t was alarming the first three or four times California was ranked last among 50 states for business environment. Now, Chief Executive magazine's annual ranking, based on a survey of 650 chief executives on taxation, regulation, workforce quality and living environment, again places California dead last, 50th of 50 – for the eighth year in a row.

Eight years in a row ceases to be alarming. It now is a defining status.




California's reputation has become firmly ensconced in the minds of top business executives. These are people whose opinions "matter because they play roles in determining where a company will locate, expand or add jobs and increasingly, the competition is with other states more than foreign countries," as Register business columnist Jan Norman wrote about the survey.

The magazine gave California four of five stars for living environment because, despite government's harmful interventions, it remains a beautiful place to live and work. But the state received only three stars for workforce quality, and the lowest possible ranking, one star, for taxation and regulation.

Gov. Jerry Brown insists those who say California is unfriendly to business are wrong. But Mr. Brown, of course, is not the chief executive officer of a private business. He is the top executive of a deficit-burdened, intrusive, bloated government bureaucracy that has perfected squandering other peoples' money while botching delivery of services such as education and lavishing public employees with unaffordable pay and benefits.

California public school teachers are the nation's highest-paid, while their students' performance ranks among the worst. The state's various unfunded pension and retirement health care benefits promise to bankrupt the already overextended government.

As chief executive opinions go, Mr. Brown's are considerably less credible than CEO magazines' private-sector leaders.

"California's enduring place of perpetual decline continues in this year's ranking," the magazine said. "Once the most attractive business environment, the Golden State appears to slip deeper into the ninth circle of business hell."

The CEOs aren't alone in their harsh critique. The state got an "F" grade in January from Thumbtack.com and the Kauffman Foundation in a survey of 6,000 small businesses across the nation, and the Tax Foundation ranked California 48th worst on business taxes.

There is little prospect of improvement. Despite finding itself in a hole, state government keeps digging. This week the state Senate Judiciary Committee killed a California Chamber of Commerce-sponsored job-creator bill to protect employers from inappropriate litigation.

Mr. Brown's Air Resources Board is ratcheting up costly new regulations and preparing an ill-advised cap-and-trade carbon-emissions auction to coerce private energy providers to do things the government's way. The governor and other Big Government champions also are advancing proposals for the November ballot to extract upwards of another $20 billion per year in taxes.

As CEO magazine's poll shows, the state's failings are obvious to business people. But Mr. Brown and California's other governmental leaders just don't get it.



http://www.ocregister.com/opinion/california-353450-business-state.html