Should Virginia spend more on economic development and how should the money be targeted?

Virginia Business
October 2005

Kaine: As lieutenant governor, I worked with Governor Warner to restore Virginia's tradition of fiscal discipline and save its AAA bond rating. We brought state spending under control, restored faith in government, and led real budget reform that brought about needed investments in education, public safety, health care, transportation and the Chesapeake Bay.

As governor, I will be committed to furthering the commonwealth's economic progress. I have released a detailed economic development plan that will build on the successes of Governor Warner, by keeping a stable financial environment, helping small businesses succeed, saving family farms, fostering competitive regional economies, tapping the strength of Virginia's tourism attractions and preserving its natural resources.

Kilgore: Throughout my career, my motivation has been to make positive changes to improve the lives of all Virginians. As part of George Allen's "Competitiveness Cabinet," I had the unique challenge of creating jobs as secretary of public safety.  I took this challenge seriously, and as a result the people of Southwest Virginia had new job opportunities when we built and opened the Wallens Ridge and Red Onion prisons. As attorney general, I formed a Task Force on Regulatory Reform and Economic Development to review Virginia's economic development statutory framework, and look for opportunities to enhance our competitiveness, promote job creation and economic prosperity, encourage innovation and efficiency, and limit regulations imposed on business.

The task force put forth some recommendations for the Virginia Economic Development Partnership, such as requiring the Partnership to employ at least three managers dedicated to rural economic development and at least three managers dedicated to urban distressed areas. In order to better serve these regions, the managers should be located in the regions they are intended to serve. Additionally, I believe we should increase our investment in marketing the commonwealth as a premium location to start or expand a business.

Potts: Having a strong, solid, and achievable plan for economic development will dictate how much should be spent. We need to look carefully at what we are currently spending and determine if it is reaching the right industries. It may be that enough money is available, but that funds are not being used efficiently.