Transportation Projects to Grow Virginia’s Economy

~Chmura Economics and Analytics Report Highlights Impact of Governor’s Transportation Plan~ RICHMOND – Virginia’s economy would expand by $13.1 billion and support 105,642 additional jobs over six years if the Governor’s transportation plan passed Feb. 27 by the General Assembly is fully implemented, according to research conducted by Chmura Economics and Analytics, a national consulting firm based in Richmond.

Chmura’s research calculated the impact of the proposed 900 projects to the economy of the Commonwealth, including construction spending, ripple effects and job creation. Of the $13.1 billion in total impact, $7.2 billion is direct construction spending while $5.9 billion represents the ripple effects. Benefits generated by the projects would exceed costs and would have an average economic impact of $2.2 billion and support 17,607 jobs annually through 2017.

Additionally, the result of the transportation investment would generate $119.8 million in tax revenue for the state, and $10.4 million of benefits for local governments over that same period. The report goes on to say the long-term benefits of transportation investments include time savings for businesses, vehicle maintenance savings and accident reduction.

“Our transportation plan is aimed at putting Virginians back to work improving our transportation network,” said Governor Bob McDonnell. “This analysis by a nationally recognized economic firm reinforces that our program—the largest influx of transportation funding in a generation—will not only address the needs of the aging highway system upon which we all depend, but it will also provide a needed injection of funding into our economy to spur recovery from the difficult recession of the past several years.”

“The time is now for these transportation investments,” said Sean T. Connaughton, secretary of transportation. “Construction bids are coming in well below estimates, and interest rates are very low. Responsibly advancing bond sales and accelerating projects can bring tomorrow’s transportation improvements to citizens today.”

The 900 projects would be funded under the multi-faceted approach that creates a Virginia Transportation Infrastructure Bank, accelerates the sale of $3 billion in pre-approved state bonds, and issues $1 billion in federal Grant Anticipation Revenue Vehicles (GARVEE) Bonds to finance federal projects. The program also encourages private entities to enter into agreements to construct, improve, maintain and operate transportation facilities.

The 900 proposed projects in the program include bridge, tunnel and corridor improvements to interstates, highways and local roads throughout the Commonwealth in urban and rural areas.

The illustrative project list valued at $4.4 billion is available at http://www.virginiadot.org/news/resources/Statewide/sectran/Combined_Master_1-13-11_V10_SOT-No_Phase.pdf

The full report “Economic and Fiscal Impacts of the Construction Phase of Transportation funding in Virginia and its Regions” is available at http://www.virginiadot.org/news/resources/Statewide/sectran/Plan_VDOT_Executive_Summary.pdf  

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2011 Budget Update

Earlier today, the budget negotiators for the Virginia House of Delegates and the Senate of Virginia reached agreement on amendments to the existing state budget. The final agreement (conference report on House Bill 1500) will be voted on later today by state lawmakers as the last piece of business before the 2011 Regular Session of the Virginia General Assembly. The Conference Report on Budget Amendments just now became available online at the State Budget website.

Given your interest in the state legislature, I thought you might be interested so I'm providing the hotlink for your information and review. http://leg2.state.va.us/WebData/11amend.nsf/Conf+List/?OpenForm 

It's worth noting that the budget accord includes:

** No fees or higher taxes (Senate budget proposed fee increases, while House budget actually reduced fees by about $5 million);

** No earmark funding for non-state agencies (Senate budget proposed funding Foodbank and OpSail, among other NSAs, while House budget heeded the Attorney General's opinion that such funding is unconstitutional and prohibited);

** No funding for Capital Projects, including a new "Taj Mahal" to replace General Assembly Building (Senate budget proposed $300 million for new/renovated seat of government buildings, while House budget had zero)

** Additional $64 million deposit into the Rainy Day Fund (meaning a total of $114 million or half of the constitutionally required deposit in FY 2013);

** Eliminating the Accelerated Sales Tax (AST) for 80% of retailers (Senate budget did nothing to help retailers and other business, whileHouse budget eliminated this accounting gimmick for 98%);

** $30 million for the Behavioral Trust Fund for Intellectually and Developmentally Disabled Virginians.

Governor McDonnell’s George Washington Day Proclamation

RICHMOND– Governor Bob McDonnell issued the following proclamation recognizing February 21st as George Washington Day in Virginia. The proclamation can be found at this link: http://www.governor.virginia.gov/OurCommonwealth/Proclamations/2011/GeorgeWashingtonDay.cfm

GEORGE WASHINGTON DAY

WHEREAS, one of the greatest stories ever told in our nation is the life and times of George Washington, iconic father of the United States of America, who was born in Virginia at Pope’s Creek plantation on February 22, 1732; and

WHEREAS, a sixteen year old in Colonial Virginia, George Washington penned the classic Rules of Civility and Decent Behavior in Company and Conversation, a piece on gentlemanly etiquette that would guide him throughout his life and influence countless others throughout history; and

WHEREAS, in 1752, twenty year old George Washington was commissioned as a major in the Virginia militia, and the bravery he demonstrated in his early military career through missions in the wilderness and during the “French and Indian War” earned him an international reputation as a respected leader and distinguished him as the most experienced colonial military officer in Virginia by the age of twenty-seven; and

WHEREAS, in addition to his private business, George Washington was a devoted family man and statesmen, helping to raise his wife Martha’s two children while simultaneously serving several terms in the Virginia House of Burgesses, and as one of seven Virginia representatives to the Continental Congress; and

WHEREAS, in 1775, Congress authorized the creation of a Continental Army and appointed George Washington to organize and command the colonial forces against the world’s greatest military power, the British Empire; and

WHEREAS, from the horrendous conditions of Valley Forge and across the ice-filled Delaware River to the final triumph over tyranny at Yorktown, General Washington’s courage, conviction and resolve held the Continental Army together for eight long years of hardship against seemingly insurmountable odds; and

WHEREAS, after the American War of Independence, rather than using his position and status as the hero of the revolution to further his own self-interest, General Washington resigned his commission in the Continental Army and retired to private life, an unprecedented action underscoring his commitment to liberty and the ideals in which the revolution was founded; and

WHEREAS, George Washington played a critical role in the formulation of the Constitution of the United States of America, having encouraged the development and support of the document and having presided over its adoption during the Constitutional Convention of 1787; and

WHEREAS, George Washington was unanimously elected as the first President of the United States of America in 1788, a distinction that sets him apart from all of his successors, and under his strength and wisdom he laid the moral foundation of the United States and guided the fledgling government through its infancy; and

WHEREAS, in his first inaugural address on April 30, 1789, President Washington stated, “The preservation of the sacred fire of liberty, and the destiny of the republican model of government, are justly considered deeply, perhaps as finally, staked on the experiment entrusted to the hands of the American people”; and

WHEREAS, President Washington understood the unique character of the new nation as one grounded in faith in God and the rule of law, he stated in his first inaugural address, “the propitious smiles of Heaven can never be expected on a nation that disregards the eternal rules of order and right which Heaven itself has ordained”; and

WHEREAS, understanding that his behavior in office would set a precedent for generations to come, President Washington wrote in an April 25, 1788 letter, “The first transactions of a Nation, like those of an individual upon his first entrance into life make the deepest impression, and are to form the leading traits in its character”; and

WHEREAS, President George Washington lived by his written rules of civility, and the honesty, integrity and humility of his administration set precedents that are adhered to today, such as his refusal to treat the office as a royal court and his two-term limit on the presidency; and

WHEREAS, President Washington’s farewell address, one of the most influential speeches in history, advised future generations to avoid entangling foreign alliances, to be wary of partisan loyalties, to revere our republican form of government, and he also underscored the critical importance of the Constitution, stating, “The basis of our political systems is the right of the people to make and to alter their Constitutions of Government. But the Constitution which at all times exists, ‘till changed by an explicit and authentic act of the whole People, is sacredly obligatory upon all.”; and

WHEREAS, George Washington died on December 14, 1799, and upon his death, President John Adams stated, “His example is now complete, and it will teach wisdom and virtue to magistrates, citizens, and men, not only in the present age, but in future generations, as long as our history shall be read.”;

NOW, THEREFORE, I, Robert F. McDonnell, do hereby recognize February 21, 2011 as GEORGE WASHINGTON DAY in our COMMONWEALTH OF VIRGINIA, and I call this observance to the attention of all our citizens.

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Commonwealth Posts 12.6% Revenue Growth in January

~Tenth Month out of Last Eleven with Increase in Revenue Collections over Prior Year~ RICHMOND – Governor Bob McDonnell announced today that January revenue collections increased by 12.6% over the prior year. This is the tenth month out of the last 11 in which state revenue collections exceeded the previous year’s amount. Excluding tax amnesty revenue, it is the third month in a row in which year-over-year revenue growth was greater than 9%.

The revenue increase was primarily driven by withholding (+5.4%), nonwitholding (+10%) and sales tax (+5.7%) collections. Adjusted for the accelerated sales tax program, total state revenues grew 5.4 percent through January, slightly ahead of the economic-base forecast of 5.2 percent growth. January is a significant month for revenue collections.

Speaking about the latest revenue report, Governor McDonnell noted, “These economic indicators are showing a trend of progress and recovery. Unemployment numbers continue falling, and Virginia has added 55,400 jobs since February 2010, the fourth highest number of net new jobs in the nation. The increases in revenue growth and reductions in unemployment are signs that Virginia is beginning to emerge from the recession and that our fiscally responsible management is making a positive impact on our economic recovery. Still, nearly 280,000 Virginians remain unemployed and this is unacceptable. We have much more work to do to get Virginians back to work and to continue growing our economy.”

The Governor continued, “Working closely with the General Assembly, our bipartisan economic development efforts and job creation measures are finding broad support this session. We must make government smaller and more efficient, and focus our investments in core functions of government like higher education, economic development and transportation which help create the conditions conducive to private sector job creation. We must keep taxation, regulation and litigation to a minimum to free our job creators and entrepreneurs to innovate, create and grow. Maintaining fiscal responsibility in our state budget is necessary to ensure that this early recovery takes hold and is sustained for the long term."

The January revenue numbers are available at this link:

http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2010-2011/2011ReportsList.cfm

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Governor McDonnell’s Legislative Agenda Moves Forward with Broad Bipartisan Support

Package Highlighted by Historic Transportation Investment; Measure to Expand Access to Higher Education; New Tools to Encourage Job Growth and Economic Development; Proposals to Reform State Government RICHMOND – Heading into the second half of the 2011 General Assembly Session, Governor Bob McDonnell’s legislative agenda has been met with strong bipartisan support. The Governor’s agenda is highlighted by innovative proposals in four key areas. · The Governor’s $4 billion transportation funding plan will provide for the greatest investment in transportation in the Commonwealth in a generation. · The “Preparing for the Top Jobs of the 21st Century: The Virginia Higher Education Opportunity Act of 2011” will increase access and affordability of higher education in the Commonwealth, creating a pathway towards awarding 100,000 more degrees over the next 15 years. · McDonnell’s government reform proposals continue his ongoing work to make state government smaller and smarter. · The Governor’s “Opportunity at Work” initiative builds on the success of last year’s legislation that provided the Commonwealth new tools and resources in the effort to attract new businesses to Virginia and help existing businesses expand. Virginia’s unemployment rate has fallen from 7.2% last February to 6.7%.

The Governor’s 2011 agenda follows his successful effort last session to reduce state spending to 2006 levels, while seeing 80% of his legislation become law.

Speaking about the success of his initiatives at the halfway point, Governor McDonnell commented, “Over the last month, the General Assembly has worked together in a bipartisan manner to find real solutions, fix some of the biggest problems the state faces, and increase opportunities for all Virginians. While Washington, D.C. can too often get bogged down in partisan battles, in Virginia we are taking a different approach, and we are moving in the right direction. Our top four priorities this year address the most significant challenges facing our Commonwealth and our citizens. We need new roads, more Virginia students in colleges and universities, a more efficient and limited government and support for the private sector job creators who are pivotal to our future economic prosperity. I am heartened that so many legislators, from both sides of the aisle, are working with us to get our proposals on these issues enacted, and I thank them for their partnership with our Administration.”

McDonnell continued, “We are on track to pass higher education reform legislation that will ensure more accountability and make college more affordable and accessible for our students, and create a roadmap towards issuing 100,000 more degrees in the Commonwealth over the next 15 years. We will pump $4 billion into roads, bridges and rail over the next three years – the most funding invested in transportation in a generation. Through government reform legislation we are prioritizing spending, streamlining state agencies and making government more responsive and accountable to the taxpayers. We are adding more new job-creating tools and resources to help us better compete with other states and countries around the world for the jobs and opportunities of the 21st Century.”

Governor Bob McDonnell’s 2011 Legislative Agenda at Crossover

Opportunity to Learn HB 2314 – Establishes the Education Improvement Scholarship program. SB1459/HB2510 – Creates the Virginia Higher Education Opportunity Act of 2011 (“Top Jobs for the 21st Century”).

Opportunity at Work SB 1326/HB 1447 – Creates a Refundable Research and Development Incentive for start ups and early stage firms in targeted industries. SB 1264/HB 1837 – Establishes a program to incentivize vineyard establishment and winery expansion. SB 1379/HB 1982 – Streamlines the Governor’s Opportunity Development Fund to more effectively implement the program. HB 2052 – Protects the right to vote by secret ballot on labor organization representation. SB 1193/HB 2285 – Authorizes tourism zone projects to keep portion of sales tax to provide gap financing. SB 1360/HB 2316 – Creates Clean Energy Manufacturing Incentive Grant Program. SB 1485/HB 2324 – Bolsters the Commonwealth Research and Commercialization Fund to grow Virginia’s innovation economy. SB 1481/HB 2531 – Creates the Virginia port volume increase tax credit. SB1136 – Creates an international trade facility incentive. SB1447 – Directs revenue generated by commercial spaceflight to the Virginia Commercial Space Flight Authority.

Get Virginia Moving SB 1446/HB 2527 – Omnibus Transportation Funding Plan HB 1648 – Enables allocations from the Rail Enhancement Fund to be used as matching funds for federal grants to support rail projects. HB 1758 – Provides that those cities and towns that decide to take over responsibility for their construction programs must notify the Commonwealth Transportation Board by December 31 for implementation the following fiscal year SB 1135/HB 1957 – Amends the powers and duties of the Commonwealth Transportation Board. HB 2000 – Provides that the Governor appoints an additional member to the Northern Virginia Transportation Commission and the Washington Metropolitan Area Transit Authority Board of Directors. SB 1109/HB 2040 – Authorizes the use of inmate labor at rest areas along the interstate highway system. HB 2105 – Excludes any person who is not a public service corporation and who provides electric vehicle charging service at retail from the meaning of the terms "public utility," "public service corporation," or "public service company." SB 1335/HB 2197 – Provides a tax credit to employers for expenses incurred in allowing employees to telework pursuant to a signed telework agreement. SB 1004/HB 2233 – Exempts the Virginia Department of Transportation (VDOT) and the Virginia Department of Rail and Public Transportation (DRPT) from paying any fee for remote access to land records. SB 1282/HB 2385 – Grants a $50 per container income tax credit for any company shipping cargo containers via barge or rail. HJ 511 – Constitutional amendment to permanently protect the Commonwealth Transportation Fund from transfers to the General Fund. SB 856 – Requires the Virginia Department of Transportation to accept unsolicited proposals for construction of the Patriots Crossing (Third Crossing) project at Hampton Roads. SB 1126 – Provides for the duration of contract terms for environmental location, design and inspection work to one initial term of two years and clarifies that the sum of all projects in a one-year term may not exceed $5 million.

Smaller, Smarter Government HB 1592 –Requires all state agencies and regional bodies to put requests for proposal and invitations to bid on the Virginia Department of General Services' website. HB 1842 – Makes policy improvements to certain boards, commissions, and councils. HB1951 – Raises the minimum contract amount required for bid, performance, or payment bonds to $500,000. HB 2058 – Consolidates several water quality reports on progress in cleaning Virginia’s impaired waters. HB 2076/SB1477 – Consolidates disparate positions into one central, independent agency and transform the State’s Internal Auditor into an Inspector General with enhanced authority to proactively pursue complaints concerning fraud, waste and abuse in state government. HB 2201 – Provides that the Department of Planning and Budget, in consultation with the Virginia Department of Accounts, shall require all agencies of the Commonwealth to participate in the Payroll Service Bureau operated by the Virginia Department of Accounts. HB 2277 – Provides that citizen members of boards, committees, councils, or other collegial bodies, who are appointed at the state level, who receive three or more travel reimbursements annually shall be required to participate in the Electronic Data Interchange Program administered by the Virginia Department of Accounts as a condition of accepting such appointment. HB 2282 – Requires the Director of the Virginia Department of General Services to develop a plan providing for the replacement of vehicles in the centralized fleet that are rotated out of service with vehicles that operate using natural gas, electricity, or other alternative fuels, to the greatest extent practicable. HB 2319/SB 1382 – Provides that the assessment of mandates imposed on local government currently required include a detailed cost-benefit analysis and utilization of performance-based metrics to determine the value of the mandate in relation to the required or intended output or desired result. HB 2337/2338 – Provides that whenever a state agency or local government sends any mail or notice by certified mail then any additional mail or notice that is sent by such state agency pertaining to the same subject matter and purpose may be sent by regular mail. HB 2376 – Removes Virginia Department of Social Services agency mandates related to office space of local social services. HB 2435 – Directs the Virginia Department of Corrections to eliminate mandates related to contract inmate classification reporting requirements imposed on localities. HB 2520/SB 1471 – Eliminates certain advisory boards and commissions. SB 912 – Changes the Commonwealth’s biennial appropriations start on July 1 of odd-numbered years SB 1001 – Changes the authorities of the Virginia Board of Corrections. SB 1057 – Authorizes state executive branch agencies to develop one consolidated report for submission instead of multiple reports. SB 1213 – Directs the State Board of Elections to make mail voter registration application forms available where hunting and fishing licenses are sold. HJ 693 – Constitutional amendment regarding the taking or damaging of private property for public use.

Most Veteran-Friendly State SB 0959/HB 1719 – Provides to a veteran or his/her spouse, free of charge, one copy of vital record, if that record is to be used in the determination of eligibility for state or federal veterans benefits. SB 0892/HB 1761 – Permits the Virginia Department of Human Resource Management to offer voluntary TRICARE supplement health coverage under the Commonwealth’s IRC Section 125 cafeteria plan. SB1279/HB 1848 – Provides clarification to Virginia institutions of higher education that a Virginia domiciled military spouse does not forfeit domicile status due to accompanying the active duty service member while stationed outside of Virginia. SB 1361/HB 1862 – Extends the expiration of certain licenses, certifications, registrations or other documents held by the spouse of a service member when stationed overseas. SB 0824/HB1868 – Increases educational opportunity for veterans by waiving the one-year residency requirement needed to qualify for in-state tuition rates.

Statement of Governor McDonnell on the Passing of the Honorable Leroy Rountree Hassell, Sr.

RICHMOND – Governor Bob McDonnell issued the following statement today regarding the passing of the Honorable Leroy Rountree Hassell, Sr, former Chief Justice of the Supreme Court of Virginia.  The Governor has ordered that flags be flown at half-staff until his burial on all local, state, and federal buildings and grounds in Virginia.  Additionally, Justice Hassell will lie in state in the Virginia State Capitol prior to burial.  “It is with great sadness that we learn of the passing of the Honorable Leroy Hassell, a personal friend who will be greatly missed.  I recall fondly our numerous private lunches in which we would discuss law and life.  He had keen insights into the human spirit.  Virginia has lost a brilliant legal mind, accomplished jurist and devoted public servant.  Leroy had an unmatched passion and excitement for the rule of law.  Growing up in Norfolk, a son of two educators, Leroy had an innate drive, telling his peers as an undergraduate at the University of Virginia, that he would attend law school at Harvard University, which he did.  He later would become partner at one of Virginia’s largest law firms in just seven years.  But even greater, it was because of this passion and excitement that he was sworn in as a Justice to the Virginia Supreme Court at just 34 years old, one of the youngest justices in the history of the court, and in 2002, he became the first African American Chief Justice on the court, a monumental achievement for Virginia and him.  Leroy never shied from standing his ground on principal in the court, making his concerns known in an effort to improve the judicial system.  He was a man of great faith who dedicated his life to bettering others and providing legal care for the indigent.  Leroy was instrumental in the creation of the Mental Health Reform Commission, which helped lead to important changes to the way in which Virginia addressed the needs of the mentally ill.  On behalf of all Virginians, I offer my deepest sympathies to his family and his many, many friends during this tough time.”

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Patient Care and Health Care Quality Control Tort Reform Passes House of Delegates

-- Part of a comprehensive reform package, House Bill 2373 corrects a nearly five year old judicial error -- Central VA- House Bill 2373, patroned by Delegate Christopher K. Peace (R-Hanover) and joined by 5 colleagues, addresses the privilege and discoverability issues that arose from the 2006 Virginia Supreme Court case Johnson v. Riverside.  Peace, along with Medical Society of Virginia (MSV), Virginia Trial Lawyers Association (VTLA) and Virginia Hospital and Healthcare Association (VHHA), successfully commandeered a negotiation process which led to this legislation and recently passed the full House by a vote of 98-0.  Del. Bill Cleaveland’s bill was incorporated into the Peace bill.

House Bill 2373 specifies that facts and incident reports that are included in a patient's medical record are discoverable in litigation while protecting the peer review and quality assurance documents in litigation proceedings. This consensus bill establishes needed protections for the peer review and quality assurance processes to assure high quality patient safety and other quality controls.  The issues addressed by this bill have been a topic of discussion among stakeholder groups, MSV, VHHA, and VTLA, since the Supreme Court’s ruling almost 5 years ago.

Delegate Christopher K. Peace was elected to his third term representing the 97th District of the Virginia House of Delegates.  The District includes parts of Hanover, Caroline, King William, King and Queen, Henrico, Spotsylvania Counties and all of New Kent County.

Governor McDonnell’s Statement on Transportation Bill Passing Senate

~34 to 6 Bipartisan Vote Supports Governor’s Transportation Plan~ RICHMOND– The Virginia Senate passed SB 1446 today 34-6 supporting Governor Bob McDonnell’s $4 billion plan to expand and maintain Virginia’s transportation system. The plan will provide for the greatest investment in transportation in the Commonwealth in a generation. Governor McDonnell issued the following statement after the Senate’s bipartisan vote of support.

“With each new vote in the General Assembly recognizing the merits of our transportation program, we are moving closer to jumpstarting needed transportation projects that will reduce congestion, create jobs and open additional parts of the Commonwealth to economic development while creating a rail operating and capital fund to ensure the continuation of Virginia's passenger rail system.

This fiscally conservative plan leverages our available resources and bonding authority to expedite the important transportation improvements we need. It also saves taxpayers money by capitalizing on some of the best interest rates and construction bids in modern history.

This measured, prudent and responsible plan has been supported by nearly 50 cities, transportation and business organizations and groups, and was approved by the House of Delegates on Friday. Today the Senate has voted in support of the plan. We look forward to final passage of the measure by the entire General Assembly. Working in a bipartisan manner we are going to get new roads, bridges and mass transit projects started immediately, and our entire Commonwealth will benefit.”