"Coming Back to Haunt Us"

You can say that again, Senator!

Here's where Virginia's budget situation is at right now, according to today's Washington Post:

- Virginia Gov. Timothy M. Kaine has ordered state agencies to cut spending by 5 percent and will consider asking the General Assembly to tap the "rainy day" fund because of a $641 million budget shortfall.

In a speech to state legislators Monday, Kaine (D) said the state must slow its rate of spending because the housing market is weakening and some past budget decisions were made on assumptions that have not panned out.

Here's one of the assumptions that didn't pan out:

In December, after his plan to raise the sales tax on vehicles failed, Kaine announced that the state had a $500 million surplus in the fiscal 2007 budget. Kaine earmarked that one-time money for transportation needs.

Not to say "we told you so," but Raising Kaine warned about this repeatedly last winter and spring.  Now, thanks IN PART to a slowdown in the housing market as well as a surge in people taking various tax credits, our worries are coming true.  (Note: we might also revisit the extremely unwise decision in 2006 to repeal Virginia's estate tax, which cut revenues by $120-$140 million annually in order to help 871 of Virginia's richest families.  Brilliant.)

Now, Virginia is facing serious deficits and cuts to important services, just as Gov. Kaine wants to add a new pre-kindergarten program and address other priorities.  As the Post article says, "Kaine will now have to convince the General Assembly that the state can afford to fund some of his campaign promises, among them enrolling more 4-year-olds in pre-kindergarten and protecting open space, even as spending in other areas is being reduced."

Already, the opposition is lining up against Gov. Kaine's spending plans for his remaining two years in office:

"It is problematic to come forward with new proposals when you are talking about tapping rainy-day funds," said House Majority Whip M. Kirkland Cox (R-Colonial Heights). Kaine said he will decide in the fall on whether to push for the rainy-day funds.

The answer to all this?  First, trim spending where possible, but NOT in essential areas.  Second, bring back the estate tax.  Third, scrap the idiotic "abuser fees" and replace them with a gas tax increase to pay for transportation needs.   Fourth, to accomplish those things, GET A NEW GENERAL ASSEMBLY in November, one controlled by a different party than the one that got us into this mess.  Then, perhaps we can get back to considering important new programs like pre-kindergarten,  protecting Virginia's open space, saving the Chesapeake Bay, etc.  For now, unfortunately, past decisions truly are "coming back to haunt us."

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