Texas Governor on the Quest for California

Texas Governor Rick Perry’s aggressive campaign to lure California companies to Texas started early February with a 30 second radio ad. His message was simple: get California businesses to the Lone Star state.

In his radio ad, Perry states, “Building a business is tough, but I hear building a business in California is next to impossible”.

During his campaign for California jobs, Perry is set to meet with CEOs and business owners this month in face-to-face meetings to convince them to relocate to Texas.

Perry’s tour of California will have him stopping in major areas like San Francisco, Silicon Valley, Los Angeles and Orange County.

During an interview in Beverly Hills, Perry said,
“Many [businesses] are looking for somewhere else to go, and we’d like them to consider Texas.”

For many California business owners, the idea of relocation is tempting with the current state tax code, expensive real estate and growing budget shortfalls.

Perry’s plan entices Californian businesses with promises of lower taxes, sensible regulations and a fair legal system, and has many companies weighing their options.

But Perry isn’t the first to come looking for California business. The Arizona Commerce Authority recently opened up offices in the Golden State, along with Iowa and Nevada following suit.

However, many economists say that the recent decline in California jobs can’t be blamed on business’s moving out of state. From 1992 to 2006, only 2 percent of job losses in California were due to relocations.

These findings aren’t surprising to Joseph Vranich, a local business relocation specialist out of Irvine. Joseph argues that it is extremely difficult to accurately track all the business that flows in and out of the state. With the number of local businesses seeking his advice on the rise, his business has nearly doubled since last November.

Vranich says, “The number of calls is literally unprecedented”.

California Governor Jerry Brown reacted to Perry’s recent radio ad with, “It’s not a serious story, guys… you take a little radio, all you guys run like lapdogs to report it”.

It is unlikely that Governor Perry’s efforts for California business will result in a massive relocation to Texas, but it is clear that he will benefit politically.

Jerry Brown’s lieutenant Governor, Gavin Newsom said,” He’s getting all kinds of press up and down the state, and why? Well, because he’s leaning in. He’s in the game.”

When asked why he chose California as his target, Perry responded,
“You fish where the fish are”.