Senate Finance Committee discussing bailout impact and revenue projections

Sitting right now in the Senate Finance Committee as they discuss the state’s budget.

Looks like the federal stimulus is going to “restore” cuts to public education and public safety. So, don’t expect all the budget cuts made earlier by the House to remain. Therefore, what we’re probably about to see is more spending in our budget…not continued fiscal discipline.

$46.2 million “unappropriated” in the non-General Fund.

$2.6 million restored for clean water.
Southeastern Virgina Training Center funding restored.

Lots of funding restorations based on the federal government decision to stimulate our economy. Right now, there is a presentation going on regarding how this money will be spent which includes a litany of spending projects.

Here is a summary of the federal stimulus package.

The major issue is the “flexible” portion of the stimulus bill. This is money, from what I understand, that is mandated to be spent in order to receive it.

Regarding early release eligibility on the governor’s 90-day release…exclude violent offender or drug dealers – both current and prior offenses.

$38 million allocated to public safety from the federal funding.

What is effectively going on right now are amendments to the Senate budget are being presented by the various finance sub-committees. I have not heard one word spoken about cutting something different to make up for the increase in spending being restored by the federal government.

Looks like money for nothing. So, how does this actually reduce the deficit?

If two weeks ago, we were working on cutting spending for a deficit of $3.2-3.7 billion, which, with revised revenue predictions from the governor, was going to blow up to nearly $4 billion…but with the federal stimulus money was supposed to bring it back to $3.2 billion or so, how can we possibly be restoring funding without cutting somewhere else, regardless if spending is mandated by the federal government?

Amendments all adopted in a block. Unanimous. Will be reported to the floor.

Developing…

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About the author

JR Hoeft

Conservative to the core; liberal with his opinion! J.R. has been involved in politics for over a decade and has worked on several campaigns in Hampton Roads. He has served on the Executive Committee of the Republican Party of Chesapeake and the Central Committee of the Republican Party of Virginia. He is also the director of “Blogs United” in Virginia. E-mail J.R.. Follow J.R. on Twitter.