By Steve Large

SACRAMENTO (CBS13) — In response to the news that a large waste-management business headquartered in Folsom is moving to Texas, the governor’s office issued a statement Monday calling it “unfortunate” but that “California has added more new jobs in the last year than any other state.”

When the CEO of a billion dollar business blamed California politicians, complaining of “tremendous regulation and really a broken legislature” for his decision to move his company’s headquarters to Texas, the swipe generated a swift backlash from the state Capitol.

Senate Pro-Tem Darrell Steinberg pointed to Waste Connections’ profitability in California, with revenues up 38 percent in three years, according to the company’s annual report.

And the governor sent out a statement pointing to Bureau of Labor statistics showing California has added 239,000 jobs in the last year, making it No. 1 in the country, ahead of Texas and Florida.

But a closer look shows that the Sacramento region where Waste Connections is leaving has actually lost jobs —1,100 in the past year. State government jobs took the biggest hit. But growth has come to San Francisco, where 16,700 jobs were added in the past year and Los Angeles, where employment has increased by 19,000 jobs.

But according to a small business advocate, the numbers don’t speak to the difficulties business owners still face in California.

“They still feel overtaxed, overregulated, they still feel like frivolous lawsuits are a real scourge in every community,” John Kabateck said.

It’s a battle that Waste Connections CEO Ronald J. Mittelstaedt says he won’t need to fight in Texas.

“No state income taxes, very robust economy, lower overall cost of living,” he said. “And our ability to recruit and retain people would be much higher that staying here in California.”

Comments (12)
  1. david says:

    business is over taxed as are working californians, employees everywhere. fees are up, property taxes, cost of products, cost of food, cost of services, are all up. brown will be increasing sales tax on everyone which is another tax bite out of everyone’s income. brown will be taxing the wealthy too. both brown tax plans with apparently the approval of 60% of californians. the wealthy should leave the state as should businesses that can move to another tax friendly or tax reasonable state. the wealthy can even move abroad or find ways to shelter their wealth. meanwhile brown and the legislature have no spine, no stones, to make drastic spending cuts. voters are once again being fooled into compliance with their agenda which seems to be tax and spend, tax and spend some more.

  2. Marty says:

    Politicians in California in both parties have their head up their a$$. They only care about staying in power and making as much money as possible. The love affair between government and corporations needs to stop. But the corporations do need to be kept in check, as well. There has to be some rules or there will continue to be corporate greed at the expense of the little guy.

  3. Dan says:

    I don’t believe it for one minute not even college grads are able to find any jobs that pay a living wage or that has future.

  4. John says:

    It’s sounds like Waste Connections is heading to Texas because they don’t want to pay corporate income tax. Add to that the million dollar taxpayer grants the Governor of Texas will dole out for a company that isn’t even adding any new jobs after it moves and it’s no wonder TX has a crumbling infrastructure and is dead last in education.

    1. Sam T. Andres says:

      Well said!

  5. Dave Folsom says:

    “One of the region’s largest employers” – They have 120 employees in the area. How is that our largest employer? VSP employs over 5 times as many people in the area and they stated earlier this year that they would not be moving out of state.

    CBS 13 needs to work on their fact checking.

  6. Americanfirst says:

    Business has been migrating from California for the last two decades for all of the same reasons. California is not a business friendly climate. I’ve watched business go to Az. and Nevada for years.

  7. Eric says:

    Don’t forget Copart left as soon as Brown was elected.

    1. lawrence s says:

      Pretty Cheap Propaganda about California. CA is the THIRD largest Economy in the world! Not States, Counties, Cities, or local…But the World !!!! On your way out of CA, don’t forget all ur righties propaganda clowns with u.

      1. Mark M says:

        Another public school education. Dip wad – Germany, Russia, China, Brazil, India, Japan and a few others surpass California’s 1.9 trillion.

        Facts be dammed. Business can’t run quick enough from the tax and spend demorats that have still out spent revenue by 30,000,000,000.00.

  8. nothingchanges says:

    They can say what they want and be in loser denial the fact is businesses are leaving for business friendlier states.

  9. Sam says:

    It the shame for us we should learn form Texas,Arizona they are pulling our business because their governments have better business plans than our government has.Taxi Natomas

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