Bacon's Rebellion

Democracy Thrives in Sunlight

Too Bad We’re Not Dead Last

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by

James A. Bacon
in ,

Public officialdom in Virginia has been increasingly focused on Virginia’s heavy dependence upon the federal government for economic activity and employment. As the Joint Legislative Audit and Review Commission pointed out in its “Review of State Spending: 2011 Update,” Virginia ranked second among the states in total federal spending per capita.

In federal FY 2009 the federal government spent $155.6 billion in Virginia (up from $118.5 billion the previous year). “The largest share of federal spending in Virginia ($82 billion or 47%),  states the report, “was for procurement of goods and services, including services provided by federal contractors based in Virginia. When federal spending starts declining, as inevitably it will, there goes the ol’ economic base.

If there’s a silver lining, it’s that Virginia’s state budget is less dependent upon federal grants. States the JLARC report: “Since federal FY 1995, Virginia has ranked between 47th and 50th among the states in terms of per capita receipt of federal grant awards. In FY 2009, Virginia ranked 49th.”

Forty-ninth is pretty good, although I say we should aim for dead last.

— JAB

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7 responses to “Too Bad We’re Not Dead Last”

  1. Groveton Avatar
    Groveton

    I certainly agree with your point about the state needing to find a new economic base. Sadly, the incompetence of The Clown Show in Richmond has left us with little in the way of astes beyond geographic proximity to Washington, DC. Bob McDonnell is trying but I think the years of waste under people like Tim Kaine have taken their toll.

    As for not getting federal grants, I am not sure why that is a positive. The federal government takes money from all of us in one way and then re-distributes that money in a different way (after pissing away a large percentage of the take). It’s our money that’s not coming back to us. This seems to me like yet another example of the inept nature of The Clown Show in Richmond.

  2. Hydra Avatar
    Hydra

    I agree with Groveton. Not getting the federal money you can get is stupid.
    RELYING on geting it is more stupid.

    We should get the money we can and accept the fact that it won’t always be there. If the money we get goes away, accept that as not a bad thing, but don’t wish for it in advance.

  3. larryg Avatar
    larryg

    this is an important report. there is a lot more in it than just the “grants” data:

    they’re looking at what parts of the state budget grew and why…. this being a subject area of interest for those who are fiscal conservatives and then the “clown show” continues to take more than it should from taxpayers.

  4. larryg Avatar
    larryg

    I don’t think NoVa has to worry about govt jobs “going away” but I think they should, at the same time, recognize that the largess is not something they earned and thus not to be shared with RoVa.

    I see a new VRE commuter rail station to be built in Spotsylvania and the developer wants to attract “high quality” jobs from NoVa but he’s hoping that VRE will run reverse-commute trains from NoVa to spotsy for the workers.

    think about this. every single rider on VRE right now is subsidized at about $20 per trip and the developer wants to extend that subsidy. to provide reverse commute trains….

    Now I’m betting that this would be the same developer who hates Obama and contributes heavily to the Republicans… right?

  5. larryg Avatar
    larryg

    if you take a look at this report and the biggest increases in the state budget – there are two culprits…. higher ED and MedicAid including care for kids.

  6. Groveton Avatar
    Groveton

    I don’t think NoVa has to worry about govt jobs “going away” but I think they should, at the same time, recognize that the largess is not something they earned and thus not to be shared with RoVa.

    Where to start?

    The jobs won’t “go away”. However, there will be reductions. In other words, negative growth or shrinkage. Just like what happens to GDP in a recession.

    Employment isn’t largesse. The government needs people and hires them. They get paid. Pretty simple. Largesse is when you get something for nothing, not when you get paid to do a job.

    Why is this so hard?

    The trick is to have enough jobs so that everybody who wants one has one. Which isn’t ever going to happen in some areas of RoVa.

    Detroit used to be a thriving city. Now it’s not. Life goes on. Move.

  7. larryg Avatar
    larryg

    I’m doubting that in a govt downsize that the “headquarters” is going to take much of a “hit”. Much more likely that field offices will be whacked.

    but my point about sharing the “largess” was about taxes collected from NoVa and sent to RoVa.

    So NoVa workers get paid with Federal Taxes and then the State puts a RoVa tax on their paychecks… to spread it out a little.

    good idea eh?

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