Virginia restored millions of dollars for health care, education and other services this year after lopping billions during leaner times. But a new study says that the state is still $8 billion below its pre-recession funding levels. The General Assembly earlier this year provided about $75 million more for public schools than Gov. Bob McDonnell had requested in the current two-year, $80 billion budget. It allocated an additional $30 million for mental health services in response to a damning report from the U.S. Department of Justice.
“Unfortunately, Virginia still has far to go in terms of bringing public investment levels back in the range of pre-recession levels,” according to the report by the left-leaning Commonwealth Institute for Fiscal Analysis, which analyzes economic issues with a particular focus on low- and middle-income people.
A major factor for the lag in funding, the report shows, is the loss of about $3 billion in federal stimulus dollars that Virginia used to weather the downturn. Adjusting for inflation and population changes, Virginia’s general fund is $8 billion below pre-recession levels across the current two-year budget, according to the report.
“The continued revenue hole in the state budget means costs are being passed down to Virginia’s families, localities and businesses,” said Commonwealth Institute President and CEO Michael Cassidy.
But Tucker Martin, a spokesman for McDonnell, said the state is sufficiently funding education, transportation, public safety and other core functions, and that the governor has rejected tax increases, worked to streamline government and reduced state spending to 2006 levels since taking office.
“The Commonwealth Institute believes the answer to every issue is bigger government and greater spending,” he said. “The governor disagrees.”
“Just this session, we put the most new money into transportation in a generation,” he continued. “While they have every right to make it, we simply do not agree with the Commonwealth Institute’s tired argument that only when we spend more taxpayer dollars do we make government work better.”
