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Appropriations amends state budget for 2010-12

Higher education to remain free from cuts until 2012; committee hopes to avoid increasing taxes

The House Appropriations Committee released its amendments to the state budget for fiscal years 2010-12 Sunday. The amendments reflect Gov. Bob McDonnell's desire to minimize higher education cuts during what the governor has called "the most difficult budgetary period in modern Virginia history."

The Committee recommended that no further cuts be made to higher education during fiscal years 2010-12 because of cuts during the previous biennial fiscal year, House Appropriations Committee Chairman Lacey Putney said.

"As I look back at how we balanced the 2008-10 biennial budget, what stands out the most is that approximately one-third of the budget, which would include public safety and higher education, has seen cumulative reductions of nearly 20 percent with higher education alone taking reduction nearing 30 percent," Putney said. "Funding status of higher education now stands at the 2006 level."

Because the state will receive funding from the federal stimulus only through fiscal year 2011, though, the state must plan for a reduction in funding starting in 2012, Putney said. This reduction will equal about $150 million, he said.

Higher education was not the only issue debated by the Committee. Other priorities included restoring the car tax, rejecting higher taxes and eliminating the fees that former Gov. Tim Kaine introduced earlier in the budget amendment process. The House of Delegates unanimously rejected Kaine's proposal to increase the state income tax by 17 percent last month.

"This key vote made clear our shared commitment to approving a state budget that will hasten economic recovery without exacerbating the tax burden on Virginia's taxpayers, working families and job-producing small businesses," Putney said.

Both the Committee and the governor expressed a desire to avoid tax increases, yet the state must face its $1.9 billion deficit to balance the budget.

"In my 49 years as a member of the House, I have not seen a budget situation this bad," Putney said. "While Virginia is faring much better than just about any other state, the stark new economic reality is that the commonwealth's projected general fund revenues for the next two years will be at the level of 2006."

Legislators can no longer rely on easy, one-time fixes for these challenges, he said.

"Though we certainly did not seek these circumstances, we must seize this opportunity to enact sensible, long-term structural reforms in state spending that can make the best state in America even better," he added.

Meanwhile, McDonnell stressed the importance of job creation and economic development.

"I am optimistic that the Senate will also support these smart investments in Virginia's economic future as the budget process continues," he said.

Isaac Wood, assistant communications director at the center for politics and former Cavalier Daily opinion columnist, noted that legislators must soon come to a compromise of these different priorities.

"It's a tough year to be a legislator in Virginia, and I think it will be very interesting to see not only what's come out of both committees," he said, "but what the compromises will be between the Senate and the House and the governor."

Leaders of the majority parties have made most of the decisions in the past, Wood explained. Now, everyone is "keenly aware of the fact that both Democrats and Republicans will have a seat at the table when the final budget is decided," he said.

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