Governor Kaine Finds It’s Not Easy Being Fiscally Responsible
July 3rd, 2008 . by economistmom
It’s not just New Jersey Governor Jon Corzine who’s finding it hard to balance the budget–at least he’s getting some things passed and is just paying the price with declining public approval ratings. Virginia Governor Tim Kaine (my governor) is having trouble just getting things passed.
This morning’s Fairfax (Virginia) section of the Washington Post writes that Governor Kaine, in working with a Republican-controlled House and a Democratic-controlled Senate, has had a hard time getting the votes to pass any (transportation-related) tax increase that would help fund Virginia’s badly-needed transportation projects. The story should sound familiar to anyone who’s followed the debates on the federal budget on the floors of the U.S. Congress:
Senate Democrats want an increase in the gas tax as well as minor increases in the sales tax and new regional taxes in Northern Virginia and Hampton Roads, partially offset by a reduction in the sales tax on food. Kaine, backed by House Democrats, shied away from raising the gas tax and instead sought an increase in the sales tax on vehicle purchases.
The division has made it easier for Republicans in the House and Senate to oppose both proposals. Instead of being on the defensive, GOP legislators say they now have cover to come out against both plans, arguing to their constituents that even Democrats are opposed to raising some taxes and fees to build more roads.
…If the legislature leaves town without doing anything, Democrats remain optimistic that the electorate in vote-rich Northern Virginia and Hampton Roads will punish the GOP in 2009.
But as it stands, the session will be known as one in which House and Senate Democrats — not Republicans — have had to cast tough votes.
With all 19 Senate Republicans unified in opposition to a statewide tax increase — confident they have political cover because of the economic slowdown and the high price of gas — [VA Senate Majority Leader] Saslaw had to struggle to get the support of the Senate Democrats [for his proposal to raise gas taxes].
And that proposed gas tax increase was pretty small–according to the article: “Saslaw’s plan [would] raise the gas tax by 6 cents over six years, which would cost the average family less than $50 a year.” But when it seems the alternative might be to actually cut gasoline taxes (when you hear talk of gas tax holidays), any proposal to raise the tax seems relatively outlandish.
It’s just not easy being fiscally responsible, particularly at a time when the political and economic climate encourages precisely the opposite.
