Look to Virginia

You’ve seen the headlines. Last week, Illinois passed a massive 66% increase in their personal income tax, and a 46% increase in their corporate income tax. However, what is more striking is the fact that when it comes to how the states are managing this tough economic time, Illinois is not the exception, in fact they are closer to the norm.

In the past year states from Oregon to Nebraska to New York have raised taxes on their citizens, businesses and job creators. While that’s bad news for the citizens of those states, it’s actually good news for the Commonwealth. When other states hike taxes and increase spending, they only highlight the conservative fiscal model we are following here in Virginia. Virginia has chosen a different path. A fiscally responsible path. And that path is positioning the Commonwealth to lead the nation in the years ahead.

Over the past year, working together across party lines, we closed a $1.8 billion shortfall in the 2010 budget without raising taxes. We did that despite the previous Administration’s proposal of a $2 billion income tax hike, which would have been the biggest tax increase in Virginia history. We said no to that tax hike and set about cutting spending and making tough choices to balance the budget. We did the same thing in this current budget when we encountered an historic $4.2 billion shortfall. Many said we couldn’t cut any further, that the only solution was to raise taxes. We didn’t listen to them. Instead we cut again. We cut education, healthcare, and all across state government. We didn’t raise taxes. And we reduced state spending to levels last seen in 2006. No other state has been as aggressive in cutting spending as we have been over the past year, and our fiscal responsibility is paying off.

We’ve added 67,900 net new jobs over the past year. Our unemployment rate has fallen to 6.8%, ninth lowest in the country. And while many states are hiking taxes and making their businesses look elsewhere, our actions have made Virginia the first place those businesses look. Northrop Grumman left California for Fairfax County. Mercury Paper did the same. Phoenix Manafacturing chose Pulaski County for their North American headquarters. The fact is, by reducing state spending to 2006 levels and not raising taxes we are telling job creators the world over: Virginia is open for business.

We are one year into this Administration, but what you’ve seen from us over the past year is what you will continue to see over the next three. We won’t raise taxes. We will eliminate wasteful spending, focus Richmond on its core priorities, and make the tough choices that you sent us here to make.

That is how you grow an economy and create jobs. And that is how we will build “A Commonwealth of Opportunity” for all Virginians.

Bob McDonnell