Virginia’s new governor, Robert F. McDonnell, told lawmakers on Monday the state must retain its business-friendly environment, in part by barring tax hikes in the fiscal 2011 and 2012 budget. The state faces a $4 billion budget shortfall.

“We have fallen behind many neighboring states in the tax and regulatory incentives we offer, which cannot last,” McDonnell said in an address to the General Assembly outlining his budget plans. “Investment in job creation and economic development today creates new tax revenue tomorrow.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.