Virginia Gov. Bob McDonnell proposed Monday to raise speed limits on rural stretches of highway, cut red tape for starting a small business and pump money into promoting the state’s tourism, film and wine industries.
In his first State of the Commonwealth speech, two days after taking office, McDonnell rolled out a package of reforms meant to spur job growth and economic development in the hope of leading Virginia out of its economic slump. The new Republican governor offered comparatively little detail, however, on how he will confront a $4 billion budget shortfall brought on by that downturn.
He reaffirmed his vow to reject a roughly $2 billion tax increase proposed in his predecessor’s two-year budget.
“The budget that I have inherited is dire, I believe it is unbalanced,” he said, adding that Tim Kaine’s tax increase proposals “have been generally rejected already by both houses and both parties.”
McDonnell asked legislators to expand tax credits for job-creating employers and ease the process of starting a new business venture. Startups, he said, should be able to have their state licensing and approvals completed in 48 hours or less.
He proposed to pump money into the funds helping to attract tourists, corporations looking to relocate and filmmakers. McDonnell will seek to direct revenue from taxes on wine toward promoting the state’s wine industry.
The Republican executive also wants to notch up the speed limit to 70 miles per hour along rural parts of Interstates 95, 64, 77 and 81, following the legislature’s vote in 2006 to raise the limit on Interstate 85.
Senate Democratic leaders, in a response, said McDonnell’s blanket rejection of Kaine’s proposed tax increases will force the legislature to make an additional $2 billion in spending cuts, and sought to thrust ownership of those new and painful reductions onto the new Republican governor.
“McDonnell’s cuts will mean the elimination of more critical services and thousands of layoffs to public employees, including our teachers and public safety professionals,” said Senate Majority Leader Richard “Dick” Saslaw, D-Springfield.
