Virginia lawmakers prepare billions in cuts

[Hannah Bell]

27 February 2010

On Thursday, the two chambers of Virginia’s General Assembly, the House and Senate, passed competing two-year budget proposals that will pose massive cuts to social spending in order to meet a $4 billion deficit caused by a sharp decline in state tax revenue.

Both versions contain draconian cuts to state spending on health, education, the arts, and pension contributions for state workers. Over the next few weeks the two bills will be reconciled and presented in final form to recently-elected Republican Governor Bob McDonnell.

The new cuts come after $7 billion in austerity measures enacted by the previous governor...

There are no substantive differences between the two bills. Both are predicated on the assumption that working class Virginians must foot the bill for the economic crisis. Both plans intentionally under-fund by about $500 billion, required contributions to the pension system for state workers.

The bill sponsored by the Democratic-controlled Senate raises $540 million through sales taxes and “user fees” on state services, including sales taxes on internet purchases and higher tolls for use of state courts.

Through these taxes — which target workers’ income — the Senate bill imposes “only” $700 million in cuts to social spending for the current year, compared to the $1.4 billion proposed by the Republican-controlled House.

No measures were included in either bill to raise taxes on corporations or high-income individuals.

According to the 2009 Forbes list of richest Americans, JUST FIVE VIRGINIA BILLIONAIRES HAVE A COMBINED NET WORTH OF MORE THAN $30 BILLION -- MORE THAN SEVEN TIMES THE STATE'S TWO-YEAR DEFICIT.

http://www.wsws.org/articles/2010/feb2010/virg-f27.shtml