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

DATE: FRIDAY, May 26, 1995                   TAG: 9505260060
SECTION: BUSINESS                    PAGE: A-15   EDITION: METRO  
SOURCE: JEFF STURGEON STAFF WRITER
DATELINE:                                 LENGTH: Medium

ECONOMIC REPORT CARD GIVES VIRGINIA AN `A' FOR PERFORMANCE

Authors of a new economic report card gave Virginia an A for economic performance, an improvement from last year's B.

The Corporation for Enterprise Development in Washington, D.C., ranked Colorado first nationally and West Virginia last in its study, released Thursday.

Four states - Idaho, Minnesota, Montana and Oregon - ranked behind Colorado and seven others - Delaware, Massachusetts, Pennsylvania, Tennessee, Utah, Virginia and Wyoming - earned honorable mentions..

The kudos for Virginia echo similar studies in the past, said John Stroud, executive vice president of the Roanoke Regional Chamber of Commerce.

"We know we have a good business climate," he said.

While earning the top grade for economic performance, Virginia received a C for its business vitality, which measures the dynamism of the state's businesses. It got a B for future growth potential.

In overall marks, Virginia and Tennessee led 12 southern states. Virginia outscored North Carolina, often a competitor for new industry.

The new report could aid state-level economic developers, but it's too broad to become a promotional tool for the Roanoke Valley, said Beth Doughty, executive director of the Roanoke Valley Economic Development Partnership.

Some viewed the report with caution. Franklyn Moreno, executive director of the New River Valley Economic Development Alliance, said the word in economic development circles is that its authors are biased in favor of organized labor. He noted that the report criticized Southern states for low wages.

Carl Rist, a policy analyst at the Corporation for Enterprise Development, denied the charge. He said funds donated to the corporation by labor unions equal about 5 percent of its revenue and don't influence findings in reports.

The corporation analyzes economic and personnel issues and is a paid consultant for states and foundations. It has been compiling the state report card for nine years.

In other findings, the report described the Northeast's economy as weak but having the potential for a strong recovery, labeled the Midwest the ``Comeback Kid,'' and said the South has made strides but needs to improve job quality, including health coverage and wages.