Category: Government Finance
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What? No Amendments Permitted to a $4.3 Billion Budget Bill?
by James C. Sherlock Del. Luke Torian, D-Woodbridge, the Chair of the Appropriations Committee in the House of Delegates, has announced that there will be no member amendments allowed for the budget that the governor sends down during the upcoming special session. Three things about that: Torian is the king of budget amendments. Look at…
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Richmond Schools’ Flawed Data Threatens Federal Funds
by James C. Sherlock The massive flows of federal and state funding to local school districts are based largely on data reported by the schools to their districts, the districts to the Virginia Department of Education (VDOE), and VDOE to the U.S. Department of Education. In Fiscal Year 2018, the U.S. Department of Education sent…
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What to Do with Virginia’s Pile O’ Money
by James A. Bacon Virginia is expected to close out the year with a $2 billion budget surplus. An estimated $900 million is required under the state constitution to go into a rainy day reserve fund. That leaves roughly $1.1 billion for the next General Assembly and Governor of Virginia to play with. According to…
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State Revenue Up a Full Third in Northam Years
by Steve Haner With one month to go in its fiscal year, Virginia has almost met its General Fund revenue target in the first eleven months, as the revenue bonanza described here before continues. Partly it is due to the strong economic recovery post-COVID, but it is also due to numerous increased tax rates or…
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Virginia Local Ability-to-Pay Calculation and State Contributions to Public Schools — Some Surprises
by James C. Sherlock Some things are very important that the average citizen knows little to nothing about. For example, a complex state computation, the Composite Index of Local Ability to Pay, determines how much state money per student goes to your school district to maintain an overall state ratio of 55% state and 45%…
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The One-Sided Decision in the Reversion of Martinsville – the Start of a Trend?
by James C. Sherlock The Martinsville Bulletin, perhaps the best remaining newspaper in the state for local coverage, published a must-read article on the reversion of Martinsville from city to town and joining Henry County. Overview Martinsville’s current city logo, above, was perhaps prescient. Martinsville has been hemorrhaging population, losing more than 18% in the…
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Layne Going to the Dark Side
I do not know if this is good news or bad news for Jim Sherlock’s campaign, but Aubrey Layne, currently the Secretary of Finance, will be joining Sentara on July 1. (This is about the time during an administration that Cabinet members start jumping ship.)
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Protect Taxpaying Virginians From Coming Inflation
by Steve Haner First published this morning by the Thomas Jefferson Institute for Public Policy. One of big financial winners with the May 1 Virginia minimum wage increase is the state itself, because the entire raise is subject to a 5% state income tax. With its low standard deduction and personal exemption amounts, Virginia squeezes…
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State Tax Harvest Under Northam Expands Again
by Steve Haner With the release today of the April 2021 Virginia state revenue report, a correction in an earlier post becomes necessary. Overall general fund state tax collections are not up 26% so far compared to four years ago, they are up almost 30 percent. Corporate income tax collections are not up 68%, but…
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TCI Debate Rages in Comments on Proposed Rule
by Steve Haner The political wannabes in both parties and the state’s media are continuing to ignore it, but the argument over the proposed motor fuel carbon tax called the Transportation and Climate Initiative rages in comments on the proposal flowing into its advocates. The Thomas Jefferson Institute has also launched a short video (above),…
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Corporate Tax Already Exploding in Virginia
by Steve Haner First published this morning in The Roanoke Times. With Virginia’s fiscal year now three-quarters complete, and basically one year since the depths of the COVID-19 recession, state tax revenues are soaring. Despite reports that the boom results from the economic rebound, it remains clear that changes in tax policy under Governor Ralph…
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Will Virginia COVID “Rescue” Be Big and Bold or Come in Dribs and Drabs?
by James A. Bacon About two weeks ago, Secretary of Finance Aubrey Layne floated a trial balloon on Bacon’s Rebellion, suggesting that Virginia do something “transformational” with the $6.8 billion the federal government is showering upon Virginia in the latest COVID-relief package, the American Rescue Plan. Transformational? Like what? Like patching up Virginia’s under-funded unemployment…
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May Day Brings Virginia’s Labor Revolution
by Steve Haner Four major changes in Virginia’s labor laws delayed at the beginning of the COVID-19 recession will all take effect May 1. All were approved by the 2020 General Assembly once Democrats controlled both legislative chambers and then delayed at the 2020 Veto Session. May Day 2021 is almost here. Minimum Wage. The…
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Virginia Will Mandate and Hold Retirement Savings
by Steve Haner Next week’s reconvened General Assembly session will decide whether only full time employees of Virginia’s small businesses will be pushed into a new state-sponsored retirement savings plan, or part-time workers will join them there.
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Unthinkable–a Tax Decrease!
By Dick Hall-Sizemore According to a report in the Virginian –Pilot, the city manager of Virginia Beach will be recommending that city council reduce the city’s real estate tax rate. He is also recommending that the city delay a previously approved storm-water fee increase. Last year, the city cut $67 million out of its operating…