CALIFORNIA COULD LEARN FROM TEXAS

California

According to the Texas Public Policy Foundation, Texas is economically healthier than California. These states' dramatically different economic approaches have caused businesses to flock to Texas and flee California.

Here is where the difference is most pronounced:

• California's per capita government spending is 30 percent higher than Texas', and that gap continues to widen.
• In the last year, Texas has added almost 250,000 new jobs - more than half of the national total.
• California has shed 200,000 jobs just in the last four months and boasts one of the highest unemployment rates in the country.
• As employers move, so do workers; four of America's 10 fastest-growing metropolitan areas are in Texas.
• Additionally, California has a worse state legal climate, higher workers' compensation costs, a higher state minimum wage and it allows industries to force workers to join unions and pay union dues.
• In January, the Texas Legislature will return to a cash balance in the $10 billion to $15 billion range.
• California faces a $15 billion to $17 billion budget deficit for the next year, as well as structural deficits well into the foreseeable future.

All of these increase the operating costs to employers, which decreases their ability to compete against rivals in other state and countries.

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