Saturday, October 18, 2014

FEDERALIST PAPERS No. 49. Method of Guarding Against the Encroachments of Any One Department of Government by Appealing to the People Through a Convention.

For the Independent Journal. Saturday, February 2, 1788.

To the People of the State of New York:
THE author of the "Notes on the State of Virginia," quoted in the last paper, has subjoined to that valuable work the draught of a constitution, which had been prepared in order to be laid before a convention, expected to be called in 1783, by the legislature, for the establishment of a constitution for that commonwealth. The plan, like every thing from the same pen, marks a turn of thinking, original, comprehensive, and accurate; and is the more worthy of attention as it equally displays a fervent attachment to republican government and an enlightened view of the dangerous propensities against which it ought to be guarded. One of the precautions which he proposes, and on which he appears ultimately to rely as a palladium to the weaker departments of power against the invasions of the stronger, is perhaps altogether his own, and as it immediately relates to the subject of our present inquiry, ought not to be overlooked.
His proposition is, "that whenever any two of the three branches of government shall concur in opinion, each by the voices of two thirds of their whole number, that a convention is necessary for altering the constitution, or CORRECTING BREACHES OF IT, a convention shall be called for the purpose."
As the people are the only legitimate fountain of power, and it is from them that the constitutional charter, under which the several branches of government hold their power, is derived, it seems strictly consonant to the republican theory, to recur to the same original authority, not only whenever it may be necessary to enlarge, diminish, or new-model the powers of the government, but also whenever any one of the departments may commit encroachments on the chartered authorities of the others. The several departments being perfectly co-ordinate by the terms of their common commission, none of them, it is evident, can pretend to an exclusive or superior right of settling the boundaries between their respective powers; and how are the encroachments of the stronger to be prevented, or the wrongs of the weaker to be redressed, without an appeal to the people themselves, who, as the grantors of the commissions, can alone declare its true meaning, and enforce its observance?
There is certainly great force in this reasoning, and it must be allowed to prove that a constitutional road to the decision of the people ought to be marked out and kept open, for certain great and extraordinary occasions. But there appear to be insuperable objections against the proposed recurrence to the people, as a provision in all cases for keeping the several departments of power within their constitutional limits.
In the first place, the provision does not reach the case of a combination of two of the departments against the third. If the legislative authority, which possesses so many means of operating on the motives of the other departments, should be able to gain to its interest either of the others, or even one third of its members, the remaining department could derive no advantage from its remedial provision. I do not dwell, however, on this objection, because it may be thought to be rather against the modification of the principle, than against the principle itself.
In the next place, it may be considered as an objection inherent in the principle, that as every appeal to the people would carry an implication of some defect in the government, frequent appeals would, in a great measure, deprive the government of that veneration which time bestows on every thing, and without which perhaps the wisest and freest governments would not possess the requisite stability. If it be true that all governments rest on opinion, it is no less true that the strength of opinion in each individual, and its practical influence on his conduct, depend much on the number which he supposes to have entertained the same opinion. The reason of man, like man himself, is timid and cautious when left alone, and acquires firmness and confidence in proportion to the number with which it is associated. When the examples which fortify opinion are ANCIENT as well as NUMEROUS, they are known to have a double effect. In a nation of philosophers, this consideration ought to be disregarded. A reverence for the laws would be sufficiently inculcated by the voice of an enlightened reason. But a nation of philosophers is as little to be expected as the philosophical race of kings wished for by Plato. And in every other nation, the most rational government will not find it a superfluous advantage to have the prejudices of the community on its side.
The danger of disturbing the public tranquillity by interesting too strongly the public passions, is a still more serious objection against a frequent reference of constitutional questions to the decision of the whole society. Notwithstanding the success which has attended the revisions of our established forms of government, and which does so much honor to the virtue and intelligence of the people of America, it must be confessed that the experiments are of too ticklish a nature to be unnecessarily multiplied. We are to recollect that all the existing constitutions were formed in the midst of a danger which repressed the passions most unfriendly to order and concord; of an enthusiastic confidence of the people in their patriotic leaders, which stifled the ordinary diversity of opinions on great national questions; of a universal ardor for new and opposite forms, produced by a universal resentment and indignation against the ancient government; and whilst no spirit of party connected with the changes to be made, or the abuses to be reformed, could mingle its leaven in the operation. The future situations in which we must expect to be usually placed, do not present any equivalent security against the danger which is apprehended.
But the greatest objection of all is, that the decisions which would probably result from such appeals would not answer the purpose of maintaining the constitutional equilibrium of the government. We have seen that the tendency of republican governments is to an aggrandizement of the legislative at the expense of the other departments. The appeals to the people, therefore, would usually be made by the executive and judiciary departments. But whether made by one side or the other, would each side enjoy equal advantages on the trial? Let us view their different situations. The members of the executive and judiciary departments are few in number, and can be personally known to a small part only of the people. The latter, by the mode of their appointment, as well as by the nature and permanency of it, are too far removed from the people to share much in their prepossessions. The former are generally the objects of jealousy, and their administration is always liable to be discolored and rendered unpopular. The members of the legislative department, on the other hand, are numerous. They are distributed and dwell among the people at large. Their connections of blood, of friendship, and of acquaintance embrace a great proportion of the most influential part of the society. The nature of their public trust implies a personal influence among the people, and that they are more immediately the confidential guardians of the rights and liberties of the people. With these advantages, it can hardly be supposed that the adverse party would have an equal chance for a favorable issue.
But the legislative party would not only be able to plead their cause most successfully with the people. They would probably be constituted themselves the judges. The same influence which had gained them an election into the legislature, would gain them a seat in the convention. If this should not be the case with all, it would probably be the case with many, and pretty certainly with those leading characters, on whom every thing depends in such bodies. The convention, in short, would be composed chiefly of men who had been, who actually were, or who expected to be, members of the department whose conduct was arraigned. They would consequently be parties to the very question to be decided by them.
It might, however, sometimes happen, that appeals would be made under circumstances less adverse to the executive and judiciary departments. The usurpations of the legislature might be so flagrant and so sudden, as to admit of no specious coloring. A strong party among themselves might take side with the other branches. The executive power might be in the hands of a peculiar favorite of the people. In such a posture of things, the public decision might be less swayed by prepossessions in favor of the legislative party. But still it could never be expected to turn on the true merits of the question. It would inevitably be connected with the spirit of pre-existing parties, or of parties springing out of the question itself. It would be connected with persons of distinguished character and extensive influence in the community. It would be pronounced by the very men who had been agents in, or opponents of, the measures to which the decision would relate. The PASSIONS, therefore, not the REASON, of the public would sit in judgment. But it is the reason, alone, of the public, that ought to control and regulate the government. The passions ought to be controlled and regulated by the government.
We found in the last paper, that mere declarations in the written constitution are not sufficient to restrain the several departments within their legal rights. It appears in this, that occasional appeals to the people would be neither a proper nor an effectual provision for that purpose. How far the provisions of a different nature contained in the plan above quoted might be adequate, I do not examine. Some of them are unquestionably founded on sound political principles, and all of them are framed with singular ingenuity and precision.
PUBLIUS

Learn More About American History:  Visit Jamestown, Yorktown, and Colonial Williamsburg Living History Museums In Virginia:  History Is Fun!

Is Our Constitution Outdated ? By; Sue Long


It has been said that our Constitution is no longer appropriate for today’s modern times. Indeed, Obama stated in his address to the United Nations, “We can no longer rely on a rulebook made a few centuries ago.” The reasoning is that new times call for new rules.


But what does “new” refer to here? Yes, obviously these are new times. But what are the proposed “new” rules? They are socialism and communism and the same old collectivist rationale that is as old as civilization itself. Considering the length of time that people have been on this earth, our Constitution is a newly developed concept.

Collectivism is the concept that individuals are subservient to the group; a group having no rights are thus subject to the dictates of the ruler(s). Individualism is just the opposite, where rights of the individual are recognized as being inherent, God-given, and not subject to being subverted: thus, Individual rights are not subject to destruction by ruler(s) edicts.

It was the principle of individualism, and the belief that the purpose of government is to protect our inherent rights, that gave birth to our Constitution. Other ruling documents spell out what government can do. Our Constitution spells out what government cannot do, thereby protecting people’s inherent rights from govern-mental rulings.

There have been attempts of such in the past, but they have been short-lived and/or limited. It wasn't until the birth of America that the principle was given full rein. The Founding Fathers studied history learning from past successes and downfalls, thus seeing the principles that work best for the good of mankind. The result is that we have become the envy of the world, exceeding any conditions elsewhere. Things that we consider to be necessities were unheard of in the past and are scarce commodities elsewhere today.

Consider: For thousands of centuries there have been people on this earth that are just as capable as the people living today. Yet, they lived in poverty. The life style of the royalty of the past doesn’t begin to compare with that of the poorest in America today. People throughout the world have just as much desire and ability to succeed and improve their lot as have the Americans, yet they are unable to do so. Thus, the masses have immigrated to America – or strive to.

America has been great not because of what government has done but because of what it has not done.

In America in recent times, momentum from the past has allowed a degree of prosperity to survive. But for how long? The assault by collectivists that has attacked America since its inception is taking its toll.

We have gone so far afield from the principles our Constitution was founded upon that many people have absolutely no conception of them or what our Constitution even says.

We have been the recipients of the most privileged life, one beyond the imagination of past times and the envy of the world today. Yet, we are throwing it away. Unless or until we once again embrace the principles embodied in individualism, and adhere to our Constitution, we will leave a very sad heritage to future generations.

IF we are not the home of the brave – we will no longer remain the land of the free.

Governor McAuliffe Announces Federal Grants to Improve School Safety and Mental Health Services for Students

Issues in Mental Health Nursing
Issues in Mental Health Nursing (Photo credit: Wikipedia)
Governor Terry McAuliffe announced today the Commonwealth has been awarded two five-year federal grants totaling nearly $13.3 million to improve mental health services for students and expand programs to make schools safer by reducing violence and disruptive behavior.

A five-year “Project Aware” grant from the federal Substance Abuse and Mental Health Services Administration will provide more than $9.7 million between now and 2018 to support statewide training for teachers and other public school employees to respond to mental health issues in children and youth; and connect troubled students with appropriate community- and school-based services.

The Project Aware grant also will fund pilot programs in three school divisions — Montgomery County, Pulaski County and Fairfax County — to create safer learning environments by improving communication and coordination between public schools, mental health service providers and other public and private agencies that focus on the well-being of children and young adults.

In addition, a five-year “School Climate Transformation” grant from the U.S. Department of Education will provide more than $3.5 million to expand the “Positive Behavioral Intervention and Supports” (PBIS) program to 45 additional school divisions. The PBIS approach to improving behavior and safety emphasizes consistent schoolwide rules, consequences and reinforcements for appropriate conduct, and intensive support and services for students engaging in disruptive behavior.  

Currently, 61 of the Commonwealth’s 132 school divisions have implemented the PBIS approach. Funding from the School Climate Transformation grant will support training and technical assistance for the additional school divisions and supplement the nearly $1 million in annual state funding appropriated by the 2014 General Assembly for PBIS implementation.     

Virginia is one of only nine states whose applications for the two grants were approved. States were required to explain in their applications how funded services would be integrated into a broader initiative to improve school climate and the well-being of students. 

“This is a big win for Virginia schools, students, families and communities,” Governor McAuliffe said. “I want to thank the team of state agencies, led by the Virginia Department of Education (VDOE), that collaborated on these grant applications for their successful efforts, and for their vision for improving mental health services for students and for making our schools safer places for students and staff.”  

“These grants will allow schools, mental health care providers, juvenile justice agencies, law enforcement and other organizations that interact with schools and students to address collaboratively the critical and overlapping issues of school safety and mental health,”Superintendent of Public Instruction Steven R. Staples said. “By educating school personnel and other adults who come in contact with youth about what to look for, children that have or are at risk of mental or behavioral health conditions can receive referrals and treatment more quickly. At the same time, hundreds of additional schools will be able to implement a proven approach to preventing violence, bullying and other disruptive behaviors that interfere with student learning.”

The Project Aware funding will support the training, beginning this fall, of as many as 750 teachers and others annually in “Mental Health First Aid,” an internationally recognized course on identifying and responding to persons who are developing a mental health condition or experiencing a mental health crisis.

The following state agencies are collaborating with VDOE in implementing the Project Aware grant: Department of Medical Assistance Services, Department of Social Services, Department of Health, Department of Juvenile Justice Services, Department of Criminal Justice Services, Department of Behavioral Health and Developmental Services, and Office of Comprehensive Services. Two non-profit organizations — Voices for Virginia Children and the National Alliance on Mental Illness of Virginia — are also participating.

The 45 additional school divisions implementing PBIS with funding from the School Climate Transformation grant will be selected through an application process developed by VDOE.


Governor McAuliffe Signs Executive Order on Reducing Energy Consumption in Virginia Government

Logo of the CRC Energy Efficiency Scheme
Logo of the CRC Energy Efficiency Scheme (Photo credit: Wikipedia)
Today at an award ceremony honoring the Department of Motor Vehicles (DMV) energy efficiency efforts at the DMV Headquarters building in Richmond, Governor Terry McAuliffe signed Executive Order 31 to reduce energy consumption in state government. 
   
DMV received the “Energy Efficiency Leader Award” in recognition of the agency’s leadership in reducing its environmental impact.  The project was completed through the Virginia Energy Performance Contracting (EPC) program, which allows state agencies to partner with private sector vendors to improve environmental systems at state-owned buildings at no cost to the taxpayers.  These improvements are paid with the savings generated from upgrading to more efficient environmental systems.

Executive Order 31 instructs all executive branch agencies, authorities, departments, and all institutions of higher education to proactively pursue energy efficiency measures, especially EPC, to reduce energy consumption.  The EO also appoints Hayes Framme as Chief Energy Efficiency Officer within the administration to oversee the planning, implementation, and measurement of energy efficiency throughout state government. 

In signing the executive order, Governor McAuliffe said, “Reducing energy consumption in state government will save taxpayers money, strengthen our energy efficiency industry and decrease Virginia’s greenhouse gas emissions. It will also set an example for businesses and families of steps that we can all take to make Virginia the most energy efficient state in the nation.”

The Governor added, “The Department of Motor Vehicles has shown tremendous leadership in proactively seeking out energy efficiency measures that reduce consumption, reduce costs, and save taxpayer dollars.  The savings achieved in this project are fantastic, 36% energy consumption reduction and annual energy savings of $284,000.  Energy efficiency makes good business sense and is a responsible way to ensure each taxpayer dollar is as productive as possible.”     

The text of Executive Order Number 31 is below:

NUMBER THIRTY ONE (2014)


CONSERVING ENERGY AND REDUCING CONSUMPTION


Importance of the Issue

The cleanest and cheapest energy is energy that is not consumed. Strong energy efficiency measures in government, businesses, and residences can reduce energy consumption, costs, and bills, diminish the need to build new generation infrastructure, and increase Virginians’ quality of life through lower carbon emissions polluting the atmosphere. Increased energy efficiency measures will serve as a stimulus to the growing energy efficiency industry in Virginia, helping create new jobs and diversifying our economy. The Commonwealth of Virginia will demonstrate the extraordinary potential and invaluable business advantages achieved with energy efficiency. 

As a prudent steward of taxpayer dollars, Virginia is dedicated to finding creative solutions with increasingly limited resources. Pursuing sensible energy efficiency in state government will increase the productivity of the energy used, reduce consumption, save money, and lessen any negative environmental impact. The Commonwealth is seeking to reduce electricity consumption in state facilities by 15% by 2017, using 2009-2010 as a baseline.

While the Commonwealth embraces the challenge of reducing energy consumption, localities, businesses, and individual consumers are encouraged to use energy efficiently, and utilize available tools to conserve energy.  

Energy Efficiency Initiatives

By the power vested in me by Article V of the Constitution of Virginia, and § 2.2-103 of theCode of Virginia, and subject always to my continuing and ultimate authority and responsibility to act in such matters, I hereby direct all executive branch agencies, authorities, departments, and all institutions of higher education, to every extent practicable, to operate in accordance with the following guidelines:

·       All state agencies should proactively pursue energy efficiency measures, especially Energy Performance Contracting (EPC), to reduce energy consumption. EPC is a budget neutral, cost-effective tool that permits state agencies and publicly-owned facilities to reduce their deferred maintenance backlogs without adding any financial burden to the taxpayer. In addition, EPC is an effective mechanism to finance capital improvements using leveraged energy savings to reduce both energy costs and consumption. For agencies that have already employed EPC, overall energy consumption should be re-evaluated to identify areas for further efficiency improvements. 

·       Agencies should utilize the current process, at no cost to the agency, which provides for a general audit to assess whether EPC is appropriate for the agency. This portion of the process is managed by the Department of Mines, Minerals, and Energy (DMME), and all agencies should work with DMME to have a general audit conducted with the goal of implementing an EPC by 2016.
             
I have appointed the Advisor for Infrastructure and Development as the Commonwealth’s Chief Energy Efficiency Officer (CEEO) to oversee planning, implementation, and measurement of energy efficiency throughout state government, as follows:

·       Organize a meeting with all agencies tasked with overseeing EPC in state government and state-certified Energy Service Companies (ESCOs) to establish a fully transparent, streamlined, and standardized process that agencies will use to implement EPC. This will include the development of an “EPC Roadmap” that will lay out each step of the EPC process, and ensure accountability among agencies and the ESCOs at each stage of project development and implementation.

·       Coordinate with SCHEV to identify the deferred maintenance needs at each higher education institution and the opportunities to leverage energy savings to fund building infrastructure upgrades.

·       Work with the Department of General Services (DGS) and DMME to identify and prioritize state facilities that offer opportunities for significant cost and consumption reduction. 

·       Work with DMME to establish a comprehensive system to measure, verify, and track energy consumption in state facilities. 

·       Re-commission electrical equipment and systems in publicly-owned facilities, when needed.

·       Ensure that DMME reviews all annual project performance reports submitted by ESCOs to the agencies.

·       Work with subject matter experts to identify best practices to incentivize individuals and agencies regarding energy efficiency measures. Those who show leadership in energy efficiency, regardless of agency and project size, will be recognized. 


Effective Date of the Executive Order

This Executive Order shall be effective upon signing and shall remain in force and effect from its signing unless amended or rescinded by further executive order.
           
Given under my hand and under the Seal of the Commonwealth of Virginia, this 16th day of October, 2014.








Terence R. McAuliffe, Governor









Attest:             _______________________________________
                        Levar M. Stoney, Secretary of the Commonwealth

Fuel the economy but do not expend any energy doing so?  An expanding economy requires more energy.  Are we speaking about shrinking the economy here?  Common Sense need not apply!

Governor McAuliffe Announces Actions on the FY2015 Budget


At a press conference in Richmond, Governor Terry McAuliffe announced the savings actions he will execute to eliminate the revenue shortfall in the Virginia budget for Fiscal Year 2015.
Due to revenue collections that came in under the budget projection set in 2013, the Governor asked executive branch agencies to submit budget reduction plans of 5% for Fiscal Year 2015 and 7% for Fiscal Year 2016 in order to close an $882 million budget deficit. Today’s announcement focused on the Governor’s budget reduction strategies for FY2015. 
“Making these budget reductions has been the most difficult experience of my term so far,”said Governor McAuliffe.  “In a government as lean and well-run as ours, there are few spending cuts you can make without impacting the lives of Virginians. The goal was to keep lay-offs to a minimum and protect our core services. The budget I present in December will be a sound and balanced approach to navigating the challenges we face and building a foundation for a stronger economic future.”
Below are a copy of the Governor’s prepared remarks.


Governor’s Remarks - Budget Savings Plan Announcement

Good Morning.  Thank you for being with me here today.

Today, I am here to announce my actions on the budget for fiscal year 2015.  After much deliberation, discussions and hard decisions, I am presenting today the approved budget savings plan. 

Before I begin, I want to discuss the process, which is almost as important as the outcome. 

When I came into office in January, I promised to work together with the General Assembly to find common ground on issues of importance to all citizens of the Commonwealth.    From SOL reform to transportation prioritization to job creation, we came together to make Virginia a better place to live, work and prosper. 

Toward the end of the fiscal year, we started to see revenues not meet the forecast set out in 2013, before I took office.  This would create a shortfall for fiscal year 2014. 

I took immediate action.

First, I notified the leadership of the money committees and promised to work with them every step of the way to fill this shortfall.

Second, I directed all agencies to be prudent and curb any excess spending.

The General Assembly created budgetary reserves totaling $846 million in the current Appropriations Act.  In addition, $705 million could be withdrawn from the Revenue Stabilization Fund during the two year period.  These two items provide a “cushion” of $1.55 billion to address the revenue shortfall.   

Unfortunately, this wasn’t enough. 

The total shortfall in the new interim forecast is projected to be $2.4 billion. This means the problem remaining is $882 million.   Of this amount, $346 million will have to be found in this fiscal year, while $536 will be needed in fiscal year 2016. 

On August 15th, I asked all agencies to submit budget reduction plans of five percent in fiscal year 2015 and seven percent in fiscal year 2016.  These plans were due on September 19th to my office. 

During this time, I worked closely with the leadership of the General Assembly to set out the parameters for the cuts.  The outcome was HB 5010, a supplemental appropriations bill that outlined the process and the amount of cuts from four areas:
  • From executive branch agencies, $92.4 million in FY15 and $100 million in FY16
  • $45 million each year from higher education
  • $30 million each year from local governments
  • $102 million in unobligated balances in FY15 and $262 million in FY16

In addition, the bill authorized use of the Revenue Stabilization Fund for both fiscal years 2015 and 2016. 

I asked for three things to be a part of HB 5010, and I am glad to see they were all included in that legislation. 

The first request was that there would be no cuts to K-12 education in the first year.  We need to protect our core services including K-12.  All school divisions have already started the school year with a set budget adopted last spring. 

It would be irresponsible to make changes now.

Second, I asked that the money designated for “A Healthy Virginia”, my healthcare access plan, be preserved.  This bill gives me flexibility to utilize the remaining balance in the Health Care Fund to move forward with these much needed initiatives.

Finally, this budget bill allows me to reallocate $5 million for economic development and workforce training - both top priorities of mine.   

Making these decisions today has been an exhaustive process.  We have worked hard over the past few weeks to get to where we are today.  Some initial options were unacceptable, and we had to ask for a different strategy. 

My goal was to keep lay-offs to a minimum and protect our core services.  The 565 lay-offs that will result from these actions comprise just half a percent of our state workforce of 120,000 full time equivalents, both wage and salary. Ninety percent of these lay-offs are from the Department of Corrections alone. 

I have been working with the Department of Human Resource Management and have put a plan in place to give these individuals the resources they need to find future employment.  Had we not prioritized state employee jobs, this situation could have been far worse. 

In addition to our efforts limiting layoffs, these are some of the other themes that define the actions we are announcing today:

  • We are improving business practices and efficiencies
  • We are eliminating unneeded contractors, including outside consultants and attorneys. 
  • We are leaving vacant positions unfilled. 
  • We are using nongeneral fund money instead of general funds when feasible and allowed by law or contract. 

Specifically, we are doing the following:

  • For Department of Corrections, we are closing a correctional facility, a community corrections residential facility, a diversion center and delaying the opening of a women’s correctional facility.   This equates to $4 million in savings for FY 15
  • In the Department of Social Services, we are using one-time child care remaining balance of $2.7 million
  • For state police, we are selling one airplane and only filling 27 out of the 68 vacant trooper positions.  In addition, the state police will find an additional $4 million in operational efficiencies
  • For ABC, we are increasing the product mark-up on distilled spirits resulting in $2.5 million. 


On December 17th, I will present to the General Assembly the budget for fiscal year 2016. 

We will continue to review the 7% cuts in the second year, and I am not ready to make these decisions at this time. 

I have asked my staff to look at alternatives. Let me be clear - everything is on the table.

If we can preserve core services that Virginians need by adjusting fees or eliminating tax preferences, we should. The budget I present in December will be a sound and balanced approach to navigating the challenges we face and building a foundation for a stronger economic future. I have enjoyed a strong working partnership with the leadership of the General Assembly on these issues so far, and I am looking forward to continuing our collaborative work in the 2015 session.

Making these budget reductions has been the most difficult experience of my term so far. In a government as lean and well-run as ours, there are few spending cuts you can make without impacting the lives of Virginians.

While this budget plan represents a sensible approach, I am cautiously optimistic about the fiscal future ahead. Some areas of the economy are recovering slowly while other areas remain stagnant. It is my hope that we have set our revenue estimate low enough that our slow recovery may boost our budget to the point where we could begin to undo some of these cuts and strengthen the investments our economy needs. But until we actually see that happen, we have a responsibility to remain cautious in the face of an uncertain future.

Later today I will meet with the Joint Advisory Board of Economists (JABE) to seek their council.  I will heed their advice as well as the Governor’s Advisory Council on Revenue Estimates when they meet on November 24th.  

While I believe they too will remain cautious, the news has not been all bad. As we announced yesterday, preliminary total revenues for the month of September were up 5.3 percent and through the first quarter of fiscal year 2015 they are up 6.7 percent, ahead of the annual estimate of 2.9 percent. 

This is the first time revenues have increased three months in a row since the second quarter of calendar year 2013. 

Payroll withholding came in strong with 8.3 percent for the month due to an additional deposit day.  Sales tax collections are up about 3.5 percent for the month and are up 4.6 percent for the quarter.  This is ahead of the projected growth of 4.4 percent.

Recordation taxes finally had a positive month after falling for 13 straight months.  We saw a 1.9 percent growth in the month of September.

Even though this is positive news, we need to be prudent in the fiscal decisions we make. 

As we saw last year, an unexpected revenue decline could be just around the corner. In the midst of uncertainty over sequestration and the federal budget, we have an obligation to prepare Virginia as much as possible for the reduction in federal spending that we know is coming.

The reductions we are announcing today are a short-term response intended to insulate Virginia from the possibility of even further cuts. And in the long-term, as I have said before, we must work together to grow and diversify our state economy so that we are no longer subject to Washington uncertainty.

And so my focus will remain on building a new Virginia economy that is stronger, more independent and more resilient. My administration is hard at work pursuing that goal on all fronts.

We are working to strengthen our education and workforce development system so that we are giving every student the skills he or she needs in a 21st Century economy.

Yesterday, we unveiled the 2014 Virginia Energy Plan, which will help drive our economy into the future by growing key sectors like wind, solar, nuclear technology and natural gas so that we can offer businesses the cheapest, cleanest and most abundant energy in the nation.

We are continuing to grow and strengthen our transportation infrastructure in ways that encourage economic growth and raise Virginia’s quality of life.

Our outstanding quality of life, world class workforce and outstanding infrastructure are real assets.  And so is Virginia’s long-standing reputation for sound management, even in the face of difficult situations.

This budget shortfall is not what I had hoped to be dealing with in my first year as Governor, but I am proud of the manner in which leaders on both sides of the aisle came together to address it.

Thanks to the hard work of Secretary Ric Brown and his team, who worked alongside Chairmen Colgan, Stosch, Jones and their staff, we are meeting these challenges in a way that protects our core assets, minimizes layoffs, and positions our Commonwealth for future growth.

While I know we all hope that the budget news from here forward will be more positive, all Virginians should be encouraged to know that their leaders are capable of coming together to get things done for the good of the Commonwealth.

Thank you.  I will now be happy to take a few questions.