For anyone who wants to understand how messed up the recently-passed Virginia budget really is, see Del. Scott Surovell’s superb analysis at “The Dixie Pig”. Here’s an excerpt:
Going into this budget cycle, we were faced with a $2.1 billion hole to plug after $7 billion of cuts already if we rejected Governor Kaine’s proposal to eliminate car tax relief and increase the state income tax. The budget that the House & Senate just passed on Sunday night was “balanced” by using the following maneuvers.
There are some problems with these methods. The Virginia Retirement System is not our Rainy Day Fund. I do not view “borrowing” monies allocated for retirement as balancing a budget. While it is not technically “debt” borrowed from a third party, it is borrowing from the future. It perverts our state’s pay-as-you-go history.
The reality is that Virginia’s Budget suffers from significant structural deficits that we did not address this session. Our annual expenses exceed our annual revenue. The FY 2010-2012 hole was plugged with one-time fixes that papered over a problem instead of dealing with it. While I am glad that we fought and lessened the impact today, I am very worried about the future.
Other than that, heckuva job the Virginia General Assembly and by Bob McDonnell! Not.