Monthly Archive: November 2008

Nov 19

Letter from Senators J. Warner and J. Webb to Secretary of Defense


The Honorable Robert M. Gates
Secretary of Defense
1000 Defense Pentagon
Washington, DC 20301

Dear Secretary Gates:

On November 18, we were briefed on the Navy’s proposal, as part of the Environmental Impact Statement (EIS) process, to base a nuclear-powered aircraft carrier at Naval Station Mayport. We have enclosed a copy of that briefing. In accordance with the regulations implementing the National Environmental Policy Act, we understand that the Navy’s preferred homeporting alternative will be published in the Federal Register November 21 as part of the Final Environmental Impact Statement (FEIS). Following this announcement, the Navy must wait a minimum of 30 days before issuing its Record of Decision (ROD), but may extend that period for as long as necessary before publicly announcing its final decision.

We ask that an opportunity be provided for the next presidential administration to analyze the strategic and fiscal considerations pertaining to this matter and contribute its views prior to the publication of the FEIS and any issuance of the Record of Decision. As Congress has considered issues associated with strategic homeporting for the last four years, it is inconceivable that an additional 90 days could not be given to ensure a proper decision is made.

Based on the briefing we received, we are extremely concerned that the Navy has made no compelling argument to justify its decision. We saw little or no evidence that the Navy’s announcement was supported by either economic logic or strategic necessity. Indeed, according to the Navy’s own assessment, the meager advantages attributed to Naval Station Mayport over Naval Station Norfolk are “slight” at best, while initial Navy estimates identify nearly $600 million in military construction costs and other expenses that would be incurred to enable Mayport to serve as a homeport for a nuclear-powered aircraft carrier. These costs may well approach $1 billion when the Navy’s preliminary estimates are refined and all projected expenses documented more thoroughly. This, Mr. Secretary, does not provide for a persuasive case given the scarcity of the Navy’s resources.

Moreover, assuming that mitigation of strategic risk is a viable rationale for expanding nuclear-carrier repair and maintenance facilities, the Navy has not fully examined all alternatives short of establishing a second East Coast nuclear-carrier homeport, including the use of other nuclear-capable repair and maintenance facilities on both the East and West Coasts.

Given the extraordinary financial crisis facing our nation and the compelling need to overcome existing shortfalls and invest in higher-priority Navy budget requirements, the Navy’s announcement enters the realm of fiscal irresponsibility. The Navy has identified $4.6 billion in fiscal year 2009 unfunded budget requirements. Within the last several years, it has already invested more than $400 million to improve and upgrade its infrastructure at Naval Station Norfolk to support the Navy’s carrier fleet with adequate nuclear-capable piers and other support facilities. Before duplicating Norfolk’s existing capital-intensive facilities in Mayport, the Navy should make the fiscally sound decision to optimize past investments at Norfolk and preserve scarce resources to address the near crisis in budget shortfalls for its people, shipbuilding program, aircraft procurement, and installations.

Good stewardship of taxpayer dollars demands that the Navy should fund its shortfalls in shore-readiness requirements rather than expand its shore footprint with duplicative facilities. Before creating excess infrastructure and nuclear-warship capacity in Mayport, the Navy should complete a large number of critical unfunded military construction projects. Owing to the Navy’s chronic underfunding of modernization at its four public naval shipyards, there remains a $791 million backlog in sustainment, restoration, and modernization projects at these installations. The nuclear-capable Norfolk Naval Shipyard, which currently has the capacity for repair and maintenance of . the Navy’s East Coast nuclear carriers, has a backlog for such critical projects of $224 million alone.

It is not in the taxpayer’s interest for the Navy to render such an important and expensive decision at the very end of one presidential administration. The new administration should have the opportunity to assess its defense priorities in order to determine how best to address the defense budget’s growing shortfalls. For these reasons, we request that the Navy withhold publication of its Final Environmental Impact Statement. Under no conditions should the Navy issue its Record of Decision before the new administration is able to evaluate the homeporting proposal with greater analytical rigor than the Navy has demonstrated. We respectfully note, Mr. Secretary, that the undersigned have had considerable experience as former Secretaries of the Navy in assessing matters of this nature.

Sincerely,

United States Senators John Warner and Jim Webb

cc:
Chairman and Ranking Member, Senate Committee on Armed Service
Chairman and Ranking Member, Senate Committee on Appropriations
Secretary of the Navy
Chief of Naval Operations

Nov 18

Letter to President-Elect Barack Obama from Hampton Roads’ Congressional Members

President-Elect Barack Obama
Presidential Transition Office
Washington, DC 20270

Dear President-Elect Obama:

Congratulations on your hard-fought and historic election. We are writing you because of your announced intention to reform and cut waste in the Depal1ment of Defense. As Virginians, we understand first-hand the importance of a strong national defense, and we appreciate your stated commitment to maintaining one. We also share your concern that in the midst of a ballooning budget deficit, a declining economy, and continued growth in entitlement spending, we must ensure every defense dollar is spent on the most important national security priorities, such as providing benefits for our soldiers, working towards a 313-ship Navy, and restoring readiness in our aging aircraft fleet, rather than on unnecessary or wasteful interests. We can be confident in the urgency of the matter at hand when even defense industry leaders agree that, “Business as usual is not an option,”(1) for our defense budget planning.

For this reason, we wanted to offer a bipartisan suggestion as to how you can save half a billion dollars that could be directed towards more critical defense priorities as you prepare your Fiscal Year 2010 budget. Today, the Navy announced its preference to expand its footprint by investing $500 million to upgrade the Navy’s port at Mayport, Florida to accommodate a nuclear aircraft carrier in addition to the existing East Coast port in Norfolk, Virginia. This cost does not include the additional annual expense of dredging in the harbor in Mayport or the personnel and operational impacts of starting up and shutting down the nuclear component of the port each time a carrier docks in Mayport.

Most importantly, this decision ignores the fact that there is no national security or strategic rationale requiring this buildup, unlike the decision in recent years to increase the proportion of the Navy’s fleet in the Pacific from 50% to 60% to balance an expanding Chinese Navy. Some have suggested that our East Coast aircraft carriers must be strategically disbursed to avoid a Pearl Harbor-like attack. As any sailor can tell you, these carriers are dispersed around the world on a routine basis in times of peace, and in times of war. In fact, the last time all the carriers were in port at Norfolk for a matter of days, many pictures were taken because it was such a unique event.

Our concern remains that this would be an unwise use of taxpayer dollars in the face of a serious budget deficit. We are in agreement that we should focus on completing the ongoing consolidation of military facilities as prescribed in the 2005 BRAC law, not spending money to expand a footprint the Depal1ment of Defense asked Congress to reduce just three years ago. As Admiral Mike Mullen has stated, extensive analysis has demonstrated that we need a minimum of 313-ships in our Navy(2). We do not see how we can get there if we do not make the tough budget choices and the easy ones. We humbly suggest to you that choosing not to expand the number of nuclear ports on the East Coast is one of the easy choices.

We look forward to your support on this issue and learning more about your vision for the Department of Defense. Thank you for your consideration, and we wish you the best in your transition.

Sincerely,

Members of Congress
J. RANDY FORBES
BOBBY SCOTT
THELMA DRAKE
ROB WITTMAN
Congressman-Elect
GLENN NYE

cc:
The Honorable Ike Skelton
Chairman
House Armed Services Committee
2120 Rayburn House Office Building
Washington, DC 20515

The Honorable Duncan Hunter
Ranking Member
House Armed Services Committee
2120 Raybul’l1 House Office Building
Washington, DC 20515

Admiral Mike Mullen
Chairman of the Joint Chiefs of Staff
9999 Joint Staff Pentagon
Washington DC 20301

(1) http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN1048805120081110
(2) ” Interview with Adm. Michael Mullen,” Defense News, December 3, 2007.

Nov 18

Community Impact Awards

Do you know someone who’s making a significant difference in Hampton Roads? A person, organization or business whose contributions deserve accolades?

Dominion Virginia Power and WHRO are joining together to recognize unsung heroes.

Click on the Impact Awards logo to make your nomination. Deadline is January 16, 2009.

Winners will receive a $1,000 award for the charity of their choice and recognition at a celebratory luncheon on Wednesday, May 20, 2009.

Categories are:
* Environment: Recognizing those whose vision and tireless efforts maintain and improve a healthy environment for all.

* Education: Honoring those who inspire a love of learning with innovative opportunities and productive environments that improve academic performances for students of all backgrounds and abilities.

* Regionalism: Honoring those who exemplify a commitment to our region through cooperative or collaborative projects.

* Public Safety: Recognizing those whose efforts raise community awareness about safety issues, help protect the public or whose individual acts of heroism save lives.

* Social Justice: Honoring those who have shown a commitment to promoting diversity, access and opportunity for all.

Nov 18

Navy wants to move carrier to Florida

by Hugh Lessig, Daily Press

The U.S. Navy announced Monday that it wants to base an aircraft carrier in Florida, a move that could send shock waves through the region’s economy.

One Florida lawmaker called the move “a done deal,” but Virginia lawmakers from both parties vowed to continue the fight.

Norfolk is home to the only four carriers now operating on the East Coast, and the prospect of moving one would cost Virginia thousands of jobs. One economic official likened it to the closing of the Ford Motor Co. plant in Norfolk in 2007.

Another possibility for a Florida move is the George H.W. Bush, which is scheduled to be commissioned in January.

The Navy justifies the decision partly because it wants to disperse the fleet, given the possibility of a natural disaster or terrorist attack.

The Hampton Roads congressional delegation received word Monday of the proposed move to the Mayport Naval Station near Jacksonville. It comes on the heels of an environmental impact study.

Any move would be about five years away. Mayport would need extensive work to accommodate a nuclear-powered carrier, including dredging, wharf improvement and nuclear propulsion maintenance facilities. That work wouldn’t take place until 2014.

An environmental-impact study that provides more detail on the subject will be available to the public on Friday. A final decision from the Navy is expected in December.

The Navy has not specified a carrier, but Virginia’s top political leaders quickly weighed in with their concerns.

“We question the wisdom and timing of an option that will cost the Navy an incredible amount of money and not significantly improve the nation’s security,” Democratic Gov. Timothy M. Kaine said.

Rep. J. Randy Forbes, R-Chesapeake, also expressed his disappointment.

“Moving a carrier to Mayport will require a great deal of time and upwards of half a billion dollars,” he said. The decision “not only lacks strong national security rationale … but brings into question the political nature of the decision-making process, creating significant challenges for the Navy to meet its stated priorities.”

Democratic Sen.-elect Mark R. Warner said the expenses incurred at Mayport are only one drawback.

“In addition, the fighter jets that will serve on the carrier already are based at Naval Air Station Oceana in Virginia Beach,” he said, “and are therefore in a better position to train with the carrier if it is homeported in Norfolk.”

Sens. Jim Webb, D-Va., and John Warner, R-Va., in a joint statement said: “This is not an announcement that is supported by either economic logic or strategic necessity. Given the extraordinary financial crisis facing our nation today … the announcement enters the realm of fiscal irresponsibility.”

Democratic 2nd District Rep.-elect Glenn Nye said he is “extremely disappointed with today’s news,” saying the government would undertake a needless expense and uproot “thousands of military families.”

Rep. Thelma Drake, R-Norfolk, whom Nye will replace in January, added: “I strongly disagree with the Navy’s decision. … This is not the time for the Navy to spend what they estimate to be $500 million on duplicative infrastructure which President-elect Obama has already said he is not inclined to support.”

Frank Roberts, executive director of the Hampton Roads Military and Federal Facilities Alliance, questioned the fiscal soundness of the decision. Taxpayers would shell out hundreds of millions of dollars to upgrade Mayport when “excess infrastructure exists in Norfolk,” he said.

“From an economic standpoint, it just doesn’t appear to be sound economic policy,” Roberts said.

In a statement, the Navy said dispersing the fleet “reduces risks to fleet resources in the event of natural disaster, manmade calamity or attack by foreign nations or terrorists.”

Roberts questioned that rationale.

“On any given day, 50 percent, plus or minus, of the entire Navy fleet is out of their home port,” he said. “They’re at sea, training, or they are deployed.”

The last Navy aircraft carrier based in Mayport was the conventionally powered USS John F. Kennedy, which was decommissioned in 2007.

The loss of a carrier would equate to a major plant shutdown, said E. Dana Dickens III, president and chief executive of the Hampton Roads Partnership.

“It would be a very similar impact to losing the Ford plant,” he said. “You think about an aircraft carrier with about 6,000 people aboard, not counting spouses.

“It’s essentially a small town. It has everything a small town would have on it. From taxis to groceries to doctors and housing, it has an impact on every part of the economy in Hampton Roads.”

In Florida, political leaders rejoiced at the news.

U.S. Sen. Bill Nelson, D-Fla., told The Associated Press that the move would bring 5,000 sailors, pilots and families to the Jacksonville area, a major boost to that region’s economy.

“It’s a done deal,” Nelson told the AP.

“This is tremendous news for Florida and a testament to the importance of Mayport,” said Sen. Mel Martinez, R-Fla. “It is vital that our nation maintain more than one substantial naval base on the East Coast.”

Back in Hampton Roads, Roberts questioned whether this represents the final word.

“The budgeting process to support this has not been undertaken yet,” he said. “The new administration will have to wrestle with some tough budget issues.”

Kaine is a close friend and political ally of President-elect Barack Obama, the incoming commander-in-chief. It raises the possibility that Kaine could prove to be an effective lobbyist.

“He’s going to do what he can,” said Kaine spokesman Gordon Hickey. “Obviously, he knows the president-elect.”

Mass exodus?
5,000-plus Number of sailors who could move away from Hampton Roads if a carrier is relocated

Virginia vs. Florida “It’s a done deal.” — Florida Sen. Bill Nelson

“This is tremendous news for Florida.” — Florida Sen. Mel Martinez

“This announcement is not supported by economic logic or strategic necessity.” — Virginia Sens. Jim Webb and John Warner

“This is not the time for the Navy to spend what they estimate to be $500 million on duplicative infrastructure which President-elect Obama has already said he is not inclined to support.” — Rep. Thelma Drake

Nov 17

City of Williamsburg “State of the City” address

The City of Williamsburg held a public “State of the City” address this evening and also presented the city’s published Biennial Goals, Initiatives and Outcomes for 2009-2010. Mayor Jeanne Zeidler presided over a standing-room only group of well over 100 attendees.

Of note in her address: lodging and hospitality revenue has experienced a severe drop-off as recessions tend to shrink a family’s discretionary spending, especially for travel.

State funding will decrease and assessments will drop, negatively affecting tax revenues. The City is bracing for an estimated $1 Million shortfall and is deferring planned spending.

The decision packages for the City Council’s upcoming budget exhibit permanent spending and service reductions. The City is in good shape, though, as cash reserves are safely invested and debt is low. There has been no real decline in residential real estate thus far, and new developments are still in the works.

Colonial Williamsburg has experienced a decline in conference revenue, and The College of William and Mary has become a state-assisted instead of a state-supported school. The City of Williamsburg is a city of historic and academic renown and will continue to thrive. Comments and suggestions from citizens are encouraged.

The City continues important and significant projects such as community beautification and tourism promotion. The City has a $2.35 Million budget in destination marketing with the goal to protect the City’s character and to encourage the Arts, including Virginia Arts Festival.

The City of Williamsburg is engaged. In the recent Presidential election (Nov 08), Williamsburg was one of the top three (3) cities in Virginia with new voters and voter turnout.

The rental issue is a “hot topic,” with 55% of residential housing listed as renter-occupied. Homelessness and affordable housing remains important.

The City of Williamsburg is safe, rating well above the national average for public safety and fire services. The City is “green government” certified for its environmental sustainability efforts.
Williamsburg Area Transit (WAT) continues to improve, adding Sunday service on November 23rd and working on reduced stop times from one hour to one-half hour.

The City thanked Colin Campbell, President of Colonial Williamsburg Foundation, for his efforts on the Jamestown 2007-Historic Triangle Collaborative.

The city’s first Economic Development Director, Michele DeWitt, was introduced, and it was noted that the City Manager has added a Communication Director to his staff. One of the first communication initiatives has been interactive web-based citizen discussion.

As a regional effort, the City of Williamsburg is exploring a long-term agreement with the City of Newport News on water usage, recognizing partnerships are important, including those with other localities.

You can watch a video of the event and download the complete State of the City report online HERE.

Nov 12

VEDP’s Fall Global Logistics Forum

The Fall Global Logistics Forum was held November 12, 2008, at the Virginia Modeling, Analysis and Simulation Center (VMASC) in Suffolk. The presentations and registration list are available HERE.

The Global Logistics Forum is sponsored by the Virginia Economic Development Partnership in coordination with area business and industry. The Forum provides seminar and lecture-style topics applicable to today’s supply chain-oriented professionals. The group includes economic developers, consultants, real estate representatives, rail providers, third party warehouse providers, construction/developers and port representatives.

Nov 07

The American Way: A Swing State Epiphany

by Erin Ryan

After weeks of country rending culture-warmongering in the final stretch of the presidential campaign, my neighbors brought over some cookies last night and offered something that reminded me why we, as a nation, will always come through these ordeals intact.

We live in Hampton Roads, Virginia, or battleground central in the campaign. It’s been widely reported that this southeastern region of Virginia could decide the election, and with it, the new direction our world will take. As all swing-state residents will attest, the pressure of a presidential campaign is relentless, fraying nerves and straining collegiality. Accordingly, we avoid talking politics in my heavily Republican neighborhood. We share a stereotypical suburban cul de sac, where I walk my baby in his stroller at the same time many walk their dogs. I like my neighbors and enjoyed getting to know them since we arrived five years ago. I know that many will be voting for McCain, and though I cast my ballot for Barack Obama with a passion I have not previously felt at the polls, I felt no need to broadcast my politics with something as pronounced as a yard sign.

But then the first one appeared in the neighborhood–a McCain-Palin sign that went up right across the street. I felt a twinge when I saw it, a physical indication of the subtle barrier it erected between us. The McCain sign did not stay solitary for long; within days, others sprang up along the road like saplings. Soon there were five, then nine, and nary an Obama sign in sight. Although my husband and I have always opted for the respectful separation of neighbors and politics, a reluctant impetus to put up our own sign began to build. At first, we hadn’t wanted one because we feared it would seem divisive; now, we also feared how it would marginalize us. So we rationalized our inaction: after all, we live on a dead-end street! A yard sign was unlikely to change the minds of our neighbors, and Obama didn’t need any help with name recognition.

After the eleventh McCain sign completed a formation down the street, my husband finally asked, if not now, when? If we weren’t willing to risk scorn for supporting this candidate, whom we admired beyond politics as usual, in this election, which we believe of global import–for what would we take a stand? So we waited for sundown, held our breath, and put the Obama sign out front. It did not take long to feel the effects. Some neighbors were cooler as they passed our stroller. Were others avoiding eye contact? Our politics were now a fact, a cat that was out of its bag and unlikely to return there, even long after the election. Though confident in our choice, we mourned the feeling of belonging we feared we had forsaken.

And then last night came the visit from down the street, from a family with two McCain signs. We have come to be friends in the best tradition of neighborliness. They brought us Christmas dinner when our baby was so new that we could hardly open a can of soup, and my husband regularly helps them with computer problems. The wife and I share stories about our children, and their daughters feed our cats when we are out of town. We had not spoken since the signs went up, and I wondered whether things would change. But here was the wife with a plate of home-baked cookies and the following extraordinary offer: She explained that it means a great deal to her and her husband to vote together. Realizing that we would not be able to do so with our new baby, she was offering to babysit to give us that chance. I almost cried.

With allegations of voter registration fraud and voter suppression tactics drowning out the issues, my McCain-supporting neighbors were going out of their way to help us cast our ballots for Obama. Each of us feels strongly enough about our candidate to profess it from our lawn, and we all know that in our state, every vote counts. Our votes for Obama would cancel out theirs for McCain. And yet, here they were.

The warmth in their simple gesture meant everything. It was their way of telling us that–regardless of that silliness about who counts as the “real Virginia” or “pro-America” areas of the country–we are all Americans, and Americans care about their neighbors notwithstanding our differences. We vote our contrasting views, but we cast our ballots with respect for one another, and with the certainty that after they are tallied, we will rejoin to build our children’s future, side by side. My neighbors’ kindness reminded me that we will survive the best efforts of the election to divide us, by rising again to our best selves. We are all in this together. This is the American way.

–Erin Ryan teaches law at the College of William & Mary. A version of this piece appeared as an Op-Ed in the Chicago Tribune on November 5, 2008.

Nov 06

Economics Club of Hampton Roads: “Tough Choices, Tough Times”


At their November 5th luncheon (sponsored by The Norfolk Foundation), The Economics Club of Hampton Roads presented “Tough Choices, Tough Times,” the report of the NEW Commission on the Skills of the American Workforce. Marc Tucker, President of the National Center on Education and the Economy, presented. Click on the logo above for the Full Report.

The NEW Commission’s report is an update of the original 1990 report. New emphasis is placed on the fact that the U.S. is now in direct competition with skilled workers in other parts of the world willing to work for much lower wages. Example: Chinese skilled workers make 1/100th of the pay of their U.S. counterparts.

The 1990 Commission assumed that only the richest countries could pursue better education. Admittedly, they were wrong. The rest of the world has substantially raised their standards of education. When comparing just China and India (pop. 2.3 Billion) to the U.S. (300 Million), their top 10% of students is staggering in sheer numbers alone.

Automation is another pressure, in jobs and in wages, on the U.S. workforce. For every job sent off-shore, another 10 are being automated here.

The Commission forecasts: unless something is done about Education in the U.S., we will experience a steady lowering of our standard of living until it meets that of our biggest competitors, India and China.

The hope for America is that more niche companies will surface, those producing goods and services available nowhere else. Apple, for example, with their “mesmerizingly desirable” leading edge designers, marketers and manufacturers attracts the best educated, most innovative employees who also command very high wages.

According to the Commission’s report, if we had lots of Apples in the U.S., we’d have a strategy to maintain a higher standard of living for a very long time. It doesn’t matter where the company is located, only that they hire American workers. And, those leading edge companies won’t come to the U.S. for a workforce unless ours is the best educated, most innovative, most creative workers AND the fastest, most motivated learners.

The comparisons and 40-year trends shown in the report do not bode well for this pressing need. South Korea, for instance, has made enormous gains in educational attainment and is now ahead of the U.S. in world standing.

40 years ago, the U.S. boasted the best-educated workforce in the world. Today, we are 10th and falling rapidly.

Our educational outcomes have not improved while our costs have increased (240% increase over the last 30 years, adjusted for inflation). Currently, 30 Million in the U.S. workforce are without a high school diploma, adding to the problem every year.

The Commission’s studies show that today’s American worker will experience 4 to 6 periods of unemployment and change jobs 10 different times. And, this negative trend is increasing exponentially.

The summation of the Commission’s report is that our educational system has not changed in the last 100 years. We’ve tried more money. We’ve tried new initiatives. The one thing we haven’t tried is to change the basic design of elementary and secondary education systems.

Cost neutral suggestions (to spend no more than we do now) are provided in the Commission’s report and based on other country’s best practices which provide very clear standards and accountability systems.

Suggestions such as:

  • allowing the approximately 60% of 16-year old high school students who are ready for college-level work without remediation to move on if they pass a board competency test, saving money for courses no longer required at the junior and senior high school and saving on remediation needs in higher education
  • investing in high quality early childhood education for ALL 4-year olds and ALL low-income 3-year olds, to prevent our current philosophy to “teach to the middle” (by 4th grade, the struggling “bottom” will never catch up)
  • creating public-private partnerships with 3rd party performance-based contracts
  • getting School systems out of direct-employment of teachers, a system which finds the best teachers in the wealthiest areas of the country
  • eliminating our current system of “social promotion” whereby everyone expects to spend a specific number of years per school level whether basic competency is met or not, avoiding diplomas that are merely attendance certificates
  • providing longer school days, year-round schools and top-up funding whereby each student represents the same dollar amount to a school district

The Commission report explains that we can’t just cut costs and maintain our current lower standards. We need to get better results for what we now pay for Education.

You can download the full report at: http://skillscommission.org/pdf/exec_sum/ToughChoices_EXECSUM.pdf

Nov 05

ODU – Explaining the Economic Crisis Faculty Forum


Nancy Bagranoff, dean of the ODU College of Business and Public Administration, moderated a discussion held Wednesday, Oct. 22nd. Five of ODU’s top economics experts from the business faculty participated in a panel discussion on the current economic crisis. The forum panel members were: Larry Filer, associate professor of economics, Sylvia Hudgins, professor of finance, Mike Stein, associate professor of accounting, and Gilbert Yochum, professor of economics.

View Video of ODU’s Business School Economic Crisis Faculty Forum

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