The Sacramento Bee’s Dan Walters opined on Monday that there is no evidence of job-migration out of California and generally that any concern over our business climate is unfounded.  He focused on the following two points:

1. A 2008 PPIC report that found limited amount of job migration out of California. 
2. The notion that California’s business climate is unchanged from many years ago when the state experienced an economic boom.  I assume he meant the 90’s.

At this blog, we focus on the massive opportunities that come from high paying manufacturing jobs for workers, the economy and the state budget — and how manufacturing employers can succeed in California.  It should always be noted that a manufacturing wage pays approximately $20,000 more than a service job and provides the needed tax base for bold state government programs.  Here are three facts that should be considered in response to Walters’ piece:

I recently watched an employer focus group unfold.  An executive was asked, "Is there anything positive about conducting business in California?"  The employer replied, "Yeah, investment barriers to new competitors in California."  Another respondent replied without hesitating, "There is no way we would invest anything more in California."

These realities play out in so many ways — notwithstanding California’s tremendous quality of life advantages — while so many unfounded and rushed policy directions tip economy-altering board room decisions against our working families.

Read this Las Vegas Sun article on why a California-based company, Ausra, is changing its core mission to manufacturing solar supplies (as opposed to building solar generation facilities) and producing those supplies in a neighboring state.

Here’s the abbreviated version:
1.    Ausra abandoning most of its large solar facility projects in the west and now manufacturing solar equipment in existing Las Vegas facility to supply medium sized operations in California and the region.
2.    Company will supply limited new renewable supply for utilities struggling to meet California’s 20-soon-to-be-33-percent renewable standard
3.    Company’s only viable option is manufacturing in a cost competitive state and supplying into California’s smaller energy markets

Yesterday, a coalition of employers from a wide spectrum of industries — including the manufacturers — deeply concerned about California’s economy delivered to legislators and the governor their recommendations for policies to support job growth and improve state finances.  

California is dependent on income, sales, corporate and property tax for its general fund dollars.  More than 50 percent of the general fund is dependant on income tax alone.  Our government programs survive on profitable businesses employing a high-wage workforce.  With the country’s third worst unemployment rate (8.4 percent), and few growing sectors outside government services, the state will not get out of the current crisis without improving the business climate.

Freshmen: Welcome to the hub of policy for the 7th largest country in the world. We don’t envy your position, given the mess that has been left to you by so many previous classes, but you have an opportunity to make economic growth a catalyst of your tenure in the State Capitol. Specifically, your determination can make California a beacon for the high wage and middle class jobs that produce goods in today’s exceedingly competitive marketplace. As you proceed in your new endeavor, think of long term empowerment for California so this state will never again have to consider the deep cuts and other revenue enhancements that, undoubtedly, you’ll be forced to ponder for short term fixes.