Tuesday, January 12, 2010
General Assembly braces for a new era
Lawmakers return on Wednesday to a new balance of power in Virginia and an extraordinary budget crisis.
General Assembly 2011
Among the major issues: The state's continuing efforts to provide services with fewer dollars and Gov. McDonnell's plan to privatize liquor stores. Session ends Feb. 26.
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RICHMOND -- Virginia lawmakers return to the Capitol this week to observe the transition to a new governor, adjust to a new political balance of power and confront a budget crisis that could have drastic impacts on public services throughout the state.
The General Assembly session will begin Wednesday, when lawmakers will hear a farewell State of the Commonwealth address from outgoing Democratic Gov. Tim Kaine. Republican governor-elect Bob McDonnell will be inaugurated Saturday, giving the GOP a strengthened hand in setting the agenda and finding a solution to a budget shortfall that exceeds $4 billion.
McDonnell led a Republican sweep of Virginia's statewide offices in the November elections, and the GOP fattened its majority in the House of Delegates. Republicans effectively control 61 seats in the 100-member chamber. But Democrats still hold 21 of the 40 Senate seats, pending the outcome of today's special elections for two vacant seats that had been held by Republicans.
"We may have a little more authority, but we can't do anything without cooperation from the Senate," said House Majority Leader Morgan Griffith, R-Salem, who figures to be a key McDonnell legislative ally.
Cooperation will be critical as lawmakers haggle over a new two-year budget that is certain to contain deep spending cuts affecting essential services such as education, health care and public safety and shift costs to already-strained local governments. The state is projected to collect less general fund tax revenue in the 2011 fiscal year than it did in 2006, a ripple effect of the worst recession in generations.
Kaine presented a controversial budget plan last month that cuts spending by $2.3 billion over two years and also eliminates $1.9 billion the state sends to localities to subsidize car tax relief. He called for the outright elimination of the local personal property tax on vehicles and a 1 percent income tax "surcharge" that would generate new revenue for counties, cities and towns.
Kaine, who already has presided over $7 billion in recession-induced budget reductions, argued that state programs could not sustain more cuts than those he proposed last month. But McDonnell and Republican legislative leaders blasted Kaine's tax proposals and have indicated they will demand even deeper cuts.
"It's going to take a lot of statesmanship to reach an accord with this budget," said Sen. Edd Houck, D-Spotsylvania County, a senior member of the Senate Finance Committee.
Even with Kaine's proposed tax changes, his budget plan would reduce state funding for public schools, local law enforcement and social safety net programs and result in 664 layoffs and the elimination of more than 1,800 vacant government positions.
"We think we're looking at some pretty draconian measures and we're bracing ourselves for a really tough session," said Kitty Boitnott, the president of the Virginia Education Association.
Boitnott said Kaine's budget would lead to larger class sizes, reductions to programs and layoffs of teachers and support staff. The damage will be greater if lawmakers make even deeper cuts, she said.
Health care advocates voiced similar concerns after Kaine proposed cutting more than $400 million in state Medicaid spending, limiting services to individuals and reimbursements to providers. In a news release last week, the Virginia Hospital & Healthcare Association warned that Medicaid cuts could jeopardize jobs as well.
"There is no appetite for increasing taxes or other new revenue sources to fund the state's core services," said Laurens Sartoris, the association's president. "Coupled with the continuing national debate on health reform and the potential by the state to need to plug an additional $2 billion budget hole, any substantial hit to Virginia's Medicaid program would result in lost jobs and services in Virginia's hospitals and health systems."
Local governments worry about costs being shifted to counties, cities and towns because of cuts to schools, police departments and constitutional offices.
"This will be a gut-wrenching winter and spring for Virginia's local leaders," said Mike Edwards, the deputy director for legislative affairs with the Virginia Association of Counties.
Lawmakers in the Roanoke and New River valleys said they have been painting a grim picture for local governments and other organizations that rely on state funding.
"We don't have any money," Griffith said, "We're going to do the best we can, but I can't promise you you're not going to get hurt."
Griffith said he expects lawmakers to explore a wide range of cost-cutting options, perhaps even looking to curtail or adjust office hours in some state agencies to save money.
"It will take a combination of creative thinking and cuts," Griffith said. "It won't be easy. But it can be done."
Del. Jim Shuler, D-Blacksburg, said he has told constituents to expect "significant restraint in state support for localities and other programs."
Shuler questioned whether McDonnell and Republicans can manage the crisis through cuts alone, citing growing pressures on public services, the state employees' pension plan, and the state's cash-strapped transportation program.
"I wish the McDonnell administration all the success in the world, but I think they're starting to realize they have a tough road ahead of them," Shuler said.
The budget battle will force lawmakers to be choosy about introducing bills that have price tags attached to them. But it won't stop them from renewing perennial fights over gun rights, capital punishment and government ethics, among other things.
State Sen. Emmett Hanger, R-Augusta County, said he will again introduce legislation allowing individuals with permits to have concealed handguns in restaurants and bars. Kaine has vetoed the bill in each of the past two years, but McDonnell has indicated he would sign the measure if it reaches his desk.
"It's basically affording a right for law-abiding citizens to exercise their constitutional rights," said Hanger, whose bill would prohibit gun-carrying customers from consuming alcohol.
Republican legislators are pushing other measures to expand gun rights, from repealing the state's one-handgun-per-month law to reducing the penalty for mere possession of a firearm on school property. And with Kaine departing, there is little political momentum for legislation to expand instant background checks at gun shows.
McDonnell's move to the governor's office virtually guarantees that Virginia will eliminate the so-called "triggerman rule" in determining eligibility for the death penalty. Kaine consistently vetoed bills that would expand application of the death penalty, but McDonnell has said he supports a law that could make certain accomplices eligible for capital punishment.
All of these battles will play out in a new political climate created by a changing of the guard in the governor's office. Republicans have held a majority in the House for a decade. But this is the first time since 2001 that House GOP delegates will work with a member of their own party in the governor's mansion.
Griffith, the GOP floor leader, insisted that bipartisan cooperation will be essential. But his counterpart, House Minority Leader Ward Armstrong, D-Henry County, said House Republicans will face an adjustment after eight years of doing battle with Democratic governors.
Borrowing a line from Will Rogers, Armstrong said, "It's much easier to criticize the guy in charge than have to apologize for him."
