Aposematic's Blog

Conspicuous and Serving to Warn

Virginia Budget in Surplus

Below is a copy of an email I received from Governor McDonnell’s office. Virginia has a $400 million surplus for fiscal year 2010. How did Virginia do it—no increase in taxes and spending cuts.

Notice for Liberals: I will not be responsible if Liberals short out their keyboards while crying!

 

Dear John,
Just a few hours ago, Governor McDonnell delivered the annual Address to the Joint Money Committees of the General Assembly.
In his address, the Governor confirmed that Virginia has a budget surplus of over $400 million, double what was anticipated in July.
With the support of both Democrats and Republicans in the General Assembly, Governor McDonnell has achieved real results for Virginia, turning a $1.8 billion budget deficit into a $400 million surplus by cutting spending and not raising taxes, and has put in place policies to encourage job creation which have made Virginia the most business-friendly state in America.
Below is some coverage of the good news. I hope you will help tell Virginia’s success story by forwarding it to your family and friends.
Finally, please tune in to Fox Business Network at 5:15pm today to watch Governor McDonnell discuss the surplus and how fiscally conservative, pro-growth policies are laying the foundation for more jobs and opportunity throughout the Commonwealth.
Thank you very much for your continued support.
McDonnell to state lawmakers: ‘Budget conservatively’ despite surplus
While Virginia finished the last fiscal year in the black, the development hardly marks the end of the state’s fiscal challenges.
By Michael Sluss | The Roanoke Times
RICHMOND — Gov. Bob McDonnell told state lawmakers this morning that Virginia finished the last fiscal year with a surplus of $403.2 million, but cautioned that the state must continue to "budget conservatively going forward."
The year-end balance nearly doubled an initial projection the administration issued last month based on general fund tax collections for the 12-month period ending June 30. Tax collections exceeded the state’s budgeted projection by $228 million, and unspent balances by state agencies added another $175 million to the bottom line.
Most of the excess revenue is obligated under the new state budget that took effect July 1. State workers, who have not had a raise in nearly three years, will receive a 3 percent pay bonus in December that will cost $82.2 million. Some of the surplus also will be allocated to public schools, transportation and the state’s water quality improvement fund.
In a speech to the General Assembly’s tax and budget-writing committees, McDonnell applauded his predecessor, Democrat Tim Kaine for proposing "some very tough budget cuts" to balance the budget. And he said lawmakers in both parties can share credit for forging an agreement on a balanced budget.
While the state finished the last fiscal year in the black, the development hardly marks the end of the state’s fiscal challenges. The expired budget was balanced with a combination of spending cuts, an infusion of federal stimulus funds and accounting maneuvers that included deferring payments to the state employee pension plan. Lawmakers and McDonnell also approved deep spending cuts to offset a $4.2 billion shortfall in the current two-year budget cycle.
"In this tough environment we must remain fiscally conservative, embrace government reform, and look for more cost effective ways to deliver government services," McDonnell said.
http://www.roanoke.com/news/breaking/wb/257459
Virginia budget surplus grows to $400 million
By Jeff E. Schapiro| Times-Dispatch
Richmond, Va. — Sweeping the corners of the state’s cash drawer, the McDonnell administration has found an additional $174 million — pushing to about $400 million the leftover funds possibly available for recession-wracked programs.
Gov. Bob McDonnell yesterday declined comment on the anticipated windfall, which was confirmed by budget officials. He is expected to announce the revised figures tomorrow in a revenue update to the General Assembly money committees.
"I’ll see you Thursday," said McDonnell, a Republican, when asked by reporters about the additional funds.
The extra dollars largely are those not spent by government agencies in the budget year that ended June 30. However, some of the additional cash, by law, may have to be rolled forward to specific programs.
Such rules would apply, for example, to financial aid for college students and some clean-air and -water programs.
McDonnell announced this summer that Virginia closed the fiscal cycle with a surplus of about $220 million, of which the largest share — $82 million — has been pledged to a one-time bonus for state employees.
Because of the sour economy, government workers have not received a pay raise since November 2007. Thousands have lost their jobs because of spending cuts.
Also, public schools will get a total of $18 million in additional funding; $22 million will go to the Water Quality Fund; and $20 million is guaranteed for the Transportation Trust Fund.
McDonnell took office in January facing a $4.2 billion revenue shortfall. To close that gap, McDonnell and the legislature refused to raise taxes and relied instead on reduced spending, a loan from the public-employee pension system, and federal economic-stimulus money.
Unspent balances are commonplace in Virginia government, even in lean years.
Last year, there was a balance in the general fund — it’s made up of income and sales taxes — of about $615 million.
About $192 million was rolled over, by statute, to programs such as higher education. The balance reverted to the general fund, which supports basic services, including health care, schools and law enforcement.
http://www2.timesdispatch.com/news/2010/aug/18/budg18-ar-459418/

PAID FOR BY OPPORTUNITY VIRGINIA PAC.

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August 19, 2010 - Posted by | Uncategorized

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