Breaking News on Budget Stalemate

By: Rob
Published On: 5/23/2006 1:48:47 PM

From NBC4:

The Senate Finance Committee on Tuesday endorsed a revised budget that bows to the House of Delegates' demand to hold the line on taxes and put off the debate on a transportation plan until a fall special session.

The retreat could signal a breakthrough in a historic budget stalemate . . .

The Senate bill includes a one-time expenditure of $339 million for transportation, but there is a catch. The money will be spent on roads and rail projects only if the General Assembly passes a statewide transportation plan that includes tax increases by Nov. 1. Otherwise, the money will go to the school construction fund and other capital projects.


[UPDATE: Gov. Kaine just issued the following statement.

+óGé¼+ôOnce again, the Senate has extended the hand of compromise to the House. The House leadership demanded that transportation be separated from the budget, and they now have transportation bills separate from the budget. The House leadership then demanded a budget free of tax increases, and they now have a budget free of tax increases.

+óGé¼+ôThe time for House leadership to come to the negotiating table is long overdue.  We are rapidly approaching the end of the fiscal year, and the need for a solution to address the shortfall in statewide transportation funding becomes more urgent every day.  For the best interests of the Commonwealth, House leadership should now take up the Senate transportation bills they have not acted upon for three weeks, and immediately return to work with the Senate to pass a budget.+óGé¼-¥

]

[UPDATE #2:  Read more on this story in The Washington Post]

Comments



I'll have to ponder this development... (Tom Joad (Kevin) - 5/23/2006 2:36:53 PM)
as I sit in traffic on the way to GMU tonight.


Hopefully, this will point the finger at the House, (summercat - 5/23/2006 3:20:23 PM)
right where it belongs.  Now we'll see what excuses they come up with for planning to suck the state into major debt again.