Wednesday, January 14, 2009
Kaine asks for cooperation in time of fiscal crisis
The governor spoke of a "shared responsibility" during his State of the Commonwealth address.
RICHMOND — Gov. Tim Kaine appealed to Virginia lawmakers tonight for cooperation in resolving the state's budget crisis, saying they have a shared responsibility "to keep the commonwealth on a firm financial footing and to prepare us for future economic success."
"If we act with the resolve that has been summoned by the 7½ million people outside Capitol Square, there’s little doubt that the future of the commonwealth is strong," Kaine said in his State of the Commonwealth address to the General Assembly.
"It is my hope that the size of the challenge, and our connection to so many who have faced similar challenges, will inspire our best efforts to cooperate in finding the best solutions," Kaine said.
Beginning the final legislative session of his four-year term, Kaine reviewed details of his plan for correcting a $2.9 billion budget shortfall triggered by a national economic recession. The governor has proposed deep spending cuts, including reductions in education and Medicaid funding, and an increase in the state’s cigarette tax to balance the budget.
"The fact is, the size of the budget shortfall is too great to provide the same services in the same way that we have in the past," Kaine said. "I have had to make difficult choices in recommending this budget to you, but I believe those choices preserve the services that educate our young people, keep our communities safe, protect our most vulnerable citizens, and create opportunities for economic growth."
Kaine also outlined plans to move quickly on soliciting bids for 30 state building projects and urged lawmakers to increase funding to provide incentives for business prospects. And he made a pitch for a package of energy and environmental initiatives that are central to his agenda during his final year in office, saying Virginia is well-positioned to develop "green jobs."
But the budget shortfall that will dominate the legislative session also was the major focus of Kaine’s 37-minute speech in the House of Delegates chamber. Kaine said his proposed cuts are "targeted and performance based."
Kaine’s budget proposal cuts more than $400 million from the Medicaid program, but he said health care cuts could be deeper without his plan to double the cigarette tax to 60 cents per pack.
The tax increase would generate $148 million annually. Kaine said smoking-related ailments account for about $400 million a year in Medicaid spending.
"I believe that the taxes on smoking should more closely match the budget costs that Virginia taxpayers incur because of smoking," the governor said.
Kaine renewed his call for spending caps on administrative and support positions in public schools, saying those areas "have grown much more rapidly than spending on teachers." The proposal would reduce school funding by $341 million.
He said cuts to state colleges should be accompanied by an increase in student financial aid and said having high-quality colleges "will mean little if Virginia students cannot afford to attend them."
"If we act with the resolve that has been summoned by the 7½ million people outside Capitol Square, there’s little doubt that the future of the commonwealth is strong," Kaine said in his State of the Commonwealth address to the General Assembly.
"It is my hope that the size of the challenge, and our connection to so many who have faced similar challenges, will inspire our best efforts to cooperate in finding the best solutions," Kaine said.
Beginning the final legislative session of his four-year term, Kaine reviewed details of his plan for correcting a $2.9 billion budget shortfall triggered by a national economic recession. The governor has proposed deep spending cuts, including reductions in education and Medicaid funding, and an increase in the state’s cigarette tax to balance the budget.
"The fact is, the size of the budget shortfall is too great to provide the same services in the same way that we have in the past," Kaine said. "I have had to make difficult choices in recommending this budget to you, but I believe those choices preserve the services that educate our young people, keep our communities safe, protect our most vulnerable citizens, and create opportunities for economic growth."
Kaine also outlined plans to move quickly on soliciting bids for 30 state building projects and urged lawmakers to increase funding to provide incentives for business prospects. And he made a pitch for a package of energy and environmental initiatives that are central to his agenda during his final year in office, saying Virginia is well-positioned to develop "green jobs."
But the budget shortfall that will dominate the legislative session also was the major focus of Kaine’s 37-minute speech in the House of Delegates chamber. Kaine said his proposed cuts are "targeted and performance based."
Kaine’s budget proposal cuts more than $400 million from the Medicaid program, but he said health care cuts could be deeper without his plan to double the cigarette tax to 60 cents per pack.
The tax increase would generate $148 million annually. Kaine said smoking-related ailments account for about $400 million a year in Medicaid spending.
"I believe that the taxes on smoking should more closely match the budget costs that Virginia taxpayers incur because of smoking," the governor said.
Kaine renewed his call for spending caps on administrative and support positions in public schools, saying those areas "have grown much more rapidly than spending on teachers." The proposal would reduce school funding by $341 million.
He said cuts to state colleges should be accompanied by an increase in student financial aid and said having high-quality colleges "will mean little if Virginia students cannot afford to attend them."
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