Gov. Bob McDonnell presented his proposed two-year budget this week, calling for increased funding for education, mental health treatment, public safety and a slew of other priorities.
The budget totals $95.9 billion for that period of time, with spending increases built on the foundation of a projected growth in revenue by 4.2 percent in 2014 and 3.9 percent in 2015. The General Assembly will consider the budget when its next session begins in January.
Pieces of the proposal have been trickling out for days, including a $38.3 million proposed increase in mental health spending that would see millions of dollars invested in James City County’s Eastern State Hospital. Other funding priorities identified by McDonnell included:
- $183.1 million in new higher education funding
- $582.6 million in increased funding for K-12 students and Pre-K students
- $55.3 million for public safety, including $22.2 million for local sheriffs, commonwealth’s attorneys, and circuit court clerk deputies to fund new hires, reduce overcrowding in jails , fund pay increases and support other operations
- $315.3 million for the state’s share of state and teacher pension benefits and to help make up shortfalls in previous years in the Virginia Retirement System
- $4 million for oyster restoration efforts in the Chesapeake Bay
It will now be up to the General Assembly and Gov.-elect Terry McAuliffe to determine the details and negotiate the proposed budget.
“There are many items in this proposed budget that will make Virginia a better place to work, live and do business. Reforming Virginia’s mental health system must be a critical priority of this budget, as well as strengthening the Virginia Retirement System and continuing to invest in higher education,” McAuliffe said in a statement after McDonnell’s announcement.
McAuliffe said he and his policy team are “closely examining this budget” and that he is “looking forward to finding common ground with leaders from both parties to pass a final product that grows our economy and uses every taxpayer dollar to make Virginians’ lives better.”
McDonnell also seeks to leave $50.9 million unappropriated — “just in case you have any spending ideas of your own. Merry Christmas,” McDonnell said in his remarks.
There he said he hopes the “awkward practice of the outgoing governor putting forward a brand new two-year budget” will be replaced with a system where the incoming governor can present the proposed budget.
He used his remarks to tout some budgetary victories, such as turning around a $1.8 billion shortfall when he became governor in January 2010 and turning around a $4.2 billion shortfall for the 2010-2012 budget. He said he is leaving office with four consecutive years of revenue and savings surpluses, leaving Virginia with a $2 billion budget surplus over the past four years. He also mentioned the state’s unemployment rate, which has dipped from 7.4 percent to 5.6 percent since he took office.
This is McDonnell’s second and final budget presentation as governor of Virginia. McAuliffe will get to present a budget halfway through his term and at the close of his term.
To view the entire budget, click here.
