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California Businesses Fleeing the State

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









Data Sources:

EDD this data provides the number of private and public sector employees. Number of Employees
California Revenue
California Spending

OC Marathon’s New Corporate Challenge is a Win-Win-Win


Employers, employees and their charities gain lasting benefits through fitness, fellowship and fun!

OC Marathon’s New Corporate Challenge   photo courtesy of Julie Karges.

OC Marathon’s New Corporate Challenge photo courtesy of Julie Karges.

Julie Karges contributed to this story

Newport Beach –   Start training your teams! Organizers of the 13th annual U.S. Bank OC Marathon are thrilled to announce the addition of the “Corporate Challenge” to this year’s world-class event that spans three races in two days: the Wahoo’s OC 5K, the half marathon and the full marathon. The OC Marathon Corporate Challenge (or OCMCC) is an extraordinary opportunity for businesses of all sizes to go head-to-head in friendly competition and reap immeasurable benefits along the road: improved employee fitness and overall workplace wellness, a swell of company goodwill through fundraising, increased business branding and positive exposure in the community, not to mention a truly memorable time as a team! Awards will be handed out for the fittest and most philanthropic businesses in each of the three size divisions and there is no fee to participate.

“Training together for the Corporate Challenge is a great way for companies to promote employee camaraderie,” says long-time OCM Director, Gary Kutscher, an avid runner himself. “Healthier, fitter employees take fewer sick days, and team building helps them grow closer to each other which naturally makes for a better work environment.” Past teams have enjoyed workouts and dinners together, and have kept each other pumped up for the big weekend.

With the Corporate Challenge, employees can bond over another shared purpose: Fundraising for causes that are near to their hearts. Companies can run for one of OCM’s 30 official charities or one of their own choosing. Corporate Challenge and the event’s CrowdRise pages bring employees together to raise money for deeply meaningful causes – and in turn raise each other up in the process.

“It’s one thing to feel good about yourself by finishing a marathon, and it’s another to know you’ve just raised $2000 to help someone in need,” Kutscher says. “Imagine if a company raises $50,000 together. That creates a lot of goodwill and can make a real difference to an organization.” With over 30 official charities, the OCM 2017 has a goal to raise over $1,000,000. Nearly $5,000,000 has been generated since the first event in 2004. (For more information about charities, email

How can businesses get even more involved?  The OCM is an event attended by up to 40,000 active lifestyle consumers, offering an ideal venue for businesses seeking widespread exposure. From setting up a booth at the event’s Expo to signing on as a title sponsor, the OCM directly connects businesses with the community – and beyond.

  • Awards up for grabs! OCMCC winners will be trumpeted at a special ceremony on Thursday, May 4th at the OC Marathon VIP Awards reception, as well as in emails and on social media. The following awards will be given in each of the three size divisions:
  • The “OCM’s Fittest Firm Award” will be given to the company with the highest level of participation — including direct family members on the company team roster.
  • The “OCM’s Most Philanthropic Firm Award” will be bestowed upon the awe-inspiring company who manages to raise the most funds by May 1, 2017.

Registration is now open! Go to for more details and to peruse the Corporate Challenge booklet, or email us at  Event dates Friday, May 5 through Sunday, May 7, 2017


In its 13th year, the U.S. Bank OC Marathon and Half Marathon (May 7, 2017) welcomes runners from more than 20 countries and all 50 states. The course is considered one of the best destination races on the West Coast with its diverse terrain, changing vistas and majestic ocean views beginning in Newport Beach, CA, traversing four Orange County cities and finishing with the Ultimate Finish Line Festival at the OC Fair and Event Center. With a goal of $1,000,000, the U.S. Bank OC Marathon is on pace to post its biggest year yet.

The three-day event also includes the OC Lifestyle and Fitness Expo, the Kids Run the OC — one of the largest youth running days in the country with 10,000 children finishing their “Final Mile” on Saturday morning — and the Wahoo’s OC 5K on Saturday, May 6th at 5:00 p.m. Come “Catch the OC Wave”!

For more information about the event or how to get involved, please visit or email us at



Dr. Estelle Toby Goldstein M.D. now practicing in Orange County

Dr. Goldstein now in Orange County.

Dr. Goldstein now in Orange County

Dr. Estelle Toby Goldstein M.D. Veteran of the US Army and a former Medical School Professor Joins New Day Psychotherapy Group in Brea, CA.

 Brea, California  Estelle Toby Goldstein, M.D., officially joins New Day Psychotherapy Group’s roster of clinicians at the new location in Brea according to Milagros Saxon, PhD, CEO at New Day. Her first day of practice in the new office will be Thursday, November 17th.

The new office at 3350 E. Birch St. Suite 206, Brea, CA 92821 expands the New Day practice, which is based in Cypress and also operates a clinic in Pasadena.

Dr. Goldstein brings over 35 years of medical experience to the practice, including 25 years as a psychiatrist. She attended medical school in France and lived in that country for seven years before returning to the US for specialty training in the fields of general and orthopedic surgery, and later, neurological surgery. She also did fellowships in neurology and psychopharmacology with experience in drug development. She is a lifetime Diplomat of the American Board of Psychiatry and Neurology.

She formerly operated a solo private practice in San Diego from 2003 to 2009 where she concentrated on natural alternative psychiatry as well as standard medication and psychotherapy. Her practice was a valued community resource for the GLBT patients of San Diego County and she attended transgendered clients during their transitions.

The new location for New Day in Brea includes a staff of five psychologists and therapists who were chosen by Dr. Saxon for their passion, enthusiasm and skill.

To make an appointment, potential patients can call 714-515-8510 and follow the prompts for a new patient. “Our intake team Shanelle and Melissa will take good care of them,” say’s Dr. Saxon. For more information contact:

Golf Simulator Facility open in Mission Viejo


Mission Viejo, CA – Ultimate HD Golf (UHDG) is opening its first indoor golf simulator facility at LA Fitness in Mission Viejo on Alicia Parkway.  Four high definition golf simulators will provide a unique, exciting golf and entertainment option to LA Fitness members as well as non-members.

Two-time Master’s Winner Bubba Watson says, “HD Golf is the most realistic simulator I have ever seen.”


Ultimate HD Golf is the brainchild of Herb Meistrich, founder of the TaylorMade Performance Labs.  With Ultimate HD Golf, you can play 18 holes, practice or just enjoy playing golf in a comfortable indoor setting.  Play iconic courses like Pebble Beach, Torrey Pines or St. Andrews, day or night, for a fraction of the cost of a round of outdoor golf. Ultimate HD Golf uses over 55,000 High Definition photographs to create a realistic and fun experience.

An 18-hole round takes about only an hour for a single golfer to complete. In addition to providing an outlet for current golfers.  Ultimate HD Golf’s mission is to deliver an experience that will bring golfers back to the game and create an environment where new players, especially millennials and children, can experience the benefits and enjoyment of golf in a friendly, comfortable and relaxed atmosphere.  Even if you’ve never picked up a club, this is the perfect opportunity to try playing golf.  Beginners will not be harassed by more advanced golfers demanding that they hurry up; and they will not have to pay the steep green fees or buy expensive equipment just to get in a quick round.  It’s also a great option for disabled golfers who may have problems walking the several miles it takes to complete a course.

Whether you play 18 holes or practice on the range, a computer will track all your statistics and store them in the cloud.  A state of the art launch monitor captures your swing and the computer coordinates the data, including launch angle, ball speed, head speed, angle of attack with a GPS system that tracks the direction of the ball and how far it would have traveled on the actual course.  You can play in leagues or tournaments. You and your friends can play closest to the pin or long drive contests or play a particular hole as often as you like.

Meistrich relates, “In adding golf as an additional amenity to the Mission Viejo – Alicia Parkway LA Fitness club, Ultimate HD Golf is attempting to energize and reinvigorate golf as a sport and to hopefully make it more accessible and affordable to a wider group of people. Our indoor environment, using realistic high-definition images, cuts the cost and, most importantly, enables a single player to complete a round of golf in approximately one hour.”

LA Fitness is happy to be bringing this exciting amenity to its membership.

“We are very pleased to add the services that Ultimate HD Golf provides to our Mission Viejo – Alicia Parkway club. As a leading health club chain, we pride ourselves on continually exploring new avenues to deliver additional value to our members, including bringing in innovative amenities like those offered by Ultimate HD Golf,” said Bill Horner, Chief Real Estate Officer for LA Fitness.

While this is a great venue for golfers to hone their skill or just get in a little golf when pressed for time, it’s also a great opportunity for new players to try the game in a friendly, low-pressure environment and the perfect way for parents to introduce their kids to the sport.  In addition to golf, the simulators can be used to play video games using Kinect or Xbox on the GIANT 11-foot by 15 foot screen. The gaming systems are available as are the most popular games – or even bring your own!

About Ultimate HD Golf.
Ultimate HD Golf is a thrilling experience in LA Fitness clubs where you can play 18 holes, practice or just have fun playing golf in an indoor, comfortable and relaxed atmosphere. Play iconic courses like Pebble Beach, Torrey Pines or St. Andrews. Ultimate HD Golf uses over 55,000 High Definition photographs to create a realistic and fun experience. In addition to providing an outlet for establish golfers, our mission is to deliver an experience that will bring golfers back into the fold as well as create an environment where new players, especially millennial’s and children, can experience the benefits and enjoyment of golf. For more information about Ultimate HD Golf, visit Ultimate HD Golf is independently owned and operated and is not an affiliate of LA Fitness. Any representations made herein are made solely by Ultimate HD Golf.

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


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–


Affordable Healthy Restaurant CABO KANTINA opens in Laguna Hills

image courtesy of Cabo Kantina website

Image courtesy of Cabo Kantina website

New Restaurant Concept Affordable-Fit comes to the OC

Diners no longer have to choose between healthy food and fast food

Laguna Hills, California – Moe Ghazi, top restaurateur, creator of Cafe Panini, in Corona Del Mar, Mosun in Laguna Beach, Ten Asian Bistro in Newport Beach, Momos Grill and Taleo Mexican Grill in Irvine, California is a master of creating the ultimate dining concepts.  Cabo Kantina Ghazi’s, most recent venture takes place with a health conscious new casual food concept that will revolutionize the restaurant industry. Eat well and live well….

Ghazi has taken on the greatest challenge of his career but he knows it will be his biggest accomplishment!   He proudly now presents, from the Coast of Cabo to Laguna Hills, California.

Where it costs less to eat here, than make it at home.
Quality, Healthy and Value–That’s what we’re all about.

The cuisine at my newest restaurant goes beyond anything I’ve ever created. Everything is prepared to order, the freshest ingredients, nothing is fried or pre-cooked. All our lean proteins are oven roasted with no additional fats or oils. My vision is to serve gourmet food with fast food pricing…. with “healthy eating” for everyone: our children, athletes and the elderly! Small changes can make a difference to your health.

In order to compete with fast food restaurant chains and their pricing, such as a Big Mac and fries for $9.00 and stay with the health conscious appeal, Ghazi was and determined to take the next steps to see how he can serve affordable, delicious, fresh wholesome food and charge the same price.

After months of researching on how he could bring this concept to life, he realized that in order to accomplish this mission, he needed to start his first location in a lower rent area of Laguna Hills, serve food in disposable plates and keep his labor costs down by running each location with a smaller staff.  They are able to be more efficient because each team member is personally trained by Ghazi on a variety of skills.  In a small restaurant operation such as a family restaurant multi-tasking saves money because each employee is not assigned to a specific task, and hence not wasting time waiting to do a specific task.

Mr. Ghazi went on to explain how the dining experience differs from what’s available for that price point at national franchise operations.

Our goal was to create a casual and relaxing atmosphere. The decor is bright with thatch awning over the bar to make our customers feel the calm sense where they can imagine the sand under their feet and the sun on their skin, like a vacation in Cabo. It is perfect for dine in or those on the go.

Prices are definitely reasonable when you consider that all the ingredients are fresh, not pre-packaged.  Their menu sounds reads like something you would find at a five star resort: hormone free range chicken and steak, caramelized carnitas, whitefish, salmon, mahi mahi, shrimp and ahi tuna.  Customers can have it prepared in a taco, burrito, bowl or on a salad with their favorite protein as an entree or ala carte.

Cabo Kantina is open seven days a week for lunch and dinner from 11 a.m. to 10 p.m.; Beer and Wine coming soon.

For more information, visit: our website: or call (949) 716-9716


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