Courting California: UT & VA Governors Want to Win Jobs from Golden State

By: Richard S. Davis
12:00 am
April 10, 2013

California’s troubled business climate has become a punchline. Earlier this year, Texas Gov. Rick Perry ran radio ads in California urging businesses to check out Texas. Chief Executive magazine ranks California the worst state for business. The California Business Roundtable finds a majority of business leaders think it’s harder to do business in California than in other states.

So this must be a good time for out-of-state governor to go courting. The only surprising thing about the news that Virginia Gov. Bob McDonnell and Utah Gov. Gary Herbert will attempt to lure business from California is that they’re coordinating their pitches.

The visiting governors say [California Gov. Jerry] Brown shouldn’t be surprised or offended by their trip because competition among states for jobs is so fierce.

“There are people coming to Virginia all the time looking for jobs, too,” McDonnell said in an interview. “States competing with each other is a healthy thing.”

As the story in the Seattle Times points out, Virginia and Utah have strong reasons to favor competition.

But it’s unusual for governors from states with different economic profiles and statehouses 2,100 miles apart to tag-team another state. Not coincidentally, the visits come a few months after Utah and Virginia were ranked No. 1 and No. 2, respectively, in Forbes magazine’s annual list of the best states for conducting business.

It also follows a period in which California — by itself the world’s ninth largest economy — lost luster. The 9.6 percent unemployment rate remains among the nation’s worst, vestiges of the housing crash linger, and its credit rating is one of the shakiest among states.

As we pointed out yesterday, Washington should also take steps to maintain and enhance our competitive position.

Categories: Categories , Current Affairs , Economy , Tax Policy.