The following OpEd by Chamber President & CEO Barry DuVal ran in the Richmond Times Dispatch on March 24:
The 2013 legislative session has concluded and the business community is celebrating the General Assembly’s passage of a pro-business agenda. When it comes to strengthening Virginia’s business climate and promoting a dynamic economy, Gov. Bob McDonnell and many in the Virginia legislature deserve credit for passing legislation this session that enhances the commonwealth’s economic competitiveness.
In response to legislators’ support on initiatives that will help move Virginia forward, the Virginia Chamber will recognize General Assembly members who voted for pro-business bills during the 2013 legislative session. This year, 62 percent of the legislature, both delegates and senators — Republicans, Democrats and independent — will receive an A grade from the chamber for demonstrating strong support for the business community’s priorities.
The governor and the General Assembly should be commended for not resting on their laurels, but instead advancing a pro-business legislative agenda that enhances Virginia’s competitiveness in the global economy.
From tort reform and staving off a big increase in unemployment insurance taxes, to Medicaid reform and investments in transportation and education, the 2013 General Assembly proved to be a historic legislative session.
Transportation
Virginia’s transportation infrastructure is vital to the commonwealth’s economic competitiveness. The commonwealth’s transportation system supports business, tourism and economic growth. With more than 99 percent of the world’s consumers outside of our state borders, an effective transportation network that efficiently moves people, goods and services is essential to Virginia’s economic prosperity. Further, approximately 2 million Virginia jobs involve businesses dependent on the transportation system.
Unfortunately, Virginia faces many transportation challenges: increased demand for highway and passenger rail service; an aging transportation infrastructure; funding shortfalls that inhibit our ability to meet highway, transit and passenger-rail maintenance, construction and operational needs; and congestion.
While our transportation challenges are significant, the governor and the General Assembly took a major step forward in addressing the commonwealth’s critical infrastructure needs by passing a landmark transportation funding package that is estimated to generate billions in additional revenue over the next five years.
This transportation plan will help ensure long-term, dedicated and sustainable funding is available to meet Virginia’s highway, rail and transit needs. The plan will also ensure that the commonwealth has a transportation system that serves our mobility needs and fosters economic growth and development.
Improving the business climate
Virginia’s legal climate is important to the commonwealth’s economic competitiveness. A stable, predictable legal system that provides for a fair and efficient civil justice process, controls litigation costs, protects private property rights and eliminates lawsuit abuse is essential to promote economic growth and job creation.
A state’s legal environment impacts a company’s decision on where to locate and conduct business. The General Assembly passed a tort reform package this year that represents a major compromise between the business, medical and legal communities. These legal reforms will significantly improve Virginia’s legal climate and provide businesses the confidence they need to invest and grow in Virginia.
Education and workforce development
An important component to Virginia’s economic growth and prosperity involves a workforce that possesses certain knowledge and skills. To prepare for the 21 st-century economy, business leaders and educators must work together to build a world-class educational system to prepare Virginia citizens to meet the critical workforce needs of businesses in the future, one that ensures Virginia will succeed at the highest levels of global economic competition.
Businesses report more than 3 million unfilled jobs, many in the science, technology, engineering, math and health (STEM-H) fields, that cannot be filled because of gaps in worker skills and training.
Under Governor McDonnell’s leadership and with the key support of the members of the General Assembly, the legislature passed comprehensive education reforms to align educational development and workforce training programs; provide early intervention services in reading and math; incentivize worker retraining; fund initiatives to attract, recruit and retain teachers in the STEM-H subjects; support early-childhood development and readiness programs; reward our excellent teachers; and improve school performance and close the achievement gap that exists in the commonwealth.
Medicaid reform and expansion
While many of us have differing opinions about the Affordable Care Act (ACA), this federal law now controls many facets of the health-care system. Over the next five years, Virginia’s citizens and businesses will be forced to pay taxes of more than $10 billion. In addition, health-care providers will face more than $11 billion in Medicare reimbursement cuts.
These taxes and cuts are intended by the ACA to pay for Medicaid coverage extension in the commonwealth. If Virginia does not opt to extend coverage in Virginia, we will be subsidizing it in other states. The hidden tax for subsidizing uncompensated care in the commonwealth is already borne by businesses as the primary purchaser of health insurance.
However, simply extending coverage under the current Medicaid program without significant restructuring and reform is not a viable option. Virginia’s Medicaid program is the fastest-growing area of the General Fund and is diverting resources from economic development and job creation.
The General Assembly thoughtfully adopted a budget amendment that will establish the commonwealth as a leader in Medicaid reform, while extending health-care coverage to hundreds of thousands of uninsured Virginians. Through these actions, Virginia can curb the hidden tax on businesses, restore fiscal solvency to the Medicaid program and fuel job creation.
The Virginia Chamber commends our legislators for advancing a pro-business agenda and promoting the free enterprise system.
Now, if Congress just could follow Virginia’s bipartisan approach to addressing the challenges we face as a nation.
Barry E. DuVal is president and CEO of the Virginia Chamber of Commerce. Contact him at b.duval@vachamber.com.
