California named worst state for business in magazine survey (movies, college)

[user_id]

Originally Posted by EclecticEars

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Combine all that with low alumni giving rates compared to the state's most prestigious private schools (CalTech, USC, Stanford) and what do you get? Sharply increasing tuition at UC and CSU schools that are cutting programs. Sure, UCs are building new buildings, but these are projects that were approved and, in some cases, have even had bond, grant, or university general budget money secured for them for years.

Though the recent tuition hikes are unfortunate, they started from a much lower baseline than most other states. The tuitions in the UC and Cal state systems are still cheaper than most other states.

California has had a bad habit of not slowly increasing tuition costs, they keep them relatively stagnant for years and then they spike, then stagnant, etc.

I'm not sure what you're trying to say about Prop 13. I don't support Prop 13, but because the taxes are far too low. I'd prefer a more Texas like tax system, that is high property taxes and low productivity taxes with extra revenue (vs Texas) coming from income taxes on wealthier households.

[NewToCA]

Originally Posted by user_id

If it wasn't for the infusion of federal tax dollars into Huntsville it would just be another podunk town in the South. The engineers in Huntsville are being attracted by the federal spending and they are not, in most cases, home grown. This is a great example of how states like California provide welfare to low-tax states via federal spending.

I don't know an example of a state with high taxes that also doesn't provide more services/infrastructure than lower tax states.

How about Vermont and New Jersey?

[nullgeo]

Originally Posted by NewToCA

I think you kind of missed the point here. The question would really be will Facebook have future expansion in California, or will it open up facilities/add staffing in other locations?

One has to do with existing businesses, the other has to do with new enterprises.

No, I didn't miss the point. Yes, I understand what you are pointing out -- which is true in itself, as well. What I was pointing out is that, while companies buy other company operations and then close them down constantly as part of the contemporary model of leveraging business for profit through creating business market value rather than through creating and marketing products -- the most briliiant and phenomenal examples of lucrative start ups happen where these days? Right: California. This Facebook and similar kinds of businesses, however vaporous and silly to me, is resulting in tremendous revenue for California through the taxation due from the offering ... far more than that Capitol One office paid over many years. It is a shame that 800 workers are losing their jobs. But at the same time, where there is one loss, there is another gain. That's the reality of life in the universe. Change happens. Nothing new here. One disaster -- another gain.

[nullgeo]

Originally Posted by EclecticEars

But let's say (okay, even presumably) that they consolidate those jobs into the facility in South Dakota. South Dakota has no personal and corporate income taxes, dirt cheap property taxes, and a 4% state sales tax. A seemingly palatial 1-2 BR studio (no oxymoron) in downtown Sioux Falls can be had for under $800 (I know, I thought I was going to move there a few years ago). While Salinas has no traffic congestion to speak of, it does have crime problems; Minnehaha County, SD, where Sioux Falls is located, has an almost Canadian-level crime rate and some great public schools. It also doesn't hurt that it practically borders Iowa and Minnesota if one isn't satisfied w/ the quality of South Dakota schools. Sioux Falls is also close to the state's two flagship public universities.

I like California, but if I were part of the acquisition team I'd also be vouching for a move to a more business-friendly climate. South Dakota is a no-brainer.

Okay, let's say they DO incorporate those jobs in Souix Falls S.D., which they probably won't because the reason they closed shop in California wasn't to move jobs it was to change the operations model ... but whatever. Souix Falls sucks, to put it bluntly. My wife was teaching there for six years when I met her. I have spent time there. There are reasons why life is cheaper there. I would eat grubs and roots in California before I would live in Souix Falls S.D. Everything about the place repels me.

[BayAreaHillbilly]

Originally Posted by Fontucky

They said the same thing about Google.

Google may not survive the mobile revolution / "Dot Bomb 2.0."

Or it may emerge a shell of its former self, ala Myspace.

[BayAreaHillbilly]

Originally Posted by EclecticEars

Yeah, Huntsville's a very excellent example. Louisville, KY just also secured CafePress.com from San Mateo; 600 jobs will be added in Jefferson County, and I grew up very near there. Don't forget about Austin and Houston (yes, Houston has the massive Texas Medical Center), although they have high property taxes.

Last but not least, RTP in North Carolina. It may not be a Silicon Valley of the East in terms of the innovative prowess, but it kind of is just in the concentration of tech companies represented, its startup climate and the presence of Duke, UNC, NCSU, and nearby Wake Forest (like Stanford, Santa Clara, SJSU, UCSF and Cal in/near SV).

One thing many of the hubris infected fail to realize is the fact that higher overall population and development density in the East make it less of a requirement to have specific hubs ala Silicon Valley. I've done lots of business in the East. In one day I had activities in DC, Baltimore, SE PA, Central PA. There is a good amount of critical mass over the broad span of the East. Even the Mid West has more of this, relative to our intensely urbanized mega cities separated by vast stretches of lots of nothing.

[Mathguy]

I'd also comment that a number of wealthy individuals have changed residency to states like FL to reduce their tax burden. (ie. Tiger Woods)

[blauskies]

Originally Posted by BayAreaHillbilly

One thing many of the hubris infected fail to realize is the fact that higher overall population and development density in the East make it less of a requirement to have specific hubs ala Silicon Valley. I've done lots of business in the East. In one day I had activities in DC, Baltimore, SE PA, Central PA. There is a good amount of critical mass over the broad span of the East. Even the Mid West has more of this, relative to our intensely urbanized mega cities separated by vast stretches of lots of nothing.

I'm from Central PA originally, I have not seen much growth there over the years, some places have not changed much in 50 years in some parts and the only booming industry is Shale Gas and that's about it. Mainly that entire part of the state is filled with a lot of shuttered factories and not much in jobs but a lot of agriculture still remains. PA in general lost out on a lot of jobs that went to more business friendly places in the South.

Not sure what company you had dealings with in Central PA, the only one that comes to mind for high tech component sourcing is the former AMP, then Tyco now TE/Connectivity or Stewart Connector. AMP at one time was the 2nd largest employer in the state behind PA Government had their HQ in Harrisburg, after the Tyco buyout they closed down a bunch of facilities and pretty much wiped out thousands of jobs. Most of the work that is still there is around Harrisburg into South Central PA.

[mysticaltyger]

Originally Posted by Gentoo

Yes they're mostly big box stores. However, they did not start out like that. They got to the point where they are due to taking advantage of what's out there rather than shying away from it.

Yeah, and as you said yourself, they are headquartered somewhere else. That's telling.

[nullgeo]

Originally Posted by blauskies

I'm from Central PA originally, I have not seen much growth there over the years, some places have not changed much in 50 years in some parts and the only booming industry is Shale Gas and that's about it. Mainly that entire part of the state is filled with a lot of shuttered factories and not much in jobs but a lot of agriculture still remains. PA in general lost out on a lot of jobs that went to more business friendly places in the South.

Not sure what company you had dealings with in Central PA, the only one that comes to mind for high tech component sourcing is the former AMP, then Tyco now TE/Connectivity or Stewart Connector. AMP at one time was the 2nd largest employer in the state behind PA Government had their HQ in Harrisburg, after the Tyco buyout they closed down a bunch of facilities and pretty much wiped out thousands of jobs. Most of the work that is still there is around Harrisburg into South Central PA.

Altoona?