CNBC released its annual America's Top States for Business list this morning, and as usual, our neighbor across the Potomac has cleaned our clock once again.
The cable network declared Virginia the top state for business in America. Maryland ranked 31st on the
list for 2024. Virginia Gov. Glenn Youngkin is already taking a victory lap this morning. "I am thrilled that our great Commonwealth has been named America’s Top State for Business," Youngkin said in a statement. Rest assured you won't be seeing a press release from Maryland today on the subject.
You won't be surprised to know that other states in the top 10 include Texas and Tennessee. But southern, right-to-work states didn't completely dominate the top tier, as union redoubts Minnesota, Michigan, and Washington came in at #6, #9, and #10, respectively. Pro-labor policies don't make for an anti-business state all by themselves.
Delaware surprisingly finished below Maryland. The First State is usually associated with corporations, but is apparently a better place to incorporate your business than to actually operate a business - in CNBC's evaluation. Of course, Elon would strongly disagree.
Why is Maryland failing? It isn't only our failure to attract Fortune 500 companies to the state.
Virginia has the third-best infrastructure in America, according to CNBC. Maryland's infrastructure is ranked way down at 37th-best in America. Ouch. This isn't surprising when you consider that Virginia has built countless miles of new highways; installed Express Lanes on I-395, I-495, and all the way down to Fredericksburg on I-95; expanded Metro subway service through Fairfax and Loudoun Counties to Dulles Airport; now has three passenger airports in Northern Virginia alone, including the vast array of international business destinations only accessible via Dulles Airport; and has greatly expanded - at its own expense - Amtrak and Virginia Railway Express rail service. CNBC also took note of Virginia's "shovel-ready" site availablity.
Over the same period, Maryland has built - well, not much at all. Maryland finally managed to replace the Nice Bridge over the Potomac River after many delays, only to see the Key Bridge in Baltimore collapse because state leaders for decades failed to make the necessary safety improvements they were warned to in 1980. The Purple Line delays speak for themselves. Gov. Wes Moore recently revived the plans for the Baltimore Red Line, but the state lacks any money to build it in the foreseeable future.
Likewise, there's no cash for commuter rail in Southern Maryland or a new Bay Bridge, and any financial drain from the operation of the Purple Line is already directed to take money from other transportation projects to cover the shortfall. Maryland continues to kick the solutions for congestion on I-270 and I-495 can down the road.
Montgomery County likes to cancel transportation infrastructure as much as it likes to ban things. Unless you are a bike lane, you are likely to be canceled by the County Council. The Council's transportation fails include announcing the cancellation of the Montrose Parkway East in White Flint on the very day that Amazon reps were touring the White Flint area during the Amazon HQ2 competition. Our talented County Council also canceled all of the major transportation infrastructure that was required to support its approval of massive housing development in Germantown, Clarksburg and Damascus - - the Corridor Cities Transitway light rail system, and the M-83 Highway. The Rockville Freeway? Removed from the master plan decades ago.
Maryland infamously continues to block construction of any new bridges over the Potomac River, denying itself congestion relief that might negate the need to widen the Beltway and I-270, as well as providing direct access to Dulles Airport that would be essential to attracting major corporations to the I-270 corridor. That highway extension of I-370 to VA-28 has an existing right-of-way from Gaithersburg to the Potomac River crossing site, but none of the intelligence, will, or leadership to build it.
The infrastructure picture in Maryland is so bad, we couldn't even keep the ancient White's Ferry operating. Remember when former Maryland Gov. Bob Ehrlich built an entire highway, the InterCounty Connector, all by himself? It is now, rightfully, named for him. Our leaders today are super low-energy, by comparison.
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| Former MD Gov. Bob Ehrlich |
Where else does Maryland fall short for business, according to CNBC? We're nearly the worst in America for the "Cost of Doing Business," landing at 47 out of 50.
"Right into the buckle - that's gotta hurt, Gene." Montgomery County has the highest tax burden in the Washington, D.C. region, and our County and State tax structures are simply not competitive with Virginia.
CNBC shares the growing consensus that the economies of Montgomery County and Maryland are moribund. Maryland's economy ranks 30th out of all 50 states on their list. And that's probably being very generous of them. Grading on a curve.
Maryland's score for "Workforce" is nearly as bad, at 28 out of 50. This is shocking given that we have some of the most highly-educated populations in America in several counties. But CNBC finds our workforce to be worse than average.
Virginia is #1 for education. Maryland is #14. This isn't surprising if you've watched the slow motion 100-car-pileup decline of Montgomery County Public Schools since the departure of Dr. Jerry Weast, the last MCPS superintendent who - for whatever faults he had - was actually professionally-qualified for the job.
Maryland ranks way down at #37 for "Business Friendliness." Virginia is #5 in that column.
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If you're an elected official in Maryland,
don't turn on CNBC today |
The news isn't all bad. Maryland rises to 16 out of 50 in quality of life. Texas is dead last in that category. But Virginia is only 3 points behind us at 19th. The Commonwealth was also 19th in cost-of-living. That means they beat us there, too.
CNBC also ranks Maryland in the top 10 states for Technology and Innovation, at #8. This is pretty surprising, too, but likely the result of Montgomery County's only economic bright spot, the biotech sector. Virginia has superior tech infrastructure, and has been home to many more notable tech firms, but somehow ends up at 15 in this category.
We already know that Montgomery County hasn't attracted a single major corporate headquarters in over a quarter century. But it's becoming more surprising by the day that Gov. Moore has been unable to attract such HQs or significant manufacturing facilities to the state. One of his biggest calling cards and selling points was that he was a successful Wall Street businessman. He regularly hobnobs and fundraises among the financial elite on Martha's Vineyard and in the Hamptons. Surely, his Rolodex is bursting at the seams with CEO phone numbers. But, perplexingly, he has yet to score a big win in the corporate HQ and factory races.
The CNBC list only reinforces what engaged observers in our County and State already know. We're in real trouble, folks. And the lack of business starts, development and growth are hitting the County and State budgets harder than ever. Just look at the latest County Council tax hikes (and ballot questions to facilitate even-bigger tax hikes starting next year), and the dystopian budget headlines out of Annapolis.
We can't go on like this.
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