West Virginia announced the first round of winners of its moving incentive program this week and more of them are coming from California than any other state. Of the 53 applicants who were selected to move to the Morgantown area, 11% are from the Golden State.
This is sure to feed the narrative that “Californians are fleeing” their home state for lower-tax locales. After all the Tax Foundation ranks California as one of the ten states with the highest state and local tax burden while West Virginia ranks smack dab in the middle. And let’s not forget that data from the 2020 U.S. census show that Texas is drawing more Californians.
But reality is more nuanced. First of all, a recent survey by the University of California found that residents of California are not moving out of the state in abnormal numbers, contrary to popular belief. And second, the pandemic has accelerated the availability of remote work and more people than ever before are no longer tethered to a region by their jobs.
West Virginia, like many other places, is taking advantage of that by offering one of the most enticing moving incentives in the country. In fact, a whopping 7,500 people applied to the Ascend West Virginia program. The 53 selected newcomers hail from as far away as Berlin, Germany, and from 21 different states and the District of Columbia. They’ll each get $12,000 in cash, a year of free outdoor recreation valued at more than $2,500, free coworking space, access to more than $1,200 in free outdoor gear rentals, and other perks.
The state also announced that all 7,500 applicants could get $2,5000 in mortgage assistance through Rocket Mortgage if they decided to make the move anyway.
“As soon as I heard how many applications were pouring in, I knew the team had to think bigger. If this many people wanted to live and work in West Virginia, we had to do everything we could to make that a reality,” Gov. Jim Justice said in a press release.
This may all sound rather gimicky but moving incentives are rapidly becoming a key part of state and local economic development strategy. From Tulsa, Oklahoma to Rochester, N.Y. to the state of Vermont, lots of cities and states are offering cash to new residents now. A look at the numbers behind West Virginia’s inaugural Ascend class reveals why: The average annual income of those selected is approximately $105,000 — nearly four times the state’s average per capita income and more than twice the median household income.
What’s more, many applicants are bringing their families with them so ultimately more than 110 people will relocate to Morgantown thanks to the program. Since the income numbers above only refer to applicants and not their whole household, it’s likely that the total annual spending power is much higher than the $5.6 million represented by the individual winners.
All of this translates into more tax revenue for West Virginia and its localities, which have struggled to maintain residents and recover from the Great Recession.
And as for that California angle? One of West Virginia’s biggest selling points is its great outdoors so it makes sense that nature-loving Californians would be drawn to this moving package and its outdoor adventure perks. And that goes for other places, too.
“I see an amazing opportunity for West Virginia to become an oasis in the mountains for idea exchanges, incubation, and serenity,” said Matthew Worden, a native West Virginian who is relocating from Tallahassee, Florida. “As people move away from the coast and large cities, West Virginia makes an obvious destination.”
The Ascend program is funded through a $25 million donation from former Intuit
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