WASHINGTON (Map, News) - Gov. Tim Kaine promised Tuesday that the spending plans he rolls out in two weeks will not include raising taxes, despite a hefty revenue shortfall in this year’s budget.

Kaine will brief the General Assembly’s money committees Dec. 17 on his budget proposals for fiscal 2009 and 2010.

He will also try to persuade lawmakers to support his approach to closing a $641 million shortfall the current fiscal year.

“You will not see a tax increase,” the Democrat said during the annual Associated Press Day at the Capital media briefing in Richmond. “Tax increases are like cicadas. They only come along every so often.”

Virginia’s last major tax increase came in 2004, when Democratic Gov. Mark Warner formed an alliance with moderate Republicans to enact a $1.4 billion package of increases.

Kaine’s plan to eradicate the shortfall combines about $300 million in spending reductions with a similarly sized withdrawal from Virginia’s budget-reserve account, known as the Rainy Day Fund. The idea has drawn stinging rebuke from Republicans, who prefer further reductions in government spending. They do not think the shortfall is large enough to merit a withdrawal from the fund.

“The Rainy Day Fund is for true fiscal crises,” House Speaker William Howell, R-Stafford, told The Examiner.

Revenue collections are expected to increase in fiscal 2009 and 2010, but Kaine may have difficulty finding the funds for the expansion of state-funded prekindergarten programs.

The governor has made the initiative his top goal for the 2008 session, but Republicans feel the proposal would lead to the state subsidizing day care for upper- and middle-class families.

Kaine is also expected to clash with conservative Republicans and rural Democrats over legislation to close a loophole in state law that does not require background checks for individuals buying firearms at gun shows.

jrogalsky@dcexaminer.com

Comments from Examiner Readers

1:41 PM MST on Wed., Mar. 26, 2008 re: "Kaine signs tax refund law; paybacks should start in April"

Jason said:
Taxation without representation. Hello! We fought a war over this! I thought that the sales tax being raised to 5% was suppose to take care of all our road problems? Another government LIE! Keep drinking the Koolaid people. You won't be happy until you are shoved into a FEMA camp!

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9:24 AM MST on Wed., Mar. 26, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
To the Examiner reader who obviously does not know what a commonwealth is. Northern VA and Hampton Roads taxes have built all the roads and schools in the rest of the state. For every $1 I send in taxes to Richmond they send ony .25 back to NoVa for schools and roads. That means that you are living off of my .75 as welfare. So, now that we want more money you think it is unfair for us to ask for it? You are absolutely correct. The State of Northern VA would be a fantasitic idea. Only problem is that the rest of VA would turn into WVA and be dirt poor.

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6:57 AM MST on Tue., Mar. 25, 2008 re: "Taxpayers face different systems to receive $24 million in refunds"

GMU92 said:
What a colossal mess. They shouldn't have collected a dime until a ruling was handed down by the VA Supreme Court. It's gonna take 3 months to return property and registration fees? Good grief, that data is readily available to them. And now people have to go rummaging around for old receipts from car rentals and hotel rooms? You know some of these people will never know to apply and won't see that money ever again. Wow, the Commonwealth messed this one up badly.

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5:04 AM MST on Tue., Mar. 25, 2008 re: "Taxpayers face different systems to receive $24 million in refunds"

Abolish the NVTA said:
Are the victims of the illegal NVTA taxes going to receive market rate interest on the monies that were taken from them? After all, there is a time value to money. The NVTA apparently didn't have a very good accounting system in place if they can't issue refunds directly and efficiently. This is yet another example of their sheer ineptitude and arrogance. The NVTA should follow in the footsteps of their "sister" organization in Hampton Roads and shut down AFTER refunding the people's monies.

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10:04 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Chambek said:
If our elected officials would spend some time working out ways to spend OUR money better, we would not be in this predicament. Their answer to everything is to seek out a new revenue source. They have wasted lots of time and lots of OUR money throwing new taxes against the wall to see what sticks. Gov. Kaine shows little regard for Virginians. He is using use to advance his political career as a tax and spend democrat. I guess we really have only ourselves to blame - we put him in office. Fool me once .......

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9:50 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
NOVA sends more revenue to the State than it receives back. If the entire State isn't going to be taxed to fix this transportation crisis, then the formula should be changed so that NOVA isn't supporting the rest of the state. I support a gas tax increase - how would we even feel it when it's buried in the monthly 10 cent a gallon hikes we've had for the past two years? The other option is to cut spending. Just ignoring the issue is NOT an option. The House needs to govern!

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9:06 AM MST on Thu., Mar. 6, 2008 re: "Northern Virginians brace for seven new taxes, fees"

Examiner Reader said:
We are being taxed out of the area. The cost of living is getting out of control and I really don't know why that is always the answer to everything. Maybe they need to start looking into what they are paying themselves and start the cuts there.

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8:34 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
The General Assembly needs to approve a .5 cents a gallon gas tax. The gas tax has not been increased since the early 80's and the cost for maint. and everything else has increased. Lets get real it's economics.

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8:25 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
My comment regards the issues of raising money for road funding ONLY in the Northern Virginia and Hampton Roads area. Why the should the entire state have to suffer with any extra taxes if the only people to benefit are the ones in the two areas mentioned? How would citizens located in Central, South and Southwest Virginia personally benefit other than have less money to spend in an already high unemployment area? Maybe this talk a few years ago about how Northern Virginia was considering to be a separate entity from the rest of the State (Northern Virginia and Virginia) should be resurrected and re-hashed over again. You would then have two budgets.

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9:41 AM MST on Mon., Dec. 31, 2007 re: "Kaine promises no new taxes despite shortfall"

Examiner Reader said:
Just got to love Kaine's scare tactics. He needs to cut spending and take his pet project off the table to have any chance of passing a non tax raising budget. Chris

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9:35 AM MST on Mon., Dec. 31, 2007 re: "Northern Virginians brace for seven new taxes, fees"

Examiner Reader said:
Kaine is raising taxes just like Maryland's Gov. O'Malley. Thankfully Virginia has more sense and will elect a Republican governor in 2008. Chris

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8:52 AM MST on Mon., Dec. 31, 2007 re: "Northern Virginians brace for seven new taxes, fees"

Examiner Reader said:
Are you old enough to remember the most successful toyota commercial You got it ! TOYOTA ? Well remember what they said NoVa had new demographics of more liberal voters moving in from all over the country. Now you see what happens? Watch these little maggots squirm when they have to flip a few dollars more. Especially those in the government jobs, I mean they are the cheapest SOB's in the metro area./ Now I want to see when those Pentagon layoffs come how thy are going to get a compete for a real job/ They will have to compete with those illegals they wanted here for cheap labour. hahaha

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12:04 AM MST on Thu., Dec. 6, 2007 re: "Kaine promises no new taxes despite shortfall"

Examiner Reader said:
That old 70;s song is back "Here comes that Rainy day feeling again" Kaino will surely get his money after the Jan session opens, they do it the old fashioned way, they just up your taxes

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