Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 18, 1992 TAG: 9203180333
SECTION: EDITORIAL PAGE: A11 EDITION: METRO
SOURCE: FRANK HARGROVE
DATELINE: LENGTH: Medium
Two years ago, as Wilder took office and Virginia's state government was just beginning its slide into fiscal crisis, the General Assembly adopted a $13.15 billion general-fund budget. With the economy on the mend, the budget that passed both houses on March 7 of this year had a similar final total: $13.08 billion.
The general-fund budget is how Virginia spends your income and sales tax dollars. It represents less than half the total spending. Non-general funds are mostly dedicated revenues - the gas tax for highways, federal grants, college tuitions, unemployment taxes and license fees. Spending in that category has increased rapidly, with this assembly approving several fee and tuition increases.
But the general fund is your tax dollars at work. And in just two years under Wilder, those dollars are working at very different tasks. With spending flat, it is easy to see what his top and bottom priorities are by looking at the changes.
Two years ago, almost 52 percent of the general-fund total went to public schools and Virginia's public colleges. Thanks to a $403 million drop in support for the colleges, this is the first budget in recent years with less than half of the tax funds going to education. Instead, college tuitions are rising far faster than inflation.
If higher education lost, where did that money go? Mostly to welfare programs, especially the Medicaid program. Spending in the health-and-human-services area jumped 18.5 percent, or $482 million, in just two years.
Much of this has been caused by federal mandates and the rising cost of health care. But also to blame are new initiatives, such as the governor's plan to ease eligibility requirements and expand services for children and teen-agers.
With all the highly publicized budget cuts and belt-tightening, you might think central administration had been restrained. But the executive, legislative and judicial categories saw a $17.2 million increase.
The $279,000 increase in Lt. Gov. Donald Beyer's office account is only a small part of the growth. Another $250,000 was allocated for reorganizations of the House and Senate clerk's offices, the budget for legislative junkets was increased, and $600,000 will be spent creating a new commission on health care.
The departments under the secretaries of administration and finance also saw a slight spending increase. Some of it is earmarked for debt payments on the proposed bond issues voters will consider Nov. 3. And the Department of Taxation is adding scores of new workers it claims it needs to increase collection of delinquent taxes.
Aid to public education enjoyed a $39 million increase - less than 1 percent. But that also masks major changes in priority. In response to a threatened lawsuit from rural school districts, much of the new money is going to cities with high concentrations of poor families or rural counties with low tax bases. Suburban school districts are getting a smaller share, putting more pressure on their local taxes.
The other big winner is the capital budget - the "bricks and mortar" popular with politicians. Two years ago, the General Assembly set aside only $12.3 million in tax revenues for construction and maintenance. This assembly allocated almost $76 million. Some of the projects are vital and some are pork.
What were the losers, the functions viewed as lower priority? General-fund support for transportation is down, but increased federal funds will more than make up the difference. Spending on natural resources has declined slightly and investment in economic development has been cut.
General-fund support for museums, libraries and cultural activities also declined. And the lack of a significant pay raise for state employees and reduced costs of employee benefits show up as a decline in the central-accounts category.
This is the only budget Gov. Wilder can claim as entirely his own. It reflects his priorities, supported by the majority his Democrats enjoy in the General Assembly. Although Wilder has clearly been restrained by the financial problems, the huge transfer of money from higher education to welfare was his initiative.
The long-term implications are clear. Unless a growing welfare bureaucracy is restrained, the other vital functions of government will suffer. As our economy improves and tax revenues begin to climb again, we will have to continue to fight to reduce spending in non-essential areas.
Frank Hargrove, who owns an independent insurance agency, has represented Hanover County in the House of Delegates since 1982 and is chairman of the Joint Republican Caucus.
by CNB