WHY SHOULD FACTS GET IN THE WAY

Delegate Phillip Hamilton

The following OP-ED by Delegate Phillip Hamilton was published in the Daily Press and Roanoke Times last week.  Delegate Hamilton is Chairman of the House Committee on Health, Welfare & Institutions, Chairman of the Appropriations Subcommittee on Health and Human Resources, and is a member of the Joint Commission on Health Care.

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Why Should Facts Get In The Way?
 
With the current budget situation, the battle cry for some has become just cut state spending!" While the cut spending proponents claim a forty percent increase in state spending over the past four years, the real per-capita spending, when adjusted for inflation, actually only increased by 11.9 percent from fiscal years 1998 to 2001.
 
A recent JLARC review of state spending from 1981 to 2001 documented that during those twenty years Virginias public school enrollment rose by 106,000 students, college enrollment by 31,000, Medicaid-eligible recipients by 378,000 and state inmate population by 25,000. All of these increases required additional state expenditures in accordance with federal or state mandates. Even with these expansions, inflation-adjusted state expenditures amounted to an average annual growth of only 2.3 percent.
   
Some people claim that Virginia is a high-tax and high-spending state. As far as state taxes go, Virginia ranks 46th as a percentage of personal income. Also, during the last 10 years, the General Assembly authorized $1.6 billion in tax relief. In addition to the car tax reduction for individuals that is now paid by the state, other tax cuts include reducing the sales tax on food, eliminating the tax on Social Security and non-prescription drugs, and implementing an age deduction from income taxes for citizens who were at least 62 years old. Currently, Virginia does not collect $3.6 billion in sales tax exemptions or reductions.
 
While Virginia ranks 12th in per capita personal income (wealth), it only ranks 23rd for state spending on public education, 37th in overall per-capita state spending, 45th in welfare spending, 47th in per-capita Medicaid spending, 47th in spending for on mental health, mental retardation, and substance abuse services, and 49th in spending as a percent of personal income. In addition, since 1992, almost $1 billion was spent in state budgets for the creation of the "rainy day" fund as a savings account against potential revenue shortfalls. Again, it should be noted that the largest new state expenditure has been the states reimbursement to localities for the reduction in local car tax collections. These facts hardly paint a picture of an out-of-control, high spending state for government operations.
 
Without any doubt, Virginia is facing a fiscal crisis of monumental proportions that could severely affect the states ability to provide essential, government-responsible services. FY 2002 ended with a deficit in revenue growth. As a result, there has already been substantial belt-tightening and budget cuts over the past year. More significant budget reductions will be implemented to meet the increasing revenue shortfall.
 
While further budget reductions are implemented, the K-12 and college student populations will continue to increase, the numbers of Medicaid-eligible and senior citizens will continue to increase, traffic congestion will continue to worsen, criminal activity will continue, and as a result of the terrorist attack on the Pentagon on Sept. 11, 2001, new public safety concerns will need to be addressed. Given these facts, I wonder where the spending cuts to produce $2 billion in savings to balance the budget should start.
 
When calling for additional budget reductions, the following possible consequences of such reductions should also be considered:

• Drunk drivers, child abusers, spousal abusers, sexual predators, and many other criminals may go unpunished as Commonwealths Attorney offices may be forced to reduce prosecutorial positions and vacant judgeships may not be filled.
• Current and future vacancies in State Police officers, prison guards, and   other public safety officers may continue to remain vacant.
• Instead of receiving life-stabilizing services and treatment, individuals with mental illness, mental retardation, or those substance abuse addictions may seek emergency assistance through more expensive emergency rooms or residential facilities. If services and treatment are not available, many of these citizens may end up in the local jails or state prisons.
• A traditional four-year college degree may take five or more years to complete.
• Larger public school class sizes may threaten school safety and reduce quality classroom instruction.
• Reduced reimbursements for medical care may jeopardize the accessibility and quality of healthcare in hospitals, nursing homes, and physicians offices.
   
  Additional budget reductions must certainly be a component for addressing the current budget situation, however, for a complete discussion of the fiscal situation to occur there must also be a discussion of additional revenue sources and existing tax credits, deductions, and exemptions. When real issues and tough decisions are at stake, it is easy to hide behind a simplistic slogan or solution. It is much more difficult to suggest proactive, practical, and long-term solutions that maintain a positive quality of life for all citizens.
   
  Sincerely,
  Phillip Hamilton
  Member, VA House of Delegates
  (757) 591-7436 (W)