Virginia’s Incredible Money-Spending Machine

by James A. Bacon

Spending by Virginia’s state government isn’t just increasing — spending is increasing at an accelerating rate. The current budget biennium (fiscal 2021-22) and the next (fiscal 2023-24) will have seen the two biggest spending increases of the past nine budget cycles. 

Assuming no modifications to the next biennial budget’s spending totals submitted by former Governor Ralph Northam, the combined General Fund and Non General Fund budgets will have increased 123% in the 17 years between fiscal 2007 and 2024.

(For purposes of comparison, the increase in the Consumer Price Index was 40% between 2007 and 2022. The state population increased 8.2% between 2010 and 2022. Spending has been increasing at roughly double the rate of inflation and population growth.)

Here is the increase in biennial budgets compared to the previous biennia:

2009-10: 4.5%
2011-12: 6.9%
2013-14: 8.3%
2015-16: 12.2%
2017-18: 8.6%
2019-20: 10.6%
2021-22: 17.1%
2023-24: 16.4%

So, what does Virginia get for its taxpayers’ money? We did get Medicaid expansion, which in theory should bring about an improvement to healthcare outcomes for lower-income Virginians. Unfortunately, mortality statistics have been so scrambled by the COVID epidemic that is impossible to know if that massive spending increase made a measurable difference or not.

What else have we gotten for our tax dollars? Better schools? To be sure, our schools have been more aggressive about implementing intersectional social-justice theory. But, sadly, education achievement as measured by standardized test scores has been a disaster.

Better public safety? Not in the past two years! Murders have surged and social order is deteriorating.

Better transportation systems? Hard to say. Traffic congestion has eased during the past two years. But it’s difficult to know whether to credit state-funded rail and highway transportation projects or the change in commuting patterns arising from the work-at-home trend.

Better colleges and universities? Quality has definitely improved if you appreciate the increased ideological purity and approve of the quashing of thought outside the social-justice paradigm. If you’re not into having your kids indoctrinated with left-wing dogma, as opposed to learning to think independently, then you might not be so happy.

A cleaner environment? Virginia has aggressively pursued a reduction in CO2 emissions (most of which it has achieved by replacing coal-fired electricity with gas-fired capacity). But how much of that gain, which supposedly benefits the world at large by making an infinitesimally small contribution to CO2 diminution in the atmosphere, comes at the expense of funding programs to clean the Chesapeake Bay, improve local water quality, and preserve wildlife habitat here in Virginia? Hard to say.

A more vibrant, dynamic economy? Virginia hasn’t seen a major economic-development success since landing Amazon’s East Coast headquarters four years ago. Virginia’s growth rate consistently lags that of the nation, and the state has shifted from being an importer of human capital (net domestic in-migration) to an exporter of human capital (net out-migration).

I feel the money being vacuumed out of my pocket, but I’m not feeling any benefit in return.

Virginia’s provincial political class, I’d conclude, is as intellectually bankrupt and incompetent as the cosmopolitan political class in Washington. Neither knows how to do anything but throw money at problems and line the pockets of noisy constituencies. Within living memory, Virginia was a strong state admired for its bipartisan cooperation, excellence of management in government, and vibrant economy. Today it’s mired in mediocrity and stagnation. What has all that state spending bought us? Not much that I can see.


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10 responses to “Virginia’s Incredible Money-Spending Machine”

  1. Moderate Avatar
    Moderate

    I don’t think it’s this simple. We need to consider more demographics, including how our population is aging. We need to look at what portions of the state budget are increasing. The last time I did that, it appeared that Medicaid was the fastest growing portion of the state budget because our population is aging.

    When you say Medicaid, most people think “trifling, unmotivated people who suck from others instead of standing on their own two feet”. Most don’t realize that care of our aging population is the root cause of the fastest growing segment of Virginia’s budget. They don’t accept that when seniors “spend down” or “transfer” their estates so they can qualify for Medicaid, they are trading their own responsibility for care by taxpayers. The workers in this industry are poorly paid and there are too few of them, especially after COVID.

    At points, the costs of running our prison system have steadily increased as we put more and more people behind bars with no hope of parole.

    Because these portions of the state budget are not totally within our control, folks tend to focus on things that are easier to control, trying to make them make up for those we can’t control.

    This discussion needs a much broader basis and much deeper consideration if we sincerely want to do something about the real issues before us.

    1. DJRippert Avatar
      DJRippert

      “The last time I did that, it appeared that Medicaid was the fastest growing portion of the state budget because our population is aging.”

      Wouldn’t that apply more to Medicare than Medicaid?

      Beyond that, why is our population aging? Are we aging faster than the US overall? Do our young people leave for greener fields rather than stay? If so, why?

  2. James McCarthy Avatar
    James McCarthy

    There’s also some lint vacuumed from your pocket which you also don’t feel. So long as you refuse to see any upside to increased spending, you will not. As noted by one poster, it ain’t all your tax money. Some state spending attracts new businesses. Other spending, e.g., for Medicare, does not produce an immediate return but represents to some degree the investment of the society sharing the common wealth. The raw numbers may be daunting and the object of skepticism. The state should develop more informative indices and metrics to justify its expense and income financials.

  3. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    First, theFY 2021, FY 2023, FY 2023 and FY 2024 totals include a lot of federal COVID money. That is one-time money that is still helpful .

    A significant factor in the increases in the current budget and the current fiscal year is salary increases for state employees and teachers. For state employees, this is making up for those lean years when, sometimes, there were no increases. However, perhaps you don’t think it is good for you or the state to have teachers and employees to have decent salaries.

    I could write a whole blog article on what you have gotten for this increase in state spending. Here are some off the top of my head:

    One of the best state park systems in the country
    In public safety:
    A new prison in Grayson County
    A statewide radio system for the State Police that enables troopers to communicate better with each other and with local police and sheriffs’ depts. (Millions and millions of dollars.)
    More state troopers

    In transportation:

    Completion of the Springfield Interchange project. Greatly improves flow of traffic in that area.
    Beginning construction of third Hampton Roads Bridge Tunnel

    Education
    One of the better higher education systems in the country. You may not like how they are run and feel they dispense left-wing dogma, but that does not mean they are desirable schools. (Several had record numbers of applications for the upcoming freshman class.)

    Environment.

    Reduction of CO2 in atmosphere is not a great expense and does not show up as a significant part of the budget.

    We have gotten continued improvement in the health of the Chesapeake Bay.

    1. DJRippert Avatar
      DJRippert

      “For state employees, this is making up for those lean years when, sometimes, there were no increases. However, perhaps you don’t think it is good for you or the state to have teachers and employees to have decent salaries.”

      Go look at Jim’s chart. If the rapidly increasing state spend was not being spent on keeping teachers adequately paid, what was it being spent on? Seeing those kinds of increases while (presumably) failing to keep teachers properly paid is an even bigger indictment of our state government.

      “One of the better higher education systems in the country. You may not like how they are run and feel they dispense left-wing dogma, but that does not mean they are desirable schools.”

      That misses the point. Did we not have “one of the better higher education systems in the country in 2007” when Jim’s chart begins? If we did, has it improved significantly based on the dramatic increase in state spending?

      What would we have missed in Virginia if state spending from 2007 through today were held to increases equal to inflation + population increases.

      The question is the delta in spending against a delta in the quality of life in Virginia.

      I don’t see it.

    2. Timothy Watson Avatar
      Timothy Watson

      “A statewide radio system for the State Police that enables troopers to communicate better with each other and with local police and sheriffs’ depts. (Millions and millions of dollars.)”

      A radio system that cost over a hundred million dollars to implement and the Virginia State Police (VSP) wants another hundred million to replace end-of-life equipment?

      The same radio system that VSP doesn’t even use during interagency operations (e.g., Charlottesville protests) despite that being the main selling point for the system?

      The same radio system that they paid for despite never successfully implementing key features (e.g., data communications to in-vehicle laptops)?

  4. LarrytheG Avatar
    LarrytheG

    A much better chart would be one that shows what the areas of increased spending are in.

    I’m betting that both original Medicaid and the Medicaid Expansion (Federal pass through) as well as COVID money is part of the picture.

    JAB is from the ” we don’t like paying taxes for state services” crowd. It don’t matter the why’s and where-for or details, nope… it’s the principle of the thing.

    And also don’t forget, we STILL have some unfunded or under-funded things that we have kicked the can down the road on but the no-mo-tax folks are happier with starving them.

  5. Eric the half a troll Avatar
    Eric the half a troll

    The data you provided shows a remarkably consistent pace of growth. The last two years are anomalous due to COVID stimulus spending.

    1. The next biennial budget is post-COVID, but spending will back off only a little from the COVID-era budget. Lots of new spending locked into place that can never be rolled back without howls of pain and anguish and charges that Republicans hate the poor and minorities.

      1. Eric the half a troll Avatar
        Eric the half a troll

        I think there is still a lot of Covid recovery federal money out there…. think of it like going off steroids treatment…

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