State Senator Ralph Smith delivered an on-point memorandum last evening detailing the failed revenue forecasts of state finance officials that Gov. Tim Kaine inexcusably relied on when ramming through his latest budget. Because of these shortfalls, Smith is now calling on Kaine to cut spending and reduce government waste.
Despite warning after warning to Kaine by Smith, Sen. Wampler, and others, Kaine used forecasts thinking private sector pay would increase by 10% by 2010; not only is that forecast woefully inadequate, but new forecasts for 2009 also show earnings will fall short and that sales tax revenue is going to miss the mark.
This leaves the budget in a lurch as 70% of state revenue is collected from income and sales taxes.
“I hope the Governor will now understand Senator Wampler’s January warning that ‘It’s a lot easier to avoid making new spending commitments than it is to cut spending after the fact,’ wrote Smith. “The Governor will now have to make difficult decisions that he dodged earlier.”
Smith called for the governor to work with the General Assembly between now and the beginning of the next session to seek out ways to improve government efficiency and reduce wasteful spending.
“It is my hope that if this unfortunate situation continues, good can come from Richmond finally recognizing the need for greater efficiency in government,” wrote Smith. “I hope [the governor] will consult with the General Assembly and make reasonable decisions targeting the inefficiencies that frustrate citizens every day.”
Riley places partial blame for this debacle [1] on potential Democratic LG candidate, Secretary of Finance Jody Wagner, to which DJ piles on [2], suggesting that Bowerbank might be their better choice after all.