Bolling, Wagner spar over state’s fiscal woes
Published: July 6, 2009
Lt. Gov. Bill Bolling, running for re-election, is blaming Democratic challenger Jody Wagner, a former state finance secretary, for Virginia's budget woes.
In a newspaper column and a fundraising appeal, Bolling links departing Gov. Timothy M. Kaine's former finance chief to the continuing cash crunch, faulting her for flawed revenue projections.
Firing back, Wagner criticizes Bolling for opposing bipartisan measures, including new taxes in 2004, that won Virginia accolades for fiscal discipline from Wall Street.
The Bolling-Wagner duel today highlights the dominant issue of the 2009 statewide and House races: the continuing recession that is pushing up joblessness and forcing spending cuts across government.
"We all know that there is no fiscal integrity in Washington, D.C.," Bolling writes in an online appeal for donations. "Unfortunately, this type of fiscal mismanagement and budgetary gimmickry does not stop at the Potomac River."
Bolling continues, "The truth is that after four years of the Kaine/Wagner administration there is very little fiscal integrity in Richmond, either."
Wagner, treasurer under Gov. Mark R. Warner, tied Bolling to Virginia's last GOP chief executive, Jim Gilmore, whose tax-cut policies were faulted by lawmakers in both parties for a hefty cash shortfall in 2002.
"The reality is Jody Wagner and Mark Warner spent two years cleaning up the mess left by Jim Gilmore and Bill Bolling's fiscal policies," Wagner spokeswoman Elisabeth Pearson said in an e-mail.
Warner won $1.4 billion in higher taxes for education, law enforcement and welfare. Because of the increase, rating agencies affirmed Virginia's highest-possible triple-A credit designation.
Writing recently in The Washington Times, Bolling warns of more budget cuts should revenue growth miss the projected 4 percent. The state has already trimmed more than $5 billion since 2007.
A continuing shortfall, coupled with the end of federal stimulus aid in 2011, means "the next governor will likely inherit a fiscal mess," says Bolling.
Referring to plaudits for Virginia in the business press, Pearson counters:
"If Bill Bolling is wondering how we became the 'best-managed state' and earned our triple-A bond rating . . . then perhaps he should look back to the last seven years of the successful fiscal management in the Warner and Kaine administrations."
Contact Jeff E. Schapiro at (804) 649-6814 or .
Reader Reactions
So well into a nationwide recession, over the objections of Bill Bolling and General Assembly Republicans, Jody Wagner submits a revenue forecast which turns out to be $4 BILLION too optimistic. Then, in the midst of the revenue shortfall that seemed to surprise only the Kaine Administration, her plan to help get our economy back on its feet is to take more money out of the dwindling incomes of Virginians?
If Jody Wagner is any indication, sinking more money into government bureaucracy is probably not the way to go.
Meanwhile, Bill Bolling opposed tax increases and supported streamlining government agencies rather than spending money we didn’t have. Doesn’t seem like a tough choice to me.
So Wagner spent a few years with Warner “fixing” Gilmore’s mess but suddenly works with Kaine and there’s a bigger mess. And this warrants her a promotion? This isn’t exactly a great campaign selling point for her. She needs to stop sending Virginia into a downward financial spiral before she applies for a new job.
So… Wagner is saying it’s Bolling’s fault that the Democrats could not raise taxes? Personally, I like not paying more in personal property taxes.
I am also wise to the tricks of cutting services to high profile areas while pet project go unnoticed. Times are tough all over, however, I can’t demand any more income to cover rising prices either. Live within your means for a change, it’s what the rest of us have to do.
Granted something has to be done about the IT contract, but in fairness, this project is so big and complex that missed schedules are not that unusual, even in the best firms.
As for the 9% unemployment and unrealistic budget projections, one can hardly point a finger at any politician in Virginia when the same conditions prevail in the vast majority of states.
How mlong ago were we listed as “the best managed state”. Bet that wouldn’t happen today. How long do the Democrats think they can ride that with 9% unemployment and budget projections that are unrealistic coupled with all the mismanagement inthe two biggest contracts the state has signed. What next? and how do you blame Jim Gilmore for those?
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