Delegate Shuler’s Legislative Report

1-12-01

BUDGET BATTLE

The 2001 session of the General Assembly is underway and although we’re only in the first full week, there are some clear signals heralding what awaits ahead. There is no question that this session will be ruled by the budget—or, more precisely, the economic slowdown experienced throughout the state. Revenues in the Commonwealth, although still up, are lower than originally projected and the potential shortfall will effect much of this year’s legislation.

Already we have been warned that money is not available in the budget sent to the General Assembly from the Governor for any teachers’ raises or museum, arts and cultural programs. Money has also been stripped or severely cut from programs already scheduled to receive dollars. Those programs include, but are not limited to: road construction, land conservation, school construction and mental health programs. Our future rests on our teachers and the Commonwealth owes it to every parent & child to make certain that the teaching profession attracts and keeps the very best. Cultural programs not only preserve our past, they are a potent resource for community dollars. Along with those two vital, overlooked programs, last session the General Assembly earmarked specific funds for road projects, established a land conservation account and provided allocations for school construction that have been greatly reduced in this year’s budget. Mental health funding, although increased every year, is facing changes at the federal level and the Commonwealth must remain vigilant. Promises were made to Virginia citizens and we must continue to stand behind our commitment. Much of my time will be centered on ensuring that money for all those areas is integrated back into the budget.

The primary budget issue facing the General Assembly will no doubt be the funding related to the car tax. The original 1999 legislation to phase-out the car tax contained financial triggers in order to ensure that established projects, programs and obligations like those mentioned earlier would not be placed in jeopardy if revenue fell short. That revenue shortfall is the situation before us today. The Governor has proposed that we draw down one-time future money expected from the National Tobacco Settlement to bring the budget figures up to continue funding for the car tax. This approach of issuing debt and borrowing against future revenue represents a significant shift in the way Virginia analyzes and balances the budget. I have grave concerns about creating a "paper-picture" of the Commonwealth that does not accurately reflect the true budget reality of the state of the Commonwealth.

I am acutely aware of how important car tax relief is to many Virginians. It was, indeed, a voter consent bill. In looking at the data we have for the car tax, there is considerable evidence that the benefits of this tax refund rest primarily with the eastern--wealthier and more populated--areas of the state. Fairfax County has 14% of the state’s population but enjoys 23% of the car tax relief funds. In 1999, vehicle owners in Fairfax County received an average of $70 per car. Comparable information was not available for Giles County in 1999, but the average refund for Giles County in 2000 was $14.00

I will look closely at all the measures which address the car tax and weigh that minimal tax cut against other, far more pressing concerns that may be facing the New River Valley and the Commonwealth.

As usual, I hope if you have questions or concerns about legislation mentioned in this column or any other legislative matter, you will not hesitate to contact me at any of the following Richmond addresses.

 

Jim Shuler’s Legislative telephone 804-698-1012

Jim Shuler’s Legislative fax 804-786-6310

Constituent Hotline 800-889-0229

Richmond e-mail address Del_Shuler@house.state.va.us