ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, March 28, 1996 TAG: 9603280024
SECTION: EDITORIAL PAGE: A-11 EDITION: METRO
COLUMN: Ray L. Garland
SOURCE: RAY L. GARLAND
THOSE WHO would understand government must give their days and nights to the study of budgets. Last week the big picture; this week the nooks and crannies of a budget bill that runs to more than 350 pages and dispenses almost $35 billion.
The "voluntary" tax is working.
The state lottery will spend about $63 million a year on salaries, advertising and other expenses while generating more than $300 million in profits for the state's general fund, or almost 5 percent of the whole. In the recent campaign, Gov. George Allen proposed that, over time, all lottery profits go to local governments. But his actual budget earmarked only $15 million. Legislators, who never wanted to part with the money, took even this away.
When Allen's budget showed lottery profits fattened by new, more alluring games, legislators of both parties recoiled in horror. But caught between a tight budget and the clamors of constituents for more, "family values" lost out. Now, apparently, whatever the lottery can raise from whatever scam is perfectly jake.
All politics is local.
The new budget builds on a recent tradition of having the state fund a vast variety of nonstate endeavors. We have reached the point where any body of citizens sufficiently determined can land a hook in the state budget.
In the spheres of cultural uplift and historic preservation, I count 78 entities now rating a line-item in the budget. These range from only a few thousand to more than $1 million for the Chrysler Museum in Norfolk and the Virginia Horse Center in Lexington. In the new budget, the state will dispense about $13 million to these private initiatives.
Last year and this, Allen tried to put the brakes on nonstate obligations - all to no avail. Legislators like playing Santa Claus and know it's good politics. You can certainly argue that a relatively small public investment that calls forth greater private philanthropy is a good thing. The problem is it warps our politics, favoring incumbents with demonstrated capacity to squeeze the public teat while reducing junior legislators who must plead with the lords of appropriations for a slice of pork to the status of mendicants.
In the case of virtually all nonstate agencies asking for money, the assembly gave more than the governor recommended while adding dozens he hadn't favored. And when the House and Senate differed, they generally settled on the higher figure.
Big Bird kayos the governor.
Like any good Republican, Allen is hostile to the idea of taxpayer support for public radio and television. In 1995, he tried taking an ax to the state grant and failed. That didn't deter a fresh effort in 1996, which also failed. In the new budget, the governor recommended $4.4 million in state support. The assembly promptly increased this by 50 percent. The audience for such programs may be relatively small but it is highly vocal - and organized. Of course, state money represents only a small portion of the cost of operating these stations, which is being met increasingly by private donors, as it should be.
The magic word is development.
All states and most localities now compete for the favor of business. Their bidding wars mightily assist those looking to expand, and the racket has reached the point where even long-established companies ask for incentives merely to stay put. It's no use complaining because it will only get worse.
Allen wanted $27 million for the Virginia Economic Development Partnership. The House threatened a substantial cut, but the conference committee settled on a reduction of only $300,000. It specified, however, that $1.8 million of that go to the Southside Virginia Business and Education Commission, Region 2000 (around Lynchburg) and various small-business centers. Having established a precedent, we may expect virtually every area of the state to put in for this money.
To promote Virginia's tourist attractions, Allen wanted $35 million. The assembly gave him all but $378,000, but continued its recent practice of earmarking funds for various pet projects. It mandated that $550,000 be spent promoting the Virginia State Games, the Virginia Amateur Sports Association and the Special Olympics.
Legislators also gave $250,000 to the Virginia Baseball Stadium Authority to study the feasibility of building a major-league park in Northern Virginia. The companion bill makes clear it will be built with tax-exempt bonds and be exempt from local taxes. In the squalid world of big-time sports, such concessions are now the minimum price of admission. We will be fortunate if that's all they ask.
Coal gets direct help.
While it won't show up in this budget, the assembly committed the state to give the coal industry about $37 million a year in tax credits, beginning in 1999. Backers said it would preserve between 3,000 and 5,000 jobs for as long as 10 years. They assume employment will continue to decline, only at a slower rate. Opponents - and they were few - argued the tax credit would have no significant impact on an industry where decisions will be ruled by far larger considerations.
It's always easy for one legislative body to make a commitment that a future body must fund. When the time comes, such commitments have a way of being postponed. This may be revisited when the assembly must actually find the money.
Coal-mining jobs in Virginia peaked at almost 16,000 in 1977. There are now fewer than 10,000. But coal production is actually greater. Unfortunately, it is bringing a substantially lower price. In view of these developments, you might have thought the United Mine Workers would have avoided the long and violent strike of the late '80s.
Ray L. Garland is a Roanoke Times columnist.
LENGTH: Long : 108 lines KEYWORDS: GENERAL ASSEMBLY 1996by CNB