$82 Billion State Budget Passes
March 18, 2010
After much deliberation, the General Assembly has passed a two-year $82 billion budget that cuts spending on education, health care and public safety to bridge a $4 billion shortfall.
“It is horrible,” said 15th District Senator Frank Ruff. “But we knew going into it that it was going to be horrible.”
“Considering this is the worst economic situation we have had to deal with in a generation and perhaps the worst since the Great Depression,” added 61st District Delegate Tommy Wright, “facing the $4 billion hole we were facing when we came into session we did pretty good. I am not pleased with everything in there but am happy about the fact that we all came together and produced a budget in a timely manner that did not raise taxes.”
The Senate passed the budget 34-6, while the House passed it 73-23. Mediators worked through Saturday night to reach compromises for Sunday’s votes. The assembly extended its session by one day to wrap up the 2010-2012 budget.
The final budget makes a $253 million cut in K-12 education over the next two years – but it rejects $400 million in additional cuts originally desired by the House of Delegates. Advocates for teachers and other school staff say the cuts will result in the loss of thousands of jobs.
Mecklenburg County School Board consultant Dr. Jim Blevins noted Monday that the state budget maintains the current funding for the middle and high school planning period and provides a full “hold-harmless on the Composite Index in the first year and a 50 percent hold-harmless in the second year.”
The approved budg et did not block grant Lottery-funded programs for at-risk students, such as the Virginia Preschool Initiative and increases the reimbursement on school breakfasts by 10 percent, from 20 cents to 22 cents.
The budget temporarily allows the maximum class size to increase by one and waives staffing requirements for English as a second language, elementary resource teachers, gifted, career and technical, instructional and support technology, librarians and guidance counselors.
The budget saves $38.6 million over the biennium by modifying the federal revenue deduct to more accurately reflect the percent funded support costs; $34.1 million over the biennium by reducing textbook funding by approximately one-third each year, and $19.5 million over the biennium by extending the formula for school bus replacements from 12 to 15 years.
The budget restored the VPSA (Virginia Public School Authority) technology grants of over $57 million in each year.
Project Discovery, a dropout prevention program, public broadcasting grants and Project Graduation from Central to Direct Aid all will receive less money, collectively saving the commonwealth about $1 million.
The budget also made reductions to health and human resources by $360 million, but legislators hope federal stimulus money will offset those cuts.
In the same way, the budget cuts funding for free clinics and community health centers and reduces Medicaid reimbursement to hospitals, nursing homes and health care professionals by seven percent – unless federal monies are available. State officials also are banking on federal funds to provide Medicaid waivers for 250 more intellectually disabled children so they can receive services at home.
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Community Memorial Healthcenter President and CEO Scott Burnette said Monday that it was too early to tell what the passed budget would mean for the local hospital. He said he was expecting a hospital by hospital breakdown by Wednesday.
“It is not as bad as it could have been,” said Ruff. “With the hospitals it was incredibly important to keep Medicaid funding in.”
The spending plan approved by legislators restores $13.7 million in operating funds for the Commonwealth Center for Children and Adolescents and the Virginia Health Care Foundation. The budget also incorporates the Senate’s plan to provide $130 million for the program called Family Access to Medical Insurance Security, or FAMIS, which serves low-income children and pregnant women.
Besides health and education, government workers will feel the effects of the budget. The budget provides no pay raises for state workers, who have not seen raises in four years. However, if state revenues are adequate, the budget will provide a three percent bonus to certain employees in 2011.
However, legislators softened the blow to public safety. Despite some cutbacks, police departments will receive $10.3 million in additional funding during the 2011-2012 fiscal year. The budget would restore funding for career development programs for sheriffs and regional jails.
Mecklenburg County Sheriff Danny fox said it would be at least a week before he was sure how the state budget would affect his office.
Lawmakers approved $3.6 million to protect children from online predators. Sen. Creigh Deeds, D-Charlottesville, created the Internet Crimes Against Children Fund, which will support law enforcement task forces through a $10 fee on all misdemea nor and felony convictions.
“The Kaine proposal on constitutional officers was drastic and that was improved a fair amount,” said Ruff. “In law enforcement all over the Kaine budget was pretty horrible and we did the best we could to bring that back.”
“We restored a lot of money to education and public safety,” said Wright. “The sheriff’s offices were restored to a one to 1,500 ratio and the 599 funds were restored for the towns which is very important.”
In crafting the budget, legislators faced one of the toughest economic slumps the commonwealth has ever seen. Because of the recession, tax revenues have been far below projections.
The final budget included fewer fee increases than the Senate proposed but fewer spending cuts than the House wanted.
“Everybody takes a cut,” said Ruff. “The reality is it is a lot better than it could have been.”
Ruff said the majority of these fee increases would be related to court services, with increases in the fee for civil suit cases, fees related to DUIs and fees on permitting for new landfills.
“Most of the fees will not affect the general law abiding public,” he said. “They will affect people who have gotten in trouble one way or another.”