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byline: Kate Andrews

Looking back

In November 2021, Gov. Ralph Northam sat down for an interview with Virginia Business, looking back at his eventful four-year term. This is a transcript of the full interview, part of which was used in the January 2022 cover story, “A dramatic shift.” The interview has been edited for length and clarity.

Virginia Business: What gubernatorial accomplishments are you most proud of?

Gov. Ralph Northam: Just generally speaking, since I took office in 2018, our goal has always been to build a Virginia that works better for everyone — no matter who you are, no matter where you’re from. I’m very proud to say that we’ve done just that. As far as our accomplishments, I could talk a lot about what we’ve been able to do, but I think if you ask the average person on the street, “What’s the most important thing to you?” it’s certainly going to be a job that you can support yourself and your family with.

We’ve really focused on our economy. We’ve reached out to a lot of businesses that were growing here in Virginia and also businesses that want to come to Virginia. I just came back from a trip a few days ago to Europe, a [Nov. 7-12, 2021] trade mission. I talked to over 25 companies from five different countries. The enthusiasm, the excitement of companies wanting to come to Virginia is at a level that I’ve never seen and I don’t really think has ever been present.

They like Virginia for a lot of reasons, but certainly, our talented workforce. I had to talk about that in more detail, but we have invested in our world-class education system and companies recognize that. We’ve done so much good work with transportation. We’ve updated our port, put over a billion dollars in investments to dredge the channels, got deeper to 55 feet, and widened it to accommodate the larger ships coming out of the Panama Canal.

We’ve got billions of dollars in the queue for projects throughout Virginia. Transportation projects, a lot in Northern Virginia with the American Legion bridge and the Long Bridge, which is bringing rail and transit into Virginia more efficiently. The 95 coming down through Fredericksburg with the HOT Lanes and then all of the transportation projects in Hampton Roads, the Hampton Roads Bridge-Tunnel. I could talk more of the details, as much as you want about that.

We’re expanding I-81, expanding [Route] 58 where Lover’s Leap goes through Patrick County, so a lot of transportation. That’s really important to businesses. The fact that we’re moving toward renewable energy is a big deal with companies. Obviously, we’ve got a lot of solar projects going on in Virginia and now our off-shore wind putting out about 188 more wind turbines. We’ve already got two off the coast. I just had a big announcement with Siemens Gamesa Renewable Energy in partnership with Dominion.

U.S. Interior Secretary Deb Haaland speaks July 1, 2021 at the Port of Virginia in Norfolk, with U.S. Sen. Tim Kaine (left) and Gov. Ralph Northam standing by as Haaland announces the start of the federal government’s review of Dominion Energy’s offshore wind project.

We’re going to be able to service off-shore wind for all of the East Coast right out of Hampton Roads. That’s billions of dollars that we have now to pick up jobs, and so that’s a big deal. Then, a couple of other things I’ll just mention that we’ve been able to accomplish, but certainly our investment in broadband, that has been a top priority of mine since I’ve been in office. When we came in, see, Virginia was investing less than $4 million a year in broadband. A combination of what we’ve put into the state, what we got from ARPA and the private sector, we’re over $2 billion.

You contrast $4 million four years ago and now investment over $2 billion, and broadband will be universal in Virginia by 2024, so that’s a big deal. Then, health care, obviously, I’m a physician, but I worked hard to make sure that everybody in Virginia had access to affordable and quality health care. We expanded Medicaid and because of that, over 550,000 Virginians now have access to health care, and especially during a pandemic, that’s been really important.

I would say also, when we talk about what I’m proudest of and I have my background in health care, but we followed the science to keep Virginia safe during COVID-19 all while keeping our businesses open and thriving. In addition to our booming economy and it is booming right now, I’m proud that Virginia has been among the lowest case in death rates in the nation and we’re in the top 10 of all states for COVID-19 vaccination.

That didn’t happen in the past because, I think, [federal] leadership didn’t follow the science and the data in making decisions that were certainly difficult at times, but certainly keeping in mind that trying to keep Virginians as safe and healthy as we can. Then, hey, the last thing I would mention, and I’ll be quiet if you want, but I will tell you what it’s so important — and I hear it every day — is the fact that Virginia is a welcome state in terms of inclusion. We’ve done a lot to protect women’s health care in Virginia.

We’ve done a lot to prevent discrimination against the LGBTQ community. Companies have recognized that and they will not go to a state that is not inclusive, a state that doesn’t embrace diversity. I have put Virginia in a really good position. Just to sum things up, companies are excited about coming to Virginia.

VB: Is there anything particular that you have learned during your term, and what do you wish you had more time to do?

Northam: It’s a great question. As you know, I’m a child neurologist, so I believe that there’s power in every child, that every right has the right to a world-class education, and so, Pam, my wife, and I have worked very hard to make sure that three- and four-year-olds in Virginia have access to early childhood education. I don’t think the results of that we’ll be seeing this year or next year, but I think in 20 years from now people will look back and say, “Wow, that was really a big accomplishment.”

We’ve put this template, if you will, in place to make sure that all the children have access. We still need to do some funds for that. I’ll plan on doing that in my 2022 budget. There’s still some work to do there, but I think every child should have access to early childhood education. Then the fact that I ran in 2017 on the G3 program [Get a Skill, Get a Job, Get Ahead community college initiative], and we’ve been able to put that in place.

That has been very successful. A lot of Virginians just go to our community colleges not having to pay tuition and also have costs wrapped around services to include transportation and child care, so that’s a really good program. Since you’re writing for a business magazine, I’ll tell you something that companies really like is our Talent Accelerator Program.

We actually go on-site and see what the requirements are for their employees, and then come back, and we train those employees. When their business starts, they already have the workforce in place. That is something that [Virginia Economic Development Partnership] along with the Virginia Community College System worked on. This is a model for the rest of this country, so that has been very successful.

There are a couple of community colleges that we have as models, but I would like to see on-site quality child care in all of our community colleges in Virginia. A lot of our students that are being trained and retrained for their jobs, it’s really important as they pursue their education to have access to quality and safe child care. That’s something that we’ll continue to work on.

VB: I wanted to go back to February 2019, when the blackface photo in your yearbook was made public. Obviously, that was a tough time and there was a lot of turmoil. Did you ever consider resigning? If you did, what convinced you to stay in office?

Northam: That was a difficult time for Virginia. I am pleased that Virginia stuck with me. I travel around the commonwealth and listen to a lot of people. I’ve learned a lot. I think people have always heard me say, “The more I know, the more I can do.” What I learned, I was able to turn into action and I think, because of that, Virginia is in a much better place.

We’re a welcoming state. We embrace diversity, and we’re inclusive. I think that it was a difficult time for Virginia, but Virginia stuck with me. We’ve been able to learn and build, and we’re in a much better place. I think that’s reflected in our business environment. Like I said, companies want to come to Virginia because we embrace diversity, and we’re inclusive and we’re welcoming.

VB: Was there one particular person who did support you behind the scenes? Because you say Virginia stuck with you, but there were a lot of people who were calling for you to resign. Was there somebody who said, “I’ve got your back,” or just something that really made you feel like you were doing the right thing in that moment?

Northam: I think there were a lot of people that supported me. I think Virginia — I reached out and they were receptive. They supported me, and I think the rest is history.

VB: What do you think was the most important result of this event? How did it change your priorities with regard to legislation or other policies?

Northam: I’ve always been a listener, and equity has always been very important to me. It’s been a top priority of my administration. When this happened, I sat down with my cabinet secretaries. We said we still have a number of inequities in Virginia, whether it be access to health care, access to world-class education, access to business opportunities, access to voting. I asked my cabinet directly to focus on the work that they were doing, and make sure that equity was a large part of that. That’s what they’ve done, and I think that’s why we’ve been as successful as we have.

VB: I had the pleasure of talking to Janice Underwood, Virginia’s — and the nation’s — first chief diversity, equity and inclusion officer. How important was it that she came on board?

Northam: She’s done a very good job. I oversee over 100,000 state employees, [and] I think it was obvious that this diversity, equity and inclusion needed to be a part of how we govern Virginia. No state has ever had a Cabinet-level position that deals with DEI. We did a job search, and we had over 30 interviews, and we were very satisfied and pleased with Dr. Underwood’s resume. I met with her a couple times before we offered her a job.

She’s come in and started the program, One Virginia Plan. It reaches out into our cabinet secretaries. It reaches out into our agencies here, into our colleges [and] universities, and she has just done an amazing job. Again, as I said earlier, Virginia is a better commonwealth, a better state because of her efforts, and because of our initiatives to make that hire. 

VB: Was there one particular person or group that you heard from in 2019 that helped you create policies, maybe something that you hadn’t thought about doing, but you decided it was a high priority for you?

Northam: I pretty much went on a listening tour. I traveled around the commonwealth, met with a lot of groups, and just learned a lot and then I was able to bring that back to Richmond and turn it into action. We’ve put a lot of emphasis, for example, on the disparities in maternal and neonatal health, I’m very proud of that. We’ve offered financial aid to undocumented students. We’ve been working on tribal justice.

VB: I wanted to ask you about the past two years’ legislative agenda. As you’ve noted that Virginia has passed some of the most progressive legislation ever in the South, do you think that that led to the Republicans’ wins in November? Do you think this was a reaction by people who just thought this is too much?

Northam: The measures and the legislations that I’ve led and we passed, it’s what the people of Virginia wanted, and we’re in a better place now.

Probably the toughest day of my four years was when I was called and heard that there was a mass shooting in Virginia Beach.

I got in the car and drove very quickly to Virginia Beach. On my way there, the number of the casualties continued to rise as well as those that were injured. We lost 12 Virginians to that tragedy. As a result, I hope you remember this, I called the legislature back to Richmond for a special session. The Republicans took less than 90 minutes and then adjourned. Nothing was done. Virginians said “enough is enough,” and so we brought back the commonsense gun pieces of legislation. They were passed. That’s a result of listening to what Virginia needed.

Another example, look at the disparities with the use of marijuana. People of color and white Virginians use marijuana at the same rate, but people of color, Black Virginians are three times more likely to get arrested and convicted than white folks are. I pushed hard on that to really deal with that disparity. I’m proud of that.

The death penalty is another example. Virginians said it was time after 400 years that we stop the death penalty in Virginia.

There’s been a lot of examples like that: We listened to Virginians, we took action. I think history will show that Virginia’s a better place. I really don’t think a lot of that had anything to do with the recent election. 

VB: What do you think was the reason behind the election results, then?

Northam: It’s part of democracy. What happened is that more people voted for Glenn Youngkin against Terry McAuliffe, and so he’s the governor-elect. That’s what makes our democracy strong and again, as far as I’m concerned, I’m not going to be able to play Monday morning quarterback.

I will say that history will show that these four years that we have been in office here has been probably the most successful administration in Virginia history. That is a testament to the tremendous team that I’ve been able to put together.

VB: Obviously, the COVID-19 pandemic has taken over a lot of your term. What was the most difficult part of dealing with that and communicating to Virginians how to stay safe?

Northam: As a doctor, I follow the science in keeping children safe during COVID-19. I followed the data, and Virginia is one of the top states. We have one of the lowest case [rates] and the lowest death rates. I look at the numbers every day,. We’re having around 1,400 to 1,500 new cases a day, and 30 to 35 deaths per day.

I’ll repeat that, 30 to 35 people in Virginia are dying every day because of COVID-19, and it is totally avoidable. We have worked so hard to make sure that we have [personal protective equipment] in Virginia. We’ve worked hard to make sure that we have testing capability. Now, we have three safe and effective vaccines — the Moderna, the J&J and the Pfizer — and we have done everything that we can to make sure that we’ve taken the vaccines to the people of Virginia.

There are a number of individuals that have said, “No, I don’t want to get vaccinated. I don’t want to wear a mask. I don’t want my children wearing masks in school.” That’s been one of my largest frustrations. Virginia has done well, but we probably could have had this pandemic in the rearview mirror if everybody would be part of the solution, if everybody would look at this like a biological war, which is really what it is.

It’s not between people, it’s between us and a virus, and the science is clear. People need to roll up their sleeves and get the shot, and then we can put this behind us. That’s been a frustration for me. 

Gov. Ralph Northam receives his Johnson & Johnson COVID-19 vaccine at the Virginia Executive Mansion on March 15, 2021. Credit: Jack Mayer/governor’s office

VB: You’ve talked about your own COVID case from September 2020 and not being able to smell or taste. Is that still the case? Do you think those senses are ever going to come back?

Northam: Yes. [laughs] If I had a crystal ball, maybe it would be helpful.

It’s a little bit more complicated than “can’t smell and can’t taste.” I can smell a little bit, but it’s not normal. I don’t want to get into all those medical reasons for that. Now, my taste has been affected as well. The bottom line is that I’m still alive, thankfully. It could have been a lot worse. I’m dealing with that, it’s not a big problem.

I just would encourage everybody else out there, don’t take the chance or you’ll lose your smell or your taste or have other long-term COVID side effects. Or worst-case scenario, you could die.

That would be my encouragement, to get out there and get vaccinated and put this behind us.

VB: Have you gotten your booster? 

Northam: I have. My initial shot was the J&J, which you probably know is a one-time shot, and then a couple of weeks ago, when it was available, I got the Moderna booster. I would encourage all parents to have their children, 5 and above, vaccinated.

VB: What are your plans after leaving office?

Northam: Back in the late ’90s, I co-founded and I’m a co-owner of a group called Children’s Specialty Group [in Norfolk]. We started with about 30 pediatric sub-specialists, and I’m a child neurologist. We have pulmonologists, cardiologists, hematologists. Now, we’ve grown our group to about 100 pediatric sub-specialists. We employed around 250 people, so I’ll go back to patients. In January, I’ll go back and join my practice.

VB: The presidency of the Eastern Virginia Medical School, your medical school, is open. Have you thought about it?

Northam: Well, I’m focused right now on getting back to my practice. There’s a lot of children out there with neurological issues that hopefully could use my services. I’m looking forward to going back to my practice, working with the children and their families. 

VB: We haven’t even touched on Amazon, but HQ2 was a huge deal during your term. What do you think will be the biggest impact of that deal? Are there any other economic development projects that happened during your term that you think will impact business in Virginia in coming decades, maybe something that was lower profile than Amazon?

Gov. Ralph Northam announces that Northern Virginia will be home to a new Amazon headquarters in November 2018. AP Photo/Susan Walsh

Northam: Just two days ago, I was at National Landing Park [in Arlington] to celebrate the three-year anniversary of Amazon choosing Virginia as its next home. They have literally transformed Crystal City, which is now National Landing. It’s just amazing to see what is done for Virginia’s economy. When we negotiated that deal, 70% of the incentive package [for] Amazon goes right back in investment in Virginia.

We knew this was going to be necessary; a lot of it is going back into workforce development. There [will be] 31,000 additional degrees in higher education in computer science and technology, which is the groundbreaking for the Virginia Tech Innovation Campus. To keep that pipeline open between the education system and the business sector is really important. A lot of those individuals will probably work for Amazon, but it’s not required, so they can work in a lot of businesses.

A large part of that 70% investment was in infrastructure in that area and also affordable housing. We have made a lot of progress — and still [have] a lot of work to do — but we made a lot of progress making sure that people have a roof over their heads, especially during COVID-19 with our Rent Relief Program.

When we talk about the site development — the permitting, the utilities, the energy, the transportation, all of those things that go into site development — we really have to continue to focus on affordable housing.

We just had that announcement in Wythe County that we’re adding 2,500 employees to a company that makes nitrile gloves. When you say, “Well, that sounds good, but those people need a place to live,” part of that site development has to be in planning for affordable housing, and I think we have a good recipe for that.

Overall, again, just to summarize things, Virginia is doing very well right now, and I’m proud of this work that we’ve been able to do. When I turn the keys over in January, I can promise you the new government [will have] financial reserves and the largest surplus in history, a booming economy with more job opportunities than ever before, and public housing. This is important; housing policies have made Virginia the most welcome and inclusive state in this country.

VB: What do you think your enduring legacy will be? 

Northam: I think, as I said earlier, it’s been my goal to just really build a Virginia that works better for everyone no matter who you are or where you’re from, and so that’s overall what I’m proud of. I’m proud of the team that we put together way back during transition. My cabinet secretaries are so talented. They’ve done so much good work. It’s also the most diverse cabinet in the history of Virginia and a majority of women, so [I’m] very proud of that.

All the other things that we’ve been able to do in Virginia, I don’t know if I’d rank them one higher than the other, but again, just making a Virginia that works better for everyone. That’s what we’re proud of.

VB: I wanted to ask you about VMI and the investigation into racism and sexual harassment there. How are you feeling about that process?

Northam: I think the mission of VMI is [as] important today than it ever has been to train citizen soldiers that embrace integrity and dignity and honor, and, obviously, it’s what gave me the foundation that I’ve built my life on.

I am pleased with the new superintendent, [retired U.S. Army Maj. Gen. Cedric Wins]. He has tremendous vision. He’s obviously an alumnus, a wonderful military career.

He is working very closely with the Board of Visitors, and they have great vision and realize that the school has to reflect who we serve. They get that, and they are making VMI a more welcoming, more inclusive school, and so I think VMI is better for that. I’m very proud of the work that has been done and will continue to be done. 

VB: Do you think that the students and alumni have bought into it?

Northam: No question.

VB: Is there anything else you want to talk about?

Northam: I’ve already spoken to this just a little bit, but I think this administration is probably, in the history of Virginia, the most progressive and also the most successful in Virginia history. At the same time, our economy is doing better than it has ever done. It’s proof that you can have both. We can have a progressive plan and administration, and we can have an economy that’s doing excessively well. I think that would be the legacy that I’ll leave behind.

VB: Is there anything that you wish to say to Gov.-elect Glenn Youngkin, any advice that you want to give him?

Northam: I’ve had a couple of really productive meetings with Gov.-elect Youngkin, and I’m really not one to give advice. I answer and I listen, answer the questions, but I’m confident that he will lead Virginia well.

A dramatic shift

Four years ago, no one would have guessed Gov. Ralph Northam would lead the most progressive Virginia administration in modern memory.

A native of Onancock on Virginia’s Eastern Shore, as well as a pediatric neurologist and Army veteran, Virginia’s 73rd governor was eyed by some Democrats with suspicion after acknowledging he’d voted twice for President George W. Bush and had been courted by Republicans to switch parties while serving in the Virginia Senate.

As Northam prepares to hand over the Executive Mansion’s keys to Republican Gov.-elect Glenn Youngkin on Jan. 15, he leaves behind a legacy of governing amid a deadly global pandemic and perhaps the most racially tumultuous period in decades.

And his tenure as governor almost ended barely a year into his term.

The date everything changed was Feb. 1, 2019. In the middle of the General Assembly session, a photo from Northam’s 1984 Eastern Virginia Medical School yearbook pages depicting a person in blackface and a second person wearing a Ku Klux Klan robe first appeared on a right-wing website. Northam quickly apologized in a video statement, acknowledging he was in the photo, although he did not specify which person was him.

State and national news media crowded into the marble halls of the Virginia State Capitol, waiting for the governor to resign in disgrace. State lawmakers issued statements condemning the photo. Former Democratic Govs. Terry McAuliffe, Tim Kaine and Mark Warner all called for Northam’s resignation. Rumors flew among state government workers and politicos that the governor would be stepping down imminently.

The day after his first statement, however, Northam held a press conference, this time denying he was in the yearbook photo but acknowledging a separate occasion during which he wore blackface dressed as Michael Jackson for a party. First lady Pamela Northam prevented the governor from demonstrating his moonwalking skills for the assembled media.

Amid the political pressure, it didn’t appear there was any path forward for Northam to remain in office — but stay he did, due to a confluence of events.

“I am pleased that Virginia stuck with me,” Northam says. 

But it wasn’t as simple as that. Without a separate set of circumstances, Northam would likely have been a goner.

Pressure continued to mount for Northam to resign, which would have seen Lt. Gov. Justin Fairfax ascend to governor. However, in the days that followed, two women made sexual assault accusations against Fairfax, charges he denies. As it looked like Fairfax too might resign, the chaos surrounding Virginia’s top Democrats continued. Attorney General Mark Herring admitted to wearing blackface at a University of Virginia Halloween party in the 1980s.

That bought Northam extra time.

He turned to Black clergy members and other community members, meeting with them in private to listen and learn over the next couple of months.

“I reached out, and they were receptive,” Northam says. “They supported me, and I think the rest is history.”

Depending on one’s political point of view, Northam either went on to earn Virginia a reputation as the most liberal state in the South through a sincere effort to make amends, or he made a dramatic, two-year effort to rescue his political career and authored his own party’s losses in November 2021.

Cheryl Ivey Green, the executive minister of the First Baptist Church of South Richmond, recalls meeting with Northam during that early period as part of a clergy group. Northam was “refreshingly honest about what happened,” she recalls. “What he made was a commitment to make it right and do right.”

Virginia Gov. Ralph Northam, left, gestures as his wife, Pam, listens during a press conference in the Governors Mansion at the Capitol in Richmond, Va., Saturday, Feb. 2, 2019. At the time, Northam was under fire for a racist photo that appeared in his college yearbook. (AP Photo/Steve Helber)

Green is the chair of the Virginia African American Advisory Board, which Northam created in March 2019 to advise him on areas of interest to Black Virginians, particularly education, health care, public safety, criminal justice and issues impacting small, Black-owned businesses. Green says she doesn’t know if the governor would have focused as much attention on Black concerns if not for the scandal — possibly because as a white man, he had not encountered racism on a personal level.

“When God opens a window because of an issue called ‘blackface’ or whatever, it’s used to open doors for things people like me have been fighting for for years,” Green says. “I’m just grateful he used that, but it took great courage to say, ‘I want to do right.’”

In May 2019, Northam created the nation’s first state cabinet-level post to focus on diversity, equity and inclusion within state government, tapping Janice Underwood in September 2019 as the state’s inaugural chief diversity officer, a position now preserved in Virginia code.

Tragedy, and a shift

Northam did not reemerge publicly in a prominent way until Memorial Day weekend 2019, when a gunman shot 16 people, killing 12, at the Virginia Beach municipal building. Police shot and killed DeWayne Craddock in a prolonged gunfight 35 minutes after the first shots were fired.

That was probably “the toughest day of my four years,” recounts the governor. “I got in the car and drove very quickly to Virginia Beach. On my way there, the numbers of the casualties continued to rise, as well as those that were injured.”

In assuming the familiar role of comforter-in-chief, Northam was able to place his blackface scandal on the back burner. He quickly called the Republican-controlled House of Delegates and the Democratic-controlled state Senate back to Richmond for a special session to enact gun control legislation.

“The Republicans took less than 90 minutes and then adjourned,” Northam says matter-of-factly. “Nothing was done.”

In November 2019, in what Northam attributes to voters saying, “enough is enough,” Democrats won control of the state House for the first time in nearly three decades — although the victory also was likely a reaction to the deeply scorned Trump White House and demographic shifts toward younger, more liberal and racially diverse populations in Northern Virginia.

Led by a previously moderate governor who was indebted to Black leaders who had supported him following the scandal, Democrats in the General Assembly had the power to pass a slate of the most progressive legislation ever seen in Virginia.

Within two years, personal possession of marijuana was legalized, the death penalty was banned, the state created its own voting rights act, minimum hourly wages rose, and abortion restrictions were rolled back. Northam also declared he would remove the state-owned monument to Gen. Robert E. Lee in Richmond, calling it a relic of the Jim Crow era and a symbol of white supremacy. He also launched a state investigation into racist incidents at his alma mater, Virginia Military Institute, following investigative news reports in 2020.

Republican Del. Todd Gilbert, who will become speaker of the House this month after two years of Democratic control, says Northam and state Democrats overreached with their agenda, contributing to Republicans’ dramatic statewide sweep in the November 2021 elections.

A “very cordial” relationship between Republicans and Democrats at the start of Northam’s term “abruptly ended on that day when the revelations of the blackface [photo] occurred, and I don’t know that I’ve spoken to [Northam] since,” Gilbert says.

“There were things that I would never [have] thought that a more middle-of-the-road Gov. Northam would have signed into law, that he was more than willing to sign into law to try and rehabilitate his image,” Gilbert adds. “Pretty much anything that the progressive left was feeding to him, he was putting pen to paper and making it the law of Virginia.”

Northam, predictably, takes a different view, declining to analyze the reasons behind his party’s losses.

“It’s part of democracy,” he says. “More people voted for Glenn Youngkin against Terry McAuliffe, and so he’s the governor-elect. I’ve had a couple of really productive meetings with Gov.-elect Youngkin. I’m confident that he will lead Virginia well.”

Shutdown in Virginia

It’s possible that Northam and state Democrats would have made even more progressive strides if not for the COVID-19 pandemic and its resulting economic crisis. In March 2020, when Virginia recorded its first coronavirus cases, Northam took on a new role as public health leader.

In daily news conferences, Northam reported the commonwealth’s latest case numbers and death statistics and issued a series of executive orders aimed at limiting the spread of the virus. Social distancing and mask mandates encountered some pushback, typically from Republicans following the lead of President Donald Trump, who had declared the country would be back to normal by Easter 2020. By contrast, Northam was cautious, ordering broad shutdowns of schools and “nonessential” businesses through early June.

In September 2020, Northam and first lady Pam Northam contracted COVID-19. The governor says his sense of smell has returned a “little bit, but it’s not normal,” and his sense of taste is still dulled. “The bottom line … is that I’m still alive, thankfully. It could have been a lot worse.”

Although vaccines received federal approval in fall 2020, and vaccination of frontline medical workers started in December 2020, Virginia and other states hit a severe vaccine bottleneck in January 2021. Northam had just declared that doses would be made available to everyone age 65 or older, relying on a promised federal stockpile of vaccine doses that did not materialize. The governor unexpectedly found Virginia ranked last in the nation in vaccine administration efficiency.

“We were really supply-constrained,” recalls Dr. Danny Avula, the state’s vaccine coordinator.

In early January 2021, Northam “called us into the situation room” to discuss the problem, Avula recalls. The Virginia Department of Health “was not going to solve this on its own but needed the breadth of government.” Avula remembers the governor saying that “this had to be an all-hands-on-deck approach.”

By March 2021, the supply problem eased, only to be replaced with a growing unwillingness of some people to get vaccinated.

If there was one thing that rankled the governor publicly, it was outright opposition — primarily on the part of Republicans — to wearing masks and getting vaccinated. Northam saw it as a deadly politicization of a health crisis that has resulted in the deaths of more than 800,000 Americans in less than two years.

The usually mild-mannered Northam would sometimes call people who flouted COVID mitigation measures “selfish” during news conferences, saying they were putting health care workers and the general public at risk.

Even in November 2021, when Virginia was ranked No. 10 out of the 50 states for percentage of its population who were fully vaccinated against the coronavirus, Northam was still frustrated that 30 to 35 Virginians were dying per day, a “totally avoidable” toll, he says.

“Virginia has done well, but we probably could have had this pandemic in the rearview mirror if everybody would be part of the solution, if everyone would look at this like a biological war, which is really what it is.”

Economic wins

Even amid the pandemic, the blackface controversy and the Democrats’ progressive agenda, one recent feature of Virginia politics remained steady through Northam’s term: economic development wins.

In November 2018, Amazon.com Inc. announced it would be locating its $2.5 billion-plus East Coast HQ2 headquarters in Arlington, bringing approximately 25,000 jobs. CNBC cited the deal in 2019 while anointing Virginia as its Top State for Business, an achievement Virginia repeated in 2021 after a one-year postponement in the rankings due to the pandemic. A plethora of big deals from Microsoft, Google, Facebook, Siemens Gamesa and other major corporations followed.

Stephen Moret, who was president and CEO of the Virginia Economic Development Partnership from January 2017 through December 2021, says Northam was always willing to meet with business executives to seal economic development deals, and the governor’s cabinet members were particularly accessible.

Northam also invested heavily in workforce training, including the state’s Tech Talent Investment Program to produce more than 31,000 computer engineering and science graduates over 20 years, and VEDP’s Virginia Talent Accelerator Program, a collaboration with the Virginia Community College System to provide free job training and assistance for companies locating or expanding in the commonwealth.

“I always found [Northam] to be smart and thoughtful,” Moret says, adding that, unlike some political leaders, Northam was willing to share credit for successes. “Governors love to make the announcements, but a lot of people contribute to these projects. I see his legacy as a combination of commitment to rural Virginia — particularly broadband access — and his support for major advances in talent development.”

Northam, who plans to return to his medical practice in Norfolk after his term ends, takes pride that his administration was “probably, in the history of Virginia, the most progressive and also the most successful. Our economy is doing better than it has ever done. It’s proof that you can have both. I think that would be the legacy that I’ll leave behind.” 

U.Va. alumni make $5M gift to fund professorship

University of Virginia alumni Donna and Richard Tadler made a gift of $5 million that will be used to create a professorship of entrepreneurship at their alma mater, U.Va. President Jim Ryan announced earlier this month.

The gift will be matched with $5 million more from the university’s Bicentennial Professorship Fund, for a total investment of $10 million, according to U.Va.’s announcement. The Tadlers, who live part time in Charlottesville, met at U.Va. and were married there in 1979. Richard Tadler is a 1978 graduate of the McIntire School of Commerce and has worked in private equity funding for 40 years. He is presently a senior advisor at TA Associates, where he has worked since 1987, and is based in Boston. Donna Tadler is a 1979 graduate of the School of Education and Human Development, and she worked previously at CYRK Inc.

“Much of what matters to donors is the opportunity to work across schools and curriculums,” Richard Tadler said in a statement. “That’s why a university professorship is so compelling to us. Entrepreneurship is still in the very formative stages in academic circles, and we wanted to focus on something that will be transformative for a university that was so important to both of us. This is a chance to include entrepreneurship as one of 10 very significant academic fields that can be raised to a higher level at U.Va. We are honored to help make that happen.”

U.Va. started the university professorship program to award distinguished scholars whose work is interdisciplinary, allowing the recipient to teach in any discipline at the university. The president and provost will appoint the holder of the Tadler professorship.

“Nurturing an entrepreneurial culture at U.Va. requires smart investment in faculty,” Ryan said in a statement. “With this university professorship, Donna and Richard Tadler are giving students across Grounds the opportunity to learn business and life skills that will foster growth and success. Donna and Richard are active and devoted alumni, and I am incredibly grateful for their generous gift. Their thoughtful investment will yield long-lasting benefits to our community.”

Former MUFG Americas head tapped as next Va. finance sec

Stephen Emery Cummings, who retired in March as the president and CEO of Mitsubishi UFJ Financial Group (MUFG) in the Americas, has been chosen as Virginia’s next secretary of finance, Gov.-elect Glenn Youngkin announced Wednesday.

“Lowering taxes and restoring fiscal responsibility in Richmond is a primary focus of our Day One Game Plan, and Steve’s experience and expertise will help make sure we deliver real results for Virginians. Steve shares my vision of respecting Virginians’ hard-earned tax dollars and ensuring the commonwealth’s budget is managed effectively and efficiently, and he has the skillset and leadership qualities that our team needs to make Virginia the best place to live, work, and raise a family,” Youngkin said in a statement.

Cummings has a long resume in the area of investment banking, having also served as managing director and chairman of UBS’ American investment banking branch, Wachovia Corp.’s global head of corporate and investment banking, and chairman and CEO of Bowles Hollowell Conner & Co.

A graduate of Columbia Business School and Maine’s Colby College, Cummings was the first non-Japanese CEO for Mitsubishi’s American market upon his hiring in 2015, and he oversaw the U.S. businesses held by the Bank of Tokyo-Mitsubishi UFJ, as well as serving as a member of MUFG Union Bank’s board of directors. He has been based in New York.

Aubrey Layne, Virginia’s former secretary of finance, joined Sentara Healthcare as its senior vice president and chief of staff in July. Youngkin, a Republican, takes office Jan. 15, 2022.

Virginia named top business climate in U.S. by Business Facilities

Business Facilities magazine, a trade publication that focuses on corporate site selection and economic development, has named Virginia first in the nation for its overall business climate, Gov. Ralph Northam announced Tuesday.

The state joins fellow honorees Tennessee (recognized for best dealmaking) and Massachusetts, recognized for its workforce and educational system in Business Facilities’ annual ranking of the states. Virginia last won Business Facilities’ state of the year award in 2018, followed by Texas in 2019 and North Carolina last year.

“For the first time, we thought it was appropriate to name three winners in this prestigious process,” Business Facilities Editorial Director Seth Mendelson said in a statement. “As businesses look to expand or relocate, the questions they have about communities are becoming more complex. They want to know as much as they can about a community before making a final decision. We think this is going to help them make informed choices. The commonwealth’s location, right next to the District of Columbia, combined with its pro-business work environment, strong workforce and educational systems, makes it a great place to do business in.”
Business Facilities notes that Virginia has an unemployment rate of 3.6%, the 10th-lowest in the country, and it has a workforce of 4.1 million people as well as successful workforce programs, including the Virginia Talent Accelerator Program, a collaboration between the Virginia Community College System and the Virginia Economic Development Partnership that provides on-site work training, and Fast Forward Virginia, a VCCS program that provides industry credentials after a short-term training program that typically takes between six and 12 weeks.
“I am proud of the work our administration has done to develop the strongest business-friendly environment in the nation,” Northam said in a statement. “During my term, we’ve attracted more than $80 billion in economic investment, creating more than 100,000 jobs — a record for any Virginia governor. Virginia has set a new standard for all other states. Companies want to invest here and create jobs here because of our welcoming environment, commitment to developing our workforce, and our existing infrastructure.”
In July, Virginia was named the No. 1 state for business by CNBC for the second time in a row and five times in all.

Plastics manufacturer to produce 300 jobs in Chesterfield

Starplast USA, a subsidiary of Israel-based plastic manufacturer Starplast, plans to invest $17.7 million in a new facility in Chesterfield County, creating 300 jobs over the next five years, Gov. Ralph Northam announced Tuesday.

“Starplast chose Chesterfield County for its new manufacturing operation because the geographic location is very attractive, especially given its proximity to the East Coast and the Port of Virginia,” Starplast CEO Danny Schwartz said in a statement. “Additionally, Virginia — and in particular the Richmond area — has a strong workforce with readily-available talent.”
According to Chesterfield’s economic development authority, Starplast will retrofit an existing industrial building near Meadowville Technology Park, on Bermuda Hundred Road in the southern part of the county.
Starplast was founded in 1958, and its U.S. subsidiary started in 2005, according to the governor’s office. Starplast USA produces housewares, garden storage and toys, among other plastic products. Virginia competed with Ohio and Pennsylvania for the project. In 2018, Starplast USA opened its first U.S.-based manufacturing plant in Houston.
“We are so pleased to see global manufacturers like Starplast USA planting their roots right here in Virginia,” Northam said in a statement. “Our strategic East Coast location, world-class port facilities, competitive operating costs, and robust manufacturing workforce, make us a prime destination for international companies. We welcome a long partnership with Starplast USA and look forward to their future success.”
The Virginia Economic Development Partnership worked with Chesterfield County and the Greater Richmond Partnership to secure the project, and it will support job creation through the Virginia Jobs Investment Program at no charge to Starplast. The company is eligible to receive benefits through the Port of Virginia Economic and Infrastructure Development Zone Grant program, as well as the major business facility job tax credit for full-time jobs created.

Merrick named as state’s next commerce secretary

Caren Merrick, the CEO of Virginia Gov.-elect Glenn Youngkin’s nonprofit Virginia Ready Initiative, has been chosen to serve as Virginia’s next secretary of commerce and trade, Youngkin’s campaign announced Tuesday.

Before leading VA Ready, a role in which she managed $10 million in public and private funding to assist Virginians affected by the COVID-19 pandemic and recent labor shortage, Merrick started webMethods, a software company that grew to $200 million, and is a partner in NextGen Venture Partners, which invests in startups. She also has served on multiple companies’ boards with combined assets of $12 billion and revenues of $3 billion, according to Youngkin’s announcement, and was a director of the Metropolitan Washington Airports Authority. Merrick is also a member of Gladstone Capital’s board, as well as a director of the company’s investment, land and commercial sectors since 2014.

In 2011, Merrick ran unsuccessfully as a Republican for the Virginia Senate District 31 seat, defeated by Democrat Barbara Favola, who continues to hold the seat.

“Virginia’s jobs machine has stalled out, and Caren is going to play a pivotal role on the team that will jumpstart our economy and reinvigorate job growth here in the commonwealth,” Youngkin said in a statement. “Caren is an innovator, a business builder and a true leader in workforce development — the kind of experience needed to develop talent, train workers, attract investment and make Virginia the best state to start a business as we set out to add 400,000 jobs and launch 10,000 startups.”

Brian Ball, the current secretary of commerce and trade, has served in that role since April 2018.

A graduate of UCLA and the Harvard Business School’s corporate governance program, Merrick lives in Northern Virginia with her husband and two sons. She is the second Cabinet-level appointee announced by Youngkin, who named Aimee Rogstad Guidera as education secretary on Monday. A Republican, Youngkin takes office Jan. 15, 2022.

Dominion orders 176 turbines from Siemens Gamesa

Dominion Energy Inc. has ordered 176 offshore wind turbines from Siemens Gamesa Renewable Energy S.A. for its 2.6-gigawatt, $9.8 billion Coastal Virginia Offshore Wind project, the utility announced Monday.

The Richmond-based Fortune 500 utility declined to release financial details of the contract.

The SG 14-222 DD turbines — at more than 800 feet tall, the world’s largest offshore wind turbines in operation — are set to be fully operational in late 2026 and produce up to 14.7 megawatts of power apiece, enough to generate electricity for 660,000 homes. According to Siemens Gamesa, all of the turbines’ parts, including blades that will be created at the company’s forthcoming facility in Portsmouth, will be completed by the first quarter of 2023. Under the contract, the Spanish company also will provide 10 years of service on the turbines, which are expected to last 30 years.

Announced in October, the first U.S.-based offshore wind turbine blade manufacturing plant is expected to create 310 jobs and cost $200 million.

Dominion has been moving swiftly this fall in meeting deadlines for the project set to be built 27 miles off the coast of Virginia Beach. After receiving all components of the turbines next year, Siemens Gamesa expects to begin installing the 176 turbines in 2024, keeping to the utility’s timeline.

In November, Dominion Chairman, President and CEO Bob Blue said during a third-quarter earnings call that the CVOW project will cost approximately $2 billion more than the previously estimated $7.8 billion price tag, due to rising commodities expenses, mounting inflation pressure and onshore infrastructure costs. The utility submitted its application for the project to the Virginia State Corporation Commission on Nov. 5, with a public hearing set for May 17, 2022.

Five major agreements represent about $6.9 billion of the $9.8 billion budget, and the remaining project costs are $1.4 billion for onshore transmission facilities and projected system upgrades and another $1.5 billion for other project costs including contingency onshore transmission facilities necessary to interconnect offshore generation components reliably and to maintain the structural integrity and reliability of the transmission system in compliance with mandatory North American Electric Reliability Cooperation (NERC) standards.

The wind farm will help Virginia reach its target, mandated by the Virginia Clean Economy Act, of having 100% carbon-free energy production by 2045, and Dominion Energy’s goal of net zero carbon and methane emissions by 2050. President Joe Biden’s administration has set a 2030 target to have installed 30,000 megawatts of U.S. offshore wind power capacity.

The prototype of the 14.7-megawatt turbines to be created for CVOW was installed in November in Denmark and is currently producing power, Siemens Gamesa said in its announcement Monday. The company provided the two 6-megawatt turbines currently in use in the pilot project off Virginia Beach, which started in October 2020.

Northam proposes $2.1B in tax cuts for ‘working people’

Virginia Gov. Ralph Northam, who leaves office next month, proposed four tax cuts Tuesday, including eliminating Virginia’s 1.5% sales tax on groceries and providing an income tax cut for low- and middle-income Virginians.

He also proposed one-time tax rebates — $250 for individuals and $500 for married couples — and ending “accelerated sales tax” payments by retailers. Virginia code requires that the outgoing governor create a budget for the following year, even though his successor may have vastly different priorities, but Northam’s proposals are similar to those recommended by Virginia Gov.-elect Glenn Youngkin, who campaigned on a promise to end the state’s grocery tax and make other cuts. Youngkin takes office Jan. 15, 2022.

According to Northam’s announcement, the four tax policy changes would reduce state revenues by $2.1 billion, with most of the amount a one-time reduction for the state’s General Fund, and $419 million in ongoing obligations. The budget also would put $1.7 billion into the Revenue Stabilization Fund, set aside $1 billion for the Virginia Retirement System and allocate $2.8 billion for capital projects in state government and higher education buildings.

“When Virginia cuts taxes next year, it should be done in a way that benefits working people,” Northam said in a statement. “Many professionals made it through the pandemic fine, as their work simply moved online. But workers haven’t been so lucky when their jobs require close contact with other people. Some jobs simply can’t move online — restaurant workers, early childhood educators, home care attendants and others — and we all depend on the people who do this work. Virginia can help working people by eliminating the state grocery tax, providing one-time rebates, and giving a tax break to people who are working.”

Under Northam’s budget, the state would end the sales tax on groceries, which is the case in many states and, according to the governor’s office, would not affect local tax revenues. Also, Northam proposed making up to 15% of the federal earned income tax credit (EITC) refundable for eligible low- and middle-income residents, which depends on income level, marital status and family size. The $250 and $500 one-time tax rebates would be available to anyone who files state income taxes. Finally, retail sales tax payments — which are required to be paid before retailers collect revenues, in response to the 2008 Great Recession — would no longer be charged early.

Northam, who has been traveling the state in a farewell “Thank You, Virginia” tour, noted that Virginia ended the 2021 fiscal year with a record surplus of $2.6 billion. Under Northam’s proposed budget, the state would have $3.8 billion in financial reserves.

Youngkin, the first Republican elected as Virginia’s governor since Bob McDonnell in 2009, said this month at the Virginia Economic Summit & Forum on Trade that he would double the state’s standard tax deduction, provide a one-time tax rebate, eliminate the grocery tax and suspend for one year the most recent increase in the state’s gas tax.

Qualtrics expansion expected to bring 400 jobs to Fairfax

Qualtrics, a data analytics and experience management software company based in Seattle and Provo, Utah, is expanding its presence in Fairfax County and expects to create 400 jobs in a new location in Reston, Gov. Ralph Northam announced Thursday.

The company will move from its former office in Reston to an 85,000-square-foot space at 1906 Reston Metro Plaza, investing $15.9 million. Virginia competed with Pennsylvania and Ohio for the project, according to a news release from the Fairfax County Economic Development Authority. The building is a 150,000-square-foot office tower near the Reston Metro station.

“Virginia offers access to the highest concentration of tech talent in the United States,” Northam said in a statement. “The commonwealth’s diverse tech ecosystem is driven by our stable business climate, competitive operating costs, and a world-class workforce. We look forward to Qualtrics’ continued success in Fairfax County.”

“Organizations everywhere are undergoing an experience transformation, and Qualtrics has an incredible opportunity in front of us. With its strong talent pool, Virginia is a perfect place for Qualtrics to grow,” Qualtrics CEO Zig Serafin said in a statement. “The investments we’re making today will put us in an even stronger position to help our customers build their next great customer, employee, product and brand experiences.”

FCEDA worked with the Virginia Economic Development Partnership to secure the project for Virginia. Northam approved a $1.4 million grant from the Commonwealth’s Opportunity Fund to assist Fairfax County with the project, as well as $2 million in from the Virginia Economic Development Incentive Grant, a program of performance-based incentives for large economic development projects bringing high-wage jobs to the state.

In August, Qualtrics announced its purchase of Reston-based software company Clarabridge Inc. in a nearly $1.13 billion all-stock deal that is expected to close Dec. 31. Both companies’ boards have approved the deal.

“This marks the second vote of confidence that Qualtrics has made in our business community this year,” Victor Hoskins, FCEDA’s president and CEO, said in a statement. “First was the purchase of Clarabridge, a homegrown tech success story, and now the expansion being announced today. We thank and congratulate Qualtrics for this tremendous growth and we stand ready to assist the company further as it expands its footprint here.”