In This Issue

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On January 8th, members of the General Assembly convened the annual session to begin the important legislative work of the Commonwealth which includes Delegates and Senators welcoming the inauguration of another executive administration, complete with a new Governor, Lt. Governor and Attorney General.

Four years ago, former Governor Bob McDonnell stood on the Capitol steps and pledged to make this State a "Commonwealth of Opportunity," and with legislative support, he succeeded. Now Virginia is stronger than before with lower unemployment down from 7.4% to 5.4%, the third-lowest unemployment rate east of the Mississippi, and the lowest in the Southeast. In the State of the Commonwealth address last week, the administration also reported over 177,000 net new jobs added during its term. Four years ago, the state faced record budget shortfalls of over $6 billion. With the help of House Appropriations and Senate Finance Committees Virginia posted four straight budget surpluses totaling $2 billion. Wise budgeting and holding the line on growth were critical to this success. It is my hope that the new administration will follow this fiscally conservative approach to state government and lead with innovative and growth oriented policies that all Virginians can embrace. Moving forward, House, Senate and the new Governor should commit to finding common ground through common sense solutions in order to make Virginia a better place to live, work and raise a family. This ethic is, was and shall ever be the "Virginia Way."

The 2014 Assembly presents lawmakers with a host of challenging subjects including but not limited to ethics reform, mental health reform and whether to expand Obamacare in Virginia. While consequential, providing leadership to help build a stronger Virginia through jobs and economic growth remains priority one. The first step in this process will be the 2014 Virginia General Assembly's adoption of the next two year state budget. The budget must be mindful of unpredictable economic forecasts with marginal growth projections while making strategic investments and acknowledging the need for certain safety nets. Conservative budgeting has helped position Virginia well for these troubled economic times. In the nine years from Fiscal Year 2007 to Fiscal Year 2016, general fund spending has only increased on average 1.2% per year, much less than the rate of growth in population and inflation.

As a member of the Appropriations Committee, I have reviewed the budget submitted by Governor McDonnell for the 2014-16 biennium, and initially it is structurally sound. Spending is concentrated in 5 general areas: $674.4 million for Medicaid utilization and inflation; $575.3 million for costs of the Standards of Quality in Education; $312.8 million for the increased retirement system costs; $303.3 million for the rainy day fund; and, $196.7 million for debt service, leaving an unappropriated balance of approximately $51.0 million, the largest since the 1990's. Our committee is firmly committed to not spend against that balance because of the unpredictable economy and growth revenues forecasted at 1.7%. Ultimately, the House of Delegates will prioritize spending with the input of the Committee, its new Chairman S. Chris Jones (R Suffolk), and its sub-committee system including Transportation which I now chair.

While many in our region, including myself, had reservations about the scope of last year's landmark transportation plan, few can doubt its potential positive impact on jobs and the economy. Resources will be invested to grow and maintain a vibrant transportation network that helps get people to and from work and good to market. As the new Chairman of the Transportation Sub-Committee of Appropriations, I am committed in my new role to ensure that your tax dollar is invested wisely and responsibly.There must be management, oversight and accountability in the process.Taxpayers deserve results and a return on their investment. To that end, our Transportation budget committee will look forward to hearing the perspectives of the new Secretary of Transportation-Designate Aubrey Lane as well as the other directors and commissioners within the Commonwealth's vast system. Each of these public servants needs to remember that they have a duty to be transparent and accountable to the people. Other than a better transportation system, good jobs and strong schools are issues that the people of Virginia care about.

We must keep taxes low, reduce red tape, work to promote small businesses, create opportunities for entrepreneurship, incubation and acceleration of businesses, and develop a statewide strategy on workforce development. But if Virginia is going to attract 21st century technology,

advanced manufacturing and other jobs of the creative class, we have to have a strong workforce which is well educated.

Education is the gateway to this opportunity. A strong and vibrant K-12 education system should help prepare our children for college or a good-paying job. Virginia already has a very strong K-12 education system, with great teachers and great students. But we have to continue to innovate and start early.

While House Republicans will prioritize strong schools and a more substantive K-12 Education building on key reforms of recent years, we should also consider what Tony Wagner styled The Global Achievement Gap.

Data suggests that our society's greatest problems will only be solved when we commit to the development of all our children, beginning early. Before children enroll in Kindergarten, the gap begins to emerge with those who don't have access to high quality early childhood education are:

• 25% more likely to drop out of school
• 40% more likely to become a teen parent
• 50% more likely to be placed in special education
• 60% more likely to never attend college
• 70% more likely to be arrested for a violent crime.

Some of my conservative friends may question additional investment in early education but I believe that with strategic purpose we can reduce these rates much like we have reduced the number of children in foster care, or for in general population, reduced violent crime rates. The return is clear and will create long term savings and sustainability. Truth be told, early childhood programs are the most cost-effective way to ensure the healthy development of children in poverty and offer the greatest returns to society.

But don't just take my word for it. The Virginia State Chamber and its members acknowledge this reality too and included early education in Blueprint Virginia: A Business Plan for the Commonwealth. Regionally, leading business voices such as Bon Secours, Mead Westvaco, Capital One, and Dominion have joined with me and colleagues from both sides of the aisle to host a program with business leaders from around the state, from the Newport News Shipbuilders to the Northern Virginia Technology Council, to raise legislative awareness of this key workforce development issue that relates to both school readiness and third grade reading attainment.

Why is this important? Author Tony Wagner describes a "core set of survival skills for today's workplace" that are not currently being taught include "1) critical thinking and problem-solving; 2) collaboration across networks and leading by influence; 3) agility and adaptability; 4) initiative and entrepreneurialism; 5) effective oral and written communication; 6) accessing and analyzing information; 7) curiosity and imagination." Therefore our House Republican goals will be ending the era of mass production in education, empowering teachers to create a path to success for every child, make targeted investments in our teachers and classrooms, reform the Standards of Learning for fewer tests and greater flexibility driving focus to critical thinking and problem-solving skills.

Those of us with leadership positions must present solutions like these to problems that everyday Virginians face. Let's us inquire this session "Is what we hold in common greater than what separates us?" By listening and working together for this common ground, Virginia will be the better.