Virginia: Week-long time-out in budget deadlock (conferees to meet Wednesday)

Richmond Times-Dispatch ^ | March 22, 2004 | Michael Hardy, Jeff Schapiro

[cogitator]

Cranky lawmakers went home last night for several days of rest and recreation, still stumbling toward springtime reruns of their standoff over the Virginia budget.

In their eighth day of overtime, the Virginia Senate and the House of Delegates again clashed over competing spending plans but nonetheless readied to renew negotiations toward a compromise.

[cogitator]

WashPost basically says the same thing:

With Budget Still Undecided, Va. Legislators Take a Break

Excerpt:

House Republicans have said they plan to launch a public relations offensive during the break to generate opposition to the Senate's tax increases. Lawmakers will attend community meetings, participate in radio interviews and give speeches to groups in their districts. In addition, anti-tax organizations plan newspaper ads, phone banks and other campaign-style tactics.

The coalition assembled by Gov. Mark R. Warner (D) to promote his tax and budget plans will respond with television, radio and newspaper ads. Warner will barnstorm the state starting Monday at an Alexandria firehouse.

But the clock is ticking for the legislators.

The General Assembly has never gone this long without approving a budget, and some government leaders predict dire consequences if the stalemate lasts much longer.

Moody's Investor Services, a Wall Street firm, has said it will not wait forever to decide whether Virginia retains its AAA bond rating. The loss of that designation would lead to higher borrowing costs and a psychological blow to the state's reputation of fiscal integrity.

[society-by-contract]

My email to Delegate Brad Marrs:


Hi Brad,





Keep fighting the good fight with the Senate. When the Senate suggests raising the sales tax, you should suggest abolishing it altogether. When the Senate suggests raising the income tax, you should suggest abolishing it altogether. When the senate suggests raising the tobacco tax, you should suggest abolishing it altogether.



A wise man told a friend of mine (edit: it was brad):



“there are folks who think the state should only defend the shores and deliver the mail and even some who would prefer to leave such things up to private enterprise”



Count me in the later.



Good Luck sir!







Brady Campbell

Richmond, Virginia





www.lysanderspooner.org

[cogitator]

Good letter! Out of curiousity, what will you suggest Delegate Marrs do if Wall Street lowers Virginia's Triple-A bond rating?

[familyofman]

"....what will you suggest Delegate Marrs do if Wall Street lowers Virginia's Triple-A bond rating?"

We probably wont have to wait too long - Wall Street hates uncertainty & will work on their own schedule. I'm surprised they haven't lowered it already.

[cogitator]

Wall Street hates uncertainty & will work on their own schedule. I'm surprised they haven't lowered it already.

The Washington Post article makes an allusion to that effect. It sure would be a wake-up call for all parties concerned if they went ahead and did it. The immediate aftermath of finger-pointing would be amusing, were it not for the financial considerations involved.

[society-by-contract]

Out of curiousity, what will you suggest Delegate Marrs do if Wall Street lowers Virginia's Triple-A bond rating?

I would suggest that the state not borrow one red cent (reducing the budget by half would be another good move).

[cogitator]

I would suggest that the state not borrow one red cent (reducing the budget by half would be another good move).

Unfortunately, I doubt that Wall Street, not to mention any of the Virginia state representatives (delegates or senators) would consider your ideas fruitful. But good luck anyway.

[familyofman]

Having been the buyer of municipal bonds for over 30 years, I can only state my own opinion. My opinion is, the bond rating of VA debt instruments (from the commenwealth on down to local BANS, TANS, & RANS) are all going to be downgraded. The downgrade will be severe - from AAA to less than A. No actions by the legislature at this point will stop that.

The mess created of persistent deficits rests with our current legislature and prior govenors who acted on poltical whim rather than good conservative principal of balanced budgets and fiscal responsibility. Trying to put off action in favor of a referendum is the dumbest idea I have ever heard of for an elected body. If the elected reps can't do what they have to do & resort to referendims - they should resign & go home. What a bunch of wusses!!! Hiding behind the "will of the people" rather than doing what they were elected to do.

[society-by-contract]

Unfortunately, I doubt that Wall Street, not to mention any of the Virginia state representatives (delegates or senators) would consider your ideas fruitful.

There is no question that those who benefit from the state's largess, such as legislators and money lenders (what economists call rent seekers), would not embrace reducing the size of the state.

[cogitator]

The mess created of persistent deficits rests with our current legislature and prior govenors who acted on poltical whim rather than good conservative principal of balanced budgets and fiscal responsibility.

A definite "reap what you sow" outlook. We're hitting the same crunch here in Maryland, for the same essential reasons. That's why it's interesting to me to watch the Assemblies grapple with similar problems and similar clashes of philosophy, though the political alignments of the governor and Assembly are reversed.