There's no question we're in the midst of a major bust cycle in the economy. With hard times come hard truths: the money supply isn't infinite, and sacrifices must be made across the board. This principle should apply just as much to government as it does to private businesses and citizens. While the Obama stimulus plan will afford Virginia additional revenue, this should be used to help close the already outstanding $3.2 billion hole in the state's two-year budget. Recessions should serve as stark reminders that we need to be frugal, not as opportunities to excuse growing deficits.
Compiling debt is a bigger problem at the federal level than it is at the state, largely due just to the sheer scale of government at that level (and thus proliferating deficits that are largely financed by foreign governments). Nevertheless, balanced budgets are important for anyone, and for good reason. A budget shortfall is nothing more than deferred taxation. This might not sound too daunting, but it has a certain significance. Carrying debt requires the payment of interest, which naturally compounds over time and grows more burdensome with increasing deficits. Interest expense is the Fed's third largest expenditure in the federal budget.
From a legal standpoint, Kaine's decision is also dubious. Currently forty-three states require their governor to submit balanced budgets to the legislature. While federal money will implicitly resolve the present shortfall, it is not a good faith effort by our state to rely solely on this money to cover the difference. This holds especially true in light of the $3 billion-plus still outstanding from the current budget. Revenue is harder to come by these days, but this is only reason to examine our spending habits more closely.
I recognize the excruciating difficulty that goes into making cuts. Salaries are reduced or held steady, people lose jobs, and programs are suspended. All of these are terrible consequences and everyone's heart goes out to those who face a tough road ahead. The problem is this: if we don't impose disciplined spending now, we all will pay for it down the line. More jobs and economic growth will be sacrificed in the long-run, leaving everyone worse off. The market mechanism underscores a reality that our government must accept. Everything has a cost, and deferring payment includes its own price as well. Doing this with the mentality that recessions justify ignoring underlying economic realities will only compound our problems. Who can afford that?

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