PAINFUL MELONCHOLY was readily discernable on the increasingly wrinkle-defined face of Gov. Mark R. Warner as he addressed the Commonwealth via television broadcast Tuesday evening. His message was simple: The budget cuts are severe. They go far beyond "cutting the fat" and are going to threaten vital state services. The economy cannot be expected to improve our situation, and if anything, the next round of cuts in January will only be worse. Higher education, mentioned specifically several times during the 30-minute address, will not fare much better. He outlined the potential for 4,500 layoffs, budget cuts of 9 to 15 percent, and likely tuition increases for both in- and out-of-state students.
While they display remarkably disciplined, tough decision-making by the Warner administration, cuts of this magnitude demand proactive action. Warner should use the hardships incurred by the cuts as a way of gaining greater acceptance of a proposal for legislatively increased revenue. Simply: Warner must advocate a tax increase.
Warner described the current budget crisis as a result of both increased spending under previous administrations coupled with 50-some tax cuts. This shrank revenues to their current state, which Warner described as "the largest decline in state revenues in 40 years." In fact, legislators planned the fiscal year 2003-2004 budget (Virginia plans by biennium) with expectations of revenue that have since shrunk dramatically. The Commonwealth in August announced a shortfall of $1.5 billion under the original projections, with the potential for that gap to increase if the economy continues to falter. The administration then requested that all state agencies submit proposed budget cuts at levels of 9, 11 and 15 percent -- the statutory limit at which Warner may cut state budgets across the board. In Tuesday evening's address, Warner outlined several examples of how his administration had scaled back resources. It is clear that these cuts will come at the expense of vital state services to Virginians.
Let there be hope that Warner had a clear rationale for continuously hammering on the severity of these cuts and the examples of how they will retard everyday conveniences throughout Virginia. As the news sinks in across the Commonwealth -- as lines grow at DMVs due to branch closings, as layoffs take effect throughout state agencies, as ABC liquor stores constrict hours -- the taxpaying public should be expected to demand action from the government. This leaves Warner in the position to advocate a policy that for one reason or another has become a social taboo in Virginia. He must use this public opinion, coupled with the knowledge of empty state treasuries and a continually faltering state economy, to gather widespread acceptance of tax increases.
There are many ways that taxes can be increased with only slight incidences on the general public. For example, the tobacco tax is considerably lower in Virginia than in the majority of states in the country. This is likely a result of the powerful tobacco special interest groups and reluctance by the public to tax the resource which built this state's economy. By supporting a substantial increase in the state's tobacco tax, coupled with only small increases in the state's sales tax, Virginia can recover much of its lost revenue.
Another feasible proposal for increasing revenue would be to phase out the car tax payments being sent to localities. Under the gubernatorial administration preceding Warner, the state slowly increased subsidies to localities. This was done to offset a parallel decrease in payments by taxpayers to the localities, based on the value of their automobiles. This widely hated tax may have been a successful political button to push in the public, but its replacement now represents a significant portion of critical state revenue. Warner froze the car tax phase-out when he entered office, but has done nothing to rescind the policy.
Warner has done what few politicians enjoy doing, and that is cutting rather than increasing state spending. He has emphasized the significance and severity of these cuts to the taxpayer in terms of fewer services to the public and greater burdens on state institutions. This must be accompanied by a call for more revenue, else the Commonwealth continue to atrophy and wither under the administration's fear of the unfavorability of such proposals.
For too long, Virginia has operated under the premise that government can increase spending and cut taxes. The public must be reminded that there is no free lunch. As Warner put it Tuesday evening, "It is time we question what we expect from government." This taxpaying Virginian at a public institution expects manageable class sizes, reasonable class selection choices, modest building accommodations and an institution that continues to reflect the value of the degree I am working toward. These are reasonable expectations. Warner must push for increased revenue sources to fund my education and that of my peers.
(Preston Lloyd's column appears
Thursdays in The Cavalier Daily. He can be reached at plloyd@cavalierdaily.com.)
Read More
PATEL: Personal development courses support students beyond the gradebook
By Heer Patel | YesterdayThe University must rethink its approach to education beyond traditional major-specific requirements and mandate personal development courses.
EDITORIAL: Commercialization threatens U.Va.’s educational mission
By Editorial Board | 2 days agoAfter all, measuring the University’s worth in terms of accrued capital, operational efficiency and numerical rankings molds this space into just another cookie-cutter institution.
YOUNIS: Why every U.Va. student should say yes to English
By Ayat Younis | 6 days agoEvery student at the University, regardless of their primary field of study, can professionally and academically benefit from engaging with the English department.
