Thursday, November 17, 2011

California's Fiscal Disaster: Two Stories That Should be Read Together

Yesterday's San Francisco Chronicle reported:

State fiscal nightmare: deep cuts on horizon

"California faces deep midyear cuts to its universities, community colleges, social service programs and public schools - which may have their year shortened - because the state will collect billions of dollars less in revenue than expected, according to a report released Wednesday."

Then read this article by Steven Malanga, at City Journal:

Cali to Business: Get Out!
Firms are fleeing the state’s senseless regulations and confiscatory taxes.


Excerpt:

"As California has transformed into a relentlessly antibusiness state, those redeeming characteristics haven’t been enough to keep firms from leaving. Relocation experts say that the number of companies exiting the state for greener pastures has exploded. In surveys, executives regularly call California one of the country’s most toxic business environments and one of the least likely places to open or expand a new company. Many firms still headquartered in California have forsaken expansion there."

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