RICHMOND — Virginia Gov. Bob McDonnell unleashed his two-year budget Monday, a self-described series of “tough decisions” that increases funding for higher education and transportation while cutting nearly $900 million in aid and services.
The blueprint was immediately rejected by Democratic lawmakers looking to stake a claim in the budget process before the new legislature convenes in January.
In an hour-long address to the General Assembly’s budget committees, McDonnell laid out an $85 billion spending plan through June 30, 2014, up from $79 billion in 2010-2012. While the balanced proposal is achieved without tax increases, it does include some higher fees, including $10 million more in license, title and registration fees at the Department of Motor Vehicles.
| Gov. Bob McDonnell’s budget: |
| Spending |
| – Total: $85 billion over two years, up nearly $6 billion. |
| – K-12 education: $438 million more |
| – Colleges/Universities: $100 million more |
| – Roads: $110 million more |
| – State pension fund: $2.2 billion more |
| Cuts |
| – Northern Virginia schools: $65 million |
| – Public broadcasting: $7.2 million |
| – No inflation adjustments for Medicare providers, school services: $430 million |
| – Social services: $37 million |
“Some advocates of higher taxes believe it is the only way to get new revenue into a state budget. They are wrong,” McDonnell said. “There is significant new revenue in this budget, and it comes from more Virginians working, and purchasing and innovating, and from our economy growing.”
McDonnell proposes $438 million in new funding for K-12 education, an extra $100 million for higher education, and $2.2 billion for the state’s public employee retirement system.
The governor would also provide $110 million more for transportation, funds McDonnell would raise by shifting an additional 0.25 percent of sales tax revenue to roads over the next eight years. That measure drew the strongest rebuke from Democrats, who insist it’s dead on arrival in the Senate, which is evenly divided between Republicans and Democrats.
“The Senate Democrats have been clear for years that we do not and will not support transferring general fund money to transportation,” said Sen. Janet Howell, D-Reston.
Democrats also pounced on a proposed $81 million reduction in pre-K education, but McDonnell said the reduction was due to a more accurate count of students not a budget cut.
McDonnell also wants to set aside $380 million to offset a prolonged recession and safeguard against further federal budget cuts that could affect the state’s defense-reliant economy.
The additional spending comes at a cost. Northern Virginia schools will lose $65 million used to retain non-instructional staff. Also, reimbursement payments to Medicare providers and for school support services, like utilities, won’t be adjusted for inflation, raising another $430 million.
“That is a problem,” said Rob Jones, director of government relations for the Virginia Education Association. “There obviously is inflation and to say that there isn’t reduces funding.”
McDonnell proposes cutting public broadcasting by $7.2 million. Three departments that largely assist low-income residents, would lose $37 million, including money for teen pregnancy prevention programs and 11 local senior centers around the state.
“It’s invariable when you have a governor that does not believe in raising revenue that you’re going to have cuts to those types of programs,” said Sen. Don McEachin, D-Henrico. “I believe that’s wrong.”
