Legislature Is Facing Tough Reconciliation
By Tim Craig and Anita Kumar
Washington Post Staff Writers
Friday, February 22, 2008
RICHMOND, Feb. 21 -- The Virginia Senate and House approved separate versions of the state budget Thursday amid unusual partisanship that has hardened the ideological split between Republicans and Democrats in the General Assembly.
The GOP-controlled House and Democratic-controlled Senate will spend the next two weeks trying to resolve their differences, a task complicated by a budget shortfall.
Both spending plans include more money for mental health, public education and foster care, but the two chambers differ over whether to fund some of the priorities of Gov. Timothy M. Kaine (D). Republicans and Democrats also disagree on how much money should be transferred from the state's reserve fund to help close a $640 million shortfall in the current year's budget.
The extent of the state's monetary woes is highlighted in a new report from state transportation officials, who might have to slow the pace of road construction because of a $1.1 billion shortfall in the six-year transportation plan.
The gap means there could be a 40 to 50 percent reduction in state funding of urban and primary and secondary roads unless revenues increase by fiscal 2014, according to the Virginia Department of Transportation.
GOP lawmakers, who ironed out a deal last year to provide more than $1 billion in new money annually for transportation, said the report was an exaggeration.
The House passed its budget by a vote of 93 to 5 but only after the GOP majority stymied Democrats' attempts over several hours to include more money for education and social services.
In the Senate, for the first time in recent history, all 19 Republicans voted against the budget after a fierce debate that left bitter feelings on both sides.
"I almost feel like I have been sucker-punched," Sen. R. Edward Houck (D-Spotsylvania) said. "The lines have been drawn in the sand."
Senate Minority Leader Thomas K. Norment Jr. (R-James City) fired back, "All of you know me very well, and you know if I am going to punch you, first I am going to tell you I am going to punch you and then I am going to punch you in the face."
Senate Republicans have traditionally worked closely with their Democratic colleagues, including aligning with Kaine and predecessor Mark R. Warner to solve budget impasses. But Senate Republicans say they felt shut out of the process this year.
The House budget greatly reduced or eliminated funding for many of Kaine's priorities, including his pre-kindergarten, health-care and environmental initiatives.
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."
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