Capitol bustles with budget deliberations

RICHMOND

House Republicans gathered behind closed doors for a longer-than-usual caucus meeting to discuss the state budget Tuesday morning as a 138-page report from a fiscally conservative advocacy group recommending deep spending cuts circulated on Capitol Square.

Meanwhile, Gov. Bob McDonnell continues to spend "about half of my time" with top advisers and lawmakers crafting ways to plug Virginia's $4.2 billion shortfall.

And in the Senate, grandstanding from Democrats and Republicans on budget-balancing that has punctuated several recent floor sessions was absent from Tuesday's proceedings.

The atmosphere is tense three weeks into this year's General Assembly session as legislators, lobbyists and interest groups wait to see how painful the cuts will be and where they will be felt.

"We'd be crazy if we weren't concerned," House Majority Leader Morgan Griffith, R-Salem, said Tuesday evening about the budget situation.

Griffith and other Republicans declined to discuss what was said at the morning caucus, which lasted roughly two hours. Typical caucus meetings run 30 minutes.

The two-year budget left by former Gov. Timothy M. Kaine combines $2.3 billion in cuts with a proposal to repeal the state's car tax subsidy to localities and replace it with an income tax surcharge.

Because the House rejected the income tax plan - McDonnell also opposes it - lawmakers are left to find an estimated $2 billion more in cuts.

"Obviously, there are going to have to be some significant cuts in areas that people don't normally like to see cuts in - health care and education," McDonnell said recently.

One possible way to get there is the plan from Americans For Prosperity, which proposes an additional $3 billion in reductions beyond Kaine's budget.

Several House members said they are aware of the plan, though none said they'd seen it. The document is slated to be unveiled at a news conference to day. McDonnell spokesman Tucker Martin on Tuesday said the administration doesn't have a copy but "looks forward to reviewing it."

The package was compil ed by AFP state director Ben Marchi, who served on McDonnell's transition team; the group's national president, Tim Phillips of Northern Virginia, is a close McDonnell ally.

Martin said the transition team included everyone from Democrats to AFP members, many of whom have offered budget suggestions that are taken into consideration.

But it won't necessarily get a more thorough review because of who created it, Martin added.

Also being considered during the administration's budget analysis are the series of fees Kaine embedded in his proposal.

Some of those have received a chilly reception from House Republicans, but they haven't been entirely dismissed by the McDonnell administration.

More budget clarity might not arrive until the House and Senate make public their proposed amendments later this month.

And while those plans are almost certain to be divergent, Sen. Chuck Colgan, D-Prince William, said experience has shown him an accord eventually will be reached.

"When we get to the end, the issues will be solved," said Colgan, who has been in the General Assembly more than three decades.

Julian Walker, (804) 697-1564, julian.walker@pilotonline.com