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Virginia
is the best state in the country for business, and
Virginia FREE is dedicated to keeping it that way.
Forbes.com ranks Virginia as the number one business
state based on six major categories including
business costs, economic climate, growth prospects,
labor, quality of life and regulatory environment.
Virginia is the only state to rank in the top ten in
every category.
Among
the important keys to future success in these vital
categories is a General Assembly that addresses the
most pressing needs of the state in a timely and
meaningful way. Regrettably in 2006, the legislature
did not fulfill its primary responsibility to enact
a state budget on time and it deadlocked on
transportation, the most pressing issue of the year.
Businesses
in Virginia want government to work efficiently,
effectively and on time. For the third time in six
years, however, a protracted budget stalemate in
2006 pressed the General Assembly into an extended
overtime-legislative session. This pattern of
tardiness reflects poorly on Virginia, adds to the
cost of state government and disrupts localities,
school boards, public safety and business
operations.
Further,
state legislators did not address the pressing need
for greater investment in transportation
infrastructure. Business location, expansion and
retention and “just in time” business operations
depend heavily on Virginia’s transportation
systems. Companies need a seamless system of
highways, mass transit, railroads, seaports and
airports to conduct business efficiently, to grow,
to prosper and to create jobs. The efficient
movement of people, goods and services is essential
to sustain our favorable business environment,
continued economic growth, public safety, and
Virginia’s enviable quality of life.
The
General Assembly took tentative steps in 2005 to
address the mounting deficit in transportation
funding. Roughly $850 million in transportation
spending was added to the budget last year and a new
fund was established to assist with rail projects, a
first for the state. It was a first step toward
addressing the enormous, fast-growing unmet
transportation needs of the Commonwealth. Yet most
of that money was a one-time infusion of cash that
did not address structural transportation funding
shortfalls over the long haul.
Virginia’s
business community acknowledges the enormous
challenges faced by the General Assembly in
providing far-reaching, long-range solutions to meet
our 21st-century transportation demands. The need is
large, complex and growing. Comprehensive solutions
include continuing reform of the Virginia Department
of Transportation (VDOT); accelerated public-private
partnerships; more privatization of transportation
assets; better land-use planning; more efficient
development patterns, enhanced multi-modal
transportation choices; and an array of innovative
ideas such as HOT lanes and peak pricing.
To
be sure, these ingredients are necessary. But they
are not sufficient without the addition of at least
the new transportation money necessary to continue
receipt of federal matching dollars. Any assessment
of Virginia’s transportation needs must
acknowledge an urgent need for substantial sources
of long-term funding.
This
year legislators repeatedly refused to tackle the
transportation challenge. Win/lose politics, and a
refusal to compromise emerged as insurmountable
barriers in the pursuit of meaningful, long-range
solutions for transportation. No process could be
less business-like than this political gridlock.
Substantial
business interests were arrayed against nearly every
meaningful transportation proposal brought to the
table in 2006. The one thing we could agree on was
that a compromise solution was necessary. Going
forward, success will depend in large measure on a
united business community that fosters compromise
and works diligently in support of statewide
transportation solutions that span regional and
partisan divides.
Diverse
business interests must come together in support of
meaningful transportation solutions. The costs of
inaction are huge. VDOT estimates that project costs
escalate by about 15 percent every two years –
even in years without severe oil price shocks and
other unforeseen incidents. That means executing the
current $4 billion Six-Year Improvement Plan could
cost $600 million more if the General Assembly again
fails to take meaningful action in 2007. Add to this
the cost of what a deteriorating transportation
system means in lost productivity, decreased safety,
higher vehicle operating costs and social
disruption. Virginia businesses must form a unified
front to help move the legislature toward lasting
solutions and avert the spiraling costs of continued
gridlock.
Virginia
businesses do not see the state budget and
transportation solutions as partisan issues. They
are Virginia issues. They are pressing business
issues. They require hard work and a spirit of
compromise. That is what Virginians expect and
deserve from their elected officials.
On
a final note, business leaders strongly disapprove
of a new rule adopted this year in the House of
Delegates that allows for the defeat of legislation
in House sub-committees without a recorded vote.
This is a dangerous precedent that removes
accountability and sunshine from the governing
process and it should be corrected immediately.
The
House Clerk’s office reports that 491 bills were
killed in House subcommittees this year without a
recorded. The list includes important business
issues such as proposed transportation funding
mechanisms, utility regulations, Marine Resources
Commission regulations, and many others. Vesting the
power to kill legislation in a full committee of 20
lawmakers is a necessary compromise between
representative government and efficiency. And, by
rule, it is done “on the record.” But giving
this authority to a sub-committee of five or six
legislators who then dispose of substantive measures
without a public record is to abdicate responsible
governance.
A
simple rule change is in order. Whether in full
committee or subcommittee, a recorded vote must
occur on the disposition of all bills. This
maintains the efficiency subcommittees bring to the
legislative process while preserving the
accountability necessary for open government and an
informed citizenry.
Virginia
is a wonderful place to do business and it remains a
well-governed, low-tax state. We have beautiful
waters and land, great natural resources and a
diverse and innovative workforce. We boast of a
strategic geographic location, top-notch public
education, well-developed infrastructure and a
business-friendly environment. We also have talented
lawmakers who typically reject bills harmful to free
enterprise, business growth and economic
development.
Together
with our elected representatives, we have
constructed a broad, strong foundation on which to
build an even brighter future that will make
Virginia even more attractive to business and that
will help keep our state number one in the nation.
Building on that foundation requires vision, courage
and a clear understanding that Virginia’s future
extends well beyond the next primary or general
election. The future demands that we face tough
challenges head on.
--
December 4, 2006
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