Showing posts with label Virginia budget. Show all posts
Showing posts with label Virginia budget. Show all posts

Monday, January 31, 2011

What a sweet guy

I got a press release from Del. John O'Bannon (R-Henrico) Friday.

He was pretty proud of himself.

He'd asked for and gotten an opinion from Attorney General Ken Cuccinelli that two of Gov. Bob McDonnell's proposed amendments to the budget were unconstitutional.

That's pretty unusual, because everybody involved -- O'Bannon, Cuccinelli and McDonnell -- are Republicans. Usually that's not the kind of thing a delegate, or an attorney general, would do to a governor of his or her own party.

What was O'Bannon's objection?

Was it money for the Governor's Opportunity Fund, which provides corporate welfare to attract businesses here. These are deals on which the state usually gets the short end, since there is no enforcement if the businesses actually bring the jobs and the economic activity they've promised?

Nah.

Was it breaking the agreement that the state made years ago with public employees, requiring them to pick up more of their own pension costs in return for a raise that would see them lose "only" 2% from their take-home pay?

Nah.

Was it issuing between $3 billion and $4 billion in new debt to pay for highway contruction?

Nah.

What O'Bannon wanted stopped were two amendments, each for $500,000, for Operation Smile and the Federation of Food Banks.

Operation Smile is a worldwide charity that provides medical volunteers to treat facial deformities -- like cleft palates -- in poor children.

The food bank group is pretty self explanatory. The money was to buy food that would be distributed to needy Virginians.

So what Del. O'Bannon found objectionable in the state's $70 billion-plus budget was giving deformed children a better appearance and outlook, and feeding hungry Virginians.

That's certainly the way to win friends and influence people and disabuse anyone of that old notion that the Republican Party doesn't have any compassion.

What a sweet guy, that O'Bannon. And he's a doctor.

I'm sure he has a great bedside manner.

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Thursday, March 18, 2010

Rotten to the core

So now we have a budget.
It’s an ugly, ugly budget.

Granted, it’s not as bad as it could have been.

That’s because the Senate prevailed and scaled back some of the cuts that the House of Delegates and Gov. Bob McDonnell had proposed for public education. Still, with the cuts the legislature added and those in former Gov. Tim Kaine’s introduced budget, public education got hit for about $1.2 billion in the next biennial budget.

That’s more than a quarter of the $4.2 billion in reductions that had to be made due to declining state revenues.

Ugly.

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Monday, February 22, 2010

Common sense cut out of budget

It could have been worse.

Both houses of the General Assembly unveiled drafts of their budgets Sunday. They’re a little different, but probably not enough for anyone to go to war over. They each differ somewhat from Gov. Bob McDonnell’s belatedly revealed suggestions, but they each head in the same direction.

That’s because, like McDonnell, the legislators, Democrats and Republicans alike, are expert politicians. They know how to read election returns. Some of them don’t know much else.

And looking at last fall’s election returns, it’s pretty clear that Virginia voters are in no mood to be magnanimous. We aren’t interested in tax increases. We aren’t interested in what’s best for our state or our communities. We’re scared for our jobs, we’re worried about the economy and we want our leaders to pander to those fears.

There’s no question that cutting $400 million (the Senate), $600 million (the House) or $700 million (the governor) from K-12 public education while retaining the $950 million in car tax “relief”, which for the vast majority of people in Virginia amount to less than $1 per day, is shortsighted and selfish.

The governor and the legislators looked at the voters of Virginia and decided that yes, that’s just how shortsighted and selfish we are.

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Monday, February 8, 2010

Hiding out in the Governor’s Mansion

There’s something odd going on in Richmond.

It’s a budget year and there’s a process the state normally goes through to reach a balanced budget.

In a gubernatorial election year that process starts with a proposal by the outgoing governor.

Gov. Tim Kaine did his part, although nobody liked his contribution. He proposed a budget with more than $2 billion in cuts and more than $1 billion in tax increases to fill a hole in the next biennial budget that may be as big as $4.4 billion.

With Republican in firm control in the House and “No Tax Increases” Bob McDonnell newly installed in the Governor’s Mansion, the tax hike was quickly disposed of.

But that’s where the process has broken down. Because the next step in the process should be budget amendments submitted by the new governor to change the old governor’s budget.

While McDonnell has submitted a few amendments to balance new spending programs he’s proposed – largely economic development measures – he has not addressed the large cuts that need to be made to balance the budget. Even if McDonnell were to accept all of Kaine’s cuts – and the new governor has said he disagrees with some, including cuts in public safety, higher education and state employee retirement contributions – he needs to make nearly $2 billion in cuts. If he restores any of Kaine’s cuts, he’ll need to make even deeper cuts.

But the governor has not submitted any budget amendments to propose those cuts.

And recent comments by his press secretary suggest that he may not.

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Thursday, January 7, 2010

When ‘No Tax’ pledges come home to roost

In 2005 Bob McDonnell won an attorney generals race that went to a recount.

By the time the 2010 session of the General Assembly is over, he might want a recount of the 2009 governor’s race that he won in a landslide.

Because Virginia’s new governor faces a no win situation.

McDonnell campaigned on a pledge not to raise taxes. And he’ll honor that promise. He comes form the branch of the Republican Party that believe any tax, at any time, is evil. He’s a believer in the Gospel according to Ronald Reagan. (St. Ronnie, like my Dad, was apparently from the old “Do-as-I-say-not-as-I-do school. Both as governor of California and as president, he raised taxes when he thought it was appropriate.)

So there won’t be any new revenue to plug the $3 billion hole in the state’s next budget.

And, the commission that monitors the state’s debt just informed the governor and the General Assembly that they can’t borrow any more money, either.

Actually, McDonnell and the legislature could raise the state’s debt ceiling. But that’s not exactly a conservative way to begin one’s administration. And it could put the state’s AAA bond rating at risk. McDonnell certainly doesn’t want to be the governor who lost Virginia’s AAA rating, which it has held for more than 70 years.

If you can’t raise taxes and you can’t borrow money, the only thing left is to cut the budget.

Theoretically, that’s not a bad position for a Republican governor to be in. After all, the Republicans are supposedly the party of small government. They could see this as an opportunity to scale back state government.

Except they’ve been beaten to it. Liberal Democratic Gov.

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Thursday, November 19, 2009

Okay, now what?

As a result of this month’s elections, Virginians now have split government.

At the state level The Party That Has No Intention of Governing represents us and at the national level The Party That Is Afraid to Govern represents us.

At the state level, that might work out okay over the next four years.

Based on the most recent reports of tax revenue collected, the Fiscal Year 2010 budget is going to be at least $1.6 billion out of balance when the General Assembly convenes in January. Once that problem is fixed, we can look forward to continuing budget gaps in the FY 2011-12 budget, which will be passed this year. The shortfalls in that budget could reach $3 billion by the end of the biennium, unless the economy turns around more forcefully than anyone is now predicting.

In that climate, there’s not going to be much governing done. So voters may have put the right party in charge by electing Bob McDonnell governor and leaving a Republican majority in control of the House of Delegates.

The next governor and General Assembly are going to have to go at the budget with a hatchet. Both the previous Democratic governor’s Mark Warner and Tim Kaine had to go through rounds of budget cuts – but at least Republicans should enjoy it.

Because, according to their political rhetoric, they are the party that wants a smaller government that does less.

Now is their chance.

Those nagging problems that the state has faced for a decade, like transportation funding, teacher salaries, mental health funding, low unemployment compensation?

Forget about them.

At least for the next four years.

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