Colorado is blowing kisses and singing love songs to California companies and talent, hoping to woo those fed up with the state's budget and political troubles.

The Metro Denver Economic Development Corp. has taken to the skies, YouTube, snail mail and newspapers to tell Golden State execs that the grass is greener, the taxes are lower and the business climate is better in the Centennial State.

The flirtatious $95,000 advertising campaign has garnered national media attention.

It also comes as other states - such as Arizona, Nevada and Utah - also seek to capitalize on California's woes to lure jobs and workers.

Colorado's blitz has included:

* A plane hauling an 80-foot-long "Colorado Loves CA" banner over Los Angeles freeways during rush hour, the day before Valentine's Day.

* Ads in California newspapers declaring how "the Mile High State is a perfect match for expanding your Sea-Level company."

* A "Colorado loves California" Facebook ad.

* A mass mailing of customized Valentine's Day cards to top execs at some 300 California companies.

* A music-infused YouTube video that features Metro EDC Vice President Tom Clark sealing one of the Valentine's Day cards with a kiss.

"I always wanted to be on YouTube in Italy," joked Clark.

He insisted the campaign is meant to be "whimsical and funny" vs. a bare-knuckled attempt to poach companies and jobs.

Clark said Colorado in no way wants to do in California economically because Colorado depends on a healthy California. He noted that more than half of the nearly $1 billion in venture capital invested in young Colorado companies in 2008 came from California.

So far, the $95,000 in private money that the Metro EDC is spending on the campaign has resulted in $2 million in free media publicity, according to Clark.

He called that a "pretty good return" and the most effective recruiting campaign the Metro EDC has waged.

Media outlets that have covered the campaign include The Wall Street Journal, National Public Radio, CBS' San Francisco affiliate and the San Francisco Chronicle.

"Rocky Mountain Low in Valentine Greeting," read the headline in the Chronicle. "Isn't this hitting California while it's down?" asked the article.

Since the campaign began on Feb. 13, Clark said, his organization has received about a half-dozen contacts from California companies.

The effort comes as California lawmakers and the state's flamboyant governor, Arnold Schwarzenegger, have struggled to close a $42 billion budget deficit. A 15-month impasse ended Thursday after the state legislature approved a sweeping package of new cuts and taxes.

The governor's office used the news to drive home the point that California as a good place to do business - Colorado's love songs and cards notwithstanding.

Camille Anderson, a spokeswoman for the governor, noted the budget pact "includes economic stimulus measures to encourage companies to expand in, and relocate to, California."

"California is the best place in the world to do business because of the state's world-class universities, renowned work force, innovative companies and abundant resources," Anderson added.

So should California be worried about overtures from Colorado and other states?

David Neumark, an economics professor at the University of California, Irvine, doesn't think so.

He pointed to a 2005 study he co-authored showing that even during years when out-of-state relocation cost California the most jobs - 1994 and 1997 - the loss was never more than one-tenth of 1 percent of total jobs.

"It was trivial," said Neumark, downplaying the impact of recruiting efforts like those of Colorado.

"Of the things we should be worrying about, it's not near the top of the list," added Neumark, ticking off California's credit problems, housing woes and high home foreclosure levels.

fillionr@RockyMountainNews.com or 303-954-2467

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