We Have a Budget

It’s not over until it’s over, but only judicial appointments and the veto session keep the 2014 Special Session I of the General Assembly from being over.

Tumult preceded yesterday’s session, which ended well past midnight.  A botched revenue forecast put the state $1.55 billion behind projections.  Senator Philip Puckett resigned, returning the Senate to Republican control, and Representative Eric Cantor was upset by Tea Party upstart David Brat.

These three events created a perfect storm which led to a very disappointing budget outcome last night. 

Hastened by the anticipated revenue shortfall in the next biennium and the need to pass a budget by June 30 to access the “Rainy Day Fund” to partially offset this shortfall, the General Assembly worked frantically to pass the 2014-2016 biennial budget.  This budget includes a $847.5 million revenue reserve fund and anticipates a $707.5 million withdrawal from the “Rainy Day Fund” to achieve balance.

The good news is that rebenchmarking and VRS funding were not cut.  The bad news is that we lost the teacher and support staff salary increases and the language allowing school division participation in the state health insurance program.

Had Medicaid Expansion been included in the budget, the resulting $225 million in savings could have offset some of the shortfall and consequently have reduced the cuts.

The new Republican Senate majority, empowered by Puckett’s resignation and fearful of Brat-inspired Tea Party primaries, inserted Senator Stanley’s amendment thwarting any effort by the Governor to expand Medicaid without the approval of the General Assembly.

Will the Governor sign the budget, line-item veto this section of the budget, or will he veto the entire budget and send the General Assembly back to work?