By Delegate Terry G. Kilgore (R-1st)
The economic downturn that began this past autumn should not have come as a surprise to many folks. Predictions and forecasts of the “correction” by economists and financial talking heads alike have abounded in the media for probably 2 or 3 years now. We saw the hugely inflated real estate market blaze a path of temporary prosperity through some parts of the U.S. for nearly a decade, but the experts said rightly that we would eventually experience a downturn because this extremely hot market, (and everyone knew it), simply wasn’t sustainable.
Virginia’s economy did legitimately grow by leaps and bounds over the last decade, with real job creation, small business growth, and relatively low unemployment. The Commonwealth’s real economic growth was even reflected by its top ranking in Forbes Magazine as the Best State for Business three years in a row: 2006, 2007, and 2008. Further, as a sign that the long-time Republican controlled House of Delegates has done a top-notch job of fostering record growth in Virginia’s economy, Forbes magazine last year ranked Virginia as having the best regulatory environment and the second-best incentive programs in the country.
But here we are, in the middle of the recent “correction” or downturn, wondering where and when the bottom will be reached. Much of the public’s attention has now turned to how we can jump start our economy and get things moving again.
There has been a lot of speculative talk about what the federal stimulus may or may not do. Many leaders in state government hope that it may backfill the current state budget shortfall. Still, amongst the myriad of recent promises made about what the stimulus might accomplish, two important questions have yet to be answered: Will it create new and lasting jobs that will put money back in the pockets of hard-working Americans? And, where will our economy be after the stimulus is gone?
The President recently signed the “American Recovery and Reinvestment Act of 2009.” Unfortunately, the federal stimulus will not be a magic wand, and it will not suddenly cast prosperity and growth throughout our economically troubled land. This stimulus package may help in the short term, but the fact remains that it’s been designed to return only a small amount of money back to the taxpayers. It is these consumers that actually stimulate the economy through the purchase of goods and services. It is these taxpayers that start and operate the small businesses that are the backbone of our economy, creating jobs that drive the American economic engine. No amount of fluff or best intentions can get around this simple economic fact: If Americans aren’t spending money and creating jobs, we aren’t stimulating anything but more government with this federal stimulus package.
Here is what the General Assembly is doing to stimulate Virginia’s economy:
In 2007, we passed legislation that created $3 billion in bonds over ten years for transportation construction. Also that year, we increased certain transportation taxes and fees going into the Transportation Trust Fund. Specifically, this legislation provided significant funding to improve rail connections in Virginia, connecting the Heartland Corridor with the port in Hampton Roads, tapping into a major artery that moves freight all over the United States.
In 2008, we passed the Higher Education Bond package, providing $2.6 billion for major projects at Virginia’s colleges and universities, as well as $350 million for revenue-producing capital projects at these institutions.
In 2009 thus far, both Houses have approved the Advanced Shipbuilding Performance Grants program. The House voted to extend the Major Business Facilities Job Tax Credit to 2020 and passed the Major Employment and Investment projects legislation that directs the Virginia Public Building Authority and the Virginia Resources Authority to finance economic development initiatives performed by state and local government entities.
Additionally, the House budget included $3 million more for tourism, $12.5 million to accelerate five major capital projects on various public college campuses, and $1.5 million for workforce development.
Through these actions, the General Assembly continues to take its role in stimulating the economy very seriously. The Best State for Business three years in a row is a ranking we have taken much pride in helping to create. We must not back down now. We believe that we must invest in workforce development and capital projects to get people working again. We must continue to invest in recruiting and retaining business. We must be aggressive in creating jobs during these economically challenging times. Now is not the time to play defense. We must market Virginia to the rest of the country and the world.
We hope that you will contact us with questions, comments and suggestions. Please feel free to email us at [email protected] or give us a call at (804) 698-1001.
Delegate Terry G. Kilgore (R-1st), of Gate City, represents Scott County, Lee County and parts of Washington and Wise Counties.
