"Workers' comp? Out of control,' Knabe said. "Totally out of control. It is absolutely driving business from this county and the state.'

Another key worry is the state's budget cuts, which could cost the county an additional $230 million to $306 million, Knabe said.

Assemblywoman Jenny Oropeza, D-Long Beach, who recently returned from Sacramento, where legislators locked themselves in the Capitol for more than 24 hours until a budget package was approved, said no one will be spared the pain of the cuts.

"The cuts will be felt virtually in every corner of our state,' she said. "Everybody's going to feel a little pain.'

Lawmakers made $15.5 billion in cuts to balance the budget.

Oropeza, known more for championing workers rights than for business advocacy, said workers' comp costs and the rising cost of doing business in California were a bipartisan concern.

Ensuring that workers are treated fairly and keeping businesses from fleeing the state are both priorities in Sacramento, she said.

"It's a delicate balance, but one that we've got to find,' she said.

Several business owners told Oropeza they would be forced to leave the state or shut down if workers' comp costs do not come down.

"If we see another increase anywhere near what we saw this year, we are going to be forced to move out of California,' said Stephen W. Kahane, president and chief executive officer of International Coatings in Cerritos.

Kahane said he's considering moving the firm to Georgia.