Posted: August 13, 2010

By Philip Newswanger

philip.newswanger@insidebiz.com

Virginia has reached the top of the charts again as the most pro-business state in the country.

The commonwealth scored the highest, followed by Utah and Wyoming, according to the Pollina Corporate Top 10 Pro-Business States for 2010.

Virginia was ranked number one in 2003, 2007 and 2009.

The report is done every year by Pollina Corporate Real Estate, a site consultant based in Park Ridge, Ill., a Chicago suburb.

Virginia and the other nine states were chosen and ranked based on 31 factors controlled by state governments. They include taxes, human resources, education, right-to-work legislation, energy costs, infrastructure spending, workers compensation laws, economic incentive programs and state economic development efforts.

The Pollina ranking enhances Virginia's status even more, based on other surveys.

CNBC ranked Virginia "A Top State for Business" in 2010, and Forbes.com named Virginia the Best State for Business in 2009.

"Virginia's high score can be attributed to strong showings in college completion, low unemployment, right-to-work status, workers compensation rates, low corporate taxes, low sales and gross-receipts taxes, a favorable corporate litigation environment and low crime rates," Executive Vice President Brent Pollina said in an e-mail.

"Virginia also has excellent incentive programs and a top-notch economic development department that works with existing companies as well as attracts new companies to the state."

In recent years, America has lost millions of the nation's manufacturing, technology and high-wage service jobs, and this trend is escalating, Pollina said in a press release announcing the rankings.

"The federal budget deficit, trade deficits, low interest rates, family debt and inadequate educational systems are and will continue to have a negative impact on the U.S. economic, political and military strength in the 21st century," the statement said. "We are deluding ourselves if we believe that we have not been impacted already, both socially and economically, and that our government, along with American ingenuity and tenacity, will correct for any losses. This report details how many state governments have the resources, but not the will, to keep Americans employed in high-paying 21st-century jobs."

Pollina said in his e-mail that if all states became more pro-business like Virginia, it would not solve America's problems, as he mentioned in the press release on his website.

But it would certainly help to slow the speed at which problems are occurring, Pollina said. "But to resolve the problems I mentioned will need federal efforts and legislation," he said. "Issues such as trade policy that favors large international corporations over small and mid-sized businesses, unfair trade policies, high taxes, low education standards and large federal deficits as well as a host of other issues will need to be addressed at the federal level."

Pollina said America's problems are systemwide - from the consumers who do not care where goods are made as long as they are cheap and the lobbyists who push trade policies to benefit their bottom lines with no regard to American jobs, to politicians who spend 50 percent of their time raising funds for their next election.

"If we are going to turn our nation out of the decline we are in now we will need to address a whole host of issues," Pollina said. "States like Virginia that understand business and are willing to adapt to the changing economy will lead the way for any turnaround, but the states cannot do it alone."

Gov. Bob McDonnell played on the announcement, saying his administration passed a package of initiatives to spur economic development. He also repeated that his administration has announced 131 projects with $1.3 billion in investments that will create 8,000 jobs.

Dr. Ron Pollina, president and founder of Pollina Corporate Real Estate, is a lecturer and writer. His latest book, "Selling Out a Superpower: Where the U.S. Economy Went Wrong and How We Can Turn It Around," is due out in September.

"Economist Ron Pollina is a well-respected voice in the world of real estate and economic development. His tell-it-like-it-is approach makes for an eye-opening and interesting read," read a book review by Jeffrey M. Anderson, president and CEO, Virginia Economic Development Partnership. nib