Forbes names Virginia Best State for Business

If you own a business in Virginia, congratulations. According to one publication, you picked the best state in the nation to base your company.

A well-educated workforce, low cost of doing business and steady population growth propelled Virginia to the top of Forbes magazine's first-ever list of Best States for Business.

Forbes judged states in six categories: business costs, economic climate, growth prospects, labor, quality of life and regulatory environment.

Gov. Tim Kaine said economic development offices across the state will use the Forbes ranking in their pitches to attract and keep jobs in Virginia.

"[It's] going to help us have an even higher batting average as we go after prospects and bring them to Virginia," Kaine said yesterday during a conference call with reporters.

Virginia placed first in the regulatory environment category and in the top 10 in every other category, too.

Texas placed second on the Best States list. North Carolina was third. Next came Utah, Colorado, Idaho, Nebraska, Delaware, Florida and Georgia.

Maryland was ranked 11th.

"Business costs in Virginia are very low, particularly tax and energy costs, which are seventh- and ninth-lowest in the country. Overall, business costs in Virginia are 9 percent below the national average. The corporate income tax has remained unchanged at 6 percent for more than 30 years. And the state's AAA bond rating keeps the government's borrowing costs down, preventing it from nickel and diming its corporate constituents. Worker compensation costs are fourth lowest in the country and are 47 percent below the national average," reads the Forbes article, posted online at its Web site, forbes.com.

Two area legislators released statements commenting on the Forbes ranking.

"Much of the progress toward this goal can be credited to Virginia's most valued asset, which are her people," said Virginia Sen. John Chichester, R--Northumberland. "They are well-educated, forward thinking, and when combined with a government that looks to the future, it isn't surprising that Virginia is so honored by this award."

Virginia House Speaker Bill Howell, R--Stafford, said, "This ranking from Forbes confirms what we've been doing for the past decade and more--keeping the tax burden as competitively low as possible, ensuring regulations are reasonable, encouraging risk-taking entrepreneurs and promoting our educated work force."

Kaine pointed out that two international hubs for transportation--Washington Dulles International Airport in Sterling and the Port of Virginia in Hampton Roads--certainly help the state when it comes to attracting companies with global shipping needs. Better traffic flow on the state's roads and rails will be needed to keep businesses in Virginia, he said.

'The success of both of those international assets is heavily dependent on transportation. Can you get to and from Dulles? Can you get freight to and from the Port of Virginia?" Kaine said.

Several places in Virginia have also been singled out in recent Forbes lists as good environments for business.

In May, five regions made Forbes' list of Best Metropolitan Areas for Business: Northern Virginia (17th), Richmond (41st), Virginia Beach (48th), Lynchburg (109th) and Roanoke (165th). Five small cities made a similar Forbes list in May: Charlottesville (32nd), Winchester (39th), Harrisonburg (53rd), Blacksburg (65th) and Danville (162nd).