By: Jim Nolan
Published: December 17, 2010 5:30 PM
Virginia Governor Bob McDonnell proposed new spending and new borrowing and new sacrifices. The borrowing will go toward roads improvements, the spending will go toward education and economic development, and the sacrifices will come from state workers, who will be asked to pay into the Virginia Retirement System for the first time since 1983. We road-tested the proposals on a samplin gof state senator and the current chairman of the Democratic party, former House Minority leader brian moran. Here’s their reaction:
Virginia Democratic Party Chairman Brian Moran:
“As we near the end of the Governor’s first full year in office, these budget amendments depict an approach to government that values short-term gratification without respect for long-term impacts,” said Democratic Party of Virginia Chairman Brian Moran.
“Presenting a budget full of ‘pay me later’ schemes and short-term spending, without any long-term revenue is not the leadership that Virginians need, or have come to expect after 8 years of responsible, pay-as-you-go budgeting from Democratic governors.
Sen. Charles J. Colgan, D-Prince William—
On the Virginia Retirement System:
“I think we have to do something about the VRS and I thank that’s a step in the right direction.
I think the system needs this . I think it needs a shot in the arm. i think this is going to give it a shot in the arm and I understand its going to be tough on folks… But I don’t think we have any choice but to fix the system, and it’s going to take some money to fix it.”
Sen. Mary Margaret Whipple, D-Arlington:
On economic development:
“I was particularly pleased with the $5 million for the Virginia Small Business Financing Authority.”
“...It’s reallly focused on small business which is where the most job creation comes.”
On a proposal to withhold funds from Virginia Commonwealth University due to its tuition hike of 24 percent:
“VCU has a largely in-state population and that’s something that’s really important to Virginians. they offer a great education, but you can’t offer it for nothing. And if they’re going to take a high percentage of in-state students and not get extra tuition from out of state students then unless we are prepared to fund them more generously,we can’t expect them to do anything but raise tuition.”
On increasing state debt to finance roads:
I think this reliance on debt is something we’re goign to have to investigate very carefully and cautiously.
Sen. Thomas K. Norment Jr. R-James City—
On transportation financing:
“There’s been a lot of momentum resisting transportation as a result of the inability of the previous three governors to accomplish anything of significance. To do something sweeping that is going to put billions of dollars in road monies I don’t see it happening other than going through the issuance of a bonded indebtedness. There’s not going to be a gas tax in 2001, and that’s just a political, pragmatic statement.”
Sen. Edd Houck, D-Spotsylvania:
“There a significant amount of new spending, new priorities that will require a great deal of scrutiny by the time the legislature finishes working though this budget.”
On Senate Democrats’ Priorities:
“I think we’ve been really content on so-called damage control. We’re not really out of the woods yet on this economy and revenues by any stretch of the imagination. This is a time to protect as best we can the core services—particularly K-12, HHR, public safety.
“Everyone is looking over their political shoulder in everything they do, so I think the dynamic is different. Typically the legislature is much more cautious in an election year.”
Gov. Bob needed State employees’ help to get elected. So he said, “Leave VRS alone.” Once elected, Bob looked around and noticed the anti-government employee sentiment and decided to throw the VRS employees under the bus. He is raiding the employees’ retirement trust fund to advance his political agenda. Ask the Va. State Police, who are one of the poorest paid in the nation, if they would have supported Gov. Bob, if they knew he was going to double cross them once in office. Not likely. So Gov. Bob is seemingly a little liar just like all of the other politicians. He wants to be US President. And he’s an attractive candidate. Except he’s just seemingly another little liar like all the rest. The Nation should take note!!
I hear ya David. I work for a University too and when I started in 1992 I had no option for my retirement. I was automatically enrolled in VRS - many other staff members had the same experience - faculty and higher management still had other options. So the result of this plan is that those of us who can least afford a cut in pay are going to take the hit. Faculty and other who were given other options will see an increase in their already higher wages.
In another article I read today GovBob is planning on spending 150 million of the “surplus” on transportation. While I think we need to make some investments there, the surplus isn’t really a surplus when he had to borrow 700 million from VRS to make it happen. He should put the remaining funds back where they came from!
SOMEONE needs to do a detailed story about the Governor’s proposed changes to state employee benefits and salary.
I work for one our great state’s universities, and have been a member of the VRS since 1982. I (apperently wrongly) chose to participate in the VRS rather than TIAA-CREF some 28 years ago.
The Governor’s proposed changes are being pushed with the concept of equitability… The state takes 5% of my salary for retirement and gives me a 3% pay increase and a 2% bonus at the end of the year and we call it even. On the surface it sounds fair, but once you dig a little deeper it is a plan that should insult state workers.
Those of us who poorly chose the VRS will have 5% deducted from our salaries (before taxes) but we will get in return a 3% raise (after taxes that works out to about a 1.83% net increase) + a 2% bonus at the end of the year (after taxes this equals about a 1.22% net bonus) 5% - (1.83% + 1.22%) equals approximately a 1.95% reduction in net salary. His math is flawed and shows no equity at all.
Many of my collegues were smart enough to invest in the TIAA-CREF option, and by virtue of that choice, rather than having their salary decreased by almost 2% they will actually see a 3.05% increase in salary if this plan is approved.
Where is the equity in that? I, personally, was forced to stop my optional payments into my 457 and 403b retirement plans this year just to make ends meet. Now the Governor wants to take another 2% from my paycheck!? What am I supposed to do? I’ve already sacrificed part of my retirement… and now I’m supposed to sacrifice my living wage, while those beside me get an increase.
After 28+ years working for the state and 4 years straight without a pay raise I don’t see the equity in decreasing my net pay. Why must I be penalized for trusting in my state government - my employer?
Someone, please dig into this! It is unfair and Gov. McDonnell should be forced to answer to the inequalities inherent in his plan.
I would prefer that he spit in my face - at least that would be an honest expression of his feelings toward the state employees! I am disgusted by his attempt at obfuscation. SOMETIME 2+3 does not equal 5!
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