California ranking improves dramatically in business-climate survey

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California earns bottom-rung scores on surveys of state business climates so routinely that it it's come to this: Ranking No. 32 is reason to celebrate.

Allen Young

Staff Writer- Sacramento Business Journal

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California earns bottom-rung scores on surveys of state business climates so routinely that it it's come to this: Ranking No. 32 is reason to celebrate.

But the Golden State got some welcome news Wednesday. It jumped up 15 spots in the CNBC survey of America's Top States for Business, rising from 47th place in 2013 to 32nd this year.

The findings are curious because unlike other surveys -- such as the annual Chief Executive Magazine poll that habitually labels California the worst state for business -- CNBC does not base its findings on opinion surveys. Rather, it uses a point system based in part on analysis of what attributes are touted in state economic development marketing materials.

The analysis also includes comment from business groups, economic development experts, companies and the states themselves.

Georgia was this year's winner, followed by Texas, Utah, Nebraska and North Carolina. The bottom three states were West Virginia, Hawaii and Rhode Island.

Here are the top three categories:

• Cost of doing business: California ranked 48th among states with a score of 50 of 450 possible points; Georgia ranked 20th with 268 points and Texas ranked 23rd with 251 points. Last year California ranked 50th among states.
• Economy: California ranked 9th among states with a score of 276 out of 375 possible; Georgia ranked 3rd with 309 points and Texas ranked 1st with 326 points. Last year California ranked No. 35 among states.
• Infrastructure and transportation: California ranked 24th among states with a score of 194 out of 350 possible; Georgia tied with Texas for 1st place, with both states earning 254 points. Last year California ranked 34th among states.

Allen Young covers state legislation, regulation and contracts, as well as economic news, international trade and economic development for the Sacramento Business Journal.