For Immediate Release

Contact: Anne K. Creasy

March 10, 2009

Senator Ryan McDougle Brings

Commonsense Solutions Home to Hanover

With the Commonwealth facing a $3.7 Billion budget shortfall, Senator Ryan McDougle (R-Hanover) focused on finding ways to improve government efficiency and cutting costs during this year’s 2009 General Assembly session. Today Senator McDougle is proud to announce a cost savings of $4 million for the taxpayers of the Commonwealth of Virginia.

The Virginia Department of Game and Inland Fisheries was slated to buy real estate for a new headquarters as a result of major problems with their current building headquarters, which has fallen into a state of disrepair. As a result of an outdated heating and ventilation system which has increased utility rates tremendously, DGIF’s current complex on W. Broad Street in Richmond is wasting taxpayer money with escalating costs. By inserting into the new state budget a transfer of surplus state property from the Virginia Department of Transportation to the Department of Game and Inland Fisheries, taxpayers will be saving $4 million dollars.

The surplus state property is located on Rt. 1 near Sliding Hill Road in Hanover County. Bob Duncan, Director of DGIF, commented that such a convenient location off the Atlee Elmont Exit of I-95 would truly allow their agency to better serve the over 19,000 customers who annually visit their headquarters. These customers are already visiting the nearby stores of Green Top Sporting Goods, Gander Mountain and the new Bass Pro Shops. New real estate property will not have to be purchased for DGIF’s new headquarters, resulting in cost savings and needed cuts in government spending during the current time of falling state revenues collections in a sluggish economy.

“I am pleased to find a needed solution for the Department of Game and Inland Fisheries that saves the taxpayers money and allows our state government to run more efficiently. The funds the Commonwealth will save in this transfer of property from one state agency to another will help to reduce the size of the finalized budget, thus using fewer taxpayer dollars. In a time when families are cutting their budgets and tightening their belts, I’m grateful to find ways such as this to cuts costs and allow taxpayers to keep more of their own money,” said McDougle.

Senator Ryan McDougle’s 2009 Session Wrap-Up

After considering over 2500 pieces of legislation in 45 days, the 2009 General Assembly session adjourned on schedule last Saturday, February 28th. I am pleased to have represented you over eight sessions in the General Assembly and, during that time, I have voted on thousands of issues and patroned many changes to state law. Of all the challenges faced over the many sessions, I must admit this was the most difficult fiscal environment of any I have seen. Because of the severe economic downturn, we began the session knowing we must address a $2.9 billion revenue shortfall in our state budget (as originally estimated by the Governor), primarily through significant spending reductions. Depressed state revenue collections later pushed the revenue shortfall number to $3.7 billion, requiring even deeper cuts than anticipated. The seriousness of our economic situation overshadowed all other issues this session considering the tough times facing so many families in Virginia and throughout the country. At the conclusion of the session, the Senate and House approved a $77 billion budget that will now go to the Governor for his consideration. The budget cuts were extensive, but further reductions were spared largely due to Virginia’s share of the federal stimulus package. Over the remainder of this article, I want to discuss the budget in more detail and specific legislation I sponsored this year which increases government efficiently and accountability.

Virginia’s State Budget and the Challenges Ahead

The central issue of this legislative session was undoubtedly the state budget crisis. Estimates of the shortfall varied significantly and the downward revised revenue collections complicated matters in the final weeks of session. 45 days – the length of this session – is a very short period of time to address the magnitude of the budget issues we faced. Given the time constraints, the economic information available to us, and the Governor’s proposed amendments that serve as our starting point, the General Assembly took considerable steps to meet its constitutional obligation of passing a balanced budget.

Throughout the session, Senate Republicans advocated three principles to guide the budget process: realistic revenue estimates, contingency spending, and judicious use of federal stimulus funds. These are not new, as we repeatedly stressed our concerns last session when the Governor introduced his biennial budget. At that time, we believed the budget was based on unrealistic revenue projections and we predicted a substantial shortfall in the upcoming year. Because of these problems, we voted against the final budget enacted in the 2008 session. Unfortunately, we were correct and are now confronting a problem that could have been avoided with better planning and sounder revenue estimates. As a result of our advocacy this session, the budget amendments made by the legislature were a significant improvement upon those proposed by the Governor. However, I once again opposed the final budget for two reasons: the way federal stimulus funds are being used and the heavy reliance upon one-time, short-term fixes that only exacerbate our fiscal situation in future years.

I strongly believe that the best use of federal stimulus money is for one-time expenditures that create jobs now and will help get our economy moving again. One of the best examples would be projects that address infrastructure needs school construction, roads and bridges, rural broadband or to provide incentives for the purchase of homes and/or automobiles to stimulate these markets. For example, it would be prudent to use all federal transportation stimulus funds to refurbish and repair our existing roads and bridges – a substantial cost in the state’s transportation budget. This much-needed investment would not only spur job creation, but would also mean a considerable cost savings in future spending for road maintenance.

Others, however, preferred to use a significant portion of the federal funding to simply offset our revenue shortfall, which is a short-term solution to the long-term problem of government spending. These federal stimulus funds expire in September 2010 and, absent a major surge in economic growth, we will once again face a huge budget shortfall by relying on this money. For instance, this budget does not address the Governor’s projected 4.5% revenue increase for 2010. Should these estimates again prove to be overly optimistic, our shortfall may well be in excess of $4 billion starting in 2011.

However difficult it may be, Virginia’s fiscal stability will only be achieved by prioritizing our spending and making long-term structural changes in government. These steps go hand-in-hand with maintaining Virginia’s pro-business climate to further economic development, ensuring that our regulatory structure promotes – rather than hinders – business expansion, and stimulating the private sector by minimizing the tax burden on our families and businesses.

Advocating for Efficiency and Accountability

I am a firm believer that even the most difficult circumstances can provide a learning experience and opportunity for change, and Virginia’s budget crisis is no exception. As your representative, I have always focused on ways to improve efficiency and increase accountability in our government operations. By being more innovative and streamlining our government, we can reduce the burden on our taxpayers and ensure that Virginians can keep more of their hard-earned dollars – especially in these challenging times. I am proud to have advanced several key fiscal reform measures this session.

Senate Bill 893 – Personnel costs for state agencies

The need for accountability applies to all of us in state government, especially as we evaluate our personnel needs. Right now, if funds are appropriated for personnel positions and those positions are not filled, the state agency can simply spend the money for operating costs. If we plan for a dedicated number of personnel to perform a job function and later discover it can be reduced, we should not automatically spend the extra funds. This bill requires that the total amount appropriated for personnel costs for each agency to be included in the budget bill, which allows for greater oversight of these expenditures. SB 893 has passed the Senate and House and awaits action by the Governor.

Senate Bill 892 – Information technology projects

Another such area that requires examination is information technology. In these times, how we manage our technology infrastructure is essential, since it is often pivotal in helping us be more innovative and efficient. We should ensure that there is a functional process for evaluating and managing our information technology needs when it comes to state government, especially since this is a rapidly growing area which can approach almost $1Billion of the state budget. SB 892 increases the oversight of this process and requires that major information technology projects be included in the state budget bill in order to move forward. SB 892 passed the Senate and House and awaits action by the Governor.

Senate Bill 895 – Alternative revenue estimates from the Governor

SB 895 requires the Governor to provide the General Assembly with alternative revenue projections as considered by his Advisory Council on Revenue Estimates. By providing us with multiple scenarios rather than a single estimate, we can better understand the range of our fiscal situation as we work to craft a realistic budget. SB 895 has passed the Senate and House and awaits action by the Governor.

Senate Bill 894 – Changes in biennial budget timeframe

Another opportunity for change resides in the timetable upon which we base our state budget. Under our current structure, the Governor’s four-year term expires before the last biennial budget he prepares, which diminishes gubernatorial accountability. This year I introduced SB 894, which would shift our two-year budget cycle from even- to odd-numbered years, moving the timeframe to better coincide with the Governor’s term and ensure that the state’s chief executive is indeed held accountable for the fiscal “blueprint” that he proposes. Unfortunately, this measure was left in the Senate Finance Committee.

Strengthening Our Economy

As we work toward bolstering our economy, creating jobs and keeping taxes low – for both families and businesses – are essential. Virginia’s pro-business climate is well-known throughout the country and we must take every step to ensure that we foster economic development opportunities. A key factor in our competitiveness has been our “right-to-work” law, which mandates that employees have the right to employment without being forced to join a labor union. This law gives Virginia an advantage over many other states, allows businesses to flourish and aids in the creation of jobs.

This session I introduced Senate Joint Resolution 347, which would add Virginia’s right-to-work law to the state Constitution in order to better protect our law from encroachment by the federal government. I remain concerned about proposed federal legislation that would make it easier for unions to organize in Virginia, particularly the unions’ impact on state and constitutional officer employees. Unfortunately, my proposal was defeated in the Senate committee on a party-line vote (9 Democrats – 6 Republicans). An identical version, though passed overwhelmingly by the House of Delegates, was also defeated in this committee.

I remain committed to my core principles of streamlining government, finding efficiencies, increasing accountability and reducing government spending. I have worked hard this session to advance initiatives that promote these goals and appreciate all of your feedback over the course of the session. Please continue to contact me with any thoughts or comments you may have. I can be reached at my district office at (804) 730-1026 or via email at district04@senate.virginia.gov. Thank you for the opportunity to serve you in the Senate of Virginia.

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