The Club for Growth

Phillip Rodokanakis


 

 

Warner 2, Ostriches 0

House Republicans could have stopped Mark Warner’s tax hike in 2004. By looking the other way, they have encouraged him to replay the same old trick. 


 

"Fool me once, shame on you; fool me twice, shame on me." – anonymous

Gov. Mark “tax-hike” Warner (D) has decided to end his administration with a bang. One of his last acts in office was to submit the 2007-2008 biennium budget.

And what a budget it is! It calls for $72 billion in spending over the next two years—the largest budget in a series of escalating budgets. That’s more than an 18 percent increase from the last biennium—don’t you wish working family budgets grew by 9 percent or more each year?

Even with the $2 billion surplus, that still leaves a considerable deficit to cover the proposed new spending. The numbers are hard to follow, since there is no clear demarcation between the state budget vs. current spending or the budget surplus and its effect on future spending.

The 2004-2006 budget was pegged at $60.8 billion. That means that Warner is proposing $12 billion in increased spending. Parenthetically, it was only 10 years ago (1996), when $12 billion covered the state’s entire General Fund expenditures for just one year.

Warner has not proposed any tax increases, so the manner in which the budget deficit will be covered remains a mystery. But one thing is clear, there won’t be enough money to cover Warner’s proposed new expenditures.

In the 2004 session of the General Assembly, the House Rules Committee passed a resolution asking Gov. Warner to resubmit his budget. The resolution was based on what its sponsor, Del. Bob Marshall, R-Manassas, called an unconstitutional submission of the budget.

Warner’s budget violated the one-object rule that requires legislation to have only one purpose. By mixing spending with revenues (e.g., Warner’s budget called for a tax increase that had not yet been approved by the General Assembly), Warner was in violation of state law.

At the same time, Warner violated another statute he had signed into law a mere year earlier, the Taxpayer’s Budget Bill of Rights. This act sought to make the budget transparent and accountable, so that ordinary citizens could follow the budgeting process.

In 2004, however, Warner decided that it was more convenient to simply disregard the bill he had signed into law, then to comply with it. Apparently, Warner’s administration discovered that Byzantine budgets had a purpose—if knowledge is power, the powerful surely do not want to share that knowledge.

So much for Warner being a reform-minded governor, one who was elected on the promise to run the state like a business. But then again, this was the same Mark Warner who promised not to raise our taxes.

A German politician once said: “Great liars are also great magicians.” Gov. Warner surely fits this description as he continues to enjoy a high approval rating, even though he has repeatedly deceived the voters.

But Warner does not operate in a vacuum. It takes a lot of willing accomplices for a governor to get away with such deceptions and illegalities—how else can one describe Warner’s broken promises or repeated violations of state statutes?

The fault of course rests with the leaderless Republican majority in the General Assembly. The full House failed to take action on the House Rule Committee’s 2004 resolution asking the Governor to resubmit his budget. Nor did House leaders say anything about Warner’s budget failing to meet the requirements outlined in the Taxpayer’s Budget Bill of Rights act.

Is it any wonder then that Warner has chosen to pull the same trick again? Since he was not challenged two years ago, he submitted another budget which projects spending that greatly exceeds current revenues.

And although Warner has not submitted a tax increase proposal, one does not need a crystal ball to see that one is inevitable if the General Assembly approves the proposed spending levels. As a matter of fact, a number of tax-and-spend voices in the General Assembly have been echoing the need for raising taxes.

With Gov.-elect Tim Kaine (D) just about ready to take control of the state, Warner and Kaine have probably figured that it would be better if Kaine submits the inevitable tax increase proposals. This way, Kaine would have some leeway, and if he proposes a tax increase that would only cover a smaller budget—he would appear as more reasonable, willing to gain bipartisan support.

In other words, we are in for a replay of the 2004 triangulation strategy. That time, it was Sen. John “tax-them-until-they’re dead and then hit them with the death tax” Chichester, R-Fredericksburg, who proposed a $4 billion tax hike; this made Warner’s $1.5 hike seem more palatable.

Republican leaders in the House of Delegates had the opportunity in 2004 to stop Warner’s budget dead in its tracks. Instead they chose to bury their head in the sand and look the other way. Don't be surprised if we see a replay in 2006.

-- January 3, 2006

 

 

 

 

 

 

 

Phillip Rodokanakis, a Certified Fraud Examiner, lives in Oak Hill. He is the managing partner of U.S. Data Forensics, LLC, a company specializing in Computer Forensics, Fraud Investigations, and Litigation Support. He is also the President of the Virginia Club for Growth.

 

He can be reached by e-mail at phil_r@cox.net.

 

Read his profile here.

 


 

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