Virgina budget talks stall as lawmakers reach impasse

Mar 14, 2010 — The Virginian-Pilot

Julian Walker

Mar. 14, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- RICHMOND -- Legislators were hamstrung on a few budget issues Saturday night as they worked to hammer out a deal on what was scheduled to be the final night of the 2010 General Assembly session .

As The Virginian-Pilot went to press, impasses on how to repay the unfunded liability in Virginia's pension plan, the daily rate the state gives to jails to house prisoners, and college financial aid funding were among the items dividing legislative bargainers.

Those snags imperiled a planned conclusion today for the legislative session .

"This baby's rapidly heading south," Senate Majority Leader Richard Saslaw said late Saturday.

After weeks of strong rhetoric, officials had bridged many of their partisan and philosophical divides in an attempt to adopt a two-year spending plan that gives both Democrats and Republicans space to declare victory on their priorities.

But that doesn't mean the funding cuts aren't sharp.

Many of the actions legislators took to offset an estimated $4 billion shortfall are almost certain to be felt by local governments, schools and countless Virginians.

"There's no big winners when you're doing the cuts we're making," Saslaw, D-Fairfax County, said earlier Saturday.

Added Sen. William Wampler, a Bristol Republican: "I think we're way beyond who prevails. At the end of the day, it's all about trying to minimize and mitigate" the impact of the cuts.

The Senate was able to avoid deeper cuts to public education that the House had proposed and preserve money for early childhood education programs for at-risk youths .

The House was adamant that it didn't want to balance the recession-ravaged budget with a tax increase or an excessive hike in fees for government services . Early on, Republicans, including Gov. Bob McDonnell, rejected a proposal left by former Gov. Timothy M. Kaine to repeal the $950 million annual car-tax relief subsidies the state provides to localities .

The sides agreed on about $100 million in fee increases, less than one-third of the fees the Senate wanted, while the Senate agreed to build $50 million in unspent reserves into the plan.

The Senate agreed to give McDonnell about $46 million of the $50 million he requested in economic development funds to recruit companies and create jobs in Virginia.

The compromise also provides $7.5 million in the first year of the budget for the purchase of buffer tracts around Oceana Naval Air Station.

Cuts to libraries, the arts and public broadcasting were incorporated , but none of those programs had all of its funding eliminated.

Cuts to reimbursement rates for health care providers are factored in both years of the budget but could be negated if about $350 million in expected federal Medicaid dollars flow to Virginia.

The House was able to secure hundreds of new Medic aid waiver slots to allow the developmentally disabled to receive care in their homes.

Another House position the Senate adopted was to leave open over the next two years any judgeships that are, or become, vacant. That means eliminating funding for 19 bench openings, including three in Hampton Roads.

For government employees, the plan avoids furloughs proposed by the Senate.

Del. Kirk Cox, R-Colonial Heights, said the brokered deal is one both sides can live with. "If you'd told me on Jan. 5 that we'd have a budget with no tax increase, minimal fees and a reserve, I would have taken that and gone home happy," he said.

But even as lawmakers closed in on a budget accord, there were still visible tensions between the House and Senate, typified by the dispute over whether legislators would be paid for going into overtime.

The House opted to forgo the $135 per diem when it voted to extend the session for an additional day beyond the scheduled adjournment Saturday. The Senate declined to dock its daily pay of $169.

Newstex ID: KRTB-0212-42868666