Va. House, Senate Pass Divergent Budgets

Against the advice of Republicans, Senate Democrats crafted their budget in a way that preserves some funding for many of Kaine's priorities, even though they were forced to make cuts to other programs.

To close a shortfall in the current year's budget, the Senate wants to transfer $423 million from the reserve fund, almost twice as much as House Republicans proposed.

The two parties also disagree on whether more money is needed for transportation projects. The Senate budget includes a nickel increase in the gas tax over the next five years.

Both budgets contain a series of accounting maneuvers designed to save money. The Senate budget seeks to redirect about $30 million in lottery proceeds from school construction to direct aid for schools. Senate Republicans opposed the transfer, setting up a clash that sent the chamber into chaos Thursday.

When Republicans tried to strip the provision from the budget, the 21 Democrats voted against the move. But Lt. Gov. Bill Bolling (R), who presides over the Senate even though Democrats have the majority, ruled that the state constitution requires a four-fifths vote to change how lottery proceeds are allocated, meaning the Democrats did not have the votes to pass the budget.

The Democratic majority then voted to override the surprise parliamentary move. The division could leave the door open to a lawsuit over the legitimacy of the state budget, GOP lawmakers said.

In the House, Democrats spent much of Thursday unsuccessfully trying to defeat about 40 amendments.

"As a minority party, it is our obligation to stand up for those things we believe are important," House Minority Leader Ward L. Armstrong (D-Henry) said. "This budget is not reflective of how I would have written it if I'd had the chance to write it."

The proposal that drew the most controversy would change the way public schools are funded with regard to teacher salaries. Democrats said local governments will have to raise property taxes or cut teacher salaries to compensate for less state money.

"We're about to make a big mistake," Del. Kenneth R. Plum (D-Fairfax) said. "This sets up a methodology where you'll see hundreds of millions less spending on education."

The amendment passed 54 to 44, with Del. Thomas Davis Rust (Fairfax) the only Republican to vote against it.

"We may well have voted for the largest tax increase in Virginia history,'' Armstrong said.

Transportation officials say the shortfall in the road construction budget stems from the expected repeal of the controversial abusive-driving fees and a sharp drop in tax revenues.

Unless new sources of revenue are found or the economy improves, transportation officials say, they won't be able to start construction on dozens of projects, despite last year's transportation deal. The deal included new regional taxing authorities in Hampton Roads and Northern Virginia.

House Speaker William J. Howell (R-Stafford), who helped craft the deal, said he expects that the economy will rebound fast enough to prevent major cuts to highway construction.

"The economy is down, but the economy is not going to be down for six years," Howell said. "It will come back. . . . I don't think it is as earth-shattering as it seems."

But Transportation Secretary Pierce R. Homer said the figures in the report are "straightforward."