Lawmakers warn of hard cuts to balance Virginia budget

The prospect of another $1.5 billion in Virginia spending cuts is making for rare unanimity among legislators, with members of both parties warning that long-protected services such as public education and health care may have to be scaled back.

“We have put off some of the hard decision-making,“ Del. John M. O’Bannon III, R-Henrico, a member of the influential House Appropriations Committee, said today.

Sen. Charles J. Colgan, D-Prince William, chairman of the Senate Finance Committee, said he is not sure K-12 spending can be protected. “There are going to be some hard feelings,“ he said.

One day after Gov. Timothy M. Kaine announced that the recession-wracked budget continues to bleed cash—he’s estimating the next shortfall at $730 million to $1.5 billion—lawmakers said the state should expect the worst.

But how that will drive budget-balancing is not clear, at least until Kaine rolls out a plan in early September. He has said more layoffs are possible.

“Nothing is going to be popular,“ said Senate Majority Leader Richard L. Saslaw, D-Fairfax, a budget negotiator. “There’s a constituency for everything. But unlike Washington, we ain’t got a printing press.“

Neither Kaine nor lawmakers are pushing—now—for higher taxes. Kaine has sought unsuccessfully additional taxes for transportation, a sector that is giving up thousands of jobs and billions in construction because of the economic downturn.

“This latest situation with state finances underscores the importance of fiscally responsible leadership that does not view tax increases as a path to economic recovery and prosperity,“ said House Speaker William J. Howell, R-Stafford.

Against the backdrop of elections to decide the governorship and control of the House of Delegates, Virginia’s continuing budget crisis is certain to have a partisan dimension.

However, lawmakers said they hope politics can be minimized, given that forthcoming reductions—spending already has been trimmed by $6 billion since April 2007—will fall on programs favored by Democrats and Republicans.

“We should listen to the economists, the business leaders; we ought to mirror their . . . actions on the state level,“ said Sen. William C. Wampler Jr. of Bristol, the ranking Republican on the Senate Finance Committee.

“In an election year, that’s pretty good advice.“

Kaine’s actions to balance the two-year, $77 billion budget could be reversed next winter by his successor and the General Assembly.

Federal stimulus money softened hits on the budget earlier this year, though many of those dollars are short-term. The state’s rainy-day fund, now about $575 million, is a likely but partial cushion.

“The cliff will be much steeper now because of the revenue reduction,“ said Del. S. Chris Jones, R-Suffolk, another member of the Appropriations panel.

“When you back out the one-time stimulus money, there will be a huge gap that we have to deal with. And we have to deal with it now.“

In the public school budget, some lawmakers are predicting additional restrictions on state funding for noninstructional jobs.

“The money you actually get into the classroom has got to come first,“ said House Majority Whip M. Kirkland Cox, R-Colonial Heights, a high school government teacher and budget negotiator. “Anything else, you have to take a really hard look at.“