Anticipating a slightly brighter budget outlook for Virginia over the next two years, Gov. Bob McDonnell is pushing to spend more on economic development, transportation, and higher education — a far cry from the extensive budget-ax wielding that has characterized General Assembly sessions of the past few years. Following a lean 2010 session in which the state was forced to close a $4.2 billion shortfall in the current two-year budget, McDonnell expects state revenues, driven by stronger-than-expected income tax collections and sales tax activity, to total $283 million over fiscal years 2011 and 2012.
In addition to about $200 million he plans to spend on jobs, roads and colleges, McDonnell’s proposed budget amendments that would provide $30 million for behavioral health and developmental services, including $5.2 million for the Hancock Geriatric Center, and $24 million for the state’s Sexually Violent Predator program.
McDonnell also proposes spending $500,000 on Virginia Food Banks and $1 million for the Children’s Hospital of the King’s Daughters, which has the highest hospital Medicaid rate in the state.
Make no mistake, however, jobs, transportation, higher education and government reform, still top McDonnell’s priority list.
“Helping the private sector create good paying jobs remains our top goal,” McDonnell said. “Government must set priorities, encourage cost savings and frugality, fund core functions well, set the right climate for job creation and economic growth, and then get out of the way.”
McDonnell wants $54 million for a package he says will spur economic growth, $150 million for transportation and $50 million for higher education. He also has plans to cut, save and reallocate nearly $200 million by implementing recommendations from his government reform commission.
McDonnell’s disaffection for tax increases and his $4 billion transportation plan that relies heavily on borrowed money, however, has some questioning his spending plans.
“The governor has proposed just over $400 million in new spending — the question is, where did that money come from?” said Del. David Englin, D-Arlington.
Englin also took issue with a proposal that would use $150 million from a budget surplus to make loans to localities and private investors for transportation projects.
