Local Connection
September 2009

What's Happening in the Region

Don't forget to check out Quality of Life Project Updates at the end of this newsletter.

Now the Fun Begins- Federal Health Care Reform
As is often the case, federal issues can have a tremendous impact on your business. Early last week, Senator Max Baucus (D-Montana), chair of the Senate Finance Committee, released his framework for health care reform. Almost immediately after its release, members of the Finance Committee filed 564 amendments to the bill. Adding a little levity to the proceedings, Senator Orrin Hatch (R-Utah) introduced an amendment  (F7) that would exempt states beginning with the letter 'U' from the excise tax on expensive insurance plans. 
Legislative Summary: 
An overview of the Baucus package is here and recent modifications to the plan can be found here. An analysis of the Baucus plan by the Congressional Budget Office is here. Unlike previous versions of health care legislation from the House and another Senate committee, the Baucus plan does not contain a public option, nor a mandate on employers to provide insurance. However, the Baucus plan would require employers with more than 50 employees to pay a penalty if any of their workers receive government subsidies to purchase insurance. The penalty would be assessed as follows: 
$400 per worker (regardless of how many workers receive subsidies, or
Average cost of subsidies in a given year multiplied by the number of workers receiving subsidies. (which ever is lower)
Will the Baucus plan lead employers to drop coverage? An interesting answer can be found here.  
Status: 
The committee markup process began on Tuesday and a vote could come by next week (though early debate has been snarled by differences over procedural matters).  A profile of the members of the Senate Finance Committee is available here. Nearly every Republican on the committee has come out against the Baucus Plan with the exception of Olympia Snowe (R-Maine) who has expressed at least lukewarm support.   
Next Steps:  
The Senate Finance Committee is the last congressional panel to take up federal health care reform. If the Baucus package is approved, Senate leaders would have to reconcile it with a more liberal package previously passed by the Senate Health, Education, Labor, and Pensions Committee. House leaders would have to meld three different versions of health care reform from the Education and Labor Committee, the Ways and Means Committee, and the Energy and Commerce Committee. If both bodies are able to pass health care reform legislation, a House-Senate conference committee would attempt to reconcile the two bills before a final vote in both Chambers. 
Position: While the Chamber has not taken a position on these specific bills, the Chamber opposes legislation that would shift additional significant health care costs to businesses, especially small businesses, and has further concerns about the potential impact of a new, complicated regulatory scheme. 

Still Lurking - Employee Free Choice Act
At the AFL-CIO convention earlier this month, U.S. Labor Secretary Hilda Solis told union members that she will push the White House to make a strong case for the Employee Free Choice Act, still lingering in the Senate. See more here.  Likewise, Arlen Specter (D-Pennsylvania), also appearing at the convention, predicted that Congress would pass labor friendly legislation by the end of the year. Specter described a reconfigured bill crafted by Senate Democrats that would eliminate the controversial card check provision. In its place, however, would be a provision that would limit the amount of time between the union's filing of a petition of recognition and the certifying election, thus narrowing the timeframe that employers have to respond to the union organizing campaign. Another non-starter for the business community is the mandatory interest arbitration provision that would allow a government-appointed arbitrator to shape the terms of the union contract should the union and management be unable to reach a collective bargaining agreement. Specter has suggested that mandatory arbitration be replaced by "baseball style" arbitration where a mediator has to pick the last best offer from one side or the other. See more here and here. Despite Specter's optimism that this legislation will be passed by the end of the year, other Senate Democrats indicate that no deal has been brokered so far as moderate Democrats wait on the sidelines. See more here.  
Position: The Chamber opposes the Employee Free Choice Act. 

A Mixed Bag on Virginia's Economic Climate
Cloudy Skies Remain - The state's revenue numbers continued their decline with tax collections falling 6.6% in August. See more here. Earlier this month, Governor Kaine called for the elimination of 929 state jobs, the closing of three correctional facilities, and $194 million in cuts to state-supported colleges and universities to make up a $1.5 billion state budget shortfall Left unscathed (for the time being) was direct aid to local public schools. To review the Governor's FY 2010 Reduction Plan, click here. As Rex Bowman points out, the closure of the Botetourt Correctional Center will have an acute impact on the town of Troutville which relies on the facility for a significant amount of yearly revenue, not to mention the economic benefits the community receives from guards and administrators who patron local retailers. See more here. 
Rays of Sunshine - For the fourth year in a row, Forbes has ranked Virginia as the best state to do business. See more here. 
Governor Kaine also recently announced that the Commonwealth's unemployment rate has dropped for the second consecutive month to 6.5%. The national average remains over 9%. See more here. Governor Kaine also released the annual economic impact figures for tourism in Virginia for 2008. Based on figures from the U.S. Travel Association, tourism in Virginia generated $19.2 billion in revenue, supported 210, 620 jobs, and provided $1.28 billion in state and local tax revenue. See more here. 

House of Delegates Races Update

17th District - The first debate between Democrat Gwen Mason and Republican Bill Cleaveland is scheduled for September 29th at 7:00 PM at the Holiday Inn Tanglewood. For more information, click here. These candidates are vying to replace Delegate William Fralin who announced his retirement earlier this year. 

Follow the Money - Updated campaign finance reports for all of the candidates in our region can be found here. 

Town Hall Meeting on Passenger Rail

State Senator John Edwards plans to host a town hall meeting on "The Future of Passenger Rail Transportation in Western Virginia." Officials from the Virginia Department of Rail and Public Transportation will make a presentation and  take questions from the public. The meeting is scheduled for October 7th from 5:30 to 7:00 PM at the O. Winston Link Museum.

The 'One-Stop' Shop
Need a job or considering a career change? The new Roanoke Valley Workforce Center recently opened to great fan-fare with Governor Kaine stopping by for the ribbon-cutting ceremony. Uniting several agencies and organizations, the Center will allow users to file for unemployment benefits, perform job searches, and receive a host of other services under one roof. For more information, click here. 

Roanoke Regional Job Training Resources Wiki  
Another place to find job training opportunities in the Roanoke Region is on the Roanoke Regional Job Training Resources Wiki. Like Wikipedia, this site, initiated by the Chamber and its membership, is designed for users to constantly update and correct information. To see the full array of job training resources in the area, click here. Don't be afraid to add your own resources. 

Local Government Briefing

City of Roanoke 
Due to a potential tightening of state storm water regulations (see more here) and a backlog of drainage related problems, the City of Roanoke's engineering department has unveiled a proposal that would create a storm water utility. The utility would develop a rate and billing system to fund the repair of the City's aging infrastructure. Under the proposed plan, city residents would pay $3 per month while commercial properties would pay $3 per 1, 920 square feet or $67 per acre of impervious surface (including roofs) a month. The City's engineering department has estimated that these repairs will cost upwards of $60 million. For an overview of the City's proposal, click here. The next public meeting on the proposed storm water utility is scheduled for Wednesday, October 14th. (see more here) A City Council briefing on the storm water utility is tentatively scheduled for November 2nd. 

Meanwhile, the City of Roanoke has actively begun its hunt for a new City Manager to replace Darlene Burcham who plans to retire by March of next year. The City has hired Colin Baenziger to coordinate the search. Baenzinger was in Roanoke last week to meet with interested stakeholders and plans to return in mid-October as he develops a recruitment profile. A tentative timeframe would have a candidate in place in February. For more information, click here. The City has also created a blog for citizen input. 

Botetourt County

Following a public meeting on proposed access management improvements to exit 150 at the junction of I-81 and Route 220, VDOT officials are moving forward with additional design work. To view the six design proposal presented at the August meeting, click here. 

  Update on Quality of Life Projects

One of the Chamber's priorities is to monitor the development of quality of life projects in our region.  Enhancing our region's considerable amenities is vital to attracting and retaining young workers, fresh capital, and innovative thinking. Below is a list of recent developments:

Moving Forward

Following a second City Council vote on Monday, Roanoke is in position to begin a series of capital improvement projects including flood reductions projects on the Roanoke River, demolition of the National Guard Armory on Reserve Avenue, and improvements to City parks, bridges, curbs, gutters, and sidewalks. Approximately $1.2 million has also been set aside for engineering and design work on the proposed Elmwood Park Amphitheater.  Over $8 million has been designated for projects such as renovations to the Washington Park pool and improvements to the Countryside Golf Course. A public meeting on proposed improvements to Washington Park Pool is scheduled for September 24th at 7 PM on the mezzanine of the Roanoke Performing Arts Theater. For more information, click here. 

At the conclusion of Monday's afternoon session, members of City Council attended a 30 minute briefing on the proposed Fallon Park Recreational Center. Council members had requested that consultants, Chuck Musgrave of Barker Rinker Seagate Associates and Ken Ballard of Ballard, King, & Associates explore the feasibility of adding a competitive pool to the mix. According to the consultants, a competitive pool would significantly increase operational costs. In addition to being significantly less expensive, Musgrave and Ballard felt that the development of a recreational center with a leisure pool would serve wider community needs and was more congruent with results from an earlier community survey.  

Position: The Chamber supports the passage of the bond package for capital improvement projects in the City of Roanoke. 

Squaring up Their Plans

At their annual meeting earlier this month, officials from Center in the Square unveiled their plans for a $27 million renovation that will drastically change the configuration of one of Roanoke's cultural landmarks. A video 'fly-through' of the conceptual plan can be found here. According to the plans, the facade of the building would be changed to reflect its original appearance and the famed Roanoke Weiner Stand would be expanded. Plans also call for the construction of a rooftop garden, a larger atrium, and a 5,500 gallon coral aquarium.  The first phase of the renovation would begin on the Center's Church Avenue building in 2010 with the Campbell Avenue building to follow in 2011. 

For more information on Center in the Square. click here. 

The Future Explore Park-Plan B?

As the Virginia Recreational Facilities Authority patiently waits for developer Larry Vander Maten to give an indication on his future plans for the Explore Park property, a local consortium of stakeholders has been meeting to develop alternatives should Vander Maten decline to proceed with development. Earlier this year, Vander Maten unveiled his plans for Blue Ridge America, a grand tourist destination featuring  diverse mix of amenities including a three par golf course, conference center, an amphitheater, restaurants, gondola rides, rustic lodging and a hotel. A conceptual video for the project can be found here. Vander Maten has until June 13, 2010 to exercise his lease option on the property. However, he could potentially request another extension as he continues to look for financing.  See more here. 

Position: The Chamber supports the concept of the proposed development as a catalyst for economic development for the region. 

For more information on Explore Park, click here. 

A Park For Vic Thomas

On Monday, the Roanoke City Council voted unanimously to name a new park constructed on the former Hannah Court trailer park site for long-time champion of the outdoors, A. Victor "Vic" Thomas. A section of the Roanoke River Greenway will eventually run through this new park area, just past Roanoke's Memorial Bridge. See more here. 

A comprehensive list of these projects can be found on the Chamber's website.  This listing is updated on a daily basis and your input is welcome in the comments section. 

Do you have ideas on projects you'd like for us to follow? Send us an e-mail or write a comment on the Chamber's blog on local and state public policy issues. RSS feeds are available for both the quality of life projects page and the legislative blog. 

If you have questions about any of the blog features on the Chamber's Web site, please contact Tori Williams at twilliams@roanokechamber.org

Upcoming Events

State of the County Address, Tuesday, November 17th, 7:30 to 9:00 AM, Green Ridge Recreation Center. 

For a list of more Chamber events, click here and to access the Chamber's Community Calendar, click here.

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