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Thursday, February 18, 2010

Budget cuts will hurt… A LOT!

Virginia faces a MASSIVE budget shortfall and there are only three ways to fix it: cut spending, raise taxes, or do a combination of both.

Former Governor Mark Warner faced a similar budget shortfall, although not as severe, during his term and he picked the third option. He called it tax reform which sounded more palatable than a tax hike. But don’t be mistaken. It was the largest tax increase in Virginia history.

Still, then-Gov. Warner did a lot of cutting as well. Only, his cutting was easier than what we face today. Virginia was coming out of the rip-roaring ‘90s when revenue was growing and we didn’t have to worry about shortfalls. So, the cuts in the early part of the last decade were a little easier. Our leaders chopped more fat and it didn’t hurt quite as much.

Former Gov. Tim Kaine cut billions more from the budget during his four years in office. His cuts were more painful. But, he balanced the budget without raising taxes.

And that brings us to today. The commonwealth faces a 4-billion dollar budget shortfall over the next two years. Governor Bob McDonnell and most Republicans in the General Assembly have pledged not to raise taxes. Period.

So, after 8 years of chopping away at the budget, our leaders have to come up with another 4-billion dollars. That’s why the cuts proposed by Gov. McDonnell Tuesday sounded so drastic. He called for HUGE cuts in public education, 2 weeks of furloughs for state workers, closing some state parks, and deep cuts to health and human services.

What are the implications of all this? Pain. Pain every single Virginian will feel in one way or another. And this isn’t a critical assessment of the Governor’s proposed cuts. At this stage, no cuts will be easy. No matter what our leaders ultimately decide to eliminate or reduce, it is going to hurt.

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