Category: Government Finance
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The Accelerating Scale of the Legislate-Regulate-Spend-and-Repeat Cycle Has Broken Government
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in Corruption and Scandals, Disasters and Disaster Preparedness, Education (K-12), Efficiency in Government, General Assembly, Governance, Government Finance, Health Care, Housing, Long Term Care and Nursing Homes, Mental illness and substance abuse, Money in politics, Politics, Public safety & health, Regulations, Gov’t Oversight, Social Services and Entitlementsby James C. Sherlock Virginians – the state and individual citizens – have received over $81 billion in COVID-related federal funding. That comes to $9,507 for every man, woman and child in the Commonwealth. Big money. That was Virginia’s share of $5.3 trillion in federal spending just on the pandemic (so far). A trillion dollars…
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Time for Amputation: NoVa Merging with “New D.C.”
D.C. Statehood. There has been a long running chorus of cries for D.C. residents to have full representation in Congress. From “Taxation Without Representation” slogans on D.C. license plates to the Biden Administration’s calls for DC to become the 51st state … this debate has gone on for a while. Most discussion devolves into pure…
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Vital COVID Issue: Paid Student Athletes?
by Steve Haner I warned everybody to watch for extraneous issues buried in the new budget bill pending at the special session which starts tomorrow. Who knew that regulating the potential income of student athletes was a vital COVID emergency issue that couldn’t wait for the regular General Assembly meetings in January? What follows should…
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What Fun! Spending $4.3 Billion in “Free” Money!
by James A. Bacon Before departing for the private sector, former Secretary of Finance Aubrey Layne outlined his thinking for the disposition of $4.3 billion in federal COVID-helicopter money: The funds are a one-time windfall. Spend them on one-time projects. Do not use the money to fund programmatic expansions that will make an ongoing claim…
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If No Better Ideas Emerge, Go With These
By Steve Haner First published Tuesday by the Thomas Jefferson Institute for Public Policy. In 1972, a Virginia taxpayer needed a taxable income of $12,000 before the state’s maximum income tax rate kicked in. Adjusted for inflation, that threshold should be $78,000 today. There has been one adjustment since, to $17,000 in income before the…
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What? No Amendments Permitted to a $4.3 Billion Budget Bill?
by James C. Sherlock Del. Luke Torian, D-Woodbridge, the Chair of the Appropriations Committee in the House of Delegates, has announced that there will be no member amendments allowed for the budget that the governor sends down during the upcoming special session. Three things about that: Torian is the king of budget amendments. Look at…
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Richmond Schools’ Flawed Data Threatens Federal Funds
by James C. Sherlock The massive flows of federal and state funding to local school districts are based largely on data reported by the schools to their districts, the districts to the Virginia Department of Education (VDOE), and VDOE to the U.S. Department of Education. In Fiscal Year 2018, the U.S. Department of Education sent…
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What to Do with Virginia’s Pile O’ Money
by James A. Bacon Virginia is expected to close out the year with a $2 billion budget surplus. An estimated $900 million is required under the state constitution to go into a rainy day reserve fund. That leaves roughly $1.1 billion for the next General Assembly and Governor of Virginia to play with. According to…
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State Revenue Up a Full Third in Northam Years
by Steve Haner With one month to go in its fiscal year, Virginia has almost met its General Fund revenue target in the first eleven months, as the revenue bonanza described here before continues. Partly it is due to the strong economic recovery post-COVID, but it is also due to numerous increased tax rates or…
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Virginia Local Ability-to-Pay Calculation and State Contributions to Public Schools — Some Surprises
by James C. Sherlock Some things are very important that the average citizen knows little to nothing about. For example, a complex state computation, the Composite Index of Local Ability to Pay, determines how much state money per student goes to your school district to maintain an overall state ratio of 55% state and 45%…
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The One-Sided Decision in the Reversion of Martinsville – the Start of a Trend?
by James C. Sherlock The Martinsville Bulletin, perhaps the best remaining newspaper in the state for local coverage, published a must-read article on the reversion of Martinsville from city to town and joining Henry County. Overview Martinsville’s current city logo, above, was perhaps prescient. Martinsville has been hemorrhaging population, losing more than 18% in the…
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Layne Going to the Dark Side
I do not know if this is good news or bad news for Jim Sherlock’s campaign, but Aubrey Layne, currently the Secretary of Finance, will be joining Sentara on July 1. (This is about the time during an administration that Cabinet members start jumping ship.)
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Protect Taxpaying Virginians From Coming Inflation
by Steve Haner First published this morning by the Thomas Jefferson Institute for Public Policy. One of big financial winners with the May 1 Virginia minimum wage increase is the state itself, because the entire raise is subject to a 5% state income tax. With its low standard deduction and personal exemption amounts, Virginia squeezes…
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State Tax Harvest Under Northam Expands Again
by Steve Haner With the release today of the April 2021 Virginia state revenue report, a correction in an earlier post becomes necessary. Overall general fund state tax collections are not up 26% so far compared to four years ago, they are up almost 30 percent. Corporate income tax collections are not up 68%, but…
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TCI Debate Rages in Comments on Proposed Rule
by Steve Haner The political wannabes in both parties and the state’s media are continuing to ignore it, but the argument over the proposed motor fuel carbon tax called the Transportation and Climate Initiative rages in comments on the proposal flowing into its advocates. The Thomas Jefferson Institute has also launched a short video (above),…