The Virginian-Pilot
©
RICHMOND
Preliminary figures showing Virginia with a $220 million revenue surplus at the close of the just- concluded fiscal year is a "ray of good news" for the state, according to Gov. Bob McDonnell, who nonetheless cautioned that "we have challenging times yet ahead."
Virginia is in that position for the fiscal period that ended June 30 largely because of better-than-expected collections of individual and corporate taxes - two revenue streams prone to fluctuate with the economy.
Ending ahead, McDonnell said, will enable the state to put about $22 million into a state water quality fund for Chesapeake Bay cleanup efforts, provide an extra $18 million to school divisions, and deposit at least $20 million into the state's transportation trust fund.
An additional $82 million will cover the cost of providing a 3 percent holiday bonus to state employees this December. Administration officials said they will decide in the coming weeks how any leftover balance will be spent.
Despite the encouraging news, the state's fortunes haven't returned to pre-recession levels. Overall, Virginia still experienced a revenue decline in fiscal year 2010. It just didn't lose as much money as had been previously forecast, hence the surplus.
"I'll say to my fellow citizens, we are not at all out of the woods in this unprecedented economic downturn," McDonnell said Wednesday.
He remains concerned about deep spending cuts in the current two-year budget, rising Medicaid costs, and unemployment that remains high. Also, by next year, Virginia will have exhausted most of its federal stimulus money, creating more strain on its budget.
While McDonnell touted the surplus as a credit to his administration's disciplined approach to finances, he acknowledged that the budget also relied on some accounting maneuvers. Among the strategies: postponing a scheduled payment into the state retirement system and giving employees a furlough day in May that saved the state $9 million.
Still, there are signs of returning economic vitality.
McDonnell boasted that roughly 72,000 jobs have been added in Virginia on his watch. He's scheduled to discuss that in more detail today.
Julian Walker, (804) 697-1564, julian.walker@pilotonline.com
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$220 Million Surplus
If someone would follow the money trail, one would more than likely find that a good chunk of that surplus comes from the kickbacks being paid to the state, from prison profits. The telephone companies that exclusively service the numerous correctional facilities across the state have a monopoly on the telephone companies that service them.
Some of these companies charge up to $18.00 per call! Each call is 15 minutes long. How many calls a month can you afford at these rates? Some may not think about it, until it hits them, but it could easily happen to you too!
What about the Canteen/Commissary providers to these same facilities? These prices are outrageously overpriced, and being resold to prisoners that make as little as 35 cents per hour! These people are fed the absolute minimum required, and are seriously underfed. To have a few comforts in their misrable days, costs a mere fortune, or should I say, costs their families a mere fortune.
There are many good people locked up for non-violent crimes, that are being extorted by the state in long distance and canteen accounts to keep their loved ones cared for.
Suggestion: Let's send the Surplus to the prisone
Suggestion: Let's send the
Suggestion: Let's send the Surplus to the prisoners who help fund the great money machine of big business, and have no one speaking on their behalf. Prisoners have no voice, and are taken advantage of at every turn.
IMAGINE not being able to talk to your loved ones for months on end.
IMAGINE going to sleep at night being so hungry that your stomach churns.
IMAGINE just wanting to feel a family members arms around you, and barely remembering what it might be like.
IMAGINE just wanting to write a simple letter and no stamp to send it.
IMAGINE BEING LOCKED IN A 6' X 8' cage, like an animal, for a non-violent crime for more than a decade...
We as a society should require a better solution. Media hype and nightly propaganda about "drug free zones" has obviously not reduced crime in Virginia Beach, yet our jails and prisons are 50% over safe conditions, so that a prosecutgor can have a claim to fame???
As a supposedly educated, civilized compassionate society, we must ALL be mentally ill to let these conditions persist in our once great country! CLEAN HOUSE THIS ELECTION VIRGINIA BEACH!!! Our future depends on it!
I'm outraged
that they would allot 82 milltion for a bonus for state employees when teachers have had our salaries frozen for the third year in a row! Virginia used to be (and might still be) among the ten richest states in the union but were 38th and dropping in rate of teacher pay. And yet Governor McDonell continues the trend!
Virginia Teacher Pay Actually Ranks About 25th in the Nation
According to the National Education Association Rankings of the States 2009 and Estimates of School Statistics 2010, (http://www.nea.org/assets/docs/010rankings.pdf),the estimated average salary of teachers nationwide is $55,350. The estimated average salary in Virginia is $49,999. Using the Estimated Average Teacher Salary for 2009-10, the 3rd column from the right of Table G on page 92, you will find there are 25 states with estimated lower average teacher pay than Virginia. These are the NEA's numbers! I suggest you do your homework and check them yourself. Over 1,000 people lost their jobs when International Paper shut down. You have your job, your benefits, your retirement. Be thankful. Just recently a Daily Press Editorial reported federal, state, and local pension funds face trillions in shortfalls. Google it. Taxpayers are at a breaking point. I appreciate the hard work you do but, how can any pay raise or bonus be justified right now given the economy?
we seem to forget the purpose of government
Ken Miller wrote a book called "We don't make widgets" that tries to explain the differences between businesses and government. The best line is that governments are in the business to provide a service; private businesses are in the business of making a profit.
People want and need services. As much as we want governments to be like businesses, they can't completely because the police still have to respond, the teachers teach, construction gets inspected, and roads paved.
The other little dirty fact is that most of the cost of providing the services we want and need is labor - employees (also called neighbors, friends, relatives).
Just remember when cutting services that you don't feel is important that someone is trying to cut the service that you want because they don't think that one is important.
HUH
Anyone other than me think that it is strange that everybody is FINDING money? VDOT and now the state of Virginia...was it lost or did someone look at the books again...people need to be held accountability for their actions this really is....
Not finding
They aren't really "finding money." Ya see, first they do a proposed budget, which is a estimation. Then later, they look at the books to figure out the actual and see what the difference is and where it's at. This surplus indicates that our people are usuing their brains. They estimated conservatively, in cause things didn't go so well. If they didn't do so, the article would read that we are in the negative from where we were estimated to be.
Got it?
what
about some real road repairs around here, not just crappy patches, there has been none for years, no bonuses in this economy
some how I agree
I do feel enough waste is every where. But how can encourage state workers to keep ther eye on the money bag if no reward is given.
We pay them yes. But as with most companies a good job gets a reward. We could be billions in debt like ca, ny, il and many others and they would be cutting and asking for more and more. Thank your lucky stars. If your boss gave you a bonus does he advertize it and it can from profit. So i guess he over charges all of us to give you a bonus. Move to CA or ny and see what happening. VA is a very low tax state nothing is free. breaking even 220M out of billions is not allot.
an easy
An easy way to fund the retirement system is to lay off another 30% of state workers.......across the board, trim the fat, sloth, and waste.
Cut the number of government workers sucking the life blood out the citizens or get voted out of office.