“Virginia is for Lovers” has been the state’s advertising tagline for decades now. It’s a testament to the slogan’s creators that’s it’s survived as long as it has. But longevity isn’t enough these days. Virginia needs more than lovers, it needs jobs. And to lure both to Virginia, the Governor and General Assembly are close to putting taxpayers into the hotel and waterpark business.
Legislation that would do just that is waltzing through the General Assembly. Under the proposal, the state and local governments would devote one percent of sales tax receipts to help developers complete their financing for a host of projects – be it a hotel, a waterpark, an entertainment center – the potential list is endless.
Does it make sense for Virginia and its perpetually cash-strapped local governments to get into the development business? No more than it does for the state to be in the liquor business. Still, it’s interesting to see that local governments aren’t raising more of a fuss. Lobbyists for these entities are notorious for fighting any proposal that would place another burden upon local finances. Here, though, they may believe the long-term pay-off more than covers the short-term pain (one hopes they remember that when schools, police, firefighters and others wonder why they are being shortchanged in future budgets).
It’s also interesting that the General Assembly is keen on the idea of holding back a portion of the sales tax to fund development, when the Senate was loathe to embrace the Governor’s proposal to allow Northern Virginia and the Tidewater to hold back a portion of their tax revenues to help fund local transportation projects.
Then again, you can’t get pay-per-view movies and room service on a residential street.
This entire package fits well within the Governor’s plans to open the taxpayers’ wallets a bit wider to spur economic development. But this aggressive brand of corporate welfare is still a bit new in a state where Harry Byrd’s mantra of pay as you go wasn’t just a slogan, but a way of life.
Those days seem to be over…put to rest by a gaggle of self-described conservative lawmakers who believe in the power of free markets.
