Speaker Howell: Statement on House Budget Amendments' Approval by House Appropriations Committee

From the Office of House Speaker Howell

February 21, 2010

Contact: G. Paul Nardo
(804) 698-1228
gpnardo@house.virginia.gov
www.williamjhowell.org

RICHMOND, VA - Virginia House of Delegates Speaker William J. Howell (R-Stafford) today issued the following statement after the House Appropriations Committee voted to approve House Bill 30, Amendments to the Fiscal Year 2011-2012 Biennial Budget:

"The ongoing economic uncertainties have presented members of the House Appropriations Committee with serious challenges and many difficult choices brought on by declining revenues to close a $4.2 billion shortfall and balance the state budget as required by the Virginia Constitution. Though no one sought these circumstances, I agree with Chairman Putney and others that we must seize this opportunity to enact sensible, long-term structural reforms in state spending which will position our Commonwealth for more jobs, opportunities and prosperity as soon as possible. With the strong, creative and pragmatic leadership of Chairman Putney, the House Appropriations Committee has produced a responsible and fiscally sound package of budget amendments.

"A cornerstone of the committee amendments is restoring $1.9 billion over the next biennium in state reimbursements to local governments that Governor Kaine proposed eliminating, which avoids a tax increase. It makes absolutely no sense to raise taxes when we're trying to come out of a recession because higher taxes do not help, only hinder, job creation and economic growth. In addition, creating a $165 million revenue reserve for a constitutionally required deposit into the state Rainy Day Fund in the 2012-2014 biennium, bending the cost curve of Virginia Retirement System pension liabilities, and including no furloughs for state government employees are all prudent actions incorporated into the committee's amendments, ones that underscore our priority of making long-term structural budget reforms. I'm also heartened that we are able to mitigate some spending cuts in other core areas of the budget, including law enforcement as well as health and human resources. And it is smart to provide additional flexibility and fewer state mandates to help K-12 education deal with spending reductions.

"I am struck by how Virginia is taking a very different approach in dealing with its budgetary challenges than the federal government. The budget being discussed in our nation's capitol features increased spending, higher deficits, and even tax increases. Here in Richmond, we are considering plans to complete a budget that includes spending reductions, no deficits and no tax hikes. Just as families across Virginia have to make difficult decisions - often curtailing spending to live within their means - during difficult economic times, the House of Delegates believes in doing the same. The goal is to emerge from the recession more quickly, generating more private-sector jobs by practicing government spending restraint. It makes the process of a constructing a new state budget more challenging in the short run, but also makes our economic outlook brighter in the long run.

"Chairman Putney and the members of the House Appropriations Committee have served the Commonwealth and their fellow delegates very well under extremely trying budget circumstances. I congratulate them on their accomplishment today and look forward to the passage of House Bill 30 by the full House later this week."

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