On a more serious note than the rubber testicle "safety hazard" issue, it looks like we may be facing more budget cuts in the near future if Virginia's economy and tax revenues continue to deteriorate.
In the letter, Kaine referred to three sectors of the state revenue pie: Nonwitholding individual income, corporate taxes and the recordation tax. The first, paid largely by investments and the self-employed, dropped 21.4 percent in December over the same month in 2006. Corporate taxes fell 21.1 percent last month, and the tax on recording deeds, wills, contracts and lawsuits dropped 27 percent.
Unfortunately, faced with plummeting revenues, there are only a few options available for Virginia to balance its budget: 1) cut spending; 2) raise taxes; 3) borrow; 4) dip into the "rainy day fund;" 5) pray that the economy turns around, FAST! Did I miss anything?
Of course, raising taxes is pretty much a non starter in Virginia because of the rigidly/ideologically anti-tax House Republicans (unless, of course, you call those taxes "fees" or something clever like that). Dipping into the "rainy day fund" might be off the table as well, based on hostile comments from leading Republicans. Unfortunately, a quick economic turnaround isn't likely, barring divine intervention (Pat Robertson, where are you?!?).
That leaves borrowing (aka, racking up debt for future generations) and/or cutting spending. The problem, with spending cuts is well stated by Del. Ken Plum (D-Reston), who notes that "Virginia is a pretty frugal state" and concludes that "It's not obvious or clear to me right now what can go." The other big problem is that spending cuts almost certainly will hurt the most vulnerable -- the poor, the elderly, and children. Budget cuts could also harm the environment (e.g., money to clean up the Chesapeake Bay) or even public safety. Obviously, these are not pleasant prospects; I guess that's what they pay Gov. Kaine the big bucks to figure out.
Fortunately, in working to solve these problems, Gov. Kaine can count on helpful lawmakers from both parties who place the interest of Virginia ahead of their own political interests. Or not.
Lt. Gov. Bill Bolling agreed Tuesday that spending should be reduced if economic growth continues to "be sluggish or decline," though he accused Kaine of sending a mixed message to the General Assembly."The governor's position on this issue has been very inconsistent," said Bolling, a Republican. "One day he wants to raise taxes and increase spending. The next day he wants to reduce spending. He needs to decide what he wants to do and stick with it."
And what do you propose, exactly, Mr. Bolling? Oh, that's right, you're one of those "compassionate conservatives," which means you slash programs for the most vulnerable in our society, but you do it with "compassion." Yeah, we see how well that worked out in the country the past 7 years.
And to Delegate Plum you don't deserve your job if you can't figure out what can go. Any moron can raise taxes (also any moron can say no to everything) it actually takes intelligence to manage a state budget. I am hopeful that there are still enough sensible people in Richmond that realize this but I am getting increasingly pessamistic