Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 19, 1992 TAG: 9201170021
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
SOURCE: JOAN MUNFORD
DATELINE: LENGTH: Medium
NATIONAL ECONOMICS HURT VIRGINIA BUDGET
I believe that this season, my 11th, will be the toughest I have faced because the lagging national economy continues to have a severe effect on Virginia. We cannot look forward to any major improvements in our state economy until the national economy begins recovering.Gov. Douglas Wilder has proposed many additional cuts in state spending to maintain a balanced budget. I am pleased, though, that there are no cuts in public education and that we may even see additional money for public schools.
There are, however, cuts proposed in higher education that will affect Virginia Tech. I have written to Gov. Wilder requesting that he not impose further cuts on Virginia Tech and other state agencies in the New River Valley, due to the impacts these cuts have on our local economy. I will continue to oppose any reductions in spending that will cost jobs in the New River Valley.
When we entered this recession a little over a year ago, Virginia chose a path that few states followed. Virginia was one of only five states that actually reduced spending, and one of only two states that did not impose a tax increase. It is our philosophy of keeping a balanced budget and remaining a low-tax state that has spurred Virginia's growth over the last decade. It is a philosophy I believe we should continue to follow. While our personal income is one of the highest in the country, we have kept sales, corporate and income taxes below the national average. We ranked 44th in 1990 in the U.S. in state and local taxes; only six states have a lower combined rate of state and local taxes.
One primary reason Virginia continues to experience budget difficulties is further increases in Medicaid funding for health care for the elderly and the poor. These increases are mandated by the federal government, thereby leaving Virginia little choice. These mandates will require an additional $413 million over the next two years. Seventy-five percent of all Medicaid funds provide care for the elderly and disabled.
Gov. Wilder has, once again, proposed no new general tax increases. He has, instead, proposed structural changes combined with agency reductions that would eliminate 1,505 positions in state government and cut spending by $384.5 million. An additional $259.7 million would be generated by postponing certain tax changes and implementing a new tax on health-care providers. I oppose many of these changes.
The governor has also proposed that the General Assembly fully fund the Standards of Quality for Public Education. This measure would require an additional $341.4 million. Another proposal calls for changes in education funding that will help address the disparity issue in our rural schools.
Other initiatives the governor proposes are a $5 million "deal closing" fund for economic development, $24.1 million in additional funds for student financial aid, $1.6 million in funding for the community college system, repayment of funds transferred from the Department of Game and Inland Fisheries and $49 million to offset increased costs of health care for state employees. Again, there is no money for raises for state employees.
Joan Munford, a Blacksburg Democrat, represents most of Montgomery County and part of Giles County in the General Assembly. To contact her, call (804) 786-8425 or write to P.O. Box 406, Richmond, Va. 23203.