BRISTOL, Va. Republican Bob McDonnell knows he's got a long road to travel starting Jan. 16 the day he takes the oath of office and becomes the state's 71st governor.
State government must first address a projected $3.5 billion budget shortfall, the governor-elect said here Saturday as he met with supporters during an afternoon rally at the Holiday Inn.
The commonwealth also needs to find new ways to create jobs in the region during a down economy by attracting new businesses and capitalizing on what's already here, he said. And, during a time when many families are struggling, both of these goals must be achieved without raising taxes, he said.
"We've got some challenges," McDonnell said. "I'm going to do a lot of things that you're going to like and I'm going to do a lot of things that you don't like."
McDonnell will succeed Gov. Tim Kaine next month after he got 59 percent of the statewide vote in Virginia's Nov. 3 election. Kaine, a Democrat, is leaving office because the state's governors can only serve one consecutive term.
During Saturday's rally, McDonnell touched on his victory when he thanked the region's voters for their support. The former attorney general got 66 percent of the vote in Southwest Virginia's 9th District and 72 percent of the vote in Bristol.
But he quickly dispensed with these pleasantries and talked about the one issue that promises to dominate his first year in office.
"We've got some tough budget times right now," he said, joking that unlike the federal government the state cannot simply print money to make its budget shortfalls go away.
In lieu of raising taxes, McDonnell said, the state government's only option to address the shortfall is to reduce spending. He said his top priority will be to pare down government so that no two programs achieve the same purpose.
He mentioned turning some state-controlled functions, such as Virginia's ABC stores that sell liquor and other alcohol, over to the private sector as another option. But while these cuts would save the state money, he said, they would also carry a heavy cost.
"There may be some realignments that lead to a reduction in state jobs," McDonnell said, adding that he may have to repeat a series of layoffs and state employee furloughs implemented by Kaine.
"There aren't any easy ways to cut $3 billion out of the budget," he said.
Despite the impending fiscal crunch, McDonnell said the state's economic development functions should receive new investment so Virginia can remain competitive with neighboring states like North Carolina and Tennessee. He said the state government could help Southwest Virginia's economy specifically by making new investments in coal, energy, transportation and tourism. Delegate-elect Will Morefield, R-Tazewell, echoed this call for more investment in the region's energy sector.
"We've got unlimited resources here," said Morefield, who defeated Delegate Dan Bowling on Nov. 3 and is the first Republican to represent the 3rd district since 1951.
Morefield said the state should look at putting a natural gas power plant in Southwest Virginia to help create new jobs and reduce the region's utility costs and rate increases. He also said the region's lawmakers should be open to alternative forms of energy like wind power and do whatever they can to attract windmill factories to this corner of the state. But he said he also knows the budget will dominate the upcoming legislative session.
Delegate Terry Kilgore, R-Gate City, said, "It's going to be an interesting session. Basically, a lot of what we're going to be doing is trying to protect Southwest Virginia from a lot of reductions [in state spending] that are going to occur."
Kilgore said a few issues may crop up in the budget, including crafting the state's response to certain federal polices like health care reform and cap-and-trade legislation.
On a more local note, he said, the General Assembly will look at limiting the amount and severity of utility rate increases, auditing natural gas royalties in escrow, and Bristol Virginia Utilities' push to become independent from the city government.
