Texas is best, California worst state for business, CEOs say

Many of the nation's top business executives apparently have no love for California.

For the seventh year in a row, a survey of chief executives has ranked the Golden State as the nation's worst in which to do business.

More than 500 U.S. CEOs polled by Greenwich, Conn.-based Chief Executive magazine based their opinions on numerous factors, including regulations, tax policies, work force quality, education resources, quality of living and infrastructure.

"ABC – Anywhere But California," said T.J. Rodgers, CEO of Cypress Semiconductor, a $668 million chip-making firm in San Jose. "It's expensive, it's hostile to business and environmental regulations are more of a drag on business than protecting the environment."

Cypress Semiconductor, which also has overseas operations, said it once had 1,500 workers in California but is now down to about 600.

While the Golden State came out on the bottom, Texas topped the magazine's "Best & Worst States" list for the seventh consecutive time.

Texas was followed, in order, by North Carolina, Florida, Tennessee and Georgia.

Ranking 46th through 49th were Michigan, New Jersey, Illinois and New York, respectively.

Just last month, a group of California Republican lawmakers was joined by Democratic Lt. Gov. Gavin Newsom on a "fact-finding mission" to Texas, with a goal of seeing first-hand what makes Texas so business-friendly.

"A handful of states have made business-friendly policies a priority," said J.P. Donlon, editor in chief of Chief Executive. However, some questioned the priorities of CEOs surveyed by the magazine.

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