Governor Hands New Democrat Legislature a $200M Blank Check
Today, Governor Northam presented his 2020-2022 biennial budget to the joint “money committees,” whose membership and priorities will look a lot different beginning January 8th (the first day of the 2020 Session) when Democrats assume control of the General Assembly. The News Release for Governor Northam’s proposed biennium budget calls it “the most progressive in Virginia’s history,” and given the billions of dollars in new spending – paid for through tax increases of all kinds – that’s a fair description.
For starters, as a reward to Democrat lawmakers who now control the majority in both chambers of the state legislature, the Governor announced he was setting aside $200 million for them to spend however they wanted (presumably to issue handouts for Leftist causes and supporters). But the primary focus of the Governor’s budget proposal was to significantly increase spending on public pre-K, K-12 and community college education, expand government-managed healthcare, and vigorously fight against “climate change.”
In the spirit of Senators Bernie Sanders and Elizabeth Warren, the Governor is proposing a $145 million “free” college program called “Get Skilled. Get a Job. Give Back.” (“G3”), which seeks to make associate degrees at Virginia’s community colleges “free” for students willing to go into certain high-demand fields. Del. Mark Cole (R -88, Spotsylvania) last week likened this proposal to “indentured servitude for community college tuition,” and believes that while the proposals focuses on the right fields of study, it will be too expensive since “Nothing is free. Somebody somewhere is footing the bill for it.”
The proposed budget also includes an increase of $1.2 billion for K-12 public education spending, which is one of the largest investments in K-12 public education ever proposed in Virginia. Some of the provisions included in this massive education spending plan include: $145 million for a 3% teacher salary increase beginning 2021 (after receiving a 5% salary increase just last year); $99.3 million to increase the number of counselors at every grade level; $10.6 million more to pay for student meals; and $808.5 million to reevaluate education benchmarks and update programs and procedures.
In addition to the increased K-12 spending, the Governor is also proposing $94.8 million on early childcare and learning programs for three and four year olds, establish uniform accountability standards, and train more workers. This is clearly designed as the first major step towards mandatory universal pre-K education in Virginia.
The Governor intends to pay for this additional spending by establishing a new tax on currently unregulated [so-called] “games of skill” gambling machines, which have been popping up in convenience stores and bars all across Virginia by the thousands in the past year. These gambling machines are now eating away at Lottery profits that are supposed to be used to fund the state’s public education system. But one thing that shouldn't be overlooked is that by taxing these machines, the Governor is implicitly declaring them to be legally viable entertainment when many believe state law prohibits them. If the Governor’s plan stands, it means these gambling machines will become a permanent fixture in Virginia communities and the revenue gained will only guarantee the government continues to prop them up.
The Governor’s budget would also establish a new state-run healthcare marketplace option (i.e., “reinsurance program”) for workers without employer-based healthcare, instead of Virginia’s current participation in the federal marketplace. He plans to pay for it with a 30 cent per pack increase in the cigarette tax. Ironically, this tax increase is also intended to drive down cigarette usage, which the Governor says is costing the state far too much in healthcare expenses and is the leading cause of preventable death in Virginia (apparently overlooking the thousands of unborn children killed every year by abortion).
To address the state’s transportation needs, the Governor wants to overhaul the current funding model by: 1) eliminating the state vehicle inspection requirement; 2) cutting the automobile registration fee in half, and 3) increasing the gas tax by around 20 cents per gallon over the next four years, and then tied to inflation after that. According to the Governor, this is a more “equitable” method because “those who drive more should pay more.” But the reality is this will only hurt middle and low-income people who commute to work every day and can’t afford newer and more expensive fuel efficient vehicles.
In a response to the Governor's budget proposal, Majority Leader Todd Gilbert (R-15, Woodstock) also pointed out how the Governor removed a critical tax-relief program passed last year in response to the Wayfair case that paved the way for taxation of online purchases. "But going further to repeal a fund specifically designed to bring tax relief to Virginians passed just last year is disappointing," said Gilbert.
The Governor’s spending package also includes $12.8 million for government-run home visiting services for new mothers, $63 million more for subsidized and “free” housing; and many expensive projects in the name of addressing the supposed threat of “global warming.” And it also includes $1.2 million for additional staff to implement the new policies of the newly created Office of Diversity, Equity and Inclusion.
These are just some of the priorities the Governor is planning to spend your tax dollars on over the next two years, but there are sure to be more hidden programs. We will be reviewing the Governor’s proposed budget for other items such as increased spending for Planned Parenthood, and we encourage you do the same. You can review the proposed biennium budget HERE.
We also encourage you to contact your legislator and tell them to reject unnecessary and harmful tax increases and government programs that take more of your money that you can better allocate yourself.
