The Virginian-Pilot
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SUFFOLK
Just as the governor is considering new state budget cuts, a deadline is looming for localities to answer how they plan to deal with $50 million in reduced aid.
The General Assembly approved the reduction in aid in the spring as part of the 2008 Appropriation Act, and the state last month gave localities a list of programs from which to cut their shares. Localities are permitted to reimburse the state if they choose not to cut any programs.
Like many cities, Suffolk didn't like the choice.
"It puts us in a very compromised position," said Anne Seward, the city's budget officer.
T he City Council this week is scheduled to approve a measure that refuses to identify programs to cut.
Instead, the city would make up for its $328,900 share by reimbursing the state with what it calls excess revenue. The amount is 0.2 percent of the city's $170 million general operating fund.
Like other localities, Suffolk is afraid that cutting specific programs would tell legislators those programs aren't a priority, Seward said.
The Virginia Municipal League advised localities to take the same route.
Mary Jo Fields, the league's director of research, said this is the first time in recent memory that the state has cut aid to local governments without specifying programs to be cut.
"What it does was it just transfers the blame to localities," she said.
Dan Timberlake, director of the Virginia Department of Planning and Budget, said the option to cut programs or reimburse the state was intended to give localities more flexibility.
The state provided a list of areas for potential cuts. They included courts, community corrections, child and youth services, and social services. The list did not include K-12 education.
Localities must report what they want to do by Aug. 30 or risk having the state make the call. Another $50 million in aid to localities will be cut next fiscal year.
In Virginia Beach, the share this year is $2.2 million. The city absorbed the lost money by replacing it with local revenue when building this year's budget, said Catheryn Whitesell, director of management services.
Seward said conservative revenue projections in Suffolk's budget should provide enough of a cushion.
"And the state will hopefully not hit us again," she said.
Pilot writer Richard Quinn contributed to this report.
Dave Forster, (757) 222-5563, dave.forster@pilotonline.com
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More Cuts to come!!!
The City of Suffolk, according to our fine Budget Officer says no cuts will occur because we have excess funds due to "conservative revenue projections"... This is a "government double-speak" for pork has been found in our "Lean and bare bones budget"!!! This is only possible when the budget process is crafted to hide funds and raise taxes without real cause and we all should be concerned of such. The question to pose is: After seven straight years of significant budget increases and many calls from the people for some relief from the heavy tax burden brought on by significant real estate assessment increases, which have raises taxes on our homes and farms, we now find direct proof that there is fat in the budget after all??? When approving the City Budget, our Mayor Linda Johnson stated publicly that they "CUT TO THE BONE" and could do no more for us, but raise our taxes AGAIN... This highligh
FUNDS
Well here is another way to take away money that we already don't have. A billion dollars short in revenues, because we are not taking in enough taxes to generate it. So now the local and state governments have an excuse to raise local and state taxes to take more out of your pockets.