Dear Friends, Virginians, citizens of Fairfax:

It's the economy, stupid.
 
This inartful yet direct phrase summed up a Presidential campaign in 1992 and may well do it again in 2008.
 
Everywhere, there is a cutback in borrowing and spending, the twin factors which drove our economy in the past few years.  That has led to sharp market declines.  In Northern Virginia, the average home sale is down $150,000 from the peak in 2005.  
 
It is no surprise that Virginia's revenues are dropping.  The Governor's report to the money committees last month predicted major shortfalls based on declining revenue, particularly in the real estate sector.  In response, he has asked each state agency to reduce its spending between 5-15% for the coming fiscal year.
 
And that was before the Wall Street crisis truly hit.  Since a large portion of Virginia's income tax revenue comes from capital gains, a major setback to the stock market (or housing market) directly impacts our state budget.  And not in a good way.  
 
In November, the Senate members will meet in Fredericksburg to discuss Virginia's financial position and the parameters of a revised state budget.  In the meantime, it is incumbent on legislators to evaluate ways to save money over the next few years.  We can't just freeze salaries or eliminate projects.  We need to actually cut costs.  
 
One obvious candidate is Virginia's Department of Corrections.  Upon the abolition of parole in 1994, Virginia went on a prison-building spree which continues to this day.  For example, Virginia currently spends $50 million in capital costs annually to build new prisons.  Once it's built, each facility then incurs an annual operating cost up to $10 million.  We cannot afford this.
 
In addition to corrections, we also need to look at reducing overall infrastructure cost.  Each state building is an opportunity to save money through integrated management systems and better energy efficiency.  Fuel costs are an enormous burden on the state.  We have been in the lower tier of states in energy efficiency; that must change in 2009.  
 
These are some ideas.  They are not sacrosanct.  Some may work and some may not.  But we have to begin thinking of new solutions in Fairfax and Richmond to save money.  We can't keep stumbling along on our current course.
 
JCP Notes:  Congratulations to Jenn Robinson who joined our team as a Community Relations Coordinator.  As her first act, Jenn put together our "unofficial" State Sentinel annual newsletter.  To cut costs, we posted it on-line for you to print out, although we will be mailing a few select copies via the mail.  Please feel free to distribute to a friend.
 
On Tuesday, September 30th, the City of Fairfax Democratic Committee is hosting a "meet and greet" for Gerry Connolly. I hope you will join me there to meet the next Congressman from the 11th District.
 
In the meantime, if you have any questions or comments, please feel free to contact me or my Chief of Staff Kathy Neilson at 703-349-3361 or www.fairfaxsenator.com. You can also follow the conversation on my blog www.oxroadsouth.com.

Let us know how we can represent you better.

Sincerely,