State of California Business Guide
The State of California is the most populated state of the United States of America. Located on the Pacific coast of North America, it is bordered by Oregon, Nevada and Arizona in the United States, and Baja California in Mexico. The state's four largest cities are Los Angeles, San Diego, San Jose and San Francisco. California is known for its diverse climate and ethnically diverse population.
California is the third largest state by area in the U.S. The state's size gives it a diverse geography, which ranges from sandy and rocky beaches of the Pacific coast, to the rugged snow-capped Sierra Nevada mountains in the east, to desert areas in the southeast and the forests of the northwest. The central portion of the state is dominated by the Central Valley, one of the most productive agricultural areas in the world. The Sierra Nevada contains Yosemite Valley, famous for its glacially-carved domes, and Sequoia National Park, home to the largest living organisms on Earth, the giant sequoia trees, and the highest point in the contiguous United States, Mount Whitney.
Economy
The economy of California is a dominant force in the economy of the United States. California is also the home of several significant economic regions such as Hollywood (entertainment), the California Central Valley (agriculture), Tech Coast and Silicon Valley (computers and high tech), and wine producing regions such as the Napa Valley, Sonoma Valley and Southern California's Santa Barbara and Paso Robles areas.
The Tech Coast is the nickname given to the Southern California region extending from Santa Barbara in the north to northern San Diego County in the south. Counties include Santa Barbara, Ventura, Los Angeles, Orange, and San Diego. The Tech Coast concept and name, created by Timothy Cooley in the mid-90s to define the region's industrial and economic drivers, has been adopted to describe the region as it matured from an economy dominated by aerospace and defense to that of a diversified, global, multi technology-based powerhouse.
Agriculture (including fruit, vegetables, dairy, and wine) is a major California industry. In 2004 agriculture brought in $31.8 billion in revenue, making it more than twice the size of any other state's agriculture industry. In fact, California is the world's fifth largest supplier of food and agriculture commodities. Agriculture accounts for just slightly over 2% of California's $1.55 trillion gross state product.
Other major industries include: (1) aerospace; (2) entertainment, primarily television by dollar volume, although many movies are still made in California; (3) light manufacturing including computer hardware and software, and the mining of borax. California also draws significant revenue from international trade and tourism. The exports of goods made in California totaled $94 billion in 2003. Nearly $40 billion of that total was computers and electronics, followed by agriculture, non-electrical machinery, transportation, and chemicals. Total direct travel spending in California reached $82.5 billion in 2004, a 7.4% increase over the preceding year. Los Angeles County receives the most tourism in the state.
The economy of California is often cited for how it would compare to other countries if California were an independent nation. The statistic quoted varies widely (usually placing California between 6th and 10th), depending on the source. According to the California Department of Finance, California's gross state product is $1.543 trillion. Thus, if California were an independent nation, it would have had the seventh largest economy in the world. California is responsible for 17% of the United States' gross domestic product (GDP).
Per capita personal income was $33,403 as of 2003, ranking 12th in the nation. Per capita income varies widely by geographic region and profession. The Central Valley has the most extreme contrasts of income, with migrant farm workers making less than minimum wage. While some coastal cities include some of the wealthiest per-capita areas in the U.S., notably San Francisco and Marin County, the non-agricultural central counties have some of the highest poverty rates in the U.S. The high-technology sectors in Northern California, specifically Silicon Valley, in Santa Clara and San Mateo counties, are currently emerging from economic downturn caused by the dot.com bust, which caused the loss of over 250,000 jobs in Northern California alone. Recent (Spring 2005) economic data indicates that economic growth has resumed in California, although still slightly below the national annualized forecast of 3.9%. The international boom in housing prices has been most pronounced in California, with the median property price in the state rising to about the half-million dollar mark in April 2005.
Demographics
By 2007, California's population has reached 37,700,000, making it the most populated state, and is the 13th fastest-growing state. This includes a natural increase since the last census of 1,909,368 people (that is 3,375,297 births minus 1,465,929 deaths) and an increase due to net migration of 774,198 people into the state. Immigration from outside the United States resulted in a net increase of 1,724,790 people, and migration within the country produced a net decrease of 950,592. According to the Sacramento News & Review, California's population will increase to 50 million people by 2025. More than 12 percent of U.S. citizens live in California and its population is greater than that of all but 34 countries of the world.
California has eight of the top 50 U.S. cities in terms of population. Los Angeles is the nation's second-largest city with a population of 4,018,000 people, followed by San Diego (8th), San Jose (10th), San Francisco (14th), Long Beach (34th), Fresno (36th), Sacramento (37th) and Oakland (44th). Los Angeles County has held the title of most populous county for decades, and is more populous than 42 U.S. states.
Government & Politics
California is governed as a republic, with three branches of government: the executive branch consisting of the Governor of California and the other independently elected constitutional officers; the legislative branch consisting of the Assembly and Senate; and the judicial branch consisting of the Supreme Court of California and lower courts. The state also allows direct participation of the electorate by initiative, referendum, recall, and ratification. California follows a closed primary system. The state's capital is Sacramento.
The Governor of California and the other state constitutional officers serve four-year terms and may be re-elected only once. The California State Legislature consists of a 40 member Senate and 80 member Assembly. Senators serve four year terms and Assembly members two. Members of the Assembly are subject to term limits of 3 terms, and members of the Senate are subject to term limits of 2 terms.
Transportation
California's vast terrain is connected by an extensive system of freeways, expressways, and highways. California is known for its car culture, giving California's cities a reputation for severe traffic congestion. Construction and maintenance of state roads and statewide transportation planning are primarily the responsibility of the California Department of Transportation (Caltrans).
One of the state's more visible landmarks, the Golden Gate Bridge was completed in 1937. With its orange paint and panoramic views of the bay, this highway bridge is a popular tourist attraction and also accommodates pedestrians and bicyclists. It is simultaneously designated as U.S. Route 101 which is part of the El Camino Real (Spanish for Royal Road or King's Highway), and California State Route 1 which is also known as the Pacific Coast Highway. Another of the seven bridges in the San Francisco Bay Area is the San Francisco-Oakland Bay Bridge, completed in 1936. This bridge transports approximately 280,000 vehicles per day on two-decks, with its two sections meeting at Yerba Buena Island.
Los Angeles International Airport and San Francisco International Airport are major hubs for trans-Pacific and transcontinental traffic. There are about a dozen important commercial airports and many more general aviation airports throughout the state.
California also has several important seaports. The giant seaport complex formed by the Port of Los Angeles and the Port of Long Beach in Southern California is the largest in the country and responsible for handling about a fourth of all container cargo traffic in the United States. The Port of Oakland, fourth largest in the nation, handles trade from the Pacific Rim and delivers most of the ocean containers passing through Northern California to the entire USA.
Intercity rail travel is provided by Amtrak. Los Angeles and San Francisco both have subway networks, in addition to light rail. Metrolink commuter rail and Metro Rail part of METRO serves much of Southern California, and BART and Caltrain commuter rail connect Bay Area suburbs to San Francisco. San Jose and Sacramento have light rail, and San Diego has Trolley light rail and Coaster commuter rail services. Nearly all counties operate bus lines, and many cities operate their own bus lines as well. Intercity bus travel is provided by Greyhound and Amtrak bus services.
The rapidly growing population of the state is straining all of its transportation networks. A regularly recurring issue in California politics is whether the state should continue to aggressively expand its freeway network or concentrate on improving mass transit networks in urban areas.
The California High Speed Rail Authority was created in 1996 by the state to implement an extensive 700 mile (1127 km) rail system. Construction is pending approval of the voters during the November 2008 general election, in which a $9 billion state bond would have to be approved.
