New governor to face at least $1bil shortfall

2009 Gubernatorial Race, Local, Politics, Virginia 1 Minute

While the conversation in this gubernatorial election has been focused on transportation and social issues, little attention has been paid to the looming budget deficit that the new governor is likely to face. According to a Virginian-Pilot article today, the budget deficit is expected to be $1 billion – and could be as high as $3 billion.

In interviews, both appeared taken aback at the thought of a billion-plus hole in the budget. Yet each stuck to the fiscal plan he’s touted during the campaign.

[…]

Both candidates’ plans rest on a more optimistic view of the state’s finances than is held by many budget analysts.

That none of the discussion has focused on how to deal with the lingering effects of the economic problems our country has faced is truly sad. But then why should it? After all, it’s not like Virginians get the opportunity to hold a governor to the promises he made on the campaign trail.

EDIT: I left out a pretty important quote from the story:

John Taylor, president of Tertium Quids, a free-market advocacy group, said given the depth of the budget problems, some sort of tax increase may be coming no matter who wins on Tuesday.

“I would be surprised to see any governor in Virginia over the next four years not support a spending increase,” he said.

Yes, Virginia. Tax increases are in our future. Get used to the idea.

Published

13 thoughts on “New governor to face at least $1bil shortfall”

  1. vivian,
    Spot on. Nobody has been talking about this. When I tried to get specifics from the campaigns on how they might deal with what’s likely to be closer to a $2 billion hole in the budget, what I got from both sides was platitudes and pandering. Both campaigns insisted on talking about the ridiculous promises they’ve made, all of which will COST money.

  2. Here’s an idea for saving money while improving education: Vouchers.

    Virginia spends over $11,000 per pupil annually. Offer $6000 vouchers, and we save $5000 for every student that takes one.

    1. Mouse,
      I agree 100% that $11,000 ($5,800 state funds) per student is outrageous. I educate my children at home for $700 per year per student. I’m not a lawyer but I’ve heard that vouchers would be ruled in violation of Virginia’s constitution while tax credits would pass constitutional review. So, I urge tax credits vice vouchers. Also, $6000 seems too high because it would cause mass exodus from public schools in the first year alone. I urge starting the tax credit at $1000 and allowing the state and local governments to rebate a portion of the savings to the taxpayers and use a portion of the savings to increase the spending on the disadvantaged children. Win-Win for everyone except the teacher’s union.

  3. “I would be surprised to see any governor in Virginia over the next four years not support a spending increase,” he said.

    Is that quote right? Raising taxes and increasing spending doesn’t help anything. I’d like to see lower taxes and less spending, but if we gotta raise taxes I definitely don’t want to see any rise in spending unless its on roads. Cut a bunch of the BS and move it to transportation along with new revenues. No need to increase spending for other things.

  4. I do wonder how much damage will be done before Richmond finally wakes up and decides to take governing seriously. I fear there may be at least one more term’s worth of willingness.

    2. MB, there is a long way to fall. I mean Texas has a functioning economy despite their government in Austin. Besides any problems we create by messing up the education system won’t manifest themselves for many years. Heck, that is most things that require investment (like infrastructure). And, of course, blowing our money on conspicuous consumption is the best investment we can make.

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