by Douglas Koelemay
Virginians like spending the tax revenues generated by Northern Virginia’s booming economy. But if they don’t invest in the region’s prosperity, the cash cow may run dry.
Correcting an overdependence on federal dollars and underinvestment in boomtown Northern Virginia are twin challenges for the Virginia economy in 2005.
Much attention this time of year is focused on the General Assembly meeting in Richmond through February 26 and rightly so. State government will enjoy double-digit growth in tax revenues in these first months of 2005 compared to 2004. The state budget won’t be nearly as penurious as in recent years past. Unfortunately, these positive developments hide vulnerabilities the Virginia economy faces in the years ahead, including the growing dependence of the state’s economy on federal government spending, and Virginia’s continuing under-investment in the Northern Virginia economy. More.
