As the Virginia General Assembly prepares to return
for a Special Session on August 2nd to appropriate American Rescue Plan funds
made available to the Commonwealth, we learned that Virginia will also enter
the new fiscal year with a substantial surplus in state revenue.
Some of that excess revenue is required to be put set
aside in our rainy day and other reserve funds under the Virginia Constitution,
and some of it will be available to spend on non-recurring items in the
upcoming year.
The Virginia economy is recovering well from the
pandemic as vaccination rates continue to climb. Nevertheless, the recovery is
uneven, and we will need these one-time funds to ensure our state social safety
net is there for our neighbors who won’t be able to bounce back as quickly or
suffered more significant hardships during the pandemic.
Given the generally rosy budget outlook, we probably shouldn’t
have been surprised that Virginia maintained it’s rating as the number one
state to do business according to CNBC’s long running state business
rankings. Virginia is the first state to
win the title “Top State for Business” twice in a row (CNBC didn’t issue
rankings in 2020 because of the pandemic).
Virginia has ranked #1 five times since the rankings
began in 2007– more than any other state.
Now, I haven’t always been one to tout Virginia’s
ranking for business friendliness as the most important metric for determining
the relative success of state government. To the extent these rankings have,
historically, rewarded states with low wages, lots of corporate giveaways,
anti-worker policies, weak environmental policies, and limited legal options
for consumers. You almost want to be suspicious of states that rank too high.
Since the last set of rankings came out, though,
Virginia passed the Clean Economy Act, raised the minimum wage, kicked
car-title and payday lenders out of the Commonwealth, gave unions more rights
to bargain collectively, passed the Virginia Values Act which includes employee
protections from all sorts of discrimination, and made it easier for workers to
sue their employers for things like worker misclassification.
So how are we still #1? Let’s dig in a little behind
the numbers.
CNBC’s rankings included 85 distinct metrics across 10
competitiveness categories. Some of them are what you’d probably expect: cost
of doing business, infrastructure, workforce, access to capital, cost of living,
etc.
This year, though, they added some new criteria to
reflect what businesses in 2021 care about.
Earlier this week many of us tuned in to watch Major
League Baseball’s Home Run Derby and All Start game live from…Denver, Colorado.
Seem like a non-sequitur?
All Star Week was originally scheduled for Atlanta,
Georgia this year. The MLB pulled out of Georgia earlier this year when players
and other stakeholders protested over Georgia’s passing restrictive voting
laws.
In announcing their rankings, CNBC made a point of
highlighting Virginia’s education system, which helps us to attract and retain
an exceptionally talented workforce, and commitment to equity and inclusion.
Clearly that was our number one attribute.
They also noted that companies, like Major League
Baseball teams, are increasingly vocal in their demands for inclusiveness in
the states where they do business, leading to an increase in the importance of this
in CNBC’s 2021 competitiveness study, as well as adding metrics on diversity,
sustainability, and connectivity.
So, we were able to stay ahead of other states even in
a pandemic not only because of our competitive business climate, but also
because of progressive legislation that we’ve enacted over the past few years. We’re
the first southern state to enact a Voting Rights Act to expand voting rights
and access to the polls as well as the Virginia Values Act that ensures
comprehensive anti-discrimination laws protect the LGBTQ+ community.
And we didn’t stop there.
We invested in public education and workforce
development so that Virginia businesses can recruit workers in Virginia. Since
Governor Northam took office, nearly 90,000 new jobs have been created and
we’ve invested over $45 billion.
The
Get Skilled, Get a Job, Give Back Fund and Program (G3 Fund) through the G3
Program provides financial assistance to certain low-income and middle-income
students who are enrolled in a higher education program that leads to an
occupation in a high-demand field.
Our investments in the highly traveled I-81 corridor
and the Port of Virginia are also clearly paying off. Recognizing our
commitment to infrastructure, technology, and inclusiveness, companies like
Amazon, Facebook, and Micron have chosen to relocate or expand their companies
in the Commonwealth.