Monday, December 15, 2008

VA Ranks 40 of 50 States In Projecting Budget Shortfall; 39 States have Either Positive Cashflow or Less Shortfall than We Do!

Seven states have NO shortfall in general funds.

Forty Three states, including Virginia, have shortfalls.

Thirty-eight states did a better job than Virginia in estimating their budgets.

Normally, Governors present budget revenue estimate figures to legislatures and the lawmakers rely upon those figures to prepare state budgets. Considering all 50 states, Virginia ranked number 40 out of 50 in correctly estimating the percent of shortfall of general revenue funds.

Getting 20% on a class accounting test is not a passing grade on any VA Standards of Quality testing scale.

Thirty-nine (39) states had either NO general revenue shortfall or a smaller percent of shortfalls of their general revenue funds than Virginia, and ten had worse records.

In other words, Virginia lagged behind 79% of the states in accuracy of budget predictors for calculating shortfalls.

Our status could fall even further as Utah and Tennessee (which we used to own) have only slightly greater percent in general revenue shortfalls. Will this affect our ranking as a well managed state and our bond ratings?

Gov Kaine will present his most recent budget estimates to Assembly money committees this Wednesday to propose budget cuts and rescissions.

While Virginia is considered one of the best managed states in the Union, our status as 40th out of 50 needs to be addressed by new methods of legislative oversight. To minimize such future budget shortfall problems, Bob Marshall introduced HB 1641 which sets up ten advisory councils comprised of all 140 members of the General Assembly and private individuals to operate like the equivalent of ten federal Base Realignment and Closure Commissions to find less expensive ways to carry out the functions of state government.
(See http://leg1.state.va.us/cgi-bin/legp504.exe?091+sum+HB1641.)

To access and download a PDF of the state budget survey results go to: http://www.cbpp.org/9-8-08sfp.htm.

You may call Bob Marshall at 703-853-4213 if you have questions about Virginia's budget shortfall and Tim Kaine's management of your tax money.

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