On
bipartisan motion, the Senate voted last night to delay passage
of our state Budget until next week. The delay allows
us to adopt new revenue
forecasts and consider the Federal stimulus package (and
perhaps avoid any journalistic reference to the "Valentine's Day
Massacre").
The
budget is 692 pages long. No document better explains our priorities and
values as a state. On February 9th, the Senate Finance Committee reported
out a
preliminary budget, which reflected sharply declining revenues and
ensuing cuts. Here are some of the major details as it stands now:
K-12
Education:
This is the single biggest hit in the state budget. The Governor proposed
a $340M reduction in Basic Aid for local school divisions by changing
the staffing requirements. The Finance Committee held that cut
to be "temporary," i.e. while amounts are reduced, the
basic funding structure stays in place. We don't want to radically
change an historically successful K-12 program in Virginia based
upon one bad economic year. If the lean times persist, we will have
to revisit this issue. Either way, every school division in Virginia is
currently facing a cut of about 8% in state help.
Higher
Education:
Again, a major hit. The Governor proposed a $309M reduction in higher
education support, which will be spread equally through the universities.
As with K-12, this is about an 8% reduction from last year. The Committee
could not and did not change that. The small consolation prize is that
the Senate Finance did add back in $4M in need-based student aid to cope
with anticipated increases in tuition.
Public
Health:
When the Governor's proposal to increase the cigarette tax failed, the
floodgates opened for deeper cuts to public health. Some are
"one-time" catches like the $126M saved by delaying Medicaid
reimbursement payments for one week. Others, like the additional 3%
reduction to nursing homes, will be longer-lasting. So will the 5%
reduction to our Community Service Boards, which coordinate treatment for the
mentally disabled. I have to mention the Senate's failure to
pass my proposed SB 1133 which restored $100M annually for Medicaid
reimbursement based on reinstating Virginia's share of the inheritance
tax. The 88,038 senior Virginians on Medicaid are the losers on that
one.
Public
Safety: The
Senate Finance Committee approved most the Governor's reductions here with
some additional cuts, e.g. in Department of Corrections. It
is also postponing the next two sessions of Trooper School, i.e. we will
using our existing State Police force through 2010. On the positive side,
we will be implementing the "Turbo Vet" procedure to expedite benefit
claims for returning vets. As an author of that amendment, I was pleased
we could do that.
Transportation: VDOT is eliminating 1,100
positions or 10% of its work force over the next two years. Its overall
budget is slated for a 7% cut from last year's projection, which was already
down significantly from 2007. There will be little if any money for new
construction, either for roads or transit. On the positive side, VDOT
should be re-inserting money for the reforestation of areas denuded
by the HOT lanes construction in Fairfax County. Again, that is a
local item that we sought for Fairfax County.
Whither
stimulus?
The #1 variable before
finalizing the budget is assessing how the Federal stimulus package
will impact Virginia. While the details are hazy, it's apparent that
Medicaid will receive some back-filling. Also we can expect that the Feds
will step in with a significant tranche for accelerating highway and transit
construction. This is critical for northern Virginia and the whole
state. My next Sentinel should contain those details.
In the
meantime, enjoy a happy Valentine's Day with your loved ones.
JCP
Notes: I
close this newsletter by mentioning the recent passing of Fred Silverthorne who
was 90 years old. Father of my friend and former City Council
colleague Scott Silverthorne, Fred was a highly decorated Navy pilot who became
active in civic affairs upon his retirement. He eventually became Mayor
of Fairfax City in 1978 and steered the City through some
crucial years in its history. Fred was a mentor to me when I moved back
to the City to start a law practice and pushed me to run for office.
We'll miss him.
The
Senate remains in session until at least March 1st. If you have
comments or questions about pending legislation, please do not hesitate to
contact me in Richmond at (804) 698-7534 or
kathy@fairfaxsenator.com.
You can also check my website
www.fairfaxsenator.com or
make comments on my Assembly blog
www.oxroadsouth.com
regarding local, state or national concerns. Let us know how we can
represent you better.
Sincerely,
Chap Petersen
