Virginia Senate Republican Caucus

Born in Fredericksburg, Virginia, August 18, 1936; educated at University of Richmond (B.S. Accounting, M.B.A.); Certified Public Accountant/Consultant; Principal, Stosch, Dacey & George, P.C.; member: Monument Heights Baptist Church; Senate Majority Leader, 1998-. Member of House of Delegates: 1983-92. Member of Senate: 1992-.

Contact Information:

Mailing:
Innsbrook Centre
4551 Cox Road, Suite 110
Glen Allen, VA 23060-6740

Phone: (804) 527-7780
Fax: (804) 527-7740

Email:
senator@walterstosch.com

Website:

Visit His Website

As the General Assembly ended its first full work week of 2010, some patterns have emerged.  A flood of legislation has been submitted, but that   is nothing new.  Partisan maneuvering has gone on; but that, too, is expected.  And we have heard from our newly elected  Governor.  That, however, only happens once every four years.

Governor McDonnell laid out in broad terms what he hopes we can accomplish together in the tough economic times and I applaud him for it.  His vision of a "Commonwealth of Opportunity" fits snugly within the primary agenda I have always pursued in the legislature - encouraging an economic climate in which we all prosper so that our individual and collective needs are met.

If you review the legislation I have introduced you will see a pattern there too.  I continue to focus on practical matters that can improve our quality of life.  In January of 2010 that means doing whatever we can to spur employment and put our unemployed friends and neighbors back to work.

To that end I will expend a good deal of vigor in promoting my jobs creating legislation including a "Clean Energy Manufacturing Incentive Grant Program.  The bills, SB129 along with SB181 provide economic incentive grants to businesses which first employ workers and make investments in their venture.  In other words, people are put to work, investments are made and taxes are paid before the business recieves any state money, an approach in stark contrast to what has gone on at the federal level in recent months. 

SB129 has another purpose - to expand our domestic clean energy production.  It applies to new, start up businesses that manufacture or assemble equipment, systems, or products used to produce renewable or nuclear energy, or products used for energy conservation.  Public utilities are not eligible.

Virginia has led our nation in so many ways at so many times in our history.  Leading the way in energy independence is a highly laudable goal I share with our new Governor.  This bill can help.

Expanding opportunities for Virginia families can take many forms.  I am looking to do so with respect to community college students and families with students with disabilities, issues I will address more fully in the coming weeks.

And while we look to expand opportunities, at times we also have to combat those who would limit freedom and opportunity by expanding government and making it more intrusive.  There will be measures before us that will challenge recent federal actions and I look forward to finding ways we can do just that.  For example, I will serve as a co-patron on SB417 (the Senate campanion bill to HB10), regarding an individual's right to participate in a health care system or plan.   Yesterday SB417 passed in the Committee of Commerce and Labor with a vote of 8 yeas and 7 nays.  SB417 will now go to the floor of the Senate.

This will not be an easy session for anyone.  The state budget deficit will force major cuts in the state budget, even for programs previously thought of as sacred.  And the loss of a state Senate seat by my party in Northern Virginia caused a shuffling of committee assignments that significantly alters the legislative playing field. 

On the other hand, you are part of the process and that is a very good thing.  The suggestions that citizens with a fresh perspective pass on are invaluable.  I encourage you to keep them coming.  There are roughly 174,000 citizens in our Senate district.  Representing the best interests of all is a daunting task.  But together, I believe, we are up to the task.

Walter Stosch

12th Senatorial District

Commonwealth of Virginia

The following are articles from newspapers, blogs, and other news sources throughout the Commonwealth and the country featuring members of the Virginia Senate Republican Caucus. 

• Sen. Ralph Smith
  • Ralph Smith proposes more time to read budget – WDBJ 7 TV - As state lawmakers prepare to debate the budget, Senator Ralph Smith wants to make sure they have enough time to read it.
• Sen. Walter Stosch
  • Bill would force VA health plans to cover autism – WV Gazette – It's not that Ryan Shank-Rowe couldn't tell his mother or father when he's in pain, not even when he broke his leg.  It's not even the constant care the autistic boy of 7 requires, making time alone rare for Donna Shank and Greg Rowe and forcing them more than once to discuss divorce after 17 years of marriage.
• Sen. Jill Vogel
  • VA Lawmakers lock horns on healthcare – TV3 Winchester - Tomorrow the full Virginia state senate will vote on legislation that is commonly known as the health care freedom bill.
• Sen. William Wampler
  • Virginia legislators might double cuts in effort to balance state budget – Bristol Herald Courier – Republican Will Morefield, now the youngest member of the Virginia General Assembly, thought he’d been through a tough challenge when he ran in the 3rd District against a Democratic incumbent twice his age – and won.

Capturing the headlines and the attention of many this past week were the State of the Union Address by the President and the response from our governor, Bob McDonnell.  Both focused on the economy and the federal budget deficit.  Public opinion polls I have seen detect widespread skepticism over the effectiveness of these federal actions.  I share that skepticism.

However, I would urge Virginians to take a close look at what we are attempting in Richmond.  Doing so will reveal a much different approach being taken here and one I believe will be effective in the long run.

The Governor's formal package of economic development bills includes two of my measures among the 21 proposals.   One, SB455,  would have the state waive administrative fees for permits for small businesses submitted by veterans.  I have taken a keen interest in veterans' affairs and believe the state should do all that is practicable to assist them.  Aiding veterans, should they choose to start up a business in these tough economic times, is certainly appropriate.

Another bill, SB181, would reward businesses that develop public-private partnership projects with grants paid for from a portion of the growth in state taxes and fees attributable to the project.  The best way to speed up our state's economy and get our people back to work is to spur private investments.  This bill will do just that with the private entrepreneur and the state government sharing in the success.

On the budget front, the subcommittees on which I serve have begun to examine our sections of the budget, item by item, as we do each year.  I can assure you there will be cuts, many of which will be painful.  But what we will not do is engage in any budgetary tricks, impose a superficial "freeze" or leave a debt for our children and grandchildren to pay.  That is not the Virginia way.

As we consider each bill we must take into account its impact on state and local spending.  Sometimes a careful and accurate analysis by outside experts confirm expected cost savings or benefits.  Such is the case with SB649.  This bill of mine would provide financial assistance to the parents of students with autism who enroll their children in nonsectarian private schools equipped to meet their special needs.  An analysis by Dr. Susan L. Aud of George Mason University found that the average school division would save roughly $10,000 for each student who takes advantage of such a program.

It was 240 years ago that John Adams coined the now-popular phrase "facts are stubborn things."  As someone who spent his career as a CPA, I can attest to the fact that if we are diligent, we can with precision determine costs and values.  If my fellow legislators look past the slogans of the critics and examine instead the "stubborn facts," we can get the families of autistic children what they need and deserve.

As always I value the views and insights of my constituents.  My website is always available to you.  There you will find my 2010 constituent survey on the home page and also via this link.  I look forward to hearing from you.

Walter Stosch

12th Senatorial District

Commonwealth of Virginia

The following are articles from newspapers, blogs, and other news sources throughout the Commonwealth and the country featuring members of the Virginia Senate Republican Caucus. 

• Senators Ryan McDougle and Walter Stosch
  • Va. technology chief leads VITA talks with Northrop Grumman – The Richmond Times Dispatch - Virginia's new secretary of technology is taking command of negotiations with Northrop Grumman in the latest attempt to salvage relations with the company hired to run the state's computer network.
• Senator Robert Hurt
  • APCo may suspend rate increase – The Franklin News Post - Appalachian Power Co. (APCo) would suspend an interim rate increase that it began charging in December if the General Assembly and Gov. Bob McDonnell approve emergency legislation that sets a timetable for the State Corporation Commission (SCC) to rule on APCo's request for a rate increase.
• Senator Ryan McDougle
  • McDougle applauds approval of Healthcare Freedom bill in Senate – The Mechanicsville Local - The national healthcare debate came to Richmond earlier this week and a key Senate vote on the important issue resulted in victories for the basic freedoms that Virginians currently enjoy.
• Senator Richard Stuart
  • Many veterans salute Stuart's flag bills (Editorial) – Fredericksburg.com - State Sen. Richard Stuart, I believe, was trying to resolve a specific problem that seems to be cropping up, generated by homeowners associations' rules and regulations ["Bill may help flag fliers," Jan. 15].
• Senator William Wampler, Jr.
  • Virginia House approves BVU authority bill – Bristol Herald Courier - Legislation to establish an independent Bristol Virginia Utilities authority continued hurtling through the General Assembly on Thursday, but questions remain about its possible implementation.

The following are articles from newspapers, blogs, and other news sources throughout the Commonwealth and the country featuring members of the Virginia Senate Republican Caucus.

• Senators Emmett Hanger, Jr. and Jill Vogel
  • Bills Pass to Ease Restrictions on Concealed Weapons – The Pocomoke Public Eye - Two bills that would allow handgun owners to lock weapons in their cars and permit those with concealed carry permits to bring firearms into restaurants were approved in Virginia's Senate on Tuesday.
• Senators Ryan McDougle and Walter Stosch
  • IT authority for governor approved – The Richmond Times-Dispatch - The state Senate is falling in line behind a measure giving the governor a direct say in the state's computer bureaucracy and its stormy relationship with contractor Northrop Grumman.
• Senator Emmett Hanger, Jr.
  • State legislation changes houses – fredericksburg.com - The legislative session marked its halfway point yesterday, with legislators holding floor sessions for hours to handle hundreds of bills before a midnight "crossover" deadline by which each house was to finish its own bills.
  • Virginia Senate approves collecting taxes on online sales – The Virginian-Pilot - A bill that would require global online shopping giants such as Amazon to start collecting and paying Virginia sales taxes won easy Senate passage Tuesday.
• Senator Stephen Newman
  • Legislation seeks to help students succeed – The Daily Times - Gov. Bob McDonnell says charter schools, online educational programs and college partnerships can boost the performance of Virginia's public school students -- especially those at risk or in underperforming districts.
• Senator Mark Obenshain
  • Valley Legislators Applaud Rest Area's Re-Opening – WHSV.com - Dels. Matt Lohr (R-Broadway), Todd Gilbert (R-Shenandoah), Steve Landes (R-Weyers Cave), Dickie Bell (R-Staunton), Ben Cline (R-Rockbridge) and Sen. Mark Obenshain (R-Harrisonburg) all joined in commending Gov. Bob McDonnell for keeping his promise to re-open rest areas throughout the Commonwealth.
  • High Stakes For Higher Ed – Daily News-Record - As a tuition-paying parent of a James Madison University student, state Sen. Mark Obenshain said he's worried that money raised through student fees could soon be deposited into the state's general fund.
  • Planned Parenthood license plates bill clears Va. Senate – The Washington Post - The Virginia Senate, controlled by Democrats, has passed a measure that would create a specialty state license plate with the message "Trust Women/Respect Choice."
  • Most Virginia death penalty expansion bills rejected – The Virginian-Pilot - With a governor supportive of expanding capital punishment finally in office, this was going to be the year a perennial effort to repeal the state’s so-called  triggerman  law finally found success.
• Senator Jill Vogel
  • Autism Bill Passes Senate – Leesburg Today - News some Loudoun families have been waiting for came today. A bill that would mandate insurance coverage for autism spectrum disorder passed the Senate by a 27-13 vote. Both of Loudoun's representatives, Sen. Mark Herring (D-33) and Sen. Jill Holtzman Vogel (R-27), voted in favor of the bill.
• Senator Frank Wagner
  • Governors to come together over wind energy – The Virginian-Pilot - Gov. Bob McDonnell and Interior Secretary Ken Salazar don't have much in common when it comes to offshore drilling, but wind energy may be another story.
• Senator William Wampler, Jr.
  • In private, Virginia governor pushes deep budget cuts – The Washington Post - Virginia Gov. Robert F. McDonnell (R) has privately recommended cutting $730 million from K-12 education and $300 million from health programs, as well as changing the state retirement system and requiring 10 days of furloughs for state employees, all to help offset a $2.2 billion budget shortfall over two years, according to sources familiar with the plan.

Article Content

The following are articles from newspapers, blogs, and other news sources throughout the Commonwealth and the country featuring members of the Virginia Senate Republican Caucus.

• Multiple Senators
  • Senate votes for speed limit, handgun bills – The Virginian-Pilot - Bills that would boost speed limits on some Virginia highways, allow handgun owners to lock weapons in their cars and permit those with concealed carry permits to bring firearms into restaurants each gained approval in Virginia's Senate on Tuesday.
• Senators Ryan McDougle and Senator Stephen Martin
  • Panel delays anti-gang bill – Star-Tribune - of a bill to increase the penalty for the use of e-mail, text messages or other electronic transmissions by criminal street gangs.
• Senator Emmett Hanger, Jr.
  • More school cuts loom – NewsVirginian.com - Area schools superintendents were digesting news Wednesday of Gov. Robert F. McDonnell’s proposed $731 million in additional cuts to K-12 education for the next two years, but said the news from McDonnell can’t be positive.
  • ‘Amazon’ bill headed to the House – Richmond BizSense - Amazon has a history of avoiding state sales taxes, and Virginia’s online
    sales tax bill is something they’ve seen before.
• Senator Stephen Newman
  • Senate OK’s bill against infanticide – Gainesville Times - In December, a Campbell County woman ended the life of her newborn baby by suffocation. Because the baby’s umbilical cord had not yet been cut or the placenta detached, the woman has not faced any criminal charges or other legal consequences.
• Senator Mark Obenshain
  • Dealing with Guns and Drugs – Richmond.com - This year’s General Assembly session, convened on Jan. 13, is a budget year session. Meaning that, according to schedule, it will run two months. A total of 2,640 bills have been presented for consideration this year.
• Senator Walter Stosch
  • Lawmakers divided on furlough proposal for state workers – Richmond Times-Dispatch - Lawmakers are divided over Gov. Bob McDonnell's proposal to save state jobs by forcing those who have them to take 10 days of unpaid vacation over the next two years.

Article Content

In a few days the Senate Finance Committee will unveil its version of the next two-year budget.  All that I can report to you today is that it will please almost no one.  We are all aware of the dire economic straits in which we find the Commonwealth.  Ironically, when resources are most scarce, the need for services is most acute and the prospects for new funding the most remote.

The appeal to "do more with less" is heard more often in times such as these and that is not a bad thing.  Many of our friends and neighbors have lost jobs, state tax revenues are down, and any budget sacrifice will be shared.  Difficulties such as these force state and local governments to rethink their priorities.  Naturally, we should always be examining and reexamining what we do and how we are doing it.  This approach is how successful private sector ventures work and it is how the public sector ought to operate.

The cuts in public education funding will surely alarm many.  Nothing draws a more sympathetic ear than appeals to take care of our children in the classroom, and rightfully so.  By the same token, nothing should keep us from looking with an open mind at any reform measures that might improve the education our children receive.

You may find instructive what the Senate has considered so far regarding K-12 education.  Schools will continue to be required to purchase new textbooks while class sizes grow.  School calendars will continue to delay school opening until after Labor Day.  And much to my regret, families of children with autism were denied the choice of a private specialized school should a parent find an educational setting they believe more appropriate for their child.

Bills have passed which will result in maintaining records of pesticide applications at schools, make sure Driver Education includes instruction on how to drive fuel efficiently, and spend $210,000 to regulate the nutritional value of foods sold at school.

In addition, it is my fervent hope that the three educational reform measures proposed by Governor McDonnell last week get a full and fair hearing in the Senate and House.  One measure would have the State Board of Education pre-certify charter school applications.  In addition to being sound policy, this would enable Virginia to tap into $350 million in federal funds.  Another would establish on-line virtual schools enabling students who struggle in a traditional classroom environment to engage in distance learning that suits their needs.  The third would establish laboratory schools connected to our colleges and universities that would provide expanded innovation and flexibility with the results being shared with parents and educators.

In my constituent survey, equally high marks were given to funding public schools and making it easier to establish charter schools.  Residents of the 12th District understand that the goals of supporting the current system while looking for reforms and improvements are not mutually exclusive but, in fact, compatible.

One spokesman for the educational establishment has been quoted as saying, "We support parents making good educational choices for their children, but we're opposed to having a public policy device that would allow that to happen."

On the contrary, if this session ends up expanding educational opportunities for our children and setting us on a course of innovation and improvement, it will have a lasting, positive legacy. 

Article Content

The following are articles from newspapers, blogs, and other news sources throughout the Commonwealth and the country featuring members of the Virginia Senate Republican Caucus.

• Multiple Senators
  • Senate backs gas-tax, gambling measures – Richmond Times-Dispatch – Two Republican measures pumping horsepower into the road-building fund are galloping out of the Virginia Senate.
  • Schools may start before Labor Day – Suffolk News-Herald - Momentum is building in the General Assembly to let school districts start classes before Labor Day.
  • Senate Democrats overcome divisions on budget, but Republicans are wary – The Washington Post - With about 48 hours to go before the House and Senate release their proposed budgets, we now hear that Senate Democrats have perhaps patched up some of their divisions.
• Senator Harry Blevins
  • Seat belt law not ‘clicking’ with House – Gainesville Times - A House subcommittee has killed a bill to make failing to wear a seat belt a primary offense in Virginia.
• Senator Emmett Hanger, Jr.
  • Commonwealth Center again saved from budgetary cuts – The News Virginian - Lawmakers decided Sunday to keep open Staunton’s Commonwealth Center for Children and Adolescents.
  • Equalize Internet sales with tax – The News Leader - The time has come to level the playing field between Internet retailers and those who invest in the bricks and mortar to comprise Main Streets all across Virginia.
  • Legislators likely to restore CCCA funding – The News Leader - For the second consecutive year, it appears lawmakers will be able to restore funding to keep the Commonwealth Center for Children and Adolescents open.
  • House, Senate easing gun control laws – The News Leader - Almost as fast as an AK-47 can spit bullets, gun bills are hurtling through the Virginia General Assembly, including one introduced by Sen. Emmett Hanger, R-Mount Solon, that will allow gun owners to bring concealed handguns into restaurants that serve alcohol.
  • Senate OKs Hanger Gas-Tax Legislation – The Daily News Record - A bill introduced by Sen. Emmett Hanger, R-Mount Solon, to peg Virginia's gas tax would rise based on increases in federal fuel efficiency standards under a bill that has passed the Senate.
  • Gas-tax indexing bill clears Virginia Senate – The Free Lance-Star - The state Senate yesterday passed a bill that would eventually raise the gas tax by indexing the tax to a federal fuel-efficiency standard.
  • General Assembly takes on gas tax, tax credits – The Roanoke Times - The House of Delegates on Friday approved a series of tax credits touted as job-creating incentives by Gov. Bob McDonnell, while the Senate passed a proposed change to the state's gas tax that the governor opposes.
• Senator Tommy Norment
  • Va. legislators struggle on how to slash budget – The News Virginian - Virginia’s House and Senate budget-writers are laying out competing hard-times spending plans that slash health care for the poor and increase class sizes but don’t raise taxes.
  • House, Senate budget plans compete for approval – News & Advance - Virginia’s House and Senate budget-writers are laying out competing hard-times spending plans that slash health care for the poor and increase class sizes but don’t raise taxes.
• Senator Frank Ruff
  • Indian tribes gain favor of General Assembly – Tidewater News - The General Assembly passed legislation this week officially recognizing one Indian tribe in Virginia and advanced similar bills extending recognition to two Southampton County tribes.
• Senator Walter Stosch
  • Budget for schools, health would be hit by legislators, too – The Virginian Pilot - The General Assembly's budget-writing committees set the stage Sunday for battles over funding of public schools and health care safety- net programs, producing competing plans for addressing a two-year, $4.2 billion state revenue shortfall.
• Senator Richard Stuart
  • Jett makes case for all sheriffs – fredericksburg.com - These days, Stafford County Sheriff Charles Jett is almost as likely to be roaming the halls of the General Assembly in a suit as he is to be in Stafford in his uniform.
  • Power bills killed before crossover – fredericksburg.com - Last week the General Assembly hit its midway point, a deadline called "crossover" by which most bills have to be passed or killed by the house in which they originated.
• Senator Jill Vogel
  • Assembly Opposes Health Insurance Mandate – The Virginia Gazette - Weighing in on the debate over federal health care reform, state lawmakers have passed legislation declaring that no one can force Virginians to buy health insurance.

Article Content

The following are articles from newspapers, blogs, and other news sources throughout the Commonwealth and the country featuring members of the Virginia Senate Republican Caucus.

• Senator Emmett Hanger, Jr.
  • Virginia Weighs Indexing Gas Tax To Fuel Efficiency – Downstream Today - Gov. Bob McDonnell may oppose any tax increase to balance Virginia's struggling two-year budget, but the idea of implementing an adjusted increase in the gas tax to keep from losing existing transportation revenue is gaining bipartisan traction in the Virginia Senate.
• Senator Stephen Newman
  • Virginia on Speed – NBC Washington - A measure to raise speed limits is gaining momentum
• Senator Tommy Norment
  • Legislators applaud the Gloucester 40 – The Daily Press - contingent of Gloucester citizens who were among 40 people who filed petitions seeking the removal from office of four county supervisors received standing ovations Monday from the General Assembly for fighting for their First Amendment rights to petition government for a redress of grievances.
• Senator Mark Obenshain
  • Is Va. at risk of phony jurors? Lawmaker says yes – The Virginian-Pilot - Jury tampering made for a John Grisham page-turner and a Hollywood thriller, but could it happen in real life?
• Senator Frank Ruff
  • Legislators target K-12 schools in budget cuts – Collegiate Times - Virginia’s proposed budget has met resistance from supporters of K-12 education and health care as state legislators have laid out competing plans that would slash funding.
• Senator Walter Stosch
  • What’s the Big Deal About Tax Conformity? – CPA Café - Virginia has employed retroactive fixed date tax conformity for many years now. While not the ideal model due to a part-time legislature that meets from January to March, it has worked out okay for the past few years at least with conformity legislation being among the first few bills to be passed and signed into law.
• Senator Richard Stuart
  • Budget dance begins – Apria Healthcare - The Virginia House of Delegates and Senate money committees yesterday unveiled competing budget proposals that both restore $950 million in annual car-tax payments to localities and cut Medicaid funding but differ on how much to trim from K-12 education.
• Senator Frank Wagner
  • Va. Senate OKs bill on using offshore-drilling cash for roads – Richmond Times-Dispatch - A proposal to pay for roads with cash from offshore drilling is headed to Gov. Bob McDonnell, though it may prove a financial dry hole.

Article Content

The following are articles from newspapers, blogs, and other news sources throughout the Commonwealth and the country featuring members of the Virginia Senate Republican Caucus. 

• Multiple Senators
  • Despite Senate maneuvers, gun bills head to McDonnell – The Roanoke Times - Bills that would ease restrictions on guns in bars and in cars are headed to the desk of Gov. Bob McDonnell, even as a Senate subcommittee seeks to bottle up similar measures.
• Senator Emmett Hanger, Jr.
  • House panel carries over bill to index gas tax – Richmond Times-Dispatch - The House Finance Committee voted today to carry over until next year a bill to increase the gas tax as cars become more fuel-efficient.
• Senator Ryan McDougle
  • McDougle rounds out GOP Senate leadership – Bearing Drift - State Sen. Ryan McDougle (R-Hanover) was unanimously selected by his peers to serve as the Republican Caucus Pro Tempore today, completing the caucus’ leadership team.
• Senator Mark Obenshain
  • Senate Democrats set up panel to quash gun bills – Richmond Times-Dispatch - A number of House of Delegates bills that would make it easier to purchase, carry and use guns have been routed to a newly created Senate subcommittee loaded with legislators opposed to expanding gun rights.
• Senator Walter Stosch
  • Schools, health would be hit by legislators, too – The Virginian-Pilot - The General Assembly's budget-writing committees set the stage Sunday for battles over funding of public schools and health care safety- net programs, producing competing plans for addressing a two- year, $4.2 billion state revenue shortfall.
• Senator Jill Vogel
  • GOP officials push Obama for health care reset – The Roanoke Times - Lt. Gov. Bill Bolling and two Republican state legislators said Monday that President Obama should go back to the drawing board in crafting a health care reform plan and include ideas advanced by GOP lawmakers.
  • Bolling, legislators urge Obama, Congress to start over on health-care reform – The Washington Post - http://voices.washingtonpost.com/virginiapolitics/2010/03/post_615.html

General Assembly Newsletter

March 3, 2010

This past week the Senate Committee on Finance reported out its version of the budget.  The budget reported was the result of weeks of intense consideration. I can assure you that in Virginia the budget is closely scrutinized and debated again and again in order to provide our citizens with what we believe is the best possible scenario.         

Unlike the U. S. Congress, here in the Virginia General Assembly we are required to pass a balanced budget. This fiscal discipline has served us very well, so much so that we continue to earn a coveted AAA bond rating year after year.

Unfortunately, the conditions under which this year's budget is being fashioned are less than desirable.  The economic downturn that has swept our nation has caused revenues in Virginia to shrink considerably. This is not a matter of a slower growth rate; we simply have fewer actual dollars available.

You may rightly ask how we could be the best state in which to do business and the best managed state yet still face this dilemma. First, we are not immune to the factors that have dampened the national economy.  Furthermore, our state taxation structure is especially vulnerable to economic fluctuations. 

Eighty percent of state revenue comes from just two sources - sales tax and income tax.  When people are out of work they do not pay an income tax.  In addition, they do not purchase as many goods and services, which results in lower revenues from the sales tax.   As a result, our current rate of unemployment negatively affects the largest two sources of state revenue in a serious way.

Our hearts go out to our friends and neighbors who are out of work, but they need more than our sympathy. They need a job.

The need for jobs is why my attention this session has been concentrated on economic development issues more than ever.  We can not tax ourselves out of this budget shortfall; we must grow ourselves out of it.

There are sister states that have neglected maintaining a healthy business climate and are currently suffering as a result.  While we should not revel in their misfortune, Virginia should continue to invest in economic development incentives to entice those businesses seeking to relocate or expand.  Every day that a new business opens, people are employed, revenue is generated, and we can better afford the vital state services we need and expect.

My consideration on the budget was guided by the dual concern that we fund essential services to the extent possible while remaining ever cognizant of the effect each action that we take has on our quest to return to economic prosperity.  Programs that promote economic development should be pursued.  Taxes, fees, and regulations that hamper recovery must be avoided.

For the most part, this is a budget I can support. I did vote for the budget in committee and in the full Senate. Nevertheless, I felt compelled to register a dissent.  One action the budget requires is to reduce the state contribution to the Virginia Retirement System for the next two years.  While doing so does not jeopardize the actuarial health of the VRS, it is what I consider a "gimmick" that must be avoided.

The reduction in payments will not be felt in the short run simply because not everyone will retire all at once.  However, the fund must be replenished over time.  It would be equivalent to you or me taking out a ten year loan to pay for our groceries.

Now that the Senate and the House of Delegates have both passed their version of the budget, the business of melding them into one budget begins.  Again this year, I will be one of the members of the conference committee.  The same principles that guided me in helping fashion the Senate version of the budget will guide me in negotiations with the House conferees and I believe we can come to a beneficial agreement.

These are certainly difficult times.  However, just as our cherished quality of life was not established in a day, it will not be permanently eroded by this economic downturn.  As painful as some of the provisions of the budget are, we must stay focused on job creation to generate the revenue needed for our Commonwealth. 

Walter Stosch

12th Senatorial District

Commonwealth of Virginia

As always I value the views and insights of my constituents.

My website is always available to you.

There you will find my 2010 constituent survey

on the home page and also via this link.

I look forward to hearing from you.