Three whistles before the graveyard swallows us whole

Our fearless "leaders" continue to whistle past the graveyard related to their past and future budget decisions.

Whistle #1: Robbing the Virginia Retirement System to avoid painful cuts

Virginia is taking away more than $620 million that would have been paid toward state employee and teacher pensions, but the state is leaving an IOU.

“The relief provided by the lowering of retirement system contributions provides a short-term solution to the continued ravaging of public services,“

And those counting on these supposed retirement guarantees?  (It is as close as you get to an early grave...)

At the end of June, the state employee plan was funded at 84 percent but declined to below 62 percent in 2013, based on current rates. The teacher plan stood at 76 percent last year but declined about 59 percent in 2013.

Whistle #2: Using a 9.7% revenue growth rate for the second year of the state biennial budget.

Unfortunately, projections are not nearly as restrained in the second year of the biennium, with the House banking on nearly 8.5% revenue growth and the Senate anticipating 9.7% growth. Did you get that? I'll say it again -- we are projecting that Virginia's tax revenues will grow by almost 10% in the second year of the biennium.

Really?  Wow!  Remind me to buy some stocks!! What this really means is there will be more cutting and bleeding to do next year at the state level when the double dip part of the recession hits again or all those optional ARM foreclosures happen next year.  Real smart work folks. A+

Whistle #3: Using federal stimulus in FY10 and one time savings in FY11 to prop up the bloated school operating budget.

Local funding for schools, which makes up about half the budget, will dip by 1.7 percent with the inclusion of the $12 million in prior year savings. Without it, the reduction would be closer to 7 percent.

“Chesterfield [also] got $19.5 million of federal stimulus money out of the state’s total of $365 million. Chesterfield chose to spend it on operating expenses this year.”

The Taxpayer notices a disturbing trend.  The County prefers to put off tough decisions; instead of creating a stable, sustainable budget platform to deliver only the essential county services necessary in a prolonged recession.  The County should be growing the private sector by shrinking the size and scope of the local government until it is actually smaller than it needs to be.

Well, we could end up like California counties and schools in short order if we don't force our "leaders" to get their act together.

A quick, unscientific look around the Golden State suggests that California's collective deficit may be double the state government's $20 billion budget gap. San Francisco must trim $522 million from its budget. San Jose's upcoming balance sheet is $116.2 million in the red. The Los Angeles Unified School District is staring at a $640 million shortfall.

But... it can't happen here.  We can (and will) save the tough decisions for somebody else next year (or later) as the graveyard swallows us whole like a giant boa eating its prey.  We will pay double for these mistakes.