California’s Tech and Venture Capital salvage state’s ranking, bringing it to 25th
In CNBC’s annual “Top States for Business” ranking, California’s ranking reflects the reality of our economy, which is led by our tech industry and venture capital dollars but bogged down by our ongoing cost of living crisis, high taxes, and unfriendly business policies.
“California’s competitiveness, our ability to attract and retain businesses, as well as to provide employees with an affordable qualify of life, continue to show clear warning signs thanks to our ongoing cost-of-living crisis,” said Rob Lapsley, president of the California Business Roundtable. “This ranking is an annual reminder of the state’s precarious future and economic solvency. Just like the state budget, our business climate relies almost exclusively on the highly volatile Bay Area’s tech region to grow or attract business.”
According to the survey, California received an “F” in cost of living and business friendliness which directly reflect the impact of the policies that are being passed by state and local government. In addition, the state economy received a “D+” and our cost of doing business scored a “D.” The only categories in which California excelled were access to capital and technology and innovation, where we scored an “A+” for each.
“Our overall rankings should come as no surprise to the governor and Legislature, who continue to push higher taxes, fees, and expensive regulations onto businesses,” Lapsley continued.
In just the past 30 days, the governor and Legislature have ensured businesses will pay one of the highest tax increases in state history by refusing to provide state funding to pay off the state-created Unemployment Insurance Fund debt (learn more here) and increased labor and litigation costs by proposing to refund the Industrial Welfare Commission in the state budget (learn more here).
“The governor and Legislature’s policies continue to give clear signals that California is not a friendly place to expand or grow jobs. Technology and innovation, combined with access to capital, have disguised many of the major impacts that our policies are having on all other sectors in our economy. This report clearly reflects the harm these policies are having on businesses and working families,” Lapsley concluded.
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