2008 is Governor Kaine's only opportunity to submit a biennial budget to the General Assembly as Governor.  With a budgetary shortfall of $300 million, one might expect a different approach to spending this legislative session.  During this year's State of the Commonwealth Address, Governor Kaine said, "The tight budget requires careful scrutiny of every dollar we spend.  We need to ask tough questions about everything we do.  We have to adhere to our tradition of fiscal responsibility and make ourselves accountable for our taxpayers’ dollars."   Unfortunately, Kaine's priorities and initiatives lack the tradition of fiscal responsibility he spoke about.

Pre-Kindergarten Initiative 

Governor Kaine is proposing to extend free pre-kindergarten program to include all 4-year-olds who qualify for reduced-price lunches.  In Virginia, a family of four with an annual income of $27,000 to $38,000 would be eligible for such assistance.  Extending the program to cover these children would cost an additional $75 million a year and would make an additional 17,000 4-year-olds eligible for free pre-kindergarten.

Currently, the Virginia Pre-K Initiative (VPI) covers all 4-year olds who qualify for free lunches -- living in households with incomes of less than $27,000.  The existing program, which costs the state $50 million a year, serves 12,500 4-year-olds.  While all children in families living in poverty are already eligible to receive free Pre-k, only 40% actually enrolling in free pre-K programs.  In Virginia, 15% of 4-year olds live in poverty, while 26.2% of 4-year old children in the Commonwealth are eligible for VPI.  With 26.2% of 4-year old children eligible for VPI, Virginia provides more 4-year olds with free access to Pre-K than any region in the country.  The South has the highest enrollment in state-funded pre-K at 19%, compared to 12% in the Northeast, 9% in the Midwest and 5.6% in the West. 

With such a significant budget shortfall and a majority of a 4-years already enrolled in Pre-K (where all 4-year old children living in poverty are already eligible for free Pre-K), maybe Governor Kaine should take his own advice and "adhere to our tradition of fiscal responsibility."

Jamestown Vehicle Registration Fee

The General Assembly in 2003 increased the cost of vehicle registration to raise about $6 million annually and set a June 30, 2008, expiration date for the fee.  The fee was imposed as a temporary tax to benefit the Jamestown 2007 celebration.  About $4 million was devoted to Jamestown activities, while the rest was divided between the Department of Motor Vehicles to enhance driver's license security and the governor's open space conservation fund.  While this bill was initially established as a temporary tax, legislators are attempting to extend the tax.  Attorney General Bob McDonnell called for the "permanent elimination" of the fee as a gesture of good faith to voters who were told the fee was mostly for Jamestown.  Americans for Prosperity believes legislators should keep their promise and let the fee expire. 

Smoking Ban 

Governor Kaine has called for a statewide ban of smoking in restaurants, including dining establishments in public and private clubs.  After the Tobacco Ban failed last year, partly due to confusion over what establishments would be covered by the ban, the Governor is back at it again this year.  About two-thirds of the members of the Virginia Hospitality and Travel Association, including those businesses that voluntarily ban smoking, oppose a restaurant-only prohibition.  Businesses should have the ability to choose whether to be smoke-free or not, without the heavy hand of government forcing it upon them.  A statewide smoking ban would eliminate places for adults who choose to smoke to be able to enjoy tobacco products.  Like a lot of the Governor’s proposals, the smoking ban says once more, that government is smarter than the consumer and that government knows better how to run businesses than the business owners themselves.

Open Government Bills 

This legislative session, there are many bills with one common theme: promoting open government and increasing taxpayer's access to information.  It is vital that government is transparent and open.  Technology has increased taxpayer's ability to quickly access information.  Bills such as Delegate Ben Cline's Public Disclosure Bill (House Bill 1358) would facilitate taxpayer's access information about how the government is spending taxpayer's money.  For example, House Bill 1358 would require each state agency to provide a list of procurements conducted by an agency that were competed with the private sector to the Director of the Division of Purchases and Supply of the Department of General Services to be made available to the public online.  There are other bills that would require the state to post budget bills and appropriations online as well.

Additionally, there are bills that would increase disclosure of campaign contributions.  For example, Delegate Chris Saxman's Immediate Disclosure Bill (House Bill 1162) would require immediate disclosure of all contributions of $250 or more received at any time by any candidate for elected office. 

There have been many noted cases of public officials receiving campaign contributions and other forms of payment in exchange for government contracts and government dollars.  Duke Cunningham, for example was convicted and jailed after funneling defense contracts worth at least $95 million in exchange for bribes.   These bills before the legislature this session will all increase open government and taxpayer's access to information.

Payday Lending 

Legislators are trying to further regulate the payday and online lending business in Virginia.  Currently, the Virginia State Corporation Commission licenses payday lenders and there are existing restrictions placed on the lenders.  Consumers are typically charged an average of $15 per $100 if the loan is paid on time.  Virginia’s current regulations guarantee full and proper disclosure of the terms and conditions.   Americans for Prosperity believes that payday lending is a practice that has proved vital to many Virginia families.  Protection from unfair practices is one thing, but to legislate away some folks only lending option is not the role for government. 

Once again, the legislature doesn’t want to trust consumers with their own wallets. 

Property Taxes 

As property tax bills continue to skyrocket, Virginians need added protections from greedy local governments.  There are a series of bills that would require localities to provide more information to taxpayers about assessments and tax rates, to lower the tax rate if there is an increase in real estate tax revenue from the previous year, and require localities to allow taxpayers to defer payment of the increase in assessments.  For example, House Bill 1009 and Senate Bill 779 (identical) would (1) require localities to include in the assessment notice the tax rate that will apply to reassessed real property; (2) require localities to include in the bill comparative information regarding tax rates, assessed values, and tax amounts owed for the current year and the previous year; and (3) permit taxpayers to defer a portion of the increase in real property taxes on the primary dwelling owned and occupied by the taxpayer until the property is transferred or until the taxpayer's death.  These bills would offer badly needed relief to Virginia’s taxpayers by protecting them from increased assessments and tax rates.    

Please contact your legislators about these bills.