[Congressional Record Volume 143, Number 70 (Friday, May 23, 1997)]
[Senate]
[Pages S5082-S5084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             VIRGINIA CHAMBER OF COMMERCE BI-ANNUAL DINNER

  Mr. WARNER. Mr. President, the Congress, being an integral part of 
the greater metropolitan Washington area, will soon enact legislation 
impacting this area, from law enforcement to economic growth. Through 
my years in the Senate I have worked with community leaders from 
Virginia as well as Maryland and the District of Columbia.
  John ``Till'' Hazel, Jr., is one with whom I have had a long personal 
friendship--as did our fathers, both medical doctors.
  But transcending friendship, we have had our full measure of 
agreements, and disagreements, on issues affecting this area.
  This month the State of Virginia Chamber of Commerce honored ``Till'' 
Hazel by inviting him to give his report on the State of the Union of 
this greater metropolitan area.
  I was present as the audience received with great respect his strong, 
outspoken, message.
  Since it bears on our present and future responsibility as an 
integral part, and voice, of this area, I ask unanimous consent that 
his statement be printed in the Congressional Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

      Remarks by John T. Hazel, Jr., Virginia Chamber of Commerce 
                   Congressional Dinner, May 8, 1997

       It is a personal privilege and great honor to address this 
     distinguished gathering of political and business leaders 
     and, particularly, to share with you observations and 
     concerns regarding Virginia's position in the national and 
     international economy as we hurtle toward the 21st century.
       Virginians are a proud people, we have a wonderful 
     geographic location, and a history and tradition of 
     conservative and prudent leadership commitment to our 
     citizens. However, that tradition cannot allow complacency 
     which is at times the excuse for lack of vision and often the 
     enemy of prosperity.
       My focus today is upon the future of Virginia and what we 
     must do to assure a high level of prosperity in a knowledge 
     driven economy. Change, at the pace we are experiencing it, 
     challenges us all with deciding what to keep and what to 
     discard. We face great opportunities if we choose wisely and 
     great hazards if we do not.
       Reference to history and tradition is for the purpose of 
     perspective. We cannot prosper if we live in the past. It is 
     the future to which we must look. No day is complete without 
     reference in print or electronic media of economic 
     competition on a global basis. No state nor locality is 
     isolated from economic competition. We must develop a 
     realistic data base and an exciting vision for the future 
     with an emphasis upon growth and prosperity. Current data is 
     not encouraging.
       Despite vigorous efforts by Governor Allen and development 
     agencies, net job growth in the first six years of the 90s 
     has been only half of net job growth in the 80s. Projections 
     regarding the future do not suggest a return to the robust 
     job growth of the 80s without vigorous new efforts. Indeed, 
     if the technology sector largely based in Northern Virginia 
     is removed from the data, job growth in Virginia thus far in 
     the 90s is zero or perhaps negative.
       The lack of robust job growth is particularly troubling 
     since the population of Virginia has increased by more than 
     one million people since 1980. Measured against the national 
     average, Virginia is no better than average in the United 
     States in job growth and, indeed, for the past several years 
     has been below the national average--ranking 33rd in the 
     nation. Personal income growth has tracked job growth causing 
     the income of the average Virginia family to be only 
     approximately equal to the national average with personal 
     income growth ranking only 29th in the nation.
       EDS, a major national corporation with heavy employment in 
     Virginia, represents that lack of skilled workers has 
     affected its employment base and economic health. There are 
     many other similar examples. Eighteen thousand technology-
     based jobs are unfilled in Virginia while employment in 
     absolute terms is only at or below the national average.
       Virginia no longer competes for job growth simply with its 
     sister states. A recent conversation with the CEO of a 
     concern with global operations suggests that Ph.Ds in Pacific 
     Rim countries can be found for a lifetime training cost of 
     $100,000 versus $1,000,000 in the United States, and 
     engineers can be hired who do very satisfactory work which is 
     then exported to the United States from Bangladesh at 20% of 
     the cost of an engineer in the United States.
       Certainly, we as Virginians do and must aspire to be the 
     best. It is abundantly clear that we are barely average in 
     the critical areas of job growth and individual income. We, 
     as business and political leaders, cannot fail to lead our 
     citizens to achieve the very best.
       Where must we look to correct this mediocre or less than 
     mediocre performance? The answer is investment and 
     reinvestment in essential infrastructure. Education, 
     transportation and our financial base.

[[Page S5083]]

       Education today is best described as K-L. L does not refer 
     to law school but to K thru Life. To compete successfully at 
     the national and international level, education must never 
     end. Training and retraining are the keys to our economic 
     future. With 18,000 technology jobs in Virginia unfilled 
     because of lack of trained employees, the problem is 
     immediate, clear and compelling.
       But when we review the commitment of Virginia to education, 
     we find that legislative studies have identified a $6.2 
     billion immediate need to enhance local schools. A need 
     without suggested solution. Virginia ranks only 43rd in 
     higher education support, and simply to equal the southern 
     states average will require a commitment of an additional 
     $200 million per year indefinitely for operating requirements 
     only. Virginia had achieved in the 80s a slow and steady pace 
     toward a modest level of quality and funding in its 
     institutions of higher education. Unfortunately, the 
     depression of the early 90s and the requirements of a 
     balanced budget caused the political system to withdraw in 
     excess of $100 million per year from higher education with an 
     invitation to the individual institutions to increase tuition 
     in lieu of an increase in state taxes. This was done and the 
     budget successfully balanced from the pocketbook of students 
     and their parents without an increase in taxes. The 
     predictable result in Virginia public tuition is among the 
     very highest in the nation.
       As the economic crisis ended, funding for higher education 
     in Virginia continued to be restricted. The average 
     investment per thousand dollars of individual income dropped 
     from $12 in 1979 to $6.76 today--a drop of 44% in funding. 
     This decrease means that Virginia's record for financial 
     support for higher education is one of the worst in the 
     nation. The results are evident in every direction. The belt 
     tightening of the universities, despite serious 
     restructuring efforts, has reached harmful proportions.
       The president of one of Virginia's leading institutions 
     recently testified that in offering faculty positions to 
     sustain excellence in a core discipline, 11 of 12 offers were 
     rejected on the basis of inadequate compensation. The same is 
     not true with priorities elsewhere. Indeed, we seem to have 
     no limit to what we are willing to pay for athletic 
     excellence, but payment for academic excellence is demeaned 
     and ignored.
       Technology is much talked about and little funded.
       The community college system--a cornerstone of work force 
     training and retraining--has been forced to reduce worker 
     access and increase tuition for programs which are 
     fundamental to preparation for skilled jobs.
       In recent years, capital improvements have been paid for 
     largely by debt. Now debt increases are frozen to sustain 
     Virginia's bond rating and no provision made for critical 
     capital improvements.
       In Virginia, a state with a proud heritage from the days of 
     the Founding Fathers, support of higher education now ranks 
     at the low end of the nation. Thomas Jefferson believed that 
     higher education should be available ``within a day's ride of 
     all Virginians'' and founded a university of which we are all 
     proud, but today, with the demand for quality education 
     perhaps more critical to the prosperity of Virginians than 
     ever before, political and business leadership refuses to 
     recognize effectively the need. As the economy of Virginia 
     converts from mining, manufacturing and agriculture, the 
     principal asset of the citizens of Virginia is their 
     intellectual power and skill. Intellectual skill must be 
     enhanced and nurtured. As Governors Godwin, Holton and 
     Baliles made clear in their landmark statement of January 
     1995:
       ``Now is the time to make critical key investments in 
     Virginia's future. We believe the place to start is by 
     reaffirming public support for our unique system of higher 
     education. . . .''
       The transportation infrastructure of Virginia continues to 
     service more citizens with vastly more miles of travel than 
     ever before without recognition of additional funding 
     requirements. As gas mileage increases, highway revenues by 
     mile decrease.
       Principal deficiencies impact the entire state. Hampton 
     Roads has identified approximately $20 billion in 
     transportation improvements necessary. Bridges and tunnels 
     are very expensive, but the need cannot be denied.
       Virginia requires an upgrade of I-81 now carrying three 
     times the truck traffic for which it was designed and without 
     any financial plan for improvement. Roanoke and Richmond have 
     demonstrated needs of several billion dollars each if their 
     commerce is to continue to move freely.
       Northern Virginia shares with the Washington region 
     national recognition as the second worst gridlock in the 
     nation. There are clearly demonstrated multi-billion dollar 
     requirements. The total of state transportation requirements 
     over the next twenty years is an absolute minimum of $35 
     billion and could range upward to over $50 billion by 
     Virginia Department of Highway estimates. Despite these 
     needs, the Highway Department can only identify $12 billion 
     of likely available funds and that number is seriously 
     suspect as maintenance requirements erode construction funds.
       Traffic gridlock is frequently equaled only by political 
     gridlock in resolving problems. Within a few miles of this 
     hall, we endure an infamous example of political gridlock. In 
     1945, the US Army Corps of Engineers constructed a dozen 
     bridges across the Rhine River under hostile fire. The 
     political system at Federal and State levels has been 
     gridlocked in discussions regarding replacement of the 
     Woodrow Wilson bridge for ten years already and is still 
     without an action plan for construction. Some years ago the 
     life of the bridge was determined to be 9 years. By my 
     calculations we have 7 years, 4 months and 20 minutes before 
     it collapses into the River. But have no fear, further down 
     the River even the downsized Army Corps of Engineers at Ft. 
     Belvoir should be able to erect a pontoon crossing to save us 
     from the fruits of political gridlock.
       Finally, in reviewing the infrastructure in Virginia, we 
     must look to the fiscal situation, and it is grim. 
     Philosophically, Virginia was a few short years ago a no debt 
     state--one of the few in the nation. How different today. The 
     fastest growing item in the Virginia budget is debt service.
       During the 90s to balance the budget, a series of emergency 
     measures were utilized. There was a pledge to citizens who 
     voted for the lottery that proceeds would be only for capital 
     construction. Yet now lottery proceeds exceeding $300 million 
     annually are a vital part of the general fund despite that 
     commitment. In addition to the transfer of lottery funds to 
     the general fund, a series of single shot annual measures 
     have been utilized to balance the budget. The most onerous 
     being increased tuition.
       Perhaps the most dramatic example of the current problem 
     was the recent discussion of what new lottery game could be 
     adopted to provide additional revenue for the general fund 
     without encouraging addictive gambling. I never knew until 
     the General Assembly discussion that some lottery games were 
     addictive and some were not. In any event, a new lottery game 
     and the fortuitous settlement of the litigation allowed the 
     state to eke out a balanced budget last Session.
       Virginia has a serious structural deficit in state 
     finances. General fund revenues do not cover expenses. It is 
     politically convenient to ignore the deficit, and it is 
     policy apparently on a non-partisan basis to continue to 
     promise no tax increases and talk tax cuts without 
     reference to financing commitments, expenditures, income 
     and investment in our future.
       Where is Virginia as we look forward to the future--a 
     future which should be founded upon optimism, enthusiasm and 
     strength? The people of Virginia are intelligent, committed, 
     and have high level of work ethic an integrity. Mr. 
     Jefferson, as did other Founding Fathers, believed that an 
     informed public was fundamental to prosperity, health and 
     enjoyment in the democratic system.
       Unfortunately, the difficulty in today's world is in 
     assuring an informed public. Virginians have indicated in 
     overwhelming numbers at all levels an awareness that higher 
     education is the key to individual prosperity and a desire to 
     have a transportation system that functions. Yet we are, at 
     the political level, unwilling to make it clear what the 
     needs are and how they will be paid for. Business has failed 
     to demand political accountability and politicians have 
     failed to inform.
       We are in the early stages of yet another political 
     campaign in which the prevailing political wisdom apparently 
     is directed at ignoring needs and, thus, the costs.
       In higher education, there is a determined effort to reduce 
     costs by reducing the number of students to be educated which 
     is simply to deny access to education to a significant number 
     of citizens. There are those who sponsor denying education to 
     those who are ``below average''--a shocking thought when 
     contemplated seriously. There is a suggestion that faculties 
     are commodities and quality in a faculty is not related to 
     quality in the educational product.
       There is a complete denial essentially by silence of the 
     urgent and compelling needs of transportation.
       Business leadership must demand that candidates for any 
     office be required to address in specifics what programs they 
     intend to dismantle, and what new commitments they are 
     unwilling to make. Thus far, we have been treated to denial. 
     The people of Virginia deserve better. We need leadership 
     which will understand the need for reinvestment and new 
     investment in Virginia's future--who will understand that we 
     are part of an international economy in a knowledge driven 
     world of technology and that the only competitive edge we 
     have is our infrastructure.
       While my comments have focused principally on higher 
     education, transportation and fiscal needs which are the 
     fundamentals, if other areas of the infrastructure are not 
     enhanced the capability of Virginia to compete is further 
     weakened.
       Without investment and reinvestment, we cannot expect to be 
     competitive as we enter the next century. No business leader 
     can fail to invest in the future. Why should our great state 
     be denied investment in the future? We cannot allow Virginia 
     to be weakened at this time of intense global competition by 
     denial of problems and refusal to debate the issues because 
     the solutions may be politically uncomfortable. Virginia has 
     the capacity for investment. We lack the political will.
       The citizens of Virginia are entitled to be informed and to 
     decide whether we should settle for mediocrity in job growth, 
     in education,in transportation and in our financial base. We 
     cannot accept a political leadership which denies Virginians 
     the tools necessary for future prosperity.
       Our goals must be a system of higher education among the 
     best in the country. Not a quibble over 43rd or 44th. A K-12 
     system which prepares graduates for accelerated

[[Page S5084]]

     learning and successful participation in the workplace, a 
     first class system of transportation, and a financial 
     structure with bi-partisan support that addresses with 
     political honesty funding requirements.
       Virginia must create a competitive position in global 
     markets in the new century with an unrestricted commitment to 
     excellence in providing our citizens with the tools of 
     prosperity in a world of intense competition.

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