When I was first elected to the General Assembly, my predecessor was W. Tayloe Murphy Jr.  I worked for Delegate Murphy for a number of years and learned much from him.
 Tayloe - as he is known to his family and friends - is renowned for his bow tie, his commitment to the Chesapeake Bay and his genteel manner.  Tayloe is also known for his keen intellect and his willingness to explain problems and solutions to all who asked.
Aside from policy issues, I learned from Tayloe to distrust the slogan “if you are explaining, you are losing”.  Indeed, I learned from Tayloe that good leadership comes through the art of laying out the facts and options to solutions.

Despite his landmark environmental work, I increasingly believe Tayloe’s biggest contribution to the commonwealth is outside of the realm of environmental stewardship.  This is because Tayloe was the author of the law which created Virginia’s “Rainy Day Fund.”  The Revenue Stabilization Fund (its official name) is Virginia’s solution to slow economic times.
Upon a recommendation by the General Assembly’s “watchdog” group, then-Delegate Murphy carried a constitutional provision which mandated that state dollars are locked away in good times and can be taken during times of budget shortfall.
The formula, which dictates fund deposits or withdrawals, is not an easy read.  Indeed, the condensed version of the deposit formula states that the General Assembly shall make deposits to equal at least 50 percent of the product of the certified tax revenue times the difference between increase tax revenues collected for the most recently ended fiscal year and the average annual percentage increase in the certified tax revenues collected in the six fiscal years immediately preceding the most recently ended fiscal year.  The withdrawal formula is not light reading either.
The short translation for both?  Put money away for good years so we can have it for bad times.
What is remarkable about the current recession is that the bad years are so bad that they skew the formula and require mandatory deposits even when we have a much lower baseline.  For instance, in fiscal year 2007, Virginia had approximately $14 billion in revenue.  In 2012, it is entirely possible we will have less revenue, but (because of the Rainy Day Fund) we will make mandatory deposits of over $200 million.
From a policy standpoint, this is a good thing.  Good years like 2007 are increasingly looking like an aberration, not a trend, and Virginia needs to adjust to the new reality.  That having been said, it will be hard to put money away for the future at the same time we may be cutting police, nursing homes, Meals on Wheels, education and Bay protection.
In the spirit of believing that “explaining is winning”, I have placed the formula for the Rainy Day Fund on an interactive spread sheet on my Web site, www.albertpollard.com.  It’s actually fun to play with, just beware that certified revenue is only comprised of sales and income tax.  You can envision a number for state revenue growth and then see what the mandated deposit would be.
Just don’t expect a bow tie.