RICHMOND
Legislators were unhappy Wednesday after Gov. Timothy M. Kaine revealed his plan to close a $2.9 billion hole in the state budget.
Republicans vowed to oppose Kaine’s proposal to double the state’s cigarette tax, saying it would destroy jobs in Virginia’s already-ailing tobacco industry.
And Kaine’s fellow Democrats, while lauding the governor for making tough decisions in a thankless time, fretted about his proposals to reduce education funding and freeze admission into the state’s Medicaid program, which provides health services to low-income Virginians.
“It’s very sobering,” said Del. Ken Melvin, D-Portsmouth.
Kaine laid out his plans for the remaining 18½ months of the current two-year, $76 billion budget during a morning speech to the General Assembly’s money committees. Lawmakers will act on the recommendations during a six-week session that will begin Jan. 14. Unlike the federal government, Virginia is constitutionally required to have a balanced budget.
“We have made tough decisions to keep the budget balanced without any general tax increase and without compromising core services,” Kaine said.
The governor said he is aiming a specific tax increase at smokers because they need to pay a greater share of their health care costs.
He cited estimates from the federal Centers for Disease Control and Prevention that cigarette smoking costs Virginia $400 million a year in Medicaid expenses. The state’s current 30-cents-a-pack tax – the third-lowest rate in the nation – generates $167 million.
Even at 60 cents a pack, Virginia would have the 13th-lowest levy in the nation. The additional tax, Kaine said, may spur some smokers to quit.
The cigarette tax may be dead on arrival in the Republican-controlled House of Delegates, however.
When word of the plan leaked out Tuesday, House leaders instantly assailed it as a “job killer” and an affront to Philip Morris USA, the world’s largest cigarette producer, and its parent company, Altria Group Inc. Both have their corporate headquarters in Richmond and have invested about $1 billion in the region during the past four years to modernize a cigarette manufacturing plant and build a research center.
Kaine’s proposal is “ sending Philip Morris a message that we don’t want their business in Virginia,” House Majority Leader Morgan Griffith, R-Salem, said on Wednesday. Kaine recommended $400 million in cuts to public schools, saying it is impossible to shield them from the damage of the national recession.
Most of the savings would come from cutting funding for schools’ support personnel, including psychologists, clerical workers and curriculum specialists.
Many legislators and educators voiced concern that the reductions would ultimately hurt classrooms. Even though local school systems would receive less money for support personnel, the governor cannot order school boards to make the exact cuts he recommends.
“We fear that this could lead to higher class sizes and less services for students,” said Kitty Boitnott, president of the Virginia Education Association, a lobby for teachers.
Some lawmakers fretted that Kaine’s proposals could compromise public safety.
To reduce incarceration costs, the governor recommended releasing some nonviolent felons from prison nine months before their sentences ended and cutting funding for local sheriffs’ and commonwealth’s attorneys’ offices by 7 percent.
State Sen. Kenneth Stolle, R-Virginia Beach, criticized the proposed cut to sheriffs’ offices. “The result will be that there are fewer officers on the street, and I can’t support that,” he said.
Of the early-release plan, Stolle said, “It would be hard for me to support that unless there are specific requirements that the released inmate hadto have a job and a place to live.”
For all the bad news about Virginia’s budget, many Republicans predicted worse tidings are in store this winter. They said that Kaine’s projection of a $2.9 billion shortfall in revenues is rosy, and that the actual hole may be $3.5 billion.
“At some point, the governor is going to have to take his head out of the basket,” Griffith said.
Warren Fiske, (804) 697-1565, warren.fiske@pilotonline.com
Julian Walker, (804) 697-1564, julian.walker@pilotonline.com
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Kaine and his budget plan
There are no excuses for these cuts.
Governor Kaine, Senator Webb and our state and federal representatives are not doing what it takes to deter illegals which is costing US Billions and takes away from the rest of us. It has also cost the lives of two teens in Virginia Beach and more throughout the country, why are they not protecting us?
If we didn't have to support illegals' healthcare and education needs, we wouldn't be so short on money. Hospitals, individuals, businesses and state and federal governments pay more for products and services because the cost is passed on to us on at least 7 levels, whether you have insurance or not!
What does our so-called reps have to say about that???
Every one of us is paying the price for illegals and our so-called reps are not doing their job to protect our sovereignty or safety!!!
That problem is easily solved by mandating E-Verify for all Virginia businesses and across the country. Since this is a state business license issue, it doesn't fall under federal law. Check out the successful "Legal Arizona's Workers Act". that could be mirrored for all remaining states without one.
757-887-6629 if you have any questions.
huh?
What is stinch?
why stick it to anybody....
....other than over-funded failed programs like education? There's more cash cows out there too I'm sure. I just don;t see the "need" other it's a short cut fix, to raising or creating any old or new taxes period. Simple basic budget 101 fundamentals....cut spending. Live within the state's means. Run it no different than we would our own household.
People you need to stop getting sucjered into every feel good taxation idea that comes along becuase it simply doesn't effect you personally. Stick to the core issues like wasted taxes that are collected already. You can't hide your credit card debt simply by getting a lsight pay increase. You have to gut the budget first of wasteful itmes.
disposables......
hmmmm maybe that is that stinch filling up the landfill and polluting the ground water......good thing you aren't taxed on everyone you throw away.
I never said stop having
I never said stop having babies.....I said start paying for your fair share of costs. If it is fair to tax one item that a few don't like then it is fair to tax all relative to the cost of all having to clean up, process, or dispose of those items. How about the 37 vresion of some time wasting e-game machine like XBox? How many landfills do we fill with those before we tax for the processing and disposal.
There is more than one sin and when the government starts taxing yours and not others, well , hopefully some one will speak out on your behalf.
smokers are addicted
They say there not...but they are. You can triple that tax and they will pay for there habit....tax the heck out of them !!! Oh...and trust me..the tobacco industry will be fine.
I Have an Idea
Have the Felons that are released Pay an early release Tax.
Tax Cuts
I'm surprised that the Gov. Kaine didn't follow Gilmore's lead by lowering Taxes; It always worked in the past. Got to go, Fox News is on and they will tell me what I need to know.
Revenue Shortfall - Three words
OFFSHORE OIL LEASES
Cut teachers?
Bald Eagle wrote >>first remove all co-teachers from regular teachers classroom. With special training a teacher should be able to teach any student in their room, there is no need for two teachers for twenty students.>>
Ok. So how are the teachers going to deal with the kids with "behavior issues"? I have 2 children in the public school system. And let me tell you, there are some SERIOUSLY messed up kids in there. My youngest's class had a couple of them last year that NEEDED an extra teacher to make sure they were doing what they were supposed to be doing-not making the other students OR the teacher suffer.
Yes, some of the fault lays with poor parenting. So what do you do? Do you throw out all the kids that have parents who don't care? Who do you think is going to eventually pay for them? That's right, you and me because they'll wind up in the correctional system.
Amen Johnbo!
Merry Christmas everyone!
Stop the madness
That’s it – I’m jumping ship. I can no longer proudly stand up and say I’m a Republican. Having our Republican Delegates immediately rally to kill any tax increase on cigarettes because it is a “job killer and an affront to Philip Morris” is an insult to common sense. Sure, save Philip Morris, but education be darned.
Smokers, re-read the proposal. You enjoy a tax that’s the third LOWEST in the nation. The increase would move it to only 13th. Don’t worry - Philip Morris will continue to thrive on the deaths of its consumers.
For those that have been meaning to quit as part of your yearly New Year’s resolution – Governor Kaine is here to help by making cigarettes more costly, thereby reducing your urges to smoke.
diaper tax
Diaper tax!!!!! Double tax formula or stay home and go back to the do it yourself method.
Yeah I love people who want to put it all on something they don't like and conveniently forget they pollute and contribute to the cost of government.
Your baby cost money. You are filling up our landfills with your nasty filthy diapers. Tax those diapers or buy washable and get up off your lazy katoochas and do some laundry.
tobacco
i say thundercats are go for this new tax increase proposal. Smokers are nasty and i loathe going into a restraunt or passing a place in public where i have to hurry my baby through a toxic, nasty cloud of smoke, and God forbid one of them talk to you. this will deter the purchase of cigarettes. Maybe they could all switch over to dipping...an equally nasty habit but one that could be kept to themselves.
Republicans = Big Tobacco
The Republican party again represents the corporate interest against the public interest. So what else is new?
just moronic
Tax the twinkies!! There are way more fat people than smokers and their health costs are going to really bankrupt the health system. Type two diabetes from the age of 12 and heart disease by age 20.....tell me who we are really spending all those health dollars on. Fat people. Tax em!! Tax em hard!!
Even at 60 cents a pack, Virginia would have the 13th-lowest levy in the nation. The additional tax, Kaine said, may spur some smokers to quit.
If government wanted people to quit smokeing they could easily achieve that by banning all tobacco products. However, their goal is to get more money to waste out of a "parirah" class of citizens. If all smokers did quit due to this extra tax then where would Kaine get his extra 334 million.
i'm glad to see
Del Melvin show so much concern about the cuts that could keep Portsmouth from winning the crown of welfare capitol of the east coast.
Gas tax for budget woes
About now an increase in the gas tax would solve all our money problems and could be used on a sliding scale as needed; to kick in when all else fails!
alcohol is taxed
Comparing alcohol and cigarettes is fallacious. Alcohol can be enjoyed in moderation - and is by the majority of people who drink alcohol - without hurting anyone. In fact, most health studies show that drinking two alcoholic beverage a day is a benefit to cardiovascular health. There is not, however, any safe or healthy way to use cigarettes. Additionally, I can sit next to you and drink a beer and there is zero health effect to you, but you cannot sit next to me and smoke with no health effect on me.
Incidentally, alcohol is already heavily taxed in the Commonwealth. Liquor is taxed at a rate of $15.54 / gallon.
Look at the big picture
I know it sounds like $400 million cut to schools is an awful large amount. But that's taking the entire state into consideration. The state has about 1.1 million school age. That breaks down to a reduction of less than $350 per student.
BTW, if it's the english teacher sending home notes with grammar errors or misspellings that's a problem. Any other teacher only has to have knowledge of the subject they teach.