State facing $3.5 billion shortfall in next budget
BOB BROWN/TIMES-DISPATCH
Sen. Charles J. Colgan, D-Prince William, listening during the General Assembly earlier this year, said today the economic turnaround isn’t fast enough to help the state budget.
Published: November 19, 2009
Updated: November 19, 2009
PORTSMOUTH — Virginia lawmakers learned today that they have a $3.5 billion hole to fill in the next two-year budget as well an estimated $209 million shortfall in the current spending plan.
The next two-year budget is expected to fall approximately $600 million short in revenues and include about $2.9 billion in additional spending, according to analysts for the Senate Finance Committee.
The increased spending is primarily for the Medicaid program for the poor, which would require an additional $1.8 billion to replace federal stimulus money used in the current state budget to run the program as well anticipated growth and demand for services.
However, the spending pressure outlined by the finance staff did not include replacement of about $365 million for public education that was covered by temporary stimulus dollars.
The finance committee opened a two-day meeting in Portsmouth to review the budget outlook in what is called the longest and deepest economic downturn since the Depression.
“We had hoped the economy would begin to turn around,“ said Sen.Charles J. Colgan, D-Prince William. “We know now that this is unlikely so we must deal with holes in the budget.“
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Reader Reactions
Jack,
Nothing was ever said to underscore the importance of our educators.My concerns are DIRECTLY with both teachers and troopers/BCI agents. Both missions are sacred to society and that’s the exact point. We have too many people managing a “score card” and we worker bees are always struggling to obtain the tools for our jobs. The front line staffing of VSP is the same in many areas as the 1960’s while population rises.
I’m an alarmed Virginian who hears State Troopers may be cut. I understand State Police just lost its Manassas aviation base.
I’m not alarmed. It’s been obvious for some years now the State Police have been overstaffed. They use this excess manpower to conduct search and sniff checkpoints disguised as DUI checks and have taken on tasks outside of their original charter.
I think we will find if in fact they are cut the manpower will be allocated and redirected to the essential core duties and less PR activity.
The state police are no different than any other government agency. Their mission is no more sacred than a teachers mission is to educate.
Let’s see how Steven Flaherty handles this. So far his performance as a political appointee has not impressed me.
I find many aspects of life have pros and cons. I voted for the Gilmore scam called the “ No Car Tax” because he sold what I liked hearing. In short, we need to think about the big picture and how to run our beloved state. I’m a Republican,looking up to Reagan as a child and pushing hard for George Allen but voted for Warner, having not enjoyed the Gilmore times.
Bottom line, I’m an alarmed Virginian who hears State Troopers may be cut. I understand State Police just lost its Manassas aviation base. I hope a child or senior citizen aren’t missing around there this winter. Waiting on an aircraft from hours away may be too late.
Our Delegates,Senators and Governor need to step up for Virginia first and forget about what’s next in a political carrer . Compromise shouldn’t be viewed so negatively because it allows things to get done.
If you want an absolutely fair system, put a mileage tracker in every single vehicle and pay a tax per mile driven. The road funding mechanism should be directly pegged to use. Anything else distorts the true cost of the road network.
Aren’t you the same guy advocating raising the gas tax?!?
Not so. Just because you don’t drive you are dependent on the transportation system for every facet of your life. Your food, your clothing all are transportation dependent. I don’t think you stay shut up in your hose 24/7 so you obviously have to use the highways.
While I agree 100% with this reasoning, I do like squier’s idea to pay based on the miles you drive. Of course, we’d have to figure out a way to tax only the miles you drive in Virginia, and not other states.
That’s not fair at all. Under your system, the more you use the government service, the less it costs you. If I don’t drive, why should I pay a sales tax on everything I buy to pay for roads I don’t use?
Not so. Just because you don’t drive you are dependent on the transportation system for every facet of your life. Your food, your clothing all are transportation dependent. I don’t think you stay shut up in your hose 24/7 so you obviously have to use the highways.
All Virginians are equally responsible for maintaining our transportation system.
“The lost revenue could easily be made up by raising the state sales tax. That way every Virginian would be paying their “fair” share. Not just the ones who happen to own a vehicle that is taxed on it’s value.
*****
That’s not fair at all. Under your system, the more you use the government service, the less it costs you. If I don’t drive, why should I pay a sales tax on everything I buy to pay for roads I don’t use? That’s just wealth redistribution to support road welfare.
If you want an absolutely fair system, put a mileage tracker in every single vehicle and pay a tax per mile driven. The road funding mechanism should be directly pegged to use. Anything else distorts the true cost of the road network.
Are there any of our legislators with enough courage to introduce
legislation to repeal the NO CAR TAX?
I sure hope not! I would like to see politicians get enough backbone to finish getting rid of the remnants of the most unfair, regressive and punitive tax ever enacted.
The lost revenue could easily be made up by raising the state sales tax. That way every Virginian would be paying their “fair” share. Not just the ones who happen to own a vehicle that is taxed on it’s value. This tax is nothing more than socking it to those who have newer vehicles. “Get the haves and redistribute to the have nots.
All Virginians should be taxed equally and really should not have anything to do with personal income or wealth. Each citizens receives equal benefits of government so therefore each should pay equal amounts. We are not a socialist state yet but Obama is working hard at making us one.
Bravo taxpayer! A rational voice on here is a treat. I am so very tired of all the partisan sniping. During the period of time that all of the problems developed, we have had a strong two-party system here. That means a shared responsibility for the good and the bad. As for cooking the revenue estimates, please look around before continuing this same old line. National economists missed the boat, virtually every other state missed the boat, in short, no one was even close to accurately predicting the depth and length of this economic crisis. This is a national problem and there aren’t easy solutions. Throwing blame around is easy, devising solutions not so easy. Just saying “cut the waste in government” and “get rid of the lazy bureaucrats” are not helpful solutions.
Taxpayer, thank you. I appreciate someone who understands pragmatism. We’re in a hole and not making any progress toward getting out unless we accept some collective responsibility for the mess we’re in. It’s either take care of the problem now or keep passing the buck.
I think we all need to consider that Virginia is not an island. At one time there were over forty states facing budget
deficits, and many states like Virginia are in the same boat of revisiting their budgets. There are some serious national (and global)macro-economic issues going on that need to be considered. Please read and consider the analysis (I posted these links earlier)
http://www.theglobeandmail.com/news/opinions/a-tale-of-two-american-economies/article1366935/
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