Lynwood Lewis

"State budget news isn't good after finance meeting"

On Monday, Aug. 19, I traveled to Richmond for the 9:30 a.m. meeting of the House Finance, Senate Finance and House Appropriations committees meeting, which takes place each time this year to hear a report from the governor and the secretary of Finance on the state's revenue forecast.

As you might imagine, the news was not good. The drag of the national economy, which officially went into recession in December 2007, continues to affect the commonwealth's budget situation.

While our rate of unemployment, which has increased from 4 to 6.9 percent, remains one of the lowest in the nation, especially for large states, it is still having a significant and negative impact on our commonwealth's economy.

As of July 1 we ended the 2009 fiscal year approximately $300 million below the official revenue forecast. For fiscal year 2009, the state had a negative growth rate of 9.2 percent, which is the largest decline ever in the state's growth.

Projection going into fiscal year 2010 is for a $1.3 billion revenue shortfall. This coupled with the $300 million from fiscal year 2009 results in a $1.5 billion revenue shortfall. The governor has requested from all state agencies reductions at 5, 10, and 15 percent levels and will announce his proposals for the cut-backs to bring the state budget in line with revenues in early September. Virginia must have a balanced budget.

During this national economic crisis, Virginia, unlike most states, has not increased taxes nor delayed paying vendors, nor sold state assets for upfront cash. We have maintained our AAA bond rating from each major rating agency, one of seven states that can make this claim.

In addition over the last four years, we have been named the most business friendly state in America seven times. This has caused Moodys, the bond rating agency, to comment recently that "although Virginia's economy and budget have suffered in the housing downturn in a national recession, it has taken wide ranging action to maintain a sound financial position."

Further, according to Standard and Poors, our "... long history of proactive and conservative financial management and manageable debt burden" reinforced their high rating of our Commonwealth. CNBC, which recently named Virginia its top state for business in 2009, said "Virginia has what it takes to emerge from an economy turned upside down."

The shortfall projected by the governor is worst-case and any change should only be positive. The governor's advisory groups on revenue forecasts will reconvene in October and November to again review the revenue forecast. As Gov. Tim Kaine said in his remarks to the committees, "it is always an honor to serve, but it is particularly important to serve in the tough times when there are no easy choices."

After the governor and secretary of finance's presentations, the entire Assembly convened for a special session to help our Commonwealth attorneys deal with criminal prosecutions in light of the U.S. Supreme Court decision of Melendez-Diaz v. Massachusetts and also to provide compensation for Arthur Whitfield, who was wrongfully convicted of rape 22 years ago and exonerated by DNA evidence.

Locally, we have assembled stake holders on the wastewater issues from the federal, state, and local governments for an informational meeting on Sept. 9 in Onley. The meeting is designed to give local governments all the information relevant to decisions regarding wastewater. My office has worked in conjunction with the Accomack-Northampton Planning District Commission to bring about this all-day meeting.

Given the panel participants and the interest already shown, I am sure this will be a productive and informative session. Decisions made on wastewater management are extremely important to economic development and therefore it is especially important that adequate and complete information be provided to local government decision makers.

The summer continues to be a busy one. On Monday, I will be in Richmond for the Governor's Aerospace Advisory Committee meeting and on Wednesday and Thursday, I will be in Gloucester for a meeting of the Chesapeake Subcomm-ittee of the Agriculture, Chesapeake and Natural Resources Committee. In addition, I have been appointed to a study committee on woodwaste biomass, which will meet in September as well as a meeting of the Chesapeake Bay Commis-sion in Williamsburg.

It continues to be a privilege to represent the 100th District. I am on the Shore in Accomac full time and can be reached by mail at P.O. Box 760, Accomac, Va. 23301, by telephone 757-787-1094, toll-free at 866-787-1094, and by e-mailing me at Delllewis @house.state.va.us.