Capitol Column - January 15, 2008    

By: Delegate Lee Ware
Contact: David A. Bovenizer (804) 698-1065

Budget Concerns to Dominate 2008 Session

The 2008 Session of the General Assembly that convened Wednesday will of

necessity focus on crafting a budget for the biennium of 2008-2010 that

begins July 1.  This is the one budget that the Governor proposes in

full--in quest of a "legacy" for his Administration.  The Governor wants to

spend $78 Billion, an increase of $4 Billion over the 2006-2008

budget--despite the fact that state revenues for the current fiscal year

are expected to be $641 million below expectations.

The central components of the Governor's budget are $42 million for

improvements to the state's mental health system, $55 million for expanding

pre-kindergarten for "at-risk" four-year-old children, and $25 million for

health insurance coverage for low-income citizens.  To achieve these goals,

some $300 million would be cut from existing programs, $261 million would

be withdrawn from the state's "Rainy Day Fund," and $1.5 billion in bonds

would be issued for new buildings at our colleges and universities.

Overall, the Governor's budget calls for $3.2 billion in bonded

indebtedness.  The Governor wants also to postpone until mid-summer the pay

raises authorized for state employees and teachers, scheduled to be 3.0 and

3.5 percent, respectively.

Many elements of the budget proposal give me pause and even cause for

alarm.  First, Virginia's economy is slowing--and concerns about a

nationwide and even world-wide recession are page-one news all over the

world.  Second, to expand an experimental program such as pre-kindergarten

while delaying salary hikes for state employees and teachers is, to say the

least, robbing Peter to pay Paul.  We can't attract and retain stellar

state workers or public school teachers without rewarding them for their

labors--and at least keeping their incomes ahead of the rate of inflation.

Third, the Governor wants to divert $180 million from the Transportation

Trust Fund.

Fourth, the budget is based on an expected 6 percent rise in state revenues

during 2009-2010.  That figure is at least twice the more cautious

prediction of leading economists.

For these and other reasons, my Caucus leaders have pointedly suggested

that the Governor's budget "is built on the premise of begging and

borrowing to the point of being reckless."   Though the Governor proposes,

the legislature disposes, and only the House of Delegates can actually

appropriate hard-earned tax dollars for state government expenses.

Accordingly, I fully expect the House to cut the Governor's proposal,

significantly.  And, though the Senate, following Novembers's election, is

controlled by Democrats, while the House retains a Republican majority, I

expect the legislature to largely agree on a more prudent budget for the

next two years.

No doubt we also will revisit and to some extent reform the "abusive driver

fees" that are a component of the transportation funding bill we passed one

year ago.

Several organizations, including religious organizations, have combined

efforts to urge abolition of payday lending businesses in Virginia.  I

intend to submit a bill, as I did last year, to reform rather than abolish

payday lending businesses.  Over a half-million Virginians require small

loans that are not available from banks or credit card companies.  The

amounts are relatively small, so the comparative cost of loans can seem

exaggerated--until the actual costs of providing the loan are considered.

The new majority leader in the Senate, Senator Richard Saslaw, agreed with

me last year, so I expect the Assembly to approve a thoughtful reform bill.

For the 65th District I will be carrying several bills, including a bill to

which I attach supreme importance.  This will would establish a felony

charge for motorists whose elusive driving leads to accidental injury or,

worse, death, to law enforcement officers in pursuit, as was the case with

Powhatan Deputy Robbie Green.

I also hope to be able to expand tax-relief for the elderly and disabled,

and to secure funding for development of the state park proposed in

Powhatan.

Usually the 140 legislators submit roughly 4,000 bills, and early

indications are that we will have at least that number when the final count

is available early next week.

(Delegate Lee Ware represents House of Delegates district 65, consisting of

Powhatan County and western Chesterfield. During Session, his office

telephone is 698-1065. His email address is Dellware@house.state.va.us.)

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