Hard Times

Hard Times honors one of my personal heroes, Studs Terkel, who passed away earlier in the month.

Robley Jones sent out another Budget-gram today...For those who follow the budget, the news is rather ominous. Folks, the budget shortfall in Virginia keeps growing. Back in the summer, it was predicted to be $1 billion. Then it eeked-up to $2.5 billion. Now..$3.2 billion. I've even heard whispers of more earth-shattering deficits. Times remain serious and uneasy.

Here's the full text of Rob's letter today:

The two day Senate Finance Committee Annual Retreat immediately followed the House retreat. This time the setting is the Fredericksburg Hospitality House Conference Center.

Four straight days of reports of doom and gloom have me paring my Christmas list.

Chairman Colgan’s opening remarks were shocking and courteous. Shocking in that the size of the budget hole has grown to $3.2256 billion. The Chairman was courteous in his emphasis on a desire for a bipartisan approach to the crisis. In my time as your lobbyist, exceptional individuals have chaired this most powerful committee in the Virginia General Assembly. Colgan maintains the high standard set by Andrews and Chichester.

Staff analyst, Becky Covey, said we have been in a “slow motion recession – probably since the beginning of 2008.” She asserted that, “A deeper recession lasting several quarters in now the likely scenario.”

When the discussion shifted to education, Education Committee Chairman Edd Houck pointed out that, “There really has not been a percentage change for K-12 since 1998. It has remained basically constant.”

What was most interesting is that staff presented the Compound Annual Average Growth from FY1998 to FY2010. Listed were the state programs that increased more than the 5.85% annual growth in revenue. What follows in a list of the programs and their growth:

Car Tax 14.7%
Child Support Enforcement 13.9%
Debt Service 11.0%
Comprehensive Services Act 10.2%
Aid to Localities – Police Dept. 9.8%
Indigent Defense 9.2%
Medicaid 7.5%
MHMR Grants to Localities 7.0%
Student Financial Aid 6.6%
Total General Fund Budget 6.0%

Why isn’t education on the list? The compound annual average growth of public education’s share of the budget was less than that of the growth of the budget – despite enrollment growth, expansion of pre-school programs, and new burdens on public schools such as NCLB. The growth for public education was slightly less than 5.85%. This refutes the claims of our enemies that education spending is out of control.

Given the size of the budget hole, there appeared to be consensus among those present to cut public school funding. VEA will fight cuts, but if they must be made, we will fight to make them temporary rather than permanent, with an eye on restoration of funding as we come out of the recession. We will also work to ensure attention to pupil equity.

Cuts presented to the committee included increasing class size, decreasing state support for school employee health care insurance costs and reducing the state share of SOQ funding from the current 55%.

In contrast with the House, the Senate seems willing to look at the revenue side, possibly revisiting recent tax cuts, to lessen the severity of the cuts to public education. While support for permanently reducing state support for public education seems broad in the House, the Senate leadership is resistant to that method of addressing the current budget shortfall. Hopefully, the Governor will align himself with the Senate in this regard.

Please encourage any non-members at your school join us. it's not too late. While we can't guarantee a future job, we can guarantee support and strength during these difficult times.

Thom