What Washington Can Learn From Richmond

An extraordinary contrast is emerging between the style and philosophy of governing as practiced in the executive mansion just north of the Potomac River and the Executive Mansion just north of the James River.

In Washington, President Obama is borrowing, taxing, and spending with abandon -- with little apparent concern about the long-term consequences of his unprecedented expansion of government control of the economy and the claims it will make on future earnings of the American people. The president's agenda relies on one-party power and minimal attempts at compromise.

In Richmond, on the other hand, Gov. Bob McDonnell has just closed a $4 billion budget deficit without raising taxes. To do so, he made significant cuts in a budget that had expanded by more than 70 percent in a decade -- better than 28 percent for every citizen in Virginia (in inflation-adjusted dollars).

In a meeting with

The Times-Dispatch last month, the governor said making the cuts were "the most difficult decisions I've made in 19 years of public life." He made them nevertheless -- and helped persuade a state Senate controlled by Democrats and a House of Delegates controlled by Republicans to accept the necessary reductions in government expenditures while protecting the family budgets of ordinary Virginians.

McDonnell met the claims of those who insist that government must always grow -- even when growth in the private sector has stalled -- with the obvious but too rare assertion that limiting public spending is not only unavoidable in the wake of a deep recession, but sometimes healthy. "We are a very prosperous state . . . .We do have room, as painful as it is, to make these reductions in a prudent way," he said last month.

Facing the most challenging state budget gap in at least a generation, McDonnell crafted a bipartisan compromise that allowed the General Assembly to adjourn just one day later than planned.

The governor's budget is not without risks. His decision to postpone some contributions to the Virginia Retirement System may require the legislature and future governors to add funds when political pressure favors more visible spending priorities.

It's not unreasonable to hope that improved performance in the VRS investment portfolio will fill some -- perhaps even most -- of the current shortfall. But a truly conservative approach insists that the gap be closed in a reasonable amount of time. Virginia does not want to follow Washington's example of making generous promises about future benefits while providing no way to pay for them. Too many states are already racing down that imprudent path.

The most significant piece of McDonnell's budget -- though not widely noted -- was the decision to trim the pension costs of future state employees. By shifting the model for those hired after July 1 to one that more closely resembles private-sector retirement plans, McDonnell took an enormous step in ensuring the state's solvency -- which should soon emerge as a distinct competitive advantage for Virginia's economic development -- while keeping faith with past promises made to current state workers.

This essential reform would have been impossible if Virginia politics were dominated by the public-sector unions that seem determined to drive California and New York, to name the most prominent examples, into bankruptcy, crippling tax increases -- or perhaps both. McDonnell has set an important precedent here.

The governor also has invested political capital in finding ways to make the commonwealth more effective and efficient by appointing a commission to explore state government reform and restructuring. Commissions are, of course, a famous way for politicians to sidestep tough decisions, but early indications suggest McDonnell is serious about finding ways to make government work better -- including privatization when appropriate.

McDonnell has demonstrated a deft hand so far in other tricky situations. It's hard to imagine the governor was pleased when -- in the same week he was trying to broker a budget compromise between the House and the Senate -- Attorney General Ken Cuccinelli ignited a media frenzy by informing Virginia colleges and universities that state law does not afford gays protection from discrimination. McDonnell was able to quickly cool (most) tempers by issuing an executive directive banning discrimination in all state personnel decisions.

At the same time, McDonnell has been supportive of Cuccinelli's lawsuits challenging federal overreach with regard to the regulation of carbon dioxide and the imposition of a personal health insurance mandate. Last month, McDonnell told the paper that he was prepared to resist the federal government whenever it "makes it harder for Virginia to compete in the global economy." At the same time, he went out of his way to stress that Virginia wants "to have a good relationship with the federal government. We want to be partners in getting things done."

It's a good bet that McDonnell was aware even then that a federal decision concerning offshore drilling for oil and natural gas was in the pipeline -- if you'll excuse the pun -- and there was nothing to be gained by taking cheap shots at Washington. The governor's strong and early support for drilling off the coast of Virginia during last year's campaign -- derided as wishful thinking by his critics -- seems set to pay off big-time now that the president has started to clear the way.

McDonnell's subtle handling of his comments about the commonwealth's relationship with the feds emphasizes the style of governing he has used with such success in his first months in office. Call it principled pragmatism, based on a philosophy that recognizes the need for limited government -- and spending -- combined with a willingness to strike compromises that lead to action. The governor's decision, for example, to accept increases in some narrowly defined fees helped create a budget resolution that won bipartisan support while honoring his campaign pledge to avoid a general tax increase.

As Washington sinks deeper in red ink and partisan acrimony, it would do well to look south and emulate the Richmond model being built by Virginia's new governor.

Contact Bob Rayner at (804) 649-6073 or brayner@timesdispatch.com.