Governor candidates spar over economic plans

VIRGINIA BEACH

The two men who want to be governor emphasized different tactics for jump-starting Virginia's economy while explaining themselves to about 300 business people Thursday.

Former Attorney General Bob McDonnell, a Republican, said the key is helping entrepreneurs. State. Sen. Creigh Deeds, a Democrat, said his first task has to be fixing the state's transportation problems.

The two spoke separately at a luncheon hosted by the Hampton Roads Chamber of Commerce and Virginia Beach Vision. Each was greeted with a standing ovation when introduced at the Westin Virginia Beach Town Center.

"It's going to be the free enterprise system that is strengthened and supported to whatever degree possible by government that will help us grow our way out of this," McDonnell said. "I think it all starts with the entrepreneur, the small business person.... I'd like to see the next Steve Jobs or Bill Gates come from right here."

McDonnell reiterated his desire to make changes in government procedures to assist small businesses and make the state competitive for jobs against overseas rivals.

"It's bad enough that we've got the second-highest corporate income tax rate in the world," McDonnell said. "You saw what happened in Ireland and Singapore when they cut that corporate income tax rate. They had an economic resurgence that people are still talking about."

Forty minutes later, Deeds said government's first job is roads.

"There's probably no quicker way to unlock the potential for economic growth and resilience than to break the legislative bulkhead and pass a plan to fund transportation," he said. It was the only comment by either candidate that was interrupted by applause.

"This is a statewide problem," he said. "We've got opportunities we're missing every single day."

He restated his pledge to support a transportation funding bill that could include tax increases if the General Assembly can agree on a bipartisan plan for the state's road and mass transit needs. Deeds has not said what type of revenue increase he would support, except that it ought to be related to transportation. Beyond that, the details need to be decided by both Democratic and Republican lawmakers, he said.

While answering questions from the audience, Deeds was strongly challenged by an unidentified man who asked how he could consider a tax increase during an economic recession.

"What I'm saying is we have to be honest about transportation," Deeds said. "We can pretend it's not an issue. If that's the kind of leader you want, then don't vote for me."

McDonnell, who said he has his own plan for roads, had been critical of Deeds for suggesting that tax increases have to be considered.

McDonnell has proposed a transportation funding plan that includes, among other things, using revenue from Hampton Roads' ports, privatizing state liquor stores, using part of the sales taxes in Northern Virginia and using income from future offshore drilling.

Deeds argues that his opponent's plan is "dead on arrival" because it doesn't have strong political support.

In a lighter moment, McDonnell, who at one time represented part of Virginia Beach in the state legislature, referred to his seemingly contradictory campaign materials. In this region, his signs call him "Hampton Roads' own" but in Northern Virginia, where he was raised, they say he's Fairfax's favorite son.

"What I'm trying to tell you is I'm your local candidate all over the state," he said with a smile. "It doesn't matter where you live, I'm your local candidate."

Bill Bartel, (757) 446-2398, bill.bartel@pilotonline.com