Taking Care of Business (2)

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.

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  1. Felicity Avatar

    The Government Performance Project released its 2005 Evaluation of the States today. Virginia scored very highly in all categories graded, especially the “money” category, which reflects how well the state manage its fiscal resources, including budgeting, forecasting, accounting and financial reporting, procurement, contracting, investments, and debt. Complete grades on Virginia at:

  2. Anonymous Avatar

    “Direct, indirect and induced effects of economic activity in Northern Virginia could account for up to 70 percent of Virginia’s gross state product.”

    I’m glad to see that somebody understands this.

    “Gov. Mark R. Warner and members of the General Assembly are proposing many new, if discrete economic development initiatives that at least acknowledge the need to strengthen and diversify Virginia’s economy outside of Northern Virginia. For every seemingly positive idea to boost economic development across the state, however, there seems to be purposeful ignorance about the need to diversify the economy in Northern Virginia. “

    Not only purposeful ignorance, but positive antipathy embodied in a movement to deny infrastructure as a means of preventing growth and sprawl and preserving prime, but next to useless farmland. These people need to understand that preservation and conservation cost a lot of money. The best way to get it is via paragraph 1.

    “But it did not launch a new strategy for the research and transportation networks needed to support the Northern Virginia economy as it adds over 140,000 new jobs over next three years.”

    Not to mention the housing in which to put all these workers. These problems have to be fixed or paragraph 1 will bog down in it’s own success.

    Ray Hyde
    Delaplane, VA

  3. Anonymous Avatar

    Remember the days when someone would mention business updates and the usual reaction was huh?

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