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Virginia Governor on Economic Growth

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    Governor Bob McDonnell, (R-Va,), on the key to the state's fiscal success.

  • Duration 4:24
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So here's a question for -- what's going on in Virginia and -- this year just ended with a nearly 545.

Million dollar surplus.

Tax -- -- been increasing for thirteen consecutive months and -- on the planet well it's at six point 3% far better than the nine point 1% national average.

How is Virginia growing in this tough economy -- -- pleased.

To talk to the CEO himself as you well governor Bob McDonald well thank you governor for joining us afternoon from Richmond.

Yep thanks -- got -- -- it's so.

Easy one philosophy isn't a factor is -- strategy what would you say is the key to the success of the fiscal successor seeing here in Virginia.

I think it's a couple things so one we try to be the very best magnet for business we've been ranked by pulling on CNBC this here's the best place in America for business.

That means a good tax and regulatory end.

Right to -- climate good education.

System good litigation environment and that secondly we've invest a lot of money about a hundred million dollars last year.

At my request in new incentives to attract business tax credits.

Some opportunity fund money do attract businesses help defray some of their expenses trade offices in China India.

And the UK.

And -- just been very aggressive of people and tell them the Virginia story and as a result of that that's why -- -- I think it's gone up -- less that twelve or thirteen months is the income tax revenues you see continuing to increase.

So let me hit you with this -- right up front -- state revenues are up considerably almost 8% I believe the statistic is just for the month of August.

But -- the national economic picture is not that good.

Are you gearing up and planning for challenges ahead.

Oh absolutely.

I think there's -- some reasonable chance from the economists -- predictions that there is.

Another dip in the economy we're preparing for the worst even though we've had surpluses.

And so we're going to be go through a very conservative budgeting.

Forecast for the coming out.

For.

And Laura -- about a couple things one is unfunded liabilities that are -- things like Medicaid and our retirement system we've got to get them fixed there too.

Expensive and too much of a budget buster.

And then they unfunded mandates from the federal government.

Environmental regular environmental mandates.

-- health the obamacare mandates are billions of dollars of unfunded federal mandates so.

We are not at all out of the woods were very concerned about the future but we just know that we're gonna not.

Increase taxes we're gonna increase revenues for economic growth and our pro growth policies -- -- -- had the right direction.

Where -- most difficult spending cuts come.

We made a bunch already I inherited a four point two billion dollar budget deficit my predecessor offered a to book billion dollar income tax increase -- said we're not doing that let's cut spending were backed almost 2006 levels.

In Virginia -- -- and it was health care with K12.

In other core services but I believe there are smart state employees would do a great job do more over the last and they did and you know it's worked at.

So let's talk about unemployment right now because.

Even -- unemployment rose slightly you're still -- six point 3% still well below.

The nine point 1% national average as you know you -- us jobs in the public sector as well as out of the information.

Industry so what's -- strategy for continuing to grow your job market.

I think what we've done is working you know we we know what we're good at in Virginia it's things like that technology Biotech.

Nano tech information systems defense contract in wine tourism agriculture so we're investing in those sectors will -- Gain more business well so this session are gonna focus on small business.

Manufacturing and the life sciences as things were.

We got a good good start but we can do a lot a lot better -- mean you can't be all things to all people we know we're good at Virginia we're gonna continue work on those things.

And then not just you gotta keep the fundamentals strong.

And be positive about -- business you know Wall Street.

It's been attacked by this White House they've not been positive about business and it's had a impact both on business.

And consumer confidence they need certainty and predictability in order to grow and we're gonna given that in Virginia.

-- we're gonna have to leave it there for time considerations but we certainly thank you for your time sharing your state story with us governor Bob McDonnell to do -- of.

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