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Terence R. McAuliffe 72nd Governor of Virginia April 21, 2014
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Terence R. Mc

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!"#$%&#$'!($#)!!!!!!! Foreword from ! !*#+%$,#$!-%$%,.%!/0!1.2345((%!! Governor McAuliffe
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Welcome to my report to the C ommonwealth on my administration’s first 100 days. My team and I have spent every one of those days focusing on common sense, mainstream solutions to the Commonwealth’s challenges. Our efforts have centered on five strategic areas: (1) promoting jo bs and economic development, (2) encouraging innovation and research, (3) making your government accessible and efficiently managed, (4) protecting our natural resources, and (5) building a strong, healthy community. With your help, I believe we can make the next 100 days – and every day after that – just as productive and energetic. Sincerely,
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Terence R. McAuliffe

Governor’s Cabinet
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Secretary of Veterans & Defense Affairs%

! Growing Our Economy

Governor McAuliffe saved a

2,642
New jobs created under Governor McAuliffe’s leadership

$26.1million
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Lowest unemployment since

investment in Virginia agriculture
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2008

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! Virginia Announcements of Employment Creation and Capital Investment Governor McAuliffe Administration as of April 11th All Projects
Company Name Altec Industries, Inc. American Public Power Association Anord Critical Power Inc. Appalachian Cast Products Barrett Machine Inc. Bayshore Concrete Products CANLINE-Systems CarMax Inc. Chaos Mountain Brewing Creative Urethanes EcoFarms Collective, Inc. ept Automotive Division Evonik Industries Frontline Test Equipment, Inc. G.A. & F.C. Wagman, Inc. Green Applications LLC Hanwha Azdel, Inc. Henkel-Harris Co. Inc. Kilgour Industries Ltd. KoDe Software Lumi Juices, LLC Marine Corps Security Force Regiment Mason Manufacturing MGC Advanced Polymers, Inc. Montague Farms, Inc. NIBCO of Virginia Inc. Perdue Foods Premium Rx National Ross Industries, Inc. Schalow Manufacturing Symi International Target Flavors Telos Corporation The Common Application, Inc. Trout River Dry Kiln, LLC Vireol Bio-Industries PLC Volvo Trucks North America Washington Square Associates, Inc. White House Foods 9 CONFIDENTIAL PROJECTS Location Botetourt Co. Arlington Co. Henrico Co. Wythe Co. Frederick Co. Northampton Co. Roanoke Co. Goochland Co. Franklin Co. Winchester Culpeper Co. Chesterfield Co. Chesterfield Co. Albemarle Co. Dinwiddie Co. Orange Co. Lynchburg Winchester Henry Co. Loudoun Co. Albemarle Co. Norfolk Henrico Co. Chesterfield Co. Isle of Wight Co. Augusta Co. Prince George Co. Loudoun Co. Fauquier Co. Botetourt Co. Harrisonburg Newport News Loudoun Co. Arlington Co. Nottoway Co. Hopewell Pulaski Co. Stafford Co. Winchester New Jobs 203 70 70 16 27 135 22 40 20 54 25 8 50 58 65 323 33 18 155 5 36 95 30 8 3 58 190 26 16 10 18 19 160 50 40 70 200 12 31 173 Date Announced 03/2014 03/2014 02/2014 03/2014 03/2014 02/2014 02/2014 02/2014 01/2014 02/2014 02/2014 03/2014 02/2014 02/2014 02/2014 03/2014 01/2014 04/2014 01/2014 04/2014 02/2014 03/2014 03/2014 02/2014 03/2014 03/2014 03/2014 03/2014 03/2014 02/2014 01/2014 01/2014 01/2014 03/2014 03/2014 03/2014 04/2014 04/2014 03/2014

Total Jobs:

2,642

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Job Creation Map Under Governor McAuliffe’s Leadership

COMPETING FOR THE JOBS OF TOMORROW
Working with both sides of the aisle, Governor McAuliffe signed legislation encouraging private companies to invest more money in research and development Research and development keeps Virginia ahead of the competition. That’s why Governor McAuliffe signed HB1220, which increases the amount of Virginia qualified research and development expenses that can be claimed as a tax credit from 15% of the first $167,000, to 15% of the first $234,000. For Virginia qualified research and development expenses conducted in conjunction with a Virginia institution of higher education, the amount that can be claimed as a tax credit increased from 20% of the first $175,000 to 20% of the first $234,000. In addition, the law increases the maximum annual amount of tax credits that may be issued each fiscal year from $5 million to $6 million.

Under Governor McAuliffe’s leadership, Virginia was the first state in the nation to acquire an ocean research lease issued under the Bureau of Ocean Energy Management's regulatory authority for renewable energy research activities that support the future production, transportation, or transmission of renewable energy Four Virginia businesses (Alstom Power Inc, CoastalObsServices LLC, Timmons Group, and Virginia Electric Power Company, dba Dominion Virginia Power) have been awarded $860,000 for research with a total value of more than $3 million. This research will give the Commonwealth a competitive advantage in renewable energy technologies and accelerate the development of offshore wind power, as well as its associated industry supply chain. Governor McAuliffe signed legislation making it easier for Virginia companies to set up solar energy collectors HB418 and SB1239, signed by Governor McAuliffe, exempts from real and personal property taxes business-owned or business-operated solar energy equipment, as well as facilities or devices that collect, generate, transfer, or store thermal or electric energy. ! WORKFORCE: PREPARING VIRGINIANS FOR THE !

NEXT GENERATION OF JOBS
The Governor has realigned workforce development efforts under the Secretary of Commerce and Trade, to focus on improving human capital and ensuring that our workforce remains competitive in a global economy. The administration has also produced a cross-agency, cross-program Workforce Report Card, which reports progress over the past 5 years, using key metrics of workforce readiness and job creation as identified by the Virginia Workforce Council and industry focus groups. Metrics reported include STEM-H pipeline development, educational attainment (including certifications and licensures), college and career readiness, employment, and business development. This spring, a report will be published on the progress of regional collaboration for workforce solutions and expansion of training capacities in key industries.

GROWING JOBS: CREATING JOBS IN RURAL VIRGINIA
Governor McAuliffe’s strategic agriculture and forestry plan for continuing to grow Virginia’s economy includes helping existing agribusinesses expand operations, recruiting new agribusinesses to Virginia, expanding international markets for Virginia products, and making strategic investments in rural infrastructure that support job growth in these areas. The health of Virginia’s entire economy depends on the success of agriculture and forestry, as nearly a quarter of all Virginians live in rural communities. With more than thirty percent of gross farm income linked to exports, access to vibrant international markets is key to Virginia’s future economic prosperity. Governor McAuliffe awarded the Administration’s first Agriculture and Forestry Industries Development (AFID) grant to Montague Farms in Isle of Wight County The AFID grant incentivized new jobs and a $600,000 capital investment. The expanded facility that the grant enabled will prepare products for export to South Korea—creating a new market for Virginia producers. The Agriculture and Forestry Industries Development Fund (created in 2012) is being embraced by the Administration as an important tool in growing the Commonwealth’s agriculture and forestry sector and helping to make Virginia the leading exporter of agricultural and forest products on the East Coast. Governor McAuliffe announced a $4.75 million investment in a water project for Buchanan County The Virginia Department of Mines, Minerals and Energy will administer a federal grant totaling $4,750,000 to provide public water to a community in Buchanan County affected by past coal mining practices. The water project has been selected for construction funding under Virginia’s Abandoned Mine Land FY14 Grant released as of April 2014. The project includes the construction of a water storage tank and a pump station. The funds will also pay for the replacement and upgrade of water lines to make this extension of public water possible and to provide an opportunity for future extensions. In addition to providing needed public water supplies, this project also creates a number of construction jobs that will stimulate the local economy. ! ! ! ! ! !

Governor McAuliffe co-hosted the 6th Annual Governor’s Conference on Agricultural Trade on March 6 – 7 The two-day conference, “Connecting the World to Virginia’s Farms and Forests,” was co-hosted by Virginia Tech’s Department of Agricultural and Applied Economics, the Virginia Department of Agriculture and Consumer Services, Virginia Farm Bureau Federation and the Virginia Port Authority. The Governor discussed challenges and opportunities for global exports with officials from Vietnam and Japan, senior U.S. Department of Agriculture, and U.S. Trade Representatives officials, and agricultural attachés from the European Union, Egypt, Indonesia, Chile, and South Korea.

KEEPING JOBS IN VIRGINIA
The Governor is keeping Virginia competitive with countries around the globe Vireol Bio Energy knew they wanted to operate a state of the art biofuels production plant, but they had to decide between staying in Virginia or going overseas. Thanks to a timely personal intervention by Governor McAuliffe and the strategic use of economic development grants, the company has decided to stay in the Commonwealth. They have now promised to invest over $26.1 million in Virginia agriculture over the next three years. Working with the legislature to move investments in Bristol forward The Governor introduced his first piece of legislation to the General Assembly this session to ensure that the business climate of Bristol, Virginia, stayed competitive with its sister city in Tennessee. Without swift action by the Governor and the legislature, an investment of over $40 million and 2000 potential new jobs would have been in jeopardy.!

Energizing Our Government
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Smart Investment for Transportation

“Virginia deserves a government that works honestly and efficiently for its citizens every day.” – Governor McAuliffe

PUBLIC TRUST
New rules holding public officials to the highest ethical standards

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PUBLIC TRUST

New rules holding public officials to the highest ethical standards! Virginians deserve to know that their public officials are honest, ethical, and trustworthy. That’s why Governor McAuliffe’s second executive order imposes strict ethics rules on himself and his cabinet. The comprehensive order bars members of his administration and their family members—including the Governor and his family—from accepting any gift (including goods, services, payments, and loans) of more than $100 in value. In addition, the order establishes an ethics commission that will ensure compliance with the ban. Meaningful ethics rules, in conjunction with an effective compliance plan, will ensure that Governor McAuliffe’s administration always puts the citizens of the Commonwealth first.

PARTNERSHIPS BETWEEN GOVERNMENTS
Governor McAuliffe is building partnerships and breaking down silos at the regional and federal level

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Cooperation between governments is crucial, especially in the Capitol region – home to countless valuable and sensitive government facilities. That’s why Governor McAuliffe convened a meeting with the Governor of Maryland and the Mayor of Washington, DC. At their first regional summit – held in Virginia - these three leaders laid the foundation for greater intergovernmental cooperation on issues as diverse as homeland security, transportation, economic development, and the Chesapeake Bay. The Governor also met with Virginia’s Congressional Delegation to communicate his priorities. Accompanied by the rest of his Cabinet, the Governor told our Senators and Representatives that his goal was to improve our competitive position when negotiating for new federal jobs in the Commonwealth.

SMART INVESTMENT FOR TRANSPORTATION
The General Assembly found a compromise to raise transportation funds last year; Governor McAuliffe is making sure those funds are spent wisely. During the legislative session, the Governor worked with lawmakers of both parties to pass meaningful transportation reform. The result is HB2, a bill that creates a transparent, data-driven process for deciding how to improve our transportation infrastructure. Now, when the Commonwealth Transportation Board is deciding what new projects to build, they will use cutting edge modeling techniques to see how a proposed road or highway would mitigate congestion, improve safety, grow our economy, create access to jobs, and protect environmental quality. This ensures that taxpayer dollars are being spent only on the best projects. Citizens will also be able to go online and review the scores for various projects to understand how the state is spending their money. ! !

! Governor McAuliffe is making tough decisions on the Commonwealth’s most troubled transportation projects Governor McAuliffe made a commitment to put all projects under a microscope to make sure we get the best transportation value for taxpayer dollars US 29 Through Charlottesville: Finding Solutions Fixing congestion along US 29 is a critical infrastructure project. When the federal government told Virginia that the originally planned bypass could not be permitted, Governor McAuliffe took decisive action. He empanelled the US 29 Charlottesville Bypass Advisory Group – made up of elected officials up and down the US 29 corridor – to examine the issue and develop solutions that will be started during his term. New US 460: Protecting Taxpayer Investment When Governor McAuliffe learned that the new 460 project from Petersburg to Suffolk had not yet received a federal permit, he immediately issued a stop work order. This quick action saves the Commonwealth $35 million per month. Today, Virginia Department of Transportation engineers are meeting with the federal government on a weekly basis to find a solution. Midtown/Downtown Tunnel: Accessibility For All Citizens The new Midtown/Downtown tunnel project in Hampton Roads was controversial long before Governor McAuliffe took office. Tolls were simply too high and burdensome for the people who would have to use the facility every day. That’s why - in his very first address to the General Assembly - the Governor directed the Commonwealth Transportation Board to take bold action and cut the tolls in half. Now, citizens of Hampton Roads have access to new regional mobility at a price that they can afford.

SMARTER SAFETY
Governor McAuliffe has taken concrete steps to streamline his cabinet for more effective emergency response. Governor McAuliffe signed SB381 & HB730 to centralize Virginia’s emergency response capability under the Secretary of Public Safety and empower the Secretary of Veterans Affairs to interface with the United States military. Notable changes include making the Secretary of Public Safety, Brian Moran, the cabinet official directly responsible for homeland security, streamlining the chain of command. The Secretary of Veterans Affairs has been newly empowered to act as the Governor’s official liaison to the Defense Department. As Secretary, Admiral John Harvey will take the lead in advocating for Virginia’s military installations. ! !

DAN RIVER CLEAN UP
When a Duke Energy coal ash spill in North Carolina spilled into Virginia’s waters, Governor McAuliffe worked closely with local officials to keep our drinking water safe, protect the environment, and ensure that Duke Energy pays its fair share of the costs.

REGIONAL COOPERATION
$1.2 billion for Hampton Roads On day 83 of his administration, Governor McAuliffe signed legislation to create the Hampton Roads Transportation Accountability Commission (HTAC) to build new highways and reduce congestion. The HTAC will accelerate solutions to the region’s transportation crisis. Under the leadership of a board consisting of the chief elected officers of each of the regional local governments, HTAC will inject over $1.2 billion into the local economy in the form of new transportation projects. These projects will take pressure off of existing roads, reduce travel times, and improve road safety. !

FIXING THE PORT
Governor McAuliffe has taken decisive action to fix the Virginia Port Authority In January, Governor McAuliffe found that the port was $34 million further in debt than had been reported. Now, thanks to financial measures put in place by the Administration and the Port’s Board, VPA is shrinking their losses and meeting their debt covenants once again. The Governor understands that the Port is one of Virginia’s most precious economic assets, and he will take all necessary steps to ensure that the Port sticks to its financial action plan to get in the black, including needed leadership changes.

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MAINSTREAM BUDGET PROPOSAL
A fiscally responsible budget proposal the first year In the face of legislative deadlock, Governor McAuliffe introduced a sensible, mainstream budget that laid the foundation for a stronger, better Commonwealth. The budget proposal included a raise for teachers and government employees, $17 million for first responders killed or injured in the line of duty, and healthcare coverage for up to 400,000 uninsured Virginians. The proposal also increased funding for Pre-K initiatives, added $8.9 million in new funding for mental health, and put aside $100 million in a trust to guard against future costs – protecting taxpayers.!!

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Serving Our Communities

“My administration is committed to keeping Virginia open and welcoming to ! all who call our Commonwealth home.” -Governor McAuliffe ! !

Total number of 3rd - 8th grade SOL tests ! reduced from 22 to 17
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Landmark comprehensive mental health reform legislation:

SIGNED

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FIRST LADY: MAKING A DIFFERENCE FOR VIRGINIA’S YOUTH
Since moving to Virginia over 20 years ago, Dorothy McAuliffe has served her community as a volunteer, especially in the areas of education, health, the arts, and supporting victims of domestic violence. As a mother of five children she has participated in a range of organizations and activities to support children’s education throughout the Commonwealth of Virginia. As First Lady of the Commonwealth, Mrs. McAuliffe is focusing on the importance of childhood nutrition and food security throughout Virginia. She has worked to improve food delivery systems to increase access to fresh and nutritious foods for children and families across the Commonwealth. From Fairfax to Richmond to Bristol, the First Lady has visited schools, hospitals, and businesses around Virginia to promote the importance of children’s health, and advocate for closing the coverage gap to ensure that children receive the care and treatment they need to thrive. She has promoted fitness and wellness as crucial components of children’s health, and recently joined Governor McAuliffe to announce Virginia’s partnership with the National Foundation for Governors’ Fitness Councils to bring a multi-million dollar youth fitness campaign to Virginia. This program will help elementary and middle schools across the Commonwealth build modern fitness centers that promote health and exercise. Announcing this landmark partnership, Mrs. McAuliffe proclaimed, “our students need exercise to grow and develop, to achieve academically, and to thrive in the workforce.” Throughout the Governor’s term in office, Dorothy McAuliffe will continue to promote local agricultural economic development opportunities as a critical part of expanding access to fresh, nutritious food products across the Commonwealth. By improving food security in Virginia, we can reduce healthcare costs, improve the health of our children, and encourage stronger educational outcomes.

IMPROVING MENTAL HEALTH AND PUBLIC SAFETY
When speaking recently on the importance of mental health reform, Governor McAuliffe noted that “Virginians have experienced tremendous heartache as a result of mental health tragedies. It is incumbent on us to reevaluate how we can better serve our fellow Virginians with mental health needs.” In order to better care for those struggling with mental health issues, Governor McAuliffe recently signed an executive order to continue the Governor’s Task Force on Mental Health Services and Crisis Response. Chaired by Lieutenant Governor Ralph Northam, this task force will bring together bipartisan, intergovernmental, and community representatives to review and address needed changes in Virginia’s mental health system. The Governor worked closely with the General Assembly to pass and sign a comprehensive mental health reform package that will improve mental health professionals’ ability to respond to those in crisis and provide the best care possible. This legislation extends the temporary detention order period from 48 to 72 hours, which will allow individuals in crisis further time to stabilize before appearing in court to establish, if needed, a plan for additional treatment. It will also extend the maximum possible emergency custody order period from six to eight hours, which will allow mental health clinicians more time to locate appropriate psychiatric care resources during times of emergency crisis. To facilitate entry into psychiatric hospitals and ensure that no individual is turned away in a time of crisis, the Department of Behavioral Health and Developmental Services recently created a new online tool to identify the location of available psychiatric resources across the Commonwealth in real time. Time is critical to allow community services board professionals to find appropriate facilities to care for those being held for treatment under emergency custody orders. Governor McAuliffe’s actions in these first 100 days will improve Virginia’s mental health system by providing improved quality of care to individuals in crisis and their families.

RESTORATION OF RIGHTS
An important component of serving Virginia’s communities is restoring the civil rights of non-violent ex-felons who have paid their debt to society. When these individuals work to re-enter society, Governor McAuliffe is committed to aiding that process by restoring—among other civil rights—the right to vote. In his first 100 days in office, the Governor has already restored rights for over 500 non-violent ex-felons.

SOL REFORM
Virginia’s most precious resources are our children, and caring for their wellbeing, success, and happiness is critical to fostering thriving communities throughout the Commonwealth. In his first 100 days in office, Governor McAuliffe worked closely with members of the General Assembly from both parties to pass Standards of Learning (SOL) reform legislation, which reduced the number of SOL assessment tests and created the

Standards of Learning Innovation Committee. This group, chaired by Secretary of Education Anne Holton, will continue to review additional ways to reform the SOL tests. This legislation will reduce the required number of SOL tests for elementary and middle school students from 22 to 17, allowing Virginia to support our teachers and focus on our children. While signing this landmark legislation, Governor McAuliffe said it would allow us to “continue to evaluate students and teachers without stifling innovation and creativity in the classroom.” This comprehensive bipartisan reform legislation will improve Virginia’s schools by providing teachers greater flexibility to work with their students. By reducing the number of SOL assessments, children will be able to participate in more collaborative learning and activities that promote critical thinking. Governor McAuliffe will continue to work with members of both parties to support Virginia’s outstanding teachers and school systems so we ensure that our children receive the best education in the country.

VIRGINIA HEROES: OUR VETERANS, SERVICE MEMBERS, AND THEIR FAMILIES
The Commonwealth of Virginia has a long and proud tradition of supporting our nation’s military service members, military families, and veterans. Virginia is honored to be the home of the Pentagon, Naval Station Norfolk, Quantico, Fort Lee and numerous other military bases and facilities. We are proud that Virginia has one of the highest concentrations of veterans of any state. Governor McAuliffe is committed to assisting our nation’s veterans, active service members, and their families, who serve the Commonwealth and nation every day to protect our freedom and keep our nation safe. During the 2014 legislative session, Governor McAuliffe worked with legislators from both parties to support a number of legislative initiatives that will improve financial security for military families. The Governor signed bills to provide unemployment compensation to military spouses who leave their job to accompany their active duty spouse to a new military duty assignment in Virginia, and to expand access to higher education for eligible veterans’ family members. Every member of a military service member’s family serves our nation, and each of them face unique economic challenges. Our nation’s veterans often struggle to find employment after leaving the military. After putting their lives on the line to serve our country, they possess unique skills and experiences that make them outstanding candidates to potential employers. Governor McAuliffe began the process of expanding the Virginia Values Veterans (V3) initiative, which strengthens the Commonwealth’s economy by encouraging employers to recruit, hire, train, and retain veterans. Five state agencies are currently working to improve access to employment opportunities for Virginia veterans. During a February 2014 V3 conference, four Virginia law enforcement agencies were among those employers recognized for achieving significant program milestones to hire and retain veterans in their workforce. Under the Governor’s leadership, Virginia will continue to encourage employers to hire veterans and support workforce development for the Commonwealth’s veterans. Governor McAuliffe will continue to support all military families and service members throughout the Commonwealth of Virginia.

THE GOVERNOR’S FIRST ORDER OF BUSINESS: STANDING UP FOR A DIVERSE, INCLUSIVE, AND WELCOMING COMMONWEALTH
Immediately following his inauguration on January 11, Governor McAuliffe wasted no time in addressing his highest priority – prohibiting discrimination based on sexual orientation or gender identity in state government. That day he signed Executive Order Number 1, which he proclaimed “sets the tone for an administration that will not accept discrimination in any form, and one that will work tirelessly to ensure that all Virginians have equal opportunity in the workplace, no matter their backgrounds, race, religion, or whom they love.”

An essential component of building an active and healthy workforce is ensuring equal treatment of all employees, including equal pay. Governor McAuliffe recently signed an official proclamation demonstrating his commitment to equal pay for Virginia women.

BETTER CARE FOR VIRGINIANS MOST IN NEED
Serving more through dual eligibility On March 6th, Governor McAuliffe announced the groundbreaking launch of Commonwealth Coordinated Care (CCC), a program that blends and coordinates Medicare and Medicaid benefits for more than 78,000 Virginians who typically have the highest and most complex medical needs but are often underserved. CCC will blend all of the benefits currently provided under Medicare and Medicaid into one plan with a designated care manager who will ensure person-centered and efficient health care services are provided. This will not only make it easier to manage the system from the beneficiary’s perspective, this innovative program will bring greater efficiencies and cost savings to the state’s overall healthcare delivery system. Hearing stories, taking a stand To better understand and address Virginia’s healthcare needs, Governor McAuliffe has already visited more than 25 hospitals, health centers, and clinics across the Commonwealth. Listening to firsthand accounts from patients who struggle as much with health care costs as their health is a critical part of why the McAuliffe administration has made healthcare reform a top priority.

Protecting Our Environment

Virginia Outdoors Plan ONLINE
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“Our historical sites and beautiful natural scenery attract visitors from around the world, bringing jobs and dollars to our Commonwealth. But these landscapes are more than that: they form an essential part of who we are.” !!!!!!!!!C;5<$8658!=4>9?,@@$!!

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OUTDOORS VIRGINIA
Governor McAuliffe and First Lady Dorothy McAuliffe were proud to announce that for the first time ever, the Virginia Outdoors Plan is available online. In proclaiming this groundbreaking news, Mrs. McAuliffe said “Terry and I want all Virginians to benefit from outdoor recreation. That means maintaining and enhancing our parks and green spaces.” The new online Outdoors Plan will allow visitors from across the country—and world—better access to information on Virginia’s natural assets. This innovation will provide visitors regional recommendations for parks, trails, scenic rivers, byways, and other natural resources to enjoy across the Commonwealth. The online Virginia Outdoors Plan allows residents and visitors to find the trail or outdoor activity closest to them, so children and families can enjoy the historical sites and breathtaking natural scenery of the Commonwealth. Mrs. McAuliffe has promoted the new Outdoors Plan as a crucial element of her initiative to encourage children to exercise and combat childhood obesity. She emphasized the importance of the Outdoors Plan and noted that “by providing more resources for families to find out where a park, trail, or outdoor activity is in their area, more children can go outside to play, learn, and get the exercise they need to lead strong, healthy lives.” The Virginia Outdoors Plan lays a roadmap for conservation of outdoor space, which will allow future generations to continue to enjoy the Commonwealth’s natural resources. Virginia’s parks and outdoor spaces are cherished parts of our Commonwealth’s heritage, and Governor McAuliffe is committed to protecting our environment and natural resources for all Virginians today as well as future generations to come. !

CHESAPEAKE BAY
The Chesapeake Bay is one of the most valued natural resources in Virginia and the United States. As the nation’s largest estuary, and a $1 trillion economic resource, the Bay is a critical part of the Commonwealth’s cultural, environmental, ecological, historic, and economic identity. Over the last three decades, the ecological factors that protect the Bay’s health have been altered by increased urbanization and population growth, loss of forest, and climate change. Since taking office, Governor McAuliffe has taken decisive action to address the threats facing the Chesapeake Bay and support its restoration. In order to focus attention on the Bay, the Governor directed Secretary of Natural Resources Molly Ward to appoint Russ Baxter, formerly Chesapeake Bay Coordinator for the Virginia Department of Environmental Quality, to serve as the Deputy Secretary of Natural Resources for the Chesapeake Bay. This appointment will allow Secretary Ward, Deputy Secretary Baxter, the Governor, and his administration to concentrate attention on the unique challenges facing the Bay. The Governor worked with members of both parties in the General Assembly this year to broker a landmark compromise bill that helps local governments reduce pollution in the Bay and its tributaries. This legislation streamlines the relationship between local government and the state when it comes to the stormwater management systems that prevent contaminated water and other pollutants from harming the Bay. The unique challenges facing the Bay and its many tributaries require coordinated action by the Governors of Virginia, West Virginia, Maryland, Delaware, Pennsylvania, and New York, as well as the Mayor of the District of Columbia. In January 2014, Governor McAuliffe met with the Governor of Maryland and the Mayor of the District of Columbia to signal commitment to strengthening the Chesapeake Bay Watershed Agreement, which improves regional cooperation across the Bay’s multi-state watershed. This partnership will foster an ecologically and economically sustainable Bay with vibrant wildlife and clean water. The Governor will continue to protect the Bay’s cultural heritage and environmental health to ensure that it remains a treasure that all Virginians can enjoy. !

NATURAL BRIDGE
Ever since Thomas Jefferson purchased it from King George III, Natural Bridge has been a cherished Virginia landmark. In 2015, after more than 240 years of private ownership, Natural Bridge and the surrounding land will become a Virginia state park. Governor McAuliffe has worked to ensure that one of Virginia’s, and the nation’s, most valued natural resources can be preserved and enjoyed for generations to come. The establishment of a state park will create jobs and promote economic development in the Shenandoah Valley, and will allow the Commonwealth to grow the more than 200,000 visitors that already visit Natural Bridge annually.

OPEN SPACE
The Governor convened a major summit of conservation and environmental leaders to create a strategy of smart, focused conservation of land and historic resources. In January 2014, Governor McAuliffe announced the distribution of more than $1 million in farmland preservation grants to local governments across Northern Virginia, Central Virginia, and Hampton Roads. When he announced these grants, Governor McAuliffe reiterated that his “administration’s goal of conserving Virginia’s working lands, [is] an important component of land preservation,” and of conserving Virginia’s natural and historic heritage. These expanded preserved lands will support agriculture and forestry, two of the Commonwealth’s largest industries. The grants allow local governments, landowners, and business owners to preserve working farmland while still producing goods, creating jobs, and generating economic growth. The Governor will continue to preserve Virginia’s open space to protect our natural resources while also strengthening and diversifying the Commonwealth’s economy.

PROTECTING VIRGINIA’S COAST
In response to environmental threats facing Virginia, Governor McAuliffe is reinstating the Commonwealth’s Climate Commission, and convening a panel of experts to find common sense solutions to the threat posed to coastal Virginia by rising sea levels. The National Oceanic and Atmospheric Administration recently named Hampton Roads as the second most vulnerable region in the nation to the prospect of rising ocean levels, following New Orleans. The Governor recently declared that “we cannot afford to ignore” those threats, and that we must “prepare our coastal communities to deal with climate change and all natural disasters.” Protecting Virginia’s residents and natural resources from the threat of climate change requires action today, and Governor McAuliffe will continue to meet with environmental and scientific experts to determine steps the Commonwealth can take to keep our land safe from natural disasters, including climate-related threats. ! ! ! ! !

! Innovating Our Future

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“To keep Virginia moving forward, I have directed my administration to focus on policies that place us at the forefront of innovative technology, creative entrepreneurship, and smarter security.” ! -Governor McAuliffe

Virginia invested

$700k

in tech startups, which attracted $30 Million in private investments. DATA.VIRGINIA.ORG

Sharing data to empower Virginians, to improve our businesses, and strengthen our government. Introducing the new

LEADER IN CYBERSECURITY
Under Governor McAuliffe’s leadership Virginia is becoming the national hub for fighting cyber crime and bringing in cutting-edge jobs that come with one of today’s fastest growing industries In March, Virginia was the first state to adopt the National Cybersecurity Framework, equipping the Commonwealth with the tools needed to defend against new and evolving cyber threats. The National Institute of Standards and Technology developed the new framework in close collaboration with public and private stakeholders. The adoption of the new framework enhances Virginia’s robust cybersecurity programs and places the Commonwealth at the forefront of the rapidly expanding cybersecurity industry, which will expand economic opportunities for all Virginians. Governor McAuliffe issued Executive Order 8, launching the Virginia Cybersecurity Commission The Commission consists of the Secretaries of Technology, Commerce and Trade, Public Safety & Homeland Security, Education, Health & Human Resources, and Veterans & Defense Affairs, as well as eleven citizen experts. In addition to identifying high-risk cybersecurity issues facing the Commonwealth and developing further safeguards for critical cyber infrastructure, the Commission will recommend measures to expand cutting-edge science, technology, engineering, and math education and training programs for all ages, it will create additional economic opportunities and ensure that the Commonwealth continues to develop into a national hub for the cybersecurity industry. The Center for Innovative Technology expanded its MACH37 Cyber Accelerator, which provides funding and support for startup cybersecurity companies MACH37’s Herndon, Virginia, headquarters is an incubator for cybersecurity start-ups that offers a platform for collaboration to entrepreneurs and experts in the cybersecurity industry. In addition to comprehensive mentoring and support, the five start-ups selected to participate in MACH37’s spring 2014 class will each receive $50,000 to develop and launch their concepts. The Accelerator Program promotes innovation and entrepreneurship in the Commonwealth, which creates new high-technology jobs and further cements Virginia’s status as a leader in cybersecurity.

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eHealth
Smarter Technology and Better Care for All Virginians In February 2014, Virginia’s technology and health agencies approved the ambitious eHHR Information Technology Strategic Plan to modernize our healthcare and human services. This renewed focus on innovation in how Virginia handles healthcare service delivery means that families across the Commonwealth will receive better care, up-todate health information, and peace of mind.

ADVANCING RESEARCH
Investing in scientific development and evolving technology spurs academic excellence, expands job opportunities, and grows our economy! ! Rocket Science: Virginia entered into a new agreement with Orbital Sciences, which clears the way for continued successful business with Orbital and its new Antares launch vehicle. Through this new agreement, Virginia Space plans to conduct a second resupply mission to the International Space Station (ISS) in early May. Aerial Innovation: The Mid-Atlantic Aviation Partnership was selected by the Federal Aviation Administration to be one of the six unmanned aerial system test ranges. In collaboration with Virginia Tech, New Jersey, and Maryland, Virginia will host groundbreaking research in this rapidly evolving field, which will expand economic opportunity and ensure that Virginia remains a leader in high-tech innovation.

CONNECTING VIRGINIA
Sharing Data, Supporting All Of Our Communities ! All parts of Virginia should have access to information and the ability to connect. Through the Center for Innovative Technology, Virginia launched five regional Broadband Planning Strategies Workshops across Virginia and worked with 41 Virginia broadband providers map their data on the Virginia Broadband Map and the National Broadband Map, which helps local and regional officials with their planning needs. Accurately mapping broadband data will play a critical role in ensuring communities, schools, and families currently without access receive access in the future.

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