More: http://globaleconomicanalysis.blogspot.com/2012/03/california-tax-revenues-plunge.htmlInquiring minds have noticed a huge plunge in California Tax Revenue for the month of February compared to February 2011.
That is a 22.55% plunge in spite of the fact that this February was a leap year adding a day to the calendar.
... Street has the reason: Businesses fed up with high taxes have fled the state.
Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.
Vranich considers California the worst state in the nation to locate a business and Los Angeles is considered the worst city to start a business. Leaving Los Angeles for another surrounding county can save businesses 20% of costs. Leaving the state for Texas can save up to 40% of costs. This probably explains why California lost 120,000 jobs last year and Texas gained 130,000 jobs.
Everyone in the blogosphere seems to keep their focus on FedGov, but individual states like Cali as well as the larger municipalities are going to be drivers of greater and greater stress on the system as they require more bailouts.