Delivering his mid-year report on the Commonwealth’s economic and financial performance, Gov. Mark R. Warner declared that Virginia “is truly on the right track.” Virginia may have run up a massive General Fund surplus (see Steve Haner’s post for details on the exact amount) in fiscal 2005, but it faces $2.8 billion in added needs in the next biennium — and that doesn’t even include perceived needs for transportation funding.
Here’s a list of “known budget requirements” taken from the governor’s speech:
- Re-benchmarking of the State Standards of Quality for public schools โ even without funding the new standards adopted by the Board of Education โ will require about $1.2 billion;
- Meeting the continuing cost of Medicaid โ without assuming any federal cuts or policy changes โ will exceed $500 million;
- Providing $950 million a year in car tax payments will require an additional $415 million;
- The cost of paying for higher prices on concrete and steel for capital projects already authorized, and providing equipment for buildings coming on line will exceed $250 million.
- Health insurance, higher VRS contribution rates, and group life insurance costs will together require about $200 million;
- Additional debt service costs for bonds already authorized but not yet issued will exceed $125 million;
- Two new prisons and two expanded prisons coming on line will require about $90 million.
And that doesn’t include meeting Virginia’s commitment to higher education, funding the clean-up of the Chesapeake Bay… yadda, yadda, yadda.
Pardon me, but what the h-e-double hockey sticks is going on?
What is this “re-benchmarking of the Standards of Quality?” The last re-benchmarking cost us $700 million a year. Now another re-benchmarking will cost us a like amount? Educational spending in Virginia is on auto-pilot, with massive funding increases baked into the system. Doesn’t anyone see anything wrong with that?
Runaway education spending is just the first place to start asking questions. Medicaid is the next. We citizens need to start digging into every one of these items. How much is this spending legitimate, how much of it is puff, and how much spending could be cut elsewhere that the governor isn’t talking about? Maybe the Americans for Prosperity (See Will Vehr’s post below) can help provide some answers.


