IAMC INSIDER
Gov. Kaine: Virginia History Rooted in Economic Growth
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| Gov. Tim Kaine will personally greet IAMC Fall Professional Forum attendees in Williamsburg. |
Virginia itself was founded as a quest for economic growth.
"The real estate executives and site selectors who make up IAMC are key decision- makers. It is exciting to have them here in Williamsburg," Kaine said. "In Virginia, we are all about history. We have been focused since late April on the 400th anniversary of Jamestown, a community that was founded by a company chartered by King James (of England) to seek economic opportunity. The entire Williamsburg area is a great community that has undergone tremendous growth, largely because of the economic power of the College of William and Mary. This is also a beautiful area with many natural amenities, and we know our IAMC guests will have a great time."
As part of a pre- Forum interview, the Virginia governor touched on a variety of topics, including his state's recent good fortune in securing honors in various business climate rankings.
Virginia, for example, was one of only six states to make the Development Report Card for the States Honor Roll, according to the Corporation for Enterprise Development. Virginia received an "A" for its overall economic performance, a "B" for its business competitiveness and entrepreneurial energy, and another "A" for its development capacity to serve future industrial growth.
In another key ranking, Virginia placed ninth among all 50 states in terms of its combined state and local tax burden, according to the non- profit Tax Foundation. The group analyzed state and local business licensing and sales taxes, real property and tangible personal property taxes, Census data and other factors to determine its annual ratings.
"This report from the Tax Foundation reinforces the fact that Virginia is one of the nation's best- managed states, with a diverse and growing economy and a low tax burden," said Kaine. "We are in this favorable position because we have followed conservative fiscal policies, we plan responsibly and we keep our commitments. We will maintain this successful approach as we work to continue moving Virginia forward."
The governor addressed his state's business climates and other topics in the following recent exchange with IAMC Executive Director Ron Starner. Shortly after this interview Forbes nameed Virginia No. 1 in its ranking of "Top States for Business."
Ron Starner: What do you want IAMC members to know about Virginia's business climate?
Gov. Tim Kaine: We feel very good about it. It is hard to keep up with the different accolades. We are an AAA bond- rated state, meaning we have long- term fiscal stability. We are very focused on fiscal responsibility. We also have a great work ethic. We have
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Starner: What does Virginia have to offer manufacturers?
Gov. Kaine: One of the strengths for manufacturing and logistics operations is our location in the Mid- Atlantic region. Not many states have one of the most active ports in North America – we do. Of the two East Coast railroads, one is headquartered here (Norfolk Southern), and the other used to be based here (CSX). We also have one of the busiest international airports in North America with Dulles in Northern Virginia.
Starner: What are you doing to make Virginia even more attractive to manufacturing companies?
Gov. Kaine: We are looking at the machinery and tools tax. We are looking at strategies to make that tax rate more competitive. In the Danville area, we have replaced a lot of the old manufacturing jobs with more automated manufacturing jobs. And we are using our tobacco settlement money to invest in the new economy. Also, we have traditionally had very low energy costs compared to other states. Not many states have both coal and a coastline – we do. We are looking at coal reserves and coastal energy opportunities. We are focused on a statewide energy policy.
Starner: What are some pockets of your state that are growing, but outsiders may not know it?
Gov. Kaine: We have a very strong manufacturing base in the Roanoke Valley area. One reason for that is we try to create synergies with our higher education system. Virginia Tech has been a wonderful partner with Roanoke economic development opportunities. In Richmond, Virginia Commonwealth University and the Virginia Biotechnology Park have been a great support for the local high- tech economy and companies in the area like Infineon. In Charlottesville, there is a significant industrial biotech park connected to the University of Virginia and the medical school there. We have a research park in Blacksburg, and several biomedical research companies have spun out of there. Philip Morris is building a huge research facility right in the middle of downtown Richmond. You see the same thing at George Mason in Northern Virginia and at Old Dominion in Hampton Roads.
Starner: What are you doing to recruit corporate headquarters operations to Virginia?
Gov. Kaine: We recently convinced MeadWestvaco Corp. to relocate its corporate headquarters from Stamford, Conn., to Richmond. Getting them to move 600 jobs here was huge for us, and so was Philip Morris USA. Philip Morris is one of MeadWestvaco's largest customers on the packaging side.
Starner: Your predecessor, former Gov. Mark Warner, made securing more venture capital for Virginia industries a top priority for his administration. Will you do the same?
Gov. Kaine: I am anxious to do some more work in that area. We have pockets of venture capital around the state. Blacksburg has a key venture capital company. But we don't have the critical mass we need outside of Northern Virginia. There are more opportunities in that area. Gov. Warner did a very good job in starting a lot of those funds, especially in Hampton Roads. We have a lot of state resources and we'll try to be strategic.
Starner: How important is quality of life to economic development in Virginia?
Gov. Kaine: I think quality of life is important. The questions are about culture, natural beauty and education. In the area of culture, history and art, we are one of only four states in the nation with a state- owned art museum. We are starting to get a tremendous interest in the Crooked Road of bluegrass and other music. And we have the largest amount of natural forest land east of the Mississippi. We have the full panoply. In the area of education, of the 100 best public high schools in the nation, 10 are in Virginia. UVA and William and Mary have international reputations. We really sell the quality of our education very heavily.
Starner: If you had one central message to convey to IAMC members, what would it be?
Gov. Kaine: If you are seeking a spectacular business climate, the best education system in America and the greatest natural beauty you'll find anywhere in the country, come to Virginia.
