On Kaine's agenda: Balancing the state budget

RICHMOND

Gov. Timothy M. Kaine, who describes himself as a "problem solver," is facing a real poser.

Virginia's budget is $2.9 billion short. The governor, in his State of the Commonwealth speech at 7 tonight, will ask the General Assembly, which convenes today, to approve his tough plan to cut money for public schools, colleges and health care, in addition to doubling the cigarette tax.

The recession appears to be deepening, however, and many legislators think the budget hole will be at least $3.5 billion, an estimate Kaine does not dismiss. The full damage will be known the first week in February, when Kaine's financial advisers will reassess revenues.

Also unknown is how much Virginia can expect from an emergency federal stimulus plan being prepared by President-elect Barack Obama. Kaine expects that Congress will approve a detailed plan by early February.

Kaine, entering the final year of his term, discussed the state's outlook during an interview Monday with The Virginian-Pilot. He also talked about his close relationship with Obama and his appointment by the president-elect as chairman of the Democratic National Committee.

Here are excerpts:

Is your projection of a $2.9 billion shortfall rosy?

There are some Republicans who say we should be even more pessimistic and take it down to $3.5 billion or $4 billion. But why lay off more people that I need to just to be on the safe side? Because I do have executive tools where I can lay people off.... I can reduce any line item by 15 percent if revenues are short. So I thought the better thing to do, instead of going overboard on layoffs or safety net cuts, is to hit it right where the numbers said, and then come back if need be."

On Virginia's financial situation:

"What we're seeing is, the sales tax revenue has been below our projections but income tax revenues have been more than our projections, and we have seen that all the way up through the end of November, and it has continued in December. We have not yet seen the net job loss that other states have seen. We're still growing jobs, but anemically."

On his proposal to save money by allowing some nonviolent felons to leave prison 90 days before their sentences expire:

"You talk about jail overcrowding. I started to ask my team, why do we have this debate every year?... This 90-day provision will really help us deal with the state responsibilities.... Just that simple move from 30 to 90 is the equivalent of about 1,000 inmates a year in the system."

On his decision to become DNC chairman:

Kaine said once Obama offered the job, he thought about the issues for which the state is seeking federal help: keeping the carrier named for former President George H.W. Bush ported in Norfolk, cleaning up the Chesapeake Bay and getting infrastructure money and funds to extend rail to Dulles International Airport.

"One of the things I thought about is... I've got infrastructure. I've got at least four issues right now where I am heavily hoping on a great executive response, I don't think I should say no.... There is no downside to Virginia for me to have an even closer working relationship with the president."

What is your agenda as DNC chairman?

"My thought is I have three jobs. My first one is to positively advance his (Obama's) agenda.

"My second role will be carrying the banner of the proud party and in carrying it trying to do it like we've done in Virginia. I always give away all of my trade secrets in saying that the reason we've been successful is that we've tried to be problem-solvers and unifiers. Ideological stuff with wedge issues, with stuff that is overly partisan, we don't do that. We don't do the negative stuff, either."

"The third thing, which in some ways is the most exciting at the party is, the 50-state strategy was a smart thing. We're not going to be a regional party. We're going to play everywhere. And the Obama campaign took it to a completely different level: small donors, volunteers, engaging people in novel ways. So the question is, 'Can you engage people in novel ways not just during election cycles but in policy creation and social change?' "

Warren Fiske, (804) 697-1565, warren.fiske@pilotonline.com