While I agree that the taxes required to fund public pensions and support unionized government employees are killing the California dream, I’m not convinced things are so rosy in Arizona. I was born, raised, and educated in Arizona. My money is on Texas.
Arizona has the largest budget gap in the country when measured as a percentage of its overall budget. The state ranks in the bottom quintile on various education measures, particularly student-teacher ratios and funding per pupil. In order to keep its semiconductor and electronics industries flourishing, the state has to import educated workers from outside the region. At least California has a highly educated workforce, venture capital, and a university system that can provide skilled workers to keep the economy moving along.
Utility rates per unit of energy in AZ are half those in California, but net usage is higher due to A/C and larger homes, so gross electric bills are generally higher in AZ. While Arizona does have low wages and plenty of real estate, it is heavily dependent on cheap electricity and gasoline. Take the cheap energy away (phase out coal power and implement cap-and-trade) and the cost structure isn’t so favorable any more.
As for Texas, it has low taxes, ports, a large university system, the energy industry, lots of wind power, cheap land, guns, a real death penalty, etc.
