Surplus is Artificial and Generated by Cuts to Localities and Employees
Charlottesville, VA – Governor McDonnell today announced a projected $311 million state surplus. Delegate David Toscano (D-Charlottesville) released the following statement in response:
“While this budget surplus is certainly preferable to a shortfall, we should be clear about its origins. First, our national economy is improving and revenues are up as a result. Second, we neglected our obligations in the last budget to adequately fund our state’s retirement plan. Third, the surplus was generated because of substantial cuts made to localities and our social safety net.
“These substantial cuts to localities and our failure to honor our commitment to state employees to adequately fund their pensions are not consistent with responsible budgeting. Restoring funds now to the retirement system is simply what we should have done two years ago. And maintaining assistance to localities is key to keeping property taxes low.
“It is important that we honor our commitments in a timely fashion that is transparent and without gimmicks. Generating surplus on the backs of localities and our state employees is not only disingenuous, but is a disservice to the taxpayers of the Commonwealth.”