A Flood of Budget Amendments

by Dick Hall-Sizemore

Well, Gov. Youngkin has not carried through on his veiled threat to veto the entire budget–yet.

Instead, he has proposed more than 230 amendments that would get rid of the expansion of the sales tax to digital services that the General Assembly passed, along with an extra $1 billion in expenditures that would have been funded with that additional revenue.  (Source: Cardinal News.)

To really get a sense of what new spending he is proposing to reduce or eliminate, one would need to laboriously construct a detailed spreadsheet or database. I will wait for the analysis that the staff of the money committees produce. They are likely working on it now.

Two quick observations:

1. Sen. Scott Surovell (D-Fairfax), the Senate Majority leader, in responding to the governor’s actions, relied on a common misconception regarding the Virginia budget. Worrying about packaging amendments that cut revenue with amendments that change spending, he speculated, “You’ll end up having a constitutionally unbalanced budget, which would be illegal.”

Contrary to popular belief, there is nothing in the state constitution that requires the General Assembly to pass a balanced budget. What the constitution does is put the responsibility on the governor to execute a balanced budget. Article 10, Section 7 requires that the “Governor, subject to such criteria as may be established by the General Assembly, shall ensure that no expenses of the Commonwealth be incurred which exceed total revenues on hand and anticipated during a period not to exceed the two years and six months period established by this section of the Constitution.”

It would politically irresponsible and risky for the General Assembly to pass a budget bill that was purposely unbalanced, but there is no constitutional prohibition on its doing so. The constitution does require, however, that the governor clean up whatever mess the legislature may create by doing so. (This is one of the many things that Ric Brown, the long-time deputy director and director of the Dept. of Planning and Budget and Secretary of Finance, taught me.)

2. I am so glad that I am retired and did not have to experience the grueling hours that the DPB staff had to put in over the last few weeks to develop these amendments.


Share this article



ADVERTISEMENT

(comments below)



ADVERTISEMENT

(comments below)


Comments

24 responses to “A Flood of Budget Amendments”

  1. Stephen Haner Avatar
    Stephen Haner

    We avoid the fun stuff. We won’t have line vetoes of the tax provisions, which could then spark a court case on the one-object rule. A firm court opinion could rein in the nonsense of burying bills and tax hikes in the budget.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      Dispite the disruption it would cause, I would like to see such a court ruling.

  2. LarrytheG Avatar
    LarrytheG

    Wouldn’t an “unbalanced” budget cede to Youngkin where the cuts would have to be made? Or not?

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      Yes, it would.

    1. Nancy Naive Avatar
      Nancy Naive

      Youtube is getting aggressively ad-ish.

  3. Eric the half a troll Avatar
    Eric the half a troll

    Related, Youngkin vetoed SB14 which allowed voters to tax themselves locally to build new schools. Another top-down one-size fits all Conservative move…

    1. Rafaelo Avatar

      Ohio requires voters approve school taxes. Generally the voters don’t vote to tax themselves. “Only six of the 36 Ohio school districts asking for a tax increase in last month’s [March 2024] primary election got it,” according to Ohio digital media outlet, the News-Herald. Youngkin did our schools a favor. Direct democracy? No. Madison time and time again, proven right about that.

      1. LarrytheG Avatar
        LarrytheG

        all things equal – should local voters decide to pay for new schools?

      2. Dick Hall-Sizemore Avatar
        Dick Hall-Sizemore

        How did he do the schools a favor? School taxes in other states are totally different from Virginia. The operating costs of schools are funded through a combination of local revenues (property and sales taxes) and state aid. Many smaller and rural localities cannot afford major school renovations or construction without significant increases in the property tax.

        The first county to gain authorization to increase the sales tax with the additional revenue devoted to school construction was my home county, Halifax, a very conservative place. The leaders had reached a consensus that the high school needed replacement or major renovation. The cost would be in the $80-100 million range. At the request of the county, their delegate, a Republican, introduced legislation to enable the county to increase the sales tax, if approved in a referendum. The bill passed and the subsequent referendum passed with a 70 percent vote. https://www.halifaxvirginia.com/news/528-voters-say-yes-to-sales-tax-increase-in-halifax-county

      3. Dick Hall-Sizemore Avatar
        Dick Hall-Sizemore

        How did he do the schools a favor? School taxes in other states are totally different from Virginia. The operating costs of schools are funded through a combination of local revenues (property and sales taxes) and state aid. Many smaller and rural localities cannot afford major school renovations or construction without significant increases in the property tax.

        The first county to gain authorization to increase the sales tax with the additional revenue devoted to school construction was my home county, Halifax, a very conservative place. The leaders had reached a consensus that the high school needed replacement or major renovation. The cost would be in the $80-100 million range. At the request of the county, their delegate, a Republican, introduced legislation to enable the county to increase the sales tax, if approved in a referendum. The bill passed and the subsequent referendum passed with a 70 percent vote. https://www.halifaxvirginia.com/news/528-voters-say-yes-to-sales-tax-increase-in-halifax-county

    2. Nancy Naive Avatar
      Nancy Naive

      Uh, women’s healthcare? Oh, state’s right not locality’s rights (god help us, no individual rights)

    3. Randy Huffman Avatar
      Randy Huffman

      He vetoed legislation allowing for a sales tax increase, so its not really a tax on themselves, as anyone traveling through would pay the tax. I didn’t realize nobody could build schools up to now without an increase in sales tax. Nothing stops them from increasing property taxes, correct?

      Youngkin did issue a statement which I read in this publication:

      https://www.smithfieldtimes.com/2024/04/09/youngkin-vetoes-bills-proposing-1-sales-tax-option-to-fund-new-schools/

      Anyway, this could very well be over-riden per this article.

      1. LarrytheG Avatar
        LarrytheG

        the local voters should be able to decide how they want to pay for a new school without permission from the State IMO.

        What is the legitimate reason the state would interfere?

        1. Randy Huffman Avatar
          Randy Huffman

          I’m not going to intensely argue your point, but Sales tax is a State based tax, so the State has to administer it. Kinda funny though calling this interference, Democrats are usually the ones doing all the interference with our lives.

          I see Youngkin vetoing it as a stand against more taxes, and stand in principal that I understand and generally sympathize with.

          1. LarrytheG Avatar
            LarrytheG

            Similar to the meals tax where local voters can approve or not. And the State already allocates sales
            taxes to the locality anyhow. This is just an add-on to existing sales taxes.

            It’s not principled, Randy. This is purely a local decision which it ought to be and they ought to
            have the ability to decide what methods to use to pay for a local need.

            “interference” from the Dems? in what way?

            The govt did want to institute a tax on digital sales, right, his proposal.

            In the bigger/larger scheme – does a given tax provide benefits to society? It’s not like they
            institute a tax then the money goes into a vault or into some illegitimate purpose.

            taxes do pay for things that benefit citizens whether it be highways, police, schools, fire/rescue, health care, etc – even things like 911!

            I no more like paying taxes than most others do.. I absolutely hate paying income taxes , real estate and property taxes… and I sometimes do question why those without kids have to pay for the education of those with kids. My mother-in-law wanted to stop paying taxes for education after her kids had been educated, of course!

          2. Randy Huffman Avatar
            Randy Huffman

            You do understand Youngkin was bundling together a cut in income taxes to go hand in hand with the digital sales tax, right?

            Democrats over regulate and involve themselves in our lives all the time, pure a simple. The only case where I see Republicans fall flat on their face is in abortion, otherwise, it is usually the case where Republican’s are the pro choice party, and Democrats, well, telling us what we can and cannot do. I’m heading out to a Jefferson Council event where I will see Jim Bacon, I will tell him hello for you!

          3. LarrytheG Avatar
            LarrytheG

            Was his cut in income taxes targeting the folks who would be most impacted by it?

            Let’s see… the GOP involved in book banning, transgender, higher ed DEI, etc, etc… right?

            I’m glad Bacon has found his calling… but has strayed way far from the original focus of BR IMO.

          4. Randy Huffman Avatar
            Randy Huffman

            So progressives say book banning. Conservatives say books with inappropriate material for the ages involved including a number with highly sexual material. I honestly don’t know for certain who is more accurate but have seen plenty of stories with readings of pornography to school boards who made them stop because it was a public hearing.

            One thing is certain, it only involves books in school or public settings. So that by itself disqualifies the assertions of book banning, families can go get the books themselves .

          5. Marty Chapman Avatar
            Marty Chapman

            exactly!

          6. LarrytheG Avatar
            LarrytheG

            Who decides “appropriate”? The govt? Who decides what can be in schools? The government? Top down ? Another example of GOP approaches to govt?

  4. Lefty665 Avatar

    Ric was a gem. Virginia was profoundly fortunate to have him.

Leave a Reply