News Release
FOR IMMEDIATE RELEASE

Date:Thursday, July 29, 1999
Contact:Angelita Plemmer, City Manager's Office, (703) 838-4300; Art Collins, Hampton Roads Planning District Commission ; (757) 420-8300 or Bernie Caton, City of Alexandria (703) 838-3828 or ; Rita Henderson, City of Richmond (804) 780-7977

Top elected officials from Virginia's most populous regions today released a position paper on fiscal issues for local government as a guide to changing Virginia's revenue and tax structure.
Copies of the position paper and letters will be sent to Governor Gilmore, members of the General Assembly, the Commission on the Future of Virginia's Cities and to members of the Commission on Virginia's State and Local Tax Structure for the 21st Century.

The members of the Urban Crescent Mayors and Chairs Caucus are from regions representing 65% of the population and 68% of the jobs in the Commonwealth. They expressed appreciation for the efforts made by the Governor and General Assembly to restore funding to the HB 599 program and for the establishment of a commission to study Virginia's tax structure, and offered their position paper as guidance for changes in that structure.

These county and city leaders also pledged to work with the new commission, as well as the Governor and General Assembly, to craft a strategy in response to the fiscal challenges ahead. Three areas for action were offered: changes in the sharing of service responsibilities; new mechanisms for revenue sharing; and new local revenue sources.

Central to the principles put forth in the position paper is the fact that local governments have relied on three major sources of revenue: the real property tax, the personal property tax and the sales tax. All of these sources are becoming increasingly limited in terms of providing revenues sufficient to finance long-term expenditures and growth in Virginia's urban areas. At the same time, state revenues have shown record surpluses based on growth in income tax revenues, reflecting a strong economy and low unemployment rate.

The Urban Crescent Mayors and Chairs Caucus met regularly over the last year to discuss these issues and develop the principles put forth in the position paper.