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State Roundup:
November 11, 1999
Silicon Dominion Goes GOP
Virginia may be considered horse country, but it was a herd of elephants that dotted the Old Dominion's landscape last week. In elections for the state's legislature, the Republican party gained control of the House of Delegates and Senate, marking the first time the state ceded control of both houses to the GOP. Virginia Republicans will control the House of Delegates with a 52-47 advantage, and the party retained its 21-19 majority in the state Senate. Headlines around the nation heralded the outcome as one of the most significant election day stories, and Jim Gilmore's smile broadened with the notion that as a Republican governor, he would have even greater control of the state's government.
The campaigns were conducted with a staggering amount of donations including a heavy dose from the state's high-tech community. The industry is often regarded as politically ambivalent, and the high-tech sector in Northern Virginia has been criticized for playing a more active role in federal government actions across the Potomac River than in the commonwealth. But with Gilmore's continued push to become a national presence in technology, the industry has taken notice of state political comings and goings. For example, news reports indicated that technology companies gave $1.5 million to Virginia's legislative candidates, two-thirds of them Republicans.
Now the state has skewed firmly to the right, but any future impact that they may have on the tech industry is unclear. Politicians on both sides of the aisle have been sympathetic to technology's concerns, and Gilmore's initiatives in the area have received strong bipartisan support.
GOP Gets Net Worth
So it seems unlikely that the election results will have a pervasive impact on the technology companies that have become the darlings of the Silicon Dominion. Douglas Koelemay, vice president of public affairs for the Northern Virginia Technology Council, says that he expects Gilmore's trend of supporting tech-friendly policies to continue and doesn't anticipate much change. He acknowledges that the governor has received a bulk of contributions from the industry, but chalks that up to a simple principle: businesses give to the most powerful leader in the state. But now that the executive and legislative branches are controlled by the same party may make it easier to push through any piece of legislation, and that's good news, Koelemay said.
"It's more a partisan victory," he said. "I wouldn't characterize it as a plus or a minus for tech, but any time a governor feels more confident, like he can move ahead faster, that usually works for us. Our agenda is really future oriented, so if he gets a little bolder that probably also works for us."
Wait For The Money
A little bravado could show as soon as next month, when Gilmore reveals the state's budget. Virginia keeps governors to one term apiece, and schedules two-year budget allotments. This will be Gilmore's first spending plan, and insiders say it will contain a plethora of technology-related items.
"I can tell you the focus and theme (of the budget) is going to be technology," said Secretary of Technology Don Upson. "He'll come out with a significant agenda for research and development, electronic government, education" and a host of other areas.
Officials say the state also will take up the issue of opening cable companies' lines to rival Internet service providers. On Monday, Richmond voted against forcing cable companies to open their high-speed Internet networks to competitors. But the administration has yet to develop a position and Upson said the lobbying groups are out in full force, hoping to sway the final verdict.
Gilmore is also hard at work in the national scene, and this week released his proposal on the taxation of e-commerce to the Advisory Commission on Electronic Commerce, which he chairs. The announcement of his plan came as a surprise to some followers of the group, as Gilmore had remained adamant that his role as chairman dictates neutrality on the issue, though he has not been shy to make his anti-tax sentiments known. Gilmore's proposal eliminates sales taxes on remote purchases, prohibits taxing Internet access and abolishes the federal 3 percent excise tax on telephone service. His Commission on Information Technology is also poised to make recommendations, but of a different kind. The group, comprised of 25 business leaders in Virginia as well as a host of government officials, will offer its final policy recommendations at its Dec. 9 meeting. Those will span from suggestions on taxation to privacy and will have been ironed out after almost a year of meetings.
Industry watchers also say the boost of Republicans will help pass the technology baton to the other portions of the state that have been left out of the recent Internet boom. Gilmore held the first of four Technology Outreach Symposiums on Tuesday to help secure this goal.
And so while the effects of the elections may not have an initial palpable impact on the technology community in Virginia, the industry did show how much power it wields during the election.
"I came from that community," said Upson, former vice president of strategic communications at Litton PRC, an IT unit of defense contractor Litton Industries. "For most of the time I was in Northern Virginia, we paid little attention to Richmond. But I do think starting with [Gilmore's] candidacy and agenda and recognizing that a state can play a role across the country, I think they've gotten involved like they've never gotten involved before."
by Stephanie Lash

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