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.
25 comments:
Shocker. Race to the bottom. Another deep red, Dem led failing state. You reference Ehrlich who was a great governor. He often said that MD had a giant sign out front that said, "closed for business". He tried as did Hogan but the same old anti-business ideology is deeply entrenched in Annapolis. Yes, by contrast, Glen Youngkin kicking butt and taking names. Stop voting these people in same old way in MD local and state.
Robert, thanks so much for all the work you put in, and thanks so much for laying all this out so well.
"The infrastructure picture in Maryland is so bad, we couldn't even keep the ancient White's Ferry operating." A typical right-wing lie, or should I say alternative fact. The ferry shutdown over a property dispute between two private land owners, that has nothing to do with Montgomery County or Loudoun County, and you know damn well this is the cause. Dyer, Dyer the daily liar in his town crier.
@10:25 - MOVE
There is no doubt Maryland is a state; of confusion that is!
Maryland is the wealthiest state in the country with effectively zero unemployment. To pretend we're languishing economically is hilarious.
The fact MoCo doesn't grow at the same rate as NoVa is because of people like you and JAC - people who complain and trash every new development higher than 3 floors and every new transit project that's proposed or funded. The same people who worship NoVa (which is of course extremely liberal, though that's apparently news to JAC) turn around and are the staunchest anti-growth NIMBYs at home. The cognitive dissonance is embarrassing.
12:29 - So, you're calling Robert a liar by suggesting what he posted isn't accurate that VA is #1 in this report and MD 31. Is that what you're saying? And MD is wealthiest state in the entire country? I think that needs to be challenged. I'm a pretty savvy consumer of the news and have never heard or seen that reported ever.
Disagree
12:29: You are making the common mistake of assuming unemployment rate directly correlates with health of the economy. Most of the jobs that all these people are employed at are located in Northern Virginia and Washington, D.C.
We are languishing economically, a reality that the Washington Post editorial board, former County Council staff members Adam Pagnucco and Jacob Sesker, and CE candidate David Blair have joined me in raising alarms about.
Our economy isn't moribund because we failed to build housing. It's moribund because we failed to attract the high-wage employers and corporate HQs that have led to the booming economy in Northern VA. That's a disaster, because - as our County structural budget deficit proves year after year - residential housing generates more costs in services and infrastructure than it does in tax revenue.
11:52: And yet our leaders are impotent to resolve it. There's a tool governments have in situations of public interest: eminent domain.
Bethesda is crowded with empty high rise buildings and eateries that close after a month.
In my neighborhood they built new homes which are on the market for over a year.
The only activity booming around here seems to be landscaping and lawn services.
Maryland has had the highest household income every year for decades, but JAC (who claims to be a long-time Marylander) has never heard that extremely basic fact so therefore it's not true. Sad.
@3:06 Only until the Elrich/MC Council leaf blower ban comes next July 1st where Bethesda is going to look a lot more lived-in.
Without the federal government this area would more resemble Baltimore and perhaps Elrich would be blaming Nixon like Johnson in Chicago.
And with those landscaping type jobs all our kids summer jobs ! And college jobs too. So many things we are losing! No more paper routes, today it's a noisy overextended adult in an SUV playing bad loud music delivering a Sunday party he or she couldn't have picked up a few years ago. On and on....
Va is incredibly welcoming. Employees , unlike Moco returns phone calls, nice and HELP the folks with issues with issues. Consistent policies and pride prevail as opposed to The JUST SAY NO ! And pervasive socialist policies of the Union leader, duped County exec Comrad Elrich. Did I mention Moco is Sanctuary county?
No wonder residents are leaving for cleaner safer environments.
12:29, don't tell me you're Judge Cratet, too?
4:29 - The posting by the blogger is about VA being number one in a recent report and Maryland being listed as 31. So, let's stay on that. So, are you saying that report is not accurate and Maryland is in fact doing great? I'm not sure that would be an accurate assessment.
Of course NoVa is more "business friendly" than MoCo, JAC. You and a thousand other boomers cry to your Messiah Marc NIMBY Elrich and get every proposed growth plan either vastly watered down or cancelled altogether. We can't even put in a bike lane or a 12 floor building without you pretending the world is ending. If you had your way downtown Bethesda would have a 20' height limit. And then you'll of course cry about the consequences of your own actions.
1:46 - I honestly don't follow
You seem to think that the state is building lots of bike facilities. In fact, two of the infrastructure projects you mention demonstrate how Maryland neglects bicyclists. The Master Plan for the InterCounty Connector included a parallel bike path. Governor Ehrlich chose to leave out the bike path. The Preferred Alternative selected for for the Governor Nice Bridge in 2012 included a barrier-separated bike path (like on the Woodrow Wilson Bridge). Governor Hogan decided to leave out the bike path. Perhaps the All-Powerful Bicycle Lobby isn't as powerful as the automobile lobby.
But then on the other hand, they've relegated two major thoroughfares to favor a small handful of people that use 1/3 of OGR and 1/2 of LFP. Twice a day there is standing traffic so some moonbat can bike to Aldi once a week. Makes total sense to those in Rockville who never use the road let alone during rush hour.
I see quite a few fellow cyclists very early in rhe morning. Plus, I'm on OGR more often than just my store runs, fwiw.
-Moonbat
10:42 makes an interesting point about standing traffic. So we all get to enjoy a larger cabin footprint so a couple of people can use a third of Old Georgetown Road, although 2:02 says a few do use the road during the early morning. Do they mean when there isn't any real traffic yet and could have simply shared the road?
Elrich and the council have simply failed to see the forest from the trees while they're pushing mandates the grid will never accept and in the meantime enlarging the carbon footprint for all.
5:01 AM More like they need to watch out for that tree!
Build a pedestrian and bike friendly crossing from Pooks Hill to Grosvenor. It's an abomination nowadays that that route is essentially impassable except by motor vehicle. Maybe then you can get back all of OGR.
10:42, you need to bike OGR sans bike lanes. It's treacherous ! There are long stretches where people do well over 60 mph, the 270 and 495 merges are accidents waiting to happen.
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