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From the President |
 On September 7th, the Virginia Chamber partnered with the U.S. Chamber of Commerce to host a Business Roundtable with Governor McDonnell. The discussion focused on the importance of free enterprise and highlighted the key role states play in creating a business-friendly environment.
The U.S. Chamber presented the Enterprising States study that was released at the U.S. Chamber's 2010 Governor's Summit, as well as a state specific analysis of Virginia. The entire forum and a copy of this study may be found online by clicking here.
It is clear that Virginia continues to lead the way as the best state in which to do business. Governor McDonnell has been a steadfast supporter of economic development and has consistently sent the message that job creation is the number one priority for the Commonwealth. We applaud his efforts and welcome the opportunity to work with his Administration to maintain momentum in this area as well as face the challenges that threaten our economic recovery.
In keeping with our advocacy efforts to make Virginia a leader in job creation, the Virginia Chamber will host in the fall the Virginia Economic Summit: "Preparing for a Brighter Future." It is our goal to bring together all major stakeholders in a concerted effort to help promote our much-needed and hoped for economic recovery. With an anticipated attendance of over 500, the Summit will present unique ideas for Virginia's businesses, government leaders, and economic developers. We will celebrate the Commonwealth's successes, recognize the existing threats and focus on strategies for a brighter future.
Summit speakers will include Virginia's pre-eminent CEOs who will discuss reasons their businesses are located here and what the Commonwealth must do to remain an outstanding place in which to do business. Governor McDonnell will be invited to share his administration's strategies for growth based on recommendations from his Commission on Economic Development & Job Creation. We also plan to hold panel discussions focusing on key threats and opportunities impacting Virginia's companies such as health care costs, transportation, economically distressed areas, tourism, workforce training, and innovative economic development programs.
The prestigious Virginia Torchbearer Awards will also be presented at the Summit. Created to honor those individuals and organizations whose innovative products or services have propelled Virginia's progress and prosperity, the 2010 Torchbearer Awards will recognize leading economic developers and highlight their crucial role in our state's economic success. We are currently seeking nominations and encourage economic development organizations, local governments, educational institutions and technology councils that have made a creative and significant contribution to Virginia in terms of facilitating new business attraction, business retention and the creation of new jobs to apply. The deadline for nominations is October 20. Please click here for more information.
Finally, while there are many threats on the horizon, I want to mention an immediate concern. Secretary of Defense Gates recently announced his decision to close the U.S Joint Forces Command located in Hampton Roads. In addition, he supports reducing federal contracting 30 percent over the next three years. Needless to say, unless his recommendation is rejected by the White House or stopped by Congress, this will have a devastating impact on America's national security and the economy in Virginia. In addition to joining with our federal representatives in opposing Secretary Gates' recommendations, Governor McDonnell has issued an executive order creating the Commission on Military and National Security Facilities. The Commission will serve as an advisory panel assisting the Administration in developing and executing strategies to retain and grow military and national security installations and activities in the Commonwealth. I was honored to accept the Governor's appointment to the commission. We will work with a sense of urgency to respond to this immediate threat.
Thank you for all that you do to contribute to the prosperity of your business and the Commonwealth of Virginia. The Virginia Chamber pledges to work with you to create a brighter future for all our citizens. |
| | Virginia Chamber Ramps Up Advocacy Efforts With New Hire
The Virginia Chamber is delighted to announce that Ryan Dunn has joined our staff as Director of Government Affairs. He began his new post on September 13th.
"We are fortunate to have Ryan representing the Virginia Chamber and its membership in the General Assembly. He brings broad knowledge on a range of policy issues important to the business community and significant experiences within the legislative process to his new role," said President and CEO, Barry DuVal.
Ryan joins the Chamber from the Associated Builders and Contractors (ABC) where he served as their Senior Regional Manager covering government affairs issues in four states. Previous to his position at ABC, he served as the Central Virginia Regional Representative for Senator George Allen. In his new position, Ryan will be responsible for assisting in the development and execution of the Chamber's government affairs program, lobbying strategy and advocacy outreach. "As a native Virginian, I am excited to be given the opportunity to advance the Virginia Chamber of Commerce's agenda to ensure that the Commonwealth remains the best state in which to live and work. I look forward to working with the well-respected Chamber staff and members," said Ryan. |
| Virginia Ranked Top "Pro-Business" State - Again! |
Virginia is again the "most pro-business state" in America according to the Pollina Corporate Top 10 Pro-Business States for 2010 rankings released in August. This marks the fourth time the Commonwealth has held the top spot, with previous top rankings garnered in 2003, 2007 and 2009. In the official release from Pollina, the company notes that the study involves "...ranking states based on 31 factors controlled by state government, including taxes, human resources, education, right-to-work legislation, energy costs, infrastructure spending, workers' compensation laws, economic incentive programs and state economic development efforts."
Utah was ranked the second most pro-business state in the study, followed by Wyoming, South Carolina and neighboring North Carolina. The full Pollina rankings and report can be found here.
Top rankings are not new to the Commonwealth.
Forbes has rated Virginia the best state for business the past four years in a row. U.S. News & World Report has recognized Virginia as among the five best states to start a business.
Virginia also was recently named the "top performing state government in America" by Governing Magazine, and "the state where a child will most likely have a successful life," by Education Week.
In addition, Virginia was recognized by the Pew Center as one of four states effectively dealing with the national recession.
It's always time for a little more good news.
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| Governor's Job Commission Making Progress |
Governor McDonnell's Commission on Economic Development has met twice and over the past several months has developed strategies and initial policy recommendations to better position Virginia to create jobs and grow the economy.
Several common themes have emerged from the initial work of the Commission, including:
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Virginia's existing economic development programs and incentives have been disproportionately affected by budget reductions during previous Administrations; -
Several key industries such as tourism, small business and emerging technologies have historically lacked the attention, resources and tools they need to help create jobs and maximize their potential contribution to Virginia's economy; -
Virginia's tax structure affects some businesses unevenly and unfairly, stifles economic growth and job creation and perpetuates competitive disadvantages in key industries; -
While Virginia has the best higher education system in America, the economic development and workforce development potential of our four-year colleges and universities and community colleges is severely underutilized; and -
Entrepreneurs continue to face significant permitting, resource and capital challenges to starting, running and expanding a business in Virginia.
Key initial recommendations include:
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Job Creating Tax Reform -
Emerging Technologies Fund -
Tourism Development Fund -
Transforming Academic Institutions into Economic Engines -
Small Business/Startup Business Capital Access -
Entrepreneur Expressway -
Training Workers for Virginia Businesses
In all, more than 115 strategies and recommendations are under consideration by the Commission and its workgroups. The Commission plans to make its final report available next month.
The final recommendations of the Commission will focus on those initiatives that provide the highest return on investment, advance strategic economic development initiatives of the McDonnell Administration, and best position Virginia business and industry to create jobs and economic opportunity for all Virginians.
Please click here for the full interim report. Let us know what you like, or don't like, about what you find. We'll provide the final report when we have it.
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| Virginia Chamber Seeking Nominations for "Torchbearer Awards" | Karen Surmacewicz
To highlight Virginia's unparalleled attractiveness as a business location and leadership in job creation, the Virginia Chamber is seeking nominations for the prestigious Virginia Torchbearer Awards.
The purpose is to recognize Virginia's leading economic development organizations and highlight their crucial role in our state's economic success. The awards will showcase the accomplishments and outstanding contributions that best exemplify the excellence that has made the Commonwealth the number one state in the nation for business. Twelve winners will be selected by a blue-ribbon panel of judges. There will be one overall "project of the year" winner and eleven district winners, one from each of Virginia's congressional districts.
We are looking for economic development organizations, local governments, educational institutions and technology councils that have made a creative and significant contribution to Virginia in terms of facilitating new business attraction, business retention and expansion, the creation of new jobs, foreign investment and revitalization projects.
The winners will be announced at the conclusion of the 2010 Virginia Economic Summit: "Preparing for a Brighter Future" to be held in the late fall. Governor McDonnell has been invited to announce the names of the winning organizations.
In the meantime, we need your nominations for the Torchbearer Awards by October 20. The criteria are simple and mostly subjective. A nomination form is online here.
We look forward to receiving your nomination(s) and to seeing you at the Virginia Economic Summit. If you have questions about the Torchbearer Awards or the Summit, please contact Karen Surmacewicz at 804 237-1452. |
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Governor's Government Reform & Restructuring Commission Learning It's ABC's
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While it is considering a variety of issues, the one that has garnered the most attention is a proposal to privatize hard liquor sales in Virginia. That proposal is gaining both support and opposition as it matures. The Virginia Chamber and the full Commission have not endorsed any plan to date, but both are expected to take the issue up in the coming weeks since it may be considered in a special session of the General Assembly in November.
To learn more about this Commission, please click here.
(Editor's note: We are pleased that Chamber Board members Suzy Kelly, CEO of Jo-Kell in Chesapeake, and John "Jack" Rust, Principal in Rust & Rust in Fairfax, have been asked to serve on this Commission.)
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Governor Announces Virginia Health Reform Initiative
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Since we last reported, Governor McDonnell has announced the formation of another new initiative and those who will serve on it.
The new entity is called the Virginia Health Reform Initiative Advisory Council and it will provide recommendations towards a comprehensive strategy for implementing health reform in Virginia. The Advisory Council will go beyond federal health reform and recommend other innovative health care solutions that meet the needs of Virginia's citizens and government. The Council's recommendations for addressing health care access, cost and delivery may serve as a model for other states. The recommendations also will help create an improved health system that is an economic driver for Virginia while allowing for more effective and efficient delivery of high quality health care at lower cost.
The Advisory Council has established task forces in six key areas: Medicaid Reform, Insurance Market Reform, Delivery and Payment Reform, Capacity, Technology, and Purchasers Perspective.
This is an ambitious effort and one that we will follow closely.
(Editor's note: We are pleased that Chamber Board member Burke King, President - Virginia Market - Anthem, has been asked to serve on this Council.)
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Cleaning Up the Chesapeake Bay
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The EPA's Chesapeake Bay "Total Maximum Daily Load" (TMDL) process continues to move forward. The TMDL, as you will recall from earlier writings, is a "pollution budget" for the Bay that will have far reaching consequences for business throughout the watershed.
Recently, EPA released new numbers for Virginia's pollution budget for phosphorus and nitrogen. Last year, under what was then its new model for the Bay, the EPA increased the allocation for phosphorus from 6.0 million pounds per year to 7.05 million pounds per year. At that time, it appeared that Virginia was about 0.5 percent away from meeting its nonpoint source target of 5.88 million pounds per year. It was this new number that took the wind out of the sails of the Kaine Administration in its effort to promulgate onerous state stormwater regulations.
Today, EPA has an even newer model (the model EPA admits is flawed) that now produces drastically reduced numbers. So far, they have released the total draft allocation for phosphorus, which goes from 7.02 million pounds per year last fall, to 5.41 million pounds per year as of July 1, 2010. The numbers for nitrogen are also daunting. From an allocation of 65.7 million pounds per year in 2009, the allocation plunges to 53.40 million pounds per year as of the July 1, 2010.
Because the model is flawed, Virginia must be prepared to make a further 5 percent reduction of 2.67 million pounds per year for nitrogen and another 0.27 million pounds per year for phosphorus. The only good news here is that these are draft, not final, allocation numbers.
Agriculture and developers are on the front line of this effort. Currently, Virginia deposits a little over 65 million pounds of nitrogen into the Bay. Agriculture and wastewater treatment plants each deposit around 20 million pounds per year. Except for a few isolated instances, state and federal regulators believe that wastewater treatment plants have done all they can to upgrade their plants and reduce depositions. Don't look for much if any reduction in the 20 million pounds of nitrogen they put into the Bay each year. That leaves agriculture as an equally large source. How much the farm community can invest to reduce their depositions is questionable. The next two largest depositors of nitrogen into the Bay are forestry (at about 15 million pounds per year) and urban/suburban stormwater (at about 8 million pounds per year).
The story for phosphorus is about the same. Virginia deposits a little over 7 million pounds of phosphorus into the Bay each year. Three million pounds per year come from agriculture. Another almost 2 million pounds per year come from wastewater treatment plants. Forestry accounts for about 1 million pounds per year and urban/suburban stormwater contributes about 1.2 million pounds per year.
The EPA TMDL is beginning to take shape. However, much more will need to be done by the end of the year.
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Setting the 2011 Business Agenda
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We will be asking you very soon to help us maintain our "best in the nation" business ranking by sharing your legislative priorities with us for the upcoming General Assembly session.
Please set aside a few minutes to respond to a range of questions when the survey arrives electronically. The Chamber's Board will review your responses in early November and set the agenda.
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| SBDC's Need Your Input | |
The Virginia Small Business Development Center (SBDC) network based at George Mason University School of Public Policy is currently conducting an online survey of existing businesses to determine their needs and how the SBDC network of 29 local offices can better meet those needs through business consulting, information, or training.
In addition, they will be organizing five focus groups around the state to further delve into the question of needs with firms of $750,000 plus in annual revenues.
Please take a few minutes to complete the survey by going here. |
| Upcoming Events | |
September 22
Congressional Luncheon - Washington, D.C.
November 3-4
Board of Director's Meeting - Hot Springs
January 26, 2011
Chamber Day at the Capitol
Annual Meeting
Old Dominion Assembly
January 27
Board of Director's Meeting - Richmond
April 28
Virginia Fantastic Awards Banquet - Chantilly
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| CALENDAR |
Congressional Luncheon - Washington, D.C.September 22 Board of Director's Meeting - Hot Springs
November 3-4
Chamber Day at the Capitol
Annual Meeting
Old Dominion Assembly
January 26, 2011
Board of Director's Meeting - Richmond
January 27
Virginia Fantastic Awards Banquet - Chantilly
April 28
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| Giving the Chamber a Stronger, More Effective VOICE! |
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