by Dick Hall-Sizemore
The most surprising item in Governor Northam’s proposed budget is the $200 million Christmas present to the General Assembly.
It comes in the form of an annual $100 million appropriation in the Central Accounts section of the budget bill for “uncommitted contingencies.” It is not unusual for that budget Item to contain appropriations for contingencies, such as industrial development actions, or for some special state agency programs. However, there is always some accompanying language setting out the limitations or conditions under which it can be spent. For this $200 million, there is no guiding or controlling budget language.
The budget presentation of the director of the Department of Planning and Budget had a bland redundant explanation for the appropriation: It was for “uncommitted contingencies that may arise over the biennium.” The Governor, however, had a more revealing explanation. In the preface to his explanation, he pointed out that “this is a time of change in the General Assembly. We will see new leadership with new priorities.” He went on to say:
Many of our shared priorities are reflected here in this budget. But I also know that this new General Assembly will have its own vision.
“In the spirit of cooperation and good faith, we have set aside $200 million, to provide the new General Assembly with the flexibility to prioritize funding needs that they identify as important.
Northam seems to be trying to avoid having the General Assembly scrutinize his budget by saying, in effect, “Here is $200 million in Monopoly money for you to play with. Now leave my proposals alone.” As a consequence of this action, there is likely to be less pressure on money committee staff to look for weaknesses and waste in the Governor’s budget in order to “find” money for their members’ priorities.
The Governor made it clear in his remarks that this “spirit of cooperation and good faith” would not have been extended if there had not been a “change in the General Assembly.”
Not that they will not make use of this gift, but the General Assembly will have to do something with it. If legislators leave the budget proposal provisions untouched, the Governor will have an additional $100 million annually to spend in any way he pleases, with no conditions attached.
My soapbox: Although the Governor apparently could not determine a responsible way of spending some or all of that $200 million, such as for state employee salary increases, he should not have just handed it over to the legislature for its “priorities.” Rather, he should have proposed putting it into the cash reserve fund or allocating it to the Virginia Retirement System to help decrease its unfunded liability.
