The needs of an expanding population for governmental services, and the change of our society from a largely rural to a predominantly urban society, has confronted Virginia with increasing revenue requirements. The General Assembly of 1962, aware of these factors and desiring information upon which to base changes as required in public policy, adopted Chapter 4 providing for the creation of a Commission to Study State and Local Revenues and Expenditures and Related Matters and to report thereon.

Pursuant to the Act, the Governor appointed the following members: Honorable Thos. B. Stanley, Chairman, former Governor of Virginia, businessman, Stanleytown; Alan S. Donnahoe, Assistant Publisher, Richmond Newspapers, Richmond; W. Fred Duckworth, former Mayor, City of Norfolk; businessman, Norfolk; Burr P. Harrison, former member of Congress, Attorney, Winchester; Daniel C. Lewis, Assistant to the President, Chesapeake Corporation of Virginia, businessman, West Point; Waldo G. Miles, State Board of Education, Attorney, Bristol; C. W. Peebles, businessman, Lawrenceville; C. Braxton Valentine, Jr., Attorney, Alexandria; and C.H. Morrissett, State Tax Commissioner, ex officio member, Richmond. The Speaker of the House of Delegates appointed the following from the membership of the House: John Warren Cooke, Mathews; Lewis A. McMurran, Jr., Newport News; Samuel E. Pope, Drewryville; and H. Ray Webber, Low Moor. Upon the untimely death of Mr. Webber, Earle M. Brown, Lynchburg, was appointed to fill the vacancy; the President of the Senate appointed from the membership of the Senate Dr. J. D. Hagood, Clover; E. O. McCue, Jr., Charlottesville; and FitzGerald Bemiss, Richmond. The Governor was authorized to designate the Chairman of the Commission and appointed former Governor Stanley to fill this office. Dr. Hagood was elected Vice-Chairman.

The Commission met May 21, 1962, discussed its assignment, and authorized the appointment by the Chairman of an Executive Committee. He appointed the following: Messrs. Stanley and Hagood, ex officio; Bemiss, Cooke, Duckworth, Harrison, and Morrissett. John B. Boatwright, Jr. was appointed secretary.

Dr. Lorin A. Thompson was suggested as consultant to the Commission. An outline of the study was developed by Dr. Thompson after meeting with members of the Executive Committee. This was presented to the full Commission at its meeting on June 25, 1962, at which time Dr. Thompson was formally asked to serve as consultant. Subsequently, Dr. Thompson prepared extensive source material on the revenues, expenditures, and general finances of the State and local governments.

The Commission held five public hearings. These were he1d in 1962 at Wytheville, October 2; Roanoke, October 3; Norfolk, October 9; Richmond, October 10; and Warrenton, October 11. These meetings were publicized well in advance and persons or organizations wishing to be heard were advised to prepare memoranda or written statements in behalf of their cause to file in addition to their oral presentations. Many useful documents were filed with the Commission, recommending changes and modifications in the existing tax structure. The suggestions were studied and given careful consideration by the Commission.

The Chairman divided the work of the Commission into three general subject areas and appointed three Committees to work specifically in these areas. The Committees and their membership are as follows:

Committee I-Committee on Local Revenues and Expenditures; FitzGerald Bemiss, Chairman; W. Fred Duckworth, Earle M. Brown, C. W. Peebles, and Samuel E. Pope.

Committee II-Committee on the Study of Grants-in-Aid; Lewis A. McMurran, Jr., Chairman; Daniel C. Lewis, E. 0, McCue, and Waldo G. Miles.

Committee III-Committee on State Revenues and Expenditures; John Warren Cooke, Chairman; Alan S. Donnahoe, C. Braxton Valentine, Jr., and Burr P. Harrison.

The ex officio members of all three committees are Governor Stanley and Dr. Hagood. Dr. Thompson and Mr. Morrissett attended the committee meetings to assist in gathering and analyzing facts and recommendations.