Posted on 08/03/2004 7:49:31 PM PDT by NormsRevenge
LOS ANGELES (AP) - In the latest shot in an economic border war, Gov. Arnold Schwarzenegger heads to Nevada Wednesday to entice companies that fled California's high taxes, congested highways and hefty utility costs to come home.
The Republican governor has promised to travel the world to lure employers to California, and aides said his trip to the Las Vegas Strip was part of an ongoing push to market the state as an economic comeback story. He will publicize a recent budget agreement that held the line on taxes, as well as reforms that cut workers compensation costs for businesses, although not to the degree he predicted.
"We are going to highlight that California is open for business, and that those companies that left the state because of the unfriendly business climate - that's changed," the governor's spokeswoman, Margita Thompson, said Tuesday.
California's image took a beating in recent years, with the energy crisis and an unsteady economy contributing to the political turmoil of last year's recall election. States from Texas to Oregon made pitches to steal jobs from the state, with promises of lower taxes and a welcoming business climate.
In fiscal 2003 alone, two dozen California firms crossed the border to Nevada, records show. To attract businesses, state economic development officials have run ads mocking rival California's utility and insurance costs.
Schwarzenegger, facing continuing budget troubles, desperately needs those jobs back or others to replace them. In Las Vegas, he will unveil a billboard, featuring his likeness, and the slogan "California is Open for Business."
Nevada officials said they were unconcerned with Schwarzenegger's high-profile salesmanship.
"At the end of the day, businesses are going to remember why they moved to Nevada," said Greg Bortolin, a spokesman for Nevada Gov. Kenny Guinn. "As much as we like Gov. Schwarzenegger, Nevada is still a better place to do business."
Since his election in last year's recall campaign, Schwarzenegger's instantly recognizable image has gradually become the centerpiece of the state's efforts to market itself.
Earlier this year, Schwarzenegger contributed his star power to a $4 million television campaign urging consumers to purchase "California Grown" products. That followed a $1.2 million TV ad blitz sponsored by the state's travel and tourism commission in which the governor and his wife, Maria Shriver, joined other famous Californians beckoning visitors to the state.
With California strapped for cash, it will be a challenge for the state to match the kinds of tax breaks that might be available for companies elsewhere. A major insurer has projected that workers' compensation rates would drop by about 7 percent next year, far below initial projections of up to 30 percent.
And while Schwarzenegger crusades to make California more business friendly, Democratic lawmakers have sought passage of an array of bills that would impose fees and higher costs on businesses, including raising the minimum wage to one of the nation's highest levels.
Aki Korhonen, who moved his software company PC-Doctor Inc., from the San Francisco Bay area to Reno, laughed when asked if he would consider returning to California. He said he relocated for a host of reasons, from lower taxes to an improved quality of living.
"It takes me five minutes to get to work. I live in a beautiful place with a great view and it was cheaper than what was available in California," he said. "Essentially, everything is cheaper."
I object to it because of the people on fixed incomes. Lot's of our seniors have paid in most of their lives. It's bad enough their benefits got taxed under Clinton, but now everything they purchase or need will cost much more.
At 20 to a house, not many. Here in Nevada, they shop in the fleamarket in the North of town. The food comes in from Mexico, the clothing comes in from Mexico..no doubt in someone's truck. They aren't spending alot in the surrounding neighborhood. They cost us plenty tho.
Those are amazing figures.
I suspect ole Ahnold wanted a taxpayer jaunt to Vegas. Perhaps he's getting in early appearances for his Presidential run in '08. It's a looney idea and of all the things I think of the Rino, looney isn't one of them.
Arnie its about time to make some big program cuts.
Same goes for illegal aliens if they work under the table?
Not being picky, but your idea is a good one, I don't see how it would work
Since illegals and drug dealers get paid under the table, they don’t pay income tax, but they do pay consumer taxes. Now, if they were to steal the things they consume…
So are regulations like this one: Truckers fume over diesel-idle restriction
Very true, but in this case, the regulation was put in place by the un-elected Air Resources Board.
But all those "environmental" regulations make Californians feel good about themselves because "they care".
On another note, have you done any "Movie Time" threads recently?
Arnold is making major adjustments to the corrupt system that's entrenched in his state. Expect deep howls of protest before he's finished.
Their caring is driving business out of the state, and raising their cost of living. That they are too stupid to realize this amazes me.
LOL. Sorry, but I see no changes major enough to entice anyone back to California. In fact, if I were businesses and I saw his meager disability fix, I'd be packing my bags.
I'm willing to give Arnold some time, but the clock is ticking. And him trying to convey a falsehood on corrections doesn't sit well.
He needs to get out his pen and put some x's through some programs. NOW!
Real estate is just too expensive for it to make economic sense to move to California. Too bad...I miss it.
What San Diego restaurant are you referring to?
Callahan's Pub in Mira Mesa
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