House and Senate slash $500 million in budget

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Virginia (Map, News) - Facing declining revenues next year, the House Appropriations Committee on Friday cut even more deeply into Gov. Martin O'Malley $31 billion budget than their Senate counterparts, slicing almost $500 million. Republican delegates offered even more cuts than their Democratic colleagues could live with.

The Senate approved their own $390 million in cuts in a 38 to 7 vote, with seven Republicans opposing the state spending plan. Senate President Thomas Mike Miller rushed a quick vote on the spending plan, leaving Republicans sputtering in frustration as they were left with only two minutes a piece to explain their votes, rather than a full-scale debate.

The House committee accepted most of the cuts made by the Senate, usually on the basis of the recommendations of the same nonpartisan budget analysts who pick apart the budget for both houses.

The Senate cut about $226 million from the state's general fund and left about a balance of about $158 million, which would be in addition to about $739 million projected for the state's Rainy Day Fund. The total reserve would be about $900 million.

Major cuts included $39 million from university system, a $25 million reduction in the new Chesapeake Bay fund, $65 million in transfer from the transportation trust fund, and delays in funding the expansion of Medicaid health insurance coverage passed in the November special session.

In a major difference with the Senate, the House panel restored $10 million in cuts made to the state's stem cell research program, leaving $15 million to be handed out in grants to researchers. Del. Gail Bates, a Howard County Republican, tried to completely eliminate that funding, but subcommittee chairman John Bohanan said that would "send a bad message to researchers who are looking for consistency. It is a major hiccup (hiccough) in a very competitive industry."

In the Senate debate, Republican Leader David Brinkley said the cuts didn't go far enough, but was still voting for the measure that funds all of state government, even though "it pains me somewhat to do so."

With the economy souring, "I fear that we might have to come back with further reductions," Brinkley said, since state revenues may dip further.

Senate Minority Whip Allan Kittleman, one of the seven Republicans voting against the budget, said the high pay for O'Malley's executives found in the budget touched "a raw nerve" with the public. "People don't want to see their taxes raised and see people making $200,000 in this government."

Associated Press contributed to this report.

llazarick@baltimoreexaminer.com

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» 205 days ago: House and Senate slash $500 million in budget «

211 days ago: Virginia House, Senate fail to reach budget, likely head to overtime

226 days ago: Va. House budget would cut $400M from teacher salaries, critics warn

362 days ago: Republican legislators says Kaine misled them on shortfall’s size

412 days ago: Gov. Kaine orders spending cuts to help eliminate $641M shortfall