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With only a few weeks to go before the scheduled special session of the Virginia General Assembly, consensus has yet to emerge around a legislative solution to address transportation infrastructure financing.
Last month, Governor Tim Kaine responded to a State Supreme Court ruling overturning last year's landmark transportation package by calling on legislators from across the state to return to Richmond June 23. The Governor simultaneously unveiled a proposed revenue package to restore funding for the construction of critical transportation infrastructure and to close the funding gap for the maintenance of road and transit systems statewide.
The Governor's plan was met with immediate criticism from both sides of the aisle. House Republican leadership questioned the need to address statewide maintenance (despite data showing that maintenance needs will siphon away more than $575 million from new construction projects over the next five years). Senate Majority Leader Dick Saslaw (D-Springfield) took aim at the absence of a gas tax increase in the Governor's proposal, and remains insistent that any legislative solution must include such an increase in the gas tax-- even though representatives of his own party in the House of Delegates disagree, citing the unpopularity of such a proposal at a time when gas prices are at a record high. This public discord between all camps illuminates once again how the transportation issue continues to divide legislators, not just along traditional partisan lines, but into numerous factions representing various regions of the state and stakeholder groups.
Though it was widely panned, the Governor's plan is inciting necessary and critical public debate regarding a transportation solution. Representatives of the Northern Virginia and Hampton Roads delegations have jointly met in Richmond and agreed on a set of shared principles for any transportation package. However, nothing has yet come of that discussion and numerous obstacles remain.
AOBA has joined with 16 other business organizations from across Northern Virginia in signing onto a policy resolution that urges legislators to adopt a significant and sustainable solution to transportation infrastructure financing. The resolution specifically calls for a statewide funding package that will generate a minimum of $400 million annually for new construction needs in Northern Virginia and $1 billion annually to sustain statewide maintenance and construction programs.
In addition to communicating its support for the business community's resolution, AOBA has been meeting individually with key legislators from across the state and who represent different political factions. Our message has been simple:
- Take some kind of meaningful action-- don't come back from a special session empty-handed; and
- Don't place an undue burden on real estate for financing transportation improvements
The State Supreme Court's February decision eliminating regionally-imposed sources of funding for transportation left commercial real estate owners vulnerable. With the regional funding sources off the table, locally imposed increases on commercial real estate taxes are among the only remaining tools available to local governments to raise necessary funds to build new roads and transit facilities. Two jurisdictions (Fairfax and Arlington) have already imposed commercial real estate tax increases beyond the level on which the budget for last year's funding package was predicated. Concerned that other Northern Virginia jurisdictions may follow suit if alternative funding sources are not restored, AOBA has urged the Governor and General Assembly to act quickly to protect commercial owners and their business tenants from shouldering an undue burden. AOBA has also weighed in on proposed increases in the grantor's tax, asking that they also be moderate in order to avoid costly ramifications for the industry, particularly given current market conditions.
Presently, forecasts for the special session are uncertain. It remains unclear whether the various political factions will be able to come together around a single legislative approach, or how long legislators might remain in Richmond.
When the Virginia General Assembly adjourned for the 2008 regular session, a total of thirty-one bills had been referred to the Housing Commission for additional study and recommendations. At its April 22 meeting - the first of the legislative interim - work groups were appointed to focus on five identified policy areas. AOBA has since secured positions on three of those work groups, focusing on housing affordability, housing and environmental standards, and mortgage lending and financial regulation.
Delegate John Cosgrove (R-Chesapeake) was tapped to chair the Housing Affordability Workgroup, which will focus on the growing gap between housing costs and incomes and the need for direct and indirect housing subsidies, as well as on regulatory mandates and incentives for privately generated housing subsidies. In particular, several legislative measures aimed at creating a dedicated state funding source for affordable housing, a concept supported by AOBA, have been referred to Delegate Cosgrove's work group. These measures fell victim to a difficult fiscal environment during the 2008 session, when legislators were struggling to balance the budget. They were, however, carried over to the 2009 session, where they will receive additional consideration.
Delegate Danny Marshall (R-Danville), will chair a work group tasked with evaluating mortgage finance regulatory issues and making recommendations to the General Assembly regarding an appropriate state response. This work group will examine perceived causes of the ongoing mortgage crisis (e.g., unwise borrowing choices resulting from limited financial literacy and/or deceptive, predatory lending practices), and will also look at Virginia's supply and geographic distribution of housing to meet the needs of its population and to sustain long-term economic growth.
AOBA has also secured a critical position on the Housing and Environmental Standards Workgroup, to be chaired once again by Senator John Watkins (R-Midlothian). AOBA sought this position in order to represent the industry's concerns with regard to legislative proposals to mandate retrofitting of automatic sprinkler systems in all high-rise residential buildings across the Commonwealth. Delegate Jennifer McClellan's (D-Richmond) H.B. 333 and S.B. 363, patroned by Senator Watkins, have been referred to this work group. These two bills sought to require that all buildings over 75 feet high or more than six stories high, or which are being used to house individuals or to provide guest rooms for occupancy, be equipped with an automatic sprinkler system by December 31, 2017.
Had the bills been approved, the Board of Housing and Community Development would have been required to promulgate regulations establishing standards for the required systems. AOBA lobbied extensively in opposition to these bills, citing a lack of sufficient information regarding the number and type of affected buildings, as well as the lack of evidence in available fire incidence data to justify the extraordinary costs involved. Consequently, neither of the bills was passed, but both were sent to the Housing Commission for additional study. The House sponsor has indicated her intent to revise the legislation to focus only on senior housing and reintroduce it next year. However, Senator Watkins has indicated that he intends to push for approval of identical legislation in the next session.
Work groups have begun scheduling meetings in conjunction with the scheduled special session to address transportation infrastructure financing. The Mortgage Finance Regulatory Issues Work Group will meet June 23, the Housing and Environmental Standards Work Group will meet June 25, and the Housing and Affordability Work Group will meet June 26. AOBA will be on hand, and will report in At Issue throughout the summer on the Commission's progress.
In the nominating contest held Tuesday, June 10, Democratic primary voters selected Fairfax County Board of Supervisors Chairman Gerry Connolly as the party's nominee to succeed retiring Congressman Tom Davis. Connolly overcame a strong challenge from former Congresswoman Leslie Byrne, who held the seat prior to losing it in 1994 to Tom Davis. Connolly was supported by AOBA's federal PAC, based on his comparatively strong pro-business record in five years as Board Chairman. Connolly next faces Republican candidate Keith Fimian in the general election. If elected to Congress, a special election would be held to replace him as County Board Chairman. Current Supervisors Sharon Bulova (D-Braddock) and Pat Herrity (R-Springfield) have already expressed interest in running to succeed Connolly.
On May 31, Republicans also held a convention in Richmond to select the party's candidate for U.S. Senate. In a very narrowly decided race, former Governor Jim Gilmore defeated Del. Bob Marshall of Manassas. Gilmore will square off against former Governor Mark Warner in what is sure to be a contentious general election in November.
Both of the Republican candidates for the seat ran campaigns that claimed they had the more conservative voting record. Marshall surprised many with the strong base of conservative supporters he brought to the convention and the near-upset they almost delivered. Conservative Del. Jeff Frederick of Woodbridge also scored an upset victory in his bid to replace former Lieutenant Governor John Hager as Republican Party Chairman. The two races might be indicative of the present direction of the Republican Party, which appears to be leaning toward a return to conservative principles.
Prince William County Launches Pilot Program to Speed Commercial Development
Prince William County's Commercial Development Services Division will launch a pilot initiative this summer that is intended to expedite commercial development projects through its sometimes complex permitting system. Under the new program, commercial developers will be assigned "process facilitators" as a single point of contact throughout the permitting of a project, to help reduce redundant requests from different departments. The overarching goal of the program is to reduce the overall timeframe for completion and provide applicants with a more predictable set of guidelines. The program will launch in July and, if successful, may be applied to other permitting constituencies.
City of Alexandria Seeking Public Input on Draft Environmental Charter
The City of Alexandria's Environmental Policy Commission hosted a summit for interested citizens and community members May 10 to unveil and seek public input on the city's first draft environmental charter. The draft document is intended to serve as a guide to city government by defining the city's commitment to sustainability, and providing direction to achieve a set of "essential" sustainability principles and core values linked with the City's 2015 Strategic Plan. While the draft charter has been made public, the city is simultaneously working on creating an environmental action plan that establishes specific policy objectives, identifies programs and resources, sets tentative timelines and develops measures of success, to serve as a road map for the City Council and government leaders. City staff hope to have a plan completed for the City Council's review by fall.
Of particular interest, the draft charter proposes guiding principles for City Council action related to land use and open space, water quality, air quality, transportation, energy, green building, solid waste, environmental health and emerging environmental challenges. Though these principles are in no way binding, they will set the tone for policies to be set by the City Council.
A copy of the draft charter can be viewed online at: http://ecocity.ncr.vt.edu/docs/EcoCityCharterDRAFT.pdf. Please provide any feedback to Brian Gordon at bgordon@aoba-metro.org.
Report Cites New Recycling Record in Fairfax County
A report released by the Fairfax County Solid Waste Management Program earlier this month shows that 488,492 tons of waste were recycled this year by Fairfax County businesses and residents. That equates to 38 percent of all waste generated in the County last year.
The County attributes this new record (a three percent increase over last year) to the new recycling requirements that went into effect this year, which require all non-residential and multifamily properties to recycle mixed paper and cardboard. Multifamily properties were also required to provide can and bottle recycling to tenants.
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