Assembly approves $70 billion Va budget

RICHMOND, Va. (WAVY/AP) - The General Assembly has overwhelmingly passed a new two-year budget that makes unprecedented cuts to state services and programs.

With little debate or dissent Sunday, the House approved a $70 billion funding plan with a 73-23 vote, while the Senate passed it 34-6, the last act of the 2010 session taken one day behind schedule.

The compromise budget cuts $250 million from public education, erases unpaid days off for state workers and slashes fee increases the Senate sought by 60 percent.

It also retains Medicaid reimbursement cuts of 7 percent by 2012 for hospitals, nursing homes, doctors and other health professionals unless Virginia receives $370 million in federal support for the program.

After months of wrangling the Virginia budget is on its way to be signed by the Governor.

"It's good to be done," said Delegate Paula Miller from Norfolk. "We've got a budget!"

With the state of the economy and staring a short fall in the face, there were a lot of tough decisions for law makers.

"I feel that we did a great job considering we were $4 million in the hole when we started and we managed to find the money," said Delegate Bob Tata from Virginia Beach.

Delegate Tata has been office since 1984. He says this budget was unlike any other.

"Oh yeah, it was terrible," Delegate Tata added. "We just scraped around until we could find the money."

Lawmakers from both the House and Senate we up late Saturday night hammering out the final details.

"We kind of had a little disagreement around midnight, but then we got it back on track and by one o'clock we had the deal," said Delegate Chris Jones from Suffolk.

"We are not going to be cutting sheriffs' deputies," Miller added. "We've brought down some of our reserve money which always makes you feel a little uncomfortable, but out state employees are not going to be getting furloughs."

One of the big sticking points in Richmond was the cuts to education.

"We were able to move money around so that the hit is not going to be so bad," Delegate Tata added.

"This is a dire situation," Delegate Jones said. "The economy has still not recovering like we would like. There were tough cuts to make."

The hope is the economy will improve and money can go back to areas where it's needed most.

Major features of Virginia's spending plan through 2012 that were in the approved budget:

TAXES AND FEES

Includes about $95.4 million in new fees, such as increases in the charge to file cases in General District and Circuit courts and a $10 increase in the fee to record a deed.

Retained 40 percent of the dealer discount, a small share of the state income tax merchants are allowed to keep for their trouble collecting and remitting the revenue, for about 94,000 of the state's smallest retailers. The budget as introduced recommended its elimination.

Sets aside $50 million to bulk up the state's Rainy Day Fund.

STATE EMPLOYEES

Eliminates a proposal to require current state employees to contribute toward the cost of their retirement, but requires new employees to pay 5 percent toward theirs. Allows localities to require employees to pay some of their retirement.

Converts the state-funded death and disability benefits program for state and local public safety officers into an insurance program.

Requires one furlough day for state employees in 2010, but none in the remaining two years.

Allows for a 3 percent bonus for state employees in 2011 if revenues exceed projections by $82 million.

PUBLIC EDUCATION

Cuts public schools by about $253 million, compared to the House's proposed $680 million in cuts and the Senate's $135 million.

Provides $29.5 million to reverse former Gov. Timothy M. Kaine's decision to freeze the local composite index, a formula by which state school dollars are apportioned to local districts, and provides $174.1 million to loosen the blow to those school divisions that would have lost significant funding because of the change.

Extends the life of school buses from 12 to 15 years, saving $9.7 million each year.

Allows localities to increase class sizes by one student.

Eliminates nearly $35 million in funding for staff travel, lease and rental fees and facility costs.

Restores $4 million in funding to keep open the Commonwealth Center for Children and Adolescents in Staunton, including $1.3 million for children who may transfer from the Southwestern Virginia Mental Health Institute's Adolescent Unit in Marion that will close.

Uses proceeds from the lottery to pay for summer school, some textbook purchases and other programs, and increases the amount likely to be available from the lottery by $5 million each year because of the addition of the Powerball game.

Reduces funding for public broadcasting, the arts and libraries by 15 percent.

HEALTH AND HUMAN RESOURCES

Reduces funding by $360 million over the two years, but anticipates being able to restore the cuts with federal stimulus money.

If federal dollars are approved, it would mitigate Medicaid reimbursement