Another Budget Warning, Louder This Time

The state of Virginia is heading for a shortfall of between $200 million and $300 million in budgeted revenues this fiscal year. With only a month and a half in the year left to go, the Kaine administration will have to move quickly to decide where to pare spending.

Del. Vincent F. Callahan Jr., R-Fairfax, suggested that the administration could cover the shortfall by postponing some $1 billion worth of capital projects in the budget, according to Michael Hardy with the Times-Dispatch.

With the prospect that this year’s shortfall could spill into next year, Del. S. Chris Jones, R-Suffolk, sounded an alarm about the Governor’s proposal to implement universal preschool, a program that could cost $300 million a year when fully implemented. Said Jones: “I hope [Kaine] will take the pre-kindergarten program off the table.”

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One response to “Another Budget Warning, Louder This Time”

  1. Ray Hyde Avatar
    Ray Hyde

    Nonsense, nonsense, nonsense.

    Even my Mexican friend knows better than this. Expaining the Mexican economy he sais “What good all this money, it no go round and round?”

    Assuming the capital expenditures are appropriately planned, they will create more “round and round”.

    There isn’t any less money today than there was six months ago. If the money isn’t going round and round, then it is because there is not enough incentive, or too much regulation.

    Let’s assume the budget warnings are right, and that they are wide spread. What will be the next move?

    It will be to spur housing and construction.

    We need adequate controls on the safety and other aspects of housing and construction. But they need to be transparent, predictable, and fair. EvenLarry Gross concedes this may not be the case.

    We need to be able to state the requirements. Provoded youcna meet the requirements, you can build.

    Otherwise, get used to the budget warnings, and the pendulum of needs vs wishes.

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