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California Businesses Fleeing the State

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California Businesses Fleeing the State

 California Businesses Moving for Cost Savings Less Regulation

California’s Tax Base moving from the Golden State to the Lone Star State?

 

This Graph shows the increase in California Spending per non-government employee. The space between the graphs shows the deficit -- Not including unfunded Liabilities. Note the increase! The tax burden on every working Californian is increasing now and into the future.

Click on the graphic  This Graph shows the increase in California Spending per non-government employee. The space between the graphs shows the deficit — Not including unfunded Liabilities. Note the increase! The tax burden on every working Californian is increasing now and into the future.

It’s hard to argue that California is a bad place for business. After all we have Hollywood, Silicon Valley, and a booming Real Estate Market–at least along the coast and in the bay area.  But does that tell the entire story?  What about all the not-so glamourous middle income jobs?  Well it’s hard to get a complete picture of what’s going on because in the last couple of decades Silicon Valley has been happening in Silicon Valley.  But most of us will never work in the Valley or Hollywood.

We decided to look at companies that provide a lot of well paying jobs that have moved away from California.  And for each job they move out of state, there are lot more associated and support jobs that go along with them.  I was struck by a comment a grandmother made.  She said that I was all wrong.  Young Californians are doing great–starting businesses and working for high tech companies–if you want to meet them go to Austin.

It’s really hard to see what’s going on because most companies don’t want to publicly bash California.  It’s a huge market and you don’t want to get on the state government’s s***list Also, they will often expand in other states rather than California.  They use public relation talk saying that they are committed to California but “they are expanding out-of-state, consolidating jobs to another state, or just downsizing here and expanding there.’

Is California’s tax burden driving employers out of the state?  Well that’s a tough question to answer because it’s really hard to observe the tax burden paid by each business.  There are direct taxes like income and car registration taxes, but what about the taxes you don’t realize you are paying.  For instance sales taxes, excise taxes, and the costs of everyday goods and services that have been driven up because business owners must pay taxes.  Also, how do you count businesses.  Some are huge corporations and others are one man shops.  We can never figure that out.

So we looked at it from the standpoint of a typical non-government employee.  The graph above shows how the amount of spending done by the state and local governments per working person has increased and the amount of ‘revenue’ by the state and local governments has increased since 1990.  Wow that’s a huge increase.  For those remaining in California, the most relevant figure is the amount of spending as it will have to be paid back with taxes at some point.

And it does not include factors like California’s highest workers comp rates in the state, California’s high insurance rates.  Both of these are driven by high liability costs which are like a tax because the government makes you pay them.  Also it does not include unfunded costs.  When a state or local government compensates people for services in a given year with a promise to pay in the future, but does not set money aside money to pay for the funds promised in the future.  This is called an unfunded liability.  California operates some a couple of the world’s biggest pension plans for its employees.  And then there is the cost of regulations.  And we are not putting away enough to pay the bills when they come due.

Just to ball park this, Spending per civilian employee has gone up by about 204% in the past 17 years, and revenue per civilian employee has gone up by about 197%.  And to boot in 1990, people were complaining that California was a high tax state.  Of course you might argue that businesses would want to stay because government services are twice as good as they were back in 1990–roads, schools, universities… I think you would lose that argument.

Another way to look at this is that each person working in the private sector must support $28,486/year of public sector spending on average.


Other Evidence that California is Taxing the middle class out of the state

We have heard stories of companies telling their employees that they are not moving to save money on salaries but other costs.  We have heard about employers keeping wages the about same and paying people to move into new facilities — which duplicate the ones they already own in California — because of other costs.

 

 

 

 

 

 

Charles Schwab is moving operations for the Bay Area to a 100 Million dollar new facility in North Texas Link and Denver Link

State Farm Insurance Is expanding employment in Arizona, Texas, and Georgia.  It’s closing/closed facilities in Bakersfield (about 4,200) Petaluma, and Irvine. Link

Kubota Tractor spent $50 million for their new HQ in Grapevine Texas.  Link

Toyota

 

 

 

 

 

 

 


Data Sources:

EDD this data provides the number of private and public sector employees.
http://www.labormarketinfo.edd.ca.gov/geography/lmi-for-california.html Number of Employees
California Revenue
http://www.usgovernmentrevenue.com/revenue_chart_1990_2017CAb_18c1li111mcn_F0c
California Spending
http://www.usgovernmentspending.com/download_multi_year_1990_2017CAb_18c2li101mcn_F0t


ATT rate increases hit Orange County Business Owners

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Business Owners Shocked by massive increase in ATT Rates

Rates increase over 100%

ATT rate increas over 100 percent

 

Like many business owners, this central Orange County Business Owner only wants to have an old fashioned land line.  Since he has free long distance on his cell phone, the line only can call other phone numbers in the local area and receive calls.  The owner who wishes to remain anonymous explained.  “I just wanted a phone line for my business.  When I called ATT they kept taking me over to the cell phone department, but this is a land line.  When I finally got through, I was told that the only way I could lower the cost of my land line was if I leased four tablets for my employees.  But I am a one-man business. Why would I want to play with four tablets all day long.  They just try to get you for everything they can.”

(see photo of bill) The cost of a ATT Landline is almost $1,000/year.  Assuming the monthly fees stay the same it’s $99780/year.  Based on the previous amount of $39.81/month or $477.72/year that’s an increase of 109%.

We tried to reach out to ATT but were unable to connect with anyone who could explain these increases.

 

 

Cost of single line with ATT in Anaheim California.

Cost of single line with ATT in Anaheim California.

 

update: We received another notice from the same business owner.  The cost of a single line from ATT has gone up to $91.18/month.  That comes out to $1094/year.  Single phone line, no long distance, no internet, no tv or other services.


Children in Laguna Hills helped by Dance Programs

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Children in Laguna Hills helped by Dance Programs

 


Father and Son Team develop The Balcony Bar ideal for OC’s increasing number of Apartment and Condo dwellers

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Balcony Living Announces Their Innovative Attachable Tabletop Surface, The Balcony Bar.

Father-Son team announce Kickstarter campaign for their new product the Balcony Bar: a solution to traditional balcony and patio furniture.

Balcony Bar offers a solution to living in apartments where space is limited. Photo courtesy of Balcony Living.

Balcony Bar offers a solution to living in apartments where space is limited. Photo courtesy of Balcony Living.

Costa Mesa, CA   Balcony Living, an Orange County outdoor accessory company, has announced their newest product called The Balcony Bar.  This attachable tabletop surface easily clamps to most balcony and patio railings around your home.  No tools are required and installation will not damage the balcony.   The father-son company was founded to create forward-thinking outdoor product solutions for enjoying the best moments of life with family and friends.

As a Father and Son team, Rick and Scott Melgren have worked hard designing and building Balcony Living products.  As a company they strive to achieve the highest level of standards to deliver a quality product that people can enjoy with their family and friends.  Rick, as an inventor saw the problem of limited space on today’s balcony spaces and wanted to design products that could help people maximize their outdoor area.  Scott, with an education in Marketing and with an understanding of today’s online marketplace, wanted to help bring his dad’s products to life.

The Balcony Bar is designed as a portable alternative to difficult-to-move tables used on patios and backyards.  Where the traditional outdoor table is limited to one location and blocks views, the Balcony Bar clamps onto your railing to create an instant surface great for drinks, food, plants and even décor items.  It allows people to sit higher than a table, making it possible to see above your railing and experience the best views possible.

Founders Rick Melgren and his son Scott Melgren have started a family tradition of inventing products creating innovative ideas to share with the world.  Rick is well-known to be a man of many exciting projects throughout his life, and previously had much success with his Southern California based motorcycle and BMX accessories manufacturing company.  Scott is a marketing executive and has helped Rick with ideating, constructing dozens of ideas since he was young. The Balcony Bar is coming to retail in late 2016, and they have announced a Kickstarter to fund the creation of the first 3 color-ways of tabletops.

“We’ve started with the Balcony Bar to get the wheels turning with plenty of other product ideas to get you and your friends outside and enjoying an outdoor style of living.” – Rick Melgren / Co-Founder

 

You can find out more about this innovative product on the social crowdfunding site Kickstarter– http://www.balconyliving.com/kickstarter

 


New B2B printing center in Fullerton

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New B2B printing center in Fullerton
PostNet Services

PostNet Services

Helene Sankovitch contributed to this story.  Photos courtesy of PostNet.

Local Couple open B2B Service Center

New B2B Business in Town Provides Business-Enhancing Print, Marketing and Shipping Solutions for SMBs and SOHOs in Northern Orange County

 

Fullerton, Calif. –  Local husband-and-wife team Roy and Ko Chou are slated to open a new PostNet center in Fullerton, located at 1545 South Harbor Boulevard, Fullerton.  Their new Business Service Center provides customized, business-enhancing print, marketing and shipping solutions for small-businesses and small-office/home-office (SOHO) professionals throughout Northern Orange County.  The idea is that small businesses may not have employees with the expertise or equipment to do jobs themselves.  If you are a one or two person operation, you don’t have the resources to hire a graphic designer, invest thousands of dollars in printing equipment, and figure out how to distribute your marketing material through the mail.

The new business’ menu of services includes graphic design, full-service digital printing, direct mail, signage, document binding and finishing, and ancillary business services, like private mailbox rental and more. Unlike other mail places, PostNet has strategic partnerships with all of the major logistics companies – UPS, FedEx, U.S. Postal Services, and DHL – offering a multi-carrier selection coupled with in-center professional packaging services to meet the specific shipping needs of its customers.

PostNet in Fullerton has both a physical storefront in the community as well as an Online Print Center, offering customers the benefits of quick online transactions and traditional face-to-face service.  “Whether entrepreneurs are looking for printing, shipping or marketing solutions, PostNet is filling the void for convenient services that are essential to the success of small businesses,” said Chou, who previously owned a consulting business. “We are looking forward to supporting the growing Fullerton business community.”

PostNet is a growing franchise which screens franchisees to make sure they have the know-how and equipment to meet the needs of today’s small businesses.  PostNet fills a niche in this growing business sector with its comprehensive suite of solutions from design to distribution.  “Our franchise partners understand the challenges and opportunities that are unique to small businesses in their communities because they are small business owners themselves,” said Steve Greenbaum, co-founder and CEO of PostNet. “Of course there are other providers that design, print and ship, but the culture, guidance and direction we provide small business owners make the difference, creating ongoing partnerships between us and our customers.”

Founded in 1992, PostNet is the leading business-to-business franchise known for providing customized, business-enhancing print, marketing and shipping solutions. PostNet locations offer full-service digital printing; direct mail; signage; document binding and finishing; graphic design; and ancillary business services, like private mailbox rental and more. They also offer professional packaging services and shipping with UPS, FedEx, DHL and the U.S. Postal Service. In addition, with the brand’s bricks and clicks business model, each PostNet franchise has both a physical storefront in the community as well as an Online Print Center, offering customers the benefits of quick online transactions and traditional face-to-face service. PostNet has nearly 700 franchise locations across 10 countries.

PostNet has won numerous awards and recognitions including: 2015 Entrepreneur Franchise 500; 2015 Franchise Gator Top 100; 2015 Entrepreneur America’s Top Global Franchise; 2013 Top 10 Best Franchise for Veterans by Military Times; 2013 Satisfaction Award from Franchise Business Review; and 2013 Mail Innovations Award from the U.S. Postal Service. For more information about PostNet services, go to www.postnet.com; for information about owning a PostNet franchise, visit www.postnetfranchise.com.


Glass Skateboard company re-invents the board.

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Glass Skateboard company re-invents the board.

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