Arnold did make some changes to our work comp laws, which brought the cost of doing business in CA down slightly. An example is, chiropractic visits for work comp patients used to be unlimited. Now they are limited to 24 visits a year that the state will reimburse for.

My brother-in-law owns a furniture manufacturing company in LA with 70 employees and last year paid $210,000 for work comp insurance – that is minus any claims! That’s $3K per employee per year, added to the other burdens such as health and dental insurance!

It costs more to “do business” in CA because the cost of owning a business is so much higher, and that cost is passed onto the consumer. Not to mention, leasing, renting, or buying facilities or offices is substantially higher than in other states where land is (relatively) cheaper – ie, Phoenix or Oregon. Or Mexico. No wonder there are so many maquilladoras in Mex as opposed to Otay.