On Tuesday there was a story about another example of a business that is head-quartered in LA moving parts of its operations to other states. (See story here.) Call centers can be located virtually anywhere. They can be housed in existing vacant buildings as fast as telephone lines can be run to them.

The need to get away from hurricanes and the U.S. Corps of Engineers is an obvious and prudent business decision. What is not obvious is why the operation wasn’t located in LA. Why couldn’t these facilities be located in North LA along Interstate 20? Unemployment is high in Northeast LA. Land is relatively inexpensive. College and universities as well as technical schools for training workers abound along I-20.

In this particular instance our state and local economic developers will tell us that it is because the company has a new manufacturing plant in Tennessee. That only serves to beg the question, of why we didn’t get the new back-up manufacturing plant?

Secretary of LA’s Dept. of Economic Development, Mike Olivier is widely credited with bringing the Oreck Plant to Mississippi when he headed economic development for the Mississippi Gulf Coast. What was he able to offer then that he cannot offer to lure the latest developments back to LA where the company is head-quartered?

Providing for back-up facilities for businesses along the Gulf Coast is a new, booming, business. Why is LA losing out?

I’ll attempt to answer my own question. The combined LA state and local taxes are the 10th highest among the states. (Yes, I know the list said 11th, but the last time I checked, D.C. is not a state.) Property and casualty insurance is either unavailable or un-affordable. State and local government red tape is strangling those of us who struggling to do business here.

Final question, what is our governor and the lege doing to address high taxes, affordable insurance and red tape? NOTHING!!

C.B.