Writing at RealClearMarkets, Steven Malanga of the Manhattan Institute examines the consequences of government regulations and policies in California that have made the state a high-cost place to do business. Malanga pegs the column to a recent visit to Texas by California state legislators and Lt. Gov. Gavin Newsom to investigate how the Lone Star State has done so much better in job creation than the Golden State.

One theme is obvious and persistent when you peruse dozens of stories on California companies that have pulled up stakes in the past few years: Many are going somewhere else to lower costs, whether it’s a shipping company moving HQ jobs from Oakland to Phoenix, or a software maker leaving North Hollywood for Austin, or a visual effects studio leaving Venice, Ca., for Port St. Lucie and Vancouver.

Some firms also say they are leaving because California’s state and local budget crunch has made government voracious. LegalZoom, the online company, is leaving Los Angeles for Austin because of a lengthy dispute with city government over taxes. One thing that sealed the move: When the firm’s 400 employees heard the company was contemplating leaving, some began asking to relocate. Meanwhile, Creators Syndicate, the media syndication company, has also contemplated leaving because of a dispute over taxes with the city of Los Angeles that prompted an official of the company to accuse the city of operating like a “banana republic” and its bureaucrats of acting like “Stalin’s apparatchiks.”

And for all the state’s emphasis on “green jobs,” companies that manufacture environmentally oriented products are escaping California, as well.

Malanga accurately analyzes the problem, and Jack Stewart, president of the California Manufacturers and Technology Association, offers a solution. In a new column, “Texas Trip Confirms: California Needs a Plan to Create Jobs,” Jack argues: (continue reading…)

Governor Schwarzenegger’s remarks outlining his “Jobs Initiative” Monday at Ace Clearwater in Torrance elicited much good commentary about the state’s business climate and manufacturing.

Along with highlighting the importance of jobs training, Jack Stewart of the California Manufacturers and Technology Association also emphasized the need for regulatory reform in the state. He said:

[The] Governor mentioned the importance of regulatory reform. I echo that. California has now accumulated a very large body of California-only regulations that make it very, very difficult for California manufacturers to compete in this global economy.

So I think what we can do this year is, at no cost at all to the state, very low cost — it may cause the legislature to work a little harder — but look at reforming our regulatory system so there is certainty in our marketplace. The fact is that uncertainty is the hobgoblin of innovation and creativity and economic growth. So I think that’s something we can do at very low cost; reform, streamline our regulatory process to make California more competitive with the rest of the nation. We have the ability to do that.

We look forward to engaging with the legislature and the Governor this year to reduce those just awful unemployment numbers and bring California back to the golden years when manufacturers created middle class jobs, created wealth, created growth throughout the state.

Last week, Jack issued a statement urging the governor to go even further in the way of regulatory relief. That’s the right direction, removing burdens to make the state more competititve. Federal regulators should take note. The EPA and other empowered agencies need only look at the decline of California’s economy to witness the damage that overregulation can do to a business climate and people.

Governor Arnold Schwarzenegger delivered his final State of the State address on Wednesday. (News release, speech.)

Jack Stewart, President of the California Manufacturers and Technology Association, issued a statement in response. We’ve highlighted Jack’s comment that applies equally on the federal level.

In 2010 Gov. Arnold Schwarzenegger must address the largest unemployment problem California has seen in 70 years. The Governor was right in his State of the State address that job creation should be our number one priority and we applaud his commitment. However, we don’t share his optimism that the worst is over for the California economy and that we are well positioned to take advantage of the future.

Policies that help only select industry segments are not the answer. We need sweeping policies and strategies that send a clear signal to all employers that California can compete with the rest of the nation.

We were surprised that the Governor limited business regulation reform to streamlined construction permitting. After losing 600,000 manufacturing jobs, 32 percent of California’s industrial workforce, we must go so much farther. A very inexpensive and productive way for the state to grow new high wage jobs is to provide broad regulatory relief . By reforming California’s onerous regulatory burden, California can provide consistency and a more competitive business environment. We urge the Governor and legislature to conduct an in-depth and focused review of the cost impact and effectiveness of existing and proposed regulations.

The Governor and Legislature have an enormous year ahead of them and their goal should be to make California attractive to every kind of manufacturer and high wage employer. We won’t recover without significant employment gains in all sectors of our economy.”