From the Richmond Times Dispatch:
Gov. Bob McDonnell on Monday unveiled a two-year, $84.9 billion spending plan that balances increases in transportation, higher education and the state’s pension system with $882 million in targeted reductions largely to Medicaid and public education funding. The proposed budget for July 1, 2012, through June 30, 2014, contains no tax increases but raises certain fees, including $10 million worth from the Department of Motor Vehicles.
If fees are increased at the DMV, doesn’t that really constitute a tax increase, by another name?
Additionally, if items like Medicaid and public education get shortchanged, doesn’t that simply make local governments more strapped for much needed cash? The real estate market has not rebounded all that much which is where the taxes come from in most localities. There is also a movement under way to do away with the BPOL tax.
Somehow politicians need to accept that we are not all that stupid. We know that neither PWC nor Virginia can print money. We know that a certain amount of money is needed for schools and for medicaid. If the buck stops here, we either do without cops and other public safety services or we have 40 kids in a classroom.
How do you cut back on Medicaid? Where do you start? Do you disqualify people? I don’t know the answers. It just seems that we are playing a shell game. The fed cuts what it gives to the states. The state cuts what it gives to the localities. The localities have things they must do like provide medicaid, education money and public safety. So we move it around.
This is like the song, Where have all the Flowers Gone. Gone to Flowers everyone. McDonnell is on Fox News bragging that he has a surplus. Not really. How about that money owed to VRS that has not yet been repaid? How about what is being shorted the localities? How about the increased fees? Just because we don’t call it a tax, is it still a tax? Yup.
I don’t really care. I noticed a huge hit since the last time I renewed my license. I expected it. But lets call it what it is. It’s a tax increase called a fee.
The bait and switch – and he will campaign for his next office – I did not raise your taxes, I just increased the fees. Does anyone know – Does DMV generate revenue for the Common Wealth?
I suggest we reroute the Republican gas line from Canada through Virginia to Texas. We tax the oil as it goes through Virginny and it will create thousands of jobs here that the State can also tax. If it works in the Midwest, it will work here.
@Pat, don’t know where it goes.
@BS good plan. Tell the Guv!!!
Will it be above ground?
I further suggest that Virginia print its own script. Each State and Municipal employee (not retirees ) and each private entity contracted to the State or local municipality be paid one-half in US dollars and one half in Virginia issued script. That script can only be spent in Virginia thus stimulating Va businesses. That State could then collect the tax on the increased revenues from those businesses. The pipeline must be above board but below ground.
As a local elected guy I’ve become used to the regular unfunded mandates that come from Richmond and Washington. They come to us largely so that state officials can tell everyone they didn’t raise taxes. I’m used to that as well. We’re on the bottom of the food chain and can’t really push back.
What I’ve never understood is why those in Richmond seem intent on forcing localities to depend ever more on the real estate tax. It just isn’t good policy. We interviewed a city manager candidate who came from a state whose localities depended entirely on economic activity taxes (sales, income, etc). Guess what happened when the recession came on strong: 25% budget cut. There’s only one way to cut a municipal budget that much: lay off people and most of your people are public safety.
As for the Gov. and the DMV, that’s an age-old tactic and you’ll never get an answer. It’s why they do it. The term limit on the Gov in Virginia turns the 4 year term into a job audition for higher office. It isn’t often (at least lately) that the Gov. isn’t a career politician so it matters to them.