But Beware of Economic Developers Bearing Information

According to an article in the February 8th 2010 edition of the Northern Nevada
Business Weekly, Nevada state officials now have the information to back up
their claims that the Silver State provides a better home for California executives
and their businesses. Apparently, Nevada is now armed and coming to the Golden
State with the facts.

As the story goes, The Nevada Commission on Economic Development commissioned
Whittaker Associates Inc., a Michigan economic research firm, to detail the
differences between California and Nevada.

The study validates from an outside observer a pitch that has been made by industrial
recruiters from Nevada, said Mike Skaggs, executive director of the Commission on
Economic Development in the article.  The Commission will be using the research as
part of an e-mail campaign targeting high-growth California companies that are looking
to expand, said Skaggs. It will be used, too, as economic development officials work
the trade show circuit to pitch potential employers on the benefits of Nevada locations.

The study found Nevada is a leader in supporting new businesses, with a business tax
climate that ranks fourth among the 50 states. Nevada also ranks third in terms of
its favorable corporate tax structure. California ranks 48th and 34th, respectively,
in these same categories according to the Small Business & Entrepreneurship Council’s
annual report that ranks states for entrepreneurship.

However, upon a closer look, not all of their data is correct.  California does not
have the highest top personal income tax rate in the nation.  That honor goes to
Hawaii and Oregon.

And the Silver State isn’t in any better fiscal situation than California.  In fact,
according to the state Assembly Speaker Barbara Buckley, things are so bad in Nevada
that apparently the state could lay off every worker paid for from its General Fund
and it would still be $300 million in the red.

Lastly, Nevada won’t tell you that they have been rated has one of the least ‘Happiest
States’ in the nation in two recent rankings including Warwick University and a Gallup
Poll,  ranked 39th and 46th respectively. 

It appears the Silver State is in hopes of striking it rich, looking for a mother lode,
a get rich quick effort at the expense of the Golden State, rather than growing and
building a sustainable and diverse economy themselves.  And if you are a Nevada official
recruiting businesses away from California, and you get offered chocolates by California
executives during your visitations, thank the economic developers from Colorado’s and
their Valentine recruitment mission.

By the way, who has higher unemployment rates?  Oh that's right, Michigan and Nevada.

 
   
tjohnson@californiabusinessminute.com