William C. Flook and Joe Rogalsky, The Examiner
2007-12-05 08:00:00.0
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WASHINGTON -

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