April 4, 2003

The Honorable Elaine McConnell
Fairfax County Board of Supervisors
Springfield Governmental Center
6140 Rolling Road
Springfield, VA 22152

Dear Supervisor McConnell:

In the face of the challenging economic times facing Fairfax County businesses and the challenging fiscal times facing County public officials, the members of the Northern Virginia Roundtable urges the Board to appropriate the funds needed to enable the Fairfax County Economic Authority (EDA) to successfully implement a marketing and prospect development campaign for FY 2004. The Roundtable is comprised of nearly 100 business leaders in a variety of industries who are focused on issues of economic development, infrastructure and quality of life in our region.

First, we urge you to endorse a base funding level of $6.7 million for the EDA as proposed in the advertised FY 2004 budget. This Board and its predecessors have always recognized the value of the EDA’s work to expand and diversify the county’s economic base. The goal to expand the commercial base was accomplished and has helped fund the excellent services – schools, parks, public safety, water and sewer facilities – that residents and businesses enjoy today. Unfortunately one can never rest on past laurels in the economic development arena.

Second, we ask you to appropriate an additional $600,000 to the EDA to help fund needed marketing and prospect development activities during the current economic downtown. It is imperative that Fairfax County continue to reach relocation and site plan decision-makers. Building a strong group of prospects will once again position the County to secure expansion or relocation commitments once the economy rebounds. Clearly this was the experience after the 1990-1991 recession.

The need to put the County in the strongest possible position to capitalize on an economic rebound can be seen in the changes to the make-up of revenues. Disturbing trends have already been noted:

• Values of nonresidential real estate have declined for the first time since 1996. In a county where 59% of all revenues are raised through the real property tax this is cause for concern.
• The office vacancy rate continues to rise.
• Efforts to get the state to provide flexibility on how and from what sources local government may raise revenues have been unsuccessful.

The Northern Virginia Roundtable asks that you add $600,000 to the budget of the Fairfax County Economic Development Authority and support a strong economic development expansion program. The Roundtable also pledges to continue to work with you to reform Virginia’s tax structure to bring greater flexibility and equity to local government revenue sources. As you know, in February 2002 the Roundtable was the first major business group to get out front in calling for comprehensive revenue restructuring to address, among other things, the need to provide local governments, especially counties, with additional tools to deliver and pay for critical services.

Thanks again for your continued support of the EDA. We hope you can once again meet the challenge.

Sincerely,

James W. Dyke, Jr.                     Doug Poretz
Chairman                                     Vice Chairman

cc: Harry Doyle, Chairman
Fairfax County Economic Development Authority

March 26, 2003

RE: Governor’s Budget Amendment #12 – Caps on increases to higher education tuition

Dear Delegate

The membership of the Northern Virginia Roundtable asks that you support Governor Warner’s budget amendment #12, which provides limited flexibility to Virginia’s institutions of higher learning to provide quality instruction and facilities to the growing student population. The Roundtable is an organization of nearly 100 business leaders representing the diverse economy of Virginia and concerned about economic development, education and infrastructure issues.

Budget amendment #12 provides an opportunity for the Governor and legislative leaders to revisit the matter of tuition caps if further reductions in state appropriations are required before the end of the biennium.

Although the Roundtable supports budget amendment #12 we want to clearly state that we believe artificial tuition caps are an unwise and proven failed long-term strategy for funding higher education institutions in the Commonwealth. In the past artificial limits on tuition did not prove to be a successful long-term strategy for protecting the quality of Virginia’s well-regarded institutions of higher learning.

• Virginia’s colleges and universities need the flexibility to meet growing student and infrastructure needs.
• Boards of Visitors and institution leadership are in a position to know what the market will bear and need flexibility, power – with accountability – to manage their institutions wisely.

Few, if any, institutions recovered 100% of state funding reductions with the 2002 tuition increases.

• Even with the increases of 2002, Virginia’s colleges and universities remain a good buy for the education dollar. As the parent of three students enrolled in Virginia public universities, I can attest to that fact.
• Limiting tuition increases for in-state students will cause institutions to consider enrolling a greater number of out-of-state students. They will have no choice if State support for higher education continues to decline since out-of-state tuition levels already help underwrite the cost of educating Virginia residents.
• Students and parents have repeatedly expressed their willingness to pay higher tuition in order to maintain the quality and availability of educational opportunities.

It is unfair for the Commonwealth to not meet its funding obligations and then restrict institutions’ ability to meet their needs by taking steps to secure additional revenue to maintain the quality of their institutions.

The Northern Virginia Roundtable stands ready to work with you to find sustainable solutions to higher education funding and financial aid needs and the means of making life long learning available to all Virginians. We will be contacting you prior to the 2004 General Assembly session to share some specific ideas to frame a meaningful solution to the Commonwealth’s current fiscal and service delivery needs.

Feel free to contact me directly at (703) 712-5449 or jdyke@mcguirewoods.com.

Sincerely,

James W. Dyke, Jr.
Chairman

cc: The Honorable Mark R. Warner
Governor, Commonwealth of Virginia