Virginia bests North Carolina as the top state for business in 2024
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Virginia has reclaimed its title as CNBC's Top State for Business this year, ousting the winner for the last two years (and the commonwealth's chief economic development rival), North Carolina.
Why it matters: The ranking is a bragging point for politicians on both sides of the aisle, and for state and local economic developers, who will definitely cite the win in future business recruitment efforts.
The big picture: Education, shovel-ready sites for new companies, infrastructure and — shockingly — a divided government are among the qualities that nailed Virginia the top spot, per CNBC.
- "In a rare feat this year, Virginia finishes in the top half or better in each of the study's 10 categories," CNBC wrote.
Zoom in: Virginia's public education system, both K-12 and higher education, is the best in the country, according to CNBC.
- CNBC credits the number of public colleges and universities, five HBCUs, and a 28% increase in state higher ed spending over the last five years for the No. 1 education ranking.
- Low teacher-to-student ratios, options for individualized instruction and "solid test scores" make Virginia's K-12 the best.
Plus, the state's infrastructure, including "virtual infrastructure" via data centers (70% of global internet traffic flows through NoVa), ranks third in the nation, per CNBC.
- That's despite the significant strain data centers put on Virginia's power grid, the network notes.
- And infrastructure includes those "shovel-ready" sites for companies that want to build quickly. The state's site-ready program is one of the best funded and most advanced in the the country
The intrigue: Much of what Virginia is doing well is thanks to a divided government that helps "moderate Virginia politics," CNBC writes.
- The network specifically noted state government compromises on education spending, which resulted in more money for schools and raises for teachers, Democrats successfully blocking a proposed 15-week abortion ban and an agreement that didn't raise taxes.
Yes, but: The state still ranks poorly by CNBC's measure for the cost of doing business, which includes taxes.
- "High business costs are Virginia's biggest weakness," CNBC writes.
Worth noting: With six first place wins in the award's 15-year history — including three in the last five years — Virginia is CNBC's "most decorated state" for the top business award, per the network.
- This year is also the first win under Gov. Glenn Youngkin, who was visibly giddy when accepting the honor on the network Thursday morning.