In every home project, there's last-minute clean-up work to be done. It could be as simple as putting away all the tools, but sometimes there's some substantive work remaining.

If you're painting, you don't just leave globs of paint or bare patches on walls. If you're fixing a sink, you make sure all the faucet parts are hooked back up and everything is in proper working order.

In other words, you finish the job. Expanding or relocating your company should get at leasthe same attention to detail.

You may have already done the heavy lifting on the quest for a new site by examining the work force, comparing real estate costs and analyzing transportation data, among other things. All these are necessary and important parts of any site selection decision.

But wouldn't you feel better if you knew that every stone was turned? Expansion Management Magazine's 6th Annual Legislative Quotient does just that.

Giving meaning to the phrase "business climate"

Nearly everywhere you go, someone will tell you about the wonderful "business climate" in that particular area, but seldom is it defined.

And while the Legislative Quotient won't give you a complete view of the business climate in an area, it will provide you with one more piece of information, and bring you one step closer to finishing the project.

The LQ measures how states collect taxes and then how they spend that money. Obviously, states with low or no corporate or individual income taxes are going to be ranked favorably.

Of course, each individual company's situation is different. A state may have a special targeted tax plan for your specific industry, so even if that state ranks poorly here, it may be the right one for your business.

For example, if a state has a high corporate tax rate but your business is involved in a lot of distribution and warehouse operations, inventory tax is a much bigger concern than corporate income tax. Or if you are looking at opening a call center in a state, telecommunications taxes are of greater importance.

Where do the dollars go?

If you've ever done any home improvement or remodeling, you know that it's easy for costs to get out of control. You might get halfway through a project and already have surpassed your budget.

State legislatures conduct a non-stop home improvement project in all 50 states. It might be to your advantage to be in a state that values every penny.

The LQ doesn't just look at tax rates. It looks at how states turn around and spend that money.

If a state is spending most of its budget on items like education and roads, and a minimum on government administration, that could say a lot about that state's priorities. If this is a state that makes a commitment to education and infrastructure, that means it's investing in its, and your, future.

If a state is putting off improvements to its infrastructure, that could be a warning sign. In your own business, you know it's easy to fall behind on upgrades to equipment and buildings.

Is there hope for the future?

The LQ also measures whether a state is improving in the areas of the study. Rome wasn't built in a day, and neither is a tax situation in a state reversed in one legislative session.

But if a state is consistently cutting taxes and putting a greater percentage of its budget toward education and infrastructure, that state might be worth a second look.

Remember, before you make the final decision for your expansion or relocation project, take a final look to see if you're really done. We've given you another tool in your belt. Shame on you if it goes unused.

Lance Yoder is managing editor, Les Gramkow is research editor, and GyÕrgyi Sutt is research analyst of Expansion Management Magazine. You can contact them at (913) 381-4800.