By Peter Galuszka

Every year, Virginia FREE rates the Old Dominion’s legislators according to its definition of how well they support the lobby’s definition of what it means to be “pro-business.”

Despite the free-for-all conservatism of this year’s General Assembly, the legislature only gets only about a “C-plus” grade. The big reason? Lack of progress on improving roads.

Republicans may control the Senate with a split of 20 seats each between the parties and Republican Lt. Gov. Bill Bolling holding the deciding vote. FREE’s figures, however, show that the Senate rates only a 78.4 “pro-business” score, according to an analysis by the Associated Press. The GOP-controlled House of Delegates gets slightly less at a 77.7 score.

“FREE” says that the legislative year started well enough with Gov. Robert F. McDonnell pushing $3 billion in new debt for roads with another $1 billion in unspent funding for transportation. But he and the legislature didn’t do anything about raising gasoline taxes, which have languished at 17.5 cents per gallon for nearly three decades and haven’t even been adjusted for inflation. “At a bare minimum,” FREE says, “new money is required to meet basic maintenance needs, restore viability to the construction budget and ensure that Virginia is a viable partner with the private sector on (public-private transportation) projects.”

FREE also issued its perpetual complaints about a minor business tax that has been around since the War of 1812. Legislators are reluctant to do much about the Business Professional and Occupational License tax since the money raised by it goes to localities and the ;legislature would have to make it up.

What’s interesting about the Virginia FREE assessment is that the 2012 General Assembly is memorable for its outlandish moves involving social conservatism. It gained national attention for its laws required women considering abortion to have an ultrasound exam, kept gays from adopting children in some cases and expanded gun purchases.

While Virginia was highlighted by satirists on “Saturday Night Live” and “The Daily Show,” not much was really done to handle the problems important to the state’s business community, which for decades has dominated the conservative wings of both political parties.

Virginia’s road problems, meanwhile, remain largely unsolved.


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  1. Peter – who is Virginia FREE and who funds it?

  2. Here’s the list of Virginia Free members. Looks like a few of the road-building industry looking for taxpayer-funded work.
    7-Eleven, Inc.

    A
    A. Smith Bowman Distillery, Inc.
    Access Point Public Affairs
    ACE Group
    AECOM
    AES Corporation
    Alliance Group
    Alpha Natural Resources
    Altria
    American Electric Power
    American Insurance Association
    American Medical Response/Access2Care
    AMGEN
    Angler Environmental
    Anheuser-Busch, Inc.
    Annandale Millwork Allied Systems
    AOBA-Metro
    Appalachian Power Company
    Armstrong, Mr. Frank III
    Associated Asphalt, Inc.
    Associated Builders & Contractors of Virginia
    Associated General Contractors of Virginia
    AT&T
    Atlantic Dominion Distributors

    B
    Babcock & Wilcox Company
    BAE Systems
    Bank of America
    Bank of Southside Virginia
    Basic, Inc.
    Bay Electric Company
    BB&T
    Berry, Mr. William W.
    Better Living, Inc.
    Birdsong Peanuts
    Blackburn, Conte, Schilling & Click, PC
    Boehringer-Ingelheim Pharmaceuticals
    Boeing
    Bon Secours Health Systems, Inc.
    Bowman Companies
    Boxley Materials Company
    BP America
    Brinks
    Burgess & Niple, Inc.
    Busch Gardens Williamsburg

    C
    Campbell & Paris
    Capital Interior Contractors, Inc.
    Cargill
    Carilion Health System
    Carmack Company, The
    Carter Machinery Co
    CCA Industries, Inc.
    Center for Innovative Technology
    Centra Health
    Central & SW VA Utility Contractors Assn.
    Century Concrete
    CenturyLink
    CGI
    Charles Ryan Associates
    Chase Investment Counsel
    Cherry, Bekaert & Holland, LLP
    Citizens & Farmers Bank
    Claude Moore Charitable Foundation
    Coca-Cola Bottling Co. Consolidated
    Coldwell Banker Professional Realtors
    Columbia Gas of Virginia
    Cox Communications
    Craigie, Mr. Walter W.
    Crowder Construction Company
    CSC
    Culbert & Schmitt, PPLC
    CVS Caremark Rx

    D
    Dell
    Dewberry
    Distilled Spirits Council of the United States
    Dodson Pest Control
    Dominion
    Dulles Greenway
    DurretteCrump

    E
    East West Partners
    Easter Associates Inc.
    ECS
    Electrical Equipment Company
    Electro-Mechanical Corporation
    Enterprise Holdings
    Equinox Investments LLC
    Exxon Mobil Corporation

    F
    Fairfax County Chamber of Commerce
    Feld Entertainment
    Ferguson
    First Bank

    First Community Bank
    First Market Bank
    First Piedmont Corporation
    Food Lion
    Framme Law Firm, PLC
    Fredericksburg Regional Chamber of Commerce
    Fried, Mr. & Mrs. Mark
    FutureLaw, LLC

    G
    G3 Systems, Inc.
    Gaston Group, LLC
    GEICO
    GENERATE bd
    Gentry, Locke, Rakes & Moore
    George E. Jones & Sons, Inc.
    Georgia-Pacific Corporation
    Goodman & Company
    Graham-White Manufacturing
    Greater Richmond Chamber of Commerce
    Greater Washington Board of Trade
    Greater Washington Initiative
    Guernsey Office Products

    H
    Hampton Roads Chamber of Commerce
    Hancock, Daniel, Johnson & Nagle, P.C.
    Hanes Brands
    Harrington Corporation
    Hazel, William A. Inc.
    HCA Capital Division
    Heavy Construction Contractors Association
    Hershey Company
    Hilldrup Moving & Storage Company
    HITT Contracting
    Hoffman Beverage Company
    Holland, The Honorable Clarence A.
    Holtzman Corporation
    HoltzmanVogel PLLC
    Home Builders Association of Virginia
    Honeywell International
    Hubbard, Mrs. Kelly
    Hubbard, Terry & Britt
    Hunton & Williams

    I
    ILUCA
    Independent Insurance Agents of Virginia
    Inova Health System

    J
    J.F. Fick, Inc.
    Jefferson Hotel
    Jo-Kell
    John C. Nordt Co., Inc.
    John Deere
    Johnson & Johnson

    K
    Kaufman & Canoles Consulting
    Keiter, Stephens, Hurst, Gary & Shreaves
    KITCO Fiber Optics
    Koch Companies Public Sector
    KRAFT

    L
    Lanford Brothers Company
    Laughon, Mr. Frank E. “Pepper” Jr.
    Law Office of J. Christopher LaGow
    Lee Technologies
    Liberty Mutual
    Liberty Tax Service
    Liebherr Mining Equipment Co.
    Lindl Corporation
    Luck Stone Corporation

    M
    M & E Contractors
    M.C. Dean
    MACAULAY & BURTCH, P.C.
    Mars
    Matthews, Suzann W.
    McGuireWoods
    McGuireWoods Consulting
    Measurement Specialties, Inc.
    Medco
    Medical Facilities of America
    Medical Society of Virginia
    Medicorp Health System
    MedImmune
    MercerTrigiani
    Merchants Grocery Company
    Merrill Lynch – The Hubbard Group
    Micron Technology, Inc.
    Midkiff, Muncie & Ross
    MillerCoors
    Mirant
    Moseley Architects
    MWV

    N
    National Conference Center
    National Counseling Group
    NewMarket Corporation
    NFIB
    NII Holdings, Inc.
    Norfolk Southern
    North Highland Company
    Northeast Solite Corporation
    Northern Virginia Building Industry Associaiton (NVBIA)
    Northern Virginia Technology Council
    Northrop Grumman
    Novartis Pharmaceuticals

    O
    Old Dominion Electric Cooperative
    OMNIPLEX World Services Corporation
    Optimal Enterprise Solutions
    Orbital Sciences Corporation
    Owens & Minor
    Owens-Illinois

    P
    Patten, Wornom, Hatten & Diamonstein, L.C.
    PBM Products
    PCIAA
    Pepsi-Cola Bottling Company Inc. of Norton
    PepsiCo, Inc.
    Peterson Companies, The
    Pfizer
    PlasticsOne
    Poisson, Mr. David, Esq.

    Q
    QuadraMed Corporation

    R
    RCS Property Holdings
    Reed Smith, LLP
    Retail Merchants Association
    Revenue Recovery Consultants
    Reynolds American
    Richfield Retirement Community
    Richmond Corrugated, Inc.
    River City Strategies
    Roanoke Regional Chamber of Commerce
    Roberts Family Limited Partnership
    Roberts, Mr. John W.
    Rockingham Group
    Rolls-Royce North America

    S
    Safeway
    SAIC
    Sands Anderson Marks & Miller
    Sandy Spring Bank
    Sanofi-Aventis
    SAS
    Schewel Furniture Company, Inc.
    Scott & Stringfellow, Inc.
    Scott, Mr. Fred W., Jr.
    Sentara Health Management
    Silver Companies
    Smith Group, Inc.
    Smith, Mr. Donald G.
    Smurfit-Stone Container Corporation
    Sorensen Institute for Political Leadership
    Southwest Virginia Center
    Spotts Fain Consulting
    State Farm Insurance
    Strongwell
    SunTrust
    Sysco

    T
    The ILEX Group, LLC
    The Medical Society of Virginia
    Thomas E. Martenstein, Attorney at Law
    Thomas Jefferson Institute
    Thomas Rutherfoord, Inc.
    Thompson Hospitality
    Titan America
    TowneBank
    Trex Company, Inc.
    Troutman Sanders Strategies
    Troutman Sanders, LLP

    U
    Ukrop’s Super Markets, Inc.
    Union Bankshares Corporation
    United Airlines
    Universal Corporation
    Universal Fibers
    UPS
    UPS Freight
    URS-Washington Division

    V
    VA, MD, DEL Assoc of Electric Cooperatives
    Valley Proteins
    ValueOptions
    Vectre Corporation, The
    Verbatim Editing
    Verizon
    Virginia Agribusiness Council
    Virginia Association of Health Plans
    Virginia Association of Insurance & Financial Advisers
    Virginia Association of Realtors
    Virginia Automatic Merchandising Association
    Virginia Bankers Association
    Virginia Beer Wholesalers Association
    Virginia Beverage Association
    Virginia Biotechnology Association
    Virginia Cable Telecommunications Association
    Virginia Chamber of Commerce
    Virginia Dental Association
    Virginia HealthCare Association
    Virginia Manufacturers Association
    Virginia Motorcoach Association, Inc.
    Virginia Optometric Association, Inc.
    Virginia Petroleum Council
    Virginia Petroleum, Convenience and Grocery Association
    Virginia Poultry Federation
    Virginia Retail Federation
    Virginia Society of CPAs
    Virginia Transportation Construction Alliance
    Virginia Trucking Association
    Virginia Utility & Heavy Contractors Council
    Virginia Wholesalers & Distributors Association
    Virginia Wine Wholesalers Association
    VistaOne Corporation
    Volkswagen of America
    VSC Fire & Security
    Vulcan Materials Company

    W
    W. M. Jordan Company, Inc.
    Washington Gas
    Wellmont Health System
    West*Group
    Williams Mullen
    Woods Rogers
    Wurtzel, Mr. Alan L.
    Wynne, Mr. John O.

    1. DJRippert Avatar
      DJRippert

      Anheuser-Busch, Inc. – Do they rent those big horses out to road builders when they aren’t shooting TV commercials?

      Virginia Poultry Federation – No doubt looking for more roads to get to KFC drive thrus.

      The Medical Society of Virginia – Hoping for new business from car wreaks?

  3. larryg Avatar

    geeze..this reads like a Whos’ Who of Virginia businesses….

    are all of these businesses REALLY advocating for a TAX INCREASE – on taxpayers?

    wow!

  4. Peter Galuszka Avatar
    Peter Galuszka

    Larryg,
    It’s not news that the “business” community wants the gas tax hiked in exchange for better roads. They can pass the gas tax along to consumers as other states do. Meanwhile, they bitch about the BPOL stuff.
    You got to be careful about the “business” community. Their interests are not always strictly anti-tax. They also conflict — the “business” interests of the seafood industry and tourism do not want McDonnell’s offshore oil program but McDonnell’s people somehow propagandize their view as the authentic “business” viewpoint while ignoring the others.
    Unfortunately, there’s a fair amount amount of propagandizing on this blog especially in the headlines which state simplistically that all business is “anti-tax” and hates, for instance, any movement on Dulles Rail. What his view really does is represent a tiny corner of the table — that being where Libertarians and Ann Ryan sit next to each other and glower at each other during the entire meal.
    By dessert, you realize that this view isn’t all that influential.

  5. DJRippert Avatar
    DJRippert

    As a clear representative of the business community (CEO of a software development company that has no (i.e. for LarryG – zero) Federal business, I feel “empowered” to comment.

    Peter is 100% correct.

    I can’t recruit talent to Northern Virginia because the traffic SUCKS and it just gets worse every year. It is not a typical suburban problem. It is measurably worse in Northern Virginia than in other growing localities.

    Many people may come to Northern Virginia to find work. However, Jim Bacon’s beloved “creative class” will not move here due to the horrendous traffic.

    I am a business owner / operator and I support Rail to Dulles.
    I am a business owner / operator and I support an increase in the gas tax.
    I am a business owner / operator and I support a vast reduction of Dillon’s Rule so that Northern Virginia localities can stop being robbed to pay for welfare locales and can raise taxes to make NoVa a great place to work, live and play.

    The real anti-progress types are the retired and semi-retires sad sacks of the Boomer generation who have milked the US for every dime in scams ranging from looting Social Security to rampant deficit spending. Now, those same lazy, selfish, un-American people strive to avoid anything resembling paying their fair share by inventing idiotic arguments to support their “I don’t want to pay any taxes” lifestyle.

  6. A couple of comments. First, I’ve heard from Northrop Grumman that they think the move to NoVA from California is fabulous. They cite employee and employee candidate satisfaction with lower taxes and good public schools, with transportation problems no worse than in Los Angeles. They also add they’ve had no trouble recruiting for jobs in NoVA. I don’t doubt DRJ’s sincerity in stating his concerns, but his views are not universal.
    Two, I have no problem with people advocating tax/fee increases when they are included in the ones paying them in a substantial manner. Virginia FREE is seeking to shift the burden from themselves to others. While I can see good arguments for increasing the gas tax, I can also see good arguments for increasing transportation proffers and impact fees to real economic cost and for enacting tough, enforceable adequate public facility laws.
    Florida has such a law (a/k/a concurrency). Here’s what the city of Tallahassee states about what happens if there are inadequate transportation resources.

    “What Happens If A Project Is Not Concurrent?
    If the initial review indicates that a project is not concurrent, the applicant has the option to either withdraw the project, scale back the project or agree to implement conditions or mitigation options that will make the project concurrent. Under certain circumstances it will be necessary for the applicant and the city will enter into a Development Agreement (requiring City Commission approval) in order to ensure that mitigation requirements are met. ”
    Well, can’t the developer just move outside the city boundary?
    “Leon County has a similar concurrency determination review process in many ways, but there are some differences. Projects located outside of the city limits should contact the Leon County Growth Management Department at 488-9300 for information on the county’s concurrency requirements.”
    This is intended as just an example.
    If you asked Virginia FREE about this they would either play ignorant or argue against anything that puts costs on development, IMO.

  7. One other point, if Fairfax County had home rule and broad control over roads, the County would not necessarily build new ones or widen older ones. There is a strong sentiment in many areas of the county, including Great Falls and Reston, against widening roads because they might attract more traffic. I am not arguing that no new roads or widened roads can be built. But there is strong opposition against projects that could bring more traffic into neighborhoods. For example, I am aware of a number of HOAs in Great Falls that oppose widening of Route 7 because it would likely increase traffic volumes, both on the highway itself and on neighborhood streets as drivers bail out from Route 7 to avoid Tysons. Supervisor Hudgins is also opposed to Route 7 widening because of a similar fear for neighborhood Reston streets.
    As I’ve argued many times, transportation issues in Fairfax County are must deeper than just the very real lack of funding.

    1. DJRippert Avatar
      DJRippert

      But then I would know who to go throttle – metaphorically speaking.

  8. larryg Avatar

    ” The real anti-progress types are the retired and semi-retires sad sacks of the Boomer generation who have milked the US for every dime in scams ranging from looting Social Security to rampant deficit spending. Now, those same lazy, selfish, un-American people strive to avoid anything resembling paying their fair share by inventing idiotic arguments to support their “I don’t want to pay any taxes” lifestyle.”

    maybe… but you’re blaming people for Demographics – not only in this country but in most industrialized countries that also have “boomer”demographics.

    No boomers increased payouts for social security or Medicare… and as I have said endless times – if nothing is done for SS – it basically continues on indefinitely but at a 75% level. Medicare Parts B,C,D is another story and seniors will have to pay more for it than they do now – and they should – many people who have Medicare pay about $100 a month while they own 2 homes and 3 cars… it’s obscene….and changes have to be made.

    re: home rule and education.

    the 1% of the sales tax that the state collects state-wide – belongs to the state not the localities or the localities schools. They also get 1% each so all 3 get 1%.

    Using DJ’s logic.. the Income tax does not belong to the state either.

    The state has responsibilities also and funds them from taxes.

    The localities have responsibilities and they have taxes.

    In 46 other states, all Virginia cities and towns and 2 counties – the locality has responsibility for their local roads.

    there is no “pleading with the state” for more money for local roads. If you want more/better local roads you have the same choice you do for more/better local schools – increase local taxes

    Fairfax chooses to increase taxes for schools and then play blame games with their roads. They essentially refuse to take responsibility for their development decisions and want to blame someone else for the traffic problems that they have created by approving more and more development and refusing to use the tax money from that development to keep up with the increased traffic that comes from their development approvals.

    If Fairfax wants to attract more industry to the area – it’s up to Fairfax to take responsibility for the traffic – that they create.

    As I said.. in 46 other states – the localities take FULL responsibility for their development decisions… and the associated transportation impacts.

  9. larryg Avatar

    re: ” zero) Federal business”

    yes.. but do you sell to Govt Contractors? AH HA! I thought so….

    Bonus Question: Would you compromise your principles and sell to the Govt if they wanted to buy?

    re: California vs NoVa

    yes.. as TMT intimated… no less that Jim B himself talks (sometimes incessantly) about just how bad the business environment is in California (despite the fact that it is the worlds 8th largest economy).

    re: Va “free” and DJ – both advocate tax increases ….

    Most of Va “Free” though looks like a Whos’ Who of GOP money contributors.

    So how can you give GOBS of money to the GOP and at the same time advocate for tax increases?

    How can you talk about “squashing” business with job killing tax increases and at the same time advocate for tax increases?

    1. DJRippert Avatar
      DJRippert

      “yes.. but do you sell to Govt Contractors? AH HA! I thought so….”.

      No. None. Not one. Boeing uses the open source version of our product and has never paid us a penny.

      Sorry, LarryG.

    2. DJRippert Avatar
      DJRippert

      I don’t give GOBS of money to the GOP. In fact, the only money I have donated to political candidates over the last 10 years has been to a Democrat.

  10. “So how can you give GOBS of money to the GOP and at the same time advocate for tax increases?”
    They are advocating tax reductions for themselves and tax increases for everyone. Where are the cost-based transportation impact fees? Where are the adequate public facility laws?

  11. larryg Avatar

    well.. TMT.. I think you got the answer.. impact fees are assigned to businesses not citizen taxpayers….

    but .. let me relate an issue underway where I live on this issue.

    First, let’s cover 3 ways that development can impact a community :

    1. capital facilities
    2. operational costs
    3. spin off economic benefits.

    The last couple of years have been pretty tough down this way for developers and they’ve taken a new tact with regard to proffers.

    Basically what they are saying is that proffers and operational costs can be offset with property and sales taxes plus income tax paybacks from the state PLUS economic spin offs ( which are totally off the wall WAGs although Stephen Fuller seems to have no trouble spinning them).

    So.. the county hired a consultant to develop a process – complete with computer model to take in account all the variables from numbers of kids in the house to the value of the house to the traffic generation, etc.

    they did this basically to establish a county standard and not have to rebut each new and unique “study” that a developer asserted …”proved” that their development paid for itself and should not be subject to proffers.

    But also keep in mind that proffers only pay for capital facilities – not operational costs.

    Operational costs are pretty simple. If there are no kids, the household easily pays for it’s operational services and then some. If there are kids, they don’t.

    and this does not include any significant proffers for roads – (which actually work opposite to schools – in that the up-front capital costs far exceed the operational costs).

    So… basically Fairfax has chosen to build and operate schools with their tax dollars…and not do much about transportation ..so in the end.. the big gorilla in the impact fee game is – not really schools but roads.

    schools are not cheap but relative to the operational costs they are small.

    A seat for a kid can cost about 10K one time cost. But his annual school costs is 10K – for 12 years.

  12. Proffers should not pay for operational costs for schools. That’s what taxes are for. Proffers should pay substantial portions of the capital costs for schools and transportation facilities.

  13. larryg Avatar

    agreed but the capital costs of schools are basically 1/12 of the operational costs. It’s the operational costs that cause high(er) taxes.

    The problem is (we both agree) that the capital costs of roads are not collected in the same scope and scale as it is for schools.

    We collect enough proffer money to build new schools. We don’t collect near enough proffer money for needed (local) roads.

    Many local road improvements are funded from increased / or allocated taxes approved in referenda.

  14. larryg Avatar

    ” No. None. Not one. Boeing uses the open source version of our product and has never paid us a penny.”

    unbelievable!

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