We recently sat down with former Virginia Governor Jim Gilmore and discussed his role in making Virginia America’s most business-friendly state.  He discussed what it’s like to transition from the governor’s mansion and the campaign trail back to private industry, and gave Governor Bob McDonnell some advice on how to maintain Virginia’s pro-business legacy and keep Virginia abreast of new and emerging technologies.

ExecutiveBiz:  As a former Governor you played a major role in making Virginia one of the most business friendly states in the union.  What should government do to encourage growth in the private sector?

Jim Gilmore:  This is a very critical moment in the history of the nation and in the state of Virginia because of the enormous recession that we’ve had.  An emphasis really has to be place right now on rebuilding the economy and allowing the economy to transform itself into something that is even more efficient.  The emphasis today has to be on job creation and that means that you’ve got to get out there and really find ways to nurture the business community and to allow it to prosper so that in fact we will have a reason to create jobs.  That’s a different philosophy from a stimulus type of a package where you throw money out into the community and hope that somehow that means economic growth.  It probably doesn’t and instead what we need to do is to find much more effective ways to allow businesses to grow and the economy to grow and that will create jobs.  Yes, in my Administration we worked very hard to bring new employers to Virginia and new programs to Virginia so that we would nurture job creation.  We also found ways to offer tax incentives and other opportunities.  The result of all of that effort was we built a record number of jobs in Virginia during my Administration – over 200,000 new jobs.’

I think that was long as you are offering a good business approach that is good for the business community and at the same time offers effective protections and services to the taxpayer, I think it’s appropriate and then the programs will stand on their own feet. -Jim Gilmore

Jim Gilmore:  I can only say this –I established the Secretary of Technology’s position in the cabinet because I wanted Virginia to be on the leading edge and to present an image across the nation of being a front runner and cutting edge type of state.  I was very impressed with the technology community that existed in Virginia at the time.  I wanted to lead with that and in my Administration our Secretary of Technology put together major programs on the internet, anti-spam laws, encouragement of the use of technology and developed a lot of exciting programs.  We also, by the way, consolidated the technological programs for the state of Virginia and made them more effective.  Afterwards of course Governor Warner decided to do something entirely different.  I think he minimized the Secretary of Technology and he also outsourced a lot of things to Northrop Grumman and I’m not sure that was a good approach.  I would prefer to have it operate in house.  I haven’t studied Northrop Grumman contract.  The question is “was the contract negotiated in such a way that the public could be sure they were getting the best technological services?” and just by all public reports that has been highly controversial.

ExecutiveBiz:  As a former state Governor what advice do you have for contractors and how to work more effectively with state and local governments?

Jim Gilmore:  I think that we should encourage public private partnerships and we did during my Administration.  It was an opportunity to find ways where businesses could be successful and at the same time provide services in a much more effective and efficient way for the taxpayer and we ought to be encouraging that.  The best way to do it is to make sure that businesses are aware of the opportunities to offer their services in a way that would save the taxpayer money.  That would be the way I would counsel them to go in government.

ExecutiveBiz:  The consensus view in the federal government of government contractors seems to be negative.  Do you feel there is a difference between the way the federal and the state governments view contractors and the public/private partnership?

Jim Gilmore:  I’m on the Board of Directors of CACI International which is in Arlington and is a major government contractor and integrator.  Of course as Governor of Virginia I interacted with a number of people at the state level.  I can’t answer whether there seems to be a bad attitude in one level of government rather than the other.  I think that attitude ebbs and flows but I think that was long as you are offering a good business approach that is good for the business community and at the same time offers effective protections and services to the taxpayer, I think it’s appropriate and then the programs will stand on their own feet.  If the programs meet that measure that I just laid out then I think the public won’t be critical and the press won’t be critical and everybody will see the mutual benefit.

ExecutiveBiz:  Do you have any advice for Governor-elect McDonald?

Jim Gilmore:  So much that it is hard for me to pick and choose.  I think that I would be reluctant to raise taxes.  I think that is bad for the economy.  It has a bad impact on regular people out there who are trying to make ends meet.  Tax increases reduce economic activity.  Tax increases are hard on families and I wouldn’t do that.  I don’t think he intends to.  I think that his major challenge is going to be how he can assess how we can spend less in government and at the same time provide proper services.  That’s a real challenge and I think it is going to require great innovation.  We tried to do that during my Administration and that was not always appreciated but I think we were always making efforts to provide services in an effective way without increasing taxes and that’s what I would urge him to do.  During my Administration we build the Springfield Interchange.  During my Administration we rebuilt the Woodrow Wilson Bridge.  We began to initiate the Rail to Dulles.  We did major works in the ports.  We did major transportation projects all over the state.  We provided good services for people in the area of health and education.  I emphasized higher education particularly in my Administration and we didn’t increase taxes.  The second thing I would say to the Governor is to keep the people’s faith, do what you say you are going to do.  I also am not sure that that’s highly valued anymore but it is with me.  I think that if you make commitments to the people that elected you I think you ought to try to keep those commitments.

ExecutiveBiz:  What is it like transitioning back from the public to the private sector?

Jim Gilmore:  Working in the private sector is a joy for me.  I practiced with a major private firm for the first six years when I was out of government.  I am not practicing law now but I enjoyed that association.  I now serve on four corporate Boards – two in New York, on in Atlanta and one in Arlington.  I have enjoyed thoroughly my service as a Director.  I think I’ve learned a lot about business and I think I’m making a contribution to those Boards through principals that I’ve tried to live by – the issues of integrity and honesty which I think are really vital right now in the business community.  I think that has been a real pleasure for me to be able to do.  I am also operating an LLC of my own to do transactional work and now of course as of several weeks ago I’m President and CEO of the Free Congress Foundation which is a charitable conservative educational institution for the purpose of putting forward good policy in the public view.  I’m enjoying myself thoroughly.

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Tags: Bob McDonnell, Jim Gilmore, Secretary of Technology
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