Bacon's Rebellion

Sen. Chichester on Virginia’s Finances

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by

James A. Bacon
in

Powerful Senate Finance Committee Chairman John Chichester (R-Northumberland) discussed Virginia’s surplus and future fiscal direction in this Free Lance Star column.

Caution and prudence seem to be his guiding principles; there shouldn’t be any “automatic” triggers for tax relief or tax increases. This passage is a good summary of his position:

Our actions in 2004 made the tax code fairer and provided ongoing stability to our general fund budget. That means we can avoid weaving unsustainable funds into our operating budget–a risky measure at best.

Rather, when there is an unexpected surplus, we can exercise our fiduciary duty to weigh competing priorities and make the best choices. Clearly, if the revenue is ongoing, we can choose to grant additional tax relief. We all have ideas about the next step to take in that regard.

But there are other choices, as well, because Virginia has not faced all of its challenges. Undeniably, our transportation system is broken. While a general fund infusion will not cure ongoing road maintenance, it may provide one ingredient of a broader recipe.

We’ll be watching to see the choices that Sen. Chichester recommends.

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Comments

  1. Paul Avatar
    Paul

    I recommend a tax refund for a portion of the surplus. At least next fiscal year. Until we know this is a permanent surplus, enacting a Gilmore-style budget busting tax cut worries me.

    The housing bubble worries me too…what will a bursting housing bubble do to consumer spending?

  2. Anonymous Avatar
    Anonymous

    For those of you unfamiliar with Chichester-speak, let me translate:

    “We now have the maximum allowable balance in the Rainy Day Fund which will allow those of us in the Senate who love to spend money to focus on some more pork-barrell spending and continue the current trend spending increases at the state level that far outpace individual income increases. Once we’ve spent the surplus money we will then go back to the public hat-in-hand complaining that the “anti-taxers” have again put us on the precipice to armageddon and we need more tax money to fund the basic necessities we decided not to spend our earlier surplus on.”

    In other words, send EVEN MORE money so we can waste it again!

  3. Paul Avatar
    Paul

    Individual income is the dumbest measurement for state spending that I’ve ever heard.

    We’ve got a huge transportation crisis/higher education crisis/healthcare worker crisis looming.

    Oh, but let’s stick with individual income!

    Get lost, Grover.

    If our state’s needs merit it, we’ll cut spending. If they don’t, we shouldn’t. But tying our hands is irresponsible.

  4. Anonymous Avatar
    Anonymous

    I have never EVER seen politicians willing to admit in a majority that our state does not merit additional spending. They will always find an excuse for more.

    Individual income is a good measure to use BTW. If the average person is gaining only 3% increase in earnings each year, how can the state possibly defend multiple years of increases at double that rate (these are not real figures, but it is certainly close to reality).

  5. Paul Avatar
    Paul

    Hmmm. Maybe because the state’s revenue is based on a variety of things and individual income is only one portion of the budget!!!

    Just because spending is outpacing individual income doesn’t mean income TAXATION is outpacing individual income. Maybe corporate income is growing at 10%. Maybe 15%! Perhaps we should use that measure.

    Or retail sales. Or job creation. Or anything.

    BTW.

  6. MR JMS Avatar
    MR JMS

    What we need is to somehow put measures in to control Chichester and friends from spending our surplus. If money is left over when you are done boys than put it in the mail and give it back. IT is my money, NOT YOURS!

  7. Anonymous Avatar
    Anonymous

    The measure is called voting. Chichester beat back his opponent by showing us the traffic on 95 and the rising cost of state college all stem from a lack of the state stepping up and paying for its core services.

    Next time vote him out. It didn’t work this time.

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