West Virginia is starting to shed its old reputation as a state that doesn’t get the respect it deserves. Recently, S&P upgraded its outlook to positive, affirming the AA- rating on the state’s general obligation debt. This is a striking development, emphasizing the improvements in West Virginia’s financial health. According to S&P, “Our view of West Virginia’s positively trending credit quality reflects the state’s recent run of large budgetary surpluses, multiple ample reserve funds, and management actions to control costs.”
The turnaround in West Virginia’s fortunes is noteworthy, especially for voters in nearby states like Virginia and New Jersey, where new governors will be elected soon. Long seen as a struggling region, West Virginia is now thriving under strong Republican leadership. Former Governor and now Senator Jim Justice has played a key role in this resurgence. He stated, “We wanted to cut taxes, but we knew we’d have to pay for it. We wanted to make our roads better, but not put ourselves into debt.” His approach highlights the importance of fiscal responsibility in government management.
In addition to Justice, Rep. Riley Moore has also contributed significantly to West Virginia’s renaissance. He noted his tenure as State Treasurer, saying, “During my time as State Treasurer, West Virginia slowed growth of the state budget, grew our reserves by more than $800 million, enacted the largest personal income tax cut in history, and attracted record-breaking private investment to create thousands of new jobs.” This string of successes has brought West Virginia into a position that now garners respect from credit rating agencies and, by extension, potential investors.
The current gubernatorial races in New Jersey and Virginia illustrate a critical moment for those states. In New Jersey, voters are increasingly concerned with energy prices and taxes, mirroring the issues that have propelled West Virginia forward. Republican candidate Jack Ciattarelli is determined to boost energy production while reducing taxes, setting him apart from his opponent who promises to continue previous Democratic policies. This fiscal outlook is essential for attracting business and encouraging growth.
In Virginia, GOP candidate Winsome Earle-Sears stands to build on the success of current Gov. Glenn Youngkin, who has made strides in creating a favorable business environment. CNBC has recognized Virginia as the best state for business largely due to these efforts, highlighting the importance of stable governance in driving economic growth.
The history of states like West Virginia, Ohio, and Indiana reveals how they suffered under geopolitical economic policies that devastated local industries. The call for robust economic practices is evident, especially as the Trump administration has sparked a wave of investment across the nation. The potential for significant growth exists for states that adopt business-friendly policies, making upcoming elections crucial for voter decision-making.
As current Republican Governor Patrick Morrisey remarked regarding the S&P decision, “I am proud to oversee the first positive rating action by S&P regarding West Virginia’s creditworthiness in more than a decade.” This proud moment serves as a testament to what can be achieved with focused leadership.
Voters in Virginia and New Jersey have the opportunity to choose similar paths for their states. The example of West Virginia illustrates the benefits of responsible governance and sound economic policy. If these states can align with approaches similar to those in West Virginia, they might achieve their own stability and growth. The forthcoming elections are not just a choice of leaders but a chance to usher in a fresh era of economic opportunity.
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