Dear Friends, Virginians, citizens of Fairfax:

Last week the State Senate gathered in Portsmouth to review the state’s finances and plan for the next "biennium" (or two-year) budget.

It’s a tough time to be a state lawmaker. In Virginia, all the standard economic markers point the same direction as my hood ornament heading down Rte 95.

However, I won‘t dwell on negative, which includes a contracting economy, increased Medicaid costs and a structural budget gap of nearly $4 billion through 2012. Because we already know about that.

Instead, in honor of Thanksgiving, I’m going to focus on the positive in Virginia.

First of all, our Virginia unemployment is 6.2%, which is well below the national average. We can thank our strong relationship with the U.S. military and Federal government for that benefit.

Second, despite the failing economy, violent crime in Virginia has remained level. As a result, we have stopped building new state prisons and actually decreased spending on corrections by 5% over the past two years. That's a positive.

Third, the collapse in the real estate market has at least one positive spin-off in northern Virginia. As a result of our declining assessments, the Commonwealth will increase its relative share for K-12 education in Fairfax County. For those of us in Fairfax who have long opposed the state formulas, this is welcome relief.

Fourth, the statewide cost of educating students is holding steady for the first time in many years. The cost of utilities for our public schools is even predicted to decrease, due to declining natural gas prices. Costs are coming back into line with reality.

Finally, we continue to maintain a “AAA” bond rating in Virginia. This means we can save money by refinancing our current state debt at the lowest possible rates. That saves taxpayer money.

What’s the point?

We will down-size our state government to fit the modern economic reality in 2010. However, in the new lower-cost environment, there are opportunities for government and business to rebuild, reinvent and come out on top. Even in the worst of years, we still have much of which to be thankful.

JCP Notes: On Friday, January 8th, I am holding my annual “Business Leaders Breakfast” at the Crown Plaza in Tysons Corner. This event is open to the public and I welcome your input. You can register on-line here. Also please contact Jenn Robinson at jenn@fairfaxsenator.com if you'd like to be a breakfast sponsor. The sponsorships benefit my re-election fund.

The session itself begins on January 13th. Until that time, we are available to discuss the upcoming session and any other issues of concern. Please feel free to contact us at 703-349-3361 or www.fairfaxsenator.com.

Let us know how we can represent you better.

Sincerely,

Chap Petersen