Gov.-elect Bob McDonnell just released a letter he sent to Interior Secretary Ken Salazar, urging Salazar to move forward rapidly on allowing oil and gas exploration off the Virginia coast.
In the letter, McDonnell says he wants Virginia to be "the first state on the Atlantic seaboard
to explore and drill beginning in 2011.">
McDonnell cites a 2005 study that says natural gas production off the coast could mean 2,578 news jobs with a combined payroll of $644 million as well as $271 million in new local and state tax revenue over the next 10 years.
In addition, McDonnell writes, there may be enough oil found off the Virginia coast to fuel all 4 million cars in Virginia for more than four years.
"Virginia is eager to get started," McDonnell wrote.
State Sen. John Miller, D-Newport News, has scheduled a number of town hall meetings across the district to give his constituents a chance to talk about the upcoming General Assembly session, which begins on Jan. 13.
"This session of the General Assembly will be one of the most
challenging in many years," Miller said in announcing the forums. "In addition
to making the hard decisions on where to cut the budget, legislators will deal
with the future of Ft. Monroe, whether to sell the ports and how to fund transportation.”
Here's the schedule:
York County: Monday, Jan. 4, 7 - 8:30 p.m. at Tabb Library, 100 Long Green Road.
Gov. Timothy M. Kaine is making final holiday rounds and "Barry from D.C." couldn't resist the opportunity to call in to a Kaine radio appearance to offer kudos from the White House.
Kaine was caught a little bit off guard during the monthly "Ask the governor" segment when the radio folks tossed the caller to him as simply "Barry from D.C." When the caller begins speaking it's abundantly clear it's President Barack Obama on the line. ("Barry" was the name Obama used during his childhood instead of picking a less awkward name to use at 7th grade mixers from his formal moniker - Barack Hussien Obama.)
On the call, Obama jokes about the awful traffic problems in the Northern Virginia suburbs that ring Washington before thanking Kaine for his service over the past year.
Obama also took a playful swipe at Kaine by saving the big compliments for Kaine's wife, Anne Holton, immediately suggesting that Kaine and Obama are bonded in that they both toil in the tall shadows of more popular spouses.
"We continue to think your wife is probably a little superior to you, as I think people think about the first lady, but you and me have to stick together since we're married to better people," Obama said.
Kaine added "quite a bit superior" to the description of his wife.
"As I think back about my four years as governor I still think my happiest day as governor was in November 2008," Kaine said. "I'm excited to continue to be in service, as they say."
Kaine is preparing to be a more vocal and aggressive cheerleader for the president as he sheds control of Virginia to incoming Gov.-elect Bob McDonnell. The Republican takes office on Jan. 16 freeing Kaine to more fully embrace his role as the chairman of the Democratic National Committee.
Kaine has taken some heat from both ends for the dual roles, with state Republicans blasting him for traveling and fundraising across the country and national Democrats occasionally critiquing his efforts to bring in money and pump up the base. Kaine snared the DNC job after solidifying himself as a staunch and consistent ally for Obama during the long a brutal presidential campaign trail.
Kaine was the first statewide elected official outside of Illinois to endorse Obama during the Democratic primary when the common wisdom said that Hillary Clinton would win in a walk. Obama flirted with the idea of choosing Kaine as a VP, but ended up asking Kaine to take the helm of the DNC.
Gov. Timothy M. Kaine's office is offering some historical perspective on his proposal to boost the state's income tax 1 percent to offset the $950 million a year spent on the car tax.
Here's the detail straight from the governor, and remember that these are answers from the folks who are advocating the increase:
- When was the last time the state income tax was increased?
The last time the state income tax was increased was 1972 when the 5.75% rate was added for income over $12,000 annually. (The $12,000 figure was increased to $17,000 in the late 1980s.) The corporate tax rate was also increased from 5% to the current 6%. Before 1972 the last increase was when the 5% rate was added in 1948.
The proposed maximum income tax rate of 6.75% (the current maximum of 5.75% + the 1% surcharge) would still rank Virginia favorably among states that have a state income tax rate. Neighboring state income tax rates include:
- MD, 9.23%
- Washington DC, 8.5%
- NC, 7.75%
- KY, 6.76%
- WV, 6.5%
- TN, 6.0% (on interest and dividends only)
- By how much in dollar figures would the average family see their income tax bill increase with a 1% surtax?
The increase in income tax liability is dependent on a person's taxable income. Some families with low income will experience only a small dollar increase, while the impact will be larger for those with higher incomes. Citizens will more broadly benefit as a result of a more diversified local revenue stream that avoids deeper cuts to public education, public safety, etc.
Here's the full statement released by Gov.-elect Bob McDonnell - we're adding emphasis to help you skim read.
“In accordance with his responsibilities as the Chief Executive of the Commonwealth of Virginia, Governor Kaine has put forward his proposed budget for the 2011-2012 biennium. I fully recognize that this has not been an easy time in which to lead Virginia, and I respect the tough decisions that the Governor has had to make in this budget and in previous budget reductions. I also commend the Governor for his stated goals in preparing this document: preserving Virginia’s Triple A bond rating, funding core government services, and making tough decisions necessary to position the Commonwealth for future economic growth. These are the right considerations in the preparation of a budget. I would add to them a focus on promoting policies which encourage job creation, and a restructuring of government in order to make it both more efficient and effective.
The budget put forward this morning contains numerous additional spending reductions and cuts. Budget adjustments of the magnitude necessary to equalize current state spending with the dramatic decline in revenue that the Commonwealth is experiencing cannot be made in a painless manner. The cuts proposed today will have a direct impact on Virginians in every county and city. While we both understand, and agree, that significant cuts must be made, we will differ on the specifics of those cuts. With that in mind, I am concerned with the effect that that the Governor’s suggested cuts to law enforcement could have on public safety, a core responsibility of government.
I applaud the Governor for his willingness to make smart investments in Virginia’s future during these tough times. The increase in funding for the Governor’s Opportunity Fund in order to spur job creation is a step in the right direction, although more will be required to keep Virginia competitive. Further I support the Governor’s direction of more education dollars to the classroom and out of overhead and administrative offices, as I pledged to do during our campaign.
I disagree, however, with the Governor’s proposal to increase taxes. It is bad economic policy to increase taxes on Virginians, especially as they continue to struggle with the worst economy in generations. Families and businesses are making strategic reforms and deep cuts, and government must do the same. We must be looking for every means by which we can attract businesses and entrepreneurs to the Commonwealth. Capital is mobile and I do not support any measures that could dissuade investment in Virginia, or put the state at a competitive disadvantage with our neighbors.
In the weeks ahead I will review the Governor’s proposed budget in further detail. I will work with the House and Senate money committee leadership in a bipartisan fashion to ensure the budget is balanced, realistic, encouraging of private sector job creation, and makes economic development investments crucial to the future prosperity and welfare of our citizens and our Commonwealth.”
Here's the full statement from the Republican Party of Virginia:
Democratic National Committee Chairman Tim Kaine today submitted his final budget that only stays in balance if a massive tax increase he included is implemented. Kaine has proposed ending personal property tax and replacing it with an increase in income taxes, which he projects would raise billions in new revenues from taxpayers during tough economic times. In November’s elections, Republicans were overwhelmingly swept into all three statewide offices and increased their majority in the House of Delegates with a message that included a pledge to remain firmly against tax increases.
Kaine faced a $3.5 billion shortfall in this budget, largely because his administration had based its spending roadmap on wildly optimistic projections of future revenues that did not materialize. He had hinted for weeks that he would raise taxes to close the gap he created, despite repeated appeals from Governor-Elect Bob McDonnell, Lieutenant Governor Bill Bolling and legislative leaders to resist raising taxes during a struggling economy.
“When you’ve got the incoming administration and the newly-elected House of Delegates saying all along that an increase in taxes is not an option in this economy, then why would you purposefully submit a budget which bases its viability on the very tax increases that have already been rejected as unacceptable?” asked Republican Party of Virginia Chairman Pat Mullins. “We understand that this situation is going to involve a lot of difficult choices, but placing an additional burden on hardworking Virginia families struggling through this economic climate is not one of them.”
“It seems obvious to me that Tim Kaine has put his partisan hat back on and purposefully set up a political fight between high-tax Democrats and the incoming administration,” Mullins said. “I guess he just wants to go back up to Washington, DC and watch the fun from the DNC.”
Well that was short lived: House Speaker William J. Howell took to the hallways of the General Assembly Friday morning to inform anyone who would listen that doing away with car tax relief won't survive the House of Delegates.
"That's very real relief," Howell said of the $950 million that Gov. Timothy M. Kaine proposed eliminating. "We're returning that to the taxpayers."
Howell and Del. Kirk Cox, R-Colonial Heights, were both dismissive of Kaine's proposal that the state should end car tax payments to cities and counties and raise the income tax 1 percent to provide local governments with level money. Kaine told the money committee's that the entire cost of the car tax is around $1.6 billion a year, and an income tax hike would provide about $1.9 billion annually.
Kaine called the car tax cycle "ridiculous" noting repeatedly that the idea was great on the campaign trail but has triggered major budgeting problems in Richmond. Kaine also pointed out that since lawmakers agreed to cap car tax payments at $950 million a year in 2004, very few lawmakers have complained about not fulfilling the campaign vow made by Republican Gov. Jim Gilmore.
"It's ridiculous and they know it's ridiculous," Kaine said. "They abandoned 'no car tax' as soon as the campaign was over."
Cox, an influential budget negotiator, said that Kaine's proposal to boost the income tax to help local governments would not fly in the Republican-dominated House. Cox said it was "simply shifting to another tax."
"I see that as a total non-starter," Cox said. "I see that as having no chance to get through."
Howell said that House budget experts should be able to fill the holes in Kaine's budget without eliminating the $950 million for car tax.
"We've got some pretty sharp people and we'll be working for the next 60 days on that," Howell said, referring to the 60-day General Assembly session scheduled to start on Jan. 13. "We can find it."
Gov. Timothy M. Kaine just wrapped up a half-hour speech in which he announced that his two year budget will not include $950 million a year that helps outset local car tax payments.
Kaine said that he had reached a point where further cuts to education, public safety and health care would be too difficult for the state to handle.
Kaine proposed deep cuts to k-12 and funding for local governments - totalling about $2.3 billion. But the two-year budget had a $3.6 billion budget hole.
For folks game planning their morning around Gov. Timothy M. Kaine's speech about spending cuts, you might have to wait a little while for the meat of the details.
Kaine's folks are passing out hard copies of the gigantic state budget, but Kaine's office isn't planning to release the full summary until after Kaine finishes speaking to the joint meeting of the House and Senate money committees.
So that means the details are going to be trickling out from everywhere over the next couple of hours. Kaine has a 11 a.m. conference call scheduled, so the full info should be out by then.
The room is up and applauding right now, Kaine has taken the stage. We'll be back soon.
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