Virginia has reclaimed its title as CNBC's Top State for Business this year, ousting the winner for the last two years (and the commonwealth's chief economic development rival), North Carolina .
Why it matters: The ranking is a bragging point for politicians on both sides of the aisle, and for state and local economic developers , who will definitely cite the win in future business recruitment efforts.
The big picture: Education, shovel-ready sites for new companies, infrastructure and — shockingly — a divided government are among the qualities that nailed Virginia the top spot, per CNBC .
- "In a rare feat this year, Virginia finishes in the top half or better in each of the study's 10 categories," CNBC wrote.
Zoom in: Virginia's public education system, both K-12 and higher education, is the best in the country, according to CNBC.
- CNBC credits the number of public colleges and universities, five HBCUs, and a 28% increase in state higher ed spending over the last five years for the No. 1 education ranking.
- Low teacher-to-student ratios, options for individualized instruction and "solid test scores" make Virginia's K-12 the best.
Plus, the state's infrastructure, including "virtual infrastructure" via data centers (70% of global internet traffic flows through NoVa), ranks third in the nation, per CNBC.
- That's despite the significant strain data centers put on Virginia's power grid, the network notes.
- And infrastructure includes those "shovel-ready" sites for companies that want to build quickly. The state's site-ready program is one of the best funded and most advanced in the the country
The intrigue: Much of what Virginia is doing well is thanks to a divided government that helps "moderate Virginia politics," CNBC writes.
- The network specifically noted state government compromises on education spending, which resulted in more money for schools and raises for teachers, Democrats successfully blocking a proposed 15-week abortion ban and an agreement that didn't raise taxes.
Yes, but: The state still ranks poorly by CNBC's measure for the cost of doing business, which includes taxes.
- "High business costs are Virginia's biggest weakness," CNBC writes.
Worth noting: With six first place wins in the award's 15-year history — including three in the last five years — Virginia is CNBC's "most decorated state" for the top business award, per the network.
- This year is also the first win under Gov. Glenn Youngkin, who was visibly giddy when accepting the honor on the network Thursday morning.
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