For Immediate Release: May 7, 2004

State Registers at a Dismal 49th Place

SAN FRANCISCO, CA – According to a forthcoming study, California ranks 49 out of 50 states in economic freedom. “The U.S. Economic Freedom Index: 2004 Report,” published by Pacific Research Institute (PRI) in association with Forbes magazine, is featured in the newly released “Best Places” issue of Forbes.

http://forbes.com/free_forbes/2004/0524/164.html

The Index ranks America’s 50 states according to how friendly – or unfriendly – their governments are toward free enterprise. The report factors more than 140 variables – from taxes to environmental regulations to tort laws to property rights.

California ranks at or near the bottom in almost every measure of economic freedom: 48 in welfare spending/income redistribution, 48 in fiscal responsibility, and last, 50th, in regulatory burdens. As a result, California is at the bottom of the barrel in economic freedom.

"Governor Schwarzenegger must focus his energies, as he has, on rebuilding the state’s business climate through low taxes, less regulation, and common sense reform of the rules and organization of California's government,” said Lawrence J. McQuillan, project director. “There is no better model to follow than Colorado--ranked #2 in economic freedom--which has a constitutional limit on tax increases."

This Index provides a much-needed metric to compare states on how they encourage or discourage free enterprise. It also suggests where future growth will occur – and where it won’t. For the complete rankings, please visit PRI’s website www.pacificresearch.org.

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About the Project Director
Dr. Lawrence J. McQuillan oversaw the development of the “U.S. Economic Freedom Index.” He is director of Business and Economic Studies at the Pacific Research Institute. Specializing in tax, budget and regulation issues, his work has appeared in many leading publications – including the LA Times, USA Today and the Encyclopedia Britannica. He is a regular contributor to National Review Online and frequently appears on television and radio. He holds a Ph.D. in economics from George Mason University.

About PRI
For more than two decades, the Pacific Research Institute for Public Policy (PRI) has championed individual liberty through free markets. PRI is a non-profit, non-partisan organization dedicated to promoting the principles of limited government, individual freedom, and personal responsibility.