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.”