Business Leadership for the Augusta Region

Public Policy Positions

 P.O. Box 1107, 30 Ladd Road, Fishersville, VA22939

Phone: 540-949-8203 Fax: 540-949-7740

 www.augustachamber.org

 Public Policy Positions

The  Legislative Agenda for the Greater Augusta Regional Chamber of Commerce has been drafted by the Chamber’s Government Affairs Committee and approved by the Chamber’s Board of Directors.  As the Chamber has grown in size and influence, it is increasingly looked to by business leaders and legislators alike, at the local, state and national level to provide input on the important issues facing the business community. This document is a response by the Chamber to requests from its members and from the elected officials of the area to provide more guidance on the important issues facing us as a business community.

With over 1100 members, the Chamber is sensitive to the fact that on any issue it will be impossible to get 100% support.  However, the Chamber has taken great pains to adopt only those positions which it feels are (1) important to its members, and (2) reflect the opinion of the clear majority of the business community.  We understand and respect that some of our members may disagree with positions we have taken.  Moreover, as these positions envolve they are subject to change. The Chamber welcomes vigorous and well informed debate regarding the issues that face our business community.  For those of you who may disagree, we encourage you to take that as a cue to become more involved, not less involved.

  Executive Summary

The Chamber realizes that the vast majority of governing officials do their very best to serve the legitimate needs of those by whom they are elected.  However, no matter how laudable the goal, it is simply not fair, nor wise, for the cost of measures meant to promote the general welfare to be borne solely or primarily by the business community.  Thus, the Chamber hopes that all parties will agree that the proposal listed above strike a fair and just compromise

TAXATION
Position statement:  The Chamber supports a revenue system that fosters a favorable business climate and encourages economic development, which means that taxes should be few in number and should not disproportionately burden one sector of the economy over another.  Taxes administered should maintain a balance between tax growth, population growth and economic activity.
The Chamber supports local and state tax policy that encourages business opportunities and investments for general business.  Industry-specific taxes should generally be avoided.  Income taxes should not have a high marginal tax rate nor have excessive brackets.

There should be uniform assessment of property taxes at a fair market value.  The Chamber supports a competitive sales tax rate applied to a broad base designed to encompass true consumption.  The Chamber also supports the continuation of the long-standing state policy of not placing a sales tax on goods acquired for production. 

WORKFORCE DEVELOPMENT
Position Statement:  The Chamber believes that a strong public education system and the availability of technically skilled people are vital to our region’s future prosperity and quality of life. Business has a critical role to play, in partnership with our educational institutions and those that provide workforce training services, to ensure that we have the talent we need to remain competitive.
The Chamber recognizes that the availability of a technically skilled and flexible labor force is a key factor sought by business today and seeks to establish programs and policies that will achieve such a workforce in our area. We support continued education and training at all levels, including pre-K-12 education, post-secondary education, adult literacy, vocational and certification programs, as well as on-the-job and customized training programs. A key to success is the continued development of the Virginia Community College System as centers of excellence for workforce.  The involvement of business in workforce development is essential to our attractiveness as a business location.

Pre-K – 12
The Chamber supports policies and practices that advance the principle of accountability for all involved in the educational process. It is imperative that all students have access to the resources they need to reach high standards including quality physical facilities, equipment and materials, as well as a sufficient number of well-qualified instructional personnel.

Schools should make available and promote the use of computer technology as a major tool for information gathering, problem solving, and cooperative learning; facilitate the active involvement of businesses and business people in the administrative, teaching, and enrichment activities of schools, local boards, policy-making bodies, and advisory groups.

In order to ensure that students at all educational levels have an appropriate understanding of reality-based career options, schools should elevate the educational respectability and academic rigor of technical education to a status which encourages workforce development at all levels; promote smooth transitions for students from high school to and among programs and institutions for job or technical training, community colleges, and four-year degree institutions without undue loss of time, money, or earned credit; and encourage and facilitate parental involvement in all aspects of their children's education.

REPEAL OF THE ESTATE/DEATH TAX
Position Statement: The Chamber supports the elimination of the estate/death tax.
In June 2001 Congress passed the Economic Growth and Tax Relief Reconciliation Act which phases out the federal estate tax over the next ten years. The amount of an estate exempt from federal taxation will rise in steps through 2010, at which point the federal tax will be completely eliminated.  However, the estate/death tax then will be fully restored in 2011 to its pre-2001 levels, unless further legislation is passed prior to that point.  

There are a number of logical arguments that favor the elimination of the estate/death tax.  However, two are most persuasive.  First, the estate tax particularly penalizes small, family-owned businesses, especially family-owned farms.   The vast majority of Virginia’s farms are valued at less than one million dollars, and the majority of the business’s assets are invested in the operation.  A farm is typically “land value wealth and cash poor.”  Frequently, the next generation must sell land to settle the estate taxes.   In many cases this will even lead to the inheriting party being forced out of business.

Second, it is simply unfair to tax the same money twice.  The money in the estate all would have been presumably taxed a first time when it was earned.   There is something inherently inequitable about then taxing the same money a second time upon a person’s death.

TRANSPORTATION
Position Statement:  The Chamber supports increased long-term investment in transportation infrastructure to promote economic development and quality of life in the region.
Effective transportation systems are essential to continued economic growth and development in the region as well as Virginia as a whole. All modes of transportation are becoming increasingly important to the prosperity, health, education, safety, security, environment and overall quality of life – but the resources are not available to meet demands.

The Chamber supports increased investment in the transportation infrastructure and coordinated land-use planning across Virginia, with appropriate emphasis and funding given to the Shenandoah Valley region, in order to support the growing economy and population.

In addition, the Chamber supports the development of a comprehensive, long-term solution that addresses the following criteria: transportation safety and security; improvement in the mobility within and across all travel modes; community goals as it relates to economic development; maximizing transportation operations and efficiency in the region; and providing adequate funding for roadway maintenance, maintenance of secondary roads and balances concerns with respect to aesthetics.

INTERSTATE 81
Position Statement: The Chamber supports conservative, cost-effective solutions to the problem of improving Interstate 81, provided that they do not involve tolls.
The issue of what improvements need to be made to Interstate 81, when, and how has been a “hot-button” topic in the Shenandoah Valley for a number of years now.  Lately, it has moved even more to forefront of the local consciousness. The Chamber suggests that the solution to this problem will not be easy, and will not be arrived at overnight. The Chamber is committed to facilitating the debate on this topic and making sure that all voices, but especially those of the business community are heard.  The Chamber does not pretend to be able to suggest a definitive answer at this time.  This answer should be arrived at by individuals, businesses and elected officials working together in a spirit of cooperation and compromise.  The Chamber, however, can only support a solution that meets the following parameters:

• The residents of the Shenandoah Valley and the tourists who come here each year pay a fair share of taxes, especially the gas tax. The Chamber opposes tolls on residents, businesses and tourists of the Shenandoah Valley to fund legitimate and necessary highway repair and construction in their own back yard.  Moreover, the impact of a toll on small to medium-sized trucking companies in the Valley would be debilitating.
• The solution that is arrived upon should be as least costly and as conservative as is required to meet the legitimate needs for upgrade, repair and improvement on Interstate 81.   Simplistic solutions which call for costly and wholesale changes along the length of Interstate 81 without justifying a need therefore are not favored by the Chamber. 
• The aesthetic beauty of our home region not only provides us with enjoyment, but with tourism that is vital to our economy and livelihoods. Any solution should take into account how to minimize the impact of construction and repair on our natural resources.   

EMINENT DOMAIN
Position Statement:  The Chamber supports policies and legislation that protect the fundamental, constitutional right to own property. 
The Chamber recognizes schools, roads, utilities and other historically public uses as uses where government may need to exercise the power of eminent domain  However, private property should not be taken under the power of eminent domain unless it is (i) taken for the possession, occupation, and enjoyment by the public at large, or by public agencies; (ii) to be used for the creation or functioning of a public service corporation or company, including but not limited to railroad companies that possess the power of eminent domain; (iii) taken for public highways or other public transportation facilities; or (iv) blighted and the taking eliminates a direct threat to public health or safety caused by the property. An increase in tax base, tax revenues, employment, or general economic health and welfare are not public uses. Property should not be taken under eminent domain for private commercial enterprise, economic development, or any other private use.

MINIMUM WAGE
Position Statement: The Chamber opposes any effort to establish a minimum wage for the Commonwealth of Virginia, or any of its localities that is higher than the federally-mandated minimum wage. 
The proponents of these so-called “living wage ordinances,” while perhaps well-meaning, ignore certain economic realties. First, these measures put the state or locality who passes them at a competitive disadvantage in comparison to its neighbors. Second, increases in the minimum wage intended to address poverty can actually have the adverse affect of increasing poverty by eliminating certain entry-level jobs.  Finally, these “living wage” laws hurt both the businesses who must divert funds away from job creation and benefits to fund the mandate, and their employees who miss out on these benefits and opportunities.  Instead, the Chamber encourages localities and businesses to focus on providing people with workforce training and advancement opportunities so employees can get the skills they need to advance in the workplace and earn more without a mandate.

HEALTHCARE
Position Statement: The Chamber supports public and private initiatives undertaken to ensure that high quality and affordable health care for the people living in the region can be sustained over time.
Delivery of health care locally should reflect cost efficiencies, accountability, and excellence in the delivery of services.  We believe that long term sustainability and viability of our businesses, both small and large, will be dependent upon management of health care costs. Affordability of medical care significantly affects the quality of life for people living in the Greater Augusta region.

Private Health Insurance is one of the most prevalent methods of paying for health care services and protecting individuals from financial harm due to catastrophic medical expenses. Group medical insurance offered by employers gives employees the opportunity to pool the risk of devastating financial loss due to medical treatment. Small and mid-size companies have experienced increases at rates higher than regular inflation in their health insurance premiums over the last five years. This growth trend as a business expense can not be sustained over time without harming the profitability of most businesses.

We encourage a dialog between professionals in the medical, business, and insurance industries.  The chamber seeks to facilitate discussions that may result in specific and realistic practices that will enable more people to become insured and help local health care providers to deliver more efficient and advanced care.

GUBERNATORIAL SUCCESSION
Position statement:  The Chamber supports amending the Virginia Constitution so as to allow the Virginia Governor to serve consecutive terms.
The Chamber is a proponent of the two-term governorship and the long-term, strategic thinking that should accompany it. We also believe it will improve government operations to have more stability in agency management. The Governor appoints the majority of executive branch agency directors and, under today’s system, those directors have at the very most a five year term.  The primary setback with this methodology is the simple factor of consistent organizational culture.  While the primary employees (i.e. bureaucrats or classified employees) are retained, those in the top positions face a distinct learning curve. As with any new position, it takes time to understand the current policies and procedures and then to develop and implement new policies and procedures. If there is concern about sole autonomy, the legislative branch can more actively exercise the authority to designate powers and duties to each executive branch agency.

DOWNTOWN DEVELOPMENT
Position Statement:  The Chamber supports the efforts to revitalize the downtown areas of Waynesboro and Staunton by working with the respective downtown development entities.
Waynesboro Downtown Development Inc. (WDDI) and Staunton Downtown Development Association (SDDA) are critical forces in the economic development and the continued vitality of our downtown areas.  They are also important partners with the Chamber in identifying and meeting the needs of businesses in the downtown areas.

Both Staunton and Waynesboro are participants in the Virginia Main Street Program. That program is part of the Virginia Department of Housing and Community Development (“DHCD”). Since 1985, the Virginia Main Street Program has been helping localities regain the economic vitality of downtown commercial districts.  The program is a comprehensive, incremental approach to revitalization built around each community’s unique heritage and attributes.  Adequate and predictable funding for the Virginia Main Street Program is a priority for WDDI and SDDA.  The Chamber strongly supports such funding.

ECONOMIC DEVELOPMENT
Position Statement: The creation of jobs and economic prosperity through expansion of existing businesses and the attraction of new business activity to the area is a priority for the Chamber.  Effective economic development includes removing unnecessary regulation, tax burdens and governmental interference to allow free enterprise to work.
There is a need for local governments to be able to make decisions which create the climate which is attractive for business and conducive to expanded business activity by both new and existing companies. The Chamber believes that an economic development program is crucial to success for our communities and businesses – and that such a program is best conceived and conducted through a cooperative and supportive partnership between the public sector and the business community.
 

RIGHT TO WORK
Position Statment: The Chamber would oppose any effort to weaken Virginia’s right-to-work laws. 
Virginia's economy is strong and more Virginians are employed than at any time in our history. Virginia's unemployment rate continues to run about 40 percent below the national average.  As one of 21 Right-to-Work states, we pride ourselves on a labor relations climate that is among the best in the nation.

The Chamber also opposes recent efforts at the federal level to change the process through which workers decide whether or not they want to be represented by a labor union.  Today’s process assures workers a secret ballot election overseen by the National Labor Relations Board (NLRB).   Union leaders are advocating legislation that would replace the secret ballot election with a “card check.”   This proposal exposes workers to possible intimidation or coercion by causing them to decide whether or not to join a union by signing a card in the presence of union organizers and supporters. Their long-protected right to make their decision privately and in secret -- free from public scrutiny, visible goading, or tacit manipulation -- would be stripped away.   We believe that the right to a secret ballot is a cornerstone of our democracy.   

Health Care Reform
Position Statement:  The Greater Augusta Regional Chamber of Commerce opposes “America’s Affordable Health Choices Act of 2009” (H.R. 3200) in its current form.

The small business surtax contained in the measure would devastate small businesses. This surtax would hit those who create jobs especially hard because more than six of every ten affected are small business owners who have lead America out of the last seven recessions and who create two out of every three jobs during a recovery.

In addition to the surtax, other problematic provisions in the bill include the public plan and a mandate to employers that requires them to offer a one-size-fits-all “minimum benefits package.” 

This legislation will not address the nation’s health cost explosion.  Instead, it will hike taxes steeply in an already precarious economic situation, will fail to lead to more affordable, accessible, quality health coverage, and will lead us toward a government-run health care plan.  In short, it will make a bad situation worse, at great costs to the nation in terms of jobs, taxes, and freedom.

A government-run plan would move us closer to a European model where there are fewer covered procedures, longer wait times for consultations and surgeries, and more government bureaucracy.

Further, employer-sponsored health coverage would be decimated by a government-run plan, and millions of Americans would be forced out of their existing plans. For the 8 out of 10 workers who are satisfied with their current insurance coverage, this would come as a real blow. We can and must do better than this.

Americans deserve a first-class health care system--one that delivers accessible, affordable, high-quality care. But we can't achieve this goal by attacking the bedrock of our current health care system--employer-sponsored health insurance. We should, instead, focus on positive reforms. 

Cap and Trade
Position Statement: The Greater Augusta Regional Chamber of Commerce recognizes the importance of reducing carbon (CO2) emissions, but realizes it is also a global problem with global consequences and global solutions. Any attempt to limit CO2 emissions must take a worldwide, economy-wide approach, and must include the U.S. and all other countries such as China, India and any other nation with a rapidly emerging economy and industrial base.

The United States Congress is currently considering legislation designed to reduce greenhouse gas emissions associated with global warming. This legislation, and all concepts being contemplated by Congress, will have a significant impact on Virginia’s customers – residential, commercial and industrial. The overall goal of any federal legislation should be long-term in nature with a clear time frame, and allow the economy and the industry the necessary time to adjust to the changes that lie ahead.

Virginia is a state with traditionally cost competitive energy prices. We cannot afford to close down all existing coal-fired generation in favor of expensive and technologically unproven generation resources. The Chamber continues to support a cap and trade approach that is fair, balanced and affordable for those who consume, and pay for, electricity. Such a program should include:

• a no-cost emission allocation system, NOT an auction process or carbon tax
• allowances allocated to all existing coal-fired facilities, or local distribution utilities, based on historic emission output and estimated emission allowances for new coal-fired units that are permitted and under construction prior to the enactment of any legislation
• a cap that places a declining limit on emissions over several years and allows utilities to meet the cap by reducing emissions or purchasing allowances from others
• a market-based approach with price signals to ensure cost effectiveness and flexibility to help spur research and technological innovation, investment, efficiency and conservation
• an appropriate legislative framework that focuses on new technology and energy conservation and that will help mitigate the burden of rising costs associated with a volatile economy and high fuel prices
• a price ceiling (safety valve) on CO2 allowances
• the unrestricted use of verifiable emission offsets

Proposed Stormwater Regulations for Virginia
Position Statement:  The Greater Augusta Regional Chamber of Commerce opposes the proposed Stormwater Regulations in its current form. These proposed regulations are not the way to accomplish the goal of cleaning the Chesapeake Bay.

To begin with, these regulations create rules that will needlessly encourage sprawl by favoring low instead of high density development, thereby creating greater rather than less strain on the Bay watershed and increasing the burden on our already cash-strapped transportation system.

Second, these proposed regulations take a remedy developed to solve Chesapeake Bay issues and apply it statewide. This is a problem in the first instance because the remedy may actually make matters worse for the Bay. But even if that is not so, there is no defensible regulatory justification for applying that remedy outside of the Bay watershed.

Clean water issues external to the Bay watershed need to be addressed on their own terms. The problems that these water systems may have are different than those confronting the Bay. It is far from clear how these proposed regulations solve problems outside the Bay watershed. Indeed, problems outside of the Bay watershed have not even been identified during this regulatory process. Before we can fashion a solution, we must first identify a problem. This process has failed that most basic test. Although these proposed regulations fail to achieve their environmental protection goals, they succeed all too well in killing jobs and threatening Virginia’s status as one of the world’s premier business locations. 

For Virginia to remain competitive, it is crucial that the business community be able to develop industrial and commercial sites and nearby affordable housing choices in a manner that does not impose unnecessary, burdensome regulation and taxation. In this way, we can continue to provide high paying jobs for Virginia families and make sure that those employees have homes to go to at night. It cannot be overstated that developing these sites in an effective, cost-efficient manner is a major factor in our ability to compete in the global marketplace. Unfortunately, the proposal before you could hinder these efforts by increasing the cost of developing needed commercial, industrial and residential sites across Virginia. 

Proposed Stormwater Regulations for the City of Staunton
Position Statement:  The Greater Augusta Regional Chamber of Commerce, representing over 1,100 businesses in the region, including Staunton, supports revenue systems that foster a favorable business climate and encourage economic development in our region.  It is very important to maintain a balance between tax growth, population growth and economic activity.

The Chamber appreciates the Staunton City Council’s efforts to begin addressing the issue of storm water runoff in the City of Staunton. The storm water management program as proposed by City Council is a step in the right direction. We also understand that the new program will mean higher utility fees for city residents and businesses. The question is “how much.”

The Chamber proposes that the city create a task force to study the storm water utility, along with other available alternatives. It is very important to the business community to carefully analyze the impact on the local economy, as well as potential alternatives to creating another layer of taxation.

This task force should consist of members of City Council, City of Staunton staff and members of the business community that have a vested interest in the final proposal. The Chamber, along with members of the business community is committed to being part of a well-reasoned and equitable solution and is available to participate in the dialogue.

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