Compared to western states, California still 80 percent more in electricity costs and 30 percent more in overall business costs, index shows

By CMTA Staff

Capitol Update, Aug. 12, 2005 Share this on FacebookTweet thisEmail this to a friend

According to The Milken Institute’s annual "Cost-of-Doing-Business Index" released this week, California, compared to all western states (including Texas), costs 80 percent more in electricity and 30 percent more in overall business costs.

The Index measures wage costs, taxes, electricity costs and real estate costs for industrial and office space. Each state is measured on the five individual categories, and those weighted scores are compiled to make the overall index. California's operating costs for manufacturers are 24 percent higher than the national average.

"We’ve been watching this index for the last three years and we use it as an unbiased report card on California’s business climate," said CMTA President, Jack Stewart. "This index shows exactly why states such as Oregon are running ads in California publications recruiting businesses and advertising their lack of sales and inventory taxes, and their much lower electricity and workers’ compensation costs."

The Index indicates each state’s comparative advantages or disadvantages in attracting and retaining businesses and the only industrial state that ranked worse was New York, a state California does not regularly compete with for business.
Capitol updates archive 989898989