– Solutions for Economic Growth and Business Friendly Initiatives –

– Balancing the State Budget through Focused Spending Cuts –

Richmond – Amidst the backdrop of continued economic pressures and Virginia’s budget uncertainties, Senator Ryan McDougle (R-Hanover) welcomed the beginning of the 2010 General Assembly session as an opportunity to enhance the state’s business environment and improve the quality of life for all Virginians. Senator McDougle came to Richmond this month committed to a “no-new-taxes” economic growth agenda which preserves jobs within the Commonwealth’s current industry base and creates many more jobs by building on Virginia’s reputation as an attractive state for business.

“Despite what is certainly a difficult economic situation, I am upbeat and encouraged by the level of commitment to fresh ideas and innovative proposals that have the potential to advance our economy and take us from recovery to prosperity,” said McDougle. “To achieve these important goals, it is best for government to stay out of the way as much as possible and let the private sector get to work. This is what the voters chose in November and I will do my part to satisfy their wishes.”

Senator McDougle has vowed to work closely with his colleagues in the legislature and the new Administration towards an economic revival throughout the state, and he will support common-sense legislation that distinguishes Virginia from other budget-challenged states for its business-friendly standards. As an example, Senator McDougle applauds and is a co-sponsor of Senate Bill 129, The Clean Energy Manufacturing Incentive Grant Fund; introduced by Senator Stosch.  The bill provides significant financial incentives to companies that invest private capital in research and the development of renewable, clean energy projects that also create jobs. “Virginia must be bold in proactively luring economic development that for many years was largely taken for granted,” he added.

In addition to the energy sector, Senator McDougle recognizes that legislators should work to protect and improve the economic climate for all of Virginia’s traditional industries including agribusiness, manufacturing, shipping, tourism and high-tech development, as well as military and veteran support.

Senator McDougle will also be working with colleagues to improve a state budget proposed by former Governor Kaine, which is unbalanced and puts too much of a burden on Virginia’s businesses and citizens. First and foremost, Senator McDougle will fight any proposal for new taxes.  He will ask Virginians to be patient and understand that hard decisions will have to be made and some services reduced or eliminated all together.

“I believe we can balance this budget by doing things smarter and taking advantage of innovations in processes and technologies, while purging the state of wasteful and/or ineffective government practices and programs,” said Senator McDougle. “Many Virginians agree that some services are better left in the private sector than under the umbrella of government bureaucracy.”

Senator McDougle continues to seek improvement to the state’s biennial budget process by adjusting the budget calendar to start in July of odd numbered years. His, Senate Bill 102, would remedy an unnecessary weakness in Virginia’s budgeting process which requires a new Administration to begin its term with a previous governor’s proposals as a starting point for debate, despite the major differences in each governor’s proposals and initiatives.  The new system is a rational approach that will save time and money compared to the current outdated legacy system.

Senate Bill 102 still calls for a two-year budget; however, revisions would be made in even numbered years. The lengths of the General Assembly sessions would be adjusted accordingly. Under this new system, a governor would enter office in the middle of the two-year budget and simply oversee the revisions to an in-place budget. This will eliminate any confusion within the legislature and the electorate.

“Under my plan, each time a governor proposes a budget, he/she will be in office to champion it in front of the General Assembly,” said Senator McDougle. “Although this measure did not pass last year, I truly believe this year’s transition sufficiently demonstrates the very quandary that was the impetus for Senate Bill 102, giving it a better chance to succeed.”

Senator McDougle looks forward to providing updates throughout this session.  As the state Senator representing Virginia’s 4^th Senate District, he always encourages his constituents to share their ideas, suggestions and comments with him during the General Assembly session and throughout the year.  He can be reached by e-mail at district04@senate.virginia.gov or by phone at 804-698-7504 during the General Assembly session.  For further contact information, visit his website at www.ryanmcdougle.com.

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As Published January 12, 2010 in the Richmond Times-Dispatch:

Legislators looking to strengthen the state’s competitive edge when vying for new jobs are proposing to scrap the state’s corporate income tax.

The idea is being pushed by a small group of businessmen who see it lending a “wow factor” to the state’s marketing pitch, creating jobs and encouraging investment.

Del. Harry R. Purkey, R-Virginia Beach and chairman of the House Finance Committee, has submitted legislation that would scrap the tax. Sen. Ryan T. McDougle, R-Hanover, said he’ll submit a bill to get rid of the tax effective in January 2012.

It would give Virginia “economic competitiveness that is just really unparalleled,“ said McDougle, who quotes estimates that revenue from new jobs should exceed the money lost within two years.

But the idea is getting a cool reception from state business organizations, which wonder about the need for the change and the cost to a state facing a potential budget shortfall of $4.2 billion.

Corporations pay a 6 percent income tax in Virginia, which brought in $648 million to the general fund for fiscal 2009. The tax is projected to bring in $662.2 million for 2010, according to the latest estimate.

“It’s kind of puzzling, because it does cost money,“ said Keith D. Cheatham, vice president of government affairs at the Virginia Chamber of Commerce, which hasn’t taken a position on the idea.

Gov.-elect Bob McDonnell, who was elected by a hefty margin on a theme of job creation, has been briefed by the supporters, who hope to take his promise not to raise taxes a step further.

“It’s an innovative idea and something that we are looking at,“ said Eric Finkbeiner, director of policy with McDonnell’s transition team. “The governor-elect is looking at any number of initiatives on the idea of attracting new jobs and businesses, and if this is something that can be demonstrated to do that, he is very interested.“

A member of the transition team said it is working on an independent analysis to see if the proposed benefit is realistic.

Some companies in the Richmond area think the negative publicity could outweigh any benefit from eliminating the tax, said Robert L. Bradham, lobbyist for the Greater Richmond Chamber, which hasn’t taken a position.

“The folks would have a hard time to sell it to the Average Joe citizen because it looks like corporate welfare,“ Bradham said.

Purely from the standpoint of marketing the state to potential business, it could be a helpful tool, said Greg Wingfield, president and chief executive officer of the Greater Richmond Partnership Inc.

“It would be a great addition to our economic-development marketing kit,“ he said, speaking as an economic-development professional and not on behalf of the partnership, which has not taken a position.

Bob Marcellus, president of the Goochland County-based Richmond Group Fund Co., a hedge-fund manager and global trader, first raised the topic with McDonnell last year and then briefed him during the campaign.

“We advocated if he didn’t campaign on it, he should govern on it,“ said Marcellus, a member of McDonnell’s economic-development transition work group.