7/7/14, 10:55 AMRevenue shortfall could be more than $100 million larger - Richmond Times-Dispatch: Richmond News, Crime & Politics

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Revenue shortfall could be more

than $100 million larger

Brown hopeful deficit remains $350M-$400M

Posted: Thursday, July 3, 2014 10:30 pm

BY MICHAEL MARTZ Richmond Times-Dispatch

A difficult budget year ended for Virginia onMonday night, but concerns remain aboutfalling revenues that a key legislator warnscould result in additional budget cuts ontop of the $1.55 billion already set aside inthe current two-year spending plan.

“We could be looking at another $100million to $200 million in the biennium,”House Appropriations CommitteeChairman S. Chris Jones, R-Suffolk, saidThursday.

Secretary of Finance Richard D. “Ric”Brown said he remains hopeful that therevenue shortfall for the just-ended fiscalyear will remain in the $350 million to$400 million range he estimated lastmonth.

“I think it’s in the range of what we said,”

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Del. S. Chris Jones, R-Suffolk, left, chairman of theHouse Appropriations committee speaks to HouseMajority Leader M. Kirkland Cox, R-Colonial Heights,right, as the members deal with gubernatorial vetos tothe budget bill at the State Capitol in Richmond, VAMonday, June 23, 2014.

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7/7/14, 10:55 AMRevenue shortfall could be more than $100 million larger - Richmond Times-Dispatch: Richmond News, Crime & Politics

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Brown said Thursday.

The questions likely will be answeredsoon, as the state makes its finalaccounting of the fiscal year that endedMonday and prepares to formally certify arevenue shortfall by the middle of nextweek.

The certification by Comptroller David A.Von Moll will trigger a revenue reforecastthat Gov. Terry McAuliffe’s administration

already has set in motion by scheduling a meeting of the Joint Advisory Board ofEconomists on Wednesday.

The board will set an economic forecast that the administration will use to reviserevenue projections for the biennium that began Tuesday and will extend throughJune 30, 2016.

Those projections will be reviewed by the Governor’s Advisory Council on RevenueEstimates on Aug. 1 and the administration expects to release a new forecast Aug. 15in a joint meeting of the Appropriations and Senate Finance committees.

Senate Finance Chairman Walter A. Stosch, R-Henrico, said Thursday he had notseen the latest revenue estimates for June after one of the worst May revenuecollections in state history.

However, Stosch said he is confident that the assembly accounted for the full revenueshortfall when it revised the two-year budget last month to set aside almost $900million in spending and reserve about $705 million from the state’s RevenueStabilization or Rainy Day Fund.

“If it were any more than what we budgeted, I would be surprised,” he said.

But Jones and House Appropriations Director Robert P. Vaughn said the state endedMay down by almost $395 million or about $45 million more than the assemblyanticipated in revising the budget.

That shortfall in the last fiscal year would translate to an additional $90 million less inthe budget year that just began and an additional $45 million in the next year, theysaid.

House budget officials also fear the shortfall will be deeper yet when the statecompletes its accounting of revenue collections in June.

“We were break-even at best,” Jones said.

Vaughn and Jones said revenues appeared to be down by an additional $20 million inJune, based on daily deposits on Thursday. Any additional shortfall would have a

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7/7/14, 10:55 AMRevenue shortfall could be more than $100 million larger - Richmond Times-Dispatch: Richmond News, Crime & Politics

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ripple effect through the current two-year budget.

With the Rainy Day Fund already tapped to capacity, “any additional shortfall would be100 percent in cuts,” Vaughn said.

Brown said it is too soon to draw those kinds of conclusions as electronic depositsmade Monday, the final day of the last budget year, continue to enter the stateTreasury.

“We’ve got another day’s worth of deposits before we get to the cutoff,” he saidThursday.

Brown said he doesn’t see a major swing, up or down, in June collections, with somesources of revenue, such as court recordation taxes, still uncounted.

“It’s going to be down to the wire,” he said.

mmartz@timesdispatch.com (804) 649-6964

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Frank Papcin · Top Commenter · Norwalk State Technical Collegepeople--peopledon't you remember being reminded that people were doing things then to avoid taxes this year?--lots of money last year.-=-at the expense of this year's budget?--REMEMBER?

and what does this second fundraise do the second he takes office?

gives away millions of taxpayers moneypledges millions more for pet projectsthen cries about not having enough money for the things we need, --of course forcing him toraise taxes---blaming it on the republicans--AS USUAL--isn't that the normal procedure of anydemocrat in power.blame anyone except themselves?--these buildings?--who is getting the jobs?-- are they politically correct?--union workers?--whois getting what from whom?--questions our governor wants the correct answers to before hegives any approval to.--we are in the world belonging to OBAMA and the democrats now--

thanks to some republicans that know how to win--when it soothed them.Reply · Like · Follow Post · July 4 at 6:59pm

Dee Pisciella · Top Commenter · Retired IT at Virginia Information Technologies AgencyStosch is a smart guy. He knows what they should have done vs what they really did to balance

Details

Mark Warner has supported Harry Reid "downthe line." — Ed Gillespie

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On a balanced budget amendment. — MarkWarner

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After Massachusetts passed a mandatoryhealth insurance law "their mortality rate wentdown...it saved lives." — Dave Marsden

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7/7/14, 10:55 AMRevenue shortfall could be more than $100 million larger - Richmond Times-Dispatch: Richmond News, Crime & Politics

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Stosch is a smart guy. He knows what they should have done vs what they really did to balancethe budget. Call me suspicious, but I bet there's a hidden story here. The General Assembly isnot inclined to do the hard work with the budget, but instead does one step solutions likeborrowing from the rainy day fund, failing to pay bills (like kick the can down the road) and somekind of across the board cuts. They never seem to be able to really look into what we don't needto have anymore and keep the pork flowing, so I'm at a point of getting some people in officewho can handle money. If we keep getting into trouble every year, isn't it time to get newleadership voted in? Wouldn't you fire a financial advisor who kept losing money for you? What'sthe real story here? RTD, really go look this time. And then they didn't want the billions of taxmoney we all contributed to so we could insure the less fortunate. That was all political and notabout Virginia's needs to lower health costs. Start with Stosch, talk to Ric Brown, talk to theGovernor. RTD, what's the rest of the story?Reply · Like · · Follow Post · July 4 at 10:06am2

Dee Pisciella · Top Commenter · Retired IT at Virginia Information Technologies AgencyRTD, did the General Assembly pay the $100 million they owe the VRS from Governor McD'snotorious failure to pay $1Billion in owed retirement benefits so he could claim he balanced thebudget? He promised to pay it back with 7% interest over 10 years starting when he was nolonger in office. Were other budget tricks tried this year? What's the real story on how theybalanced the budget for 2014-2016 so we voters can decide whether or not they are even close?It's a novel idea called "investigative journalism".... let us know the whole truth so we can voteaccordingly in November. Thanks!Reply · Like · · Follow Post · July 4 at 9:59am

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Pat HiottThat is one bill that will go unpaid. Because current and past state employees arealways at the end of the money line. I remember Wilder's comment "better be gladyou have a job" Reply · Like · July 4 at 10:39am

Dee Pisciella · Top Commenter · Retired IT at Virginia Information TechnologiesAgencyAs a retired state employee, I'd say no by voting that attitude out of office. We havethe power, we just don't show up and remind them, except for Eric Cantor's demise.Reply · Like · July 4 at 10:59am

Dee Pisciella · Top Commenter · Retired IT at Virginia Information TechnologiesAgencyPat Hiott Pat, that means they are growing a hole in the budget because the bill is stilldue. And Diane Cantor headed the VRS (and this RTD newspaper) when that dealwas struck with Governor McD.Reply · Like · · July 4 at 11:01am1

Ron Melancon · Top Commenter · Consultant at Ann Grace & Co.and our shot sighted political leaders gave a welfare check to the cheap green people who can'tpay the 60 dollar hybrid tax. It just gave away 10,000,000 listen up people...when you get moreand more pot holes look no further than the political leaderders who caved to 5,000 cheappeople who feel that they can get a free ride. When these cars use electric only they do not pay aroad funding fee period. Then as more and more Illegal children come into Virginia our school budjets are going to getmessed up.....our children will be subject to higher health care cost....because these children arenot up to date with vaccines...then they are placed into class rooms that because of theStandards of learning.....they are going to hold back the rest of the class.....then is it no wounderthat people are pulling their children out of public schools and starting to home school them? Ifthis keeps up...public schools will become a free lunch and free schooling and day care forillegals children and the other parents who can't take it anymore will find private schools, charterschools, and home schools....Why does it have to come to this? Our School Budgets cannot take all of the influx.....Reply · Like · Follow Post · July 4 at 8:10am

Dee Pisciella · Top Commenter · Retired IT at Virginia Information TechnologiesAgencyRon, somebody had to immigrate so you could be here today. We paid for youreducation. Kids don't decide to immigrate unless there is serious danger in their owncountry. Remember what our relatives saw as they approached our country...“Giveme your tired, your poor, your huddled masses yearning to breathe free.” We literallyinvited immigration. If we took you in, we can take kids in our schools. I'd pay more intaxes for schools with none of my kids in school today. After tens of millions came in,it's time to drop the illegal status and find a way to make them taxpaying "legal"citizens. You cannot rebuild a Berlin Wall in Mexico... Reagan got them to tear it downso Germans could immigrate and be free. Why do you want to build another one? Reply · Like · · July 4 at 10:21am3

7/7/14, 10:55 AMRevenue shortfall could be more than $100 million larger - Richmond Times-Dispatch: Richmond News, Crime & Politics

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Dee Pisciella · Top Commenter · Retired IT at Virginia Information TechnologiesAgencyVaccines are required in schools...but there is danger if people decide not tovaccinate for whatever reason. That's a problem that is not connected to immigration.Many home schoolers are not vaccinating too. Kids will get sick now, I agree. We willget sick too.Reply · Like · · July 4 at 10:24am1

Dee Pisciella · Top Commenter · Retired IT at Virginia Information TechnologiesAgencyAnd regarding electric cars, it's critical we get off of oil for a lot of reasons. We are oildependent here because of politics. I, for one, am tired of sending our kids overseasto protect our oil interests. So many people driving those huge SUVs and Trucks thatbeg the question of how many gallons per mile instead of how many miles per gallondo you get. We are a selfish people who want somebody else to solve the problem,so we can continue to do whatever strikes our fancy, like driving a huge gas guzzlingcar. Instead of charging a hybrid a fee, how about charging a tax if your car doesn'tmeet a miles/gallon minimum? We could save our military, we could end ourdependence on oil and we could finally stop the fatal SUV vs compact hybrid fatalaccidents.Reply · Like · · July 4 at 10:32am1

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