Northern California Record

Friday, November 22, 2019

CJAC president says California’s drop in the latest CNBC state business poll 'no surprise'

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By Rich Peters | Aug 15, 2019


SACRAMENTO – Running a business in the Golden State has become even more difficult than usual over the past year, according to CNBC’s annual state-to-state business poll. The annual poll ranks each state in a number of major categories, including workforce, economy and structure.

Overall, California currently ranks 32nd in the nation, down from 25th a year ago. Cost of doing business, cost of living and business friendliness all received an F grade.

“Companies come here to get in on the gold rush of venture capital, but high costs and regulation can stifle the dream,” states the poll. 

However, experts are not shocked by California’s low rankings.

“It is no surprise that California continues its trend of being last in the nation for business friendliness,” said Kyla Christoffersen Powell, president and CEO of the Civil Justice Association of California. “The deterioration of California’s legal climate increases costs and risks business owners face on a daily basis. Until we address the problem of rampant shakedown lawsuits, they will continue to burden businesses.”

Many pundits around the state have blamed a number of bills for the current struggle of doing business. Most commonly experts have pointed out the growing concern with Proposition 65 – the Safe Drinking Water and Toxic Enforcement Act – as well as the current climate of litigation lawsuits across the state. Small businesses in particular are having trouble keeping up with ongoing legal battles that they are being faced with because they simply don’t have the same resources as larger corporations.

The poll was conducted by CNBC through the economic profile sources of: U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federation of Tax Administrators, American Petroleum Institute (excluding 18.40 cent/gallon federal tax), Moody's Investor Service, and S&P Global Market Intelligence.

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