#328. Dreamin’ of Being Somewhere Else…

In the April 22, 2011, Wall Street Journal, John Fund wrote a column entitled “California Dreamin’ – of Jobs in Texas”. He talked about how government leaders in California traveled to Texas to hear from businesses that had left their state to set up shop in Texas.

Really?? They had to travel to Texas to figure out why?

According to California business relocation expert Joe Vranich, after hearing another business was leaving California for Texas, “It’s the 70^th business to leave this year. That’s an average of 4.7 per week, up from 3.9 a week last year.”

Mr. Fund cited a couple of specific examples of companies that have left the Golden State for the Lone Star state. One was Hardee’s Restaurant. According to Andy Puzder, CEO of the company, the “hostile regulatory environment” in California results in a six month to two year wait to secure a permit to build a new restaurant, versus six weeks in Texas. Hardee’s plans to build up to 300 new stores in Texas this year.

The latest edition of “Rich States, Poor States“, a study by the American Legislative Exchange Council, looks at the economic and tax situation for all 50 states, and explains why the economic crisis has been so rough on the states, what states should do to alleviate the fiscal pain, and what they should avoid.

Can our state governments take the necessary steps to keep the businesses they have? We will continue to keep a lookout on how these state leaders proceed.