Saturday, July 30, 2011

China Military

http://www.defense.gov/pubs/pdfs/2010_CMPR_Final.pdf

Obama only willing to cut defense spending

Townhall Columnists Lurita Doan
Obama's Intent to Gut the Military

President Obama continues to push the notion that he wants a "balanced approach" to budget cuts, but it is becoming increasingly clear that the only spending cuts he is willing to contemplate are cuts in defense spending. The vast entitlement system that now eats the majority of tax dollars is, by contrast, not only on his list of programs to be sustained, but expanded. Mr. Obama seems determined to protect the welfare state. He lacks the courage and the candor to admit to the unsustainablity of an entitlement system which has pushed the nation to the brink of insolvency as our debts continue to mount. Instead of addressing the source of the spending problems, it is becoming clear that Mr. Obama intends to hollow out the military. What folly!
Only weeks ago, Obama signaled intentions to cut $400 billion from Defense, but key Democrats are already talking about even large cuts of $1 trillion to Defense. Such a move would signal a broad American retreat from the world and erode our national defense for many years to come. Obama's military budget shenanigans are yet another reminder that the key characteristic of Obama’s involvement in any aspect of U.S. life--economics, policies or participation on the world scene—is that Obama's policies have left Americans with a weaker world presence as a result of his involvement.

Military spending is an area which, traditionally, in past years, Dems have loved to cut. Democrat eagerness to cut military spending is the result of a fundamental, ideological difference: the GOP believes the U.S. is served best by a strong military, both at home and abroad, while Dems believe that a more kumbaya, we-are-the-world, approach is the way to best protect America. Obama, who first launched his apologize-to-the-world tour on this premise, has never been a keen supporter of endeavors military. Obama's recent threats, that our veterans might not receive their retirement and disability checks if a debt ceiling-budget compromise is not reached by 2 August, just prove that point.

It seems clear that the $100 billion in defense cuts proposed in the FY2012 budget are merely the tip of the iceberg. Further cuts will likely be proposed because the budget dollars for defense are so big and because cutting in this area will appease at least one faction of the Dems ideological extremist base.

The Gang of Six proposal called for almost trillion dollars ($886 billion) in cuts from defense. Others have proposed that some direct cuts could come from canceling air craft carrier construction (not surprisingly, the Dems have pointed to the USS George H.W. Bush) as one of the possible candidates for cancelation.

Other proposals include the reduction of U.S. troops in Europe and Asia, as well as at home. Others propose to implement cuts to military health care, reduce the U.S. nuclear arsenal and reduce the military research and development efforts and even revise the military pay and compensation scale.

Certainly, any of these proposals would reduce the amount of military spending, and thus reduce overall federal spending, but we would be weaker as a nation as a result. George Washington said: "A free people ought not only to be armed, but disciplined; to which end a uniform and well-digested plan is requisite." Obama seeks to render our military neither well-armed nor well-planned which calls into question our nation’s ability to remain a free people for long.

Meanwhile, over at NASA, the U.S. space program has, essentially, been canceled. Instead of pushing the agency to focus on its core mission and core competencies, Obama has allowed NASA to take itself out of the space business, and thus take the country out of space for the next 30 years. NASA's reduction of mission will result in thousands of jobs lost" as contractors for the shuttle program begin to lay off workers."

Worse, to put a man in space, America will now be required to pay Russia for shuttle space. Not too surprisingly, Russia has already stepped forward and declared that the next decade will be "the era of the Soyuz" as Russian space exploration continues.

The next U.S. president will inherit an economic disaster of a country on an epic scale, courtesy of the bungling of Obama, and his team of advisors, whose repeated efforts to stimulate the economy through government subsidies and increased regulation that punishes small business owners, has failed to yield significant growth in the economy or in jobs. The next president, courtesy of Obama's bungling, will also face a monumental, uphill task to restore the superior force and prestige of our military at home and abroad. For that, a new president, who believes in our country and believes in American exceptionalism is mandatory.

November 2012 cannot come soon enough.

http://townhall.com/columnists/luritadoan/2011/07/25/obamas_intent_to_gut_the_military/page/2

Obama fails on domestic oil production

CRS: AMERICA'S COMBINED ENERGY RESOURCES LARGEST ON EARTH
Inhofe, Murkowski Release Memo Showing U.S. Is World Leader in Conventional Fuels
October 23, 2009

CRS: AMERICA'S COMBINED ENERGY RESOURCES LARGEST ON EARTH
Inhofe, Murkowski Release Memo Showing U.S. Is World Leader in Conventional Fuels
Link to CRS Report

Washington, D.C.-Sen. James M. Inhofe (R-Okla.), Ranking Member of the Senate Committee on Environment and Public Works, and Sen. Lisa Murkowski (R-Alaska), Ranking Member of the Senate Energy and Natural Resources Committee, released a preliminary government report today showing America's combined recoverable natural gas, oil, and coal endowment is the largest on Earth. America's recoverable resources, Congressional Research Service (CRS) shows, are far larger than those of Saudi Arabia (3rd), China (4th), and Canada (6th) combined. And that's without including America's absolutely immense oil shale and methane hydrates deposits.

Oil - CRS offers a more accurate reflection of America's substantial oil resources. While America is often depicted as possessing just 2 or 3 percent of the world's oil-a figure which narrowly relies on America's proven reserves of just 21 billion barrels-CRS has compiled US government estimates which show that America is endowed with 167 billion barrels of recoverable oil. This is the equivalent of replacing America's current imports from OPEC for more than 75 years.

Natural Gas - Further, CRS notes the 2009 assessment from the Potential Gas Committee, which estimates America's future supply of natural gas is 2,047 TCF-an increase of more than 25 percent just since the Committee's 2006 estimate. At today's rate of use, roughly 90 percent of which is produced domestically, this is enough natural gas to meet American demand for nearly 90 years.

Coal - The report also shows that America is number one in coal resources, accounting for more than 28 percent of the world's coal. Russia, China, and India are in a distant 2nd, 3rd, and 5th, respectively.

Sen. Inhofe: "Our overwhelming coal, natural gas, and oil resources represent tens of trillions of dollars in wealth and millions of American jobs. Whether through decree or purposeful inaction, government policies that unnecessarily restrict or prevent our ability to responsibly produce these domestic resources are threatening, and could eventually undermine, our nation's economic and national security. We should pursue an all-of-the-above strategy that advances new energy technologies but also prioritizes developing the resources we have today."

Sen. Murkowski: "By compiling the most recent and best available data, this report merely confirms what a lot of us have been saying for years: the United States has abundant supplies of natural gas, oil, and coal. Any honest conversation about job creation, national security, and affordable energy must include these resources, because they will continue to account for the bulk of our supply well into the future. The Interior Department and others in the Executive branch have every tool they need to allow production of these resources; the question is whether the Administration is willing to make that happen."

The Administration's Record: While we appreciate what President Obama has said about the need to increase domestic production of conventional fuels, nine months after taking office the actions his agencies have taken tell a different story.

- The $787 billion economic stimulus bill included no provisions to spur production of American natural gas, oil, or coal reserves. - The Treasury Department intends to increase the oil and gas industry's taxes by $31 billion over the next 10 years, and has justified the repeal of multiple production incentives by declaring that they "encourage the overproduction of oil and natural gas" in the United States.

- The Fish and Wildlife Service has released a proposal to designate "critical habitat" for polar bears, including "areas where oil and gas exploration activities are known to occur." Should this designation become final, it could prevent energy production in a resource-rich area that covers more than 200,000 square miles. - The Department of Energy proposed to slash all funding for ultra-deepwater oil and gas research, in order to be "consistent with [its] policy to terminate discretionary oil and gas research and development programs."

- The Interior Department extended the comment period on the new 5-Year Plan for offshore leasing by 180 days and, now that 180 days have passed, announced it has not “reached a decision yet on what the next steps are going to be.” - The Interior Department temporarily withdrew 77 leases in Utah, and, following "nine days of on-site investigation" of the years-long leasing process, decided to allow leasing to move forward on just 17 parcels.

- The Air Force is no longer "actively pursuing" plans to develop coal-based liquid fuels, a "decision [that] represents a policy shift under the Obama administration." - The Interior Department delayed the next round of oil shale RD&D leasing, and recently announced plans to implement a revised process that could slow the commercialization of this resource.

- The EPA has "blocked an air pollution permit" that would allow a refinery near Chicago to boost its ability to process unconventional oil. - The EPA "withdrew the air quality permit it issued last summer for the Desert Rock coal-fired power plant" that would be built on Navajo Nation lands in northwest New Mexico using state-of-the-art environmental technology and making a valuable contribution to economic development in the area.

- The Interior Department "blocked new hardrock mining claims on 1 million acres surrounding the Grand Canyon, citing the need for continued study of the environmental impacts of both mineral exploration and mining." This decision will reduce our nation's ability to fuel emissions-free nuclear power with a secure domestic supply of uranium.
http://epw.senate.gov/public/index.cfm?FuseAction=Minority.PressReleases&ContentRecord_id=824fbf11-802a-23ad-4fe4-04c94a5a6757&IsPrint=true

Democrats want gas fuel prices to go up

Inhofe Op-Ed:
Actually, we can drill our way to energy security (Daily Caller)
May 4, 2011 Posted by Matt Dempsey Matt_Dempsey@epw.senate.gov

In Case You Missed It...
The Daily Caller
Op-Ed: Actually, we can drill our way to energy security
By Sen. James Inhofe 05/03/2011
Link to Op-Ed

Government Report: America's Combined Energy Resources Largest on Earth

In the debate over rising gas prices, Washington is creating a massive distraction: whether Congress should eliminate tax "subsidies" for oil and gas companies. Of course oil and gas companies don't receive checks, grants, or direct payments from the federal Treasury, so the debate is a red herring. What's really needed is price relief for consumers at the pump. The best way to do that is to produce more affordable energy here at home.

We certainly have plenty of it: according to the non-partisan Congressional Research Service (CRS), America's combined supply of oil, coal, and natural gas is the largest on Earth. Put another way, America's recoverable resources are far larger than those of Saudi Arabia (3rd), China (4th), and Canada (6th) combined. And that's without including America's immense oil shale and methane hydrates deposits.

The CRS report was requested by me and my colleague, Sen. Lisa Murkowski (R-Alaska). It grew out of frustration with the Democrats' refrain that America only has 3 percent of global oil reserves, and therefore, under this view, more drilling and production at home is futile. As President Obama put it, "With 3 percent of the world's oil reserves, the U.S. cannot drill its way to energy security."

But the CRS shows the full, accurate picture of America's reserves - and shows that we can produce our way to energy security. CRS shows more than just our proven oil reserves, which are a modest 28 billion barrels. The only way to estimate proven reserves is to drill. But that's not possible because federal policies, supported by President Obama and many Democrats, put 83 percent of America's federal lands off limits to drilling. Of course that's just fine for this administration, as a senior official at the Obama Treasury Department said, "The administration believes that it is no longer sufficient to address our nation's energy needs by finding more fossil fuels..."

In fact, according to CRS, which relied on estimates from the Department of Energy, the U.S. Geological Survey, and the Interior Department, we have 163 billion barrels of recoverable oil - nearly six times higher than what President Obama and the Democrats like to claim. That amount of oil would replace our current oil imports from the Persian Gulf for more than 50 years.

But this administration is saying no. By restricting supply - through its de facto moratorium on deepwater permitting in the Gulf of Mexico, and its restrictions on production on federal lands - prices have gone up. This is exactly what this administration wants. Energy Secretary Steven Chu, for instance, told the Wall Street Journal that "[s]omehow we have to figure out how to boost the prices of gasoline to the levels in Europe." Consider just Great Britain: consumers there pay over $7.00 a gallon for gasoline.

Remember that when President Obama took office, the national average price for regular gasoline was $1.84 per gallon. Today, the average price is $3.98 per gallon. Prices are well over $4.00 in many parts of the country.

This mindset - which seeks to make the energy we use more expensive, in hopes of spawning a "green energy" revolution - is encapsulated in the cap-and-trade agenda being implemented by the Obama Environmental Protection Agency (EPA). That agenda is now squarely aimed at gasoline, as EPA is preparing onerous new global warming regulations on petroleum refineries, which will inevitably raise prices at the pump.

EPA's cap-and-trade agenda has already killed refinery expansions. Lion Oil, based in El Dorado, Arkansas, recently testified before the House Energy and Commerce Committee that it commenced a $2 million expansion of its El Dorado refinery in 2007, with 2,000 construction jobs, but its completion has since been stalled. As Lion Oil Vice President Steve Cousins explained, "The uncertainty and potentially prohibitive costs associated with possible cap-and-trade legislation and EPA's greenhouse gas regulations were a critical factor leading us to delay the completion of the expansion."

Cousins also testified in 2009 that cap-and-trade legislation would have forced his company out of business. He sees the same threat looming at EPA: "It is our fear that, left unchecked, EPA will use the Clean Air Act to drive to exactly the same goals as the defeated cap-and-trade legislation that Congress so wisely chose not to pass. And in that pursuit, EPA will inflict the same damage on our company and our nation's economy."

This gets to the heart of the debate about gas prices. We have plenty of energy here at home, and we can produce it responsibly, yet the Obama administration, and some in Congress, would rather propagate myths about oil and gas "subsidies." At the same time, they are obstructing our ability to create jobs and affordable energy.

It's time for the president to stop picking on America's energy producers. Instead, for the benefit of consumers, our economy, and our energy security, he should exercise real leadership by getting serious about producing American energy.

Senator James Inhofe (R-OK) is the ranking member of the Senate Environment and Public Works Committee.

Democrats’ Do-Nothing “Plan” Will Bankrupt, Cut Seniors’ Medicare

Video from Chairman Paul Ryan
http://www.youtube.com/embed/DJIC7kEq6kw

KEY FACTS: Democrats’ Do-Nothing “Plan” Will Bankrupt, Cut Seniors’ Medicare Benefits
Posted by Katie Boyd on May 31, 2011
Appearing on CBS’ Face the Nation Sunday, Rep. Debbie Wasserman Schultz (D-FL) not only dodged a question on whether or not Democrats have a plan to save Medicare (correct answer: they do not), but made the claim that ObamaCare “added eight years of solvency” to Medicare. However, according to the most recent Medicare trustees report, ObamaCare will bankrupt Medicare by 2024 and cause significant cuts in seniors’ benefits. Here are some key facts on the Democrats’ do-nothing “plan”:

DEMOCRATS’ PLAN: Use Medicare Cuts as a “Piggy Bank” to Fund New Entitlements:

“Medicare Is Being Used as a Piggy Bank by Democrats, With $575 Billion in Payment Cuts Used to Finance Two Massive New Entitlement Programs in ObamaCare.” “The outrageous distortions about the Ryan Medicare reform plan are coming from people who are accelerating the program’s path to insolvency. Medicare is being used as a piggy bank by Democrats, with $575 billion in payment cuts used to finance two massive new entitlement programs in Obamacare. And this April, the president proposed taking another $480 billion out of the program to lower the deficit.” (Grace-Marie Turner, “There’s No Choice but Change,” National Review’s “Critical Condition” Blog, 5/26/11)
Medicare’s Chief Actuary Warned That ObamaCare “Would Actually Exacerbate Medicare’s Troubles.” “President Obama’s budget offered nothing beyond Obamacare as a solution. Of course, the effects of Obamacare are already accounted for in the latest actuarial projections, since Obamacare is current law. Indeed, in an extraordinary letter affixed to the recent trustees’ report, Medicare’s chief actuary noted that Obamacare’s approach to the program—price controls determined by a board of experts and devoid of market-based reforms that could help health care providers improve their efficiency—would actually exacerbate Medicare’s troubles.” (Yuval Levin, “Beyond Mediscare,” The Weekly Standard, 5/30/11)
Under ObamaCare, “Medicare is Carrying $24.6 Trillion in Unfunded Liabilities.” “This reality is underscored in the just-released annual report of the Medicare trustees. Democrats sold ObamaCare as a way to slow the growth of costs, but the report shows that the program’s finances have deteriorated even since last year. Medicare is carrying $24.6 trillion in unfunded liabilities through 2085, and chief actuary Richard Foster says even that does ‘not represent a reasonable expectation for actual program operations.’” (Editorial, “Republicans and Mediscare,” The Wall Street Journal, 5/23/11)
DEMOCRATS’ PLAN: Medicare Goes Bankrupt Five Years Earlier Than Expected, If Not Sooner:

According to the Most Recent Medicare Trustees Report, Medicare Will Be Bankrupt by 2024 – Five Years Earlier Than Expected. “The annual checkup said that the Medicare hospital insurance fund will now be exhausted in 2024, five years earlier than last year’s estimate…The trustees for the trust funds said in their annual report that the worsening financial picture emphasized the need for Congress to make changes to avoid disruptive consequences in the future for millions of people who depend on health and pension benefits.” (Stephen Ohlemacher, “Trustees: Worsening Picture for Benefit Programs,” Associated Press, 5/13/11)
Even the 2024 Bankruptcy Projection May Be Too Optimistic. “The Medicare figures are suspect, because they rely on billions of dollars in savings projected under the health care law signed by President Obama last year. Those savings depend on many factors, such as cuts in payments to doctors that Congress habitually sidesteps, as well as improvements in doctors’ and hospitals’ productivity.” (Richard Wolf, “Medicare, Social Security Running Out of Money Faster,” USA Today, 5/13/11)
The Most Recent Medicare Trustees Report “Emphasized the Need for Congress to Make Changes” to Save Medicare. “The trustees for the funds said in their annual report that the worsening financial picture emphasized the need for Congress to make changes to avoid disruptive consequences in the future for millions of people who depend on health and pension benefits.” (“Bleaker Outlook for Social Security, Medicare,” The Associated Press, 5/13/11)
DEMOCRATS’ PLAN: Benefit Cuts for American Seniors:

Cuts In Seniors’ Benefits Will Begin By 2024. “If the trust funds run out, the programs no longer would be able to pay full benefits. … Medicare could pay 90% starting in 2024, dropping to 75% in 2045.” (Richard Wolf, “Medicare, Social Security Running Out of Money Faster,” USA Today, 5/13/11)
Doing Nothing & “Leaving Medicare Alone Means It Simply Won’t Be There for Future Seniors.” “According to the Congressional Budget Office and Medicare’s trustees, the program has a long-term unfunded liability of more than $30 trillion. It’s about a decade from insolvency. The trustees’ latest annual report, released on May 13, notes that the Medicare trust fund is projected to run out of money five years sooner than was projected last year. Its current trajectory would swallow up the federal budget. Taxes could not be raised high or fast enough to keep up with its growth without crushing the economy. ‘Medicare as we know it’ is not an option. Leaving Medicare alone means it simply won’t be there for future seniors.” (Yuval Levin, “Beyond Mediscare,” The Weekly Standard, 5/30/11)
On Fox News Sunday, Fortune’s Nina Easton said Medicare “is going bankrupt” and those who refuse to take action “are signing the death papers for Medicare.”

House Republicans have passed a budget that protects, preserves and strengthens Medicare for current and future retirees while spurring job growth, stopping Washington from spending money it doesn’t have, and paying down our debt over time. Click here to learn more about the Republican Path to Prosperity, and click here to learn more about the Democratic “plan” to do nothing, leaving Medicare bankrupt and seniors facing drastic benefit cuts.
http://www.speaker.gov/Blog/?postid=243907
The U.S. Senate has voted down a House-approved bill to raise the debt ceiling, leaving the ball in the court of Senate leadership to produce a deficit reduction bill, with just days left before the Aug. 2 deadline. The vote was 59–41.

Senate Majority Leader Harry Reid followed through on his promise to kill the bill, pushed through the House a day late by House Speaker John Boehner. The White House, which has thrown its weight behind a Reid proposal, had promised a veto had it miraculously passed the Senate.

The Senate also killed the Cut, Cap, Balance Act last Friday and has yet to vote on a formal proposal. Having passed two proposals and with little time to attempt another bill, the House now waits to act on a Senate bill.

“I stuck my neck out a mile to get an agreement with the president of the United States,” Boehner thundered from the floor after the vote. “It’s time for the administration and time for our colleagues across the aisle to put something on the table. Tell us where you are!”

Brad Dayspring, spokesman for House Majority Leader Eric Cantor, announced via Twitter that the House will vote on Reid’s plan Saturday to show that it is “not capable of passing.” First votes are expected to begin at 1:00 p.m.

Reid and Minority Leader Mitch McConnell debated on the Senate floor over when the body should vote on the Reid plan, with McConnell saying that his Republican colleagues were ready to vote Friday night. Reid demurred, meaning that the House may vote on Reid’s Budget Control Act before the Senate, an irony McConnell readily pointed out.

“This is almost an out-of-body experience,” McConnell said. “I’m perplexed that my friend does not want to vote on his proposal tonight.”

At a press conference later in the evening, Reid accused McConnell of refusing to negotiate with Democrats and of allowing a filibuster, which could push the vote back until early Sunday morning.

“The door was open all day. Nobody knocked, nobody walked in,” Sen. Chuck Schumer, the New York Democrat, said at the press conference. “We will not solve this problem by standing there and folding our arms and saying ‘I am not talking to anybody.’”

Read more: http://dailycaller.com/2011/07/29/senate-kills-boehner-debt-ceiling-plan/#ixzz1TcKslrJs

Washington (Jun 2)
On CBS’ Face the Nation Sunday, Rep. Debbie Wasserman Schultz said “it’s easy to throw bombs and to be incendiary, not so easy to sit down and actually govern.” In the same interview, Rep. Wasserman Schultz (D-FL) herself decided to take the easy route and “throw bombs,” by falsely claiming that the GOP’s plan to save Medicare will “throw you to the wolves.” This week, fact checkers are holding Rep. Wasserman Shultz accountable for her false and “incendiary” comments:

The Washington Post’s Fact Checker Gave Rep. Wasserman Schultz’s False Medicare Claims “Three Pinocchios”:

“Neither of Those Claims Are True.” “‘Wasserman Schultz did not say voucher, but her statement suggests that people would be handed a check (‘X number of dollars’) and then have to go out and find a plan that they can afford. She also said the plan would ‘allow insurance companies to deny you coverage and drop you for pre-existing conditions.’ Neither of those claims are true.” (Glenn Kessler, “Wasserman Schultz’s Bogus Claim that the GOP Medicare Plan Will ‘Throw You to the Wolves’,” The Washington Post’s “The Fact Checker,” 6/1/11)
Rep. Wasserman Schultz’s False Attacks Characterized as “Scaremongering Metaphors.” “But Wasserman Schultz is jumping to conclusions — not to mention scaremongering metaphors — to describe provisions in the GOP Medicare plan that just do not exist.” (Glenn Kessler, “Wasserman Schultz’s Bogus Claim that the GOP Medicare Plan Will ‘Throw You to the Wolves’,” The Washington Post’s “The Fact Checker,” 6/1/11)
FactCheck.Org Says Rep. Wasserman Schultz “Throws Truth to ‘Wolves’:

House GOP Plan “Specifically Says Insurance Companies ‘Must Agree to Offer Insurance to All Medicare Beneficiaries.’” “Rep. Debbie Wasserman Schultz falsely claimed that seniors with preexisting medical conditions would be denied Medicare coverage under the GOP's plan. The House GOP plan specifically says insurance companies ‘must agree to offer insurance to all Medicare beneficiaries.’” (Eugene Kiely, “DNC Chair Throws Truth to ‘Wolves’,” FactCheck.org, 5/31/11)
Rep. Wasserman Shultz Is “Simply Wrong.” “She is simply wrong to say that the GOP plan would allow insurance companies to ‘throw you to the wolves and allow insurance companies to deny you coverage and drop you for preexisting conditions.’” (Eugene Kiely, “DNC Chair Throws Truth to ‘Wolves’,” FactCheck.org, 5/31/11)
Rep. Wasserman Shultz “Repeated a False Democratic Talking Point.” “She also repeated a false Democratic talking point that future beneficiaries — those who are now younger than 55 — would be left on their own to buy insurance in the private market. The GOP plan, as we have written before, would provide subsidies for future beneficiaries to buy private insurance from a Medicare exchange set up by the government.” (Eugene Kiely, “DNC Chair Throws Truth to ‘Wolves’,” FactCheck.org, 5/31/11)
PolitiFact Rated Rep. Wasserman Schultz’s Comments “False”:

“We Rate Her Statement False.” “Both the budget plan that passed the House and its predecessor, Ryan-Rivlin, specifically noted that coverage could not be prevented by a pre-existing condition. It may be easier to say you’ll bar ‘cherry picking’ patients than it is to put it into practice, but Ryan has made his intentions consistently clear. We rate her statement False.” (“Debbie Wasserman Schultz Says Ryan Medicare Plan Would Allow Insurers to Use Pre-Existing Conditions as Barrier to Coverage,” PolitiFact.com, 6/1/11)
Last week, House Budget Committee Chairman Paul Ryan (R-WI) released a video “explaining the real danger our growing debt poses to Medicare, and advancing a plan of action to save this critical health-security program.” In the video, Chairman Ryan makes clear that Medicare faces two futures: The Democrats’ do-nothing plan that will bankrupt Medicare and cut benefits for seniors, or the GOP’s Path to Prosperity that will save, strengthen and preserve Medicare for current and future generations. Learn more and get the real facts about the GOP’s plan to save Medicare here: http://budget.house.gov/fy2012budget/.

Democrate Job Chairman sends jobs overseas

Dear Nancy Pelosi guess who is sending jobs overseas....

Obama’s Job Council CEO, Jeff Immelt: General Electric to Create New Job In China
Yes, Obama this is how you create jobs in America, you POS. OVERSEAS? American will not be getting this high paying tech servicing jobs that they were promised. Also, the US will not collect the tax revenues. Who is this benefiting, General Electric.

GE’s CEO, Jeff Immelt, is the Chairman of President Obama’s Job Council. How convenient, it is his company that is involved with the overseas hiring. Conflict of interest one might say. America does not have the 65 qualified engineers set to be hired immediately? Remember, GE paid zero in taxes.

“The people who are part of the business sector, the people in this room, have got to stop complaining about government and get some action underway,” he told the group. “There’s no excuse today for lack of leadership. The truth is we all need to be part of the solution.”

Jerff Immelt

at the U.S, Chamber of Commerce

GE moving X-ray business to China: General Electric Co.’s health care unit, the world’s biggest maker of medical imaging machines, is moving the headquarters of its 115-year-old X-ray business to Beijing.

http://themadjewess.wordpress.com/2011/07/29/obamas-job-council-general-electric-to-create-new-job-in-china-ceo-jeff-immelt/

Democrates with Obama want to cut defense again

Obama like Clinton wants to cut Defense
Clinton Defense Budget Cuts Into Troops, Ships
http://articles.latimes.com/print/1993-03-27/news/mn-15800_1_defense-budget
March 27, 1993MELISSA HEALY TIMES STAFF WRITER

President Clinton, unveiling his first military spending plan Friday, sent Congress a $263.4-billion defense budget for fiscal 1994 that would reduce troop strength to a level not seen since the Korean War but would keep most major weapons systems intact.

According to documents to be formally released at the Pentagon today, Clinton recommended spending $12 billion less than former President George Bush had proposed for next year, the first installment in a plan to spend $88 billion less for defense over the next four years than the Republican Administration had recommended.

.....The budget would reduce troop strength by 108,000 from its current level of 1,775,000 and mark the start of a major reduction for the Navy by retiring 28 active warships, including one aircraft carrier and two reserve vessels.

The budget also would trim the number of Army active divisions from 14 to 12 and reduce Air Force fighter wings from 28 to 24.

Those proposals are expected to meet resistance from Congress and some military leaders, who have said they fear that Clinton's plan will leave U.S. forces ill-trained and too small to contend with the range of commitments the nation has made.

Gen. Colin L. Powell, chairman of the Joint Chiefs of Staff, has argued that the Administration's approach in designing future forces is "fundamentally flawed" and that "the forces and capabilities it proposes are unbalanced."

Pentagon's Proposed Retreat
Here is the impact of the President's military plan: Total National Defense Spending 1994: $263.4 billion 1998: $253.9 billion

Current Proposed Active Army divisions 14 12 Navy battle forces* 443 413 Air Force fighter wings 28 24 Bombers 201 191 ICBMs 787 667
* ships and aircraft Source: Department of Defense

Monday, July 25, 2011

Democrates have Mother Hubbard beat up the American People - while they are close to killing the Golden Goose!

Old Mother Hubbard (Democrates)-- Went to the cupboard (U.S. Taxpayer)
To get her poor dog a bone,
(Benefits available for hand-out to control the population)
Hand-up not a Hand-out is needed)
When she got there, The cupboard was bare (The United States is bankrupt)
So the poor dog had none (Social Security and Medicare is gone)

(Democrates are close to killing the Golden Goose. When this happens, no one will be able to get anything again!

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States. (Not for all the Free Stuff now being handed out)

1.Cut - Substantial cuts in spending that will reduce the deficit next year and thereafter.
2.Cap - Enforceable spending caps that will put federal spending on a path to a balanced budget.
3.Balance - Congressional passage of a Balanced Budget Amendment to the U.S. Constitution -- but only if it includes both a spending limitation and a super-majority for raising taxes, in addition to balancing revenues and expenses.

Congress's past failure to produce balanced budgets is a major cause of today's fiscal crisis. It is time that Congress accepts a limit on its runaway spending, and joins the 49 states which govern with a balanced budget requirement. A balanced budget amendment that fundamentally reforms the way Washington budgets and spends must include protections against federal tax increases and a cap on federal spending to GDP.
http://rsc.jordan.house.gov/Solutions/bba.htm

The consequence of turning the tax code into a tool for social policy is that we now have a record 52 million filers off the income tax rolls. This means 36 percent of all so-called taxpayers actually pay zero in income taxes after taking their credits and deductions. But these figures don't include some 15 million people who work but don't earn enough to file a tax return. When these people are added to the non-payers, estimates the Tax Policy Center, the percentage of households who don't pay income taxes rises to 47 percent.

http://articles.cnn.com/2010-04-15/opinion/hodge.non.taxpayers_1_income-tax-tax-policy-center-credits-and-deductions?_s=PM:OPINION

WASHINGTON — Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it's simply somebody else's problem.

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That's according to projections by the Tax Policy Center, a Washington research organization.

Most people still are required to file returns by the April 15 deadline. The penalty for skipping it is limited to the amount of taxes owed, but it's still almost always better to file: That's the only way to get a refund of all the income taxes withheld by employers.

In recent years, credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17, according to a separate analysis by the consulting firm Deloitte Tax.

Tax cuts enacted in the past decade have been generous to wealthy taxpayers, too, making them a target for President Barack Obama and Democrats in Congress. Less noticed were tax cuts for low- and middle-income families, which were expanded when Obama signed the massive economic recovery package last year.

The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners – households making an average of $366,400 in 2006 – paid about 73 percent of the income taxes collected by the federal government.

The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.

"We have 50 percent of people who are getting something for nothing," said Curtis Dubay, senior tax policy analyst at the Heritage Foundation.

http://www.huffingtonpost.com/2010/04/07/income-tax-47-of-american_n_529059.html

Moody's cut Greece's credit rating further into junk territory on Monday and said it was almost certain to slap a default tag on its debt as a result of a new EU rescue package.
http://webcache.googleusercontent.com/search?q=cache:AG-t9uEijHgJ:www.reuters.com/article/2011/07/25/us-markets-ratings-greece-idUSTRE76O0I420110725+Moody

Gingrich was close on the numbers of Americans receiving SNAP benefits. In addition, the number of beneficiaries is at a record level, and it has risen every month of the Obama presidency. On the other hand, Gingrich oversimplifies when he suggests that Obama should be considered "the most successful food stamp president in American history," because much -- though probably not all -- of the reason for the increase was a combination of the economic problems Obama inherited and a longstanding upward trend from policy changes.
http://www.politifact.com/truth-o-meter/statements/2011/may/16/newt-gingrich/newt-gingrich-defends-calling-barack-obama-food-st/
Subsidy -- Subsidizing a good is one way of redistributing income to the poor. It is money that is paid usually by a government to keep the price of a product or service low or to help a business or organization to continue to function. In a budget constraint between ‘all other goods’ and a ‘subsidized good’, the maximum amount of ‘all other goods will remain the same but the budget constraint will shift outward for the ‘subsidized good’ because the cost of the ‘subsidized good’ is reduced for the consumer and so they have the ability to consume more of said good. Some people do not want to use subsidies because they want the poor to consume the subsidized good or service in a specific way or because subsidizing goods (such as health care) can lead to an over consumption of the good.

Voucher - - A voucher is like a subsidy that can only be consumed in a specific way like a school voucher or section 8 housing. For instance, families who receive school vouchers may only use them to send their children to schools to help pay tuition costs. Schools then exchange the voucher for cash. Similarly, in section 8 housing, families with this voucher can only use the voucher to pay a portion of their living costs in specified units or in a private sector. In a budget constraint between ‘all other goods’ and a ‘voucher good’ our budget constraint will shift out parallel to an amount equal to the amount of the voucher but the money we have to spend on ‘all other goods’ remains capped at the same amount we had to spend before the voucher. Voucher programs can make us worse off because of the cap on our ability to spend on ‘all other goods’ our indifference curves could limit us.

Direct Cash This is straight cash with no restrictions on how it can be consumed. Direct cash causes a bigger budget constraint because the can spend that cash subsidy on all ‘other goods’ or on a ‘subsidized good’. Direct cash increases the entire budget constraint and shifts our indifference curves outward allowing us to maximize our utility.

http://en.wikipedia.org/wiki/Welfare

The Census income distribution figures are the foundation of most class-warfare rhetoric. On the surface, these figures show a high level of inequality: The top fifth of households have $14.30 of income for every $1.00 at the bottom.

However, these figures are flawed by the exclusion of taxes and social safety net spending and by the fact that the "fifths" do not contain equal numbers of people. Adjustment for these factors radically alters the picture of income distribution: The top fifth of the population has $4.21 of income for every $1.00 at the bottom.

The remaining inequality in society is heavily influenced by the lack of work at the bottom. If working-age adults in the lower quintiles worked as much as their higher-income counterparts, the income disparity of the top to the bottom quintiles would fall to $2.91 to $1.00.
Still, the top fifth of U.S. households (with incomes above $84,000) remain perennial targets of class-warfare enmity. These families, however, perform a third of all labor in the economy. They contain the best educated and most productive workers, and they provide a disproportionate share of the investment needed to create jobs and spur economic growth. Nearly all are married-couple families, many with two or more earners. Far from shirking the tax burden, these families pay 82.5 percent of total federal income taxes and two-thirds of federal taxes overall. By contrast, the bottom quintile pays 1.1 percent of total federal taxes.12

In one sense, John Edwards is correct: There is one America that works a lot and pays a lot in taxes, and there is another America that works less and pays little. However, the reality is the opposite of what Edwards suggests. It is the higher-income families who work a lot and pay nearly all the taxes. Raising taxes even higher on hard-working families would be unfair and, by reducing future investments, would reduce economic growth, harming all Americans in the long run.

http://www.heritage.org/research/reports/2004/08/two-americas-one-rich-one-poor-understanding-income-inequality-in-the-united-states

Sunday, July 24, 2011

Democrats are allowing Medicare to go bankrupt within the next decade

Bankruptcy vs. Prosperity: Comparing the Democratic & Republican Medicare Plans
Posted by Don Seymour on May 24, 2011

http://www.speaker.gov/Blog/?postid=242716
Been hearing a lot about Medicare lately? Here’s a handy chart comparing the Republican plan – “The Path to Prosperity” – that protects Medicare for current retirees and future generations (while spurring private-sector job growth and stopping Washington from spending money it doesn’t have) with the Democratic “plan” to do nothing, leaving Medicare bankrupt and seniors facing drastic benefit cuts:

http://www.ssa.gov/oact/trsum/index.html

A SUMMARY OF THE 2011 ANNUAL SOCIAL SECURITY
AND MEDICARE TRUST FUND REPORTS
Projected long-range costs for both Medicare and Social Security are not sustainable under currently scheduled financing and will require legislative corrections if disruptive consequences for beneficiaries and taxpayers are to be avoided. If action is taken sooner rather than later, more options and time will be available to phase in changes, giving those affected adequate time to prepare. Earlier action will also afford policymakers greater opportunity to minimize adverse impacts on vulnerable populations, including lower-income workers and those who are substantially dependent on program benefits.

http://www.cbpp.org/cms/index.cfm?fa=view&id=2122
The Congressional Budget Office's new report on the federal budget confirms that the surplus is considerably smaller than previously assumed and that, in some years, the budget outside Social Security will be in deficit. CBO now shows a total surplus between 2002 and 2011 that is $2.2 trillion less than it estimated in May; about three-quarters of this decline was caused by the impact of the recently enacted tax-cut package. These CBO estimates are less rosy than those released by the Administration last week as part of its Mid-Session Review.

Unlike the Administration, CBO shows a deficit in the budget outside of the Social Security trust fund in 2001, 2003, and 2004.
Over the ten years between 2002 and 2011, CBO is projecting a non-Social Security surplus that is about $460 billion smaller than the Administration's estimate.

Democrats' Plan: Benefit Cuts & Bankruptcy
WHICH PLAN LEAVES MEDICARE BANKRUPT? By doing nothing, Democrats are allowing Medicare to go bankrupt within the next decade.

“The new Medicare trustees report says the trust fund is now likely to run out of money in 2024, five years earlier than predicted last year.” (Medicare to run out of money five years sooner, trustees say, Politico, 5/13/11)
“Medicare is headed for bankruptcy faster than expected. ... Instead of getting serious, the Democrats are falling back on political scare tactics. … Neither the president nor the congressional Democrats has offered any alternative plan to save Medicare.” (Democrats demagogue Medicare, Washington Times, 5/15/11)
“Those who disagree with Ryan's Medicare prescription haven't offered credible alternatives. And this much is clear: Ryan's plan is much better than the status quo, which will result in Medicare going bankrupt.” (Don’t let Medicare go bankrupt, Wisconsin State Journal, 5/23/11)
The Republican plan lifts the burden of debt that threatens jobs while preserving Medicare for current seniors & future retirees.

“[T]the Obama health law, passed by Democrats last year, already eviscerated Medicare. … Rep. Paul Ryan's entitlement-reform vision … would undo much of the damage, while charting a new course to ensure Medicare doesn't run out of money.” (Who ended 'Medicare as we know it'?, New York Post, 5/24/11)
“Ryan’s brilliant plan also harnesses the competition and innovation of the free market to provide better coverage for seniors at lower cost.” (Why Paul Ryan’s Medicare Is So Much Better Than Obama’s, Forbes, 4/28/11)
“The plan crafted by House Budget Chairman Paul Ryan, Wisconsin Republican, would shore up the system so that it doesn’t bankrupt the country.” (Democrats demagogue Medicare, Washington Times, 5/15/11)

WHICH PLAN CUTS BENEFITS & RATIONS CARE FOR SENIORS? Democrats’ ObamaCare law created a “rationing board” that will lead to “the political rationing of care for the elderly” by unelected bureaucrats.

“If the trust funds run out, the programs no longer would be able to pay full benefits. … Medicare could pay 90% starting in 2024, dropping to 75% in 2045.” (Medicare, Social Security running out of money faster, USA Today, 5/13/11)
“The Democrats Medicare plan contains drastic cuts to doctor payments that will make it next to impossible for Medicare beneficiaries to actually obtain health care coverage.” (Democrats' Medicare plan bankrupts 25% of all hospitals by 2030, Washington Examiner, 5/23/11)
“The fact of the matter is that IPAB won’t make the notoriously inefficient Medicare program any more efficient. Through arbitrary reductions on payments to providers, it will simply reduce the supply of care.” (The Road to IPAB, National Review, 4/19/11)
Under the GOP plan, there are no changes and no disruptions for Americans over the age of 55.

“Medicare is speeding off a fiscal cliff. Ryan's plan slows that momentum, starting in 2022. Anyone 55 or over today would not be affected. These Americans are either retired or have planned for a retirement with traditional Medicare benefits.” (Don't play Mediscare, Chicago Tribune, 4/12/11)
“Ryan is trying to fix Medicare's unsustainable financial path so its benefits are still available to younger Americans when they retire decades from now.” (Don’t let Medicare go bankrupt, Wisconsin State Journal, 5/23/11)
“More would be paid as well for those who were sicker so that plans could finance their more expensive care.” (Why Paul Ryan’s Medicare Is So Much Better Than Obama’s, Forbes, 4/28/11)

WHICH PLAN SAVES MEDICARE? Democrats are spending their time attacking Republicans for one reason: the Democrats’ Medicare plan means bankruptcy and benefit cuts.

“[A]s the Centers for Medicare and Medicaid Services (CMS) detailed in a report released Friday, under the Democrats plan, Medicare ‘as we know it’ won’t be around for much longer.” (Democrats' Medicare plan bankrupts 25% of all hospitals by 2030, Washington Examiner, 5/23/11)
“[T]he Democratic ‘plan’ for Medicare — to leave things as they are — is even worse than it seems on the surface. … It’s not the House Republican Budget that is undoing it, it’s the current structure of the program, exacerbated by Obamacare.” (Re: Dems on Medicare, National Review, 5/9/11)
The Republican plan saves Medicare for current and future generations while making no changes for those in and near retirement.

“The only plan that saves ‘Medicare as we know it’ for today’s seniors is Ryan’s Path to Prosperity.” (Democrats' Medicare plan bankrupts 25% of all hospitals by 2030, Washington Examiner, 5/23/11)

“This budget's reforms will protect health and retirement security. This starts with saving Medicare. ... Reform that empowers individuals—with more help for the poor and the sick—will guarantee that Medicare can fulfill the promise of health security for America's seniors.” (The GOP Path to Prosperity

http://rsc.jordan.house.gov/Solutions/debtceiling.htm
RSC Cut, Cap, and Balance Proposal (June 2011)

103 House Republicans sent a letter to House Republican leadership calling for a solution that could resolve the current debt limit impasse and prevent the bigger, Greece-like debt crisis just over the horizon: Cut, Cap, and Balance.

1. Cut - We must make discretionary and mandatory spending reductions that would cut the deficit in half next year.

2. Cap - We need statutory, enforceable caps to align federal spending with average revenues at 18% of Gross Domestic Product (GDP), with automatic spending reductions if the caps are breached.

3. Balance - We must send to the states a Balanced Budget Amendment (BBA) with strong protections against federal tax increases and a Spending Limitation Amendment (SLA) that aligns spending with average revenues as described above.

With each passing day our nation’s fiscal health gets worse, leaving our children and grandchildren falling further into debt. Democrats seem to have given up, proposing even more borrowing in response to our massive debt addiction. With the problem growing larger every day, we must move quickly and unite behind a plan to cut spending and get our budget into balance.

Monday, July 18, 2011

America needs a Balanced Budget Amendment



The Drudge Report Tuesday morning cheekily linked to an official White House transcript of President Obama's remarks from a fundraiser the night before, which noted the audience laughing at his jobs claims.


"Over the last 15 months we’ve created over 2.1 million private sector jobs. (Laughter.)" said Obama per the transcript, emailed to reporters Monday night at around 11:30 p.m.

It did seem a little strange -- because why would Obama supporters laugh at job creation? But the matter prompted some informal wagering within the press corps on the over-under for how long it would take the White House to put an end to the laughter -- especially after the link appeared at the top of the heavily trafficked Drudge site.

At 4:04 p.m. on Tuesday, the corrected transcript appeared: Laughter changed to applause, and noted with an asterisk. The White House declined comment on the record.

40,000 people unemployed in Allentown are not laughing.

The Impact of Growing Deficits and Debt
CBO’s projections in most of the 2011 Long-Term Budget Outlook understate the
severity of the long-term budget problem because they do not incorporate the negative
effects that additional federal debt would have on the economy, nor do they
include the impact of higher tax rates on people’s incentives to work and save. In particular,large budget deficits and growing debt would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment—which in turn would lower income growth in the United States.

Taking those effects into account, CBO estimates that under the extended-baseline scenario, real (inflation-adjusted) gross national product (GNP) would be reduced slightly by 2025 and by as much as 2 percent by 2035, compared with what it would be under the stable economic environment that underlies most of the projections in the report released yesterday.4 Under the alternative fiscal scenario, real GNP would be 2 percent to 6 percent lower in 2025, and 7 percent to 18 percent lower in 2035, than under a stable economic environment.

Rising levels of debt also would have other negative consequences that are not incorporated in those estimated effects on output: B Higher levels of debt imply higher interest payments on that debt, which would eventually require either higher taxes or a reduction in government benefits and services. Rising debt would increasingly restrict policymakers’ ability to use tax and spending policies to respond to unexpected challenges, such as economic downturns or financial crises. As a result, the effects of such developments on the economy and people’s well-being could be worse.

GNP differs from GDP primarily by including the capital income that residents earn from investments abroad and excluding the capital income that nonresidents earn from domestic investment.
http://www.cbo.gov/ftpdocs/122xx/doc12253/06-23-LTBOTestimony.pdf

Mitt Romney uses closed Allentown Business to hit Obama

(Rich Schultz/AP)June 30, 2011By Scott Kraus The Morning CallStanding in front of a chain link fence ringing a now boarded-up metal factory Barack Obama visited in 2009 to tout the economic stimulus, Republican presidential frontrunner Mitt Romney said the president means well, but simply lacks the knowledge to fix the economy.

“This president came here and called this a symbol of hope,” Romney said, standing before the overgrown lot dressed in jeans and a plaid shirt. “It is a symbol of failure, failure of his economic policy. He’s out of his depth. When it comes to getting the economy going, it’s just not something he understands.”

How is that Hope and Change Working For You....

Do not raise the Debt Ceiling

http://biggovernment.com/sberry/2011/02/21/connecticuts-governor-to-taxpayers-youre-still-not-sacrificing-enough/
by Dr. Susan Berry

On Wednesday, Connecticut’s new governor, Democrat Dannel Malloy, presented his
first budget, one that includes a $1.5 billion tax hike in the first year and only slightly less in the second year of the two-year cycle. The tax increase is one of the largest in the state’s history, and one that will hit, primarily, middle class families. The governor hopes to raise income taxes, the state sales tax, and taxes on cigarettes, gasoline, alcohol, and estates. Malloy’s budget would eliminate a $500 property tax credit, a “tax-free” shopping week prior to school’s opening, and a sales tax exemption for clothing, haircuts, pet grooming, non-prescription drugs, car washes, and many other items and services. The governor and his advisers are referring to this tax hike as “shared sacrifice” in a state that is already one of the highest taxed in the nation.

With the highest per capita debt in the nation, Connecticut shares only with the state of Michigan the distinction of having no job growth over the past 20 years. The projected budget deficit next year is approximately $3.5 billion. Yet, Malloy’s budget would provide a $1700 earned income tax credit for those making less than $21,500 per year (those who pay little, if any, taxes), and would allow both an increase in overall spending by 2.4% and $1 billion in borrowing in each of the next two years. The governor calls this budget “putting Connecticut’s house in order.”

The governor says he wants to cut $750 million from various state programs next year, and will ask the state’s employees to give up $2 billion in salary and union concessions over a two-year period. What is missing, however, are the details of the concessions unions will make as well as some of his proposed budget reductions. When a governor is so detailed about tax increases but provides little information about spending cuts and union concessions, one can only suspect that he will be relying on tax payers to meet his ends.

In fact, John Olsen, president of the Connecticut AFL-CIO, said that the governor’s $1.5 billion tax hike had to go higher. State employees spokesman, Larry Dorman, also responded to Malloy’s suggestion of union concessions, saying that Connecticut has a revenue problem, not a spending one.

The unions were big supporters of Malloy’s campaign. When he secured the endorsement of CSEA/SEIU Local 2001, union president Catherine Osten said Malloy would be a “once in a lifetime” governor for them. Clearly, this incestuous relationship suggests Malloy will not be as tough on the unions as he is on taxpayers. It also suggests the likelihood of even more businesses, and families, leaving the state.

While most states, regardless of the party of the leadership, are realizing that the notion of endless government spending, courtesy of taxpayers, is nothing more than a fantasy, Connecticut seems poised to join the ranks of California and Illinois- the few states that are still in the grips of power-hungry union leaders, who continue to dangle now imaginary carrots in front of sheep-like followers. The leaders of these states are using the usual liberal guilt trip of “shared sacrifice” to extricate more funds from citizens who are already sharply cutting expenses from their household budgets. It’s time for these states to stop their finger-wagging at taxpayers and learn from those leaders who are demonstrating that they are prepared for the hard work of governing.

California is borrowing $40 million a day from the federal government to pay unemployment benefits.

The Los Angeles Times reports the state will have a $362 million bill for interest alone due on a total debt of $10 billion next fall.

California is an economic disaster zone, with one in every eight workers unemployed. More than 1.2 million Californians have lost their jobs.

Monday, June 20, 2011Calif. Business Departures Increasing --
Now Five Times Higher Than In 2009
Today, California is experiencing the fastest rate of disinvestment events based on public domain information, closure notices to the state, and information from affected employees in the three years since a specialized tracking system was put into place.

Out-of-state economic development officials are traveling through the state to alert frustrated business owners and corporate executives to their friendlier business climate versus California's hostility toward commercial enterprises.


From Jan. 1 of this year through this morning, June 16, we have had 129 disinvestment events occur, an average of 5.4 per week.
For all of last year, we saw an average of 3.9 events per week.
Comparing this year thus far with 2009, when the total was 51 events, essentially averaging 1 per week, our rate today is more than 5 times what it was then.
The same tracking system has been in place throughout the three-year period.

Our losses are occurring at an accelerated rate. Also, no one knows the real level of activity because smaller companies are not required to file layoff notices with the state. A conservative estimate is that only 1 out of 5 company departures becomes public knowledge, which means California may suffer more than 1,000 disinvestment events this year. The capital directed to out-of-state or out-of-country, while difficult to calculate, is nonetheless in the billions of dollars.



The top five destinations are (1) Texas, (2) Arizona, (3) Colorado, (4) Nevada and Utah tied; and (5) Virginia and North Carolina tied.


Based on the legislature’s recent rejection of business-friendly legislation and Sacramento’s implementation of additional regulations, signs are that California’s hostility towards business will only worsen.

California is such fertile ground that representatives for economic development agencies are visiting companies to dissect our high taxes, extreme regulatory environment and other expenses to show annual savings of between 20 and 40 percent after an out-of-state move.

Officials from 14 states are making such presentations, namely: Arizona, Colorado, Florida, Georgia, Indiana, Louisiana, Nevada, North Carolina, Pennsylvania, South Carolina, Texas, Utah and Virginia – and Ohio is soon to be packing their bags for visits here. These are only the ones I know about; there may be others. Even the states that aren’t visiting are emailing, calling and sending letters to solicit California companies to move outright or select an out-of-state location when expanding.



Here is the latest list of events:



Calif. 2011 Disinvestment Event #129
WayIn LLC
Out-of-State Location: Colorado (perhaps Denver)
California Community: Silicon Valley
California County: Santa Clara
Information: Sun Microsystems co-founder and ex-CEO Scott McNealy has a new startup, WayIn LLC. Silicon Valley Biz Blog reported that "Thanks to [McNealy's] Twitter feed, we know the company [will] be headquartered in Colorado. Wait, what? Colorado? What happened to Silicon Valley?" McNealy "explained his reasoning, tweeting a Top 10 Reasons it's Better to do a Startup in Colorado than California:
10. Rocky Mountain powder beats Tahoe bunny slopes.
9. 11% income tax in CA vs. a 4.63% flat rate in CO
8. CO is a safer distance from Sacramento (but it is closer to DC...)
7. $1.5 million buys a dump in Silicon Valley, a ranch in CO.
6. In CO, the water is from CO. In CA, the water is from CO.
5. In CO, a traffic jam still moves, but the earth does not.
4. From CO, the redeye to New York is only half as bad.
3. In CO, I can hit my drives 300+ yards again
2. LoDo, CO has better views than Mountain View, CA [LoDo stands for Denver's Lower Downtown]
1. WayIn is HQ'd in CO, home of our CEO @TomJessiman and a great team.
Obviously, he's not being entirely serious with this list, but there's some legitimate gripes in there as well."
Source: Silicon Valley BizBlog June 16, 2011 story, "Sun founder Scott McNealy shuns Silicon Valley for startup."
More Information: TechCrunch reported that Scott McNealy "has raised close to $6.4 million in financing for one of his new ventures, stealth startup WayIn , an SEC filing reveals."
Source: TechCrunch, June 7, 2011 story, "Sun Co-Founder Scott McNealy Raises $6.4 Million For Stealth Startup WayIn."
Type of Event: (CD-OSG)

***


Calif. 2011 Disinvestment Event #128

Aero Fluid Products
Out-of-State Location: Dispersed
California Community Facility: Simi Valley
California County: Ventura
Information: The Ventura County Star reported that the company will close its facility in October, eliminating 82 jobs, adding: "The aerospace and design manufacturer is a division of the AeroControlex Group and a subsidiary of Cleveland-based TransDigm Group Inc., which acquired the company's previous owner, Telair International Inc., late last year. When the acquisition happened, the city was led to believe that everything would remain in place in Simi Valley, said [a local official, but] the new owner changed its mind and decided to absorb the manufacturing unit into existing facilities outside the area."
Source: Ventura County Star, May 27, 2011 story, "Aerospace manufacturer plans to leave Simi Valley." Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #127

Allegro Industries
Out-of-State Location: Anderson, South Carolina
California Community HQ or Facility: Garden Grove
California County: Orange
Information: In May the company announced plans to move to South Carolina to accommodate the company’s significant growth. The new 50,000 square foot custom-built facility in the Greenville, SC area will improve manufacturing capabilities and overall service. The move will occur in stages from October 2011 to January 2012, with key management relocating in the first stage. “We’ve been in Southern California for 24 years and we’re incredibly grateful to the communities and to the employees who have been part of the Allegro family from the beginning,” says Tom Johnston, President. “The move to South Carolina will allow us to keep pace with our growth and continue to exceed our customers’ expectations everyday.”
Source: Company announcement, May 12, 2011, "Allegro Industries Moves to South Carolina to Accommodate Continued Growth and Expansion."
More Information: The safety-products company will put forward an initial capital investment of $1.65 million, which will create 45 new jobs.
Source: Anderson County Economic Development news release, May, 2, 2011, "Allegro Industries Announces New Facility in Anderson County."
More Information: According to the Anderson Independent Mail, "The plant that Allegro Industries plans to have built in Upstate South Carolina will be the safety-products company’s new headquarters .... 'They are bringing their whole operation to our region,' said Burriss Nelson, Anderson County’s economic development director .... Anderson County Council member Cindy Wilson, said Anderson County should 'raid California some more.'"
Source: Anderson Independent Mail story, May 3, 2011, "Anderson County Council approves incentives for Allegro Industries."
Type of Event: (RELO-OSR)


***


Calif. 2011 Disinvestment Event #126

Altera Corp.
Out-of-State Location: Austin, Texas
California Community HQ or Facility: San Jose
California County: Santa Clara
Information: The San Jose Business Journal reported that "Veteran San Jose-based chipmaker Altera Corp. is preparing to open an Austin research and development center that will employ between 200 and 300 people .... The company develops customizable chips used most for equipment in communications, industrial, broadcast, computer and storage, medical and other markets. 'We looked all over the world, but nowhere really compared to Austin, in terms of engineering talent,' Altera spokesman Steve Gabriel said." Officials are in the final stages of leasing in Southwest Austin and should open sometime in the next two months.
Source: San Jose Business Journal May, 6, 2011 story, "San Jose chipmaker opening Austin R&D center."
More Information: "Bradley Howe of Altera Corporation said the area's talent pool and overall environment 'is a good fit for us as we continue to grow.'"
Source: Area Development Online News Desk, May 13, 2011, "Three California Firms Announce Plans to Join Austin’s Tech Sector."
Type of Event: (CD-OSG)


***


Calif. 2011 Disinvestment Event #125

Altron, Inc.
Out-of-State Location: Unknown
California Community Facility: Laguna Niguel
California County: Orange
Information: According to a notice filed with the state, the company has closed its Laguna Niguel facility, laying off 74 people in mid-January. The company's "About Us" website page shows addresses for its South Carolina headquarters and for offices in Virginia and New Hampshire; it does not show a California office. No other information about the closure appears to be posted online.
Source: WARN Notice. (pdf)
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #124

Amiad USA

Out-of-State Location: Mooresville, North Carolina
California Community HQ or Facility: Oxnard
California County: Ventura
Information: The Charlotte Business Journal reported that Amiad USA will move its HQ to Mooresville where it "also will be combined with an existing Mooresville business, PEP Filters/Arkal Filtration Systems, which is Israeli owned." Amiad USA has been based in Oxnard for 20 years. Reportedly, some California employees will relocate.
Source: Charlotte Business Journal, May 26, 2011 story, "Amiad USA consolidating to Mooresville."
Type of Event: (RELO-OSR)


***


Calif. 2011 Disinvestment Event #123

Aptera Motors, Inc.

Out-of-State Location: Unknown - Likely east of the Mississippi River
California Community HQ or Facility: Oceanside
California County: San Diego
Information: In an article about the "green" company, the North County Times reported that Aptera, "which once had big plans to hire thousands to design and manufacture ultra-efficient cars in Oceanside, is trimming costs by moving its headquarters to Carlsbad while it searches for a factory in the auto-rich region east of the Mississippi River. 'We are really scrutinizing our business,' said Paul B. Wilbur, president and chief executive of Aptera Motors .... Aptera employs about 50 people, but could see its workforce grow to a "couple hundred" by later this year ---- far short of the 500 at corporate headquarters and the many thousands that it originally envisioned as part of an auto manufacturing hub in Oceanside. Wilbur said that California economic officials did little to offer an attractive package of tax abatements, incentives and other carrots to keep Aptera's manufacturing in the state. 'Economically, it's just more affordable to build elsewhere. The numbers were never big enough for me to ever write them down,' he said of Aptera's courtship of California. 'We have states calling us to actually compete for the manufacturing,' Wilbur said. 'They are offering us tens of millions of dollars to come into their state. It is hard to turn them down.' Wilbur said Aptera is likely to end up in a factory east of the Mississippi River .... Wilbur had previously said that Aptera would eventually employ 2,500 people. He also said 10,000 jobs would be created indirectly for component suppliers, retailers and other companies involved with Aptera.
Source: North County Times story, May 17, 2011, "Manufacturing: Aptera to move headquarters to Carlsbad, place car factory out of state."
Type of Event: (CD-OSG)


***


Calif. 2011 Disinvestment Event #122

B & H Flowers

Out-of-State Location: Dispersed
California Community HQ or Facility: Carpinteria
California County: Santa Barbara
Information: The Wall Street Journal reported that the 140-worker company, which ships flowers to florists and grocery stores, "is in the process of closing its only remote nursery operation located about three hours north of its headquarters outside Santa Barbara, Calif., while it scales back to focus on only its most-profitable blooms .... the company plans to keep operating, despite the bank’s pressure to liquidate."
Source: Wall Street Journal, June 7, 2011 story, "California Grower to Trim Operations in Chapter 11."
Additional Information: As of June 7, there is no published WARN Notice that B & H will furlough any employees, an indication of why it's sometimes misleading to rely only upon WARN Notices to anticipate facility closings.
Type of Event: (CLOSURE)


***


Calif. Co. Disinvestment Event #121

Bayer HealthCare
Out-of-State Location: Germany
California Community Facility: Emeryville
California County: Alameda
Information: The Contra Costa Times reported that Bayer HealthCare "will wind down its multiple sclerosis drug production in Emeryville, resulting in the loss of about 540 jobs starting next year and the vacating of more than 300,000 square feet of office space. The move will result in the company's multiple sclerosis drug, Betaseron, being moved to Germany. It eventually will be produced entirely under contract by pharmaceutical giant Boehringer Ingelheim, which currently makes the drug for overseas use. Bayer HealthCare's sales of the drug topped $1.6 billion last year .... 'I'm not surprised at all, because at the end of the day, it's about being as efficient as possible for these companies,' said John McCamant, editor of the Medical Technology Stockletter in Berkeley. 'We see moves like this all the time as companies try to stay competitive.' ... Bayer is Emeryville's third-largest employer. Based on 2010 employment, Pixar is first with 1,200 employees; Novartis is second with 797."
Source: Contra Costa Times May 26, 2011 story, "Bayer to cut 540 jobs in Emeryville."
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #120

Biogen Idec
Out-of-State Location: North Carolina
California Community Facility: San Diego
California County: San Diego
Information: According to a WARN notice filed with the state, the company has closed its facility and furloughed 327 workers beginning on Jan. 10 and ending on March 31, 2011. The San Diego Union-Tribune reported that Cambridge, Mass-based Biogen merged with Idec Pharmaceuticals in 2003, but now, "just seven years after closing the $6.8 billion deal," Biogen said it would plans to "shut down its San Diego research and corporate campus, which focused on cancer drug development, and lay off most of its San Diego employees."
Source: San Diego Union-Tribune, Nov. 4, 2010 story, "‘It’s Happened Before:’ Biz Leaders React to Biogen Idec’s San Diego Shutdown."
More Information: It appears that some of the work is being transferred to North Carolina. The Raleigh News & Observer reported that Biogen Idec is expanding its Research Triangle Park campus and will build a 180,000-square-foot building, adding: "It will include a five-story administrative office wing and amenities such as a cafeteria, an auditorium and conference rooms. The new space will give Biogen 's nearly 850 existing employees more room, allow the company to leave some leased offices and could lead to additional hiring. 'We're confident we will see job growth in RTP,' although it's too soon to provide specific numbers,'" said a company spokesman. "Biogen is just one of several drug companies that are expanding in this area, creating jobs and attracting attention to the Triangle as a hotspot for pharmaceutical research and manufacturing."
Source: Raleigh News & Observer, April 26, 2011 story (available through NewsBank; subscription required).
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #119

Blues Review

Out-of-State Location: Bradenton, Florida
California Community HQ or Facility: Nipomo
California County: San Luis Obispo
Information: The Bradenton Herald reported that "Blues Revue, one of the music genre’s most-read magazines, is moving its headquarters from California to the Village of the Arts [and] the managers plan far more than an office -- the site will also function as a gallery and a live music venue. 'The key reason we came here is the blues scene in Florida is so vibrant,'" said a company spokesman. "Blues Revue sponsors numerous festivals nationwide, including the annual Tampa Bay Blues Festival, dating back to when it launched in 1995 .... The magazine will continue to be printed by Dartmouth Printing Company in New Hampshire .... Blues Revue will have an open house Aug. 5 that will feature live music outside. Concerts will then continue to be held there during the ArtWalks that take place the first weekend of every month on Friday evenings and Saturdays." The publication has subscribers in 55 countries and is on newsstands in 21 countries.
Source: Bradenton.com story, June 11, 2011, "Famed Blues Revue magazine HQ moves to Village of the Arts."
Type of Event: (RELO-OSR)


***


Calif. Disinvestment Event #118

Calisolar Inc.
Out-of-State Location: Community of Ontario, Ohio
California Community: Sunnyvale
California County: Santa Clara
Information: Calisolar Inc., a "green" company, is making a $750 million investment in Ontario, Ohio (an event that sometimes becomes confusing in news reports because the company also has a plant in the province of Ontario, Canada). Construction is expected to begin by October at a former General Motors plant. The Bucyrus Telegraph Forum reported that the company "would create 831 full-time positions at an average wage of $45,000, generating $37.3 million in annual payroll" with priority given to hiring local workers. Also, "About 1,000 construction jobs will be needed to ready the former GM plant" that will "marry an industrial process into a green energy solar sector .... Materials coming out of the Ontario facility could be used in Sunnyvale, Calif., by other solar industry companies .... with a spokesperson saying, 'We have major, major global customers lining up to enter into purchase arrangements for this material. This is not an Ohio company. This is not a United States company. This is a global company. This material will be shipped and consumed all over the world. Obviously, some of it will be consumed in the United States, but a sizable percentage -- if not the majority (of the raw materials) -- will be exported.' .... The site selection was an international effort, narrowed to 10 sites overseas and in the United States."
Source: Bucyrus Telegraph Forum April 6, 2011 story "Calisolar in final stages of talks for Ontario site."
Additional Information: The Mansfield News-Journal on June 14, 2011 reported that a final agreement could be reached in the next week or two.
Source: "8-minute meeting brings Calisolar miles closer to Ontario."
More Information: Calisolar has received a $275 million conditional loan guarantee from the U.S. Department of Energy to help build its solar products manufacturing facility in Ontario, Ohio.
Source: Mansfield News Journal, June 16, 2011 story, "Calisolar gets $275M loan guarantee, with strings."
UPDATE: News broke on July 1, 2010 that Calisolar will not build its plant in Ontario, Ohio. The subheadline summarizes the situation: "President: Company can't meet construction deadline for loan at former GM plant."
Source: "Calisolar says it's not coming to Ontario."
(Waiting for further developments prior to determining what to do with this entry.)
Type of Event: (CD-OSG)


***


Calif. 2011 Disinvestment Event #117

CGI Federal Inc.
Out-of-State Location: Dispersed
California Community Facility: Laguna Niguel
California County: Orange
Information: A notice to the state indicated that the company closed the facility, ending 170 jobs on April 15, 2011. It doesn't appear that other information about the closure can be found online.
Source: WARN Notice. (pdf)
Additional Information: The company's "U.S. Office" listing fails to show a facility in Laguna Niguel.
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #116

Chesapeake Bay Candle
Out-of-State Location: Glen Burnie, Maryland
California Community HQ or Facility: Unknown
California County: Unknown
Information: The Washington Business Journal reported that the company, in experiencing manufacturing difficulties in China and Vietnam, began searching for sites in California but "chose Maryland because of its closeness to her home base, sales team and the Port of Baltimore. The plant’s eventual move to the U.S. will also help expand the company’s business selling candles in boutiques in China, where American-made products, ironically, are more desired." Once in operation, the company hopes to expand beyond the factory’s initial 80 to 100 workers.
Source: Washington Business Journal story, Dec. 3, 2010, "Chesapeake Bay Candle's opening delayed by numerous snags."
More Information: The company's "Our Story" web page states that the Maryland grand opening ceremony is planned for June 28, 2011.
Type of Event: (U-TURN)


***


Calif. 2011 Disinvestment Event #115

Consolidated Container Company
Out-of-State Location: Dispersed
California Community Facility: Santa Fe Springs
California County: Los Angeles
Information: According to a notice filed with the state, the company furloughed 77 people on May 23, 2011 and listed the event as a "closure."
Source: WARN Notice (pdf).
Additional Information: Consolidated Container Company (CCC) announced in January that it was acquiring all of the blow molding assets of West Coast Plastics Inc. in Santa Fe Springs, stating, that West Coast Plastics "will continue to operate its injection-molding business." CCC operates 62 manufacturing facilities nationally, an R&D center in Atlanta and two manufacturing plants in Mexico.
Source: Company news release, Jan. 25, 2011, "CCC to Acquire Blow Molding Assets of West Coast Plastics." (pdf)
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #114

Convoke Systems
Out-of-State Location: Arlington, Virginia
California Community HQ: San Francisco
California County: San Francisco
Information: The company relocated its corporate HQ to Northern Virginia effective May 1 while maintaining an office in San Francisco for engineering and product personnel. Convoke Systems provides media (document) mobility and chain of title tracking solutions for the financial services and accounts receivable management (ARM) industries.
Source: Company news release, May 2, 2011, "Convoke Systems Announces Corporate Headquarters Move and Additional Office (pdf)."
Type of Event: (RELO-OSR)


***


Calif. 2011 Disinvestment Event #113

Design Within Reach

Out-of-State Location: Stamford, Connecticut
California Community HQ: San Francisco
California County: San Francisco
Information: Design Within Reach made a cross-continental move of its corporate headquarters.
Source: The Commercial Observer, May 10, 2011 story, "Stirrings in the Burbs: Beyond City Limits, Green Shoots Here and There."
More Information: The home-furnishing company moved into a 28,000 square feet facility at an estimated cost of about $5 million, which is "housing about 60 office and staff employees [in] Stamford , and it plans to add 15 to 20 more jobs in the next few months .... 'We are strong believers in adaptive re-use of older buildings,' said [COO John McPhee]. 'Our first studio in San Francisco is housed in a former liquor warehouse that was one of the few buildings to survive the 1906 earthquake and fire .... We believe that there is a true renaissance beginning in the south end of Stamford .'"
Source: Connecticut Post, Dec. 21, 2010 story, "JCS Construction to direct remodel." (Story accessible through NewsBank; subscription required.)
Type of Event: (RELO-OSR)


***


Calif. 2011 Disinvestment Event #112

Diageo

Out-of-State Location: Dispersed
California Community HQ or Facility: Menlo Park
California County: San Mateo
Information: The Palo Also Daily News reported that "More than 150 people will lose their jobs next month when a large alcohol bottling facility that has operated in Menlo Park for more than 50 years shuts its doors. Diageo, a major United Kingdom-based alcohol producer that sells well-known brands such as Guinness, Smirnoff, Johnnie Walker and Captain Morgan, plans to close the facility ... on July 31 .... [the company] decided to close the Menlo Park facility "as part of a recent strategic review" of company operations" The facility was opened by the now-defunct Heublein Inc. company in the mid-1950s.
Source: MercuryNews.com story, June 11, 2011, "Menlo Park alcohol bottling plant to shut down next month."
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #111

Fallbrook Technologies Inc.

Out-of-State Location: Cedar Park, Texas
California HQ: San Diego
California County: San Diego
Information: The Austin American-Statesman reports that Fallbrook Technologies Inc., a company offering "green" technology improvements, which "has run its operations division from Cedar Park since 2002 , would agree to spend $5.5 million on a larger corporate operations center that would add at least 65 jobs by 2013 .... The company would use it for light manufacturing, engineering development and testing .... Fallbrook currently employs 60 people in Cedar Park .... the company will agree to maintain a combined payroll of $9.5 million by 2019 .... the company has two facilities in Cedar Park, one housing a test lab and a second for design engineers, both of which it has outgrown. "They're both extremely crowded," said a company spokesman. "We're hiring people every month and we're wondering where we're going to put them."
Source: Austin American-Statesman, May 25, 2011 story, "Cedar Park to weigh $1.68 million incentive package for Fallbrook Technologies."
Type of Event: (CD-OSG)


***


Calif. Co. Disinvestment Event #110

Fisher Investments

Out-of-State Location: Camas, Washington
California Community HQ: Woodside
California County: San Mateo
Information: Fisher Investments is building a 120-acre campus in a community near the Columbia River. CEO Ken Fisher has said earlier that that "he's looking to move his corporate headquarters into a friendlier business climate than Woodside, Calif., where the company is currently based."
Source: OregonLive.com June 7, 2011 story, "Ken Fisher: Clark County should bang on corporate doors in California, focus on 'knowledge workers'."
More Information: The Columbian said that "The $30 million campus could become Fisher’s new corporate headquarters" and that it's a "$43 billion advisory asset management firm."
Source: The Columbian, May 25, 2001 story, "Fisher offers fix for local economic woes."
Type of Event: (RELO-OSR) and (CD-OSG)


***


Calif. Co. Disinvestment Event #109

Garda World Security Corp.
Out-of-State Location: Boca Raton, Florida
California Community HQ: Pasadena
California County: Los Angeles
Information: Tallahassee's Sunshine News reported that Garda is moving its U.S. headquarters to Florida, generating 100 jobs in the state "with an average annual wage of more than $65,000 .... Stéphan Crétier, Garda's president and CEO, said he was 'excited to move our U.S. headquarters to Boca Raton, which will provide us the ability to expand in the United States.' ... Cretier said he was 'impressed with the vibrant business climate Florida is seeking to create' .... Garda reportedly was considering a move to Illinois or Delaware .... Those states, as well as California, have significantly higher corporate tax rates than Florida."
Source: Sunshine State News, June 8, 2011 story, "Canadian Security Firm Bringing 100 Jobs to Florida."
Type of Event: (RELO-OSR)


***


Calif. 2011 Disinvestment Event #108

Graham Packaging Company
Out-of-State Location: Dispersed
California Community HQ or Facility: Richmond
California County: Contra Costa
Information: A notice published by the state listed the company's facility in Richmond as a closure that will affect 31 employees on Sept. 1, 2011.
Source: WARN Notice pdf.
More Information: BuildCentral.com reports that Graham Packaging is closing their Richmond plant (the report's details are unknown because it's accessible only through subscription).
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #107

InsuranceLeads.com
Out-of-State Location: Austin, Texas
California Community: North Hollywood
California County: Los Angeles
Information: A notice published by the state listed the company's facility in North Hollywood as a closure that will affect 85 employees on June 30, 2011.
Source: WARN Notice pdf.
Additional Information: The Austin Business Journal reported that the company was purchased by All Web Leads Inc., a "deal that created a combined $100 million-a-year company with the industry’s No. 2 market share .... The deal also means new jobs for Austin down the road. All Web Leads employs about 40 here already. InsuranceLeads.com employs about 100 in California. But All Web Leads will eventually consolidate all of its workers into a single Austin operation to make it easier to manage, [CEO Bill] Daniel said.
Source: Austin Business Journal, Feb. 18, 2001 story, "All Web Leads eyes fast growth."
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #106

Intel
Out-of-State Location: Hillsboro, Oregon
California Community HQ: Santa Clara
California County: Santa Clara
Information: The chip maker is building a $3 billion research facility and factory that is one of the biggest construction projects in Oregon's history. OregonLive.com reported, "Intel's new factory, D1X, is single-handedly boosting the regional economy by reviving Oregon's moribund construction industry" and provides statistics to demonstrate that point: Up to 200,000 cubic yards of concrete; excavation of up to 1 million cubic yards of dirt; use of 45,000 tons of steel and rebar; all of which will utilize 6,000 to 8,000 construction workers over a two-year period. And when it opens in 2013, the factory, or fab in the industry's lingo, will incubate the semiconductor industry's most advanced technology for at least a decade .... Intel builds factories the same way it builds its chips: 'Design it, design it once and then just copy,' says Ravi Sharma Intel's director of global construction. And with Intel's factories, much like its microprocessors, the work always starts in Hillsboro. In a finely honed process called 'copy exactly,' Intel's Oregon researchers perfect each new generation of microprocessor at the company's existing research factory, an 8-year-old fab called D1D. Factories in Arizona, New Mexico, Israel, Ireland and China then duplicate what the Hillsboro engineers created, right down to the air inside the fab, to prevent production mistakes and ensure that every chip performs just like every other. 'D1X is quite unique,' Sharma said, 'from the perspective that we are setting a design for the future fabs at Intel.' ... Work on D1X started in February, and it's already showing up in Portland jobs data. The construction industry, clobbered by the collapse of the housing market during the recession, added 1,000 jobs in the Portland area last month. Those workers will haul away up to a million yards of dirt [and], of that, 150,000 cubic yards are headed just up the road, to SolarWorld's Hillsboro property. That company is contemplating a second factory someday and needs to elevate its property to ensure proper drainage."
Source: OregonLive.com May 28, 2011 story, "Intel goes big to get small -- an early look at its new Hillsboro research factory, D1X."
Type of Event: (CD-OSG)


***


Calif. 2011 Disinvestment Event #105

InteSolv
Out-of-State Location: Austin, Texas
California Community HQ or Facility: Visalia
California County: Tulare
Information: the Austin American-Statesman reports that the software company will open a regional office in that Texas city while keeping its headquarters in Visalia. "The Austin office will focus on software development and technical support for the company, which works with a number of Adobe products. It wasn't clear how many people will work in the new office, but InteSolv is currently looking for .Net developers and content developers in Austin. 'We are thrilled to be here,' said InteSolv senior vice president of business development Frank Rogers. 'To sustain our growth, it was imperative to find a second place for InteSolv to call home and Austin fits us to a 'T.'"
Source: Austin American Statesman story, May 9, 2011, "2 more California companies join migration to Austin."
Type of Event: (CD-OSG)


***


Calif. 2011 Disinvestment Event #104

John B. Sanfilippo & Son. Inc.
Out-of-State Location: In part to Elgin, Illinois
California Community: Modesto
California County: Stanislaus
Information: A notice published by the state listed the company's facility as a closure that affected 19 employees on Jan. 14, 2011.
Source: WARN Notice (pdf).
Additional Information: Vendingmarketwatch.com reported that the company's operating costs fiscal 2011 third quarter gross profit was reduced by $0.7 million for the relocation of the Orchard Valley Harvest facility in Modesto to the Gustine, Calif. and Elgin, Ill. facilities. Source: "John B. Sanfilippo & Son, Inc. Reports Decline In Third Quarter Net."
Type of Event: (CLOSURE)


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Calif. 2011 Disinvestment Event #103

Kairak
Out-of-State Location: Fort Worth, Texas
California Community Facility: Fullerton
California County: Orange
Information: The Orange County Register reported that "Kairak, which manufactures refrigeration systems, is closing its Fullerton plant and moving the work to Texas. Between August and December, 58 people will be laid off, the company said .... Kairak has been in business 45 years ... supplying no-frost commercial refrigeration units to such restaurants as Chili’s, The Cheesecake Factory, BJ’s Restaurant Brewery, Jack in the Box, and El Pollo Loco; and other locations such as Costco delicatessens, Hilton Hotels and Disney theme parks .... It is a division of Illinois Tool Works [ITW], a $15.9 billion diversified industrial manufacturer with 60,000 employees worldwide."
Source: Orange County Register story, June 7, 2011, "O.C. manufacturer to close, move to Texas."
Type of Event: (CLOSURE) and (RELO-OSR)


***


Calif. 2011 Disinvestment Event #102

Kiva Systems Inc.
Out-of-State Location: North Reading, Massachusetts
California Community HQ or Facility: Unknown
California County: Unknown
Information: The Boston Business Journal reports that Kiva Systems Inc. could have manufactured its mobile robots used in e-commerce order fulfillment "in California, where the company was founded .... But the company chose to locate in Massachusetts, and this month completed a major expansion to allow for more production."
Source: Boston Business Journal, May 27, 2011 story, "A manufacturing revival: For some high-tech companies, making products in Massachusetts is making more sense."
More Information: The company reported that it opened it's "new world headquarters on May 24 in North Reading, Massachusetts. Gov. Deval Patrick said, “Kiva is a great story for this region to tell, having relocated its company from Silicon Valley to Massachusetts where they are now manufacturing global exports, and making the Commonwealth internationally competitive in the robotics market.” Note: The company was founded as Distrobot Systems, Inc.
Source: Company news release, May 24, 2011, "Kiva Systems Shows Significant Growth in Massachusetts, Opens New World Headquarters."
Type of Event: (RELO-OSR)


***


Calif. 2011 Disinvestment Event #101

LeMaitre Vascular Inc.
Out-of-State Location: Burlington, Massachusetts
California Community Facility: Laguna Hills
California County: Orange
Information: The company's board has approved closing its manufacturing facility in Laguna Hills and the transfer of related production to Burlington. LeMaitre acquired the factory when it acquired LifeSpan Vascular Graft in November, 2010. The closure is anticipated to occur in Q2 and Q3 2011 and is expected to save $400,000 annually by consolidating all manufacturing under one roof in Massachusetts.
Source: Company news release, May 20, 2011, "LeMaitre to Consolidate California Factory; Also Exiting TAArget/Unifit Business."
Type of Event: (CLOSURE) and (RELO-OSR)


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Calif. 2011 Disinvestment Event #100

Lonely Planet
Out-of-State Location: London, England
California Community HQ or Facility: Oakland
California County: Alameda
Information: A tipster said that Lonely Planet was moving jobs out of Oakland to England. Argophilia.com in a brief story confirmed that "a good portion of its web staff has been given pink slips. The majority of Lonely Planet’s web team is moving to London, while 17 percent will be looking for new jobs."
Source: Argophilia.com story, May 13, 2011, "Lonely Planet Lays Off Chunk of Online Staff."
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #99

Main Street Hub Inc.
Out-of-State Location: Austin, Texas
California Community HQ or Facility: San Francisco
California County: San Francisco
Information: The Austin American-Statesman reports that the company "that specializes in helping businesses manage their image on social media sites is moving to Central Texas. Main Street Hub plans to relocate its headquarters to downtown Austin in June, according to CEO Andrew Allison .... 'We realized as we grew, the cost of doing business in San Francisco would grow, as well,' Allison said. 'Austin really fits our needs on every level.' The company has 12 employees right now" and by year's end, should be up to 50 workers with plans to grow beyond that. "Allison said Main Street Hub looked at a number of cities before settling on Austin because of the city's highly educated workforce, relatively low cost of living and growing tech scene. 'Austin's a destination for people around the country," he said, "and creative people are looking to move there.'
Source: Austin American-Statesman May 6, 2011 story, "Central Texas Digest: Firm that specializes in social media moving headquarters to downtown Austin."
Type of Event: (RELO-OSR)


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Calif. 2011 Disinvestment Event #98

McConnell Cabinets
Out-of-State Location: Dispersed
California Community: City of Industry
California County: Los Angeles
Information: A notice published by the state listed the company's facility as a closure that affected 82 employees on April 1, 2011.
Source: WARN Notice (pdf).
Other Information: Loeb, the Chicago-based auction house, is holding an onsite and online auction "of One of the Largest U.S. Independent Kitchen & Bath Cabinet Manufacturers, Featuring Late Model Woodworking & Finishing Equipment - Over 100 Unit Vehicle Fleet and Rolling Stock!" on June 28-29, 2011.
Source: loebequipment.com announcement, "McConnell Cabinets, Inc. Auction - Onsite & Online."
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #97
Medtronic Diabetes
Out-of-State Location: San Antonio, Texas
California Community Facility: Los Angeles (Northridge)
California County: Los Angeles
Information: The Los Angeles Daily News reported that the company is laying off more than 400 workers in Los Angeles as it shifts its customer service operation to Texas, stating: "A total of 464 positions will be eliminated by October 30, including about 300 customer service jobs being transferred to San Antonio, spokeswoman Amanda Sheldon said. Those call-center employees were offered the chance to relocate [and other employees will remain at the San Fernando Valley site]. "An analysis by the San Antonio Economic Development Foundation said the Medtronic facility will generate more than $750 million annually in economic benefits. Foundation President Mario Hernandez said his city attracted Medtronic through its business-friendly, low-cost reputation. 'They are going to save 30 to 40 percent on all cost factors versus Los Angeles,' he said. 'And (workers) can live very comfortably very near the facility.' San Fernando Valley economic development officials said this is another tough blow for the Valley's middle class."
Source: June 15, 2001 story, "Medtronic Diabetes laying off more than 400 at Northridge site."
Type of Event: (RELO-OSR)


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Calif. 2011 Disinvestment Event #96

Nokia
Out-of-State Location: Unknown
California Community Facility: San Diego
California County: San Diego
Information: Westfair Online reported that "Officials at Nokia headquarters in Espoo, Finland, said approximately 500 jobs will be eliminated in the U.S. as the company reduces its research and development activities at its Nokia Inc. offices in San Diego, Calif., and [in Harrison, NJ]." No further details are known at this time.
Source: Westfair Online May 6, 2011 story, "Global Westchester: one leaving, one stays."
Type of Event: Unable to classify without further information.


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Calif. 2011 Disinvestment Event #95

Oceanside Pole Tomato Sales Inc.
Out-of-State Locations: Dispersed
California Community HQ or Facility: Oceanside
California County: San Diego
Information: The Packer reports that Oceanside Pole Tomato Sales Inc. and its tomato-growing operation, Harry Singh & Sons, Oceanside, closed, stating, "Oceanside Pole shipped about 4.5 million cartons annually .... It will take awhile for other growers to fill the void with new plantings .... water issues, labor availability and transportation costs in Central California could make increasing acreage a challenge .... The company cited costs of labor and water, competition from Mexico, California’s regulatory climate and the fact that it had lost its lease on about 350 acres of land from the U.S. Marine Corps at Camp Pendleton as reasons for its closure. Although the company said ... that it would not be in operation for the 2011 season, [it] indicated that it would 'work diligently and explore all options in our efforts to reorganize and resume farming operations for 2012.' The closure will cost 85 year-round employees their jobs. The company, a fixture in the region for more than 70 years, shipped under the Oceanside Pole and Cal-Tom labels."
Source: The Packer, May 20, 2011 story, "Shippers react to closure of Oceanside Pole Tomato."
Type of Event: (CLOSURE)


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Calif. 2011 Disinvestment Event #94

PETCO Animal Supplies Stores, Inc.
Out-of-State Location: San Antonio, Texas
California Community: San Diego
California County: San Diego
Information: The San Antonio Express reported that the company "will expand its headquarters to San Antonio next year, adding about 400 corporate jobs within three years, the company announced .... Petco will open its Satellite Support Center with about 100 employees, including several top executives, in June [2011] .... Between 40 and 80 employees are expected to move to San Antonio from the company's National Support Center in San Diego. As Petco's employment grows in San Antonio, the rest will be hired locally, starting next year. The jobs will pay an average of about $57,700 a year. Ten percent of the jobs will pay $80,000 or more .... [The] office will carry out the financial aspects of the company's operations, including accounting, human resources, administrative services, ethics/compliance and risk management .... Petco started its site-selection process in January with a list 37 possible expansion sites around the country, including the San Diego area, after the company reached capacity at its headquarters building in that city .... Petco CEO Jim Myers said in a prepared statement that 'after an extensive search for the right place to support our growth, we chose San Antonio, and we're thrilled to further expand our local presence with a Satellite Support Center, our first office location outside of San Diego' .... The 45-year-old company ... operates 1,050 pet supply and service stores in the United States, 79 of them in Texas and six of those in San Antonio .... Petco said it will spend $5 million to outfit its San Antonio building .... The company's site-selection team graded cities on four main factors, including availability of corporate talent, the friendliness of the business and civic communities, operating costs and quality of life."
Source: San Antonio Express story, Nov. 22, 2010, "Petco plans to add 400 jobs in S.A."
Type of Event: (CLOSURE)


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Calif. 2011 Disinvestment Event #93

R.R. Donnelly & Sons
Out-of-State Location: Unknown
California Community Facility: Fremont
California County: Alameda
Information: The company will close its Fremont distribution and manufacturing center.
Source: Oakland Tribune, June 8, 2011 story, "R.R. Donnelly and Total Immersion Software will cut a combined 108 East Bay jobs."
More Information: According to a notice filed with the state, 56 employees will be furloughed July 29.
Source: WARN Notice (pdf).
Type of Event: (CLOSURE)


***


Calif. 2011 Disinvestment Event #92

RockTenn (formerly Smurfit-Stone)
Out-of-State Location: Unknown
California Community Facility: Santa Fe Springs
California County: Los Angeles
Information: The company announced that it will close the former Smurfit-Stone corrugated container plant in the fourth quarter of fiscal year 2011, and said the action is a first step in realigning the box plant system of RockTenn following the acquisition of Smurfit-Stone. After the merger was approved on May 27, RockTenn said, "We plan to take many actions in the next year to maximize the efficiency of our manufacturing processes as well as to reduce costs and eliminate redundancies throughout our operations as we move forward to achieve the operating synergy that we anticipate from the Smurfit-Stone acquisition." The Company operates locations in the United States, Canada, Mexico, Chile, Argentina and China. For more information, visit the company's site.
Source: Company news release, June 2, 2011, "RockTenn Announces Closures of Three Corrugated Container Plants."
Type of Event: (CLOSED)


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Calif. 2011 Disinvestment Event #91

Sharp -- Solar Energy Solutions Group
Out-of-State Location: Camas, Washington
California Community Facility: Huntington Beach
California County: Orange
Information: According to The Columbian, this "green" group will relocate from Sharp’s western regional office in Huntington Beach to its campus in Washington State, adding, "Sharp was not recruited by local economic development officials to make the move .... Sharp Corp. is one of the world’s leading manufacturers of solar cells and has been mass producing solar cells since 1963. It produces solar cells at two factories in Japan, and uses the cells to manufacture solar modules in five factories around the world, including one in Tennessee. Its website says the company created the world’s first solar-powered calculator and that its products power more homes and businesses than any other manufacturer."
Source: The Columbian, June 10, 2011 story, "Sharp Solar to move to Camas."
Type of Event: (RELO-OSR)


***


Calif. 2011 Disinvestment Event #90

Shine International
Out-of-State Location: London, England
California Community HQ or Facility: Los Angeles
California County: Los Angeles
Information: A growing international sales and distribution arm for the company is moving its HQ England. The Los Angeles Times reports that "Shine International, which sells such successful television formats as 'MasterChef' and 'The Biggest Loser,' will keep a small presence in L.A. .... In addition to the London headquarters, Shine International will have offices in France, Germany, Australia and the Nordic region."
Source: Los Angeles Times May 10, 2011 story, "Elisabeth Murdoch's Shine International moves headquarters to London from L.A."
Type of Event: (RELO-OSR)


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Calif. 2011 Disinvestment Event #89

Southwire Company
Out-of-State Location: Unknown
California Community: Long Beach
California County: Los Angeles
Information: A notice filed with the state says that a closure is underway and that jobs 63 jobs have been or will be eliminated in phases starting on April 29 and ending on Dec. 30, 2011. No other information appears online and efforts to learn more haven't produced any information.
Source: WARN Notice (pdf).
Type of Event: (CLOSURE)


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Calif. 2011 Disinvestment Event #88

Star Trac (Part I)
Out-of-State Location: China and Vancouver, Washington
California Community Facility: Murrieta
California County: Riverside
Information: Club Industry reports that "In a continuing effort to shift more production to its plant in China, Star Trac is shutting down its factory in California, resulting in close to 50 layoffs .... Production was scheduled to stop May 31, but new Star Trac President Dustin Grosz says that deadline may get extended by a few more weeks. A total of 48 employees currently work at the Murrieta factory, which had produced Flex Fitness products. In addition to those jobs that will be eliminated, Star Trac laid off about 25 employees from its corporate headquarters last month [and some departments] are being consolidated with the StairMaster offices in Vancouver, Wash .... Bruno has been in China for about a month overseeing the company’s production in its Xiamen, China, plant. Bruno ... said in March that he hoped 75 percent of the company’s production would be shifted to China by June and 90 percent would be shifted to China by the end of the summer." The company will keep its showroom and some functions in Irvine, where it has it's HQ, as it proceeds through a "turnaround phase."
Source: Club Industry May 15, 2011 story, "Star Trac Shutting Down California Plant as More Production Moves to China."
Type of Event: (RELO-OSR) and (CD-OSG)


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Calif. 2011 Disinvestment Event #87

Star Trac (Part II)
Out-of-State Location: Vancouver, Washington
California Community HQ: Irvine
California County: Orange
Information: The Portlander reported that Star Trac, a "leader in developing advanced commercial equipment for the fitness industry and ... StairMaster, will be consolidating a number of operational functions to StairMaster’s headquarters in Vancouver, Washington. 'This will allow us to streamline our business process to be more efficient and effective for our customers,' stated Dustin Grosz, President of Star Trac and StairMaster. While the company’s fitness equipment will continue to be manufactured in China, StairMaster picked Vancouver over Irvine for the location of its new 26,000 square foot corporate headquarters. The new offices ... will house the company’s executive, administrative, and customer service functions." Grosz added: “The Portland-Vancouver metro is the nation’s hub for outdoor and fitness equipment enthusiasts which allows us to have access to the type of workforce we want to grow and shape our company.”
Source: The Portlander, May 25, 2011 story, "100 New Jobs Headed to Vancouver."
Type of Event: (RELO-OSR)


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Calif. 2011 Disinvestment Event #86

Total Immersion Software
Out-of-State Location: Austin, Texas
California Community Facility: Alameda
California County: Alameda
Information: The Oakland Tribune reported that Total Immersion Software, a maker of virtual reality software simulations, will eliminate 52 jobs when it shuts its digital studio and transfers work to Texas.
Source: Oakland Tribune, June 8, 2011 story, "R.R. Donnelly and Total Immersion Software will cut a combined 108 East Bay jobs."
The Alameda County Workforce Board listed the Alameda facility as a closure affecting 52 workers on July 1, 2011.
Source: "Layoffs and Closures" as published on May 29, 2011.
Additional Information: The company's website here says the "The Alameda Studio is closing. But, we have many exciting job openings in our Austin, TX, studio" and the "Austin Studio is Hiring."
Type of Event: (CLOSURE) and (RELO-OSR)


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Calif. 2011 Disinvestment Event #85

United Launch Alliance
Out-of-State Location: Unknown
California Community HQ or Facility: San Diego
California County: San Diego
Information: The company, a joint venture by Lockheed Martin and Boeing, has listed its facility on Pacific Highway as a "closure" in three WARN notices filed with the state, showing a total of 18 jobs ending starting on Jan. 6 and ending on July 15, 2011.
Source: WARN notice (pdf) as found online on May 28, 2011.
Additional Information: Back in 2006 the company relocated employees mainly from California to Denver, Colorado, and Decatur, Alabama. That's according to NASA Spaceflight.com's Nov. 30, 2006 story, "United Launch Alliance – open for business."
Type of Event: (CLOSURE) and (RELO-OSR)


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Calif. 2011 Disinvestment Event #84

Valley Towing Products (also known as RPM Towing)
Out-of-State Location: Mexico and Dallas, Texas
California Community: Lodi
California County: San Joaquin
Information: A notice filed with the state says that a closure occurred June 15, 2011 that eliminated 64 jobs.
Source: WARN Notice (pdf). (Listed as RPM)
More Information: Valley Towing Products announced that it's adding two facilities to its North American supply chain -- a new warehouse in Dallas, Texas and a new manufacturing facility in San Luis Potosi, Mexico. Owner Revstone Industries, LLC is HQ'd in Lexington, Kentucky, with regional offices in Michigan, New York, and China. Revstone operates manufacturing facilities in more than 60 locations throughout North and Central America with plans to expand in Europe and the Asia-Pacific region.
Source: Revstone Industries, LLC news release, Nov. 29, 2010, "Valley Towing Products Adds Two New Facilities in North America."
More Information: The Lodi News-Sentinel reported that "A distribution center near the Lodi plant will remain open .... Valley Towing Products, originally known as Valley Industries, has manufactured trailer hitches, electrical trailering products and towing accessories since 1947."
Source: Lodi News-Sentinel, Dec. 3, 2010 story, "Valley Towing Products to shut down Lodi plant in May."
Type of Event: (CLOSURE) and (RELO-OSR)


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Calif. 2011 Disinvestment Event #83

VXI Global Solutions
Out-of-State Location: Canton, Ohio
California Community HQ: Los Angeles
California County: Los Angeles
Information: The Canton Repository reported that VXI Global Solutions is expected to open a call center in the city, stating, “'I’m proud to announce that an agreement has been reached between VXI Global Solutions and Canton Centre to bring 1,000 new jobs to the city of Canton,' Mayor William J. Healy II said .... The project is expected to create about 1,000 jobs within three years .... Services include account management, retention calls and client support in more than 20 languages. Positions will include outbound and inbound sales agents, supervisors, operations managers, human resource managers, trainers and recruiters, Healy said .... VXI Global Solutions has begun the hiring process .... VXI Global Solutions has 10 call centers, including locations in Youngstown, California, Texas, the Philippines and China .... Healy noted construction already is under way at the Canton Centre shopping complex [for] Global Solutions."
Source: Canton Repository, June 7, 2011 story, "Canton lands 1,000-job call center."
Update: CantonRep.com has confirmed the VXI move in a July 13, 2011 story, "New location for planned call center in Canton."
Type of Event: (CD-OSG)


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Calif. 2011 Disinvestment Event #82

Wells Fargo
Out-of-State Location: Dispersed
California Community HQ or Facility: Concord
California County: Contra Costa
Information: Wells Fargo Mortgage Operations notified the state that it furloughed 134 people on Feb. 11, 2011, listing the event as a "closure."
Source: Information: WARN Notice (pdf).
More Information: The San Francisco Business Times reported earlier that "The Concord facility focused on processing loans for third-party mortgage brokers. Wells said it remains committed to serving the mortgage broker channel. Wells is seeking to boost efficiency by moving the Concord work to a larger operation in the Southern California city of Irvine. 'The changes we’re making allow us to operate in the most economical and efficient manner possible, while still serving our broker clients,' said a company spokesperson.
Source: San Francisco Business Times, Dec. 13, 2010 story, "Wells closes Concord center, cutting 137 jobs."
More Information: Related to the above comment is the fact that Wells Fargo in another WARN Notice (pdf) said that jobs would be cut in Irvine effective April 9 and May 22, 2011; it's either 53 jobs in each case for a total of 106 or a duplicate entry for 53 jobs.
More Information: This blog previously linked to an Orange County Register story about Wells Fargo cutting 59 jobs and moving some Irvine work to India. See the March 25, 2011 story, "Wells Fargo shifts O.C. work to India."
More Information: The Orange County Register reported earlier this year that Well Fargo cut 145 jobs, mostly in Irvine and some possibly in nearby Costa Mesa.
Source: Orange County Register, Jan. 31, 2011 story, "Wells Fargo to cut 145 mortgage jobs in O.C."
Observation: With a deemphasis in California job placements with work migrating out of state, including out of Irvine, the Concord event rates a listing here as a California loss.
Type of Event: (CLOSURE) and (RELO-OSR)


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Calif. 2011 Disinvestment Event #81

WindStream Technologies, Inc.
Out-of-State Location: New Albany, Indiana
California Community HQ: Manhattan Beach
California County: Los Angeles
Information: The New Albany News and Tribune reported that the City Council is considering ways to back a loan for WindStream Technologies, a "green" company, to expand a facility that moved from California. WindStream is requesting the city back an economic development bond worth up to $3.7 million with tax-increment financing to expand and allow the company to begin mass production of its wind turbines. "Dan Bates, president and CEO of WindStream, said the company has international and domestic orders to fill and needs the council to approve the bond so 'we can get into the manufacturing phase of this product.' .... WindStream began in 2009, and was featured in March in Helsinki, Finland as part of the U.S. State Department’s League of Green Embassies conference. The company created small wind turbines designed for residential energy use, and Bates said WindStream is on pace to produce more than 40,000 units in three years .... New Albany could benefit from the 105 new positions WindStream plans to add .... A California native, Bates said several states vied for WindStream when the company launched.
Source: New Albany News and Tribune, June 6, 2011 story, "Vote on Windstream loan likely to be tabled by New Albany council."
Additional Information: The New Albany News and Tribune reported earlier WindStream Technologies, Inc. will develop a multi-million dollar investment production facility in the New Albany and Purdue Research Park of Southern Indiana ... by 2012. "The company — currently located in California — manufacturers wind turbines called TurboMills."
Source: New Albany News and Tribune, Nov. 23, 2009 story, "WindStream Technologies bringing 260 jobs to Purdue Research Park in New Albany by 2012"
More Information: Earlier news releases said the company was based in Manhattan Beach, Calif.
Type of Event: (RELO-OSR) and (CD-OSG)


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Calif. 2011 Disinvestment Event #80

Xeris Pharmaceuticals Inc.
Out-of-State Location: Austin, Texas
California Community HQ or Facility: Larkspur
California County: Marin
Information: the Austin American-Statesman reports that the company will move its HQ to the Texas city. "Chief operating officer Yash Sabharwal said the company's CEO was drawn to Austin's entrepreneurial culture and its resources in the life sciences and biotech fields. 'And from a business perspective, (Texas) is the business-friendliest state in the country,' he said."
Source: Austin American Statesman story, May 9, 2011, "2 more California companies join migration to Austin."
Type of Event: (RELO-OSR)

FOR EARLIER 2011 LISTINGS: California Disinvestment Events #79 through #1 are listed in prior blog entries over several months back to and including January.


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What the Event Codes Mean:
(CANCELLED) Construction of a facility cancelled due to California’s costs, taxes or environmental regulations.
(CLOSURE) Full or partial. When "dispersed" appears in the Out-of-State Location line, that means work will be done in other locations owned by the company or business will shift to competitors who will perform the work out of state.
(CD-OSG) Capital Directed to Out-of-State Growth for a facility that in the past would have been built in California. Also refers to “green” company out-of-state activity that occurs despite all of the California regulations and financial inducements designed to make the state ideal for green companies.
(U-TURN) Company considered moving into California and cancelled that plan and went elsewhere.
(LNF) California lost a new facility to another state or country.
(RELO-OSR) Out-of-State Relocation.

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Monday, May 2, 2011Calif. Co. 2011 Disinvestment Event # 79:
ArthroCare Corp.
Out-of-State Location: Austin, Texas
California Community HQ or Facility: Sunnyvale
California County: Santa Clara
Information: ArthroCare Corp. will relocate its main R&D operations to its Austin HQ by the end of this year. The Austin American-Statesmen reports that "The company, which makes and markets 'minimally invasive surgical products' for spinal and other surgeries .... employs just over 100 people in Austin and contemplates doubling that number .... ArthroCare itself is a transplant, having moved its headquarters from Sunnyvale to Austin in 2004 .... In its quarterly filing, the company estimated that the cost of the latest move, including employee severance, lease termination and relocation costs, will be between $10 million and $10.5 million. The company said it employs 459 people in North America – in Austin, Sunnyvale and a third operation in Irvine, Calif., which is unaffected by the announced consolidation."
Source: Austin American-Statesman, May 2, 2011 story, "ArthroCare moving R&D operations from California to Austin."
More Information: A California WARN notice lists ArthroCare as laying off 121 employees in Sunnyvale later this year (in three entries). See "Listing of WARN Notices by Layoff Date - 2011" (pdf).
More Information: The Austin Business Journal covered the company's headquarters relocation in a June 12, 2005 story, "Medical device maker quietly lands in Austin."
Observation: Site selection experts know that when a company creates a "footprint" in new location and consistently feels welcome there – and gets a clearer view of cost differentials – that additional company operations will often gravitate to that community. Also, on a related point involving biotech companies, Silence Therapeutics announced a few days ago that it's closing its Redwood City office (it's unclear where the jobs are headed but that will end its Calif. presence) the same day HYCOR Biomedical said it's leaving Garden Grove for Indiana. Last year, Medtronic left Northridge for San Antonio and Pain Therapeutics departed San Mateo for Austin.
Type of Calif. Disinvestment Event: (RELO-OSR) Out-of-State Relocation to occur.
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Thursday, April 28, 2011Calif. Co. 2011 Disinvestment Event # 78:
Blackford Capital LLC
Out-of-State Location: Grand Rapids, Michigan
California Community HQ or Facility: Irvine
California County: Orange
Information: The private equity firm, which was launched in Chicago in 2000 and relocated to Irvine, Calif., shortly after, has moved to Michigan. Mlive.com reports that "With 70 percent of the company’s investments in the Midwest or on the East Coast ... the firm wanted to be closer to its current and future operations .... A second California office remains in San Francisco. Martin Stein said while many of its competitors are based in Chicago, the firm sought to differentiate itself by locating in Grand Rapids. 'We saw Grand Rapids as a great location for recruiting talent,' he said. 'We also think Michigan has some extremely strong manufacturing opportunities and wanted to be close to future investments that we would be making' .... Blackford Capital focuses on older, profitable operations where the owner wants to grow or exit the company. Stein said they are not short-term investors. 'Our youngest company is 20 years old and our oldest is 80,' he said .... Stein serves on the boards of five of the firm’s portfolio companies, including serving as chairman of the board for Amtech Corp. and Staging Concepts." Also, Stein, a Grand Rapids native, said his hometown is "a great place to raise a family."
Source: mlive.com (Grand Rapids Press story, April 28, 2011, "Private equity firm headquarters move from California to Grand Rapids."
Type of Calif. Disinvestment Event: (RELO-OSR) Out-of-State Relocation.



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Calif. Co. 2011 Disinvestment Event # 77:
Raytheon Space and Airborne Systems
Out-of-State Locations: Dallas Texas, Forest Mississippi and an as-yet-unidentified location
California Community HQ or Facility: Goleta
California County: Santa Barbara
Information: The company will relocate part of a division's operations to Raytheon facilities in other states, moves that will affect about 114 California employees by the end of this year. According to Noozhawk, a company "email read, 'To better position SAS for growth in today’s economic and market environment, we must improve efficiency and increase competitiveness' .... various sustainment programs will be moving to the company’s Forest, Miss., site. The microelectronics center will move to the Dallas, Texas, site, and the company’s integration and test for the PAWS-2 program will relocate from Goleta 'to another facility to be determined based on business outlook.' Program offices, engineering and other functional support will remain in Goleta."
Source: Santa Barbara Noozhawk story, April 27, 2011, "Raytheon Announces Layoffs, Plans to Move Some Goleta Operations Out of State."
Type of Calif. Disinvestment Event: (RELO-OSR) Out-of-State Relocation to occur.
Observation: This event follows previous moves by other companies fully or partly in the aerospace sector, including Northrop Grumman, Lockheed Martin, Howell Precision Machine and Engineering, and Vista Metals, to name a few.



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Wednesday, April 27, 2011Calif. Co. 2011 Disinvestment Event # 76:
HYCOR Biomedical, Inc.
Out-of-State Location: Central Indiana
California Community HQ or Facility: Garden Grove
California County: Orange
Information: The company, a manufacturer of diagnostic products for clinical laboratories, will relocate its HQ from Garden Grove to Central Indiana. The state's economic development agency reported that "This is the second California company to relocate its headquarters to Indiana in the past two years. In 2009, Fleetwood RV moved from Riverside, Calif. to Decatur, Ind., creating 300 new jobs. Additional companies including Beckman Coulter have consolidated operations from California in recent years .... HYCOR is the latest example of the benefits of maintaining fiscal discipline and a low-cost business environment .... 'Given Indiana's central location, the exceptional life sciences talent based here, as well as the economic incentives being offered by the state, we believe this is the ideal time for HYCOR to relocate as our business continues to grow,' said Richard Aderman, president and CEO of HYCOR."
Source: Indiana Economic Development Corporation news release April 27, 2011, "Life Science Company Relocating California Headquarters to Indiana."
Observation: Hycor isn't a big company, but they are a growing company in the highly desirable biomedical space -- a high-value "catch" for Indiana. The company also has an office in Edinburgh, Scotland, United Kingdom.
Type of Calif. Disinvestment Event: (RELO-OSR) Out-of-State Relocation.
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Calif. Co. 2011 Disinvestment Event # 75
Silence Therapeutics Plc (formerly Intradigm)
Out-of-State Locations: London, England and Berlin, Germany
California Community HQ or Facility: Redwood City
California County: San Mateo
Information: Silence Therapeutics Plc today indicated it will close "as soon a practicable" its Redwood City administrative office. A restructuring started after its merger with Intradigm, a biotechnology startup HQ'd in Palo Alto, but whose operations were moved to Redwood City in July 2010 after the merger. Silence Therapeutics appears to be positioned for solid growth considering the progress it's making in the field of RNA interference ('RNAi' therapeutics), the issuance of new patents to the company, and the "excellent progress" underway with clinical trials of its products.
Source: Company news release, April 27, 2011, "Silence Therapeutics Plc - Results for the Year Ended 31 December 2010."
(For an explanation of RNAi, see Wikipedia's "RNA interference.")
Type of Calif. Disinvestment Event: (RELO-OSR) Out-of-State Relocation complete or underway.
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Tuesday, April 26, 2011Calif. Disinvestment List Reaches 74 Events;
New 'Green' Facilities for OR, OH and SC
Four more companies were added today to the California disinvestment list, bringing the number of events to 74 thus far during the year. See details about # 71 DistinctDev, Inc., # 72 Be Green Packaging, #73 TecnoSun, and #74 Google.


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Calif. Co. Disinvestment Event # 74:
Google
Out-of-State Location: Arlington, Oregon
California Community HQ or Facility: Mountain View
California County: Santa Clara
Information: The Oregonian reported that Google is "investing $100 million in Shepherds Flat, the controversial, taxpayer-subsidized wind farm in Eastern Oregon. The search engine company is joined by subsidiaries of ITOCHU Corp. and Sumitomo Corp., which will together invest $400 million in the $2 billion project being developed by Caithness Energy. Google operates a large, power-hungry data center nearby in The Dalles. But power from the wind farm, partially subsidized by Oregon tax credits, isn’t going there. The project, near Arlington, will generate 845 megawatts for customers of Southern California Edison. The utility, like others in California, is racing to line up clean power to meet the state’s pending renewable energy requirements .... The Oregonian reported last month that the massive project is being subsidized by $1.2 billion in federal, state and local support. Last fall, a memo from Obama administration advisers to the president said the project was "double-dipping," and that the value of the subsidies exceed the value of carbon reductions from the project. Federal subsidies reduced investors' cost on a project that didn't need taxpayer help, according to the memo.
Source: The Oregonian, April 18, 2011 story, "Google, others join controversial Shepherds Flat wind farm near Arlington."
More Information: In an earlier story, The Oregonian reported that "The project is a poster child for the nation's love affair with renewable energy. From President Barack Obama to former Gov. Ted Kulongoski, from the Oregon Legislature to rural county courthouses, politicians have embraced renewable energy as an economic and environmental cure-all, a means to create jobs, reduce dependence on fossil fuels and combat global warming. They have backed that pitch with public dollars. Indeed, Shepherds Flat demonstrates how ... Oregon taxpayers subsidize California's renewable energy demand. It shows how developers have used the program's loose administrative rules to qualify for multiple tax credits for the same project. And it reveals how a program that was originally intended to promote conservation and clean energy morphed into an extravagantly expensive green jobs program. Stacking federal, state and county subsidies is perfectly legal. But the result is that taxpayers who subsidize a project may bear a greater burden for development than the company that profits from it. For Shepherds Flat, for instance, federal, state and local subsidies total more than $1.2 billion, about 65 percent of its $1.9 billion cost, according to a White House memo .... by any standard, the cost per job is enormous: $34 million per permanent position when all federal and state subsidies are tallied. The [White House] memo concluded that the carbon reductions from Shepherds Flat would have to be valued at more than six times the going rate for the climate benefits to equal the subsidies.
Source: The Oregonian, March 12, 2011 story, "The cost of green: Huge eastern Oregon wind farm raises big questions about state, federal subsidies."
More Information: Triple Pundit reports that the project will be completed next year. The energy produced by the wind farm will be sold to Southern California Edison and will help California meet its 33 percent renewable energy standard. "Google has invested over $350 million in clean energy, including $38.8 last year in two North Dakota wind farms."
Source: Triple Pundit, April 21, 2011 story, "Google Invests $100 Million In Oregon Wind Farm."
Type of Calif. Disinvestment Event: (CD-OSG) Capital Directed to Out-of-State Growth by a “green” company – out-of-state investment that occurs despite California being "ideal" for green companies. California offers subsidies and incentives to green companies, which are burdensome to taxpayers; the state over-regulates non-green businesses to force them to use most costly green energy; and a new law will spark sharp increases in already high electricity rates as an additional way to subsidize green industries. Despite all this, "green" companies locate new facilities out of state.
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Calif. Co. Disinvestment Event # 73:
TecnoSun
Out-of-State Location: Toledo, Ohio
California Community HQ or Facility: Unknown
California County: Unknown
Information: TecnoSun Solar Systems AG, a "green" German company that makes mounting systems for solar panels, plans to bring 20 to 40 jobs to Toledo in the next two years when it opens an office at the University of Toledo (UT). The Toledo Blade reported that "The facility will serve as the North American headquarters for TecnoSun, which plans to hire a CEO for the Toledo office within six weeks .... TecnoSun makes solar panel supports, called "trackers," that let panels follow the sun's path through the sky, maximizing their power output. The company will use northwest Ohio manufacturers to make its products in the United States. UT President Lloyd Jacobs said TecnoSun fits with the university's goals to foster solar innovation in metro Toledo. 'We are building the supply chain,' he said. At a press conference. [CEO Peter] Fischer said the start-up company had considered locating its U.S. office in California. However, the firm selected Toledo after meeting in January with UT officials at the World Future Energy Summit .... The firm was attracted to Toledo's skilled work force, access to highways and railways that would allow shipping throughout North America, and proximity to solar power research being conducted by UT and other local firms.
Source: Toledo Blade April 8, 2011 story, "Solar firm to bring 20-40 jobs to Toledo."
Type of Calif. Disinvestment Event: (CD-OSG) Capital Directed to Out-of-State Growth by a “green” company – out-of-state investment that occurs despite California being "ideal" for green companies. California offers subsidies and incentives to green companies, which are burdensome to taxpayers; the state over-regulates non-green businesses to force them to use most costly green energy; and a new law will spark sharp increases in already high electricity rates as an additional way to subsidize green industries. Despite all this, "green" companies locate new facilities out of state.
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California Company Disinvestment Event # 72:
Be Green Packaging
Out-of-State Location: Ridgeland, South Carolina
California Community HQ or Facility: Santa Barbara
California County: Santa Barbara
Information: Gov. Nikki Haley, the South Carolina Department of Commerce and the Lowcountry Economic Alliance today announced that Be Green Packaging LLC, a manufacturer of “green” packaging, will locate its new manufacturing and distribution facility in Ridgeland, S.C.. The company plans to invest at least $7.3 million and generate at least 175 new jobs over the next five years, with the potential of more jobs and investment added during that time. The company will manufacture and distribute consumer, industrial and food-grade packaging from the new plant. “What makes this great is that we said we weren’t going to just focus our economic development and job creation efforts on the cities but also the rural areas that need it the most," said Gov. Nikki Haley. The company said: “Green jobs and industry is more than a ‘slogan.’ Green jobs are jobs that help protect ecosystems and assist in biodiversity, reduce energy and water consumption, minimize waste and pay living wages and provide healthcare benefits for its workforce. Be Green Packaging felt this region and especially South Carolina, which has a long and rich tradition in the paper and pulping industries would be ideal for this 21st century business. The people of this state have the heritage, backgrounds and experience that will provide our company with the skills and resources for producing products made from sustainable plant fibers .... Be Green Packaging has been manufacturing in China since 2006 and distributing from one of its Boston warehouses .... the [area] would benefit from the educational programs and curriculum Be Green will help to develop in sustainable packaging .... this community will provide a national example of profitable U.S. manufacturing and jobs, it will assist the entire nation in developing sustainable environmental manufacturing protocols." An economic development official said, “Be Green certainly falls within the four business sectors we have targeted for the Lowcountry, and we look forward to attracting additional ‘green’ companies to this region .... Manufacturing is expected to commence in the first quarter of 2012 .... The company’s products are made from annually renewable plant fibers that are safe for people and healthy for the planet.
Source: Company news release, April 8, 2011, "Be Green Packaging Announces Jasper County Facility."
Additional Information: islandpacket.com reports that "The company could've sought an even greater reduction in its taxes under the law but will instead direct that money to an education program intended to teach area students about the packaging business .... Palmetto Electric Cooperative will provide $800,000 to improve the property under a separate law that allows utilities to claim credits against license taxes in exchange for aiding economic development. Be Green also could be eligible for statutory tax credits the state offers companies that create new jobs, network officials said. "
Source: islandpacket.com (Beaufort Gazette) April 7 story "California packaging company to bring about 175 job, $7.3M investment to Jasper County."
Type of Calif. Disinvestment Event: (CD-OSG) Capital Directed to Out-of-State Growth by a “green” company – out-of-state investment that occurs despite California being "ideal" for green companies. California offers subsidies and incentives to green companies, which are burdensome to taxpayers; the state over-regulates non-green businesses to force them to use most costly green energy; and a new law will spark sharp increases in already high electricity rates as an additional way to subsidize green industries. Despite all this, "green" companies locate new facilities out of state.