Education cuts called possible
While the General Assembly and the four prospective candidates for governor don't want to increase taxes while the economy is in recession, proposed cuts in K-12 education and health care will be on the table, two legislative leaders said yesterday.
Del. Phillip A. Hamilton, R-Newport News, vice chairman of the House Appropriations Committee, and Sen. Charles J. Colgan, D-Prince William, chairman of the Senate Finance Committee, made the comments while speaking to journalists at Associated Press Day at the Capital, held at the Richmond Times-Dispatch.
Gov. Timothy M. Kaine, who earlier predicted a $2.5 billion deficit, was told yesterday afternoon by revenue forecasters that he might have to add $270 million.
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Kaine will present a revised shortfall figure to the General Assembly money committees Dec. 17.
He already has ordered layoffs, taken $400 million from the state's rainy-day fund, postponed state employee raises, closed older prisons, and cut college funding during the first fiscal year of the 2008-10 biennium. The further cuts will seek to balance shortfalls occurring in the second year, beginning July 1 next year.
The three Democrats and one Republican who hope to succeed Kaine agreed yesterday that the state needs more money for transportation but that now is not the time to seek it.
"When you are in a recession, the worst thing you could do is to try to tax your way to prosperity," said Attorney General Bob McDonnell, the GOP candidate for governor.
The Democrats are state Sen. R. Creigh Deeds of Bath County; Del. Brian J. Moran of Alexandria; and Terry McAuliffe of McLean, a former chairman of the Democratic National Committee who is expected to announce his bid formally Jan. 7.
McDonnell said he had proposed a $1.3 billion compromise transportation solution that used fee increases, bonds and a regional approach, and Deeds and Moran voted for it.
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A key part of the plan was found to be unconstitutional, and the fees were withdrawn after a public outcry.
"I'm a little surprised [McDonnell brought up] that monstrosity," said Deeds, who added that he voted for it only after Kaine offered amendments.
It was the Kaine amendments that were found to be unconstitutional, McDonnell noted. Deeds said McDonnell's office approved their legality.
In a panel discussion on the budget, the state's secretary of finance, Richard D. Brown, noted that K-12 education funding was not touched during the first round of budget cuts. "Public education is on the table, and it will be looked at," he said.
Robley Jones, lobbyist for the Virginia Education Association, said the VEA hopes Kaine will look at "both sides of the ledger," including selected tax increases, when he tries to balance the budget.
Brown said pay raises, which were pushed back from this month to next July, may be looked at again and added, "Let's face it, there will be layoffs."
Hamilton and Colgan said it will be difficult to cut Medicaid funding, because the state's contribution to this health-care program is so meager.
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Reader Reactions
Any idiot knows you don’t raise taxes in a recession, and the VEA lobbyist calling for “selected tax increases” shows that our system of education isn’t exactly being run by geniuses. In the current scenario everything should take a hit. We won’t get this economy going unless we get housing going again, and we can’t do that in Richmond because it’s overregulated. Henrico County again showed it understands more about what makes the economy run than any other county around here by delaying its water and sewer tap fee increase until 2010. Let’s hope more counties see very soon that local government has to help housing build cheaper homes by rolling back overly costly regulation before our economy will get moving again.
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