Kaine on budget problems

Via NBC12, you can watch the video of Governor Kaine’s press conference on the budget.

Releases from various sources on the budget can be found below the fold.

From Democratic gubernatorial candidate Creigh Deeds:

“Today’s cuts to services provide a painful reminder of the economic effects brought on by the worst economic downturn since the Great Depression.

“Like families and businesses around Virginia, state government must tighten its belt. That’s why I’ve proposed a government efficiency plan that will audit every state agency and save taxpayer money by further streamlining government functions. Under my zero-based budgeting plan, every agency’s budget will start at $0 per year, and they will have to justify every penny they spend.

“Today’s decisions were tough, and my thoughts go out to the many hard-working state employees who have received furloughs or were laid off. I applaud Governor Kaine for preserving funding for Virginia public schools. While Governor Kaine protected education today, my opponent has said he would take $5.4 billion from our schools to pay for roads. Unlike my opponent, I believe we must protect Virginia’s schools even in tough times.

“Virginia’s next Governor will have the responsibility of maintaining Virginia’s hard-earned reputation for effective management, fiscal discipline and bipartisan cooperation with the legislature to continue the progress we have made in providing opportunity for all Virginians. My opponent has promised a return to the disastrous fiscal policies of George W. Bush and Jim Gilmore. I will continue to lead under the same model of bipartisan leadership set forth by Mark Warner and Tim Kaine — a model that has made Virginia the best managed state, the best state for business and the best state for a child’s life success.”

From Democratic LG candidate Jody Wagner:

“Today’s announcements are another indication of how much the global economic downturn has affected Virginia, and how many difficult choices Governor Kaine has been forced to make in recent months. While this announcement serves as notice of the depth of our nation’s economic plight, it should also be a reminder of how fortunate Virginia remains compared to most other states, a result of our strong fiscal policies, positive business environment, and bipartisan leadership. As always when a state faces difficult choices, politics should be put aside for the good of the Commonwealth. Democrats and Republicans must work together in the coming weeks and months to ensure Virginia emerges from this downturn as strong as ever.”

From Speaker of the House Bill Howell:

“Today’s action by Governor Kaine to exercise his Constitutional authority to cut up to 15% of state government agency budgets is a first and essential step in addressing Virginia’s latest budget shortfall of $1.3 billion. The Governor’s announcement of immediate and proposed spending reductions is a sobering reminder of the difficulties families and businesses are facing while they cope with the worst economic crisis since the Great Depression. Just as small businesses and families are tightening their belts, trimming expenses and reprioritizing their budgets, so too must the Commonwealth take fiscally responsible actions to ensure a balanced state budget.

“As we have done during previous revenue forecasting reductions totaling $6.3 billion, I renew the pledge of House Republicans to work in a thoughtful, deliberate and bipartisan manner with Governor Kaine to adopt necessary budget strategies to align Virginia’s spending blueprint with the latest revisions in anticipated state revenues.

“For example, there is no question that now is an appropriate time to use the state’s Revenue Stabilization Fund, commonly referred to the Rainy Day Fund. Currently, its total is nearly $600 million, or roughly half of the $1.1 billion contained at its highest point in 2007. Using $283 million from this fund, as the Governor proposes, is a prudent move.

“In addition, I am encouraged that Governor Kaine today has rejected the misguided call of some to raise taxes. In the midst of this economic recession, increasing the financial burden already being borne by Virginia families and businesses through higher taxes would only serve to prolong an economic turnaround and weaken any recovery.

“Since I, like other legislators, was just informed today about the basic, ‘big-picture’ highlights of the Governor’s proposed cuts and reduction strategies, lawmakers now have a responsibility to thoroughly evaluate all of the specifics. This process will begin in earnest on September 21 when the Governor’s Secretary of Finance testifies before the full House Appropriations Committee to present the Governor’s proposals in full detail. Over the next several months, the House will work cooperatively with the Governor to set spending priorities that achieves long-term structural balancing of state finances.

“For our part, the House of Delegates already has committed to returning $1.1 million to the general fund in this current fiscal year by reducing discretionary spending and returning unused balances. That figure is in addition to the $2.0 million that the House has returned since the beginning of the recession in fiscal year 2007. Moreover, a salary cut for delegates instituted in 1991 has resulted in a savings to taxpayers of more than $626,000 over the last 18 years. As we have in the past, the House will continue to do its part to help keep state finances on solid financial ground.

“While these are challenging times for all Virginians and their government, members of the House of Delegates and its Republican-led majority are prepared to do the right thing and act in a fiscally responsible manner.”

From Republican gubernatorial candidate Bob McDonnell:

“Once again, in continued response to falling revenues and overly optimistic Kaine Administration budget projections, the governor has been forced to make deep and difficult cuts in Virginia’s state government. I know that cuts of this nature are not easy to make. I applaud the governor for not proposing tax increases as part of his recommendations today. The worst thing Richmond could do would be to impose higher taxes on hard working Virginians struggling with the toughest economy in generations. While I know the governor’s job has not been easy, I do have great concerns with the specific cuts he has proposed for higher education and public safety. Over the last decade per-pupil state funding for higher education has decreased by roughly 40%. At the same time, tuition and fees have doubled. Virginia’s parents and students are paying more while the Commonwealth contributes less. Students leave school with more debt to pay back. The Commonwealth invests less and less in an area of state government that is essential to future job creation and economic development. That is a trend that must be reversed. In tough economic times when there is a potential for an increase in crime, we should not enact any cuts to law enforcement. These are serious times in Virginia, and America. From the kitchen table to the Capitol tough choices are being made. As governor I will be committed to making those tough choices in our government, just as I did as Attorney General when I cut my budget, returned my state car and took a pay cut, as well as making other adjustments without significantly impacting the services provided by our office. I will set priorities within our state budget and make smart investments that will help grow Virginia’s economy in the years ahead.”