Why West Virginia?

Doing business in West Virginia just makes economical sense, but don’t take it from us; reports reveal some of the top 20 statistical reasons industries choose West Virginia.

  1. West Virginia has balanced its budget and had a budget surplus for each of the past 8-9 years.

  2. West Virginia’s state’s cash reserves are the 3rd largest in the country. The state’s Rainy Day Funds now hold over $880 million, equaling 21% of the general revenue budget.

  3. West Virginia ranks third in the US for best budget health when comparing annual expenditures and long-term spending obligations (including future pension liabilities) with all available revenue sources, according to State Budget Solutions (an Alexandria, Virginia non-partisan organization that monitors state government finances and promotes fiscal reform). (By comparison the study ranked neighboring states; Virginia-32nd, Kentucky-36th, Maryland-39th, Pennsylvania-43rd and Ohio-48th.)

  4. All of the states pension funds are on schedules to make them actuarially fully funded and West Virginia became the first and only state to implement a plan to address OPEB (Other Post Employment Benefits) as mandated by the federal government.

  5. Average Workers Compensation rates have fallen over 60% since West Virginia’s Workers Compensation program was privatized in 2006.

  6. West Virginia was one of 18 states that weren’t forced to borrow funds from the federal government to pay unemployment benefits; allowing West Virginia to keep costs low for businesses. The remaining states that still had outstanding loans as of January 1, 2011 were forced to begin paying 4% interest on those loans. Balances not paid in full by December 31, 2011 resulted in a reduction of the federal credit against state unemployment taxes, which resulted in higher costs to businesses in those states. (By comparison surrounding states borrowed $440 million in Virginia, $880 in Kentucky, $2.3 billion in Ohio and over $3.5 billion in Pennsylvania.)

  7. West Virginia has not raised general business or consumer taxes in 18 years.

  8. West Virginia has cut business and consumer taxes in a fiscally responsible way. The corporate net income tax was reduced this year and is being reduced each year until 2014. The rate in 2014 will be 6.5%. The business franchise tax was reduced this year and will be eliminated by 2015. The consumer tax on food has been reduced and will be eliminated in 2013.

  9. West Virginia’s bond rating has improved in each of the past few years. Moody’s Investor Service elevated the state’s credit rating to Aa1. Fitch Ratings raised the state’s general obligation debt from AA to AA+, the second highest ratings possible. Fitch cited the “state’s consistently positive financial operations, including the expansion of reserves and on-going commitment to reduce long-term liabilities.

  10. West Virginia’s industrial electricity rates are below the national average. However, West Virginia has lead this region of the country in implementing environment controls on power plants and it is anticipated that the state will soon re-emerge as one of the lowest cost states for industrial electricity in the country as other states in this region comply with federal standards.

  11. The cost of doing business in West Virginia is the 9th lowest in the country (reported by Moody’s Analytical in Forbes Magazine). The study looked at labor costs, taxes and energy costs; when the cost of energy is removed from the equation, West Virginia ranks 3rd lowest.

  12. West Virginia’s cost of living is 5.6% below the national average (Wood County is 19.6%).

  13. In West Virginia, private homeownership is the highest in the country.

  14. West Virginia has the 2nd lowest turnover rate in manufacturing jobs.

  15. West Virginia ranked as the sixth most attractive location in the world for oil and gas development, and WV is focused on remaining a dominant player in energy production. In a recent survey of 135 worldwide locations by the Fraser Institute, The survey looked at 17 factors affecting investment decisions, such as labor availability, fiscal terms, and quality of infrastructure, regulatory compliance, legal system and stability.

  16. West Virginia ranked 2nd in the South for business development projects based on a comparison of project size and the state’s population (Southern Business Development).

  17. West Virginia’s Gross Domestic Product (GDP) is the 5th most improved in the country, with an increase of 4% in 2010.

  18. West Virginia’s state per capita income grew by 22.3% or 1 ½ times that of the nation’s growth over the past five reportable years (2005-2010).

  19. West Virginia ranked 3rd in the U.S. and one of only five states to see an increase in medium income, according to a New York Times study.

  20. West Virginia ranks 3rd in the country for best job creation potential according to a 2011 Gallup Poll.