NORFOLK, Va. — With roughly one out of every four dollars flowing through Hampton Roads directly tied to federal spending, any disruption can cause a chain reaction in the local economy.
There's been a double whammy in 2022: High inflation coupled with yet another year of Congress failing to approve a budget on time, and again relying on a continuing resolution, with all funds frozen at the prior year's levels.
"Congress is not doing its job. Because they're not doing their job, everybody else is waiting around for the funds to start new programs. It also means with inflation, by the time the money arrives, it's going to be worth less than if it arrived on time," said Bob McNab, an economics professor at Old Dominion University and director of the Dragas Center for Economic Analysis & Policy.
McNab on Tuesday delivered the annual ODU State of the Region report to the Hampton Roads Chamber before an audience of 650 people at the Waterside Marriott Hotel.
He painted a not-so-pretty portrait for the local economy.
McNab said military salaries are not keeping pace with inflation and there has been a downturn in recruiting for all branches, especially the Army.
"We're asking them to put their lives at risk. We're asking them to live in cramped quarters," he said. "We're asking them to be separated from their families for a long time. Perhaps we should compensate them fairly as well."
On an up note, McNab reported that the Port of Virginia continues to set records in terms of cargo traffic. He called the port "a major driver for economic activity in the region."
There will be a second presentation of the report, hosted by the Virginia Peninsula Chamber of Commerce. It is Friday, Oct. 7 at 7:30 a.m., at the Newport News Marriott.