Trotting out the “$6 Billion Shortfall” Again

It was one day before the election, and I was still agonizing over who to vote for. Jerry Kilgore is, for all his failings, more likely to hold the lid on future tax increases. Tim Kaine, on the other hand, has the better grasp of transportation policy, the most important single issue in the year ahead. Who to vote for… who to vote for…

Then, a half hour ago, an e-mail from the Tim Kaine campaign arrived in my in-box. It pushed one of my biggest hot buttons… the wrong way. Boy, am I steamed. I know that campaign communications from both sides play fast and loose with the truth, but this one played fast and loose with the truth on an issue that I really care about. Here’s what the e-mail, putatively from Gov. Mark Warner, said:

When Tim and I were elected to lead Virginia in 2001, our predecessors’ fiscal irresponsibility had left the state with historic shortfalls – that grew to $6 billion. We made some tough choices and cut the budget. Tim even cut his own salary!

Let’s go through this step by step. “… left the state with historic shortfalls — that grew to $6 billion.” The situation was dire when Warner and Kaine entered office during a recession, and Warner had to scramble to close a looming deficit. But the deficit wasn’t anywhere close to $6 billion. The key is understanding what Warner means by a “shortfall.” It’s not the same as a budget deficit. The term represents a cumulative gap between anticipated spending and revenues over three years. That gap consisted of roughly one part revenue shortfall (i.e. revenues coming in less than anticipated) and one part spending increase. That $6 billion “shortfall,” to be precise, included $3.1 billion in “required new spending” on Medicaid, prisons, K-12 education and car-tax relief that the previous governor had never contemplated.

We made some tough choices and cut the budget.” Gov. Warner and the General Assembly — oh, and Tim Kaine, too — enacted approximately $3.3 billion in spending cuts over a three year- period. Factor in the spending increases noted above, and the net cuts amounted to $200 million. Over three years. Not quite $6 billion.

The parsing of words is technically correct, so Kaine/Warner cannot be accused of “lying.” But the words are carefully designed to mislead — and they have succeeded marvelously in doing so. I’ve seen commentators repeat over and over — never once corrected by the Warner administration, much less the lapdog press whose job it is to expose such claims — that Warner & Co. cut spending by $6 billion, or closed a $6 billion budget deficit. (For details, read my column “What’s a ‘Budget Shortfall’?” here.) The Governor deserves credit for a number of very real budgetary accomplishments. But he tarnishes his legacy — and Tim Kaine tarnishes his reputation for integrity — by shamelessly exaggerrating those accomplishments.