Good thing we have great weather.
Kevin Smith in the Star-News reports on a study from Cal State Sacramento:
Business regulations are costly By Kevin Smith, Staff Writer Posted: 09/30/2009 07:16:54 PM PDTCalifornia businesses have long complained about the costly and cumbersome regulations they face in order to operate in the state.
And a new report puts a sobering price tag on all of that aggravation – $492.9 billion, to be exact.
That’s the total cost of regulation to these companies, according to the “Cost of State Regulations on California Small Businesses Study” authored by Cal State Sacramento professors Sanjay B Varshney and Dennis H. Tootelian.
To put this in perspective, that’s nearly five times California’s general fund budget and almost a third of the state’s gross product.
The $492.9 billion – which includes direct, indirect and induced costs – equates to a statewide loss of 3.8 million jobs. And since small business accounts for 99.2 percent of all employer business in California and all non-employer business … these costs are borne almost completely by small business, the report said.
Broken down, that penciled out to $134,122.48 per small business in California in 2007. Labor income not created or lost was $57,260.15 per small business.
Those numbers weren’t surprising to Jack Kyser, founding economist for the Los Angeles County Economic Development Corp.
“Some people have been critical of some of the statistics they used for their study, but the fact remains the situation has become more onerous for small businesses that don’t have the financial resources larger businesses have,” Kyser said.
One of our real challenges will be for our local area to remain competitive in a faltering economy. We have Arizona, Utah and others working overtime to lure California business away. How are we going to ensure competitiveness and convince corporate decision-makers that there is more to staying in California than mild weather.
Paul
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