Another year, another exodus: California continues to shed businesses and residents like a tree losing leaves in a storm. Despite Governor Gavin Newsom’s insistence that California remains “the beating heart of the American economy,” companies keep packing up and heading for the Lone Star State. Apparently, Texas’s siren song of lower taxes, affordable housing, and less red tape is too hard to ignore.
Since 2018, over 360 companies have fled California, according to the California Policy Center’s aptly named California Book of Exoduses. And where are they going? Mostly to Texas, which has become a magnet for businesses tired of navigating California’s endless regulatory maze. From tech firms to insurance companies, the parade of departures shows no signs of slowing down. The numbers are staggering—by 2023, more than half of those who left had set up shop in Texas. Simplilearn, a global tech company, is one of the latest to join the exodus. They relocated from San Francisco to Plano, Texas, which CEO Krishna Kumar described as a “dynamic tech community.” Apparently, moving out of California wasn’t just a smart business decision; it was a necessity for growth.
The story doesn’t stop there. Resources Connection Inc., a management consulting firm, left its Irvine base of nearly three decades for Dallas in November. Koya Medical, a medical device company, also traded Oakland for Dallas, incentivized by the city’s financial perks and the promise of over 200 new jobs. Then there’s ABBYY, a data analytics and AI company, which bid farewell to Silicon Valley in favor of Austin—because who wouldn’t prefer Texas’s business-friendly “Silicon Hills” to California’s suffocating bureaucracy? Even FreshRealm, a meal kit company working with Amazon and Kroger, ditched California for Lancaster, Texas, citing the state’s “rich heritage of hard work.” In other words, California’s “progressive” policies weren’t quite cutting it.
It’s not just businesses heading for the exits. California’s homeowner insurance market has imploded, with companies like State Farm, Allstate, and American National Insurance pulling out of the state altogether. After years of underwriting losses, these companies are refusing to issue or renew policies in the Golden State, adding yet another layer to California’s growing reputation as a place to leave rather than live. Meanwhile, Texas keeps racking up accolades as the best state for business, attracting new companies, creating jobs, and expanding its economy at a pace that leaves California in the dust.
For all Newsom’s claims of California’s appeal, the numbers paint a different picture. Census data reveals that Texas gained 500,000 residents in 2023 alone, with over 100,000 coming directly from California. It’s not hard to see why. Texas has no personal income tax, supports law enforcement, and boasts an economy that leads the nation in growth. Compare that to California, which, for the first time in its history, recorded a population loss under Newsom’s leadership. High taxes, unaffordable housing, and a business climate that seems designed to punish success have turned the Golden State into the Exodus State. For now, Texas seems more than happy to roll out the welcome mat for California’s disillusioned businesses and residents.
