Category: Government Finance
-
The Fiscal Flywheel Effect
In my Feb. 13 podcast, former Finance Secretary Steve Cummings explained the positive feedback loop between strong state finances and economic development. His observations about the fiscal flywheel effect are worth highlighting here. –JAB Cummings: “The underlying premise here is growth. When you have a declining revenue stream, when you have declining population, you’re gonna…
-
Neither House nor Senate Budget Raises General Taxes
But the Senate Strips the Data Center Tax Break Next Year by Steve Haner The Senate and House of Delegates financial committees met on Sunday to approve competing sets of amendments to the next Virginia budget, neither proposing any general tax increases. The Senate version included modest tax reform: a small taxpayer rebate for this…
-
Buttressing Virginia’s AAA Finances
Running budget surpluses, cutting taxes, and maxing out the rainy day fund Excerpt from the Feb. 13 Oinkonomics podcast interview of former Secretary of Finance Steve Cummings about Governor Glenn Youngkin’s fiscal legacy: “We were able to generate $10 billion in cumulative surpluses. Some of that was last year, where a conservative position was taken…
-
Governor Youngkin’s Fiscal Legacy
Jim Bacon chats with former Finance Secretary Cummings about former Governor Glenn Youngkin’s budgetary achievements, Virginia’s economic development track record, and how well positioned the commonwealth is to survive a federal financial meltdown. Lightly edited transcript Jim Bacon: Hello, everyone. I’m Jim Bacon, and this is the Oinkonomics podcast. Whatever your feelings about Glenn…
-
A 10% Tax on Your Fantasy Football, Baseball?
by Steve Haner, Forget raising the income or sales tax, it appears the 2026 Virginia General Assembly may try to balance the state budget by imposing a new 10% tax on all the sports fantasy game players in the Commonwealth. Just when you think you know all the nooks and crannies of state government, another…
-
VRS Slowly Closing the Funding Gap
But liabilities still exceed assets by 17 percent. Earlier this week, we discussed how deferred maintenance represents a form of hidden deficit spending. Underfunding pension contributions is another classic gambit of state government. Since bottoming out in the mid-2010s, the Virginia Retirement System has been inching closer each year toward full funding for teachers and…
-
Youngkin Budget Proposes Partial State Deduction for Tips, OT
by Steve Haner Governor Glenn Youngkin has proposed that Virginia conform its tax rules to most of the changes in federal taxes adopted by Congress last summer, including recognizing a state tax deduction for tip income, overtime pay and interest payments on car loans. Those tax policy recommendations are part of the Republican’s final…
-
Now the Hard Part Begins
by Dick Hall-Sizemore Overlooked in all the news around the election was some sobering budget news for the next governor. As reported by the Richmond Times-Dispatch, the Virginia Dept. of Medical Assistance Services (DMAS) has forecast that Virginia’s Medicaid costs will increase by $3.2 billion over the next three years. That increase consists of an additional…
-
State Spending Grows Faster Than Income. Something Has to Give.
By Steve Haner, There was an important story in the preliminary end-of-year financial report that the Richmond Times-Dispatch misinterpreted as the state “running in the red.” State spending has been on a major growth spurt under Republican Governor Glenn Youngkin, although the Democrats with the majority in the General Assembly have just as much to…
-
No, Times-Dispatch, Virginia’s Budget Did Not “Run in the Red”
By Steve Haner, It is not clear who should be more ashamed of themselves, the Richmond Times-Dispatch or Senate Majority Leader Scott Surovell (D-Fairfax). Both didn’t just mislead Virginians, but defamed Republican Governor Glenn Youngkin and the entire state finance staff. Even the silly season has limits. Virginia’s state government finances did not “run in…
-
Another Power Struggle Between Youngkin and General Assembly
by Dick Hall-Sizemore Another dispute between Gov. Glenn Youngkin and the General Assembly, one that has faint echoes of one occurring north of the Potomac, has taken on a larger life with parties turning to the Virginia Supreme Court. Before going into the details, some background would be helpful. The Virginia Constitution provides, “The Governor shall…
-
Virginia Republicans in Congress Caved In
by Dick Hall-Sizemore The national debt is $36.2 trillion. Morgan Griffith (Ninth District), Ben Cline (Sixth District), and John McGuire (Fifth District), Republican members of Congress from Virginia have expressed great concern about the national debt. McGuire has called it “the biggest threat to the U.S.” Several years ago, Griffith lamented the “skyrocketing national debt.” Two…
-
Storm’s Coming. Where’s FEMA?
by Dick Hall-Sizemore At his press conference in the Virginia Emergency Operation Center last fall in the aftermath of Hurricane Helen, Gov. Glenn Youngkin introduced “my newest best friend”—the representative from the Federal Emergency Management Agency (FEMA). (The “best friend” comment can be found at the 13:15 mark in the video.) When a major disaster…
-
Talking Out of Both Sides of Their Mouths
by Dick Hall-Sizemore Two members of Virginia’s Congressional delegation, Rep. Jen Kiggans (R-2nd District) and Rep. Rob Wittman (R-1st District) seem to be in a bind over how to handle budget decisions coming up later this year in Congress. As reported by the Richmond Times-Dispatch, they joined ten other Republican members of the House of…