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share save 120 16 Shocker: California Businesses Voting With their Feet and Leaving the State
The $5 Million a Year San Francisco Tax Break

Twitter notwithstanding, California for many years has not been business friendly and now the businesses are giving up and simply either leaving or expanding in other states.

Buffeted by high taxes, strict regulations and uncertain state budgets, a growing number of California companies are seeking friendlier business environments outside of the Golden State.

And governors around the country, smelling blood in the water, have stepped up their courtship of California companies. Officials in states like Florida, Texas, Arizona and Utah are telling California firms how business-friendly they are in comparison.

Companies are “disinvesting” in California at a rate five times greater than just two years ago, said Joseph Vranich, a business relocation expert based in Irvine. This includes leaving altogether, establishing divisions elsewhere or opting not to set up shop in California.

“There is a feeling that the state is not stable,” Vranich said. “Sacramento can’t get its act together…and that includes the governor, legislators and regulatory agencies that are running wild.”

The state has been ranked by Chief Executive magazine as the worst place to do business for seven years.

“California, once a business friendly state, continues to conduct a war on its own economy,” the magazine wrote.

That is about to change, at least if Lieutenant Governor Gavin Newsom has anything to say about it. Newsom is developing a plan to address the state’s economic Achilles heels, and build on its strengths. It will be unveiled at the end of July.

“California has got to get its act together when it comes to economic development and job creation,” he said.

While not all companies investing elsewhere are doing so for economic reasons, some are shopping around for lower costs, lighter regulations, stable leadership and government assistance and incentives.

The most popular places to go? Texas, Arizona, Colorado, Nevada, Utah, Virginia and North Carolina, said Vranich. All rank in the Top 13 places to do business, according to Chief Executive.

California has great weather and ample natural resources, but the far left Democratic nature of its politics is stifling to business.Unemployment is high and entitlement costs associated with this and rampant illegal immigration are a definite drag to business development.

I do not foresee the California business climate improving anytime soon. No matter what former Democratic Mayor of San Francisco Gavin Newsom says or creates with Nanny State commissions, businesses are voting wit their feet and leaving.

California’s economy will stagnate much like Michigan’s with little or no growth and for the forseeable future.

share save 120 16 Shocker: California Businesses Voting With their Feet and Leaving the State

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share save 120 16 Flaps California Morning Collection: June 21, 2011
Kernville Flaps California Morning Collection: June 21, 2011

A morning collection of links and comments about my home, California.

The buzz in the Capitol today is that long time Democratic Senator Dianne Feinstein is not polling well in the latest California Field Poll. In fact, her numbers are the lowest for her since 1992. If any pundit really thinks DiFi is vulnerable, I will refer them to Carly Fiorina who was the last Republican challenger to a California Democratic U.S. Senator who was deemed vulnerable = recently re-elected Barbara Boxer.

DiFi is not going anywhere except back to the Senate, barring any health problems. But, I wonder who the GOP will run in 2012 as the sacrificial lamb?

The poll graphic:

x5rjsxl4 Flaps California Morning Collection: June 21, 2011

In Los Angeles, everyone is talking about the L.A. Dodgers and the owner Frank McCourt. The Commissioner of Major League Baseball who took over control of the team some time ago from McCourt disapproved a new Fox Sports television contract which may precipitate a sale of the team, lawsuits, and/or a bankruptcy filing. Likely, there will be all of the above, but most folks in L.A. want McCourt and his wife to be gone and the Dodgers to concentrate on baseball.

Oh yeah and McCourt owns the Los Angeles Marathon too. I might just have to run in Pasadena next Spring.

OK – on to the links:

Steinberg raises legal questions over pay issue

Senate Leader Darrell Steinberg, D-Sacramento, made it clear that there are legal implications — lawsuit, anyone? — with the decision on legislative pay that state Controller John Chiang is expected to make Tuesday.

Steinberg suggested that any decision by the Controller would be legally questionable.

The question that got Steinberg reverting back to the lawyer that he is: Will you be able to hold out and negotiate all summer if your members are not being paid.

The unspoken suggestion: that legislators would cave on demands of $2 billion to $6 billion more in cuts to schools, universities and public safety to ensure they get their salary and daily expenses.

“It is a bad precedent for anybody in the executive branch to question the quality of a budget passed by the Legislature,” he told reporters after a quick Senate session Monday. “Because to do so is to shift the balance of power … in a way that is dangerous.

“Think about if there was a governor, a treasurer or controller from the other party and they were unhappy with the quality of the budget the Legislature passed, they would have the ability — if Proposition 25 is interpreted in a way some suggest — to say it’s not good enough, we withhold your pay until you make all of the decisions and and all of the cuts that we believe are appropriate.”

The follow-up question: Could withholding legislators’ pay “tip the balance” to legislators accepting the governor’s cuts?

“If it is an attempt to tip the balance, then it is a conflict of interest like California has never seen,” Steinberg said.

Salary matters are best decided by the Citizens Compensation Commission, Steinberg said, and legislators should not be forced to determine their vote based on whether or not they would be paid.

Why McCourt must go, from one baseball blogger

Many kudos on baseball websites today for blogger Larry Behrendt’s detailing of the case against Dodgers owner Frank McCourt, from the interlocking companies that mean the Dodgers now pay rent for their own stadium and parking lots, to the ticket revenue that gets drained elsewhere, to the huge debt and lavish personal spending. Behrendt posted before commissioner Bud Selig stepped in today to nix the deal with Fox. But that’s exactly what Behrendt felt Selig must do…..

Over the next two weeks, Bud Selig will face the defining moment of his career as Commissioner of Major League Baseball….

There is no doubt: Commissioner Selig should reject the Dodgers-Fox contract, seize control of the Dodgers, and sell the team to a responsible owner who will (with the grateful help of millions of my fellow left coasters) restore the team to its former greatness. Selig must act to prevent Frank McCourt from continuing to plunder the team. Selig must act before the team is saddled with even greater debt, while the team’s reputation can still be salvaged and the team is still marketable to a worthy owner….

How much have the McCourts managed to extract from the Dodgers? Well, if we ignore the debt the Dodgers took on so that the McCourts could buy the Dodgers but include the McCourt salaries, the McCourts have withdrawn from the Dodgers anywhere from $109 million (Frank McCourt’s estimate) to $141 million (Jamie McCourt’s estimate). The truth is, the real amount the McCourts plundered from the Dodgers may be more than $141 million – at the moment, all we have to go on is what each McCourt has been willing to admit to.
I(In case you were wondering, during their ownership of the Dodgers the McCourts have paid not one penny in income tax.)

Is Lynn Woolsey retiring? Is Gavin Newsom interested in that seat?

We’re getting the distinct feeling that something is up. Just got an “advisory” that Rep. Lynn Woolsey will hold a press conference at her home Monday in Petaluma “joined by Rep. Barbara Lee and friends and family.”

Hmmm. Remember, back in December Woolsey’s peeps told us she was “thinking of” retiring and they’d let us know by June. Tick…tock…tick…

All that Woolsey spokesperson Bart Acocella will say is: “I can tell you that she will make an announcement on the 27th about her future plans.”

Even with the state’s new redistricting plan likely to create a very-different looking 6th District, there’s already a line forming to snag the super-safe Democratic seat-for-life, starting with termed out Assemblyman Jared Huffman and activist and author Norman Solomon, Marin County Supervisor Susan Adams, state Sen. Noreen Evans, D-Santa Rosa, and Sonoma County Supervisor Shirlee Zane.

Here’s another name to toss in the mix: What about Lt. Gov. Gavin Newsom?

Yes, we know the duties of Lt. Gov. are…uh…pressing. Especially when he has to walk the Governor’s dog. But eyebrows raised when Newsom just moved to…wait for it…Marin County to live with his in-laws after they had their second child.

Enjoy your morning!

share save 120 16 Flaps California Morning Collection: June 21, 2011

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share save 120 16 Lt. Governor Gavin Newsom Prepping to Run for California Governor?
capt671901c063654df8b05 Lt. Governor Gavin Newsom Prepping to Run for California Governor?

In this Jan. 11, 2011 photo, Edwin Lee, right, shake hands with Gavin Newsom, left, as Lee was named as San Francisco mayor at San Francisco City Hall in San Francisco, Tuesday, Jan. 11, 2011. The San Francisco Board of Supervisors voted for Lee as mayor to replace Newsom, who became Calif. Lieutenant Governor

Apparently so.
Less than three months on the job, and already Gavin Newsom is prepping to run for governor again.

A city insider who asked not to be named tells us the new lieutenant governor approached him at a charity fundraiser the other day with a request for help to start raising money for a renewed gubernatorial bid.

Newsom’s inability to compete with the much-better-financed Jerry Brown was one of the reasons he withdrew from last year’s Democratic race and ran instead for lieutenant governor.

Newsom has opened a re-election campaign committee for 2014 – but there’s nothing to stop him from transferring any money he might raise to an exploratory gubernatorial run.

No one from Camp Newsom wanted to comment for the record, but we’re told the lieutenant governor will support Brown for as long as he intends to be governor.

No shocker here.

I mean, California Governor Jerry Brown is OLD and on overage time, so to speak, and a POL has to be ready – and ready quick. You never know when a special election will pop up and Jerry Brown will be one term anyway.

share save 120 16 Lt. Governor Gavin Newsom Prepping to Run for California Governor?

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share save 120 16 Poll Watch: California Governor 2010   Rough Year for the GOP?

Looks like a rough year for the California Republican Party to hold the Governorship now held by Republican Arnold Schwarzenegger – no matter who wins the GOP nomination next June.

All Registered Voters:

2010 Governor: General Election (all match-ups)

  • Brown 50%, Whitman 29%
  • Brown 48%, Campbell 27%
  • Brown 50%, Poizner 25%
  • Whitman 31%, Newsom 40%
  • Newsom 38%, Campbell 33%
  • Newsom 39%, Poizner 30%

Meg Whitman looked at one time as a very viable candidate but her lack of candor about her voting record has damaged her credibility. It will be difficult for her to crawl back into the race.

California Insurance Commissioner Steve Poizner has the ability to self-fund a big media campaign but has failed to catch-on voterwise. He may be the front-runner at the present time – despite the current polling because of his potential.

Former Congressman Tom Campbell is a moderte Republican but charismatically he is no Pete Wilson and will not motivate the GOP base of donors.

The REAL race may be between “Any Two-some” Newsom and Jerry “Moonbeam” Brown.


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share save 120 16 Poll Watch: California Governor 2010   Rough Year for the GOP?

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share save 120 16 Bill Clinton to Endorse San Francisco Mayor Gavin Newsom for California Governor   Republicans Cheer
gavinnewsom Bill Clinton to Endorse San Francisco Mayor Gavin Newsom for California Governor   Republicans Cheer

San Francisco Mayor Gavin “Whether You Like it or Not” Newsom

Meg Whitman and Steve Poizner must be dancing this morning.
Former President Bill Clinton is backing San Francisco Mayor Gavin Newsom for California governor over state Attorney Gen. Jerry Brown, potentially upending next year’s Democratic race to succeed Republican Arnold Schwarzenegger.

Clinton’s decision to appear on Oct. 5 alongside one of his wife’s top backers in her campaign for the Democratic presidential nomination comes at a critical time for the San Franciso mayor: Although Newsom has built a substantial Facebook and Twitter following among younger voters, Brown, a former two-term governor, has raised more than twice as much money as he has.

Clinton’s trip to California next month is expected to include an event in predominantly Latino East Los Angeles as well as a high-dollar fundraiser.

While the endorsement of a former president is big news in any state, the former chairman of the California Democratic Party thinks it could be especially significant in California, a state where Clinton has had a strong following ever since he beat Brown in the state’s 1992 presidential primary.

These are delusions of grandeur on the part of Newsom and the California Far Left. Jerry Brown has the support of mainstream labor and will pillage Newsom with television ads next Spring before the June 2010 Democrat Primary election.

California voters are disgruntled in any event(tired of decades of Democrat control of the Legislature) and the REAL race for California Governor is between the two Republicans, Meg Whitman and Steve Poizner. Californians will not vote for an old man retread pol or a young morally challenged San Francisco Mayor.

Flap looks forward to the divisive Democrat primary though.


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share save 120 16 Bill Clinton to Endorse San Francisco Mayor Gavin Newsom for California Governor   Republicans Cheer

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