Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
How do you know they won't pay that? This is HQ. CA salaries on average are less the 20% higher than they are in Texas. Administrators will probably make $15-$20/hr. But the sales guys, managers, engineers, and executives will make much more than $100K.
Why would Toyota drive people out of the company? Turnover is costly. And I bet Toyota will make it attractive as they can to get people to move from CA to TX.
I said the "buzz" not the gospel. Everyone at the VA was talking about it. Even on the bus people were talking about it.
Oddly, the facility is styled as Toyota Motor Engineering & Manufacturing.
Mircea
That is the title. There is TEMA and TMS. TEMA is manufacturing and engineering, TMS is Toyota motor sales.
I get my "buzz" from the admins at the Mississippi plant, not the guy on the bus or the vets in the waiting room at the VA.
I don't like incentives like this - but it is an unfortunate part of states competing for companies.
But just a few numbers to ponder:
4,000 employees
Assume $100K per year per employee
Annual payroll = $400,000,000
If they spend half of that money annually - that will generate $32M in combined sales taxes (state and local). If half of the employees buy homes at $200K each, that will mean $12M in property taxes (local to where they live). Toyota will spend money on the state of course. I have no idea how much that will be.
Toyota has been in Torrance since 1957. It is a big deal to move HQ to Texas.
$100k? Seriously? A 10 year specialist at Toyota might make $60k. Also when you transfer to a new plant, you are basically hired by the new plant, that means your pay is renegotiated. Depending on COL that CA employee may be making a lower salary than they did in CA. I know this because we moved to MS from KY on a Toyota transfer.
I don't like incentives like this - but it is an unfortunate part of states competing for companies.
But just a few numbers to ponder:
4,000 employees
Assume $100K per year per employee
Annual payroll = $400,000,000
If they spend half of that money annually - that will generate $32M in combined sales taxes (state and local). If half of the employees buy homes at $200K each, that will mean $12M in property taxes (local to where they live). Toyota will spend money on the state of course. I have no idea how much that will be.
Toyota has been in Torrance since 1957. It is a big deal to move HQ to Texas.
The $40 Million dollars comes from the Texas Enterprise Fund - I think that Texas pioneered this type of business model and it's now copied by many other States. The Texas Enterprise Fund was created by Legislation in 2003 (at Governor Perry's request) and initially funded with $295 Million dollars. The "return on investment" has been great - great for Texas and great for the business that move to Texas. Wendy Davis has attempted Legislation in the past to defund the TEF. Greg Abbot has not really been clear about what he would do about the TEF. Texas Democrats believe the Texas Enterprise Money would be better spent on Texas Welfare - hand outs instead of hand ups. This is part of the reason that Dems have a harder time getting elected in Texas - they are a one trick pony of their idea of "fair" and socialism.
A spread sheet on the TEF with jobs created and exactly who got the money. The fund is set up so that if a company gets money and does not produce the promised jobs - the State claws back the money. It's a great program. These jobs have a 'multiply' effect - Texas will gain 3,000 direct employees/job from the Toyota move to Texas, but the 'multiply effect' will include building new housing, the construction of the new Toyota campus, all the smaller companies that will follow Toyota to Texas as their supply chain and business links.
As for salaries in Plano - their average household income is already above $100,000 in Plano. Toyota knew exactly what they were doing when they chose North Texas as their new home.
The $40 Million dollars comes from the Texas Enterprise Fund - I think that Texas pioneered this type of business model and it's now copied by many other States. The Texas Enterprise Fund was created by Legislation in 2003 (at Governor Perry's request) and initially funded with $295 Million dollars. The "return on investment" has been great - great for Texas and great for the business that move to Texas. Wendy Davis has attempted Legislation in the past to defund the TEF. Greg Abbot has not really been clear about what he would do about the TEF. Texas Democrats believe the Texas Enterprise Money would be better spent on Texas Welfare - hand outs instead of hand ups. This is part of the reason that Dems have a harder time getting elected in Texas - they are a one trick pony of their idea of "fair" and socialism.
A spread sheet on the TEF with jobs created and exactly who got the money. The fund is set up so that if a company gets money and does not produce the promised jobs - the State claws back the money. It's a great program. These jobs have a 'multiply' effect - Texas will gain 3,000 direct employees/job from the Toyota move to Texas, but the 'multiply effect' will include building new housing, the construction of the new Toyota campus, all the smaller companies that will follow Toyota to Texas as their supply chain and business links.
As for salaries in Plano - their average household income is already above $100,000 in Plano. Toyota knew exactly what they were doing when they chose North Texas as their new home.
There is another name for this business model - and it's called poaching jobs. Maybe Texas has a gain but the country doesn't gain from it as a whole because net jobs aren't created.
It's sad that corporations will play off states and municipalities for sweeteners, often at the expense of other public programs and works. The most extreme example was Alabama putting up a ton of money for Daimler Benz, to the extent that the state had a budget gap because of it and had to cut education funding.
Today Toyota doesn't employ 4000 in Texas. In 2-3 years they will employ 4000. No matter how you look it is is +4000 jobs.
You need to read more carefully. The comment was net zero for the US, not Texas. Texas paid 40 million dollars toToyota to kick 4000 hard working people in California out of their jobs, pull them away from their kids schools, their aging parents, their friends and their families. It's business, I know. So it is alright.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
