Virginia's governor looks over his first year, calls it 'fair'

RICHMOND

Gov. Bob McDonnell was all smiles on a breezy day in late March as he stood outside the State Capitol to discuss the prospect of drilling off Virginia's coast.

At the time, the venture was seen as the payoff for his dogged pursuit of federal clearance for offshore energy exploration as a way to create new jobs, tax revenue and money for roads.

But the excitement gave way to disappointment after the BP oil spill in the Gulf of Mexico prompted the Obama administration to reverse its decision on drilling.

It's been that kind of year for McDonnell.

Though some of his proposals have been greeted with skepticism - plans to privatize the state liquor system, and issue billions in debt for roads, for example - the Republican governor also can claim policy achievements despite obstacles posed by a still-hobbled economy.

"This is not a good time to be governor," said University of Virginia political science professor Larry Sabato. "You're not going to get a lot done. You're just not. You don't have a lot of money to play with."

Good times or not, McDonnell rates his job performance during a busy 11-1/2 months as adequate. "I give myself a 'fair,' " the governor said in a recent interview in his Capitol office.

"We're all about getting results. Rhetoric is nice, effort is nice, but that doesn't matter. The only thing that matters is actually getting results."

Among those results are General Assembly support for an economic development package worth more than $50 million; McDonnell is asking for an additional $54 million to help bring business to Virginia.

On his watch, Virginia has gained about 67,900 new jobs, outpacing most states in job growth over that time.

But while Virginia has an unemployment rate lower than the national average of 9.3 percent, McDonnell knows "it's not success when you have 280,000 people in your state that can't find a job."

The state's jobless rate is 6.6 percent, according to the Virginia Employment Commission.

State finances required cuts in the budget to balance the two-year spending plan without raising taxes. Virginia also put off an investment in its underfunded pension plan, and lawmakers face further reductions in 2011.

One of McDonnell's current budget amendments would make state employees foot a share of their retirement costs, which the state historically has covered, to help shore up a pension fund shortfall of more than $17 billion.

Replenishing the retirement system, improving Virginians' access to college and addressing Medicaid expenses are some of the issues that McDonnell will tackle over his remaining time in office.

How he handles those challenges could define his legacy, though the governor says he isn't concerned with how he's cast.

"These are problems that affect the quality of life of our people, and I got elected to fix them," McDonnell said. "And if I'm successful at fixing them, I'll let somebody else talk about how well I did."

The inability to solve the state transportation funding issue has plagued several governors and looms as a possible albatross for McDonnell, too.

Loath to raise taxes as some Democrats would prefer, McDonnell has audited the state highway department to find efficiencies. He's also offered a glimpse of a road plan that relies on nearly $3 billion in bonds.

Several lawmakers panned the proposal. Others carped that they weren't consulted ahead of time, and some critics noted the irony of a governor who has railed against federal deficits seeking approval to borrow billions.

Another concern is how that plan would affect the state's debt capacity. Administration officials argue, however, that now is the time to build and borrow, with interest rates low and contractors hungry for work.

Ben March, state director of Americans for Prosperity, commended the governor for reducing spending but said the administration should do better at getting "people on board with your plan before you unveil it."

"Like any new administration," he added, "there are going to be bumps in the early days, but these aren't anything they can't recover from."

Del. John Cosgrove, a Republican from Chesapeake, dismissed complaints about communication between the administration and lawmakers as a byproduct of bruised egos.

"It's impossible to communicate with 140 legislators" on every issue "who may get their nose bent out of joint because they weren't the first call," said Cosgrove, who praised McDonnell's tenacity.

The governor remains committed to removing the state from the direct sale of distilled spirits even though he couldn't muster sufficient legislative support to proceed with a General Assembly special session in the fall.

"I've carried bills in the General Assembly that took a couple decades to get passed. So I'm going to be patient and persistent," McDonnell said when asked about the liquor plan. He is expected to back several government restructuring proposals in the upcoming legislative session.

That same resolve helped McDonnell recover from controversy, such as the one that arose when he issued a Confederate History Month proclamation that initially omitted slavery.

It also carried him through questions about a felon rights restoration program that initially drew complaints but now is generally viewed as effective.

Whether being praised or denounced, McDonnell has maintaining an image as a "moderate conservative" and "statesman" that fits with the current mood of Virginia's electorate, Sabato said.

And while the governor says he sees much to dislike in Washington, there's plenty to keep him occupied in Richmond for the next three years, regardless of the national speculation hovering around him.

"I'm not running for president," he said. "I'm thrilled to be governor of Virginia."