Delegate Jim Scott's Richmond Report

Each year the National Conference of State Legislatures (NCSL) convenes its annual meeting in a bi-partisan spirit of collaboration and idea-sharing.

This week I write from sunny Salt Lake City where the three-day conference takes place this year.

Today we listened to experts in various policy fields and received updates on important state and Federal actions. Partisan politics, while not forgotten, takes a back seat to deliberation about common problems such as unfunded Federal mandates, state approaches to taxation of internet sales and inadequate transportation funding.

We heard a stimulating discussion on the national economy from two articulate experts: David Wyss, Chief Economist of Standard and Poor’s, and John Castellani, President of the Business Roundtable. Castellani is a former Fairfax County resident. The Roundtable is composed of the Chief Executive Officers (CEO’s) of nation’s largest businesses.

Both Wyss and Castellani expressed considerable optimism about the immediate U.S. economic outlook, but described storm clouds that should not be ignored.

Wyss underscored the importance of continuing to increase trade as a key to American economic prosperity. He called for prompt steps to reduce the U.S. budget deficits and the international balance of payments shortfalls. Both he and Castellani emphasized the importance of education and re-training, with increasing emphasis on high standards and accountability. And they both implied that some form of heath care treatment rationing was necessary.

Castellani added that health care costs and litigation expenses threatened business and national prosperity. Both supported tax reform. They advocated moving away from taxes on production to the European model of taxes on consumption.

Wyss challenged Castellani’s contention that tort reform is a major cause of health care cost increases. He pointed out that U.S. health care administrative costs are higher and health outcomes lower than European countries who have a “single-payer” system. In short, high administrative costs caused by a plethora of administrative systems (i.e., payers –read “insurance companies”) are at least as responsible for high costs as malpractice law suits.

The value of tort reform prompted a spirited exchange among the legislators present, and the panelists. A frustrated Michigan Senator explained that, several years ago, his state passed the most comprehensive package of tort reform legislation in the nation. The legislature was told that the package would solve the problem of rising insurance costs. Now, with malpractice premiums skyrocketing again in Michigan, they are told they must do more.

Hearing this, one Georgia legislator pointed out that her colleagues were being told by tort reform advocates that, if they did what Michigan had done earlier, the Georgia crisis would be solved.

In the evening , the delegates to the convention completed a stimulating day by listening to a glorious performance by the renowned Mormon Tabernacle Choir, including a moving rendition of its Grammy-Award winning version of the Battle Hymn of the Republic.

Jerry Hopkins appointed to key state housing agency

Governor Warner recently appointed former Falls Church resident Jerry Hopkins (Wren’s Way) to the seven-member Board of the Virginia Housing Development Authority. Hopkins joins Arlington County Board member Jay Fisette. The mission of VHDA is to provide financing to promote affordable housing. As one of the most prestigious of state housing finance agencies,

VHDA has had gained national recognition for its creative and conservative financing strategies. However, approximately 4 years ago the Virginia Legislative Audit Review Commission (JLARC) published a highly critical analysis of its commitment to housing for lowest income people.

Not long after the JLARC report was issued, Susan Dewey, former state Treasurer, was appointed executive director. She has undertaken a very impressive effort to expand VHDA’s outreach to fund more housing for minority and low-income residents. With Jay and Jerry’s leadership and support, along with other Warner appointees, including Doug Fahl, a well-respected Northern Virginia businessman, I expect Ms. Dewey’s efforts will be successful. Clearly, Falls Church’s efforts to promote affordable housing will have key support in Richmond.