The state over, local governments have made their moves to adjust their budgets as they see fit. The big unknown now is the state budget. This state budget is a big deal b/c about half of the money the state collects goes back to localities for schools, etc. so when the state budget is under pressure, so are the localities.
This year, the Governor has proposed that the state use some $400 million out of the rainy day fund in order to somewhat plug the hole in the budget. He thinks this ok as we have about $900 million in the rainy day fund – twice what was in there when he took office (according to a speech he gave about a month ago).
The General Assembly will take up his proposal when they start their next session in a few weeks. I don’t know what they think of Kaine’s proposal but the noises I’ve heard so far promise a vigorous debate.
Personally, I would like to see school funding maintained – especially since some percentage of that money is to offset mandates handed down from on high….
January 4, 2009 at 2:32 pm
“Cuts in state payments to local governments comprise almost 30 percent
of the $2.9 billion revenue shortfall. It is likely that state money
appropriated for mandates and other high priority programs of state
and local concern will make up an even greater percentage by the
conclusion of the 2009 session. This may take the form of greater
specific cuts for certain programs such as state assistance to police
departments or increasing the $50 million per year across-the board
cuts enacted in the 2008 session, or both.”
Virginia Municipal League (Dec. 2008)
Buckle up, this is going to be a rocky ride. (Like you Andy,
my hope is that the Gov. and GA won’t pull the dubious tactic again
of cutting promised money and leaving their unfunded mandates
for us to manage. )
January 6, 2009 at 7:31 am
Somebody should run the numbers for the public, I don’t think many citizens understand at all what parts of the City budget are covered by state funds (subject to their budgeting), nor have any clue what it REALLY menas to talk “unfunded mandates”. Sure we all have a concept of what the term means, but educate us Andy/Steve what it really means to us. If I’m gonna get spun up talking to my neighbor Jackson about state budget priorities, I need info!
January 6, 2009 at 5:46 pm
DavidB,
An example – the Virginia Comprehensive Services Act (CSA)
helps youth that have major special needs. I don’t question the need
or value of the program, but I do question the funding mechanism.
The state mandated it in 1993, but later put a cap on their
contribution to the program while not allowing local governments
to cap their cost, consequently placing an increasing
percent of the costly program on cities and counties. Richmond
needs to pay its fair share again.
Another neat trick is the raid on local revenue. Gov. Kaine
has proposed to reverse state policy regarding the disposition of
excess fees collected by clerks of the circuit court – 2/3 for locals and
1/3 for the Commonwealth. Six million will go to the state and not
local government.
Richmond must stop adding cost to local government
whole seizing local sources of revenue to balance the state budget.
Our citizens deserve better.
January 6, 2009 at 5:55 pm
Forgot to mention the nice mailing from Jackson that came today.
(An attractive family, think even the dog is from central casting).
January 7, 2009 at 5:29 pm
I think the only department that should not face a budget cut is public safety. The school budget, given that it is the single largest cost should get a serious look over to cut the waste.