Schools spared worst budget scenario

By DAN KEGLEY, Staff, and MARCOS CHAPPELL AND REBECCA LEÓN,Capital News Service

While the General Assembly passed on Saturday a two-year $82 billion budget, school districts are waiting to see how the budget’s $253 million cut in K-12 education over the biennium will affect them.
Smyth County School Superintendent Dr. Mike Robinson said Monday he did not have details about what the new budget means for his school division. The Virginia Department of Education, he explained, takes the raw budget data and breaks it down for each division.
“By midweek, hopefully, they will have spreadsheets posted,” Robinson said.
But Robinson was breathing a bit easier after the legislators rejected $400 million in additional cuts originally desired by the House of Delegates.
“I think it’s going to be better than the worst case scenarios,” he said. Those scenarios anticipated former Gov. Timothy Kaine’s recommendations plus possible additional cuts by the legislature.
“Still, $253 million in cuts on top of Kaine’s is significant, but it’s better than it could have been,” Robinson said. “I’m more optimistic than I have been in a long time.”
While Robinson should know this week his division’s anticipated receipts from the state, he still will not have a complete budget picture. It could be a month before he knows the level of local revenues that will be available to the county school board, he said.
In crafting the budget, legislators faced one of the toughest economic slumps the commonwealth has ever seen. Because of the recession, tax revenues have been far below projections.
“At no time in my 49 years as a member of the House have I seen a budget situation this bad,” said Delegate Lacey Putney, I-Bedford, chairman of the House Appropriations Committee and a member of the conference committee that worked with senators on the final budget.
“Despite the fiscal challenges we faced, the House and Senate conferees started the conference committee with a shared commitment to approving a state budget that does not contain a tax increase. Clearly, a $2 billion tax increase would have hampered our economic recovery, exacerbating the burden on Virginia's taxpayers, working families and small businesses.”
“This budget process was about minimizing the damage, and I think we have found the best way forward,” said Sen. Mary Margaret Whipple of Arlington, who chairs the Virginia Senate Democratic Caucus. “We successfully reduced the devastating education cuts proposed by the House, found ways to keep cops on the street and will preserve the health-care safety net for vulnerable Virginians.”
The state budget cuts affected not only education but also health care and public safety in efforts to bridge a $4 billion shortfall. The Senate passed the budget 34-6, while the House passed it 73-23. Mediators worked through Saturday night to reach compromises for Sunday’s votes. The assembly extended its session by one day to wrap up the 2010-2012 budget.
The budget cuts funding for free clinics and community health centers and reduces Medicaid reimbursement to hospitals, nursing homes and health care professionals by 7 percent – unless federal monies are available. State officials also are banking on federal funds to provide Medicaid waivers for 250 more intellectually disabled children so they can receive services at home.
However, the state budget cuts could have been worse. The spending plan approved by legislators restores $13.7 million in operating funds for the Commonwealth Center for Children and Adolescents and the Virginia Health Care Foundation. The budget also incorporates the Senate’s plan to provide $130 million for the program called Family Access to Medical Insurance Security, or FAMIS, which serves low-income children and pregnant women.
Besides health and education, government workers will feel the effects of the budget. The budget provides no pay raises for state workers, who have not seen raises in four years. However, if state revenues are adequate, the budget will provide a 3 percent bonus to certain employees in 2011.
However, legislators softened the blow to public safety. Despite some cutbacks, police departments will receive $10.3 million in additional funding during the 2011-2012 fiscal year. The budget would restore funding for career development programs for sheriffs and regional jails.
Lawmakers approved $3.6 million to protect children from online predators. Sen. Creigh Deeds, D-Charlottesville, created the Internet Crimes Against Children Fund, which will support law enforcement task forces through a $10 fee on all misdemeanor and felony convictions.