Del. Ken Plum: Budget Surprise in a Time of Need

Del. Ken Plum/File photoThis is an opinion column by Del. Ken Plum (D), who represents Reston in Virginia’s House of Delegates. It does not reflect the opinion of Reston Now.

A combination of an economy producing much more strongly than expected during the pandemic and a frugal state budget in anticipation of a revenue shortfall combined with several federal programs sending enormous amounts of cash to the states has resulted in Virginia having a strong cash position–possibly the greatest ever. Some choose to call the available cash a surplus, but I think a much more accurate term to describe it is an unappropriated balance. The amount involved is more than four billion dollars!

Using the term surplus implies to me that the needs of the state have been met and that there is money left over. As I indicated above, the existing state budget was put together with a very conservative estimate of tax revenue based on a contraction in the economy. Programs were minimally funded or needs were not addressed in order to ensure that the budget would be balanced at the end of the year as constitutionally mandated. Likewise, the availability of cash flowing from the federal government has been much greater than ever before with an expectation that even more dollars will be coming to the states.

With the numerous challenges facing government in general it is reassuring that the availability of funding will not be as great an issue as it has been in recent years. The list of unmet needs for those who view government’s role broadly can be reduced by the available cash. For others, the availability of cash in government coffers raises the prospect of tax cuts. The incoming governor has indicated that he favors tax cuts. Virginia’s tax rates are among the lowest in the country and should a policy of tax reductions be pursued it should be targeted to those with the lowest income.

Certainly tax revenues should never be allowed to exceed the wants and needs of citizens for government services. When there are dollars available the question becomes one of giving monies back to citizens in the form of tax reductions or rebates or using it to provide needed services. Cutting taxes is an approach that is appealing to most politicians and is one that I think should be pursued when it can be done responsibly. In Virginia at this time I believe there are too many unmet needs to be doing anything in the budget other than providing funding for programs and services that have been needed but unfunded for years.

There is a waiting list estimated at over 12,000 individuals who qualify for assistance because of a developmental disability, but that list is reduced by only a few thousand persons per year with the need growing faster than programs or services to meet them. There is a wide disparity of funding across jurisdictional lines for public education even though there is a composite index that is supposed to smooth out the differences. The lack of equity in funding among counties and cities is unjustifiable as are the differences across colleges and universities. In coming columns, I will be discussing other unmet needs. It is not possible to have a budget surplus when there is so much left to be done!

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