SACRAMENTO WATCH : Keep Them Open

California, a powerhouse in trade, may lose its overseas trade offices if the Legislature axes spending on trade promotion. That may be many-pennies wise but nonetheless pound foolish. With competition for international trade fierce and other states boosting their promotional efforts, this is no time for California to cut back.

The state administrative subcommittee of the Assembly Ways and Means Committee has refused to renew funding for five overseas California offices and other trade promotion activities operated out of Gov. Pete Wilson’s office. The governor’s request for $1.87 million was the only trade-related budget request turned down by the subcommittee.

The trade offices abroad provide on-site services for other state trade and investment programs as well as for small and mid-size California exporters.

Unless the full committee reverses the decision, California will have to shut down its trade offices in Tokyo, Hong Kong, London, Frankfurt and Mexico City. The governor’s office also would have no funds to coordinate various state trade programs and act as liaison with the U.S. trade representative’s office.

In these tough times, some other states are spending considerably more per person than California in promoting trade. Michigan, for example, spends 33% more on a per capita basis. California uses 0.017% of its total state budget on trade. Michigan spends twice as much. Illinois spends 3 1/2 times more per person.

Downsizing California’s trade operations is definitely a bad idea.