(The Center Square) – Speakers at an event held at the Capitol on Monday warned that labor, energy and tax proposals could increase costs for businesses and residents as first-term Democratic Gov. Abigail Spanberger faced a deadline to act on legislation passed during the General Assembly session.
They also referenced other states, including Tennessee and North Carolina, as examples of places with lower taxes and fewer regulations they said are drawing residents and businesses.
“Those three bills alone will increase the cost of employment in Virginia by 22%,” said Derrick Max, president of the Thomas Jefferson Institute for Public Policy. “That is not affordability. That is economic suicide.”
Max was referring to legislation raising the state’s minimum wage, expanding paid sick leave requirements and creating a paid family and medical leave program.
Max said the policies would be especially difficult for small businesses and rural communities that may not have the resources to absorb additional labor costs, adding that those costs are likely to be passed on to workers and consumers.
Speakers also raised concerns about energy policy, including the state’s participation in the Regional Greenhouse Gas Initiative. They said it adds costs for ratepayers, as well as reliance on out-of-state energy sources.
Max said participation in the program amounts to about $500 million annually in costs for ratepayers and said projected spending tied to current energy policies could reach $26 billion over the next three years without producing additional energy output.
They also raised concerns about collective bargaining policies, warning that changes to labor regulations could affect business costs and economic growth.
The governor’s office said Monday that some tax-related proposals discussed this session were never passed by the General Assembly and did not reach her desk, including measures that would have expanded the state sales tax to certain services and added new taxes on areas such as deliveries and digital services.
The event took place as Spanberger considered hundreds of bills awaiting action, ranging from minor administrative changes to broader policies affecting energy, labor and taxation.
During the event, organizers announced the formation of the Jefferson Forum, a new policy group created through the merger of the Thomas Jefferson Institute for Public Policy and the Yorktown Foundation.
Max will serve as vice president of policy for the Jefferson Forum.
Peter Lipsett, chairman of the Jefferson Forum, said the combined organization is intended to expand its role in shaping policy discussions in Virginia and bring together business leaders, policymakers and citizens around economic and regulatory issues.
He said the group plans to focus on taxes, energy, education and workforce policy, with an emphasis on long-term economic growth and affordability.
Todd Hester, president of the Yorktown Foundation, will serve as vice president of strategic initiatives. He said the group aims to focus on applying policy ideas in ways that produce measurable outcomes, including expanding education options through scholarship programs and promoting economic mobility through school choice initiatives.
Organizers said the Jefferson Forum aims to build a broader policy network in Virginia that is not tied to one political party, but instead focused on advancing free market ideas, limited government and policies they believe will improve economic outcomes.
“We are not politicians,” Lipsett said. “We are not beholden to any party. We will applaud when leaders do well and speak out when they do not.”
