Jerry Brown to Rick Perry: That come-on-down-to-Texas ad is “barely a fart”

posted at 5:01 pm on February 6, 2013 by Erika Johnsen

I love federalism. Which is to say, really, that I love competition. When states, like businesses, compete for their desired goals in a free-market scenario, everybody wins in the long run, because the policies that really work and appeal to the most people will come out on top.

Texas and California are often compared as polar opposites in terms of their business-friendly policies; i.e., Texas is reliably ranked number one and California usually comes in around dead last. There are plenty of traditional and cultural factors that keep California an attractive place for venture capital investment, but an incoming raft of even more onerous regulations and higher taxes planned by the Californian government might mean that any businesses on the fence will reexamine their location options — and hey, just throwing this out there — Texas just wants them to know that the Lone Star state is a pretty great place.

In the 30-second radio advertisement — which highlights Texas’ low taxes, predictable regulations, fair legal system and skilled worked —Perry says, “Building a business is tough, but I hear building a business in California is next to impossible.”

The one-week advertising schedule will run in six media markets, namely San Francisco, Sacramento, Los Angeles, Inland Empire and San Diego. TexasOne, a public-private partnership that markets Texas nationally and internationally as a business destination, will pay for the advertising.

California Governor Jerry Brown was not impressed.

 ”It’s not a serious story, guys,” the Democratic governor told reporters at a business event here. “It’s not a burp. It’s barely a fart.”

The ad buy Perry announced Monday is relatively small, at about $24,000, but it gained widespread attention in the media. Brown called the amount “the smallest entry into the media market of California.”

“If they want to get in the game, let them spend $25 million on radio and television,” Brown said. “Then I’ll take them seriously.”

Eloquent. Here’s the slightly more persuasive response from Brown’s Office of Business and Economic Development, via HuffPo:

I can understand why Rick Perry is interested in California. We were the national jobs leader for most of the last year with 257,000 new private sector jobs,” said Kish Rajan, director of the Governor’s Office of Business and Economic Development. “But business relocations only account for 0.03 percent of annual job losses in California. At that rate of growth, it would take 20 years to lose just 1 percent of our businesses to relocation. The reports show that no state has ever poached their way to long-term prosperity. Real job creation comes from California’s history as a national leader in start-ups and the expansion of homegrown businesses.”

Poaching doesn’t work. This is something so many governors have done before and with the same ineffective results. One of the only real studies that’s ever been done on this, by the Public Policy Institute of California (PPIC), called it insignificant. During the two years of the highest departures in the study, California lost just 0.05 percent of the state’s total establishments.

Er, poaching doesn’t work, really? Maybe not, and it’s true that, historically, not many of California’s job losses stem from relocation — but they better tell that to these guys, who clearly find it worthwhile to spend their time convincing Californian businesses that it would be more profitable to expand their businesses elsewhere, via the WSJ:

Now, states that have traditionally staffed external business-development offices only overseas are adding manpower in the Golden State. …

Companies rarely relocate purely at a recruiter’s suggestion. But states are hoping to capture the attention of Silicon Valley venture capitalists as well as California’s large number of entrepreneurs and CEOs, and to make sure they are on the shortlist for any expansions or relocations. Arizona opened its first two domestic out-of-state offices in October—one near Los Angeles, the other in Silicon Valley. Tennessee in November posted an ad for a new government position looking for California businesses to poach. Nevada hired its own representatives in California two years ago.

Recruiters say most of their work centers on companies that are expanding, not relocating altogether. Ron Frierson, a Los Angeles-based representative for Kansas, says he spends his days scouring the state for businesses that may want to open out-of-state plants, warehouses or data centers. Doug Kiggins, one of Arizona’s two new California recruiters, said he has been spending about six hours a day driving around to promote Arizona’s business-friendly climate.

Next up from Perry in the governors’ feud: A classic “Bless their hearts,” perhaps?


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Comment pages: 1 2

Whiner takes all, right bluefox?
Sorry if it seems personal, it isn’t.

Where’s Rove’s Chins to tell us all how…
Grief, gravy.

mickytx on February 6, 2013 at 9:07 PM

by all means check out smokin hot’s toy site. It has some facts (sourced to our local rags typically) with much editorializing (tax-cutting republicans vs democrats, right wing republicans vs. democrats, etc) apples to apples comparisons should be categorized one would think for a site that is supposed to be all about transparency and reporting budgets and stats. Uh no, not there.

Hey smokin hot, who is Michael Barnhart?

A quick scan reveals they rate Texas 50 out of 50 on per capita spending. Yea!!! And they break debt down by every conceivable category so we know every citizen owes $11,000 + in state debt.

Can’t find that data about California but they helpfully point out California is spending at a per capita rate that is similar to that from 1972. huh?

Texas credit ratings AA+. AA. AAa
California…”Standard and Poor’s boosted California’s credit outlook to stable from negative, and then on Feb. 14, 2012, it raised the outlook on the state’s credit to positive.”

There are some facts on the page but its what you don’t find that may be more telling (h/t Brent Bozell). A big take away though, smokin hot gives those numbers for state income of 32% and 39% frd money but in the category for revenues in the California link there is no mention of that. The Texas one doesn’t give a revenue breakdown.

Oh, and it’s a Wiki built page. lolz

DanMan on February 6, 2013 at 9:08 PM

page2 bish.
I have won, not a thing.

mickytx on February 6, 2013 at 9:09 PM

DanMan on February 6, 2013 at 9:08 PM
.
my own haert, etc.

mickytx on February 6, 2013 at 9:11 PM

heart, that is

mickytx on February 6, 2013 at 9:12 PM

well mickytx when I saw they linked the Houston Comical, Austin anti-American Statesman, etc. I knew it was just a media fluff push site much like a voter push poll

DanMan on February 6, 2013 at 9:17 PM

Read it and weep. You may not like one site, but that doesn’t mean that the figures lie. In any case the Tax Foundation put the same figures on a map.

http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets

Click on the link to see how your state ranks.

Still laughing Danman

smokin hot politics on February 6, 2013 at 10:19 PM

”It’s not a serious story, guys,” the Democratic governor told reporters at a business event here. “It’s not a burp. It’s barely a fart.”

This is why I oppose legalizing marijuana

entagor on February 6, 2013 at 11:32 PM

Now, what I don’t get is this- if the small ad buy and Perry showing up here in San Diego a few weeks ago is nothing more than a burp or a fart or a giggle, or however Gov. Linda’s Main Squeeze want’s to characterize it, why is there such a concerted effort to put it down?
Is there a possibility that Gov. LePetomaine believes he may just lose some of that Prop 30 tax base?

BillH on February 7, 2013 at 12:48 AM

Texas talks a good game, but it is all talk.

smokin hot politics on February 6, 2013 at 7:01 PM

It’s amusing that Texas, with its mostly Republican delegation, manages to outdo California in how much good stuff it gets from the Feds.

That in and of itself says reams about California’s delegation and its Senators — who cannot get out of Washington what they put in.

It also says that companies would do well to relocate to Texas, where they will see more of their federal tax dollars in action.

unclesmrgol on February 7, 2013 at 12:49 AM

So Perry wishes to subject California to a treatment of corporate Ex lax instead of a corporate jug of GoLYTELY. Absorbing THAT many companies too fast might not help Texas.

{^_-}

herself on February 7, 2013 at 4:27 AM

Aren’t farts subject to Gov. Dumba**’s new cap and trade law?

MNHawk on February 7, 2013 at 8:26 AM

In 2011 California received 32.38% of its budget from the federal govt.. No. 37 in the country of the fed feeding states.
http://sunshinereview.org/index.php/California_state_budget
smokin hot politics on February 6, 2013 at 7:01 PM

Wrong bucky. Try again.

Texas only gets back $0.91 cents for every dollar given. California $1.09.

mrsmwp on February 7, 2013 at 8:56 AM

Still laughing Danman

smokin hot politics on February 6, 2013 at 10:19 PM

at you, that would be yes. You are showing the same flawed information in another format. Again, your first links had some good data and lots of media generated junk to attempt to reinforce bad analysis. It was still touting Texas having a $27 billion shortfall in 2012 yet the website said it was updated on 12/31/2012. News flash lightweight, that $27 billion shortfall was a Houston Comical sourced number that was a two year projection from BEFORE the last legislative session in 2011 and was written in 2010. Guess what? We cut spending, did not raise taxes (actually cut the margin tax on business) and we ended up with a $8 billion surplus going into this session.

Sell it at Kos baby.

DanMan on February 7, 2013 at 12:05 PM

”It’s not a serious story, guys,” the Democratic governor told reporters at a business event here. “It’s not a burp. It’s barely a fart.”

The ad buy Perry announced Monday is relatively small, at about $24,000, but it gained widespread attention in the media. Brown called the amount “the smallest entry into the media market of California.”

“If they want to get in the game, let them spend $25 million on radio and television,” Brown said. “Then I’ll take them seriously.”

So major media reports on it, he gets a lot of media play, it gets a lot of circulation; but because they didn’t pay 1,000 times more than they needed to, the California Government is unimpressed.

If they’d spent 1,000 times more for the SAME RESULT then the California Governor would be impressed? But if you don’t overpay massively for a service he’s not interested?

I feel bad taking all the easy ones. Anyone else want to take a swing at the ball sitting on the tee here?

gekkobear on February 27, 2013 at 12:53 PM

Texas is all hat and no cattle.

In 2011 Texas received 39.98% of its budget from the federal govt.
No. 11 in the country of fed feeding states.
http://sunshinereview.org/index.php/Texas_state_budget

In 2011 California received 32.38% of its budget from the federal govt.. No. 37 in the country of the fed feeding states.
http://sunshinereview.org/index.php/California_state_budget

Texas talks a good game, but it is all talk.

smokin hot politics on February 6, 2013 at 7:01 PM

I can lower California’s number to 16%, they just need to DOUBLE THEIR SPENDING and borrow another couple hundred billion in debt… That would be good for them, right? Since the lower number is all that matters.

No? Well then I have to ask…

Care to try that number in dollars received per Federal tax dollar paid, or Federal dollars per capita, or anything that doesn’t FAVOR high tax high spending states as this does to pretend spending and borrowing billions you don’t have is a good thing?

Of course not… this is the only way to get the numbers twisted to show what you want them to show.

Figures don’t lie, but liars figure.

gekkobear on February 27, 2013 at 12:59 PM

Only a fool lives in MD.

TX-96 on September 14, 2013 at 8:49 PM

Comment pages: 1 2