States Recruit Worried Californians

[question everything]

FEBRUARY 13, 2009

States Recruit Worried Californians
By STEPHANIE SIMON
WSJ

Several Western states are launching aggressive efforts to poach jobs, talent and industry from California, sensing an opportunity to capitalize on the Golden State's current political and financial woes. Colorado is the first out of the box with a Valentine-themed banner that will trail behind an airplane circling rush-hour traffic in Los Angeles on Friday morning, urging Californians to give Colorado a try. Ads in newspapers from San Diego to San Jose will feature a Cupid in ski boots over a bold-faced tease: "California, can you feel Colorado's love?"

Hundreds of California CEOs will receive flowery Valentine's Day cards proclaiming, "Mile High State Seeks Sea-Level Executive." The campaign even includes a YouTube video of Tom Clark, executive vice president of the Metro Denver Economic Development Corp., kissing the envelopes before depositing them lovingly into a mailbox. Right behind Colorado are Arizona, Nevada, Oregon and Utah -- all planning to make similar runs at luring corporate executives, venture capitalists and manufacturers who might be fed up with California's political gridlock or anxious about potential tax hikes and deep cuts to schools, parks and other services.

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California's business boosters say they will be hard-pressed to respond. At the Los Angeles County Economic Development Corp., Jack Kyser is preparing to mail thousands of postcards to local business owners, offering the services of a "business ombudsman" to help them cut red tape or find trained workers. He has never taken such a step before, he said, adding that he hopes it will build loyalty to California. But he isn't betting on it. In this atmosphere of uncertainty, with the state facing a staggering $42 billion deficit, Mr. Kyser said he has little ammunition to beat back crossborder raiding parties. "We know they're out there," he said. "California offers rich pickings. It definitely is a concern."

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Over the years, many states have lured jobs and investment from California. But economist David Neumark has concluded that corporate moves accounted for only a fraction of the total jobs lost in California earlier this decade. Especially in this recession, with major corporations shedding jobs by the tens of thousands, poaching a company here or there won't show up as "anything but a drop in the bucket," said Mr. Neumark, a professor at University of California, Irvine. For all its difficulties, California retains some distinct advantages -- and not just the beaches. Zach Nelson, the CEO of software firm NetSuite Inc., recently opened a regional hub in Denver and says it has been great for his sales. But he wouldn't consider moving his headquarters out of San Mateo, Calif. "From a DNA standpoint, all people do in Silicon Valley all day long is think about starting a company," Mr. Nelson said. "They don't think about skiing."

http://online.wsj.com/article/SB123448309305579825.html (subscription)

Printed in The Wall Street Journal, page A3

[FieldsBlank]

1. CA gonna make it?

sure looks bad out there

[question everything]

2. People who live in California stick there in bad times

many of them are paid less than for similar jobs in other states because employers know they can get good workers for less pay.

People in California will never trade their beaches and warm weather for the heat and humidity of the South.

And.. in general you get a more nurturing environments for your ideas and suggestions than in.. the South.

But they need to trim down their bloated bureaucracy and need to reign on moms who want multiple kids and get the tax payers to support them.