A PLAN TO
JUMP-START
VIRGINIA’S ECONOMY
www.DeedsforVirginia.com
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
to Jump-start Virginia’s Economy
CReigh DeeDS’ PlAn
o
ur commonwealth faces tremendous economic challenges: we’re in the middle of the worst global recession since the great Depression, unemployment is at record highs, thousands of Virginians have lost their homes to foreclosure, and small businesses across the commonwealth are struggling to stay afloat. as governor, creigh Deeds will get Virginia’s economy back on track through bold, responsible proposals that preserve Virginia’s low-tax environment and keep our distinction as america’s “best state for business” and the best place to raise a child.
creigh’s plan for growing virginia’s economy focuses on four key initiatives:
immediate solutions for small business owners, homeowners, and workers across the commonwealth. an innovative statewide transportation plan to open up the avenues of commerce and create thousands of new jobs. strategies for making Virginia a leader in green energy industries. a plan to make government leaner and more efficient.
w w w. D e e d s f o r V i r g i n i a . c o m
2
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
immediate solutions for small Business owners, homeowners, and workers
the next governor of Virginia needs to take immediate steps to help those hit hardest by the global recession: small business owners adjusting to a difficult economic environment, homeowners struggling to pay the mortgage, and workers who have lost their jobs through no fault of their own or are looking to upgrade their skills. as a leader in the general assembly, creigh Deeds supported tax breaks for small businesses, sponsored comprehensive mortgage reform, and led the effort to create the modern governor’s opportunity Fund. as governor, creigh will give hardworking Virginians the tools they need to succeed. creigh will: provide immediate tax relief to help Businesses create JoBs across virginia. in today’s tough economic environment, too many business owners across the commonwealth are struggling to grow their businesses. Businesses are Virginia’s job creators and will be the key to our economic recovery. creigh will preserve Virginia’s rightto-Work law, which gives the commonwealth a competitive edge over other states, while promoting responsible tax policies that reward companies for pumping revenue back into the state’s economy through job creation. Give a federal payroll tax refund to businesses that create jobs. through a state tax credit, creigh will refund to businesses any increase in federal payroll taxes they pay over the previous year. any business that adds new, good-paying jobs with benefits or pays its workers higher wages will be eligible. it’s a win-win: businesses get a much-needed break and the state eventually gets the revenue back through income taxes and expenditures on local goods and services. Directly tying incentives to payroll expansion is the surest and simplest way to reward real job creation. creigh will keep the tax credit in place for two years with the option of renewing it. Extend net operating loss carryback for small businesses. under current Virginia law, small businesses are allowed to carryback, or offset losses against income in two previous years. creigh will give small businesses a much-needed break by extending the carryback period from two years to five. this will provide immediate relief to businesses operating at a loss and align Virginia’s carryback policies with recent changes at the federal level. Offer a small business capital investment tax credit. creigh will give small businesses a tax credit of up to 30 percent of qualified new capital purchases. this means that
w w w. D e e d s f o r V i r g i n i a . c o m
3
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
for every dollar a small business spends to upgrade its facilities or hire new workers, the owner will be able to claim a tax credit against the state income tax. small businesses will be able to earn tax credits on investments up to $250,000 per year. creigh will keep the program in place for two years with the option of renewing it. help unemployed workers afford health insurance. more than a quarter of a million Virginians are unemployed. thousands more are underemployed or working parttime just to make ends meet. it’s bad enough to lose a job without also having to worry about losing health insurance. Last year, creigh supported an extension of emergency coBra health insurance and a discount on coBra premiums for laid-off workers. as governor, creigh will provide additional assistance to these workers. Create an emergency health insurance revolving loan fund. the fund will provide lowinterest loans to temporarily unemployed workers, helping them pay for emergency health insurance when they have no coBra option. creigh will also allow loans from the fund to be used by unemployed workers to cover coBra payments if they remain unemployed more than nine months. Allow unemployed workers to buy into FAMIS (the state children’s health insurance program), FAMIS Plus (children’s Medicaid) or other health plans when such plans would be a more affordable option. douBle the governor’s opportunity fund. the governor’s opportunity Fund (goF) is a discretionary fund available to the governor to help attract new businesses to the state. grants from the fund are awarded to localities on a matching basis. Lacking discretionary funds, the governor would be forced to call a special session of the legislature just to finalize an agreement with a major employer seeking to relocate to Virginia. Despite the importance of this job creation tool, Virginia lags far behind other states. the texas Enterprise Fund was originally capitalized at $295 million. this year, Virginia increased funding to the goF by $5 million, adding to the $15.1 million provided in the 2008-2010 biennial budget. Louisiana, in comparison, recently boosted funding for its governor’s discretionary fund by $30.9 million. as a member of the House of Delegates, creigh helped write the modern governor’s opportunity Fund into law. Earlier this year, as a candidate for governor, creigh called for putting an additional $10 million towards job training efforts associated with goF grants. given the continued downward trend in the national economy, creigh will act immediately to add this additional money to train workers for new jobs, while also doubling the goF.
w w w. D e e d s f o r V i r g i n i a . c o m
4
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
Double the Governor’s Opportunity Fund. Doubling the goF will increase Virginia’s competitiveness with other states in the region. Add an additional $10 million specifically for job training. Businesses, localities, and individuals will all be eligible to apply for grants for job training, for example, turning a $15,000 per-year textile worker into a $45,000 per-year technology worker. help small Businesses in rural areas. small business owners in rural areas have been especially hard-hit by the economic downturn. sales are down, and now more and more of these businesses are having trouble accessing credit to purchase inventory and meet payroll. Would-be start-up companies in rural areas are finding it difficult to raise enough capital to get off the ground. creigh will make sure that small businesses across the commonwealth are not left behind. Establish a Rural Business Fund to help small businesses grow in economically distressed areas of the Commonwealth. the fund will be similar in structure to north carolina’s rural Venture Fund, which guarantees financing to existing small businesses in high-need areas that might not receive financing from traditional sources. creigh will establish a similar fund in Virginia. Work with the Community Capital Bank of Virginia (CCBV) to foster economic development in distressed communities. First proposed by governor mark Warner in 2004, Virginia community capital (Vcc) and its newly created bank, ccBV, are independent financial institutions designed to provide capital for community development projects, affordable housing, and new and expanding businesses in economically distressed regions and communities. Vcc works collaboratively with local banks and other financial institutions to provide loans to borrowers who might not otherwise be served by a commercial bank. Establish a new initiative within the Department of Housing and Community Development to pursue New Markets Tax Credits and coordinate their use with major banks in the Commonwealth. new markets tax credits were authorized by congress in 2000 to attract new investment in distressed economic areas. since their inception, new markets tax credits have been severely under utilized in the commonwealth. creigh will change that and instruct DHcD to aggressively pursue these credits. finish the “last mile” of BroadBand to help small Businesses in underserved areas. although Virginia is a national leader in information technology, many areas of the commonwealth remain isolated due to a lack of affordable broadband
w w w. D e e d s f o r V i r g i n i a . c o m
5
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
services. creigh will make sure we maintain our competitive edge in this rapidly expanding field, connecting more businesses and consumers with an ever-increasing array of online opportunities. in today’s global economy, high-speed broadband is a must-have for small businesses, health care facilities, public libraries, and schools. From developing the broadband toolkit to help communities deploy broadband, to publishing a baseline broadband availability map, the Warner and Kaine administrations have led the way. now almost every major industrial and commercial park in the commonwealth has broadband access. We can’t stop there. Finish the “last mile” of broadband deployment by 2013. creigh will finish the effort that mark Warner started and tim Kaine continued by ensuring that all parts of the commonwealth have affordable broadband access. He will aggressively pursue american recovery reinvestment act funding and create additional incentives to attract private investment, such as exemptions, deductions, and tax credits. Devote special attention to wireless and next generation broadband infrastructure. Wireless and mobile broadband solutions will be a key component of creigh’s “last mile” broadband strategy. Wireless technologies are cost-efficient and are an important complement to traditional land-based broadband services. creigh will work with private sector broadband providers to bring affordable wireless broadband to unserved and underserved areas. create JoBs By Boosting tourism. travel and tourism support 210,000 jobs in Virginia and generate $1.2 billion every year in state and local tax revenue. Every dollar spent on tourism promotion returns $5 to Virginia’s economy—largely in the areas of the state that need it most. Despite efforts by creigh and other members of the legislature to increase state funding for tourism, investment in tourism promotion and marketing has been uneven in recent years. this severely limits the commonwealth’s ability to compete with other states in the region. West Virginia, for instance, spends four times more on tourism development and promotion than Virginia. Double Virginia’s investment in tourism. Virginia currently provides $600,000 per year in matching grants to promote the tourism industry. creigh will double this investment to immediately create jobs. Offer technical assistance to communities and regions that want to develop their tourism industries. as part of this effort, creigh will create a mentoring program for rural entrepreneurs seeking to start a business.
w w w. D e e d s f o r V i r g i n i a . c o m
6
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
Aggressively promote several innovative niche travel products, such as Virginia’s “Green Travel” program, the new “Fish Virginia First” program, and the successful network of tourism “trails” linking historic, cultural, and recreational travel destinations across the Commonwealth. make it easier to start and expand a small Business. small business owners and entrepreneurs are crucial to Virginia’s economic success. the culture of entrepreneurship requires persistence and a knack for solving problems. it shouldn’t require unnecessary paperwork. creigh will cut bureaucratic red tape for small business owners, beginning with a more efficient permitting and licensing process. While much of the paperwork needed to start or expand a business is handled by localities, creigh will help streamline the process at the state level. Offer all required forms for starting or expanding a business online. the Business one stop website informs business owners of all permitting requirements and allows them to track their progress towards licensure. creigh will improve the site by making sure that every required form can be completed online and that state agencies share information and never require business owners to complete the same form twice. Speed the permitting process and make it more transparent. creigh will cut through any red tape that needlessly increases the time it takes for small businesses to obtain permits or licenses. He will also make it easier for small business owners to track the status of their application and the time it takes to obtain different permits. Establish an office within the Department of Business Assistance with the sole function of assisting small business start-ups. this new office will give small business owners a single point of contact in state government devoted to solving the unique challenges of new businesses. increase state contracting for small, women-, and minority-owned Businesses. as we make long-term investments in Virginia’s economy, creigh will make sure that the benefits of economic growth are dispersed competitively, fairly, and equitably. Virginia’s small, Women-, and minority-owned Businesses program (sWam) is a step in the right direction. sWam businesses currently represent 40 percent of state contract expenditures. creigh will ensure that the ownership of businesses holding state contracts more closely reflects the racial and ethnic diversity of the commonwealth as a whole.
w w w. D e e d s f o r V i r g i n i a . c o m
7
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
Surpass the Kaine Administration’s goal of having 40 percent of state contract expenditures go to SWaM businesses. creigh will place special focus on increasing the percentage of contracts going to minority- and women-owned businesses. Register more minority-owned businesses as SWaM businesses through aggressive recruitment efforts, and list these businesses on the Virginia electronic purchasing website. Conduct more frequent public meetings between government officials and minority small business owners. minority business owners could benefit from more frequent public meetings with high-level government officials. public meetings allow officials to brief sWam business owners on the procurement needs of the state, increasing opportunities and exposure for these businesses. train people for JoBs in science and technology-related fields. investing in people is the smartest investment we can make as a commonwealth. creigh will create more options for Virginians to learn 21st century skills with a special focus on science, technology engineering, and math. Add $500 per semester for students in the Two-Year College Transfer Grant program, studying in Science, Technology, Engineering, and Mathematics (STEM) disciplines. the two-year grant program offers a maximum grant of $1,000 per year to students who have completed an associate’s degree and have been accepted to a four-year public university in Virginia. applicants enrolled in an engineering, math, nursing, teaching, or science degree program are currently eligible to receive an additional $500 per semester. creigh will add $500 per semester for these students for an annual maximum grant of $3,000. Offer loan forgiveness for professionals willing to work in STEM disciplines in Virginia. For six years of work in Virginia, creigh will forgive two years of loans. Invest in the network of Governor’s Career and Technical Academies. creigh will build on the Kaine administration’s expansion of the number of high school students gaining verified industry certificates through Virginia’s six national governor’s association stEm grant-funded schools. train more nurses to work in high-need areas. at a time when most sectors are shedding jobs, the country is suffering from critical shortages of qualified health care professionals, especially in rural areas. thousands of qualified applicants are being turned
w w w. D e e d s f o r V i r g i n i a . c o m
8
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
away from nursing programs in Virginia due to a lack of capacity, while the demand for fulltime equivalent registered nurses is expected to increase by roughly 43 percent between 2000 and 2020. Create a “Caring for Virginians” initiative to help Virginia’s two- and four-year public colleges and universities increase the capacity of their health care training programs. creigh will offer grants to Virginia two- and four-year public colleges and universities to expand health career training programs for fields that are in particular demand in rural areas, such as nursing and dentistry. the schools will be responsible for meeting defined accountability targets and for encouraging graduates to work in high-need areas. Offer loan forgiveness for nurses willing to work in high-need areas. For six years of work in a high-need area in Virginia, creigh will forgive two years of loans. Require an annual review of programs to ensure Virginia is investing in areas where graduates are needed most. help responsiBle homeowners remain in their homes. the center for responsible Lending projects over 48,000 foreclosures in Virginia for 2009. While some borrowers took on loans they knew they could not afford, many Virginians were the victims of unscrupulous lending practices. a foreclosure is a lose-lose outcome from an economic standpoint: the homeowner loses their home and the lender takes a loss. as a leader in the state senate on mortgage reform, creigh understands the challenges facing homeowners and the negative impact of foreclosures on communities. to address this problem, governor Kaine created a Foreclosure prevention task Force composed of industry experts. While several of the recommendations of the task force, such as improving mortgage counseling services, have been acted upon, others have not. creigh will do more to help homeowners. Ban negative amortizing mortgages. negative amortizing mortgages begin to drain equity from homes the minute the homebuyer signs the mortgage. the lender can begin the foreclosure process as soon as the home is drained of its equity. many other states have passed laws banning these mortgages. creigh will do the same in Virginia. Eliminate prepayment penalties for fixed rate mortgages up to $125,000. prepayment penalties punish homeowners for paying back their mortgages ahead of schedule. Virginia currently prohibits prepayment penalties on fixed rate mortgages less than
w w w. D e e d s f o r V i r g i n i a . c o m
9
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
$75,000. creigh will raise the prepayment limit from $75,000 to $125,000 to give homeowners more financial options. Create a foreclosure hotline. one of the recommendations of governor Kaine’s Foreclosure prevention task Force was to create a mortgage foreclosure hotline to connect distressed borrowers with experienced mortgage counselors. states like colorado and north carolina have had success with foreclosure hotlines, and Virginia can follow suit. Fund consumer education programs that teach high school students basic consumer economics. informed consumers are more likely to make responsible decisions about debt. creigh believes it’s critical to support programs that teach young people good economic habits early in life.
create JoBs through a statewide transportation plan
a modern transportation infrastructure is the key to the commonwealth’s future economic growth. Earlier this year, the state of Washington passed a $7.5 billion transportation package that will create 49,000 jobs. Even a more modest package in Virginia would put tens of thousands of people back to work building new roads and upgrading infrastructure. solving our transportation challenges will open up the avenues of commerce, allow businesses to move goods more efficiently, and help commuters spend more time on the job and less time stuck in traffic. to get a billion dollar transportation proposal through the legislature, it will take a governor who can bring people together from all parts of the commonwealth. as he has demonstrated throughout his career, creigh is not afraid to work across the aisle to get things done. During his first year in office, creigh will make it his top priority to find a workable, creative transportation solution that restores trust in the system and meets three basic criteria: the plan must be long-term in scope, with long-range, multi-modal solutions that move people and goods more efficiently; the plan must be statewide in conception, so that every part of the commonwealth has a stake in the outcome; and the plan must be creative in nature, incorporating innovative solutions like incentives for telecommuting and bus rapid transit.
w w w. D e e d s f o r V i r g i n i a . c o m
10
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
While the details of the plan must be developed in collaboration with members of the general assembly and local stakeholders, there are several components that should be a part of any comprehensive transportation strategy. creigh will: Bring high-speed rail to virginia. High-speed rail is one of those rare technologies that could change the way we live and work. With a high-speed train exceeding speeds of 200 miles per hour, a worker could live in Blacksburg and commute to work in Fairfax. this would change the way we do business in Virginia and bring countless benefits to communities across the commonwealth. High-speed trains move people quickly and efficiently, while saving millions in energy costs. the federal government has set aside $8 billion in the american recovery and reinvestment act for high-speed rail investments. Fortunately, Virginia is well positioned to pursue these funds: the southeast High speed rail corridor, which runs from Washington, D.c., through Virginia to charlotte, north carolina, was one of the u.s. Department of transportation’s five originally proposed high-speed passenger rail corridors back in 1992. Secure federal funding for high-speed rail projects in Virginia. creigh will work with our partners in north carolina and the District of columbia to secure funding for high-speed rail construction. Build a high-speed rail “spur” connecting Norfolk to Petersburg. the additional track from petersburg to norfolk is a tremendous opportunity for the people of Hampton roads, and creigh will fight for it. expand traditional freight and passenger rail service. While high-speed rail often steals the spotlight when it comes to new rail investments, we should not forget about traditional freight and passenger rail. there are several planned or ongoing rail projects across the commonwealth that would reduce traffic on major roads and improve the flow of goods from one part of the state to another. Improve safety on I-81. the i-81 crescent corridor project will improve safety on i-81 and take as much as a million truckloads of freight off highways every year. creigh will continue to support this effort and others that divert freight to rail along the i-81 corridor. Expand freight and passenger rail throughout Virginia. this year governor Kaine announced expanded passenger rail service for the routes from Lynchburg and richmond to Washington, D.c., which are expected to remove 1.4 million cars from
w w w. D e e d s f o r V i r g i n i a . c o m
11
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
the highways, save more than 8.3 million gallons of fuel and eliminate 66,000 tons of carbon emissions each year. creigh will continue to invest in freight and passenger rail projects to build on these efforts. extend metro service to dulles airport. the Dulles corridor metrorail project will be a crucial link between parts of northern Virginia that rely almost exclusively on auto transit. thanks to a $900 million investment by the federal government, builders have finally broken ground on phase one of the project. Make sure the Tyson’s Corner extension is completed on time and that the phase two extension continues as planned to Loudoun County and Dulles. connect transportation planning with smart land use decisions. responsible land use planning is the best way to get the most out of our infrastructure investments and lay the groundwork for sustainable economic development. smart planning saves taxpayers money, reduces traffic congestion, helps protect the environment, and strengthens communities. governor Kaine has made great strides in this area by promoting urban Development areas (uDas) that concentrate growth around existing communities located near mass transit options and by setting subdivision street standards. Prioritize growth in corridors that already have the necessary transportation and municipal infrastructure. Improve the coordination of land use planning across state departments. governor Kaine made significant progress on this front when he created a sub cabinet on community investment. strengthen independent oversight of vdot. the commonwealth transportation Board (ctB) is responsible for overseeing the Virginia Department of transportation (VDot) and helping to set its long-term policy agenda. this is a key function, given that VDot has the huge task of operating and maintaining the third largest state-maintained highway system in the country and building new roads. creigh will reexamine the roles of these two independent but interconnected bodies to improve planning and eliminate inefficiencies. Work with all stakeholders to review CTB’s mission and long-term goals. Provide CTB with watchdog staff to oversee VDOT and recommend areas for improvement and savings.
w w w. D e e d s f o r V i r g i n i a . c o m
12
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
promote telecommuting and other innovative programs that take cars off the road. rush hour traffic is both irritating and costly. traffic in urban areas alone costs the commonwealth over $3 billion per year. Virginia already has several programs designed to reduce congestion during peak hours, such as HoV lanes, telecommuting, flextime agreements, and ridesharing. creigh will encourage commuters to take advantage of these innovative solutions and set clear goals for results. Creigh will offer businesses a $1,200 tax credit per teleworking employee and a $500 tax credit for each employee working under a flextime agreement. one study estimates that telecommuting options, when combined with flexible work schedules, can reduce rush hour traffic 20 to 50 percent. Set a goal of reducing rush hour traffic by five percent each year, or by 20 percent overall, by the end of Creigh’s term. maximize economic opportunities linked to the port of virginia. the port of Virginia is one of the commonwealth’s greatest economic assets. though it consistently ranks among the busiest ports on the East coast, Virginia has neglected to provide sufficient public funding to maintain the port’s competitiveness with neighbors like charleston and savannah, which recently overtook Virginia as the second largest container port in the region. savannah boosted container traffic by 20.6 percent after making upgrades to its port. the opening of the third lock of the panama canal, scheduled for completion in 2014, is expected to produce over $6 billion in revenues by 2025. Virginia simply cannot afford to miss out on this outstanding economic opportunity. Make necessary upgrades to the Port of Virginia’s Norfolk International Terminal, Portsmouth Marine Terminal, and Newport News Marine Terminal. Work with the Navy and defense contractors to maximize economic opportunities associated with Naval Station Norfolk—the world’s largest Naval Station—and the Norfolk Naval Shipyard. Invest in the Heartland Corridor road and rail network. Virginia’s Heartland corridor road and rail network connects the port of Virginia to points west as far as chicago. a distribution network of state highways provides crucial connections to economically distressed areas of southwest and southside. Virginia is in the process of making much-needed upgrades to the Heartland corridor network, including expanding route 58 to four lanes.
w w w. D e e d s f o r V i r g i n i a . c o m
13
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
complete construction of the coalfields expressway. the coalfields Expressway (u.s. route 121) is a proposed four-lane highway stretching 51 miles from pound in Wise county through Dickenson and Buchanan counties to the West Virginia line. the new road will link interstates 64 and 77 in West Virginia with routes 23 and 460 in Virginia, connecting southwest to points throughout the region. thanks to the outstanding efforts of governor Kaine, congressman Boucher, state senator puckett and Delegates phillips and Bowling, among others, the entire region is likely to see a significant boost in commerce and tourism. Provide additional Transportation Partnership Opportunity Fund grants as needed to complete construction of the Coalfields Expressway in southwestern Virginia. Build light rail and Bus rapid transit. throughout his career in the legislature, creigh has been a leader in mass transit projects and investments. He believes that two new technologies deserve special attention: light rail and bus rapid transit. Light rail technology presents a unique solution for urban environments. Electric light rail trains are faster and larger than trams and are readily adaptable to existing transportation networks and rightsof-way. the city of norfolk is currently building a light rail system called “the tide” with the possibility of expanding service to Virginia Beach and to norfolk naval Base. Bus rapid transit is another promising option for Virginia, cheaper than traditional rail and faster than a regular bus line. the city of Los angeles has had great success with its bus rapid transit system, recently increasing ridership by 40 percent. Work with localities to expand light rail service throughout the Hampton Roads region. creigh will also direct his secretary of transportation to identify other areas of the state that could benefit from light rail projects. Support additional grant funds for mass transit in the Department of Rail and Public Transportation. expand capacity of hampton roads connectors. traffic in Hampton roads serves as a serious barrier to economic development. Provide relief from congestion by investing in greater capacity of the bridges and tunnels that connect Hampton Roads. this can be done in multiple ways including expanding tunnel capacity or building a third crossing. recent delays caused by flooding in the Hampton roads Bridge-tunnel underscore the need for new solutions. creigh will support the final decision of the people of Hampton roads on whatever path they choose to pursue.
w w w. D e e d s f o r V i r g i n i a . c o m
14
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
make virginia a leader in green energy JoBs
new energy technologies will play a key role in building Virginia’s next economy. Virginia must take advantage of opportunities in rapidly expanding fields like biomass production, wind power generation, and clean coal research. By developing innovative ways of reducing fossil fuel consumption, creigh will create thousands of new jobs in the commonwealth and attract millions in new investment from private and public sources. as a legislator, creigh sponsored several bills designed to make Virginia a better place to do business for green energy companies, including tax exemptions for wind and solar projects and changes to the state code that would allow consumers and small businesses to sell back more of their renewable energy to utilities. as governor, he will position Virginia as a leader in the green energy field. creigh will: Build an energy-Based research triangle. Virginia is home to some of the country’s top universities and technology-based businesses. individually, these universities are involved in some of the most cutting edge energy technology research in the country. Virginia tech is working on creating next generation biofuels from plants such as switch grass and poplar; the university of Virginia is a leader in hydrogen fuel cell technology; James madison university has been exploring ways of turning chicken waste into energy; and old Dominion university is deeply involved in algae-to-energy projects. Despite these existing individual strengths, Virginia lacks a coordinated research and development strategy for supporting technology start-ups that create high-paying jobs in high-growth industries. in south carolina, the centers of Economic Excellence (coEE) initiative has created more than 2,000 jobs since its inception in 2002. By leveraging private investment and requiring universities to raise dollar-for-dollar matching funds, south carolina was able to create these jobs and boost competitiveness with only $66 million in state funds. Legislation passed earlier this year by the general assembly (HB 2201 and sB 1456) merged the innovative technology authority and the Virginia research and technology advisory commission into a single entity. this is an important step towards aligning research investment with job creation in new energy technology, modeling and simulation, information technology, nanotechnology, and biotechnology. as governor, creigh will invest in these new technology fields, with a special focus on new energy technologies. strategic investments in new energy technologies will diversify and strengthen regional economies, allow our research institutions to capitalize on partnerships with private industry, and help move Virginia away from carbon-based fuel sources.
w w w. D e e d s f o r V i r g i n i a . c o m
15
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
Create an energy-based research consortium comprised of representatives from Virginia universities involved in energy-related research, the Virginia Community College System, federal laboratories, and the business community. the consortium will work to secure new federal grants for large research projects, identify opportunities for new revenue from the commercial licensing of patents, and stimulate investment in the next generation of energy-based start-up companies in biomass, wind, solar, smart grid technology, and clean coal. Build three new biomass facilities. Biomass is the most abundant renewable resource in Virginia, with one of the highest investment-to-job-creation ratios of any renewable energy source. creigh will build three new facilities in Virginia that leverage the state’s natural and marine resources. Create a national marketing program to increase awareness of Virginia’s strengths and attract private investment in green energy. attracting private investment will help move solutions more quickly from lab to market. create a strong Business environment for green energy companies. green energy companies are attracted to states that have made a firm commitment to alternative energy. creigh believes that we cannot afford to lose opportunities to create good-paying jobs in this high-growth industry, simply because our policies lag behind. Offer competitive grants to green energy companies that invest at least $50 million and create at least 200 jobs. Virginia already offers incentives to solar manufacturers through the solar manufacturing incentive grant (smig) program. creigh will expand this program to include companies in all green energy-related industries. Pass a responsible mandatory RPS of 15 percent by 2020 and 22 percent by 2025 to help attract green energy businesses to the Commonwealth. Virginia’s current voluntary standard of 15 percent is simply not enough to keep Virginia competitive with states like ohio, which passed a law requiring that utilities produce 25 percent of their energy from renewable source by 2025, and neighbors like maryland, which has a 20 percent by 2022 mandatory requirement. industry experts project that a mandatory national renewable standard could create at least 240,000 jobs by 2020. put people to work weatherizing homes and Businesses. Weatherization grants help Virginians—especially Virginians from low-income backgrounds—save money on electricity bills. they also put people to work immediately. according to the Department of Energy, every million dollars of investment in weatherization programs creates 52 jobs.
w w w. D e e d s f o r V i r g i n i a . c o m
16
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
Strengthen oversight of federal weatherization funding and speed the distribution of federal funds. the american recovery and reinvestment act allocated $94 million to Virginia for weatherization programs, yet much of this money has not been spent. creigh will work with the Department of Housing and community Development to strengthen oversight of weatherization contracts and increase the number of families receiving assistance through this program. Put $25 million per year into low-income weatherization grants when stimulus funding runs out. creigh will fund weatherization programs at $25 million per year after the stimulus funding expires.
make government leaner and more efficient
at a time when hardworking families are cutting back on their spending, Virginia state government needs to do the same. as long as we are in a national recession, declining state revenues will force us to make tough decisions about our priorities as a commonwealth. and just as hardworking families are constantly looking for ways to save money without affecting their quality of life, state government needs to look for ways to cut costs without reducing the quality of the services we provide to taxpayers. Beginning with governor Warner’s “Virginia performs” effort, Virginia became a leader in getting the most out of every taxpayer dollar. as a legislator, creigh supported this effort and also voted for regular performance audits of state agencies. as governor, creigh will make sure that taxpayers are never asked to pay even a dollar more than what’s needed. creigh will: name an efficiency improvement director from the Business community to conduct regular performance reviews. successful business owners know how to cut overhead costs and maximize profit margins. creigh will bring that business-like approach to managing the commonwealth to keep Virginia’s distinction as the country’s Best managed state. Name an Efficiency Improvement Director from the private sector and charge him or her with conducting continual and wide-ranging reviews of all state government functions. the Efficiency improvement officer will work closely with the secretary of Finance and other state agencies, but will report directly to the governor. Create and fund a permanent Efficiency Improvement Office to carry out regular, on-going, intensive performance reviews of all state government. this office will start with performance reviews of every agency and every cross-agency function in state
w w w. D e e d s f o r V i r g i n i a . c o m
17
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
government. in texas, where the first statewide performance review was conducted nearly two decades ago, this process was institutionalized and has been repeated each year since, generating additional savings every year. Enact a “sunset law” requiring every state agency to undergo an efficiency review at least once every decade. Set a goal of saving between one and six percent of the General Fund budget. performance reviews in other states have been able to identify savings amounting to one to six percent of the general Fund budget. For example, new mexico’s performance review identified improvements worth over $300 million over five years, or an average of $78 million per year. texas uncovered an average of $2.3 billion for fiscal years 2004 and 2005 and $10 billion in savings in the first decade alone. in the state of Washington, reviews of dozens of agencies cost just under $15 million in state resources and saved over $3.5 billion. Based on results in these and other states, creigh believes a thorough performance review could identify up to $500 million in efficiencies for Virginia. introduce a wide range of specific savings and efficiencies in state government. creigh will immediately pursue several possible areas of savings. Aggregate state drug purchases to cut costs. Virginia state government currently pays for drugs at a wide variety of facilities—from prisons to schools—in addition to paying for the pharmacy purchases of thousands of state workers and medicaid beneficiaries. Just as a family can save money by buying in bulk, Virginia should aggregate drug purchases across state agencies and use the larger purchase order to bargain for lower costs and get a better deal for taxpayers. Get smarter about energy savings in state facilities. green Buildings typically consume 40 percent less energy and at least 40 percent less water than traditional office buildings, resulting in significant savings on utility bills over the lifetime of a building. Virginia spends over $300 million on energy costs each year, a number that is projected to grow to $395 million next year. as governor, creigh will issue an executive order that all new state buildings and new state leased space meet green Building standards. He will also set a goal for Virginia state government to reduce its energy use by 20 percent by the end of his administration. other states have saved millions of dollars by moving toward 20 percent energy reduction targets. one pilot effort in colorado reduced energy costs by 25 percent across four state agencies. applying a conservative estimate, statewide savings in Virginia could reach at least
w w w. D e e d s f o r V i r g i n i a . c o m
18
governor
J u m p - s ta r t v i r g i n i a’ s e c o n o m y
five percent on all utility costs. that translates to savings in the range of $60 and $80 million per year for Virginia. Reduce the state’s cost for durable medical equipment. creigh will instruct state agencies to purchase durable medical equipment (DmE) through a competitive bidding process that includes negotiated discounts for volume. Florida, texas and new york competitively bid out DmE purchases. Federal demonstration projects have shown that overall savings to the medicare program range from 17 to 22 percent. in the two demonstration sites of polk county, Florida and san antonio, texas, net savings for medicare DmE expenditures totaled $2.7 million. Streamline and combine consumer services. a variety of state agencies currently operate their own consumer services divisions. creigh will combine the consumer services portion of agriculture (not including weights and measures) with the consumer services sections from the office of the attorney general, the state corporation commission, and others to provide better services for what we currently spend. Create a state employee workforce plan to mitigate the impact of a large number of retiring workers. the plan should include introducing technologies and revising processes to lessen the need for replacement employees, with an explicit plan to limit the replacement of retired employees with higher priced contractors. Conduct an unclaimed property auction. Florida raised over $800,000 in its unclaimed property auction in 2007.
w w w. D e e d s f o r V i r g i n i a . c o m
19
creigh deeds’ plan to Jump-start virginia’s economy:
executive summary
immediate solutions for small Business owners, homeowners, and workers provide tax incentives for businesses that create jobs. Help unemployed workers purchase emergency health insurance. Double the governor’s opportunity Fund and put $10 million into job training. create a rural Business Fund to help small businesses in economically distressed communities. Finish the last mile of broadband by 2013. Boost investments in the tourism industry. cut red tape in the small business permitting process. increase state contracting for small, women and minority-owned (sWam) businesses. train people for jobs in science and technology related fields. train nurses to work in underserved areas. Ban harmful mortgage lending practices and create a new foreclosure prevention hotline. an innovative statewide transportation plan Bring high-speed rail to Virginia. Expand traditional freight and passenger rail.
reduce rush-hour traffic through telecommuting and flextime tax credits. promote smarter land use planning. strengthen oversight of the Virginia Department of transportation (VDot). invest in the port and work with military contractors and the navy. Expand road and rails projects in southwest and southside. Ease congestion on the chesapeake Bay Bridge tunnel. strategies for making virginia a leader in green energy industries Build an energy-based research consortium to coordinate research and development in green energy industries. create a strong business environment for green energy companies. Fund weatherization projects that help low-income Virginians save on their energy bills. a plan to make government leaner and more efficient name an Efficiency improvement Director from the business community. require state government to purchase drugs in bulk to save money. promote energy savings in state facilities. institute competitive bidding for durable medical equipment purchases. streamline consumer services to maximize efficiency. create a state employee workforce plan. conduct an unclaimed property auction.
paid for and authorized by Deeds for Virginia.