Governor’s economic development, jobs panel devoid of local officials

Gov. Bob McDonnell’s 64-member Economic Development and Job Creation Commission includes no local government officials. No mayors, no council members, no supervisors, no managers and no administrators were named to the high-profile commission, which will play an important role in an effort the governor has labeled the highest priority of his administration. McDonnell announced the appointments on April 19.

Local governments are critical to economic development in Virginia. Local and regional agencies work with the Virginia Economic Development Partnership to attract and recruit prospects. Local government partners with the state to develop and pay for the infrastructure (i.e., roads, water and sewer lines and connections, rail spurs, etc.) needed to secure a commitment from a business prospect. Local governments educate the children of the new workers; provide public safety services to protect workers, their families and property; and provide many of the “quality of life” features that make Virginia’s cities, towns and counties so attractive to out-of-state and foreign investors.

Upon taking office in January, McDonnell’s first executive order (http://bit.ly/bupPU5) established the title of chief job creation officer and the Governor’s Economic Development and Job Creation Commission. The purposes of the commission are to:

1. Identify impediments to and opportunities for job creation;

2. Review how other states and foreign countries are attracting jobs and how Virginia could replicate and improve upon those initiatives;

3. Review the role of state agencies in creating jobs and make recommendations on how those efforts can be better coordinated to ensure unparalleled efficiency and effectiveness;

4. Make recommendations on new investments and changes to the state tax and regulatory environment to maintain and increase the Virginia’s standing as the best place to do business in the United States;

5. Evaluate the current programs and investments designed to develop the workforce and attract and retain businesses in Virginia, and make recommendations on their effectiveness and need for improvement; and

6. Assist the cabinet and the Virginia Economic Development Partnership to identify and target industries and businesses for recruitment.

Lt. Gov. Bill Bolling serves as the chief job creation officer. Bolling and Bob Sledd, the governor’s senior economic adviser, serve as co-chairs of the commission. The initial report is due in October.

The list of appointees, an assortment of state bureaucrats, business leaders and business lobbyists, can be seen at http://bit.ly/bCBq6j. contents

State tax collections show uptick in March

March general fund revenue collections were up 3 percent over March 2009, Secretary of Finance Ric Brown told the Senate Finance Committee last week. This is just the third time in nearly two years that monthly tax collections increased.

March, however, is not typically a significant month for revenue collections. An extra deposit day helped to boost the growth. On a year-to-date basis, state revenues actually have fallen 4.1 percent, trailing the annual forecast of a 2 percent decline.

The long drought in revenue collections may be better understood from newly-released economic data. Economists had previously thought that the state’s economy shed 90,600 jobs in calendar year 2009. Revised data show 126,100 jobs were actually lost. On a fiscal year basis, the initial data indicated that Virginia employment fell by 2.4 percent over the first six months of FY10. The revised data, however, show a higher 3.8 percent. In February, the most recent month available, the unemployment rate rose to 7.7 percent, which is the highest rate since February 1983 (27 years ago).

The Virginia Leading Index fell 0.1 percent in February across the state, the first decline in nine months. But, the index did rise in Hampton Roads, Northern Virginia, Richmond and Roanoke.

Revenue source	FY10 estimate	March data	YTD growth	Needed to meet forecast
Net individual income tax	$8.96 billion	$545.29 million	(5%)	(5.5%)
Sales and use tax	$3.04 billion	$192.47 million	(3.8%)	4.8%
Corporate income tax	$772.6 million	$42.23 million	22.2%	19.2%
Wills, suits, deeds, contracts	$299 million	$23.91 million	(4.3%)	(4.9%)
All other GF revenues	$950.4 million	$87.20 million	(7.7%)	4.6%
TOTALS	$14.02 billion	$891.10 million	(4.1%)	(2%)

The April, May and June collections will determine if the state meets the FY10 revenue forecast. The Commonwealth is hoping that a program to accelerate sales tax collections this June will produce enough revenue to overwhelm the state’s continuing poor economics. contents

Proposed local budgets becoming reality

Local budget development for FY11 is drawing to a close as the final rounds of public hearings and council debates take place. Here’s a snapshot about what’s going on across the state.

Northern Virginia

The Arlington County Board of Supervisors unanimously adopted its FY11 budget, which includes an 8.3-cents increase in the real estate tax rate, reductions of 57 general fund positions and $13.7 million in service cuts, and a 0.3 cents increase in the stormwater tax rate. Combined tax and fee increases mean the average household will pay an additional $346 annually. The board restored nearly all proposed cuts to the police and fire departments, partially restored cuts to parks, libraries and human services, and added funds for affordable housing. The board also restored some state funding cuts, which have totaled $18 million over the last three years. (Since 2009, the county reduced the number of employees by 160 full-time positions. In FY10, the county cut services by $19.5 million.) As for the school budget, the county will fully fund an increase of 699 enrolled students, providing 2.3 percent more in FY11 than in FY10 for the school system.

Before adopting its FY11 budget this week, Falls Church City Council is working to shave up to five cents off the city manager’s recommended real estate tax rate hike. In a budget work session, the seven council members generated a list of potential savings to reduce the tax rate increase of 15 cents per $100 assessed value proposed by the city manager.

The Fairfax County Board of Supervisors adopted its FY11 budget earlier this week. The board settled on a real estate tax rate of $1.09 per $100 of assessed valuation, which is a five-cent increase over the current rate that will produce a net reduction for the average homeowner’s tax bill of $26.93. The FY11 budget will be less than the current budget. The county will reduce its contribution to the school system by 1 percent. However, the approved transfer level, in combination with state funding of the Local Composite Index formula, will restore band and music and language immersion programs. The transfer also provides the school system with a $45 million balance for future Virginia Retirement System contributions.

The net change in county positions in FY11 is a decrease of 176 positions from the current budget.

County finances have been hit by a 6 percent decline in residential property values along with an 18 percent drop in commercial property values. In addition, home foreclosures remain a serious problem. County officials believe that real estate assessments will continue to fall in FY12 and that overall county revenue will most likely decline in FY12.

Hampton Roads

In Portsmouth, the school superintendent is proposing additional cuts to balance a budget that assumes the city will continue its current level of support to next fiscal year. The school board will vote on the final budget May 27. The proposal includes cutting an additional 10 positions and further trimming of supplies and services. Next year’s school budget will be $14.2 million less than the current year. The school board has already approved eliminating 109 positions, including 22 teachers and 39 general paraprofessionals.

Virginia Beach City Council is holding public hearings on the budget before taking final action on May 11. The proposed budget contains a 7 percent reduction from the current budget, and includes cuts to services such as libraries, delays in road projects, and the elimination of almost 200 positions, half of which are filled. The city’s police chief is concerned over the loss of positions at the same time the number of property crimes is increasing.

More than 230 city jobs would be eliminated, most recreation centers and libraries would close one day a week, and a number of construction projects would be delayed in the budget presented by the city manager to Norfolk City Council. Because of falling local tax collections and declining state aid, the budget includes service reductions affecting most residents. Residents would also see increases in fees, including car taxes.

The operating budget in FY11 would fall by 5 percent. The proposed budget does not include a hike in real estate taxes, but personal property taxes on vehicles would cots the average vehicle owner about $3 more per year. Fees for many services, including renting softball fields and obtaining a building inspection would increase. City employees would be asked to pay for half of an expected increase in health care costs, resulting in a pay cut of about 1.7 percent. Of the 230 positions slated to be eliminated, 85 or 37 percent are currently filled. These position cuts affect human services, public safety, libraries, parks and recreation, and community development.

Chesapeake City Council voted to set aside $2.2 million for a retirement incentive program, the second such program in two years. There are 234 employees eligible for retirement. City officials believe that 40 percent will opt for the incentive program. Sixty-five city employees took part in the last voluntary retirement program, which offered higher cash payments to workers.

The Hampton city manager presented to City Council her budget proposal, which is 5.2 percent less than the FY10 budget. The school system’s portion of local funding falls by 11.6 percent. City finances are squeezed between a $3 million plunge in real estate values and $2.7 million in state budget cuts. The city budget faces a $19 million shortfall, and the schools are looking at a revenue loss exceeding $23 million. The proposed budget includes service cuts and increases in user fees. The city will lose 78 full-time positions, resulting in 55 possible layoffs. Department heads and senior staff have volunteered to take a 2 percent pay cut.

Valley

Staunton City Council discussed a plan to raise the city’s personal property tax rate, but did not reach consensus. The city manager suggested increase the tax rate from $2.00 to $2.40. The increase would eliminate the need for a vehicle decal. Additional revenue would be targeted for street construction projects. Council also received a report from the school superintendent who recapped the more than $4 million worth of cuts needed to create a balanced budget because of local, state and federal cuts.

Salem School Board adopted its $42 million budget earlier in April. The board met recently to approve salary scales. Their decision was to leave the pay scales relatively unchanged from last year, making this the second year in a row that salaries will stay in a holding pattern. The school budget is about $2.2 million less than the current year. City Council is expected to approve the overall budget plan this week.

In Roanoke, there will be 66 fewer employees in the city’s school system in FY11. This is on top of the 88 positions cut this school year. The school division anticipates a budget shortfall next year of $4.4 million.

Elsewhere

In Martinsville, the city is taking steps to reduce staffing this year in order to balance the current budget for the remainder of the year and to reduce personnel costs in the upcoming budget year. Twelve full-time positions are being eliminated affecting public safety and public works. In the past three years, more than 11 percent of the city’s workforce has been eliminated. The city will also implement employee furloughs in the current and upcoming budget years. Constitutional offices, as well as the entire city municipal building and other city administrative offices, will close at the same time on the Friday preceding Memorial Day weekend. The city also announced that it will use contract and inmate labor to collect garbage. contents

VRS trust fund approaches $51 billion

The trust fund managed by the Virginia Retirement System continues to reap the benefits of the recuperating stock market. The total value of the fund was almost $51 billion as of April 14. The fund was valued at $48.3 billion on Dec. 31, 2009, and $38.9 billion in March 2009. The fund experienced its highest value in October 2007, when its worth was $60 billion.

VRS Chief Investment Officer Charles Grant said that overall, the fund had “a very strong performance for this part of the fiscal year.” He predicted that economists will say that the recession ended in the 4th quarter of 2009, and said that the economy is growing and the recovery seems to be expanding. Grant made his remarks at the April 15 meeting of the VRS Board of Trustees.

Grant said that the real estate sector is far from out of the woods, and deflation is not totally off the radar screen. Deflation is a general decrease in the price of goods and services. contents

Policy committee meetings date set; submit nominations as soon as possible

All six of VML’s policy committees will meet on Thursday, July 29, at the Greater Richmond Convention Center. The meetings will run from 10 a.m. until 12:15 p.m., and from 1:30 to 3:45 p.m. Individual committee meeting times will be released soon.

There is still time to turn in policy committee nomination forms. If your local government needs a form, please e-mail Janet Areson at jareson@vml.org. contents

Newly elected officials conference scheduled

A Conference for Newly Elected Officials will be held July 15-17 at the OMNI Hotel in downtown Richmond.

Information regarding the program, registration and hotel reservations will be sent to managers and clerks following the elections in May.

VML holds a conference for newly elected officials twice in each even-numbered year: in January following elections in November, and in July following municipal elections in May.

Sessions will focus on the fundamentals of serving as a council member, including information on making the most of meetings, freedom of information, public officials’ liability, budgeting and other topics.

While the conference is designed primarily for newly elected office holders, incumbents and staff will find the conference to be a useful refresher course, and are welcome to attend. contents

EPA offers greenhouse landfill gas reporting training

Under the new Mandatory Reporting Rule for Greenhouse Gases (GHG-MRR), stationary facilities generating at least 25,000 metric tons per year of GHG (CO2 equivalent) will be required to submit their first report of emissions on March 31, 2011.

Municipal landfills fall under this category for threshold reporting and must begin collecting information this year to comply with the new rule. To assist Virginia facilities in preparing their report, EPA Region 3 has partnered with the Office of Atmospheric Programs (OAP) to provide a regional training session on the rule. The training is scheduled for Wednesday, June 2, at the Philadelphia Airport Marriott.

The training session will begin at 8:30 a.m. They will cover:

• General rule requirements;
• Stationary fuel combustion sources (including electricity generation);
• Municipal solid waste landfills; and
• Questions and answers

Pre-registration is required. To register, visit http://bit.ly/91BiN4.

EPA will not be reserving accommodations for attendees. There are, however, numerous hotel choices in the vicinity of the meeting venue.

Additional information regarding location, accommodations, transportation and check-in will be made available on the logistical fact sheet accessible from the registration page. Staff contact: Joe Lerch, jlerch@vml.org. contents

Energy efficiency forum offers local government discount

The Energy Efficiency Global Forum and Exposition hosted by the Alliance to Save Energy will be held May 10-12 at the Washington, D.C. Convention Center. The forum will showcase emerging policies, practices and technologies in energy efficiency from around the world.

Charlottesville Mayor Dave Norris will be a keynote speaker for the opening plenary session. Norris authored Charlottesville’s 2007 Clean Energy Resolution, which set in motion a series of initiatives that have brought the city statewide and national attention for its efforts to promote energy conservation, energy efficiency and renewable energy. One of those initiatives is the new Albemarle-Charlottesville Local Energy Alliance Program (LEAP), which aims to retrofit thousands of homes and businesses in the coming decade to reduce utility bills, slash carbon emissions and promote renewable energy.

In addition to the conference agenda, the forum offers intensive learning opportunities at pre-conference workshops and poster sessions; a full exposition of the latest in technologies and solutions; and networking events to help local governments find new partners in their efforts to promote energy efficiency.

To further encourage local government participation, a special 10 percent discount is being offered. Simply enter ASEF when prompted for the referral code at the end of the registration process.  Additionally, the alliance is providing a one-day rate of $300 to local government employees.

For more information and to register, go to http://eeglobalforum.org/. Staff contact: Joe Lerch, jlerch@vml.org. contents

Public-Private water workshop will be held June 9 in Richmond

The Water Institute of the National Council for Public-Private Partnerships (NCPPP) will conduct a one-day workshop on “The Future of Water Partnerships in Virginia” at the Marriott Richmond West Hotel.

Topics will include:

• The Framework of Public-Private Partnerships (PPPs)
• Introduction to Virginia’s Public-Private Education and Infrastructure Act (PPEA)
• PPEAs and Water, Wastewater, and Stormwater PPPs
• Water Partnerships and the State’s Needs Assessment
• Financing Water Partnerships
• Managing the Energy & Water Partnership

Agenda and registration. Staff contact: Joe Lerch, jlerch@vml.org. contents

How will your community mark 20th anniversary of ADA?

The Americans with Disabilities Act was signed into law on July 26, 1990, by President George H.W. Bush. This legislation established a national mandate for the elimination of discrimination against individuals with disabilities in a number of areas, including employment, access to public buildings, programs and services, transportation, communications and housing. The program focuses on the needs of individuals with disabilities of all ages and all walks of life, including more increasing numbers of veterans.

The Virginia Association of Centers for Independent Living (VACIL), a statewide association of Virginia’s 16 centers for independent living, will be asking that local governments celebrate and recognize the progress that has been made during the past 20 years by reaffirming the principles of equality and inclusion. Their hope is that local governing bodies will issue a proclamation of recommitment to full implementation of the ADA.

To locate your nearest center for independent living, go to www.vacil.org. To request an example of an ADA recommitment proclamation, email or call Karen Michalski-Karney at kmichalski@brilc.org, or 540/342-1231. contents

May 6 webinar to focus on “Project Civic Access”

Project Civic Access is a wide-ranging effort by the U.S. Department of Justice to ensure that local governments comply with the Americans with Disabilities Act by eliminating physical and communication barriers that prevent people with disabilities from fully participating in community life. The department has conducted reviews in all 50 states.

The Southwest ADA Center (www.SouthwestADA.org) will sponsor a webinar May 6 presented by two members of the Department of Justice’s Disability Rights Section. This webinar is intended to help ADA coordinators, local officials, people with disabilities and others to learn about the responsibilities of public entities to comply with the ADA. Recent settlement agreements and best practices for state and local governments also will be discussed.

The webinar is scheduled for 3 p.m. EDT. To link to information about the webinar and to download accompanying materials, visit: http://bit.ly/aXsV2S. contents

NLC-PTI to host government transparency webinar

Local governments are invited to participate in a free webinar on the topic of technologies to increase government transparency from 1:30 to 2:30 p.m. on Tuesday, May 4. The National League of Cities’ Center for Research and Innovation and the Public Technology Institute will host this event.

This webinar will examine the technology tools and practices local governments are using to provide real-time information to residents. The webinar panel will be facilitated by Louisville Council Member Kevin Kramer. He is chair of NLC’s Information, Technology and Communications Policy Committee. The speakers will be Brian Moura, assistant city manager of San Carlos, Calif., and Bill Schrier, chief technology office of Seattle.

The webinar is free, but space is limited, so please register in advance. To register, visit http://bit.ly/aimihw. If you have questions, e-mail Julia Pulidindi of NLC at pulidindi@nlc.org. contents

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