I have to agree with Ross. The fact that a stimulus package from Washington is expected is no excuse to leave a gaping hole in the budget. In fact, the previously mentioned Richmond Times-Dispatch article estimates that the deficit in the state’s two year budget is $3.7 billion, a much larger hole than the revenue from the stimulus can boost us out of. Governor Kaine’s lack of concern is a distraction that does absolutely nothing to solve the problem at hand. Rather than using stimulus money to make up for budget shortfalls, the Virginia state legislature should take advantage of the opportunity to undertake worthwhile investments.
One problem with the state government’s failure to balance the budget is that it makes it difficult to justify the cuts the state has already made. For example, how can the state take millions away from University funds in the name of necessary budget cuts when its lowered revenues have not been offset? Even with the national stimulus package, some government programs will have to be nixed; yet others will persist. Normally, financial obligations would serve as an understandable rationalization, but the Old Dominion’s absence of budget management creates an unfair standard.
According to an article in the Virginian-Pilot on February 17th, the expected stimulus relief “will pay for about $800 million in state Medicaid obligations and provide about $200 million for use as lawmakers see fit.” The cash influx from Washington will do little to help the average Virginian economically. Instead, the majority of the money will just go to expanding entitlement programs that are eating up the state’s funds. Soon after the stimulus cash is gone, the state will have the same old financial obligations, and those who received money before will be expecting their checks.
The majority of the stimulus money given to states comes with restrictions and has many intentions, one of which is to create jobs. The federal government’s cash distribution will fail unless states contribute their discretionary grants to further national objectives. Not that the categorical grants have been designated wisely (the Virginian-Pilot article reports that $38 million of the state’s stimulus money must be used to subsidize day care), but it’s better than nothing. Using this opportunity to pay off budget shortfalls rather than invest in jobs and infrastructure will do next to nothing for Virginians. It will only delay the day when the real cuts have to be made. That money from Washington did not appear out of thin air. The Virginia government just swiped the credit card and sent the bill to future taxpayers like you and me.

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