'Open for business'

Virginia is America's "Top State for Business" according to the 2011 CNBC report released on Wednesday. The Commonwealth, always a top contender because of its strategic location and diverse economy, moved up one spot on the list from 2010.

"Every Virginian deserves a quality job in the community that they call home," said Gov. Bob McDonnell. "Our focus, from day one of this administration, has been to put in place the policies that will help private sector businesses create those jobs in the Commonwealth and get our economy back on track."

The governor credited low taxes, limited government spending, a strong Right to Work law, and smart state investments as reasons for the state's ranking.

"CEO's and entrepreneurs have responded to our efforts and found that Virginia is a great place to start and grow a business," McDonnell said. "Virginia is wide open for business."

The state's unemployment rate, which has dropped from 7.2 percent in February of 2010 to 6 percent in June, is well below the national average. A report by the Mercatus Center earlier this month found that Virginia is one of the best states when it comes to economic freedom. ('Liberty List,' June 21)

According to the CNBC report, Virginia offers large companies, such as the Hilton Corporation, Science Application International, and Northrop Grumman, tax incentives to move to the Commonwealth.

"We are very proud of the recognition," said Lieutenant Governor Bill Bolling, who serves as Virginia's Chief Job Creation Officer. "Virginia has been working hard to attain this status through a series of efforts including reducing spending, investing in job creating programs, improving workforce development programs, and selling Virginia around the world."

The largest employers in the state are Northrop Grumman Shipbuilding, Food Lion, and Booz Allen Hamilton. The CNBC report uses ten categories to rank the states: cost of doing business (Virginia ranked #21), workforce (#12), quality of life (#26), infrastructure and transportation (#10), economy (#8), education (#6), technology and innovation (#11), business friendliness (#2), access to capital (#10), and cost of living (#24). Virginia scored 1,660 of 2,500 possible points.

The report noted that Virginia boasted one of the friendliest business climates and that the state's tax burden had been lowered significantly over the past year. An effort begun in 2009 to reduce class sizes was instrumental in moving Virginia up the 'education' list.

On the negative side, the report noted that the number of uninsured Virginians has risen steadily in recent years. It also noted that unemployment remains high in certain areas of Virginia, especially the southwest section of the state. While Virginia took the top spot, Texas, North Carolina, Georgia, and Colorado were close behind. Virginia and Texas have alternated between the top two spots over the past five years; Virginia was #1 in 2007 and 2009. West Virginia, Mississippi, Hawaii, Alaska, and Rhode Island rounded out the bottom of the list.

Read the complete list here

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