Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 27, 1993 TAG: 9301270030
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
SOURCE: JOAN MUNFORD
DATELINE: LENGTH: Medium
DON'T SAVE AT LOCALITIES' EXPENSE
The No. 1 issue each year is always the budget. Gov. Wilder has already proposed amendments that would increase spending by $159 million for corrections and public education. Each of these additional costs is driven by the growing numbers of elderly and schoolchildren and the increasing prison population.Last year, the voters of Virginia approved a constitutional amendment to establish a Revenue Stabilization Fund.
Beginning in 1994, revenues exceeding average growth rates would be set aside to balance any shortfalls in years when revenues declined. This will be a savings account that will, hopefully, prevent any repeats of the severe budget cuts we've had to make in the past three years.
I think this is a good idea, and so did the voters of the Commonwealth. However, the governor does not want to wait until 1994. He has earmarked $30 million in the current budget to be placed in the fund.
I see two problems with this move.
Our revenue growth is still way below average. During the 1980s, state revenues grew at an average of 10 percent a year. For 1993, state revenues grew by only 2.8 percent.
In addition, the General Assembly approved a plan in 1989 to return to localities their share of real estate recordation fees.
This plan would send money to every county and city in the state to use for education and economic development. The governor, instead, wants to take the $20 million that would be returned this year to place in the Revenue Stabilization Fund.
I support the Commonwealth having a "savings account," but most definitely not at the expense of our localities.
The difficulty of trying to manage Virginia's finances is that most of our spending is dictated by either federal mandates or the needs of a growing population. Here are some reasons why:
The number of Virginians eligible for Medicaid will more than double this decade, due to the large number of people still out of work and the growing number of citizens over 65.
Because of the many new laws that have increased penalties for law breakers, the prison inmate population is growing so fast that we will need to build two prisons every year until 2000.
Education costs are the largest component of the budget. Most of these costs are directly related to enrollment. The number of school-age and college-age students will continue to grow through 2000.
Funding these three areas alone makes it very difficult to address other critical concerns such as economic development, the disparity in education between urban and rural schools, improving access to health care, and providing needed transportation projects.
Until we devise a more efficient means of delivering health care, Medicaid will continue to consume state resources. The rising costs of health care contribute substantially to Medicaid growth.
Many in the legislature are waiting to see what the new president does to reform health care. A national health care reform is needed; however, if Washington does not act, then I am sure the Virginia General Assembly will move.
It continues to astound me that we can more than double our prison population, yet see no decrease in the crime rate. Meanwhile, it is costing us $15,000 to $18,000 per year to house each inmate in our prisons. We must begin to look at alternatives, particularly for non-violent offenders.
Overall, the economic future for Virginia is one of both concern and encouragement. Our efforts, at both the state and local level, to spur economic development must be given a high priority. We still need to increase our marketing efforts to let the country know that Virginia is a great place to do business.
Your views are important. Call me at (804) 786-8425, or write to me at P.O. Box 406, Richmond, Va. 23203.
Joan Munford, D-Blacksburg, is a veteran member of Virginia House of Delegates. She represents Blacksburg and parts of Montgomery and Giles counties.
Keywords:
GENERAL ASSEMBLY 1993