Cutting Virginia's Budget

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Monday, December 29, 2008

LAWMAKERS ON both sides of the aisle are grumbling about the proposal by Virginia Gov. Timothy M. Kaine (D) to address a severe and unprecedented state budget shortfall. We can't think of a better endorsement of the plan. Mr. Kaine had the unenviable task of slicing about $3 billion from an already lean $77 billion biennial budget. He could have slashed spending across the board but instead chose targeted trims -- such as allowing for shorter prison sentences for nonviolent offenders -- while preserving some of his most valued initiatives, including some environmental programs. The proposal is shrewd, both as fiscal policy and as a warning shot to a balkanized legislature. The House of Delegates has repeatedly bungled transportation reform and other important initiatives; a similarly hapless approach to the budget crisis is unacceptable.

The most visible part of the proposal -- and surely the most jarring in a state that is home to the headquarters of Philip Morris -- is a doubling of the tax on a pack of cigarettes to 60 cents. Virginia smokers account for an estimated $400 million in annual Medicaid expenses to the state but pay only a fraction of the costs. The 30-cent boost, which would bring the tax to half the national average, would generate an estimated $150 million and discourage smoking. The proposal is long overdue, is eminently sensible -- and is expected to wither in the House Finance Committee. We'd like to know where legislators who oppose the tax expect to find a spare $150 million.

The governor's call to ease prison crowding and save the state millions has also provoked howls. His proposal would allow the director of corrections to release nonviolent inmates up to 90 days before their sentences end. Predictably, critics gripe that the milder, though by no means lenient, standards would embolden criminals. We're skeptical that allowing model inmates out a few months early would spark a surge in crime. Besides, Mr. Kaine's budget continues to place a priority on law enforcement. His proposal trims only 7 percent from the budget of public safety agencies, less than half the 15 percent from most other departments.

The governor had spared the school system from previous cuts, but he now proposes to slice about $400 million from the close to $30 billion education budget. Schools are the state's largest expenditure, and educators were bracing for a significant reduction. But many were surprised that Mr. Kaine's plan permanently reduced state funding for support staff, such as counselors and nurses. Some state Democrats have criticized the governor for making the change permanent instead of ordering temporary cuts. Mr. Kaine maintains that the state will inject dollars back into the schools as soon as the economy improves.

The governor also proposes to slash 1,150 positions from the Virginia Department of Transportation, eliminate an additional 1,500 to 1,700 state jobs, delay pay increases for state employees, and cut $418 million from Medicaid by delaying new services and freezing reimbursement rates. President-elect Barack Obama's potential stimulus package, which includes aid for states, could help soften some of these reductions, though it's unknown by how much.

The governor's reductions are painful but necessary. We only wish that Mr. Kaine had done more to build support for his initiatives. Prominent Democratic lawmakers say they received virtually no advance warning of the governor's plans. Former governor Mark R. Warner (D) was known for reaching out to legislators from both parties; Mr. Kaine, his successor, should do the same. Still, lawmakers have no excuse to dodge tough decisions when the legislature convenes in January.


© 2008 The Washington Post Company

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