Welcome to the home of the Virginia Institute for Public Policy on virginiainstitute.org!

Welcome to the home of the Virginia Institute for Public Policy on virginiainstitute.org!

Archives March 6, 2025

The Virginia Model of Regulatory Reform

The Virginia Model of Regulatory Reform

A Springboard for Success

Is the Office of Regulatory Management Virginia’s DOGEThat’s a debate that has been raging in the public eye recently.

Enter the highly-respected economist Dr. James Broughel, one of our senior fellows at the Virginia Institute for Public Policy.

On March 6th, we released a major new study by Dr. Broughel, who is also a senior fellow at the Competitive Enterprise Institute and a former adjunct professor at the Scalia Law School at George Mason University.

$1.2 billion of annual savings for Virginians. Permit processing times slashed from an average of 33 days to 5 days. Even the average cost of building a house will drop by $24,000.

The Office of Regulatory Reform (ORM) in Virginia has been highly successful in taking an axe to Virginia’s bloated regulatory code, already cutting it by 21%.

The paper has generated publicity in the media – see HERE and HERE:

We’re making sure to provide the facts and figures to those in power in Richmond so that legislators can learn not just about the Virginia Model of Regulatory Reform, but also about how it can be improved upon.

Here is the full paper, and the one-page executive summary.

The Virginia Model – for webDownload
The Virginia Model (Executive Summary)Download
Press Release – VA Model Regulatory Reform

Please feel free to view the summary for a short concise recap, or view the full document below in the .pdf viewer below! Download links are included for your convenience if you wish to view it in your own preferred document viewer.

Summary

The Virginia Institute of Public Policy released a report highlighting the success of the Virginia Model in reducing regulatory burdens. The model has saved Virginians $1.2 billion annually by streamlining regulations rather than focusing solely on staffing cuts. This initiative, which started under Governor Northam and continued under Governor Youngkin, has reduced the state’s regulatory burden by over 21% since 2022, aiming for a 25% reduction by the end of Youngkin’s term.

Key Points:

  • Significant Cost Savings: Virginia’s regulatory reforms have led to $1.2 billion in annual savings.
  • Reduction in Red Tape: The state has already cut 21% of its regulations, with a goal of reaching 25%.
  • Faster Processing Times:
    • Department of Professional and Occupational Regulation (DPOR): License processing times reduced from 33 days to 5 days.
    • Department of Environmental Quality (DEQ): Permit processing times cut by 70%.
  • Streamlining Large Regulations: The Stormwater Management Handbook was reduced from 11,600 pages to 1,800, saving $124 million annually.
  • Bipartisan Progress: Despite divided government control, the Virginia Model shows that bipartisan cooperation on regulatory reform is possible.
  • DOGE and the Debate on Efficiency: The Trump administration’s Department of Government Efficiency (DOGE) has highlighted different approaches to efficiency, questioning whether to focus on cutting funding, staffing, or regulations.

The report suggests that Virginia’s approach is a model for other states, demonstrating how targeted deregulation can improve efficiency and reduce costs without sacrificing public safety.

VIPP Press Release – The Virginia ModelDownload