Senator McEachin on the budget shortfall problem

Looming over this entire General Assembly Session has been the serious problem of the budget shortfall. With the perilous economic situation nationally and the need to address the shrinking revenues in Virginia, Virginia legislators have had to seriously consider and assess how to balance the budget. My Democratic colleagues in the Senate share my belief that we must protect critical services like public education, public safety and health care. Any cuts we propose must leave the safety net intact for the most vulnerable among us, the elderly, the young and disabled.

Fortunately President Obama (doesn’t that still sound wonderful?!) shares those priorities. His economic recovery plan has helped up close some of our funding gaps in exactly those vital areas. His plan will help us save teaching positions in schools, create and preserve jobs and eliminate some health care reductions while still allowing us to live within our means and not create debt in Virginia that would be passed on to our children and grandchildren.

Although tax revenues have dropped another $800 million, the influx of $1 billion from the stimulus allowed us to avoid any further cuts. Moreover, we were able to use the federal money to restore funding to sheriffs and police, avoid eliminating teaching positions and further cuts to health care providers. BY eliminating these cuts, we not only protected the well-being of Virginians we also made certain that jobs are preserved. Protecting jobs is critical to the future health of the Virginia economy. Employed citizens can take care of their families and pay their fair share. Those who have been laid off not only are unable to give back, but risk becoming a burden to all of us as they struggle to provide for their families.

The Republic majority House of Delegates passed a deficit budget, creating a significant budget shortfall. Now, both chambers of the legislature will have to come together to create a balanced budget. I will continue to strongly advocate to not make any further cuts in health care, education and public safety and to do everything we can to restore vital funds in those critical areas.

As the 2009 General Assembly Session draws to a close, I want to take this opportunity to thank you again for the great privilege of representing you. Please know that my door is always open and I am always happy to discuss any issue with you at any time. Please just call my legislative office at 698.7509 or email me at district09@senate.virginia.gov. I continue to update my website, www.donaldmceachin.com so please check back there often.

Boone, McEachin chat with former President Clinton

Free Press Editor/Publisher Raymond H. Boone and State Senator A. Donald McEachin had the opportunity to chat with President Bill Clinton backstage at the 2009 Virginia Jefferson-Jackson Dinner. From the Richmond Free Press:

When Odessa Smith met former President Bill Clinton, she was "excited and nervous."

But (President Clinton) is so warm, so personable," she said.

Mrs. Smith and her husband, Gus, wanted to meet the 42nd president to thank him for giving their only child, Kemba Smith, her freedom.

"His face just lit up when he found who we were," Mrs. Smith said.

* * *

The Smiths were among a small group of [Virginia Jefferson-Jackson dinner] attendees invited to greet Mr. Clinton backstage immediately after his speech.

Also among them were Free Press Editor/Publisher Raymond H. Boone and state Sen. A. Donald McEachin.

* * *

In his greeting to Mr. Clinton, Sen. McEachin said he, too, recalled the Clinton speec, saying they agree that moving Virginia forward is "about working on how to do things for the working class and the middle class."

Visit the Richmond Free Press.

Senator McEachin on regulation of Mortgage Brokers

In these perilous economic times, families have to work ever harder to afford to purchase a home and, while scrimping and saving, they still need to know they are getting a fair shake and someone is watching out for them. For many, if not most individuals, buying a home is the largest single purchase they will ever make. As purchasers, they need to wade through a complicated thicket of paperwork and regulations, forcing them to often deal with numerous bank, insurance companies and government agencies. In this entanglement they are frequently perplexed and not at all certain about who, if anyone has their best interests at heart.

With this in mind, more and more home buyers choose to work with a mortgage broker. As of 2006, mortgage brokers were originating 45% of all loans and almost 3/4 of sub-prime loans. Mortgage brokers are supposed to save buyers money by examining all aspects of potential mortgages and helping the buyers find the best match between their financial circumstances and the available mortgages. They are supposed to take a confusing process and shed light on it, reassuring their clients and saving them money. While buyers were counting on them to find them the best mortgage, many of these brokers did not act in the best interests of their client, the purchaser of the home.

To address this growing problem and to try to alleviate one of the many unfortunate circumstances in the housing market today, I have introduced a Mortgage Brokers Bill that requires brokers within the Commonwealth to act within the best interest of their clients. It codifies into law that brokers are agents for home buyers and are required to guard their interests in the purchase process. This will create greater accountability for brokers and will offer redress for buyers who feel their interests have been ignored or, even worse, overrun.

This bill will assist in eliminating dishonest and malicious mortgage brokers. Those who have been doing their job, protecting their clients and helping home buyers will see no change in their situation and will not need to do anything different. Only those who mislead buyers and engage in deceptive and dishonest practices will now find themselves on the wrong side of the law with clear recourse for their unhappy customers. This legislation does not hamstring brokers and allows them the flexibility to do the best job they can and to explore all options. It leaves all doors open, as long as the broker is acting for the client, protecting his or her interests and providing the best options from which to choose.

The legislation has no costs attached, nor it will require any burdensome paperwork for either brokers or buyers. It very simply just adds some accountability to the mortgage procedure and, more importantly, provides some protection to home buyers as they work through a very cumbersome, confusing, expensive and of times frightening process. This bill is one more piece in a package assembled by a bipartisan group of legislators to protect home buyers, facilitate and home buying and assist the housing market which is a critical cog in our economic engine. When families can get good deals so they purchase homes, our economy will have made one more critical step in its recovery.

If you would like to talk to me about this or any other issue, please feel free to contact me at the General Assembly at district09@senate.virginia.gov or by phone at (804) 698.7509. I look forward to hearing from you.

Kappa Alpha Psi holds First Annual Virginia Legislative Day at Virginia State Capitol

Sen. Donald McEachin (D-Henrico) was pleased to host the Kappa Alpha Psi fraternity on their first annual Virginia Legislative Day on February 10th. The brothers were introduced in both chambers and had the opportunity to meet wtih state officials on many issues. The day ended with the brothers attending a Virginia Black Legislative Caucus meeting.

Kappa Alpha Psi is the first black fraternity to have such a day at the Virginia State Capitol.

Senator McEachin discusses housing legislation

All of the symptoms of the slumping economy – job losses, a shrunken housing market, the tightening of credit, the stock market dives - impact middle class families and those less fortunate. To reinvigorate this economy and give folks a chance to get ahead again we are going to have to improve people’s financial situations and those of business and industry. A critical area for this, for both the welfare of people and the economy is housing.

Everyone deserves an opportunity for safe, decent shelter where they can feel comfortable and make their living situation into a home. Moreover, expanding this opportunity will also reinvigorate the housing industry, a critical component of our economy. That is why Delegate Peace and I formed a bipartisan group of legislators to address these intertwined issues. In addition to offering legislation to provide incentives for landlords to accept public housing vouchers and a bill to insist that mortgage brokers act in the best interests of their clients, I have also submitted a proposal for first time homebuyers to receive a tax credit if they purchase a home this calendar year. The credit would be for $2500 for those who are married filing jointly and $1250 for single taxpayers and is repayable over a ten year period.

My hope is that this legislation will help to make homeownership more accessible to more people and, by doing so, create an important boost for the housing industry. As people enter the housing market for the first time, homeowners will be able to sell houses, moving into different homes and creating more activity in the market. This activity will have a domino effect. As more people apply for credit, more credit will become available. As homes are bought and sold, confidence in the economy will grow and economic activity will increase. Most economists believe that is the key to making the economy whole again, that while we have significant tangible problems, one of the most serious is lack of confidence in the economy and, therefore, lack of economic activity. I am hoping that this bill can help address this specific problem.

Many of us may disagree about how we provide the opportunity for decent housing and homeownership to Virginians, but we all should and must agree that the opportunity must exist. This package of bills, put forth with bipartisan support, demonstrates that Virginia legislators, from both sides of the aisle, recognize the importance of quality shelter, the possibility of homeownership and the remedying of our economic woes. With the passage of these bills, I believe we will have taken some important steps in that direction.

If you would like more information on the General Assembly, please go to my website, www.donaldmceachin.com or email me at district09@senate.virginia.gov or call me at (804) 698.7509. I am here to serve you and am always eager to hear from you.

Senator McEachin introduces energy efficiency bill

From the Richmond Times Dispatch:

Sen. Donald McEachin (D-Henrico) has just introduced a bill (SB 1447) in the Virginia General Assembly that achieves the three core goals of a good efficiency policy. The bill would keep power demand mostly constant through 2025 as a matter of state mandate, not a voluntary "goal." It would apply to aggregate annual power demand, not just "peak" use during the summer. And the bill would -- by law -- reward Dominion and other utilities for efficiency gains at a rate just as profitable as coal combustion. Maryland and four other states already have similar policies.

With an economy in free fall and real voters losing real jobs across the commonwealth, doesn't this make sense? The General Assembly should pass the McEachin bill as soon as possible and Gov. Kaine should sign it.

You can read the entire article here.