Correction from Rostra Admin, 4/25/11…
We contacted Texas Gov. Rick Perry’s Chief of Staff Ray Sullivan (a former San Diegan) about this article, related to the claim that the jobs are being relocated from California to Texas. Mr. Sullivan’s response:
“These are new jobs as I understand it…added in Texas instead of California. So, few if any eBay personnel will be moved from CA to TX. eBay is expanding in TX in a big way.”
The article and headline indicate that 1,000 jobs are being relocated from CA to TX and further appears to suggest the company is relocating to Texas. There is neither anything to suggest from Gov. Perry’s press release, nor now from his chief of staff, that such a claim is accurate.
See additional details in the comments.
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On a recent trip to Los Angeles, Texas Governor Rick Perry met with wealthy business types to boost the number of companies doing business in the Lone Star State. The trip paid off as eBay, formerly run by Meg Whitman, agreed to tax incentives in exchange for relocating to Texas.
The average salary for these “green economy” jobs is $122,500 and they would have made California’s progressive peddlers very happy. Austin City Council members referred to the coup as “green software programming jobs” that will provide sustained economic growth in the state.
The Internet giant eBay says they will employ approximately 1,000 new workers at their new location.
“This is precisely the kind of company we would like to see expand in Austin. This project will include great jobs for Central Texans,” Mayor Lee Leffingwell said.
Gov. Rick Perry’s office claimed the eBay move would bring an estimated $5.1 million in capital investment to the state.
Comments 13
Corrections: eBay is *not* “relocating” to Texas. The company remains headquartered in California. It is expanding its Texas operations, and the 1,000 will be added over 10 years. As far as I can tell, these are new jobs; eBay is not “relocating” these jobs out of California.
If we’re going to make the case for relaxing business regulations in California — a goal I support — it’s important not to overstate the case.
Mr. Fikes is correct, according to Perry’s press release. Although Perry may have made the deal with EBay while he was visiting the company in CA, there is nothing to suggest the jobs are relocating from CA to TX…
http://governor.state.tx.us/news/press-release/15965/
Gov. Perry Announces eBay to Create More Than 1,000 High-Paying Jobs in Austin
Tuesday, April 12, 2011
Gov. Rick Perry today announced the state is investing $2.8 million through the Texas Enterprise Fund (TEF) in eBay Inc. for the expansion of its Austin facility. This investment will create 1,050 high-paying jobs and generate an estimated $5.1 million in capital investment.
“Here in Texas, we’ve created an environment that allows companies from all industries and of all sizes to grow and create jobs for Texans, thanks to our low taxes, reasonable and predictable regulatory climate, fair legal system and skilled workforce,” Gov. Perry said. “Austin’s high-tech economy and skilled workforce are perfect for eBay, and I’m pleased to welcome this expansion and the more than 1,000 quality jobs it will bring to Texas.”
eBay Inc. connects millions of buyers and sellers globally through eBay.com, the world’s largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly make and receive online payments. This TEF investment will facilitate the expansion of various eBay Inc. business units, including PayPal units currently in Austin.
“Austin is a vibrant, exciting city with a strong heritage for technology expertise and lots of growth potential,” said eBay Inc. Senior Vice President and Chief Technology Officer Mark Carges. “Our state-of-the-art facility there has room for expansion and the support we have received from the State of Texas and the City of Austin reinforces our commitment to attracting top talent in regions where we operate. The economic development grants from the Texas Enterprise Fund and the City of Austin were instrumental in our decision to choose Austin as a location for growth.”
“This is precisely the kind of company we would like to see expand in Austin,” Mayor Lee Leffingwell said. “This project will include great jobs for Central Texans.”
The legislature created the TEF in 2003 and re-appropriated funding in 2005, 2007 and 2009 to help ensure the growth of Texas businesses and create more jobs throughout the state. TEF projects must be approved by the governor, lieutenant governor and speaker of the House. The fund has since become one of the state’s most competitive tools to recruit and bolster business. To date, the TEF has invested more than $432.8 million and closed the deal on projects generating 58,480 new jobs and more than $14.7 billion in capital investment in the state.
For more information about the TEF, please visit
http://www.texaswideopenforbusiness.com/financial-resources/texas-enterprise-fund.html
or
http://www.governor.state.tx.us.
Brad and Thor – Absolutely. And it could easily be the case that the Austin location reflects EBAYs need to access engineering talent being produced by the UTA – a public university. We should also be a bit skeptical as conservatives about economic development grants and tax rebates – which unfortunately are showered much more frequently on large companies wuith good lobbyists/consultants rather than smaller, faster growing companies.
We should also be a bit skeptical as conservatives about economic development grants and tax rebates – which unfortunately are showered much more frequently on large companies wuith good lobbyists/consultants rather than smaller, faster growing companies.
That’s my concern as well. I’d like to see lower taxes and removal of needlessly burdensome regulations for all businesses, not just the politically connected. Crony capitalism is wrong, no matter whether a politician’s name is preceded by a D or an R.
Texas loves California Democrats.
TA,
Kimberly hasn’t corrected the story on the Examiner. Has anyone told her about the errors?
BTW, I appreciate the Rostrafarian scrupulousness for facts. Many of my peers could learn better journalism from your practices.
Thanks, Bradley, that is appreciated, especially coming from a writer of your scrupulousness. We will ensure Ms. Dvorak is aware. We are also discussing the formulation of some basic policies, including possibly a requirement that Rostra bloggers monitor their posts’ comments and respond if necessary. We note the balance between philosophical passion and journalistic integrity is sometimes touchy and tenuous. Many of our bloggers are political operatives and activists, some are journalists. They often come from a differing perspectives. That part of the writing spectrum where opinion and fact come close, but don’t overlap, is our concern. Ultimately, we fully support the aspect of strong and often controversial opinions from our writers, but also expect accuracy in the process. Thanks for helping us all meet that worthy goal.
California is the engine of prosperity — for the other 49 states.
It’s not just that California is LOSING corporations — inaction is the easiest choice for most, so most will likely stay (for now). But few non-retail businesses move TO California. And CA corporations look to the other states as the preferred place to EXPAND their business operations.
BTW, Texas is now seriously considering a bill to establish “loser pays” in the state courts. This is HUGE. Assuming this is passed and does not cause a “cascade” effect (other states following suit — so to speak), this will be a major incentive to move businesses to Texas.
California is a litigation-happy state, with class action suits filed daily over inconsequential matters — blackmail by any other name. And our state legislature (filled with and owned by lawyers) will likely continue the lucrative legal lottery in our “Golden State.”
Author
Hey, eBay is currently shopping for a new headquarters outside California, they are torn between Texas and Utah and Colorado. Hence the reason Perry was in town. My source was at the meeting. Also, the new hires will come from other states as well as Texas.
Kimberly,
Your claim is still wrong. You wrote in your article:
“The trip paid off as eBay, formerly run by Meg Whitman, agreed to tax incentives in exchange for relocating to Texas.”
That is not the same as:
“Hey, eBay is currently shopping for a new headquarters outside California, they are torn between Texas and Utah and Colorado.”
Your article requires a correction.
The debate about whether the jobs are being relocated from California to Texas or are just being created in Texas is somewhat irrelevant. The bottom line is that employers decide whether and where to add jobs based on taxes, quality workforce, regulation and lawsuits policies.
Texas has low taxes, a high quality of life and workforce, predictable common-sense regulations and restrictions on frivolous lawsuits. That’s why Texas is leading the nation in job creation. And why out population growth means four new congressional districts next year.
For more see:
http://online.wsj.com/article/SB10001424052748704570704576275051374356340.html?mod=googlenews_wsj
Ray,
Major errors of fact are never irrelevant — unless you want to play the “fake but accurate” game the MSM loves. Reporters should be able to get basic facts right, regardless of their personal political beliefs.
And Dvorak didn’t say that jobs were being relocated, she said the entire company was being relocated:
“The trip paid off as eBay, formerly run by Meg Whitman, agreed to tax incentives in exchange for relocating to Texas.”
False. There has been no such announcement about eBay agreeing to relocate to Texas. And put on your thinking cap: If such a relocation had been agreed to, we’d hear all about it in the rest of the media.
In the comments, Dvorak said eBay is “currently shopping” for a new headquarters. That’s a far different claim, and Dvorak doesn’t understand they are self-contradictory.
Dvorak’s factual error is bad enough. Her inability to understand why she’s wrong is even more troublesome. Caveat lector.
Ray Sullivan, the commenter two above, is chief of staff to Texas Governor Rick Perry, and a former San Diegan. We truly appreciate him weighing in on Rostra!
We contacted Mr. Sullivan to ensure he understood the question about the accuracy of this specific article, related to the claim that jobs are being relocated from California to Texas. Mr. Sullivan’s response:
“These are new jobs as I understand it…added in Texas instead of California. So, few if any eBay personnel will be moved from CA to TX. eBay is expanding in TX in a big way.”
Let’s be perfectly clear, then.
The blog writer may have inside information that eBay is seeking new digs outside of California (see her comment above).
But, that is not what this article is about. The article and headline indicate that 1,000 jobs are being relocated from CA to TX and further appears to suggest the company is relocating to Texas. There is neither anything to suggest from Gov. Perry’s press release, nor now from his chief of staff, that such a claim is accurate.
The blog writer may also have an opinion about California’s business competitiveness and that maybe the Golden State could have landed these NEW jobs, if only for a welcoming business climate and/or the incentives offered by Texas. Most of our readers might agree with some of that sentiment.
Yet, that would be an opinion, a very fair one indeed. The article was not offered as opinion, it was offered as fact.
At SD Rostra, we welcome opinions, even those that may at times be controversial. But, we also insist on accuracy and will correct obvious inaccuracies.