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by
Clayton Roberts
Virginia
state legislators earned high marks from the
Virginia Foundation for Research and Economic
Education for their performance on a wide range of
business issues in the 2002 General Assembly
session. They clearly understand how traditional
business issues affect the economic vitality of
the Commonwealth.
However,
the positive overall ratings mask a failure to
adequately address Virginia’s severe, long-term fiscal crisis. Adequate
state investment in core government
responsibilities such as education,
transportation, health care, public safety and
other essential public services continues to fall
well short of urgent, clearly identified needs.
The
legislature has failed to address Virginia’s structural fiscal imbalance in two ways:
First,
the biennial budget adopted this year attempts to
deal with the widely discussed multi-billion
dollar general fund shortfall for 2002-2004, but
does nothing to address the state’s structural
budget deficit of many more billions in annual
funding needs beyond the current biennium.
Second,
the current biennial budget pushes problems and
critical infrastructure investments into the
future, using one-time revenue fixes, raiding the
state pension and other dedicated trust funds,
slashing funds for critical health care needs, and
shifting the revenue burden to localities and
college students.
It ignores the need to facilitate future
growth and economic opportunity for the next
generation of Virginians.
Narrow,
short-term solutions to broad, long-range problems
point either to a decided lack of vision or an
unwillingness to execute the tough decisions that
will be necessary to secure Virginia’s potential.
The
most telling evidence of the Legislature’s
failure is its resort to regional referenda to pay
for transportation, a basic government
responsibility.
While the business community actively
supports referenda in Hampton Roads and
Northern Virginia
, we view this approach as poor governance and a
shirking of responsibility. Legislators have
passed the buck to the electorate.
Regional referenda are necessary only
because of the state’s failure to meet its
obligations.
It
is time for Virginia’s elected leaders to adopt and implement a
far-reaching strategic plan for Virginia’s future prosperity.
This plan must be courageous, ambitious,
innovative and visionary.
It must serve as a blueprint for budget and
policy decisions in the years ahead.
A comprehensive strategy and plan of action
are needed now to move Virginia
lawmakers beyond their quick-fix approach to
serious structural imbalances in state revenue and
funding priorities.
Without
it, businesses will look elsewhere, prosperity and
job growth will slow, state revenue will languish,
and Virginia’s fiscal crisis will become even more acute.
--
July 29, 2002
Clayton
Roberts is president of the Virginia Foundation
for Research and Economic Education (FREE), an
independent business association committed to
protecting and strengthening Virginia’s
prosperous business environment through the
political process.
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