February 13, 2006
Last week I expressed my concerns about the nature of the current budget discussions going on in Richmond. I am anxious that many individuals are not fully aware of the scale on which we are dealing, so this week, I'd like to follow up with some additional thoughts.
There are two major streams of revenue that comprise the state budget: general fund and non-general fund. The general fund is what you as taxpayers pay — things such as income tax and sales tax. The non-general fund consists of most everything else; including tuition, room and board at our public colleges; federal money that comes for any number of projects, and user fees that are dedicated to particular funds. For example, hunting and fishing fees go directly to Game and Inland Fisheries, and taxes on fuel and tolls go to the Department of Transportation.
The non-general fund growth has far exceeded general fund growth, largely because the General Assembly has little control over what comes into the state in non-general revenue. This reflects greater affluence and higher hopes for many Virginians.
The general fund has gone up less significantly over the years, and can be broken down into more understandable segments. Twenty years ago the general revenue was $4.03 billion. In 2006, that number had climbed to $14.6 billion. This means that the general fund as grown by almost 6% annually. Looking at that figure, it would seem that government spending has gotten out of hand.
However, when inflation plus population growth (4.4%) and personal income growth (1.6%) are taken into account, it doesn't seem quite as extreme.
It should also be noted that $950 million of the $14.6 billion budgeted for general fund revenue in 2006 is sent to the counties to pay for car tax relief.
I would like to stress again my strong belief that individuals are fully capable of determining the best way to spend their hard earned money. I will do all I can to keep that money in your pocket and not in Richmond. As the General Assembly session reaches Crossover this week, I will continue to be mindful that any changes in our tax policy have a direct affect on the families of our great Commonwealth.
As always, I welcome your input and hope you will feel free to contact my office whenever there are issues of concern to you or you need my assistance in dealing with state government. You can reach me by e-mail at district15@sov.state.va.us, by telephone at 804-698-7515 or by mail at P.O. Box 396, Richmond, VA 23218.