Impact felt in Va. schools, roads, military

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• Obama's first 100 days

• Impact felt in Va. schools, roads, military

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Virginians need only look to their state and local budgets, their politics, their schools and highways and their military bases to measure the impact of President Barack Obama's first 100 days.

Budgets

Recession-wracked Virginia is closing a hole in its two-year, $77billion budget with more than $1.5 billion in cash from Obama's plan to kick-start the economy with a gush of federal spending.

More than $4.4 billion in stimulus funds is being steered to a range of programs, most notably transportation, education and health care.

Public schools are receiving $365 million, most of which will offset deep cuts. More than $1.2 billion is available for Medicaid, which provides health care for the aged and poor. More than $700 million will be funneled to transportation projects, principally highway repaving and mass transit.

The city of Richmond is in line for $11 million, most of which will finance improvements to Main Street Station in Shockoe Bottom.

But some stimulus money has been left in Washington. The Republican-controlled House of Delegates earlier this month rejected $125 million to expand eligibility for unemployment benefits.

Politics

Two of Virginia's political leaders have been vaulted to national prominence because of Obama's ascent to the White House.

Gov. Timothy M. Kaine, an early ally of Obama, is the president's handpicked choice for chairman of the Democratic National Committee.

In that post, Kaine is responsible for raising and directing millions of dollars to Democratic candidates, including those running statewide this year in Virginia. He also will serve as the party's -- and Obama's -- lead attack dog in scrapes with Republicans.

Rep. Eric I. Cantor, R-7th, a Henrico County lawyer and developer, has risen to the No. 2 slot in the Republican Caucus of the House of Representatives.

Cantor's immediate objective is to rally Republican opposition to Obama's economic bailout. All Republicans in the House of Representatives voted against Obama's stimulus package.

Military

The new administration is blocking a proposal made in the closing days of the Bush presidency to shift one of five nuclear aircraft carriers from Virginia to Florida.

Kaine, the state's two U.S. senators, Democrats Jim Webb and Mark K. Warner, and House members in both parties objected to the move, saying it would cost $600 million to $1 billion and drain 3,100 military jobs from Hampton Roads.

Virginia's military bases will receive nearly $330 million through the stimulus package for infrastructure work and energy-saving projects.

A spokesman said the Virginia National Guard's deployment overseas has not been changed as Obama pulls troops out of Iraq and sends more to Afghanistan.

Health care

Because about $360 million of the $1.2 billion in Medicaid funding was retroactive to Oct. 1 of last year, hospitals already are being reimbursed for that part of the funding, said Richard Brown, the state's secretary of finance. Brown said most of the stimulus money coming to the state will not be spent until the next fiscal year, beginning July 1.

The Obama administration says legislation the president signed will provide an additional 79,500 Virginia children with health care. This was financed with a 62-cents a pack increase in the federal tax on cigarettes -- to $1.01 a pack -- that took effect April 1.

Henrico County-based Philip Morris USA, the largest tobacco company and the maker of Marlboro, is forecasting a drop in sales, but spokesman Bill Phelps said last month that he cannot predict how big.

Economy

The economic recession began with the collapse of the housing industry. Obama says the money going to Virginia will create or save 93,000 jobs. Kaine said the extra money saved more than 7,000 state jobs.

About 2.9 million Virginians began getting a tax credit this month through payroll deductions.

After 18 months of dreary sales results, Mike Toalson of the Home Builders Association of Virginia said the homebuilding industry began to see some signs of life in increased traffic and increased sales about a month ago. He attributed this to pent-up demand and low mortgage rates.

Nancy Thomas, president of the Retail Merchants Association, said consumer confidence is up and people are beginning to buy again. She said the stimulus package helped the state budget and local budgets, but problems remain in the banking industry.

Small and medium companies "have lots of opportunities to get inventory at good deals, but can't get the financing," Thomas said.

In the overall state economy, several major employers have gone bankrupt and, at the last count, unemployment was rising.

Contact Tyler Whitley at (804) 649-6780 or twhitley@timesdispatch.com.

Contact Jeff E. Schapiro at (804) 649-6814 or jschapiro@timesdispatch.com.