Doing better than most
Report: W.Va. leads nation in economic growth during crisisBy DAVE PAYNE Sr.
PARKERSBURG - West Virginia has led the nation in economic growth since May, according to a report released this week by the Rockefeller Institute of Government.
The report doesn't portray rosy economic times for West Virginia, but says the state has been isolated from the shakeup of the finance industry, hasn't seen the popping bubble of an overinflated housing market and seen a boom in its coalfields an economic stimulus that has carried to other sectors.
The study looked at tax-revenue collections as an indicator of economic viability.
''I'd like to go around and bang on a drum and let everybody know," said Keith Burdette, president of the Wood County Economic Development Authority. "This report is just one measure. I don't get hung up on polls and surveys each one uses a different standard Forbes has us at one end, Rockefeller has us at the other. Both can't be right."
The report "The Damage is Just Beginning" examines how the economic downturn is likely to affect state government budgets, and cites figures showing that West Virginia was one of only 12 states to have an increase in economic activity from May through August.
Burdette said the state economy is more stable than elsewhere.
"We didn't get into the subprime mortgage business too much and our banks are really solid. While our businesses are affected by the global economy, they are starting off in relatively good positions," Burdette said.
Jean Grapes of South Parkersburg Realty said houses are still selling locally.
"If the house is priced right and it has a lot of appeal, then there is a possibility of a buyer for that. There isn't a buyer for everything and there isn't financing for some property, but sales are still going on in Wood County. The market is is down, but not bottomed out. The property prices have not come down there was no big boom to start with," she said.
The state ended the first three months of its budget year with $90 million about 10 percent of collections more that expected from general revenue taxes. Much of that has been driven by a strong demand for coal and natural gas.
Limited reliance on the devastated financial and insurance industries as a part of the state's economy helped isolate the state from the worst of the crisis. According to the study, financial and insurance businesses account for only 4 percent of the state's economy, ranking it 46th overall.
West Virginia's economy grew by 2.2 percent during that period, followed by Louisiana, with 0.7 percent growth, and Texas, at 0.6. At the other end, 36 states experienced an economic downturn during the three months, with Nevada (-2.1 percent) and Pennsylvania (-1.6 percent) hardest hit, according to the report.
"This shows from an independent perspective we are heading in the right direction," said Lara Ramsberg, spokesperson for Gov. Joe Manchin. "It's nice for West Virginia to be on top for a change. When we talk about growth, that is truly something to be pleased with. But at the same time, we know we need to continue to be responsible to sustain momentum and be mindful that the economic downturn in the national economy is something we all need to be concerned about."
The collapse of the financial-services industry is causing numerous problems for states who rely on those industries. Not only do those states see revenue lost on taxes levied on that sector of the economy, but less taxable investment income because of a declining stock market in addition to taxes lost through a decline of the economy in general.
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2Mudsock
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10-10-08 10:07 AM
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West Virginia continues to be at the bottom. It's hard to be any lower. Democrat rule has ruined the state and the nation.
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RickWT
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10-09-08 9:18 PM
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Another up side to being a small state - the sharks ignored us for larger fish. Our small banks may not be flashy or offer "free" services but at least they are stable.
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