Va.'s $77B budget spared major cuts, Assembly adjourns

RICHMOND

The General Assembly adjourned Saturday night after approving a trimmed $77 billion state budget that was spared drastic cuts by emergency federal money.

Lawmakers left the Capitol relieved that they had avoided reductions proposed two months ago in education, health and public safety. They also realized that if the economy doesn't improve in two years, when the federal windfall begins to run out, a day of reckoning will come.

"I intend to sit down and call all of the members of the local governments that are in my district and explain to them that they need to start making some plans," said Sen. Fred Quayle, R-Suffolk. "We're not going have this stimulus money forever, and there are going to have to be some major changes made in how all governments do business."

The 46-day session produced one landmark piece of legislation: a ban on smoking in most restaurants and bars that long seemed unthinkable in Virginia, whose economy relied on tobacco for almost 400 years.

For the most part, however, the session was about money. The sinking economy left Virginia a record $3.7 billion short of revenue needed to balance its two-year budget. The blow was softened by a critical $1.5 billion being pumped into state coffers by the federal stimulus plan approved by Congress last month.

State agencies will absorb funding cuts of 5 to 7 percent, almost certainly forcing cuts in state government's 100,000-member work force, although it is uncertain how many.

The stimulus money, however, allowed lawmakers to avoid many of the painful cuts proposed in December by Gov. Timothy M. Kaine.

It erased plans to lop $365 million from public schools, cut $127 million from colleges, and trim the budgets of sheriffs and other constitutional officers by 5 percent or more. It provided money to pay for $962 million in state obligations for Medicaid over the next two years.

"So if anybody wonders whether the stimulus package mattered, whether the recovery package mattered, 7,100 people are going to have jobs with state government, continue to serve others and not be out on the streets in the midst of the worst job market this country has seen in the last quarter century," Kaine said.

Kaine is chairman of the Democratic National Committee and a close ally of President Barack Obama, the leading force behind the federal recovery plan.

Virginia became the first state to pass a spending plan since the $787 billion stimulus cleared Congress. Without debate, the state Senate approved the budget, 35-5. The House endorsed the plan, 90-8, but not before spirited partisan debate over the true value of the federal windfall.

All eight senators and 16 delegates representing South Hampton Roads voted for the budget.

"Thank the Lord, what the stimulus plan represented for us was salvation," said Del. Kenneth Plum, D -Fairfax.

Several Republicans, echoing the words of their GOP brethren in Congress, faulted the stimulus with creating massive federal deficits, enlarging government and short-changing activities that will spawn jobs.

"When I heard of the federal stimulus plan, I thought it would be a plan to bring people back to work," said Del. David Albo, R-Fairfax. "What it has become is a big spending plan.... My 3-year old son will be paying this back."

Despite his complaints, Albo voted for the budget and acknowledged it would be impractical to turn down the federal cash.

"I cannot refuse the money from D.C. when my constituents are paying for it," he said.

Del. Albert Pollard of Lancaster was the only Democrat to oppose the budget, saying it underestimates the state's financial woes.

"I cannot vote for a budget that we're going to have to come back and cut again in a few months," he said.

House and Senate budget writers reached agreement minutes before midnight Friday.

Staff members worked through the night producing a 200-page bill that legislators could vote on in time to keep their self-imposed Saturday deadline for adjournment.

Several details about the agreement emerged Saturday. The budget includes money to renovate the Southeastern Virginia Training Center in Chesapeake, home to 163 mentally disabled people.

Lawmakers agreed to convert it to a 75-bed facility and create community-based homes that will accommodate 130 other patients.

The budget saved Commonwealth Challenge, a National Guard program based at Camp Pendleton in Virginia Beach that helps train high school dropouts for college, work and the military.

The Senate Finance Committee had recommended eliminating all $1.1 million in state funding for the program.

Many lawmakers left Richmond pleased with their work, citing the budget and the smoking ban. Several delegates said there was little partisan rancor in their chamber even though all 140 House seats are up for election this fall.

"It was a very constructive session, and people worked together," said Del. John Cosgrove, R-Chesapeake.

Pilot writers Dave Forster and Julian Walker contributed to this story.

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