
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 5, 1990                   TAG: 9004040875
SECTION: BUSINESS                    PAGE: A11   EDITION: METRO 
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE:                                 LENGTH: Medium

VA. MAKES HONOR ROLL/ VITALITY AN A ON ENTERPRISE REPORT CARD

Virginia has raised its grade on vitality from a B to an A, moving up in the ranks on the annual Development Report Card for States compiled by the Corporation for Enterprise Development for 1989.

The state's three B's and an A put it sixth among the states on economic performance, business vitality, capacity and policy.

While giving Virginia a high grade, the corporation also voiced criticism of some practices and policies.

The state remains weak on unequal distribution of job and earnings growth, education and literacy needs, improvement in taxes, development financing and regulatory environment, the corporation said, pointing to Virginia's "high income disparities and the poor performance of its rural areas."

Maryland led the states with straight A's, followed by New Jersey with three A's and a B. Pennsylvania, Massachusetts and Connecticut tied for third with two A's and two B's.

The Washington corporation, financed by companies, labor unions and private foundations, designs its report card for public debate and assistance in determining what is needed to build a healthy economy, as well as improving both public and private economic policy decisions, the organization said. This was its fourth annual rating.

Although Virginia leads in international trade and local development assistance policy, the corporation ranked the state 40th in its tax and regulatory environment and 37th in tax fairness.

The corporation is concerned that state policies will increase the ability of localities to provide a sufficient level and quality of education, health and welfare services, said Janet Topolsky, speaking from its Washington office.

The report pointed to a need for improvement in the production of goods sold outside Virginia.

The state's "strong job and earnings growth are tarnished only by the unequal distribution of these gains" in the state, it said.

Doug Ross, corporation president, said the South "is surprisingly healthy and getting healthier . . . but the road to recovery is still long and uphill."

A decade ago, he said, states "were bleeding their resources dry just to lure the occasional footloose plant from outside their borders."

Today, he said, the states are encouraging local development by modernizing in-state businesses, easing their expansion and product development, educating workers and helping companies start.

The corporation found that more than 80 percent of the states have research centers and grants and use financing mechanisms that bring private money to help meet needs for business capital.

Last year, Virginia rated four B's; in 1988 it had three B's and a B, and in 1987 the grade was two B's, a C and a D.

by CNB