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Report from Wakefield:

Lt. Gov. Bill Bolling might be stuck in Italy because of all the ash in the skies but he's still got the most popular draft beer and hot dog tent.

This week has been a productive one for economic development in Virginia.

On Wednesday, Governor McDonnell traveled to Lynchburg to personally congratulate The Babcock & Wilcox Company and cut the ribbon on its new engineering facility. The 50,000-square-foot building will house an engineering and design team of up to 200 that is working on the new B&W mPower™ nuclear reactor.

It will be a zero-emission operation, contributing to the reduction of an estimated 57 million metric tons of CO2 during the lifetime of each reactor. In addition, the reactor’s air-cooled condenser, underground containment and small site footprint will help minimize environmental impact.

B&W’s continued innovation in the area of clean energy technologies and its efforts to reduce power plant emissions remain unprecedented in the industry.  The company’s success has helped to put Virginia on the map as a center for nuclear technology.

On Thursday, Lt. Governor Bill Bolling, wearing his Chief Jobs Officer hat, joined business and government officials in King William County to break ground on a 12-mile natural gas pipeline project along U.S. Route 360.

The pipeline will start at the end of the existing trunk line in Hanover County at the intersection of U.S. Route 360 and Walnut Grove Road. It will turn off of Rt. 360 at Mount Pleasant Road and end at the Nestlé Purina facility in Fontainebleu Industrial Park. Construction will begin in May and be completed by the end of the year.

The new infrastructure will allow Virginia Natural Gas to serve the County for the first time and expand Nestlé Purina’s ability to reduce emissions and improve the plant’s operating efficiency.

While neither announcement touted a new company’s entrance into Virginia, both events represent activity that is vital to the Commonwealth’s economic development success. The importance of expansions of existing Virginia companies cannot be underestimated. Their growth and success sends a powerful message to other corporate decision-makers that Virginia is a great place to do business. Last year, about 12,000 of the total 17,000 jobs announced in Virginia were created by existing Virginia companies. About 83 percent of the investment in Virginia in 2009 came from expansion projects.

And whether the project is an expansion or a new company locating in the Commonwealth, appropriate infrastructure is a must. Many industrial projects require natural gas to even consider a location during the site selection process. In the past, King William County was not considered for these projects because this kind of infrastructure was not in place. The new gas pipeline will open doors for the County to compete for a variety of projects for the first time.

Lt. Gov. Bill Bolling recently penned this commentary on the budget challenges facing Virginia:

The biggest challenge facing the General Assembly during this year’s legislative session is the adoption of a new state budget for the 2010-2012 biennium.

In December, outgoing Governor Tim Kaine introduced a budget that sought to close a projected $4B shortfall through a combination of $2B in budget cuts and $2B in tax increases. However, it is apparent that Governor Kaine’s tax increase proposals will not survive legislative scrutiny.

During his first speech to the General Assembly, Governor Bob McDonnell made clear that he will not support a budget that includes higher taxes. We simply do not believe that it is appropriate to raise taxes on families and businesses in the midst of the worst recession in 60 years.

Likewise, the General Assembly does not appear to be prepared to support high taxes. In the House of Delegates, Governor Kaine’s tax increase proposals have already been rejected by a vote of 97-0; and even in the State Senate, where Democrats hold a 22-18 advantage; it does not appear as though they can produce enough votes to support higher taxes.

Given the lack of support for higher taxes, it is apparent that the only way to balance the budget is through additional spending reductions. While reducing government spending is not easy, it is sometimes necessary.

Many of the Commonwealth’s current financial troubles are the result of bad decisions we have made in the past. To put it simply, we have been spending money we didn’t have to make promises we couldn’t keep.

We sought to pay for these promises through overly optimistic revenue projections, raids on the rainy day fund, spiraling amounts of state debt and federal bailout dollars. While these types of budget gimmicks can work for a while, sooner or later the underlying structural imbalances in the budget must be corrected.

In addition, because of the national recession state tax collections have declined significantly. Tax collections declined by 9.2% last year, and tax collections are projected to decline by an additional 3-4% this year.

During tough economic times, families and businesses have to prioritize their spending decisions and make certain they are not spending more money that they are taking in. Government must do the same.

Unfortunately, some seem to think that government should be immune from these fiscal realities, but it is not. When revenues decline, so must spending. It really is that simple.

While reducing state spending by an additional $2B will not be easy, it is important for us to keep these spending reductions in perspective.

Based on current projections, during the upcoming biennium state revenues (General Fund) will be $14.5B in 2010-2011 and $15.2B in 2001-2012. The last time state revenues were at this level was in 2006, when total state spending was $14.7B. So, in order to balance the budget through spending reductions we will have to return spending to where it was in 2006.

In order to achieve this goal, spending in the first year of the upcoming biennium will have to be reduced by an additional .7%, and spending in the second year of the budget will have to be reduced by an additional 5.8%.

While I don’t want to minimize the significance of these spending reductions, these are clearly achievable goals and the reductions must be made. There is no other alternative.

The Senate and House of Delegates are scheduled to release their respective budget recommendations in the next two weeks. We look forward to seeing their recommendations and working with them to reach an agreement that can receive broad bipartisan support.

She starred as Loretta Lynn in Coal Miner's Daughter and in Raggedy Man, the "bittersweet drama about a young mother, her two sons and the mysterious benefactor who touches them all," and in many other films the past three decades.

Texas native Sissy Spacek, 60, has lived with her family in central Virginia for a number of years. On Tuesday, she will participate in a press conference with Lt. Gov. Bill Bolling at the State Capitol to support motion picture tax incentive legislation as part of the "Jobs and Opportunity Agenda."

The press conference will take place Tuesday, February 16, at 11:00 am, in the Old Senate Chamber of the State Capitol Building in Richmond.

Lt. Governor Bolling, welcome to The Family Foundation’s Virtual Lobby Day and thank you for keynoting it with this live blog interview. I should say, “Welcome back,” as you’ve been a great friend to the Family Foundation and our blog, participating in interviews in the past. We hope all is well with you and your family. I hope you are ready for some questions — we’ve got a bunch of them.

I’ll start us off: What is going to be the biggest single policy initiative for you and Governor Bob McDonnell in your first year?

Lieutenant Governor Bill Bolling: Good morning everyone. It is good to be with you this morning. I want to thank The Family Foundation for having me, and for all the leadership you provide to promote a pro-family agenda in Richmond. I have enjoyed working with The Family Foundation throughout my service in state government, and I look forward to working with you in the future.

Q – What is going to be the biggest single policy initiative for you and Governor Bob McDonnell in your first year?

Lieutenant Governor Bill Bolling: Clearly, the two biggest challenges we face right now are 1) getting our economy moving again and creating jobs, and 2) balancing the state budget through spending reductions and not tax increases. We have put forth a detailed Jobs and Opportunity Agenda to help get our economy moving again, and this will be my main responsibility as Virginia’s Chief Jobs Creation Officer. We are working with our colleaugues in the General Assembly to promote passage of this agenda. We are also working with them to explore alternatives for bringing the budget into balance without raising taxes.

Q – It is a prayer answered for many of us that you are serving another term. Many of the Orginazations that work year round as we do with at risk youth and Families need our Elected Officals to remember bills and etc. that would assit these youth and families that are having an even harder time during this recession . Thanks for all yout work to date.You, your Family and staff remain in our prayers.

Lieutenant Governor Bill Bolling: Hi, Dr. Brown. It is good to hear from you. I still remember the great morning we spent with you in Petersburg promoting Project Child Safe.

First of all, thank you for your prayers. I believe in the power of prayer, and I feel daily the prayers that you and so many other people are offering for Governor McDonnell and me. Please keep them coming.

I salute your willingness to work on programs that assist at risk youth and families. I agree that this is an important mission. We stand ready to help support these programs in any way we can.

One thing we will continue to promote is mentoring programs for children who may not have a positive role model in their lives. We think these are very important programs.

Q – Recently our facility was granted a Special Use Permit from the City of Fredericksburg as well as approval from the Virginia Department of Social Services Northern Licensing Office for a Before and After School Daycare. How will your office partner with Faith Based Organizations to address the needs of our children, particularly those with special needs?

Lieutenant Governor Bill Bolling: We are strong supporters of faith based and other private sector programs that seek to address the needs of children. We would be delighted to meet with you at any time to talk about specific steps we could take to help support these programs. As someone who works in this area, I would be interested in hearing your ideas on what we could to help.

Q – We are deeply concerned over the draining of our Social Services, and Medical services by aliens, both illegal, and green card. How does Virginia plan to STOP this theft from American citizens? It is a serious problem seemingly ignored by our government at every level, and it is a tremendous financial burden on our Country’s already enormous debt load! Taking our citizen’s jobs is heinous enough in this time of record unemployment; but to add to that insult by stealing these services when Virginian’s need them more than ever, and backlogging our system, is appalling.

Lieutenant Governor Bill Bolling: I agree this is a significant issue in many states. However, I am pleased to report that several years ago we passed legislation to prevent illegal aliens from obtaining access to most state services in Virginia. There are really only two major exceptions – 1) public education, which we must offer to all school aged children regardless of citizenship pursuant to a U.S. Supreme Court decision; and 2) emergency medical care. This legislation was part of a comprehensive set of proposals we had propsoed to help address the issue of illegal immigration. We continue to be very focused on doing what we can at the state level to address this issue.

Q – Is there any possibility of reviving Virginia manufacturing industries, e.g., textiles, furniture, etc., previously lost to foreign countries or others, via establishment in Virginia of combination employee owned/profit shared/bartering type businesses?

Lieutenant Governor Bill Bolling: This is a great question. Advanced manufacturing is one of the strategic initiatives we have included in our Jobs and Opportunity Agenda. We feel that this can be a major part of our future economic development efforts, particularly in rural parts of our state. While it may be difficult to revive some industries, like textiles and furniture, there are other industries that we will be pursuing aggressively, such as automotive manufacturers and other technologically based manufacturers. Our Jobs and Opportunity Agenda includes a number of specific programs and incentives that are specifically designed to help attract advanced manufacturing projects to Virginia.

Q – I am greatly concerned with the $50 million you and Gov McDonnell are requesting. It appears to be the exact type of market manipulation and spending that harms businesses that grow without Government help. The Stimulus you intend to flood the State with is creating a crushing Federal Tax burden which will of necessity drive unemployment because consumers, investors AND business owners will be unable to recover. Dedicating oil/gas revenue to ANY particular purpose will distort for example transportation build WAY ahead of demand and hence be a waste. I suggest reducing tax liability, dollar for dollar and putting a two thirds requirment to increase entitlement and spending a prudent alternative and one that would produce more jobs (and revenue) then ANY State in the Union. Rural Virginia is already suffering from artificially high energy, labor, real estate and taxes. They have high unemployment BECAUSE of Government. Now it is the urban centers that will finally feel the heat DESPITE HUGH Federal subsidy.

Would you consider American’s for Prosperity’s “Model Budget” that would reduce State Govt by Five Billion? Would you reject the “green” pork and other markets manipulation and usurpation you’re promoting?

Lieutenant Governor Bill Bolling: Our Jobs and Opportunity Agenda is nothing like the stimulus plans that have been proposed in Washington.
We understand that it is the private sector, not the public sector, that creates jobs; but we also understand that the policies advanced by the public sector can make it easier or more difficult for the private sector to create jobs.

We have proposed an investment in proven economic development and job creation programs that seek to spur economic growth in the private sector. For example, we want to invest more in the Virginia Economic Development Partnership and the Virginia Tourism Corporation to better enable them to market Virginia as a great place for business and tourism, both domestically and internationally.

In addition, we have proposed investing in tax credits and other incentives to encourage businesses to locate in Virginia and make it more profitable for them to be here.

We want to do everything we can to make it easier for the private sector to create jobs in Virginia, and we want to send the message loud and clear that we want those businesses here.

I am pleased that our Jobs and Opportunity Agenda is being supported by every major business organization in Virginia, and it appears to have widespread bi-partisan support in the General Assembly as well.

Q – Northern Virginia continues to be overrun with large numbers of criminal illegal aliens, their children populate the public schools in the tens of thousands, they fill emergency rooms to the brim in order to get basic health care free, they drive vehicles without licenses or insurance with seeming immunity, local police do nothing on the orders of local Democrat politicians, they hold down jobs in such numbers that some businesses are difficult to work with because no one speaks English with any proficiency. And the State Police do nothing! When is this going to stop? If you are enter the country illegally, you have no right to be in Virginia. Republican politicians have shown great cowardice on this issue.

Lieutenant Governor Bill Bolling: Ultimately, the problem of illegal immigration needs to be addressed at the federal level. We need to make it more difficult for people to come into our country illegally, we need to discontinue programs that reward them for being here illegally, and we need to be more aggressive in our immigration enforcement efforts. Unfortunately, the current composition of the Executive and legislative branches of the federal government will make it very difficult to achieve any meaningful immigration reforms at the federal level.

At the state level, we have proposed a number of initiatives in the past to do what we can to help address this issue. For example, and as discussed above, we have passed legislation to make certain that illegal aliens are not receiving most state services. In addition, we have passed legislation to enact enhanced penalties on illegal aliens who commit crimes in Virginia. Likewise, I have always supported entering into an agreement with the federal government to give the Virginia State Police and local law enforcement agencies the authority to enforce federal immigration laws. Unfortunately, we have been unable to get that legislation approved by the General Assembly.

Q – How is the new assignment of Chief Jobs Creation Officer going? Exactly what types of duties go into this position and how will it work? Is it unprecedented for the Lt. Gov. to take on a cabinet level role? Thanks for all your good work!

Lieutenant Governor Bill Bolling: I am looking forward to serving as Virginia’s Chief Jobs Creation Officer, and I appreciate the confidence Governor McDonnell has placed in me by asking me to serve in this important role and as a member of his Cabinet. As you know, we campaigned as a team and we promised to govern as a team, and we are now keeping that promise.

As Chief Jobs Creation Officer I will be overseeing Virginia’s economic development and job creation programs, which are administered by numerous Secretariats and state agencies.

I am currently taking the lead shepherding our Jobs and Opportunity Agenda through the legislature, and I am very pleased with the broad bipartisan support we have obtained for our legislative and budgetary recommendations.

Once the legislative session is over, I will be working closely with the Governor and our economic development team to identify businesses that might be interested in relocating to Virginia and encourage them to make that move.

I will also be chairing a number of internal and external working groups that will continually assess our economic development programs and strategies and make recommendations for how these programs and strategies can be improved.

We believe that getting the economy moving again and creating jobs is the most important issue currently facing Virginia. We are determined to do everything we can to help create jobs for Virginia’s families and strengthen Virginia businesses.

Q – Do you view the threatened move of an aircraft carrier from Hampton Roads to Mayport, FL as a strategic military decision or political patronage to the Democrats in Florida? Loss of an aircraft carrier group would cost thousands of jobs in Virgina. As Jobs Czar, what can your office do to prevent this from happening?

Lieutenant Governor Bill Bolling: I do not believe that there is any strategic advantage to be obtained from relocating military assets from Virginia to Florida. In fact, I think sound military strategy would result in keeping these assets in Virginia, where they can be readily used to protect the entire East Coast of the United States.

We are currently working with our federal representatives to make certain that all of our military assets remain in Virginia. That includes our carriers and other naval assets, as well as other military assets, like the Oceana Naval Air Station. These assets are not only a critical part of our national defense infrastructure, but they also have a significant economic impact on the Commonwealth.

Q – Thank you for your willingness to serve during these challenging times. What are your thoughts on reducing the hours of a “typical” work week in order to boost employment? I have a feeling that with more entrepreneurs, and more people willing to live within their means, our society may be shifting towards more efficiency and higher productivity, and actually require less folks working “full time” in the traditional sense. I see a major shift of priorities taking shape and believe that when all is said and done, our lives will all be a bit more balanced.

Lieutenant Governor Bill Bolling: Certainly one of the options available to public and private sector employers is reducing the hours that employees work in an effort to minimize job losses. However, I should stress that such decisions should be made by individual employers and not mandated through federal or state policy. Some employers may choose to take this approach, while others may not.

I agree that the economic chalenges we have faced in recent years have caused many families to rethink their priorities, and that is a good thing. In general, I think society is going through a process of resetting its priorities and learning to do more with less. We need to focus more on the things that really matter, like faith and helping a neighbor in need; and less on some of the materialistic things many put great value in.

Q – While it appeared the recent election of Governor McDonnell assured a return to conservative values held by many Virginians, there is now reason to doubt. How is it that Virginia’s Governor is signed on to Obama’s “Council of Governors”? Does that not, at minimum, imply a meeting of the minds? Certainly, many citizens in this Commonwealth do not support Obama, his Socialist agenda, nor the out of control spending. These were all platforms that landed both yourself and Governor McDonnell in office, now we wonder have we been betrayed. What say you?I assure you that Governor McDonnell and I are committed to governing Virginia consistent with the same conservative principles we talked about during our campaign, and I think that is clearly reflected in the policies we have propsoed to date.

As far as the Council of Governors is concerned, it is my understanding that this is a group of Governor’s that President Obama has asked to work with him to strengthen the parternship between federal and state governments on issues relating to national defense and preparedness. It is my understanding that Governor McDonnell has been asked to serve on this Council, but I don’t know if he has agreed to serve on the Council or not.

As we have said many times, we will work with President Obama when we believe the policies he is pursing are right for Virginia. For example, we are working with him to promote Charter Schools, which we also support. However, we will oppose his policies when we think they are wrong for Virginia. For example, we have actively opposed Card Check, Cap and Trade and national health insurance.

Q – Not really a question, but just wanted to urge you to please DEFUND PLANNED PARENTHOOD in the Commonwealth’s new budget.

Lieutenant Governor Bill Bolling: I do not support using state funds to pay for aboritons or to support organizations that provide abortions. That includes Planned Parenthood. In fact, in 2008 I cast the deciding vote in the State Senate to defund Planned Parenthood. Unfortuantely, that funding was subsequently restored by the budget conferees.

Q – First, thank you for your service to Virginia. I am thankful for your re-election. My question: What will you do to promote parental choice for education during this term?

Lieutenant Governor Bill Bolling: One of the cornerstones of my Best Schools, Best Teachers, Best Education program is providing more educational choices for parents and students. This includes promoting Charter Schools; tax credits for parents who choose to send their children to private schools, parochial schools or home schools; and many other forms of educational choice. You can learn more about my Best Schools, Best Teachers, Best Education program by visiting my web site at BillBolling.com.

Lieutenant Governor Bill Bolling: Let me close by thanking you all again for particiapting in this live blog, and by thanking The Family Foundation for sponsoring this blog. I always look forward to the opportunity to talk to fellow conservatives about the important issues facing our state. If my office can ever be of service to you, please let us know. Onward and upward!

Family Foundation: Lt. Governor Bolling: Thanks a million for your valuable time! We know you are extremely busy during General Assembly session, so thank you for answering the concerns of our blog readers. Please thank Randy and Ibby for helping facilitate this interview and for all the help your office has provided our blog since its inception two years ago. Thank you for your service to our Commonwealth and we wish you and your family every success and blessing the next four years.

During this year’s statewide campaign, Bob McDonnell and I talked a lot about getting our economy moving again and creating jobs.  We said then, and we reaffirm now, that this is the most important issue currently facing our state.

Over the past several months we have worked to put together a comprehensive set of legislative and budget initiatives that will position Virginia to take full advantage of a future economic resurgence.  On January 26th we unveiled our Jobs and Opportunity Agenda in a press conference at the State Capitol that was attended by more than 300 legislative and business leaders.

Even though state government is current facing significant budget shortfalls, we have asked the General Assembly to appropriate an additional $50M toward proven economic development and job creation programs.  That means more money for the Virginia Economic Development Partnership, the Virginia Tourism Corporation, the Virginia Film Office, the Department of Business Assistance and more.

With this additional funding we will be able to open new economic development offices in China and India and implement an aggressive media campaign to market Virginia as a great place to do business or take a vacation. 

We will be able to invest in a number of strategic programs that are designed to improve Virginia’s ability to attract enhanced manufacturing facilities, become the East Coast’s energy leader and assert our position as a great place for biotechnology and life sciences companies.

And we will be able to double the size of the Governor’s Opportunity Fund, which provides incentives to new businesses locating in Virginia; and the Jobs Investment Partnership Program, which provides grants to businesses that need workforce training assistance.

In addition, we have proposed a number of legislative initiatives that will give our economic development professionals the tools they need to recruit new companies to Virginia.

We have proposed a number of new and expanded tax incentives for businesses that create jobs in Virginia, including a doubling of the Major Facilities Business Tax Credit and the implementation of a new Green Energy Jobs Tax Credit.

In addition to doubling the size of the Governor’s Opportunity Fund, we have proposed providing additional flexibility in the fund by allowing grants and loans based on anticipated state and local tax revenue and more latitude for local matching funds for certain projects.

To assist small business in gaining access to the capital they need to start a business or expand a business we have proposed tax credits to financial institutions than invest in a new $100M fund that will make loans to small businesses. 

We have proposed reprioritizing how money is invested in Virginia’s Enterprise Zones by requiring that available funds go first to those companies that are creating jobs.  Currently, we are only funding 46% of these obligations.

And we have proposed continuing Virginia’s Business One Stop program, which is designed to assist small businesses in understanding state licensing and regulatory requirements, and streamlining these requirements to enable anyone to create a small business in Virginia within 48 hours.

A conservative economic impact analysis estimates that our Jobs and Opportunity Agenda will create nearly 30,000 new jobs in the next two years and generate $311M in additional state and local tax revenue.

I am pleased that our Jobs and Opportunity Agenda has strong bipartisan support in the General Assembly.    

Now is the time to invest in these important economic development programs and pass this job creating legislation.  These changes will better position Virginia to compete for new business, industry and jobs.

These are challenging economic times, but if we make the right decisions now we can position Virginia to take full advantage of a future economic resurgence. 

Please contact your legislator today and encourage them to support the McDonnell/Bolling Jobs and Opportunity Agenda so we can get Virginia’s economy growing again.

Virginia Lieutenant Governor Bill Bolling (R-VA) wrote to Attorney General Bill Mims (R-VA) about the constitutionality of several provisions in the Senate Health Care Bill. The opinion from Mims on the matter is informative.

Mims, in response to a letter from Bolling, had the following to say:  “you inquire about the constitutional validity of two provisions.  One provision would, after a period of several years, exempt Nebraska in perpetuity from increased costs associated with the expansion of Medicaid.  No other state, including Virginia, is afforded similar treatment.  The other provision would require every citizen of the United States to obtain health insurance or face significant penalties.  I share your concerns about the constitutionality of both provisions.”

Interestingly, Mims points out that the General Welfare Clause of the Constitution may be proven meaningless if this bill is signed into law. Mims wrote, “In my view, carving out an exception for a specific state, unrelated to any policy objective other than to secure the vote of a particular senator, would exceed the bounds of what Congress may do under the Spending Clause,” wrote Mims.  “Where the taxing and spending is intended to effectuate a benefit for a single state, solely to garner the vote of a particular senator from that state rather than for the general welfare, the spending at issue is unconstitutional.  To conclude otherwise, would mean that the General Welfare Clause is meaningless.”

I'm waiting for more states to get involved in what may be the largest constitutional battle of all time. Mims, who did not appear on the ballot this past November, will be leaving office next week for incoming Attorney General Ken Cuccinelli. Bill Bolling will be sworn in to a second term as Lieutenant Governor this Saturday.

LTG Bill Bolling requested an opinion of AG Bill Mims "on the constitutionality of the federal healthcare legislation passed by the United States Senate in December." and more to the point, Bolling asked whether:

the special treatment given to certain states in the Senate compromise that disadvantaged Virginia and other states, as well as the extent to which the legislation violates limitations imposed on federal actions by the U.S. Constitution.

In other words, did Sen. Ben Nelson's deal with Harry Reid pass the constitutional smell test?

The answer shouldn't really be a surprise, as Mims has already made it clear he thinks it doesn't. But in more formal language, Mims responded, in part, as follows:

“In my view, carving out an exception for a specific state, unrelated to any policy objective other than to secure the vote of a particular senator, would exceed the bounds of what Congress may do under the Spending Clause,” wrote Mims. “Where the taxing and spending is intended to effectuate a benefit for a single state, solely to garner the vote of a particular senator from that state rather than for the general welfare, the spending at issue is unconstitutional. To conclude otherwise, would mean that the General Welfare Clause is meaningless.”

While I have enormous sympathy for this reading, it does open the flood gates to a range of litigation not only on the health insurance bill, but just about every other piece of legislation Congress (and even the General Assembly) considers.

Without corrupt bargains, how would anything get done?

At the request of Lieutenant Governor Bill Bolling, Virginia Attorney General William Mims has issued a two-page opinion on the constitutionality of the health care legislation (HR 3590) currently under consideration by the U.S. Congress.

The substantive text of his opinion letter follows (footnotes omitted):

I write in response to your recent letter concerning the “Patient Protection and Affordable Care Act,” pending in the Congress of the United States. You inquire about the constitutional validity of two provisions. One provision would, after a period of several years, exempt Nebraska in perpetuity from increased costs associated with the expansion of Medicaid. No other state, including Virginia, is afforded similar treatment. The other provision would require every citizen of the United States to obtain health insurance or face significant penalties. I share your concerns about the constitutionality of both provisions.

The Constitution creates a Federal Government of enumerated powers. See U.S. Const. Art. I, § 8. As James Madison wrote: “[t]he powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the state governments are numerous and indefinite.” The Federalist No. 45, pp. 292-93 (C. Rossiter ed. 1961); see also U.S. Const. amends. IX-X. This constitutionally mandated division of authority “was adopted by the Framers to ensure protection of our fundamental liberties.” Gregory v. Ashcroft, 501 U.S. 452, 458 (1991) (internal quotation marks omitted). “Just as the separation and independence of the coordinate branches of the Federal Government serve to prevent the accumulation of excessive power in any one branch, a healthy balance of power between the states and the federal government will reduce the risk of tyranny and abuse from either front.” Id Therefore, to justify federal legislation, a source of authority must be located in the Constitution. Equally important, legislation may not infringe on rights provided by the Constitution. With those considerations in mind, I address your specific concerns below.

I. Mandatory purchase of insurance
Among the powers accorded to Congress is the power “to regulate Commerce ... among the several States.” U.S. Const. Art. I, § 8, cl. 3. Following the enactment of President Roosevelt’s New Deal program, the Supreme Court of the United States “ushered in an era of Commerce Clause jurisprudence that greatly expanded the previously defined authority of Congress under that Clause.” United States v. Lopez, 514 U S 549, 556 (1995) The Court has concluded that Congress’ authority s not limited to “the regulation of commerce among the states,” Ed. at 555, but further allows Congress to regulate activities that “affect interstate commerce.” Id. The Commerce Clause power is broad, but it is not without limits. In Lopez, 514 U.S. 549, the Supreme Court struck down as unconstitutional the Gun-Free School Zones Act of 1990. See also United States v. Morrison, 529 U.S. 598 (2000) (invalidating Violence Against Women Act of 1994). Although health care is an economic activity, the failure to purchase health insurance is not an economic activity. The insurance mandate is open to constitutional challenge — although it is not clear that such a challenge would succeed, given the breadth of the Supreme Court’s interpretation of the Commerce power.


II. The “Nebraska exception”
You inquire whether the Equal Protection Clause of the Fourteenth Amendment would provide a basis for challenging the Nebraska Exception. The Equal Protection Clause, by its plain terms, applies only to the states, not to the United States. U.S. Const. amend. X1V § 14. Therefore, a state could not bring a viable equal protection challenge to the Nebraska exception currently found in the pending legislation.

The Nebraska exception is vulnerable, however, on other constitutional grounds. The Constitution provides Congress with the power to collect taxes and to spend money for the “general Welfare of the United States.” U.S. Const. Art. I § 8, cl. 1. Once again, the Supreme Court has given Congress very broad latitude in the exercise of this power. See South Dakota v. Dole, 483 U.S. 203 (1987). Nevertheless, that latitude “is of course not unlimited.” Id. at 207. One of those limits is that Congress must, as the Constitutional text unambiguously commands, spend in pursuit of the “general welfare.” Id. In my view, carving out an exception for a specific state, unrelated to any policy objective other than to secure the vote of a particular senator, would exceed the bounds of what Congress may do under the Spending Clause. Where the taxing and spending is intended to effectuate a benefit for a single state, solely to gamer the vote of a particular senator from that state rather than for the general welfare, the spending at issue is unconstitutional. To conclude otherwise, would mean that the General Welfare Clause is meaningless.

This will not be the final word on this subject.  I expect other states will also be weighing in on the constitutionality of Obamacare.

December 21, 2009

The Honorable Mark Warner
United States Senate
SDB Building 40C
Washington, DC  20510

The Honorable Jim Webb
United States Senate
144 Russell Building
Washington, DC 20510

RE:  Federal Healthcare Reform Legislation

Dear Senators Warner and Webb:

I have been following with great interest the important debate currently taking place in Washington with respect to the proposed reform of our nation's healthcare system. 

While I certainly agree that we face serious problems with respect to the affordability and availability of healthcare for many Americans, it is important that any reform legislation address these issues without creating other problems for American consumers and businesses or jeopardizing the quality of our healthcare delivery system, which is currently the best in the world.

For many reasons, I strongly oppose the healthcare reform legislation that is currently pending before the United States Senate and I encourage you to vote against this legislation and any procedural votes that would allow this legislation to come to a final vote.

In my judgment, the legislation currently pending in the Senate will ultimately increase the cost of healthcare and result in higher health insurance premiums and higher taxes for the vast majority of the American people. 

In addition, I believe that this legislation will jeopardize the quality of healthcare that is currently available in our country and take important healthcare decisions out of the hands of consumers and turn these decisions over to government bureaucrats.

Perhaps most importantly, I am concerned that the cost of this legislation will be much higher than currently estimated, and it will inevitably add significantly to the cost of our federal deficit, which is, quite frankly, out of control and threatens the long term financial viability of our nation.

If these concerns were not reason enough to vote against this misguided legislation, I am writing to you today to let you know that I am outraged by reports that surfaced this weekend regarding concessions that were made to Nebraska Senator Ben Nelson to secure his vote in support of this legislation. 

As you know, one of our major concerns with this legislation is the potential impact it could have on the cost of Medicaid for Virginia's state government.   Many reports have suggested that this legislation could result in much higher Medicaid costs for state governments across the nation, costs that state governments simply cannot bear.

Against this background, I was amazed to hear that the Senate's Democratic leadership had made concessions to Senator Nelson that would hold his home state of Nebraska harmless as to any additional Medicaid costs that might come about as a result of the enrollment of new Medicaid recipients after 2017. 

I find these reports particularly troubling since they come on the heels of similar concessions that were given to Senator Mary Landrieu of Louisiana to secure her vote in support of this legislation just a few weeks ago.

In addition to the "pay offs" that were offered to Senators Nelson and Landrieu, unconfirmed media reports over the weekend have revealed that other Senators may have negotiated similar special treatment deals for their states. If these reports are accurate, this type of quid pro quo is unacceptable, and you and your colleagues should object strongly to the practice, which I have no doubt the American people will find offensive as well. 

If the Senate's leadership is so desperate to obtain votes to secure the passage of this legislation that they would make these types of concessions to these Senators, I would ask that you demand that the same concessions be extended to Virginia, and for that matter, to every other state in the nation.

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So, while we are talking about potential 2012 US Senate candidates, lets talk about Bill Bolling.  I know I know, he's suppose to run for governor in 2013, and yes I know he probably will.  But I must say that I believe our strongest potential candidate for the US Senate is Bill Bolling.  Having two statewide victories under his belt, Bolling won the admiration and loyalty to every Republican for his selfless sacrifice of not challenging for governor in 2009, avoided a contested convention, and really was as responsible for the GOP wins in 2009 as anyone else. 

Its nice to see Bolling jumping into the national debate and leading on giving some serious blowback to our senators who went along with this travesty despite one supposedly being a "maverick" and the other a "centrist" concerned about costs.  Weak men, both of them.

Combine this letter with a recent RTD editorial that Bolling wrote, I can't help but think he's laying some breadcrumbs out just to test out the response to national issues.  Here's the thing, I know a lot of people want to be governor but in the end its just one term and then what?  If Webb is vulnerable, which I suspect he will be, Bolling could make a Senate run to ensure himself a greater and longer role in the party.  Besides, he made a great senator in Virginia - a proven small government, tax-cutting conservative - why not take the show on the road up 95 to DC?

Oh yeah, and it doesn't hurt that Bolling is throwing a free party for his inauguration the Science Museum of Virginia.  Now that is thanking your supporters.