Western States Picking Off California Talent

With a new State budget about to be passed that will raise sales taxes by 1%, gas taxes by 12 cents a gallon, add a surtax on the state income tax (a tax on a tax), and double the car registration fees, there are less and less reasons for productive Californians to stay here. Other Western states are jumping in to pick off the disenchanted:

Several Western states are launching aggressive efforts to poach jobs, talent and industry from California, sensing an opportunity to capitalize on the Golden State's current political and financial woes.

Colorado is the first out of the box with a Valentine-themed banner that will trail behind an airplane circling rush-hour traffic in Los Angeles on Friday morning, urging Californians to give Colorado a try. Ads in newspapers from San Diego to San Jose will feature a Cupid in ski boots over a bold-faced tease: "California, can you feel Colorado's love?"

Hundreds of California CEOs will receive flowery Valentine's Day cards proclaiming, "Mile High State Seeks Sea-Level Executive." The campaign even includes a YouTube video of Tom Clark, executive vice president of the Metro Denver Economic Development Corp., kissing the envelopes before depositing them lovingly into a mailbox.

Right behind Colorado are Arizona, Nevada, Oregon and Utah -- all planning to make similar runs at luring corporate executives, venture capitalists and manufacturers who might be fed up with California's political gridlock or anxious about potential tax hikes and deep cuts to schools, parks and other services.

"What's going on in California is very exciting for us because it looks like a tipping point will soon be reached," said Somer Hollingsworth, president of the Nevada Development Authority.

During California's energy crisis a decade ago, when executives feared the state might not be able to provide reliable and affordable power, Oregon reaped a bumper crop of recruits. Such instability "is really good for our state," said Tim McCabe, director of Oregon's economic development department. His recruitment budget is tight, but Mr. McCabe said Oregon won't let California's current struggles go to waste: "We're redoubling our efforts."

California's business boosters say they will be hard-pressed to respond. At the Los Angeles County Economic Development Corp., Jack Kyser is preparing to mail thousands of postcards to local business owners, offering the services of a "business ombudsman" to help them cut red tape or find trained workers. He has never taken such a step before, he said, adding that he hopes it will build loyalty to California.

But he isn't betting on it. In this atmosphere of uncertainty, with the state facing a staggering $42 billion deficit, Mr. Kyser said he has little ammunition to beat back crossborder raiding parties. "We know they're out there," he said. "California offers rich pickings. It definitely is a concern."

Make me an offer.