Times require prudent cuts, and a higher cigarette tax

We don't need the news to know the economy is the No. 1 thing on everyone's minds. We all know someone who has been laid off. We all have seen foreclosure signs in our neighborhoods. We all have cut back on spending, putting off that family vacation or purchase of something we want, but don't need. And we all know that things are likely to get worse before they get better. Virginians are worried, but also hopeful and resolved to weather this economic storm.

As President Obama made clear in his inaugural address, it is time for hard work and tough decisions to get the economy back on track. Congress and the president have started that work by developing a federal stimulus package to create jobs, jump-start the economy, and help the states as they struggle to meet their citizens' needs in times of revenue shortfalls. Gov. Tim Kaine and the General Assembly, likewise, are working to develop a budget that will protect our citizens while making investments to help create jobs.

Government cannot turn the economy around alone. Throwing money into the market is not enough. We need the innovation of the private sector to use that money to turn around sagging businesses, or create new ones that produce new jobs. We need the dedication of workers to make these businesses thrive. But government can help create the environment in which the private sector can succeed.

Creating that environment is a challenge in light of the growing budget shortfall, but not impossible. In December, Gov. Kaine proposed a budget designed not only to cut state spending, but to invest in methods to attract new jobs, successfully educate our children and train tomorrow's work force, and produce new opportunities for a better environment and cleaner-energy future.

Making cuts is not an easy task. Virginia government has a longstanding tradition of fiscal responsibility, resulting in its AAA bond rating. The commonwealth quickly responded to the national economic decline with budget cuts as early as the spring of 2007. Since then, our state agencies have found savings in every area of state government -- streamlining services, consolidating administrative functions, renegotiating contracts, freezing hiring, merging agencies, and laying off workers.

Unfortunately, given the size of the current budget shortfall, which could be as high as $4 billion once the January revenue numbers come in, no area of government can be spared, and services will be impacted. But the cuts necessary to balance the budget must be made in a way that preserves the high-quality education our children deserve, keeps our communities safe, protects our most vulnerable citizens, and creates opportunities for economic growth.

The single largest expenditure in the state budget is education. As stated in the Bill of Rights of the Virginia Constitution, "free government rests, as does all progress, upon the broadest possible diffusion of knowledge, and that the Commonwealth should avail itself of those talents which nature has sown so liberally among its people by assuring the opportunity for their fullest development by an effective system of education throughout the Commonwealth." (Article I, Section 15.) The Constitution goes on to guarantee a high-quality, free public elementary and secondary education system for all Virginia children.

Up to now, K-12 education has been spared any budget cuts. Unfortunately, that can no longer be the case. The governor has proposed a targeted cut -- reducing funding for administrative and support personnel in schools and central offices by applying a funding cap for these positions. Currently, we cap funding for teachers and principals and, as a result, spending on administrative and support personnel has outpaced spending on teachers and principals. Undoubtedly, the House and Senate will propose different cuts. But whatever cuts are ultimately adopted must protect our core priority -- the classroom.

Cuts must also be made in the higher-education system. In making these cuts, however, we must ensure that middleand lower-income students will not be shut out of the higher-education system.

The second most expensive category in the state budget is health care. While Virginia's Medicaid program is leaner compared to other states, cuts here are unavoidable. Unfortunately, this is the very time more Virginians are in need of the health care safety net provided by Medicaid and other agencies. Gov. Kaine proposes cuts that will not take Medicaid coverage away from anyone currently covered, but will cap enrollment to certain programs, freeze or reduce provider reimbursement rates, and delay the expansion of certain services.

To avoid deeper cuts that would not only reduce services but threaten health care related jobs, Gov. Kaine has proposed an increase in the cigarette tax. Needless to say, this is a controversial proposal. But if we do not adopt the cigarette tax, we must find a way to avoid leaving thousand of Virginians without health care coverage and threatening more than 11,000 jobs in our hospitals and nursing facilities.

Over the next four weeks, the General Assembly faces the challenge of meeting the needs of our citizens in an economic crisis with dwindling resources. Ultimately, we will be judged not by the political victories or partisan speeches made during this time, but by how we met that challenge. I believe we are up to the task, and that we will in fact come through this crisis as we have so many in the past -- with a stronger commonwealth.

Jennifer McClellan is a Democrat who represents Virginia's 71st House of Delegates District, which includes parts of Henrico and Richmond. She may be contacted at or (804) 698-1071, and she has a newsletter available at http://www.jennifermcclellan.com.