On paper, Virginia maintains a balanced budget. But government indebtedness is expanding faster than any single budget category — including the much-debated cost of Medicaid.
Debt-service expenditures jumped 120 percent since 2006, reports Jim Regimbal, principal of Fiscal Analytics Ltd., in Richmond.
“We’re no longer doing pay as you go,” Regimbal told Watchdog.org. Debt-service expenditures, now around $600 million annually, will rise to $700 million within two years, he projected.
The problem is trickling down in a big way.
In 2012, the state Auditor of Public Accounts reported that Virginia counties carried a combined debt of $15 billion. An APA advisory panel recommended the agency no longer disclose debt figures, purportedly to give government spenders “more leeway.”
Regimbal says, “It’s time for a reboot” – and that means more private-sector jobs to grow Virginia’s economy.
“The government engine is over. We have to become an innovative economy, not a ‘managerial’ one.”
Watchdog reported earlier this month the state suffered more than 2,000 private-sector layoffs since May.
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