Governor Warner's Message on Adjournment

Governor Warner's Message on Adjournment

TO THE MEMBERS OF THE GENERAL ASSEMBLY OF VIRGINIA:

At the outset of this General Assembly session, I laid out two goals: to balance the budget in a fiscally responsible manner, and to use this unique opportunity to accomplish the hard work of streamlining state government.

Today, I am pleased to say that we have taken important steps together on both of these issues. You have approved the overwhelming majority of our reform agenda. This action will allow us to be better stewards of the taxpayers' money and deliver services to the people of Virginia more efficiently. Our shared budgetary framework remains largely intact. Together, we have jointly agreed to protect public education, public safety, and a safety net for people in need - without tinkering with the Virginia Retirement System. Yet I am concerned that your effort to ease the pain of budget cuts may have led to promises that cannot be kept.

You have approved my proposals to move Virginia toward a coordinated statewide workforce development system; to continue improving accountability at the Virginia Department of Transportation; to enhance highway safety by cracking down on unsafe driving in high-risk corridors and on driving under the influence of alcohol or drugs; to enhance the Commonwealth's preparedness for future emergencies or attacks; to move toward a community-based system of mental health care; to consolidate state information technology services within a single new agency; to develop a comprehensive water policy; to streamline state services to veterans; and to reform budget policy to further ensure that the Commonwealth never again plunges so deeply into fiscal crisis.

Taken together, these proposals represent the most sweeping reform of state government since the Cabinet system was created a generation ago. The people of Virginia will be well served as a result of your approval of these measures.

In addition, you have continued to address our Commonwealth's finances. Over the last year, we have worked together to close a $6 billion budget shortfall, the largest in Virginia's history. Our careful stewardship has been recognized by the country's leading bond rating agencies, and we must maintain our traditional commitment to fiscal integrity.

After a preliminary examination of your amendments to the Executive Budget, I am however concerned that a number of your proposals do not adhere to our fiscally conservative traditions, especially during this time of economic uncertainty and the increasing likelihood of war. I refer specifically to

revenue estimates increased above the levels that the statutory forecasting process of our leading economists and business leaders judged to be prudent;

new tax cuts enacted today with the costs delayed until tomorrow; and

new spending commitments made with only a modest down payment on the eventual cost.

Over the coming weeks, I shall closely scrutinize your amendments to ensure that they do not divert the Commonwealth's efforts to return to the path of fiscal integrity.

I am most concerned about your decision to eliminate the estate tax next year. I do not believe that now, during the worst fiscal situation of the last fifty years, is the right time to repeal the estate tax. Your plan offers tax relief to only about 400 wealthy families each year, even though the tax cuts you previously approved (car tax relief and a cut in the food tax) still have not been fully implemented. In addition, by making this latest tax cut effective next year, you have chosen to spend tomorrow's revenue today - in effect, writing a post-dated check that must be cashed in the next budget. That is exactly the approach that began the Commonwealth's fiscal crisis that has taken us all so much time to resolve. I shall deal with this measure appropriately in the coming days.

After six weeks of accomplishments, much work remains unfinished. Let us again resolve to join together to address the needs of the people of Virginia.

Good luck and Godspeed as you return home. I look forward to seeing you again in April.

Sincerely,

Mark R. Warner
Governor of Virginia -

Mark R. Warner
Copyright 2003