Leadership During Tough Economic Times

by Donna Morris, Executive Vice President of the Hampton Roads Partnership

“We are absolutely joined at the hip by geography and economy,” said Norfolk Mayor Paul Fraim. “Everyday, it becomes more clear that we will weather this economic downturn together or not at all.”

Three distinguished Mayors from Hampton Roads came together to discuss “Leadership During Tough Economic Times” as part of Regent University’s Executive Leadership Series.

The Honorable Paul Fraim, Mayor of Norfolk and a founding member of the Hampton Roads Partnership, began the discussion by sharing a few of the impacts a downturn in the economy will have on his city. He said despite the fact the regional economy is outperforming the nation these will be very challenging times for local governments. The City of Norfolk is looking at a $35 million gap in their operating budget. The Constitution requires localities to have balanced budgets so cuts will be inevitable. Personnel costs make up roughly 75% of the city’s total expenditures. In tough times like these programs will be reduced or totally eliminated. Currently the city is conducting a fundamental review of all services, looking to preserve the most essential.

Mayor Fraim says tough times provide us with an opportunity to reinvent how we do business – looking at ways to be more cost effective, redefining levels of service that is data driven , and tapping the resourcefulness found in employees. City employees can be a great source of ideas when it comes to improving services and becoming more efficient in delivering those services. The public also will play a key role in helping to set priorities.

He noted that 35% of Norfolk’s land is off the tax rolls, there is a higher poverty level and older housing stock. City priorities include education, public safety, new mass transit, and downtown revitalization.

Norfolk is looking to work with other communities in the region to share best practices, whether in the area of human services or transportation. Finding ways to be more efficient through shared services such as employee health insurance or marketing/promotional efforts. A prime example of the value of working together has been the collaborative effort to end homelessness, involving several communities in the region.

The closure of the Jordan Bridge coupled with the rebuilding of the Gilmerton Bridge (due to commence in May) is an important and necessary to connect the workforce with jobs. Mayor Fraim presented the statistics that point to the fact our economies are interwoven – 65,000 jobs in Norfolk are filled by residents of Virginia Beach and 30,000 from Chesapeake, in other words 43% of Norfolk’s workforce comes from these neighboring cities. Sixteen percent of Norfolk’s residents drive to Chesapeake and Virginia Beach to work.

“We are joined at the hip by geography and economy. We must work closely as a region – we are in this together,” stated Mayor Fraim. “What is good for Virginia Beach and Chesapeake is good for Norfolk. What helps one – helps all.”

Virginia Beach Mayor, The Honorable William Sessoms reinforced the point that it is vital to work together – sharing ideas and collaborating on strategies for the good of all. He said Hampton Roads is fortunate to be faring better than most regions because of the federal presence.

Mayor Sessoms described the city’s plan to focus on preserving their AAA bond rating; doing more with less; increasing partnerships (like the homelessness initiative, light rail, support for the Regional Transportation Plan; Economic Development focused on creating higher paying jobs); new transit; supporting the military; and, remaining true to the vision.

The Mayor noted how critically important the military presence is to our economy, representing 45% of our gross regional product. He stated “We must support the Outlying Landing Field (OLF) – it is a National Security issue, it’s not about Virginia Beach.” He also said we must support Little Creek and work hard to keep nuclear aircraft carriers based in Norfolk.

He said the City of Virginia Beach remains true to the a vision that includes shaping future growth, seeking public input and learning from the success of neighboring communities. He concluded by saying “Let us become the model for others to follow.”

Mayor Alan Krasnoff from the City of Chesapeake is also a charter member of the Hampton Roads Partnership Board. In 1996 Mayor Krasnoff was a member of Chesapeake City Council , serving as chair of the Hampton Roads Planning District Commission (HRPDC). He said Chesapeake, as with other communities of the region, is fortunate, but not immune to the financial challenges of the times. He said we must have “faith to weather the storm.”

Mayor Krasnoff stated the times afford us the opportunity to redefine the core of our cities with the leadership necessary to seize the challenges. The times demand the need to form consensus (referring to it as an essential tool to use).

He discussed some of the differences between politics and governance – like “playing it safe” versus “saying no” if that is best course of action. He emphasized the importance of focusing on issues and opportunities rather than competing. He suggested consolidating services where it makes sense noting the Southeastern Public Service Authority (SPSA) was a good idea, a way to meet a common need with a regional approach. Their recent troubles stemming from a lack of oversight doesn’t mean we need to give up on the good idea.

Regent University‘s Executive Director of Advancement and University Events Baxter Ennis tossed out the idea of bringing all of the region’s mayors and chairs together for a similar event next year.

The Mayors speaking at this event were passionate and sincere in their commitment to regional cooperation. It was afternoon well spent.