Newsletter

February 6, 2005

Dear Friends:

At some point, every session of the General Assembly turns into an Alice in Wonderland Moment. Part of it is the White Rabbit-like pace we have to maintain as we race from committees on which we serve to hearings of other panels that will determine the fate of our legislation. At noon, when the committee activity ceases and we go to the floor for the sessions of the full House and Senate, it’s sort of like slipping down a rabbit hole. And then there’s the distortion of reality issue.

When a Senator slips in a “non-controversial” bill at the last moment to allow congregations, upset by the ordination of gay ministers, to keep church property when they break away from their national denomination, things are getting curiouser and curiouser. And when a Delegate puts in a bill to ban gays and lesbians from adopting children and then states, “This bill is not intended to restrict anyone’s rights,” we truly have moved through the looking glass.

On a brighter note:

Governor Warner had much to grin about this week as Virginia tied for Number 1 with Utah among states in overall government management, according to a new study published in Governing Magazine. The year-long research project by a team of academics and journalists gave the Commonwealth an overall grade of A-minus in the categories of money, personnel, infrastructure, and information in its operation.

The report stated that Virginia has an ethic of good management, but went on to say that the previous Governor had betrayed that culture when he opened a $1 billion budget shortfall in the late 1990s with a cut in the car tax that was politically popular but fiscally unsound.

Governor Warner was praised for handling the worst financial situation since World War II, and made his mark by instituting performance contracts for top officials throughout state government, reviewing each agreement along with a report card for each agency, and holding agencies to meeting specific goals and objectives.

The Department of Transportation was specifically cited as one which four years ago completed fewer than 20 percent of its projects on time. By 2005, VDOT was on track to finish two-thirds of its projects on time and nearly 90% within budget.

All of this isn’t as sexy as a lot of the tub-thumping issues that occupy our time nowadays, but it shows responsibility, leadership, and stewardship. What a difference four years and a good governor can make.

Next up: the budget --

As soon as we complete business on February 8 for Crossover, we will address the Senate bills sent to us, but our real energy will be spent on serious consideration of the Budget Bill. After February 16, the disagreements between the two houses will go to the Conferees.

In preparation for our consideration of the budget, Governor Warner sent a mid-session revenue forecast updating the figures on which his introduced budget was based. The Governor pointed out that in spite of many rosy revenue predictions, we should proceed cautiously.

First, the unusual growth we have recently experienced is limited largely to three volatile revenue sources--recordation taxes, corporate income, and individual non-withholding which accounts for 20% of total general fund revenue. It is problematic to assume that the growth we are seeing in these sources will continue into FY 2006.

Second, the budget outlook for FY 2006-2008 includes a number of required cost increases over which we have little control. It is conservatively estimated that they will add up to $2.9 billion more than is budgeted for FY2006. These include our commitment to public schools, Medicaid and other human resource programs, $950 million for the car tax repeal, debt service of capital projects already authorized, higher costs for employee retirement contribution, health and group life insurance, and incentive grants to employers who have met employment and investment standards set for them when they located in Virginia.

Additionally, this $2.9 billion total does not include the cost of salary increases for employee groups, any adjustment for likely federal actions to shift the cost of Medicaid or other programs to the state, any further effort to clean up the Chesapeake Bay, or any attempt to reduce the waiting lists for community services for the mentally disabled.

With that in mind, Governor Warner encouraged legislators to place a priority on four areas: improve the state's transportation system; eliminate the accelerated sales tax (a budget gimmick that made retailers double their June sales tax payment in order to swell the earlier fiscal year’s revenue totals); commit additional dollars toward stopping Chesapeake Bay pollution; and add $228 million to the fiscal 2006 budget to ensure timely reimbursements to 43 localities for revenue they have lost to the car-tax rollback.

We will see. Each day one or two members stand to demand that we phase out the car tax at once. I guess they were not impressed by the report of Governing magazine.

This week’s travel log from intrepid aide Jean Barton:

“As I travel down I-95 towards Richmond, I know I’ve reached my turn-off when I see a brick and terracotta tower housing a four-faced working clock that stands atop the city’s downtown Main Street Train Station. During the halcyon days of this station, passenger trains with names like ‘The Silver Meteor’ and ‘The Orange Blossom Special’ stopped here, adding glamour to rail travel. For more than 100 years, this building was the most visible landmark in Richmond. With the drop-off in train travel and the decline of the downtown Richmond area, however, it closed down in 1975.

“In 1993, the renovation and restoration of this Beaux Arts building began. On Wednesday night, the Virginia Railroad Express held a legislative reception to show off their beautifully restored building that looks more like a grand hotel than a train station. The station’s heavily-ornamented French Renaissance architecture, six story clock tower, roofed loggia with 22-foot columns and magnificent glass floors are reached from the Main Street entrance staircase that announces its splendor. Many of the original iron gates and reproductions of the original benches fill the station waiting room.

“One problem: There are few trains. Still, you might catch the one train from DC (7:30 a.m.) or Alexandria (7:45 a.m.) and be in Richmond at 10:12 a.m. There is also one train back, leaving the Main Street Station at 5:30 p.m. The building is worth the trip, and the station is surrounded by great little restaurants and, on weekends, The Farmers Market.”

A Remembrance –

We cannot mark the closing of this week without remembering Judge Thomas Monroe, a great and courageous jurist, a devoted husband and father. He and his wife, Eleanor, were deeply involved in civic affairs and together worked to integrate Arlington’s schools and theatres. Judge Monroe also fought to integrate the Arlington Hospital after Eleanor had to go to a Washington hospital to give birth to their first child. Their contributions to the community included sharing with us their son, Charles, who died too young at the age of 46 while chairing his first County Board meeting in 2003.

Stay in touch.

Bob Brink

Bob Brink