Perry launched a radio and web campaign this week to lure California businesses and jobs away with what he calls low taxes and sensible regulations.
California Gov. Jerry Brown dismissed the campaign, which has spent only $25,000 so far for air time.
"It's not a burp; it's barely a fart," he said.
The war of words illustrates the bitter relationship between the nation's two biggest states, vying for bragging rights as to which one is better for companies. Business leaders, though, have consistently ranked California as a bad place to do business. Some in the business community say Brown should be paying attention.
"The current administration treats this as a joke," Aaron McLear said.
McLear worked for then-Gov. Arnold Schwarzenegger and tried to convince businesses to stay in California, often a tough sell.
"The taxes are high, the regulations are onerous; there's a lot of things keeping them from being able to innovate, and to grow their business and create jobs," McLear said.
Brown acknowledges poaching does happen, but an office called GO Biz tries to head off any defections.
"Look, when you've got something good, people want to be there," Brown said. "In 1848, people wanted to come here and take our gold. Well, yeah. You go to where the gold is. They're coming to California because this is where it is."
There are examples of businesses coming in to the Golden State: UPS just unveiled a new green fleet and Electric Vehicles International built the trucks in California after choosing to relocate from Mexico.
"We find California to be quite competitive; we came over the border this way, we went north, and we found it to be very competitive," Electric Vehicles International CEO Ricky Hanna said.
Perry is scheduled to begin personally pitching California companies next week. His first visit is with Haas Automation in Oxnard.