Budget

Delegate Phil Hamilton on WRVA on August 18, 2009

Delegate Phil Hamilton was on WRVA discussion the state budget and new revenue projections.

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Speaker Howell on Latest $1.5 Billion Revenue Projection Reduction by Governor Kaine

RICHMOND, VA – Virginia House of Delegates Speaker William J. Howell (R-Stafford) today issued the following statement after Governor Kaine’s remarks to the Joint Legislative Money Committees regarding the latest downward revision of the revenue forecast upon which the Virginia state budget is set:

“Families and businesses across the Commonwealth are grappling with the worst economic recession in generations,” remarked Speaker Howell. “Along with them, leaders in state government must wrestle with the grave financial challenges with which we are confronted. Throughout the ongoing process of adjusting the revenue estimates for the current fiscal year, we must not lose sight of the very real and painful consequences this recession is bringing to bear on Virginians who are struggling to live within their means.

“While no one takes pleasure in predicting a lengthy recession, many experts remain unsure if the economy has reached the bottom of the downturn let alone the length and strength of any potential recovery. This uncertainty demands a sober, realistic and above all conservative approach to the Commonwealth’s revenue forecast not only for this current 2010 fiscal year but the upcoming 2011-2012 biennial state budget. Fiscal prudence dictates adopting estimates that are restrained and reflective of the apprehension permeating the economy.

“At the Governor’s Advisory Council on Revenue Estimates (GACRE) meeting on August 5, I and other legislative leaders recommended adopting the least optimistic revenue forecast presented to us by the Administration. While GACRE is strictly an advisory panel and has absolutely no formal approval authority because that resides solely with the Executive Branch, I am pleased Governor Kaine has finally taken a realistic view on the projected budgetary shortfall the legislature will be facing at the upcoming 2010 General Assembly session.

“With a clearer understanding of our future revenue figures, it is now up to Governor Kaine to use his authority given to him by the General Assembly to implement the needed spending reductions – sooner not later – to ensure that the Commonwealth adheres to its constitutional responsibility of maintaining and producing a balanced budget. The longer the Commonwealth delays not doing anything about aligning spending with incoming revenues, the harder it is to make up the difference.

“As Virginians are painfully aware, fiscal responsibility by state leaders, business growth and job creation – not higher taxes or more spending on government programs – are the keys to a robust economic recovery. Going forward now and later this year, I hope the Governor chooses the right path in addressing Virginia’s ongoing budget shortfall.”

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Link to Press Release

Republicans Respond to State Revenues Shortfall

Delegate John O’Bannon on WRVA

Mp3

Delegate Kirk Cox on WRVA

AUDIO: GOP Reaction To Budget Shortfall
Delgate Kirk Cox Calls Shortfall Discouraging
Tuesday, June 16, 2009

Richmond, Va. (1140wrva.com) Virginia Secretary of Finance Richard Brown told members of the House Appropriations Committee that the budget shortfall could grow to $300 million for fiscal 2009, which would be about $100 million more than the previous forecast earlier this year.

Republican Delegate Kirk Cox said the news about the budget is discouraging, and says the big concern is next year if the economy doesn’t turn around.

Republican Delegate Chris Jones wonders whether real estate sales will slide again with home loan rates spiking.  GOP Delegate Phillip Hamilton, along with Cox, wonder if rising gasoline prices won’t snuff out consumer confidence.  Listen to Audio

Free Lance Star – Sticky stimulus cash a bad deal for Virginia

Virginia’s small business owners–like their colleagues nationwide–create about 70 percent of all new jobs in the state. But now they are struggling in the current economy. Some of these men and women have seen demand for goods and services decline. Others cannot obtain the needed credit to expand and diversify in order to stay competitive.

In such difficult times, we all want an environment that encourages employers to start putting people back to work. Unfortunately, the federal government has passed legislation that entices states to make the cost of doing business even greater.

The federal stimulus bill stipulates that in order to receive a portion of those temporary funds, state governments must permanently increase their unemployment payroll taxes. Will Virginia be lured into making changes that can damage employment long-term?

Rest of Article

House of Delegates Pass 2009 Budget Amendments

The House of Delegates has passed the 2009 budget  amendmentss on a resounding 90-8 vote.  The budget amendments for this year are a significant move forward for the state in the areas of health care and public safety.

The Governor had proposed signifcant cuts to MR waivers, which enable families to seek care for their loved ones in or near their homes.  The budget amendments restore the 200 waiver slots proposed to be cut by the Governor and add an additional 200 slots.

The Governor had proposed massive cuts to sheriffs and local police.  He proposed cutting funding by 10% to these important public safety officials.  The budget amendments passed by the House of Delegates restores the proposed cuts.

There are additional amendments that ensure education is protected in the Commonwealth as well.   The amendments provide $126 million to help colleges and universities with moderating rising tuition rates.  Amendments also protect public money going to public education to ensure money goes to the classroom.

Statement by Speaker Bill Howell