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Peter’s Take: McAuliffe Continues Economic Development Leadership

Peter’s Take is a weekly opinion column. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.

Peter Rousselot

Virginia Governor Terry McAuliffe continues to display effective leadership by tirelessly promoting economic development. McAuliffe is:

1. Working to end Virginia’s over-reliance on federal defense spending, and
2. Seeking to diversify Virginia’s economy to take up the slack.

McAuliffe was here in Arlington two weeks ago highlighting cybersecurity and biotechnology as two areas particularly poised for growth.

According to the Center for Regional Analysis at George Mason University, the decline in federal spending has contributed to a region-wide shift from higher-paying jobs — government contractor and subcontractor — to lower paying jobs:

The shift has helped drive down the region’s gross regional product, an indicator of an economy’s health, by nearly $243 million since last year. Fewer highly paid workers, in turn, has led to … higher office vacancy rates and–year after year–reductions in the projected flow of tax dollars that help pay for schools, roads and other government services.

Stephen Fuller, the Director of the Center for Regional Analysis, underscored the problem:

“We’ve just had it easy for so long that we’ve never had to work at this.” Steady increases in federal spending, which reached a peak of $80.7 billion in 2010, kept the Washington region relatively stable during the recession. But it also fostered a false sense of security. “The message is clear: We need to rebrand ourselves and promote our assets.”

Fuller’s message is exactly the gospel that McAuliffe relentlessly continues to preach:

We have to build our own new economy, less reliant on the federal government, bring in new businesses, new interests. That’s what [my] focus has been since taking office in 2014. In slightly more than a year as governor, there have been 350 economic development projects and $6.3 billion in economic activity.

McAuliffe has stressed the importance of workforce development, credentialing, and apprenticeships: “Virginia needs to keep pace with employers’ needs if it wants to retain large companies. [We] need to cater to the large veteran population in Virginia by offering certifications for skills learned in the military.”

He is working closely with Senators Kaine and Warner to block the next round of federal automatic across-the-board sequestration cuts. Those cuts currently are scheduled to take effect on October 1, 2015. In a nutshell, McAuliffe’s message on sequestration is: “there have to be smarter ways to cut the federal budget.”

Conclusion

The Arlington County government cannot rely on the federal government gravy train the way Arlington has in the past. We need to spend every one of our tax dollars wisely. Kudos to Governor McAuliffe for:

  • candidly explaining the situation, and
  • highlighting what all Virginia leaders must do to adjust to our new economic realities.

Peter Rousselot is a former member of the Central Committee of the Democratic Party of Virginia and former chair of the Arlington County Democratic Committee.

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