HD13 - Review of the Virginia Liaison Office


Executive Summary:
The operations of the Virginia Liaison Office (VLO) are largely in conformance with the requirements of the office’s statutory mandate in the Code of Virginia. The requirements of the Code, however, are far more extensive than can be effectively performed by a three-person office. Consequently, the office has historically prioritized its activities, leaving some statutorily mandated responsibilities unmet.

Despite limited staffing, the VLO successfully accomplishes most of its responsibilities. These responsibilities, principally monitoring and influencing federal activities from a statewide perspective, are as important today as they were when the office was established in 1978. Consequently, it is recommended that the VLO be continued and that funding for FY 1998 be restored. Further, the General Assembly may wish to increase the Maximum Employment Level of the VLO in order for the office to more effectively accomplish its statutory missions.

The Virginia Liaison Office currently consists of a three-person staff. The VLO is located in the Hall of the States, along with 25 other state liaison offices. The Hall of the States is sited in Washington, D.C., not far from the United States Capitol. The Office has 19 statutorily-mandated responsibilities (Exhibit: VLO Compliance with Legislative Intent) and a number of unofficial responsibilities.

Item 14D of the 1996 Appropriation Act directed the Joint Legislative Audit and Review Commission to study the “mission, staffing, organizational structure, and operations of the Virginia Liaison Office” and report to the 1997 Session of the General Assembly. The General Assembly directed this study in conjunction with budgetary actions which eliminated funding for the VLO in FY 1998.

Development of the Virginia Liaison Office

The VLO was created in 1978, following several studies which cited the need for the Commonwealth to establish such an office. The office was designated by statute as part of the Office of the Governor, although it has always been identified in the State budget and appropriation acts as a separate agency with a specified appropriation and MEL. The director of the office is appointed by the Governor, subject to confirmation by the General Assembly.

The staff of the VLO has ranged from three to six persons, with funding provided for staff and offices in Washington. The appropriation for FY 1997 is $262,679 and the current MEL is three.

Mission and Operations of the Virginia Liaison Office

The VLO has 19 statutory responsibilities. It is charged with monitoring and influencing federal legislation, establishing and maintaining a broad array of federal contacts, facilitating the acquisition of federal grants, monitoring and influencing federal agency rules and regulations, assisting State agencies in dealing with the federal government, and some additional miscellaneous duties.

Most of the activities of the VLO are focused on monitoring and influencing fed-eral legislation. The office successfully communicates positions of the Governor’s office to the Virginia Congressional delegation and to other participants in the development of federal policy. The office also devotes substantial efforts toward establishing and maintaining federal contacts which may be necessary to influence policy. In these broad areas of responsibility, the VLO is in compliance with its seven statutory mandates.

In two other broad areas of responsibility -- facilitating grants and monitoring and influencing agency rules and regulations -- the VLO appears less successful. The office is not in compliance with the two statutory requirements relating to facilitating the State’s ability to secure federal grants. This lack of compliance is the direct result of the small size of the office’s staff. The position devoted to grants was cut in 1995, and there are too few remaining staff to accomplish these responsibilities. Because the Commonwealth ranks last among the 50 states in the amount of federal grants (per capita) which it receives, the decision to eliminate the position dedicated to grants and administration should be reconsidered. Chart: Virginia's Rankings Among the States in Federal Funds and Grants Received.

The VLO is also in weak compliance with two statutory provisions requiring that the office monitor and influence federal agency rules and regulations. While these activities are occasionally performed, the current staffing level is inadequate to fully comply with this mandate. The VLO is in compliance with its other statutory responsibilities.

Organizational Structure and Staffing of the VLO

The VLO is a separate agency placed within the Office of the Governor. By statute, the liaison office must be located in Washington, D.C. or “within the Commonwealth within twenty-five miles of Washington, D.C.” The organizational placement of the office within the Governor’s Office has both advantages and disadvantages. Some flexibility in the management of the office should be considered to address the problem of staffing continuity, which results from the fact that Virginia governors cannot succeed themselves in office.

The location of the office in the Hall of the States in downtown Washington, D.C. has many advantages and should be continued. The proximity to the U.S. Capitol, as well as the office’s co-location with other states’ liaison offices, contributes substantially to the VLO’s ability to fulfill its responsibilities.

As noted earlier, there is some evidence that three staff may be inadequate for the responsibilities designated for the liaison office. The small size of the staff requires the office to disregard some responsibilities. In addition, the director and two staff analysts must spend a disproportionate amount of their time attending to administrative and secretarial responsibilities.

The VLO Should Be Continued

This study found the rationale for the establishment of the VLO to be as compelling today as it was when the office was established. The recent trend towards the devolution of federal responsibilities to state and local governments makes the need for a presence in Washington equally apparent. In the 1995 and 1996 sessions of Congress, serious consideration has been given to proposals that would shift substantial federal responsibilities, particularly in the areas of Medicaid and AFDC, to the states. Such efforts could have far-reaching effects on the Commonwealth.

Consequently, this report recommends that the General Assembly consider continuing the Virginia Liaison Office and restoring its funding for FY 1998. It also proposes a number of recommendations to enhance the compliance of the Virginia Liaison Office with its statutory responsibilities, including expansion of the size of the staff to as many as five full-time positions. In addition, the General Assembly may wish to consider commissioning a joint study with the executive branch and the Congressional delegation to evaluate the possible reasons for the State’s low receipt of federal grant funds.