State Senator Petersen on the Passage of Senate's Budget

FROM THE OFFICE OF STATE SENATOR PATERSEN

January 25, 2010

CONTACT: Julia Kim
804-698-7534

Richmond, Virginia - February 25, 2010 - On Thursday, the Virginia Senate's budget bill, SB30, appropriations of the Governor's budget for the next two years, passed on the Senate floor (30-10).

Given the restraints posed by the recession, the budget's focus was on sustaining K-12 education. The Senate reversed the Local Composite Index freeze that would have cost northern Virginia's public schools over $144 million in critical state funding. About $56 million was restored to Fairfax County in the budget, which included a "hold harmless" clause that ensures that localities will not receive less than was expected before the LCI freeze was reversed.

"This is a recession-driven budget. We have less to spend and we spend less. However, I'm glad that we were able to treat our localities and constituents fairly. Specifically, I applaud the Senate for using the 'true LCI' in allocating state education funds and not using false or obsolete data," said Senator Chap Petersen (D-Fairfax).

According to Petersen, the Senate had made a special commitment to K-12 public education, especially in areas with higher costs and increasing student populations, and had to institute a number of new state fees and revenue increases to compensate. Those counterbalances included a reduction in payments to the Virginia Retirement System over the next two years, which affects state employees hired after July 1, 2010, and "cost-saving strategies" in the areas of corrections and public safety. However, the Senate budget did not include any general fund tax increases and rejected most of Governor McDonnell's job-eliminating tax cuts.

"In general, we have reduced government spending to fit our revenues for the next two years. I congratulate the Senate Finance Committee and Senate Finance staff for making that happen," stated Petersen adding that as the economy rebounds, he will look for ways to restore cutbacks in the 2012 budget.

The Senate's approved budget will be reconciled with the House of Delegates' in a budget conference in the coming days before being presented to Governor McDonnell for final ratification.

Senator Chap Petersen represents Virginia's 34th State Senate district, which includes Fairfax City and much of Fairfax County.

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