California takes steps to lure companies away from red states

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California takes steps to lure companies away from red states
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The state's proposed budget includes an item that incentivizes companies in red states to relocate jobs to California.

is expected to sign Thursday, incentivizes companies in Republican-controlled states to relocate jobs to California by giving them priority when it comes to receiving grant money.

Starting next year, the Governor's Office of Business and Economic Development — better known as GO-Biz — will consider the political leanings of a company's home state when deciding which businesses to award grants to. Put simply, it creates priority for businesses that are relocating jobs away from red states.

When considering whether a state meets the new bar for priority, the new budget calls for GO-Biz to consider whether that state's legislature has passed laws that are discriminatory. Specifically, it encourages GO-Biz to examine whether those states have passed laws that eliminate protections for gay and transgender people, as well as laws that restrict access to abortion.

That means if a company operates in a state with such laws and is seeking to relocate jobs in that state to California, that company stands a better chance of receiving grant money than do companies in other states that don't have such laws on the books. Newsom has been calling on businesses in red states to relocate to California for months, and the new budget item shows that he's taking more concrete steps to achieve that goal.

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