Breaking news – the Governors new budget eliminates the car tax relief program. He has replaced the lost revenue with a 1% income tax surcharge. This means that the state will still get the revenue out of us but not in the form of a property tax. I don’t have all of the numbers but it looks like the new tax will collect somewhat more than the car tax did. However, it is hard to tell yet, the car tax reimbursement program was $950 million but that didn’t get everyone’s tax down to zero so it still collected some amount north of that. the new tax looks like it will collect $1.3 billion in the first year.
The new budget also cuts state aid to localities that is dedicated to police funding by 20%. Don’t know the impact on the schools yet but it isn’t likely to be good.
We’re sure to get more info and analysis from VML over the weekend and I’ll post it as it evolves.
December 19, 2009 at 10:11 am
What else would you expect from a bitter outgoing tax and spend liberal? This “budget” submission by a lame duck governor will never go anywhere in the State House nor will the Governor-elect support it.
December 19, 2009 at 12:29 pm
I agree, the new Gov. will not support it and I will be keenly interested in his fix for the budget hole. Based on what I read in the times-dispatch, he seems inclined to increase the number of lay-offs at the state level. Either way, service reductions and cuts in education and public safety seem impossible to avoid at all levels.
December 19, 2009 at 3:14 pm
Andy, for MCPS, we actually fair pretty good compared to other cities/counties. I rounded the numbers up, and here is how it looks:
FY10 31.7M (includes ARRA money in base amount)
FY11 33.2M (also includes ARRA)
FY12 37.2M
So not bad…of course, some of the other cuts will protect K-12, and higher education looks like there might be tuition increases (ouch! since I pay two college tuitions). But the MCPS is looking ok so far from the State – but I am a big fan of saying locally the MCPS should also tighten its little ole belt too and not count on two years of ARRA.
December 19, 2009 at 8:25 pm
The Governor proposes but the legislature disposes.
Gov. Kaine, as required, has put forth a proposed budget,
but he is a short-timer and soon to be Governor McDonnell
will have his own ideas, as well as key GA members.
This is a work in progress.
December 20, 2009 at 1:52 pm
“This is some kind of statement. It’s not intended to be
passed, and it’s not likely to be taken seriously.”
Paul Goldman
Former DPV Chairman