THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, May 25, 1995 TAG: 9505250442
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Medium: 89 lines
For the third year in a row, Colorado gets top honors in a ``report card'' grading states for their economic performance, business vitality and development capacity.
Colorado was the only state to earn A's in each of the three subjects, the Corporation for Enterprise Development said Wednesday in its ninth annual ``Development Report Card for the States.''
Colorado, which the corporation called ``the valedictorian of this year's class,'' also had all A's last year. It earned two A's and a B in 1993 from the nonprofit corporation, which is funded by businesses, labor unions and private foundations.
Four other states - Idaho, Minnesota, Montana and Oregon - made the honor roll and seven - Delaware, Massachusetts, Pennsylvania, Tennessee, Utah, Virginia and Wyoming - earned honorable mentions.
States must achieve all A's and B's to make the honor roll. To earn honorable mentions, states much win two honor grades and a C.
Colorado, Montana, Utah and Wyoming are in the Mountain West, which the corporation said is the clear regional winner, reversing its standing at the start of the decade. The turnaround is no fluke, the corporation asserted.
``This region is an ideal example of the importance of investing in resources - excellent human resources, broad-based and equitable tax and fiscal systems and an improved physical infrastructure have given the region the tools to create a host of economic opportunities,'' said Brian Dabson, the corporation's president.
Other states in the Mountain West are Arizona, Nevada and New Mexico.
The corporation defines economic performance as a measure of the benefits and opportunities a state's economy provides its populace. Business vitality measures the dynamism of the state's business sector. Development capacity measures the state's capacity for future growth and recovery from economic adversity.
West Virginia ranked last for a second straight year, with F's in economic performance and development capacity and a D in business vitality. It had earned an F in business vitality last year.
Other states with two F's were Arkansas, which flunked business vitality and development capacity but earned a C in economic performance; Louisiana, with F's in economic performance and development capacity and a C in business vitality, and Oklahoma, which got F's in economic performance and development capacity and a B in business vitality.
Aside from the Mountain West, here are summaries of the corporation's analyses of other regions, which it did not rank:
Northeast: The region is not experiencing the economic recovery of other areas and may suffer from a lack of infrastructure investment caused by the weak economy. Still, it remains one of the strongest regions in development capacity and high-technology employment.
Industrial Midwest: This region has kept the gains in all three indexes last year, when the corporation described it as the ``Comeback Kid.'' The region must revive a stagnant entrepreneurial sector in much the same way it has revitalized its manufacturing sector.
The Plains: The area's economies generally are dominated by cycles of boom and bust in agriculture, energy and real estate. Although it improved its infrastructure recently, it still needs to strengthen its human, technology and financial resources.
The South: The region has improved its development capacity and tax and fiscal system, which are needed for future growth. But it still needs to improve job quality, including health coverage and wages.
The Pacific: These states have strong development capacity and unsurpassed human resources, but the similarities end there. Alaska and Hawaii depend heavily on their natural resources, while Oregon and Washington are affected by certain industrialized sectors. California, on the other hand, is diversified and self-contained economically - ``almost a nation unto itself.'' ILLUSTRATION: [Side Bar]
Virginia
Economic Performance A
Business Vitality C
Development Capacity B
North Carolina
Economic Performance C
Business Vitality D
Development Capacity C
KEYWORDS: REPORT CARD ECONOMIC RATING by CNB