Sunday, March 14, 2010
Virginia budget debate heads into overtime
It was unclear at press time whether a compromise would be ready for lawmakers to vote today.
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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UPDATE (March 14, 2010: 8:46 a.m.): General Assembly negotiators reach budget agreement early Sunday morning; make cuts to education, health care
RICHMOND -- General Assembly budget negotiators neared a deal on a two-year state spending plan Saturday that calls for cuts in education, health care and other services and some increases in fees to address a shortfall of more than $4 billion. But lingering disputes have driven the legislature into overtime.
The negotiations inched toward completion after lawmakers agreed to extend the 60-day legislative session by one day and to hold 5 p.m. floor sessions today in the Senate and House of Delegates to vote on a budget bill. But with talks still going on late Saturday night, it was unclear whether a compromise bill would be ready in time for lawmakers to act today.
"I think we're coming out of this situation with a reasonably good budget," said Del. Lacey Putney, I-Bedford, the chairman of the House Appropriations Committee.
Negotiators from the two chambers have spent more than a week in sporadic talks to forge a compromise on a two-year budget, haggling over fees and funding for schools, health care and public safety, among other things. A handful of issues were unresolved Saturday night, but Sen. Edd Houck, D-Spotsylvania County, said: "I don't think any of them are deal breakers."
The two sides were close to a compromise on public school funding and had a tentative agreement on a package of fee increases -- two of the major issues dividing the Republican-run House and Democratic-controlled Senate. They also tentatively agreed not to furlough state workers during the upcoming two-year budget cycle. But a single furlough day scheduled for this May remains in place.
The Senate made school funding a top priority in budget talks, and House negotiators ultimately made significant concessions. Gov. Bob McDonnell last month proposed $731 million in additional education cuts to help balance the budget. The compromise budget will contain about $250 million in cuts, negotiators said. The cuts would come on top of reductions former Gov. Tim Kaine included in his December budget proposal.
The House also abandoned plans to consolidate reduced funding for three at-risk school programs into a block grant and change the way at-risk funds are distributed. Democrats strongly opposed the proposal.
As part of the emerging compromise, House and Senate negotiators tentatively agreed to freeze 19 vacant judgeships for the two-year budget cycle. The unfilled judgeships include a vacancy created by the retirement of Circuit Court Judge Ray Grubbs, who sat in Montgomery and Floyd counties.
Budget negotiators also had a tentative deal on economic development funding, approving about $40 million in new incentives. McDonnell sought about $50 million in new spending for economic development, which he identified as a high priority.
The compromise budget will reflect major changes to the proposal Kaine presented to lawmakers in December. Kaine called for $2.3 billion in spending cuts and ending the $950 million in annual subsidies the state sends to localities for car tax relief. He also proposed an income tax increase that would generate new revenue for counties, cities and towns.
But Kaine got no support for his income tax plan, and neither house proposed reductions in car tax relief payments. McDonnell also opposed new taxes. That left lawmakers to balance the budget largely through cuts.
Advocates for sheriffs, public schools, hospitals and mental health programs have pressed their cases for funding at the Capitol, while anti-tax advocates urged lawmakers to hold the line. Government and school officials throughout the Roanoke Valley have decried funding cuts that will force major reductions in services or increases in local taxes.
"Cutting is not fun for anybody," Putney said. "I wish we could have avoided cuts to public education and health and human resources. The money was not there. Nobody voted to increase taxes."
