THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, April 17, 1995 TAG: 9504150002
SECTION: FRONT PAGE: A6 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 64 lines
The terrific news last week that Motorola Inc. is likely to build a $3 billion semiconductor plant near Richmond came with an ironic twist.
As part of an $85.6 million deal to lure the plant here, Virginia must agree to spend $16 million to develop an ``electronics-manufacturing curriculum'' at Virginia Commonwealth University and $5 million on work-force training at local schools and community colleges.
So here's the irony: (1) Earlier this year Governor Allen sought cuts in university spending as part of a plan to cut taxes and make Virginia more attractive to business. (2) The university cuts were defeated, partly through the efforts of three former governors, two of them Republicans. (3) Although no tax cuts were made, the state apparently has attracted what may be the country's biggest economic plum of the year. (4) The giant Illinois-based company demands more local university spending before it will build the plant.
Clearly, universities matter when it comes to attracting high-tech, high-paying jobs. Low taxes, alone, will not suffice. The big players like Motorola want topnotch universities, community colleges and high schools to train a steady stream of employees, who will be well-paid.
Former Govs. Mills E. Godwin Jr., Linwood Holton and Gerald L. Baliles were dead right in their Jan. 25 letter to the Virginia General Assembly opposing further university cuts:
``The economic progress we need will not happen if Virginia's universities remain mired near the bottom in public support when compared to other states.''
Over six tough years, Virginia had sunk from ranking 23rd in per-student funding of higher education to 43rd, and the cuts the governors successfully opposed would have dropped Virginia farther down the ladder.
Someone should tell Governor Allen that this is a low-tax state already and that we must now build ourselves up - through education. Fortunately, we are prosperous enough to do that without tax increases. We cannot do it with tax cuts, not while building prisons.
Paul W. Timmreck, who served four years as former Gov. Doug Wilder's secretary of Finance and is serving Governor Allen in the same capacity, said last week:
``I have never seen a letter from anybody complaining about our corporate income tax.''
That tax rate has remained at 6 percent for more than 20 years and is only a quarter of 1 percent over the top individual rate. This past fiscal year, less than 5 percent of all general-revenue funds came from corporate taxes. The lottery produces roughly the same amount of revenue (a little more than $300 million a year) as the corporate income tax. At least one year, the lottery produced more. And only a few states rank lower than Virginia in combined state and local taxes.
In announcing Motorola's interest in Virginia, Governor Allen said, ``Virginia is open for business again.''
Again? Virginia was never closed. And the commonwealth will attract the best jobs by pressing forward, with good roads, good schools and great universities - not by going backward.
Practically everything good begins with education. by CNB