Report: 40% of firms to move jobs from state

World Net Daily ^ | Posted: February 28, 2004 | © 2004 WorldNetDaily.com

[RaceBannon]

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-------------------------------------------------------------------------------- CALIFORNIA LEAVIN' Report: 40% of firms to move jobs from state Burdensome regulatory costs create bad climate for business

-------------------------------------------------------------------------------- Posted: February 28, 2004 1:00 a.m. Eastern

© 2004 WorldNetDaily.com

The business climate in California is so poor that 40 percent of the companies questioned in a report say they will move jobs out of state.

Half of the firms said they would not add jobs within California, according to the survey by the California Business Roundtable, the Sacramento Bee reported.

Mostly because of regulatory costs, doing business in the Golden State is 30 percent more expensive than in other Western states, said the report, which was based on interviews with executives at 50 California companies.

Regulatory costs in California are 106 percent higher than other states in the region.

"California is facing a critical downturn," said Jeff Melton, a partner in Bain & Co., a consulting firm that conducted the nine-month study, according to the Sacramento paper. "There are structural issues constraining the growth of the economy and a generation of wealth for its citizens."

Other business groups have issued similar warnings in an effort to lobby lawmakers, but the Roundtable contends its research was an unbiased effort to find out what is hindering growth in the state.

William Hauck, president of the Roundtable, said he would address the issues raised by the report with Gov. Arnold Schwarzenegger and legislators after the March 2 elections, the Bee reported.

The high cost of workers' compensation insurance and the approval process for building housing developments were among the biggest concerns brought up by the executives surveyed.

The study recommends overhauling workers' compensation and overtime laws, streamlining permitting processes and encouraging private investment in a new electricity infrastructure, the Sacramento daily said.

The paper said another study viewed California business in a more favorable light. An annual survey by the Milken Institute said California had seven cities in the top 20 places where the most jobs are created.

Stephen Levy, director at the Center for Continuing Study of the California Economy in Palo Alto, criticized the Roundtable report for ignoring other issues, such as the cuts in transportation funding and higher education, which he argues will make it harder for the state to compete.

[RaceBannon]

Anti-regulation callin!

[RaceBannon]

job loss thru regulation bump

[Ernest_at_the_Beach]

Thanks for the post!

[Ernest_at_the_Beach]

I am out of here for a while.

Got to get ready for a grandaughter leap year birthday party tomorrow!

[P.O.E.]

Judicial activism and unelected regulators ain't what the founding fathers had in mind for our government.

[martin_fierro]

	Silicon Valley
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Silicon Valley Slang

[07055]

I guess this is all Bush's fault, right?

[NonValueAdded]

The paper said another study viewed California business in a more favorable light. An annual survey by the Milken Institute said California had seven cities in the top 20 places where the most jobs are created.

Maybe because so many jobs left the state that there is the opportunity to backfill?

Hey, there is a big hole in the bottom of your bucket! Yeah, but that just lets me pour more water in the top!

[optik_b]

Sad to see the decline of such a great state. The liberals and selfish voters have conspired to create this situation.

[RaceBannon]

Well, Whoever ran California for the last Generation, I'd look at them, first, governors and congress together.

[adam_az]

"job loss thru regulation bump"

Hey, I have a good idea.

Why not punish companies who want to "Export" jobs from California to other states?

No? Don't think it will work?

So, what makes you think it will work on a Federal level?

[Revel]

"I guess this is all Bush's fault, right?"

I here that so much...I'll bite. In the sense of GW's stand on illegal immigration and foriegn workers he shares blame in this YES! Right along with Clinton who was the same way. The taxes in California will keep going up to pay for supporting those illegal aleins to live, and to cover the costs of the damage they do. 29% of the prison population in the country is illegal aleins. And that is not a ficticious number. It comes right from the federal bural of prisons. What do you think they cost our economy ? And what about taxes loss due to H1b, L1B, and out sourcing. All this globalist crap is destroying our country. And it is not American capitalism at work. It is global capitalism. Big difference.

[Ham Hock]

This looks like "Atlas Shrugged" in action.

[Kuksool]

Wait, the liberals have been chanting the mantra that pandering to gay activists improves the economy.

[Dat]

Time to put tarriffs on imports into California, that will solve all their problems!

[ExSoldier]

Happy Birthday to the grandaughter. Tomorrow I celebrate the 20th anniversary of my separation from active duty as an army captain. All of my buddies who stayed on active duty are now either retired or dead. ~sigh~

[Myrddin]

This looks like "Atlas Shrugged" in action.

It is. The parking lots at my company location in San Diego were overflowing in 1998. Extra buildings and parking lots were purchased. The drastic rise in electric rates changed that in 2000. The additional costs attributable to utilities and CA government mandates made hourly rates non-competitive. People were layed off or moved to company locations in other states with lower overhead costs.

The San Diego location had over 4,500 employees in 1998. Ditto for the Mclean, VA location. A check today (2-28-2004) shows 192 job openings in San Diego (313 statewide). The Mclean, VA location has opened offices all over the surrounding area. They show 1413 openings. The company was founded and is headquatered in San Diego. They just can't compete there anymore.

I relocated to Idaho. My company has no rents, utilities or state mandated costs related to my new location. I can bid my time at lower rates...more competitive rates...and still beat anyone in a Calfornia building.

At a personal level, the "Atlas Shrugged" approach for a "John Galt wannabe" takes more than a little literary license. I'm about 6 months from totally debt free. The ongoing financial obligations that can not be retired include property taxes and basic food/clothing/utilities.

[KevinDavis]

This is why Bush should win, if Kerry wins and the rats win control of Congress look out for more regulation. That is why I'm voting for Bush and the GOP in this election. I'm not going to waste my vote on the Constitution Party at all.

[Ernest_at_the_Beach]

Retired is the best !

Read your home page, great way to handle the battle for student minds!

I teach math a bit at a Community college so I have a tougher time getting the word out about the conservative way to see the world. Although I did expound at some length regarding our departed Governor, Gray Davis!