New Sherwood

California continues its assault on business

Why do businesses leave California?

“Attendees heard from more than a dozen businesspeople who complained of high workman’s compensation insurance, ‘predatory’ regulators, an unfriendly business climate, a ‘never ending paper trail of business forms,’ exorbitant utility expenses, fees, taxes, quality of life and overpriced overhead.

Randy York said he moved his polyurethane manufacturing business from Huntington Beach to Reno, Nev. in 1987 because he was tired of being ‘hammered’ with regulatory fees from the fire department, the health department, the state Environmental Protection Agency, the California Division of Occupational Safety and Health and the South Coast Air Quality Management District.

He said it got to the point where he was paying $2,000 or $3,000 a quarter on fees – for company of 20 employees.

‘They were killing us with fees,’ he said. ‘Fees, fees, fees.’

Alan Jurkonis, president of a company that makes fire hydrant and gate values, described the ‘death by thousand cuts’ that led his business to leave Fresno for Minden, Nev. in 2007. Shipping to Southern California was cheaper from Nevada than Fresno, land was cheaper too. There wasn’t a reason to stay, he said.

Steven Patmont, president of the company that manufactures ‘California Go-Ped’ motorized scooters, said his company left California for Nevada because California doesn’t appreciate business. He described how California regulators hit him with hundreds of thousands of dollars of small fines even though his company has a stellar safety record.”

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May 21, 2009 - Posted by | Uncategorized

5 Comments »

  1. But will anyone listen?

    Like

    Comment by Lydia | May 21, 2009 | Reply

  2. Given that CA’s sales tax receipts are off by 40% from last year, and the proposed tax increase is going to go down in flames, what do you want to bet that this sort of self-destructive over regulation only gets worse?

    Like

    Comment by Danby | May 22, 2009 | Reply

  3. Lydia, no one in Sacramento is listening apart from the conservative GOP minority that is constantly blamed for “gridlock”.

    Danby, you’re exactly right. The harassment is already intensifying.

    Like

    Comment by Blogmaster | May 23, 2009 | Reply

  4. I just love gridlock. I remember first hearing that word umpty years ago now on a news clip and thinking over and over again, “Why is this a bad thing?”

    Like

    Comment by Lydia | May 23, 2009 | Reply

  5. When I worked in the California Senate in the late 1990s, I remember sitting through a committee hearing during which businessman after businessman described the crushing weight of taxation and regulation, and how more taxes would either kill their businesses or force them to leave the state. For a fleeting moment you could see a glimmer or recognition on the face of the liberal legislators (the overwhelming majority, of course). They voted to raise the taxes anyway. It’s all they know.

    Like

    Comment by Eoin Suibhne | May 23, 2009 | Reply


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