Another Hit For the Cs: Californian Exodus

Approaching Infinity

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FOTCM Member
3 December 1994

A: Expect gradual destruction of California economy as people begin mass exodus.
As of the end of 2010, the number of people leaving California hasn't been huge compared to the mid nineties (http://www.laobserved.com/biz/2011/03/fewer_californians_l.php). However, the number of companies moving out of state has been called an "exodus".

CA Business Exodus Accelerates
http://www.calwatchdog.com/2011/04/14/ca-business-exodus-accelerates/

The California Exodus
http://www.newtimesslo.com/cover/3807/the-california-exodus/

http://thebusinessrelocationcoach.blogspot.com/2011/04/calif-disinvestment-events-reaches-new.html

California is experiencing the fastest rate of of companies relocating to out-of-state or out-of-country locations since a specialized tracking system was put into place two years ago. The disturbing trend is reflected in a review of activity from Jan. 1 through April 15 of this year when 70 California company disinvestment events occurred, an average of 4.7 per week -- greater than the 3.9 average per week last year.
And yeah, the economy is in shambles: http://www.businessinsider.com/reasons-to-leave-california-2010-10
 

HiThere

The Living Force
FOTCM Member
Second that. It is depressing to watch the development in the USA these days, and the decline will in all probability continue on.
 

wmu9

Jedi
Myself and the company that employs me left California last year completely. When did the C's predict this?
 

Approaching Infinity

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wmu9 said:
Myself and the company that employs me left California last year completely. When did the C's predict this?
Do you mean when did they make the prediction? If so, it's in my original post: December 1994. If you mean when did they predict it would happen, that would be open. And it's always possible this isn't the exact thing they predicted. There might be more in the future.
 

Mr.Anderson

Jedi Master
The Denver area has exploded (population) as a result, over the years. I just moved back here from southern Colorado after just 4 years and the difference is very noticeable.
 

Rabelais

Dagobah Resident
FOTCM Member
3 December 1994

A: Expect gradual destruction of California economy as people begin mass exodus.
There they go.

California companies fleeing the Golden State

By Tami Luhby @CNNMoney July 12, 2011: 12:51 PM ET

NEW YORK (CNNMoney) -- Buffeted by high taxes, strict regulations and uncertain state budgets, a growing number of California companies are seeking friendlier business environments outside of the Golden State.

And governors around the country, smelling blood in the water, have stepped up their courtship of California companies. Officials in states like Florida, Texas, Arizona and Utah are telling California firms how business-friendly they are in comparison.

Companies are "disinvesting" in California at a rate five times greater than just two years ago, said Joseph Vranich, a business relocation expert based in Irvine. This includes leaving altogether, establishing divisions elsewhere or opting not to set up shop in California.

"There is a feeling that the state is not stable," Vranich said. "Sacramento can't get its act together...and that includes the governor, legislators and regulatory agencies that are running wild."

The state has been ranked by Chief Executive magazine as the worst place to do business for seven years.

"California, once a business friendly state, continues to conduct a war on its own economy," the magazine wrote.

That is about to change, at least if Lieutenant Governor Gavin Newsom has anything to say about it. Newsom is developing a plan to address the state's economic Achilles heels, and build on its strengths. It will be unveiled at the end of July.

"California has got to get its act together when it comes to economic development and job creation," he said.

snip
_http://money.cnn.com/2011/06/28/news/economy/California_companies/index.htm?iid=Lead

Back when I read that 94 session I thought CA would go out with a bang. Looks more like a whimper now, but the cosmos can still weigh in. I sure am glad I got out when I did. It could be a whimper, splat double whammy in the state's future.
 

Rabelais

Dagobah Resident
FOTCM Member
Expect gradual destruction of California economy as people begin mass exodus.
The toppling dominoes are picking up speed...

San Bernardino third California city to seek bankruptcy

By Jim Christie

SAN FRANCISCO | Wed Jul 11, 2012 11:58am EDT

(Reuters) - The city council of San Bernardino, California, voted on Tuesday to file for bankruptcy, marking the third time in recent weeks a city in the most populous U.S. state has opted to seek protection from its creditors.

The decision by the leaders of San Bernardino, a city of about 210,000 residents approximately 65 miles east of Los Angeles, followed a report by city staff that said the city faced an imminent financial crisis.

The report said the city had exhausted its reserves and projected that spending would exceed revenue by $45 million in the current fiscal year which started on July 1.

According to media reports, the city attorney general James Penman said San Bernardino's city officials had been submitting false accounting documents for 13 of the last 16 years in an effort to hide the real financial situation of the city.

Chapter 9 bankruptcy would give San Bernardino an opportunity to restructure its battered finances, city staff said during a webcast of the city council meeting.

But the council's vote may backfire on San Bernardino in the municipal debt market, and raises concerns about local officials in California potentially looking to bankruptcy protection as an easier solution than making tough decisions about spending cuts and raising revenue, said Dick Larkin, director of credit analysis at muni bond broker-dealer HJ Sims.

"Am I troubled? You bet," said Larkin. "I couldn't believe how quickly this vote happened."

Larkin noted the concerns of San Bernardino's staff about the risk of the city not meeting its payroll in coming months may be eclipsed by concerns it could be frozen out of the muni debt market if it goes through with a bankruptcy filing.

It may take San Bernardino 30 days to complete the actual filing, according to its city attorney.

"I hope California isn't becoming the flashpoint for municipal bankruptcy because if that happens then everyone in the state will be paying for it," Larkin added. "If there are more coming, there will be big penalties to (municipal debt) issuers in California, all the way up the state level."

San Bernardino will join the California communities of Stockton and Mammoth Lakes in bankruptcy court.

Stockton failed after three months of talks with its creditors to obtain concessions to close its $26 million budget gap and the city of nearly 300,000 in the state's Central Valley last month became the most populous U.S. city to file for bankruptcy.

Mammoth Lakes, a ski resort town of about 8,000 residents, last week filed for bankruptcy due to a nearly $43 million legal judgment against it.

Like Stockton, San Bernardino has suffered from the housing crash and high unemployment. According to the report to its city council, the city "has reached a breaking point and faces the reality of deficient cash on hand to meet its contractual and debt obligations due in July 2012."

"The city has declared numerous fiscal emergencies based on fiscal circumstances and has negotiated and imposed concessions of $10 million per year and has reduced the workforce by 20 percent over the past four years," the report said.

"Yet, the city is still facing the possibility of insolvency due to a variety of issues including accounting errors, deficit spending, lack of revenue growth, and increases in pension and debt costs."
_http://www.reuters.com/article/2012/07/11/us-sanbernardino-bankruptcy-idUSBRE86A05320120711
As the municipal sector implodes, so goes all of those public jobs as police, fire and other services are cut to the bone or eliminated altogether. Its been like watching a slow motion train wreck.
 

Average Joe

Padawan Learner
And what are California politicians doing about this? As would be expected... absolutely nothing. Roll back exorbitant taxes and oppressive red tape? You've got to be kidding! Politicians worked very hard to screw up this state and will be damned before fixing it.
Sacramento is heavily infested with organic portals, which pretty much guarantees the perpetual inertia of the status quo. If things do change, it won't be for the better.
 

anart

The Living Force
Average Joe said:
Sacramento is heavily infested with organic portals, which pretty much guarantees the perpetual inertia of the status quo. If things do change, it won't be for the better.
What data do you have to back up this statement?

Considering the hypothesis that 50% of the world's population is composed of organic portals, and that organic portals in and of themselves are not 'bad', it would be appreciated if you not jump to such conclusions. Basically, your statement 'blames' organic portals for the state of things in California, which indicates that you have a shaky understanding of the definition of organic portal.
 

Average Joe

Padawan Learner
That's just my opinion. Common sense dictates that if Sacramento were populate with people of conscience, there would be more of an effort to remedy the chronic dysfunctionality caused by ill conceived legislation. This is not the case.
Perhaps the term "organic portal" is not entirely accurate, but it conveys the notion that STS influence is rampant in the state capital. There is ample opportunity for our representatives to correct glaring impediments to economic growth in the state, yet they do nothing but pile on more useless regulations and taxes. Anyone with a brain can see that they do not have the long term prosperity of the citizens in mind.
 

anart

The Living Force
Average Joe said:
That's just my opinion. Common sense dictates that if Sacramento were populate with people of conscience,
Organic Portals can be people of conscience.

aj said:
Perhaps the term "organic portal" is not entirely accurate, but it conveys the notion that STS influence is rampant in the state capital.
It's not accurate at all. STS influence is present in 100% of souled human beings on this planet, else they'd not be here.

aj said:
There is ample opportunity for our representatives to correct glaring impediments to economic growth in the state, yet they do nothing but pile on more useless regulations and taxes. Anyone with a brain can see that they do not have the long term prosperity of the citizens in mind.
Absolutely, but that has nothing to do with whether they are an Organic Portal or not.
 

anart

The Living Force
Average Joe said:
Organic Portals can be people of conscience.
So, then what is your understanding between the difference of an OP and a non OP?
Please read this thread in its entirety - http://cassiopaea.org/forum/index.php/topic,457.msg1917.html#msg1917
 
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