Difference between revisions of "Virginia state budget"

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{{budget infobox2|
{{budget infobox|
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| state = Virginia  
state = Virginia |
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| image = Flag of Virginia.png|
image = Flag of Virginia.png|
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| budgetcal =Biennial
budgetcal = Biennial |
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| fiscalyear =2012-2014
fiscalyear = 2013-2014 |  
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| credit=AAA (as of May 2012)
datelaw= May 16, 2012 |
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| percentchangedr =   
lasteraltered =  |
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| expenses =$17.7 billion
revenue = |
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| all funds expenses =$44.6 billion (FY 2013 estimate)
Percentchangedr = |
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| spending change =3.95%
Expenses = $16.34 billion|
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| change =up
Percentchanged = |
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| governor = Terry McAuliffe
}}
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| % federal = 23.53%
[[Virginia]] lawmakers approved the $85 billion budget for FY2013-14 on April 18, 2012, one month late.<ref name=passes>[http://www.washingtonpost.com/local/va-politics/virginia-senate-passes-two-year-budget-after-colgan-votes-with-republicans/2012/04/18/gIQA1ILuRT_story.html The Washington Post "Virginia Senate passes two-year budget after Colgan votes with Republicans" April 18, 2012]</ref>  The budget provides additional funding for public schools, hospitals and nursing homes than the original proposal, but it did not include additional funding for an extension of Metrorail to Dulles International Airport.<ref name=passes/>
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| state debt = $91,339,102,000
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| per cap debt = $11,158
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}}{{tnr|limit=3}}This page contains information about '''budget processes and policy issues''' in [[Virginia]], including:
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* A summary of the budget drafting process
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* Trends in expenditures and revenues
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* Current and past fiscal year budget developments
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* Financial transparency measures
  
The state operates on a biennial budget cycle, which currently encompasses FY2013 and FY2014.<ref>[http://www.ncsl.org/issues-research/budget/state-experiences-with-annual-and-biennial-budgeti.aspx National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011]</ref> The fiscal year begins on July 1.
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Between fiscal year 2009 and fiscal year 2013, Virginia's total expenditures increased by approximately $3.8 billion, from $40.8 billion in 2009 to $44.6 billion in 2013. This represents an 8.52 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).<ref>[http://www.bls.gov/cpi/cpid1402.pdf ''Bureau of Labor Statistics'', "CPI Detailed Report Data for February 2014," accessed April 9, 2014]</ref><ref>[http://inflationdata.com/Inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx ''InflationData.com'', "Cumulative Inflation Calculator," February 28, 2014]</ref>
  
In FY 2012 Virginia had a total state debt of approximately $64,314,401,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the budget gap.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-third-annual-state-debt-report-shows-total-state-debt-over-4-trillionState Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012]</ref> The FY2013 state debt is down slightly from the prior year's total of approximately $65,105,037,000.<Ref>[http://www.statebudgetsolutions.org/publications/detail/report-reveals-aggregate-state-debt-exceeds-4-trillion-2 State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011]</ref>
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==Budget process==
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{{Virginia budget process}}
  
Virginia's total state debt per capita is $7,943.38.<ref>[http://www.statebudgetsolutions.org/publications/detail/state-debt-more-than-37000-per-private-worker-13000-per-capita State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012]</ref>
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==Expenditures==
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===Definitions===
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{{Budget types background}}
 +
===2013 expenditures===
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[[File:Virginia total expenditures 2013.png|right|thumb|500px|Breakdown of expenditures in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
  
:: ''See also: [http://www.statebudgetsolutions.org/state/detail/virginia The Virginia State Budget on State Budget Solutions]''
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="7" align="center" style="background-color:#008000; color: white;" | Total state expenditures, FY 2013 ($ in millions)<ref name=expenditures2013/>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | General fund
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Other funds
 +
! valign="bottom" style="background-color:#444; color: white;" | Bonds
 +
! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita expenditures**
 +
|-
 +
|'''Virginia''' || '''$17,691''' || '''$9,546''' || '''$16,191''' || '''$1,167''' || '''$44,595''' || '''$5,398.65'''
 +
|-
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|[[Kentucky state budget|Kentucky]] || $9,426 || $8,001 || $8,246 || $0 || $25,673 || $5,841.02
 +
|-
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|[[North Carolina state budget|North Carolina]] || $20,602 || $17,459 || $12,543 || $785 || $51,389 || $5,218.19
 +
|-
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|[[Tennessee state budget|Tennessee]] || $12,622 || $13,055 || $5,394 || $382 || $31,453 || $4,841.92
 +
|-
 +
|[[West Virginia state budget|West Virginia]] || $4,159 || $4,394 || $14,736 || $74 || $23,363 || $12,599.34
 +
|-
 +
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==Federal Aid to State Budget==
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===Expenditures by function===
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[[File:Virginia expenditures by type 2012.png|right|thumb|500px|Breakdown of expenditures by function in FY 2012.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
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State expenditures in Virginia can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
  
The chart below represents how much of the state’s budget comes from the federal government. The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
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{| class="wikitable" style="text-align:center; width:55%;"
{| class="wikitable sortable"
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! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures by function, FY 2012 (as percents)<ref name=expenditures2013/>
| align="center" style="background:#f0f0f0;"|'''State'''
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| align="center" style="background:#f0f0f0;"|'''2008'''
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| align="center" style="background:#f0f0f0;"|'''2009'''
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| align="center" style="background:#f0f0f0;"|'''2010'''
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| align="center" style="background:#f0f0f0;"|'''2011'''
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|-
 
|-
| Virginia || 20.5% (#46) ||| 22.9% (#49) || 26.35% (#50) || 26.82% (#47)
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! valign="bottom" style="background-color:#444; color: white;" | State
|}
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! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
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! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
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! valign="bottom" style="background-color:#444; color: white;" | Public assistance
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! valign="bottom" style="background-color:#444; color: white;" | Medicaid
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! valign="bottom" style="background-color:#444; color: white;" | Corrections
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! valign="bottom" style="background-color:#444; color: white;" | Transportation
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! valign="bottom" style="background-color:#444; color: white;" | Other
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|-
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|'''Virginia''' || '''16.0%''' || '''13.1%''' || '''0.4%''' || '''16.2%''' || '''2.9%''' || '''11.3%''' || '''40.1%'''
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|-
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|[[Kentucky state budget|Kentucky]] || 19.8%''' || 25.7% || 0.9% || 22.5% || 2.4% || 8.9% || 19.8%
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|-
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|[[North Carolina state budget|North Carolina]] || 23.2% || 9.0% || 0.5% || 24.7% || 4.2% || 9.9% || 28.4%
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|-
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|[[Tennessee state budget|Tennessee]] || 17.7% || 12.8% || 0.4% || 30.7% || 2.7% || 6.4% || 29.3%
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|-
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|[[West Virginia state budget|West Virginia]] || 10.8% || 14.1% || 0.7% || 12.7% || 1.0% || 5.8% || 54.9%
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|-
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|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
==Fiscal Years 2013-14 Biennial State Budget==
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===Expenditure trends===
 +
From 2008 to 2012, expenditures on higher education and Medicaid increased by 0.2 percent and 1.1 percent respectively. During that same time period, expenditures on elementary and secondary education, corrections and transportation decreased between 0.8 and 3.3 percent. The table below details changes in expenditures from 2008 to 2012.<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref><ref name=expenditures2012>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report%20%28Fiscal%202010-2012%29.pdf ''National Association of State Budget Officers'', "State Expenditures Report, 2010-2012," accessed February 24, 2014]</ref><ref name=expenditures2009>[http://www.nasbo.org/sites/default/files/2009-State-Expenditure-Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009," accessed February 24, 2014]</ref><ref name=expenditures2008>[http://www.nasbo.org/sites/default/files/FY08%20State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2008," accessed February 24, 2014]</ref> Figures are rendered as percents, indicating the share of the total budget spent per category.
  
The  $85 billion budget became law on June 11, 2012.<ref>[http://www.washingtonpost.com/business/economy/as-state-revenues-recover-health-costs-remain-a-burden/2012/06/11/gJQAQhSJWV_story.html The Washington Post "As state revenues recover, health costs remain a burden" June 11, 2012]</ref>
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Expenditures from 2008 to 2012 (as percents)
 +
|-
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! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Elementary and secondary ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Higher ed.
 +
! valign="bottom" style="background-color:#444; color: white;" | Public assistance
 +
! valign="bottom" style="background-color:#444; color: white;" | Medicaid
 +
! valign="bottom" style="background-color:#444; color: white;" | Corrections
 +
! valign="bottom" style="background-color:#444; color: white;" | Transportation
 +
! valign="bottom" style="background-color:#444; color: white;" | Other
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|-
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|2012 || 16.0% || 13.1% || 0.4% || 16.2% || 2.9% || 11.3% || 40.1%
 +
|-
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|2011 || 15.8% || 15.3% || 0.1% || 16.9% || 3.0% || 10.2% || 38.6%
 +
|-
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|2010 || 16.7% || 15.6% || 0.5% || 16.1% || 3.2% || 9.2% || 38.7%
 +
|-
 +
|2009 || 18.0% || 16.3% || 0.5% || 15.2% || 3.6% || 10.5% || 35.9%
 +
|-
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|2008 || 19.3% || 12.9% || 0.4% || 15.1% || 4.2% || 12.1% || 36.0%
 +
|-
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|style="background-color:black; color:white"|'''Change in %'''
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| style="background-color:black; color:white" align="center"|'''-3.30%''' || align="center" style="background-color:black; color:white"|'''0.20%'''|| align="center" style="background-color:black; color:white"| '''0%''' || align="center" style="background-color:black; color:white"|'''1.10%''' ||align="center" style="background-color:black; color:white"| '''-1.30%''' || align="center" style="background-color:black; color:white"|'''-0.80%''' || align="center" style="background-color:black; color:white"|'''4.10%'''
 +
|-
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|align="left" colspan="8" | <small>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
'''FY2014 Review'''
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==Revenues==
 +
===2013 revenues===
 +
[[File:Virginia GF revenues 2013.png|right|400px|thumb|Breakdown of general fund revenue sources in FY 2013.<small><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>]]
 +
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).<ref name=expenditures2013>[http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2011-2013," accessed February 21, 2014]</ref> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
After the General Assembly reconvenes in January, Virginia's FY2013-14 state budget will be reviewed and modified, as is custom. Gov. Bob McDonnell told state agency heads to ready plans to cut 4 percent from their budgets as a contingency against the "fiscal cliff" and rising health care costs.<ref>[http://hamptonroads.com/2012/11/mcdonnell-calls-state-budget-cuts-citing-fiscal-cliff The Virginian-Pilot "McDonnell calls for state budget cuts, citing 'fiscal cliff'" Nov. 9, 2012]</reF>
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{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, FY 2013 ($ in millions)<ref name=expenditures2013/>
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|-
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! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
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! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
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! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
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! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
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! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
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! valign="bottom" style="background-color:#444; color: white;" | Total
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! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
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|-
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|'''Virginia''' || '''$3,249''' || '''$11,093''' || '''$821''' || '''$0''' || '''$1,259''' || '''$16,421''' || '''$1,987.92'''
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|-
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|[[Kentucky state budget|Kentucky]] || $3,022 || $3,723 || $401 || $0 || $2,202 || $9,348 || $2,126.82
 +
|-
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|[[North Carolina state budget|North Carolina]] || $5,309 || $10,958 || $1,192 || $0 || $3,100 || $20,559 || $2,087.62
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|-
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|[[Tennessee state budget|Tennessee]] || $6,643 || $126 || $1,083 || $0 || $3,551 || $11,403 || $1,755.39
 +
|-
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|[[West Virginia state budget|West Virginia]] || $1,197 || $1,722 || $249 || $0 || $982 || $4,150 || $2,238.04
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|-
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| align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.<ref name=2013census>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk ''United States Census Bureau'', "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
'''Special Session'''
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===Revenue trends===
 +
The table below details the change in revenue sources in the general fund from 2009 to 2013.<ref name=expenditures2013/><ref name=expenditures2011/> Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
  
The [[Virginia General Assembly|General Assembly]] began the special session on March 21, 2012, with 12 negotiators — Republicans and Democrats, delegates and senators — meeting Richmond to try to draft the $85 billion biennial budget.<ref>[http://www.washingtonpost.com/local/dc-politics/round-2-the-showdown-over-virginias-budget/2012/03/19/gIQAN4xVRS_story.html The Washington Post "Round 2: The showdown over Virginia’s budget" March 21, 2012]</ref>  The two parties reached a deal on the second day of the special session. Republicans and Democrats agreed to move $60 million to schools, Medicare and toll relief, which were priorities for Democrats. The deal included plans to borrow $300 million  for the Metro-to-Dulles rail project.<Ref name=wp>[http://www.washingtonpost.com/blogs/virginia-politics/post/virginia-state-budget-standoff-ends/2012/03/22/gIQAg3x0TS_blog.html The Washington Post "Virginia state budget standoff ends" March 22, 2012]</ref> The budget also restores $1 million to poison-control centers, $455,000 for teen pregnancy prevention across the state, a 2 percent raise for state employees, and it restores $500,000 in funding that had been cut to public broadcasting..<ref name=approves/>
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{| class="wikitable" style="text-align:center; width:65%;"
 +
! colspan="8" align="center" style="background-color:#008000; color: white;" | Revenue sources in the general fund, Virginia ($ in millions)<ref name=expenditures2013/><ref name=expenditures2011>[http://www.nasbo.org/sites/default/files/2010%20State%20Expenditure%20Report_0.pdf ''National Association of State Budget Officers'', "State Expenditure Report, 2009-2011," accessed February 24, 2014]</ref>
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | Year
 +
! valign="bottom" style="background-color:#444; color: white;" | Sales tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Personal income tax
 +
! valign="bottom" style="background-color:#444; color: white;" | Corporate income tax
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! valign="bottom" style="background-color:#444; color: white;" | Gaming tax
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! valign="bottom" style="background-color:#444; color: white;" | Other taxes and fees
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! valign="bottom" style="background-color:#444; color: white;" | Total
 +
! valign="bottom" style="background-color:#444; color: white;" | Per capita revenue**
 +
|-
 +
|2013 || $3,249 || $11,093 || $821 || $0 || $1,259 || $16,421 || $1,987.92
 +
|-
 +
|2012 || $3,122 || $10,613 || $860|| $0 || $1,253 || $15,847 || $1,935.72
 +
|-
 +
|2011 || $3,012 || $9,944 || $822 || $0 || $1,261 || $15,039 || $1,855.33
 +
|-
 +
|2010 || $3,083 || $9,088 || $807 || $0 || $1,243 || $14,220 || $1,772.09
 +
|-
 +
|2009 || $2,903 || $9,481 || $648 || $0 || $1,283 || $14,315 || $1,816.03
 +
|-
 +
|style="background-color:black; color:white"|'''Change in %'''
 +
| style="background-color:black; color:white" align="center"|'''11.92%''' || align="center" style="background-color:black; color:white"|'''17.00%'''|| align="center" style="background-color:black; color:white"| '''26.70%''' || align="center" style="background-color:black; color:white"|'''N/A''' ||align="center" style="background-color:black; color:white"| '''-1.87%''' || align="center" style="background-color:black; color:white"|'''14.71%''' || align="center" style="background-color:black; color:white"|'''9.47%'''
 +
|-
 +
|align="left" colspan="8" | <small>**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.<ref name=2013census/><ref name=2009census>[https://www.census.gov/popest/data/historical/2000s/vintage_2009/index.html ''United States Census Bureau'', "Vintage 2009: Annual Population Estimates," accessed February 26, 2014]</ref><br>'''Source:''' [http://www.nasbo.org/ National Association of State Budget Officers]</small>
 +
|}
  
On March 22, 2012, the [[Finance Committee, Virginia State Senate|Senate Finance Committee]] approved the $85 billion plan and sent it to the full Senate for consideration.<ref name=wp/> The full Senate approved the budget with a vote of 35-4 on March 26, 2012.<Ref name=approves>[http://www.washingtonpost.com/local/dc-politics/virginia-senate-approves-state-spending-plan/2012/03/26/gIQAWs58cS_story.html The Washington Post "Virginia Senate approves state spending plan" March 26, 2012]</ref>
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==State budgets by year==
 +
{{See budget bill|Link=[https://solutions.virginia.gov/pbreports/rdPage.aspx?rdReport=BDOC2014_FrontPage 2014 Executive Budget Document]}}
 +
===Fiscal year 2014===
  
A conference committee convened to hammer out the differences between the Senate and House budgets, and then all 140 legislators will vote on the budget.<Ref name=wp/><Ref name=approves/> On April 5, 2012, the committee reached an agreement.  It does not include the $300 million for the Metrorail line to Dulles International Airport as well as $125 million in toll relief for Hampton Roads that the Senate had sought. The governor had opposed the additional funds for rail to Dulles. The negotiated budget also included $40 million in the budget for cost-of-competing fund to help Northern Virginia schools attract staff in an expensive market, with $28 million of that devoted to the first year; the Senate had sought $60 million.<ref name=reached/>
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[[Governor of Virginia|Governor]] [[Terry McAuliffe]] released his proposed budget for the 2014-2016 biennium on December 16, 2013. The budget proposed an operating budget of $47.5 billion for FY 2015 and $48.4 billion for FY 2016. Both years spent over $17 billion on education and over $13 billion on health and human resources.<ref>[https://solutions.virginia.gov/pbreports/rdPage.aspx?rdReport=BDOC2014_FrontPage ''2014 Executive Budget Document'', "Governor McDonnell's Proposed Budget for the 2014-2016 Biennum," December 16, 2013]</ref>
  
The Senate initially rejected the conference committee's bill on April 17, 2012.<ref>[http://www2.timesdispatch.com/news/news/2012/apr/17/10/mcdonnell-plans-quick-turnaround-on-budget-ar-1849004/ The Richmond Times Dispatch "UPDATE: Senate again spurns state budget" April 17, 2012]</ref> The following day, Sen. [[Charles Colgan|Charles Colgan]], a Democrat broke ranks and voted with Republicans.  The Senate approved the budget by a vote of 21-19 on April 18, 2012.<ref>[http://www.washingtonpost.com/local/va-senate-abruptly-passes-two-year-85b-budget-after-senior-dem-breaks-ranks/2012/04/18/gIQAS1otRT_story.html The Washington Post "Va. Senate abruptly passes two-year, $85B budget after senior Dem breaks ranks" April 18, 2012]</ref>
+
===Fiscal year 2013===
 +
::''See also: [[Virginia state budget (2013-2014)]]
  
The governor proposed 100 amendments to the budget agreement, 72 of which the legislature approved on May 13, 2012 The legislature rejected those amendments considered most "key" to the governor's plan, including one permitting the governor to divert surplus general funds for transportation.  Lawmakers did approve the governor's amendment that appropriates $2 million to lure filmmakers to Virginia.<ref>[http://www.washingtonpost.com/local/dc-politics/virginia-lawmakers-reject-key-budget-amendments/2012/05/14/gIQAGr3qPU_story.html The Washington Post "Virginia lawmakers reject key budget amendments" May 14, 2012]</ref>
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===Fiscal year 2012===
 +
::''See also: [[Virginia state budget (2011-2012)]]
  
The governor signed the budget on June 11, 2012.  The governor vetoed one amendment to the budget that would have prohibited him from using future surpluses for transportation maintenance.  The governor marked another amendment, one that requires a commission made up of legislators to approve disbursements from a new fund set up as a hedge against declining federal support, as “unconstitutional,” meaning the executive branch won’t enforce it.<ref>[http://www.washingtonpost.com/business/economy/as-state-revenues-recover-health-costs-remain-a-burden/2012/06/11/gJQAQhSJWV_story.html The Washington Post "As state revenues recover, health costs remain a burden" June 11, 2012]</ref>
+
===Fiscal year 2011===
 +
::''See also: [[Virginia state budget (2010-2011)]]
  
'''Legislative Proposed Budget'''
+
===Fiscal year 2010===
 +
::''See also: [[Virginia state budget (2009-2010)]]
  
On March 1, 2012, the House of Delegates introduced its third version of the state's $85 billion biennial budget after the Senate failed to approve its first two attempts. The chamber permitted the budget to be re-introduced by unanimous consent. The full House is to debate the budget March 2 and it would head to the Senate on March 5, 2012.<ref>[http://www.washingtonpost.com/blogs/virginia-politics/post/va-house-introduces-third-state-budget/2012/03/01/gIQAb9ookR_blog.html The Washington Post "Va. House introduces third state budget" March 1, 2012]</ref>
+
==Historical spending==
 +
State budget historical spending below was compiled by the [[National Association of State Budget Officers]]. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).<ref name=expenditures2013/><ref name=expenditures2012/>
 +
{{State budget historical spending
 +
|State=Virginia
 +
|totalbudgets= 3
 +
|2011-2012genfund=16986
 +
|2011-2012otherfund=15943
 +
|2011-2012fedfund=9212
 +
|2011-2012bonds=1284
 +
|2011-2012budgettotal=43425
 +
|2010-2011genfund=16435
 +
|2010-2011otherfund=14839
 +
|2010-2011fedfund=9832
 +
|2010-2011bonds=1364
 +
|2010-2011budgettotal=42470
 +
|2009-2010genfund=14989
 +
|2009-2010otherfund=15001
 +
|2009-2010fedfund=9328
 +
|2009-2010bonds=1456
 +
|2009-2010budgettotal=40774
 +
}}
  
Democrats in the Virginia Senate's $85 billion biennial state budget rejected the proposed budget on Feb. 23, 2012, after they were rebuffed in their bid for a share of power in the evenly divided chamber. Democrats had sought more seats on committees and co-chairmanship of the powerful Finance Committee. The budget needed 21 votes to pass, but was defeated 20-17, with 3 Democrats not voting.<Ref>[http://washington.cbslocal.com/2012/02/23/virginia-senate-rejects-state-budget-in-partisan-dispute/ CBS Local "Virginia Senate Rejects State Budget In Partisan Dispute" Feb. 2, 2012]</ref>
+
==State debt==
 +
According to a January 2014 report by the nonprofit organization [[State Budget Solutions]], Virginia had a state debt of over $91 billion. Its state debt per capita was $11,158. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded [[public pensions]].<ref>[http://www.statebudgetsolutions.org/publications/detail/state-budget-solutions-fourth-annual-state-debt-report ''State Budget Solutions'', "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014]</ref><ref>[http://washingtonexaminer.com/exography-unfunded-public-employee-pensions-are-driving-state-debts-skyward/article/2542548 ''Washington Examiner'', "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014]</ref>
 +
{{State debt box
 +
|State = Virginia
 +
|totaldebt=$91,339,102,000
 +
|totaldebtrank=15
 +
|percapdebt=$11,158
 +
|percapdebtrank=41
 +
|expenditures =$32,929,000,000
 +
|expendituresrank =40
 +
}}
  
The Senate deadlocked on Feb. 28, 2012 when Senate voted to approve the biennial budget bill, [http://lis.virginia.gov/cgi-bin/legp604.exe?121+sum+HB30 House Bill 30], with a vote of only 20-19.  Twenty-one votes are needed for approval, and the Lieutenant Governor per the state constitution cannot vote on revenue or appropriation bills. Options remain for introducing a new budget, but senior lawmakers say it would be futile without a truce between Senate Democrats and Republicans.<ref>[http://www.washingtonpost.com/local/va-senate-deadlocks-in-partisan-dispute-kills-last-state-budget-version-finances-in-limbo/2012/02/29/gIQAlRPaiR_story.html The Washington Post "Va. Senate deadlocks in partisan dispute, kills last state budget version; finances in limbo" Feb. 29, 2012]</ref>
+
===Public pensions===
 +
::''See also: [[Virginia public pensions]] and [[Virginia public employee salaries]]''
  
On March 9, 2012, the day before the regular legislative session was scheduled to adjourn, lawmakers voted unanimously in both the [[Virginia House of Delegates|House of Delegates]] and [[Virginia State Senate|Virginia Senate]] to allow the legislature to continue consideration of the spending plan in a special session.<ref>[http://www2.timesdispatch.com/news/2012/mar/09/6/house-senate-heading-to-special-session-on-state-b-ar-1753601/ The Richmond Times Dispatch "House, Senate heading to special session on state budget" March 9, 2012]</ref>  A conference committee reached an agreement on April 5, 2012.<ref name=reached>[http://www.washingtonpost.com/blogs/virginia-politics/post/state-budget-negotiations-continue-in-richmond/2012/04/05/gIQAOIRYxS_blog.html The Washington Post "State budget deal reached in Richmond" April 5, 2012]</ref>  The Senate approved the budget on April 18, 2012 by a vote of 21-19.<ref>[http://www.washingtonpost.com/local/va-senate-abruptly-passes-two-year-85b-budget-after-senior-dem-breaks-ranks/2012/04/18/gIQAS1otRT_story.html The Washington Post "Va. Senate abruptly passes two-year, $85B budget after senior Dem breaks ranks" April 18, 2012]</ref>  
+
A 2012 report from the Pew Center on the States noted that [[Virginia public pensions|Virginia's pension system]] was funded at 72 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."<ref name=vapew>[http://www.pewstates.org/research/state-fact-sheets/the-widening-gap-update-virginia-85899399355 ''Pew Center on the States'' "Widening Gap Update: Virginia," June 18, 2012]</ref>
  
 +
The funding ratio for the state's pension system decreased from 80.20 percent in fiscal year 2006 to 69.46 percent in fiscal year 2011, a 10.74 percent drop. Likewise, unfunded liabilities increased from approximately $10.9 billion in fiscal year 2006 to nearly $24 billion in fiscal year 2011.
  
'''Governor's Proposed Budget'''
+
===Credit ratings===
 +
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.<ref name=credit>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 ''Stateline: The Daily News Service of The Pew Charitable Trusts'', "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012]</ref>
  
Gov. [[Bob McDonnell|Bob McDonnell]]'s proposed state budget for FY2013-14 can be found online.<ref>[http://www.governor.virginia.gov/news/viewRelease.cfm?id=1059 Governor McDonnell's Proposed FY13-14 Budget]</ref>.  All together, the spending plan totals $85 billion.  It does not include tax increases but includes a $10 million in fee hikes for Department of Motor Vehicle services.<ref name=calls>[http://hamptonroads.com/2011/12/gov-mcdonnell-calls-nearly-900m-budget-cuts The Virginian-Pilot "Gov. McDonnell calls for nearly $900M in budget cuts" Dec. 19, 2011]</ref>  The general fund from state taxes spent on core services such as public safety, health care and public schools totals $34.5 billion, approximately the same as FY2008.<Ref name=key>[http://www.washingtonpost.com/business/economy/key-points-of-gov-bob-mcdonnells-new-virginia-budget-for-2012-14/2011/12/19/gIQA9hNO4O_story.html The Washington Post "Key points of Gov. Bob McDonnell’s new Virginia budget for 2012-14" Dec. 19, 2011]</ref>
+
The table below lists the Standard and Poor's credit ranking for Virginia from 2001 to 2012 (grades from surrounding states are provided for additional context).<ref name=credit/>
  
Spending increases include:
+
{| class="wikitable" style="text-align:center; width:55%;"
 +
! colspan="6" align="center" style="background-color:#008000; color: white;" | S&P credit ratings from 2001 to 2012
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" |
 +
! valign="bottom" style="background-color:#444; color: white;" | '''Virginia'''
 +
! valign="bottom" style="background-color:#444; color: white;" | Kentucky
 +
! valign="bottom" style="background-color:#444; color: white;" | North Carolina
 +
! valign="bottom" style="background-color:#444; color: white;" | Tennessee
 +
! valign="bottom" style="background-color:#444; color: white;" | West Virginia
 +
|-
 +
| 2012 || AAA || AA- || AAA || AA+ || AA
 +
|-
 +
| 2011 || AAA || AA- || AAA || AA+ || AA
 +
|-
 +
| 2010 || AAA || AA- || AAA || AA+ || AA
 +
|-
 +
| 2009 || AAA || AA- || AAA || AA+ || AA
 +
|-
 +
| 2008 || AAA || AA- || AAA || AA+ || AA-
 +
|-
 +
| 2007 || AAA || AA- || AAA || AA+ || AA-
 +
|-
 +
| 2006 || AAA || AA- || AAA || AA+ || AA-
 +
|-
 +
| 2005 || AAA || AA- || AAA || AA || AA-
 +
|-
 +
| 2004 || AAA || AA- || AAA || AA || AA-
 +
|-
 +
| 2003 || AAA || AA- || AAA || AA || AA-
 +
|-
 +
| 2002 || AAA || AA- || AAA || AA || AA-
 +
|-
 +
| 2001 || AAA || AA || AAA || AA || AA-
 +
|-
 +
|}
  
*$2.2 billion previously announced boost in employer contributions to the underfunded Virginia Retirement System, about half of which comes from city and county governments,
+
==Federal aid to state budget==
*$650 million for increased use of Medicaid,
+
::''See also: [[Federal aid to budgets in the 50 states]]''
*$438 million net increase for public education, most of it to meet revised minimum curriculum benchmarks under state law including classroom staffing ratios and teacher salaries,
+
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.<ref name=federalaid>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=COG_2012_FIN009&prodType=table ''United States Census Bureau'', "State Government Finances: 2012," accessed February 24, 2014]</ref>
*$230 million previously announced for higher education to offset rising tuition rates, and much of that support to math, science, engineering, technology and healthcare curricula at colleges where state support declined over the years. That commitment follows passage this year of higher education reform legislation backed by the administration,<ref name=calls/>  
+
*$100 million for economic development, including about $60 million for commitments already made to businesses in years past and $40 million for new, ongoing efforts to recruit business,
+
*$30 million for more community-based mental health care.<ref name=key/>
+
  
The governor made nearly $900 million in spending cuts<ref name=calls/> and found savings for the budget, including:
+
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, [[Mississippi state budget#Federal aid to state budget|Mississippi]] received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, [[Alaska state budget#Federal aid to state budget|Alaska]] received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.<ref name=federalaid/>
*$258.6 million saved by not funding inflation costs for hospital rates under Medicaid,
+
*$65 million from not allowing Medicaid inflation increases for nursing homes,
+
*$109 million from eliminating the allowance for inflation growth in non-classroom public school support services,
+
* $108 million in expiring federal stimulus money for public schools that the state will not replace,
+
*$81 million saved by limiting Virginia Preschool Initiative,
+
* $65 million cut from the state stipend that helped school districts retain non-instructional support and administrative employees from poaching by rival school systems,
+
*$29.9 million continues reductions for indigent care at state-supported teaching hospitals,
+
*$18.2 million cut in the Department of Medical Assistance Services by lowering income limits for eligibility for long-term care.<ref name=key/>
+
  
The governor also offered an investor tax credit to provide working capital to small businesses.<Ref>[http://www.businessweek.com/news/2012-01-31/governors-seeking-jobs-offer-tax-breaks-as-budget-woes-ease.html Businessweek  "Governors Seeking Jobs Offer Tax Breaks as Budget Woes Ease" Jan. 31, 2012]</ref>
+
{| class="wikitable" style="text-align:center; width:50%;"
 +
! colspan="4" align="center" style="background-color:#008000; color: white;" | Federal aid to state budgets in 2012
 +
|-
 +
! valign="bottom" style="background-color:#444; color: white;" | State
 +
! valign="bottom" style="background-color:#444; color: white;" | Federal aid as % of general revenue
 +
! valign="bottom" style="background-color:#444; color: white;" | Total federal aid
 +
! valign="bottom" style="background-color:#444; color: white;" | National rank
 +
|-
 +
| '''Virginia''' || '''23.53%''' || '''$9,278,113,000''' || '''48'''
 +
|-
 +
| [[Kentucky state budget|Kentucky]] || 35.69% || $8,056,691,000 || 14
 +
|-
 +
| [[North Carolina state budget|North Carolina]] || 33.24% || $15,192,577,000 || 26
 +
|-
 +
| [[Tennessee state budget|Tennessee]] || 41.02% || $11,198,575,000 || 3
 +
|-
 +
| [[West Virginia state budget|West Virginia]] || 34.71% || $4,267,399,000 || 19
 +
|-
 +
|}
 +
 +
===Stimulus===
 +
Virginia received $3.3 billion in federal funding between February 2009 and June 2013.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery.gov'', "Stimulus Spending by State," accessed February 21, 2014]</ref>
  
Gov. McDonnell asked state agency heads to suggest cuts for FY2013-14 equal to two, four and six percent of their 2012-14 general fund appropriation.  The governor told the heads of the agencies, "Do not hesitate to suggest program or service eliminations even if they are required by current state law."<ref>[http://www2.timesdispatch.com/news/2011/oct/04/mcdonnell-warns-agencies-to-prepare-for-stern-budg-ar-1357884/ The Richmond Times Dispatch "McDonnell warns agencies to prepare for stern budget" Oct. 4, 2011]</ref>
+
The state received approximately $540 million from the federal government under [http://thomas.loc.gov/cgi-bin/query/D?c111:7:./temp/~c11109gS64:: H.R. 1586], a $26 billion plan to give states money for Medicaid and education that the president signed into law on August 10, 2010.<ref>[http://www.ffis.org/ ''Federal Fund Information for States'', “ARRA FMAP Extension & Education Jobs Fund Totals,” August 11, 2010]</ref>
  
The governor's $2.2 proposed pension payment falls $600 million short of what state retirement officials say is needed to address a multi-billion hole.  The governor assume higher stock market gains than the pension professionals<ref>[http://virginia.watchdog.org/3057/va-gov%E2%80%99s-pension-payout-includes-600m-deferred/ Old Dominion Watchdog "VA gov’s pension payout includes $600M deferred" Feb. 2012]</ref>
+
==Budget transparency==
 
+
{| class="wikitable" style="float:right; margin:1em 1em 1em 1em; text-align:center; width:15%;"
==Fiscal Years 2011-12 Biennial State Budget==
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Transparency evaluation
 
+
|-
The state finished FY2012 with a surplus of $448.5 million as the result of both higher-than-anticipated revenues and a reduction in spending by agencies. The governor said he would use the surplus money to give state employees a 3 percent bonus to state workers who have not had a pay raise in five years.<ref>[http://www.washingtonpost.com/local/va-politics/virginia-surplus-will-fund-bonuses-for-state-workers/2012/08/15/6cd52ada-e70c-11e1-a3d2-2a05679928ef_story.html The Washington Post "Virginia surplus will fund bonuses for state workers" Aug. 15, 2012]</ref>
+
! valign="bottom" style="background-color:#444; color: white;" |
 
+
! valign="bottom" style="background-color:#444; color: white;" | Commonwealth Data Point
In August 2011, Gov. McDonnell announced that the state ended FY2011 with a surplus of $544.8 million.  The governor had original said that the state had a surplus of around $310 million, but in a speech to legislators he said his administration had saved an additional $234 million.  Virginia law calls for the bulk of the money to be put into the state’s rainy day fund and spent on K-12 education, transportation and Chesapeake Bay cleanup.<ref>[http://www.washingtonpost.com/blogs/virginia-politics/post/mcdonnell-announces-5448-million-budget-surplus/2011/08/18/gIQATrITNJ_blog.html The Washington Post "McDonnell announces $544.8 million budget surplus" Aug. 18, 2011]</ref> The surplus announcement, however, did not mention that the commonwealth still needs to pay back the money it borrowed from the retirement fund for state workers or that the state had not repaid half a billion that it borrowed from the federal government for unemployment insurance.<ref>[http://www2.timesdispatch.com/news/rtd-opinion/2011/sep/12/tdopin01-surplusterisk-ii-ar-1301541/ The Richmond Times Dispatch "State Budget: Surplusterisk II" Sept. 12, 2011]</reF>
+
|-
 +
|[[Criteria for evaluating databases|Searchability]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Grants]] || {{No (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Contracts]] || {{No (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Line item expenditures]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Dept./agency budgets]] || {{Yes (Sunshine Review)}}
 +
|-
 +
|[[Criteria for evaluating databases|Public employee salaries]] || {{No (Sunshine Review)}}
 +
|-
 +
|colspan="2"|<small>Last evaluated in 2009.</small>
 +
|}
 +
::''See also: [[Evaluation of Virginia state website]] and [[Constitutional provisions regarding reading of bills]]''
  
Income taxes constitute two-thirds of Virginia’s total general revenues.<ref>[http://www.washingtonpost.com/local/what-budget-crisis-virginia-revenues-outpacing-2010-levels-increase-78-percent-for-august/2011/09/15/gIQAvkrnUK_story.html The Washington Post "What budget crisis? Virginia revenues outpacing 2010 levels, increase 7.8 percent for August" Sept. 15, 2011]</ref>
+
[[Virginia]] has partial spending transparency through its website Open.Virginia.gov, which includes [http://datapoint.apa.virginia.gov/index.cfm Commonwealth Data Point.] However, as noted in the chart to the right, Virginia's database falls short of certain transparency standards. One shortcoming is that Commonwealth Data Point does not provide any means of viewing state contracts or grants. While line item expenditures are provided, a 2009 article wrote that "extracting usable information from the site isn't easy." Data Point records individual transactions, but with very little if any data, explaining why the state spent the funds."<ref>[http://www.nvdaily.com/news/2009/01/bill-would-make-state-spending-transparent.html ''Northern Virginia Daily'', "Bill would make state spending transparent," January 20, 2009]</ref>
  
===Budget Amendments for FY2012===
+
===Transparency legislation===
 +
In 2009 there were two transparency bills pending in the [[Virginia General Assembly]]: [[Virginia Senate Bill 936 (2009)|Senate Bill 936]] and [http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=hb2285&Submit2=Go House Bill 2285]. [[Virginia Senate Bill 936 (2009)|SB 936]] provided for the Virginia Enterprise Applications Program (VEAP) within the Office of the Secretary of Technology to create and maintain a searchable database website that would contain information on state revenues, appropriations, and expenditures.<ref>[http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=sb936 ''Virginia General Assembly Legislative Tracking'', "SB 936 Auditor of Public Accounts," 2009]</ref> [http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=hb2285&Submit2=Go HB 2285] mandated the creation of a comprehensive, searchable database of Virginia government spending, easily accessible to members of the Commonwealth.
  
In Jan. 2011 when the legislature reconvened, the General Assembly made changes to the state's two-year budget.  The governor signed the resulting "caboose budget" on May 25, 2012.  The caboose budgetl completes the transfer of $67.2 million from FY2011's budget surplus to transportation, adds $5.8 million for per diem payments to local and regional jails, and restores $10 million that had been cut from state college budgets.<ref>[http://www.roanoke.com/politics/wb/309370 The Roanoke Times "Gov. McDonnell signs 'caboose budget'" May 26, 2012
+
On February 25, 2009, both [[Virginia Senate Bill 936 (2009)|Virginia Senate Bill 936]] and [http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=hb2285&Submit2=Go HB 2285] were passed unanimously.<ref>[http://tertiumquids.blogspot.com/2009/02/transparency-bills-pass-senate-house.html ''Tertium Quids'', "Transparency Bills Pass Senate, House," February 25, 2009]</ref>
  
Gov. McDonnell asked legislators to approve $191 million in cuts and savings to the state budget in his annual speech to the General Assembly's financial committees.<reF name=forecast>[http://voices.washingtonpost.com/virginiapolitics/2010/12/virginia_gov_robert_f_mcdonnel.html The Washington Post "McDonnell raises Va. forecast by $283M, proposes $191M in cuts" Dec. 17, 2010]</ref> Overall, the governor proposes cutting $2 million in FY2012 and $2 million in FY2013.<reF name=forecast/>  His amendments to the budget are outlined in [http://dpb.virginia.gov/budget/buddoc11/pdf/budgetdocument2011.pdf this document] form the Governor's office.
+
In August of 2010, Virginia launched [http://www.arra.virginia.gov/Index.cfm ARRA Virginia] to show how the state's $5.5 billion in [[American Recovery and Reinvestment Act|stimulus]] dollars were being spent.<ref>[http://watchdog.org/6312/mcdonnell-launches-new-stimulus-website/ ''Watchdog'', "VA Governor McDonnell launches new stimulus website," August 24, 2010]</ref>
  
Some of the cuts and savings include:<reF name=forecast/>
+
===Multi-measure budget transparency profile===
*$92 million in savings in K-12 education
+
The Institute of Government and Public Affairs at the University of Virginia created a multi-measure transparency profile for Virginia, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ ''Institute of Government and Public Affairs at University of Virginia'', "Home page," accessed February 21, 2014]</ref><ref name=allstates>[http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf ''Institute of Government and Public Affairs at University of Virginia'', "Budget Transparency Profiles - All 50 States," September 2011]</ref>
*$5.4 million in savings at the Lottery
+
*$5 million in cuts for programs to help at-risk youth and families through the Comprehensives Services Act
+
*$32,000 for the State Fair
+
*$420,000 by eliminating four vacant positions in the Department of Forestry
+
*$1.4 million by continuing agency-wide restrictions in the Department of Health on discretionary spending, travel and hiring
+
*$1 million in administrative savings at the Department of Social Services
+
*ending state taxpayer funding of public broadcasting in Virginia.
+
  
The cuts are seen as offsetting the governors proposed spending for $150 million on roads and bridges, $54 million for economic development, and $58 million in colleges and universities.<ref name=forecast/>  McDonnell also wants to spend approximately $30 million for behavioral health and developmental services and $39 million for the environment, including nearly $33 million to clean up the Chesapeake Bay.<ref name=forecast/>
+
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Virginia tied for 33rd in the nation with 12 other states, earning four out of eight possible points.<ref name=allstates/>
  
The governor also increased the state's revenue forecast by $283 million -- $134 million in FY2011 and $149 million in FY2012.<ref name=forecast/>  His proposal also included $1 million to promote OpSail 2012, a tourist event that will bring tall sailing ships to ports to commemorate the War of 1812, a $500,000 grant to help fund a new headquarters for Operation Smile and another $500,000 for Virginia's food banks.<ref>[http://www.washingtonpost.com/wp-dyn/content/article/2010/12/27/AR2010122704305.html The Washington Post "McDonnell's proposals stir budget hawks" Dec. 28, 2010]</ref>
+
{| class="wikitable" style="text-align:center; width:55%;"
 
+
! colspan="2" align="center" style="background-color:#008000; color: white;" | Virginia - IGPA score for budget process, contents and disclosure
===Original FY2011-12 State Budget===
+
|-
A two-year budget for FY 2011 and 2012 was drafted when the Virginia General Assembly convened January 13, 2010 and adopted that spring.<ref>[http://legis.state.va.us/ ''Virginia General Assembly Web site'', retrieved November 17, 2009]</ref> Gov. McDonnell proposed 14 amendments to the bill amending the current year's budget and 96 amendments to the FY 2012 budget.<ref name=wrap>[http://www.fairfaxtimes.com/cms/story.php?id=1436 Fairfaxtimes.com "General Assembly wraps up state budget" April 27, 2010]</ref>  The Republican-controlled House of Delegates rejected nine amendments and the Democrat-controlled state Senate rejected an additional six of the governor's proposals.<ref name=wrap/>  In addition to some technical and language changes, McDonnell's successful amendments to the FY2011 and 2012 budget included<ref name=wrap/>:
+
! valign="bottom" style="background-color:#444; color: white;" | Budget transparency indicator
*Adding $6 million to the Governor's Development Opportunity Fund, for a total of $36.8 million available for business incentives.
+
! valign="bottom" style="background-color:#444; color: white;" | Yes or no?
*Restoring $528,313 in funds for the Virginia Economic Development Partnership
+
|-
*Anticipating an additional $3.6 million in funding from increased speeding ticket fines
+
| Performance measures || {{Yes}}
*Allowing for an additional $1.8 million reduction in support for local social service departments.
+
|-
The General Assembly rejected a 33% reduction in public television and radio funding in 2012. The stations will still receive a 15 percent funding reduction, as approved in the Legislature's originally passed budget.<ref name=wrap/>
+
| "Generally Accepted Accounting Principles" budget || {{no (Sunshine Review)}}
 
+
|-
Gov. McDonnell said in Oct. 2010 that his amendments to the final year of the FY2011-12 budget would not include pay raises for state workers.<Ref name=raises>[http://www.businessweek.com/ap/financialnews/D9J3HRTG0.htm Businessweek "Va. gov: no state employee pay raises in sight" Oct. 26, 2010]</ref>  State workers are due to receive a 3 percent bonus in FY2011; the last time they received a raise was 2007.<Ref name=raises/>
+
| Multi-year forecasting || {{Yes}}
 
+
|-
==Budget transparency==
+
| Annual cycle ||{{Yes}}
 
+
|-
'''Virginia''' currently has partial spending transparency through its website, Open.Virginia.gov, which includes [http://datapoint.apa.virginia.gov/index.cfm Commonwealth Data Point.]  However, as noted in the chart below, Virginia's database falls short of certain transparency standards. 
+
| Binding revenue forecast || {{No (Sunshine Review)}}
 
+
|-
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
+
| Legislative revenue forecast || {{Yes}}
 
+
|-
{|style="width:100%" class=wikitable
+
| Non-partisan staff || {{No (Sunshine Review)}}
|+ '''Criteria for evaluating spending databases'''
+
|-
!State Database!![[Criteria for evaluating databases|Searchability]]!![[Criteria for evaluating databases|Grants]]!![[Criteria for evaluating databases|Contracts]]!![[Criteria for evaluating databases|Line Item Expenditures]]!![[Criteria for evaluating databases|Dept/Agency Budgets]]!![[Criteria for evaluating databases|Public Employee Salary]]
+
| Constitution or statutory tax/spend limitations || {{No (Sunshine Review)}}
 +
|-
 +
| '''TOTAL''' || '''4'''
 
|-
 
|-
|align=center|[http://datapoint.apa.virginia.gov/ Commonwealth Data Point]||{{Yes (Sunshine Review)}}||{{No (Sunshine Review)}}||{{No (Sunshine Review)}}||{{yes}}||{{Yes (Sunshine Review)}}||{{No (Sunshine Review)}}
 
 
|}
 
|}
*Commonwealth Data Point does not provide any means of viewing state contracts or grants. While line item expenditures are provided, a 2009 article wrote that "extracting usable information from the site isn't easy. Data Point records individual transactions, but with very little if any data explaining why the state spent the funds."<ref>[http://www.nvdaily.com/news/2009/01/bill-would-make-state-spending-transparent.html ''Northern Virginia Daily'', "Bill would make state spending transparent," January 20, 2009]</ref>
+
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref name=allstates/>
 
+
In 2009 there were two transparency bills pending in the Virginia General Assembly: [[Virginia Senate Bill 936 (2009)|Virginia Senate Bill 936]] and Virginia [http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=hb2285&Submit2=Go House Bill 2285]. [[Virginia Senate Bill 936 (2009)|SB 936]] "Provides for the Virginia Enterprise Applications Program (VEAP) within the Office of the Secretary of Technology to create and maintain a searchable database website containing information on state revenues, appropriations, and expenditures."<ref>[http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=sb936 Virginia General Assembly Legislative Tracking]</ref> [http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=hb2285&Submit2=Go HB 2285] mandates creation of a comprehensive, searchable database of Virginia government spending, easily accessible to members of the Commonwealth.
+
  
On February 25th, 2009, both [[Virginia Senate Bill 936 (2009)|Virginia Senate Bill 936]] and [http://leg1.state.va.us/cgi-bin/legp504.exe?ses=091&typ=bil&val=hb2285&Submit2=Go HB 2285] were passed unanimously.<ref>[http://tertiumquids.blogspot.com/2009/02/transparency-bills-pass-senate-house.html ''Tertium Quids'', "Transparency Bills Pass Senate, House," February 25, 2009]</ref>
 
 
In August of 2010, Virginia launched [http://www.arra.virginia.gov/Index.cfm ARRA Virginia] to show how the states $5.5 billion in [[American Recovery and Reinvestment Act|stimulus]] dollars are being spent.<ref>[http://watchdog.org/6312/mcdonnell-launches-new-stimulus-website/ ''Watchdog'', VA Governor McDonnell launches new stimulus website, August 24, 2010]</ref>
 
 
===Multi-Measure Budget Transparency Profile===
 
 
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Virginia, which measures state transparency as of September 2011 using indicators from a range of organizations.  These indicators measure both website transparency and other recognized facets of governmental transparency.  In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.<ref>[http://igpa.uillinois.edu/ Institute of Government and Public Affairs]</ref><ref> [http://igpa.uillinois.edu/system/files/Virginia_Profile_IGPA_093011.pdf University of Illinois Transparency Profile for Virginia]</ref>
 
 
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref>[ [http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf University of Illinois 50 State Transparency Comparison]</ref><ref>[http://igpa.uillinois.edu/content/state-transparency-profiles University of Illinois State Transparency Profiles]</ref>
 
 
===U.S. PIRG "Following the Money" report===
 
===U.S. PIRG "Following the Money" report===
 
{{Following the Money 2014 Advancing States|State=Virginia|Grade=B+|Score=87|Level=advancing}}
 
{{Following the Money 2014 Advancing States|State=Virginia|Grade=B+|Score=87|Level=advancing}}
 
==Budget background==
 
*Virginia has operated under a biennial system since the Constitution of 1851 provided for biennial Sessions.
 
*In 1870, the Constitution was amended to require annual sessions, only to have biennial sessions restored in 1876.
 
*In 1976, the Commission on State Governmental Management voted on a study of the structure and processes of state government.  Their findings caused them to reject (14 to 1) proposed legislation to remove the biennial process due to the fact that "the budget formulation process has been compacted into too short a times period in the past resulting in an inability of executive branch management to undertake the in-depth analysis necessary to focus on alternative solutions to the problems facing the state."<ref>[http://baconsrebellion.com/2009/02/03/biennial-budget Bacon's Rebellion, "Don't Mess with Virginia's Biennial Budget System," February 3, 2009]</ref>
 
 
'''The Budget Process'''
 
* The biennial budget is enacted into law in even-numbered years, and amendments to it are enacted in odd-numbered years.
 
* Agencies evaluate and estimate their future costs and submit a potential budget to the Department of Planning and Budget(DBP).
 
* The DBP analyzes the various agency requests, and then pass along the resulting findings to the governor for him and his cabinet to prepare the proposed state budget for the General Assembly's approval.
 
* The General Assembly convenes each year on the second Wednesday of January, where the Governor's prepared budget is presented in the form of a bill.
 
* After being reviewed by committees in both the state House and Senates, amendments are added and voted on in each chamber.
 
* Each house sends their version of the amended budget bill to the other for consideration and another vote.
 
* A conference committee resolves any differences between the two versions of the bill, and sends the resulting single version to the Governor for his signature.
 
* The Governor reviews the bill passed by the General Assembly, and may either sign it, veto it entirely, or use the power of the 'line-item veto,' or recommend further amendments.
 
* If the Governor vetoes the bill, or any item on it, it is sent back to the General Assembly during the spring session.
 
* The final passed budget is then enacted into law and goes into effect on July 1 in even-numbered years and on the date of passage in odd-numbered years.<ref>[http://dpb.virginia.gov/budget/faq.cfm#howadopted Virginia Department of Planning & Budget, How is Virginia's Budget Adopted?]</ref>
 
  
 
==Accounting principles==
 
==Accounting principles==
{{main|Virginia government accounting principles}}
+
::''See also: [[Virginia government accounting principles]]''
The [[Virginia Auditor of Public Accounts]] is the independent auditor serving the Commonwealth of Virginia. The Auditor of Public Accounts is part of the legislative branch of Virginia government and reports through the [http://jlarc.state.va.us/ Joint Legislative Audit and Review Commission] (JLARC) of the General Assembly. This structure provides independence from the executive and judicial branch agencies we audit. Article IV Section 18 of the Constitution of Virginia established the Auditor of Public Accounts and Code of Virginia §30-130 through §30-142 sets forth the requirements of the Office.<ref>[http://www.apa.virginia.gov/ ''Virginia Auditor of Public Accounts Web site'', retrieved November 17, 2009]</ref>  
+
The [[Virginia Auditor of Public Accounts]] is an independent auditor serving the Commonwealth of Virginia. The Auditor of Public Accounts is part of the legislative branch of the Virginia government and reports through the [http://jlarc.state.va.us/ Joint Legislative Audit and Review Commission] (JLARC) of the [[Virginia General Assembly]]. This structure provides independence from the executive and judicial branch agencies the auditor must audit. Article IV Section 18 of the [[Virginia Constitution]] established the Auditor of Public Accounts and Code of Virginia §30-130 through §30-142 sets forth the requirements of the office.<ref>[http://www.apa.virginia.gov/ ''Virginia Auditor of Public Accounts Web site'', retrieved November 17, 2009]</ref>  
  
[http://www.truthinaccounting.org/ The Institute for Truth in Accounting] (IFTA) rates Virginia “Timely” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Virginia's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Virginia's [http://www.doa.virginia.gov/Financial_Reporting/CAFR/CAFR_Main.cfm CAFRs] are publications of the [http://www.doa.virginia.gov/Index.cfm The Virginia Department of Accounts] in accordance with Section 2.2-813 of the Code of Virginia. The Department, under the direction of the State Comptroller (David A. Von Moll), is responsible for:<ref>[http://www.doa.virginia.gov/Index.cfm ''Virginia Department of Accounts Web site'', retrieved November 17, 2009]</ref>  
+
[http://www.truthinaccounting.org/ The Institute for Truth in Accounting] (IFTA) rates Virginia “timely” in filing the state’s [[Comprehensive Annual Financial Report]] (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and six states as worst. IFTA does not consider Virginia's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.<ref>[http://truthinaccounting.org/news/listing_article.asp?section=451&section2=451&CatID=3&ArticleSource=567 ''Institute for Truth in Accounting'', “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]</ref> Virginia's [http://www.doa.virginia.gov/Financial_Reporting/CAFR/CAFR_Main.cfm CAFRs] are publications of the [http://www.doa.virginia.gov/Index.cfm The Virginia Department of Accounts] in accordance with Section 2.2-813 of the Code of Virginia. The Department, under the direction of the Virginia Comptroller, is responsible for:<ref>[http://www.doa.virginia.gov/Index.cfm ''Virginia Department of Accounts Website'', accessed November 17, 2009]</ref>  
 
*Providing a unified financial accounting and control system for state funds
 
*Providing a unified financial accounting and control system for state funds
 
*Developing a comprehensive system of checks and balances between state agencies entrusted with the collection, receipt and disbursement of state revenues
 
*Developing a comprehensive system of checks and balances between state agencies entrusted with the collection, receipt and disbursement of state revenues
 
*Maintaining a central accounting system for all state agencies and institutions.
 
*Maintaining a central accounting system for all state agencies and institutions.
<BR>
 
===Credit Ratings===
 
{| {{table}}
 
| align="center" style="background:#f0f0f0;"|'''Credit Rating'''
 
| align="center" style="background:#f0f0f0;"|'''Fitch'''
 
| align="center" style="background:#f0f0f0;"|'''Moody's'''
 
| align="center" style="background:#f0f0f0;"|'''S&P'''
 
|-
 
| Virginia ||AAA||Aaa||AAA<ref>[http://www.pewstates.org/projects/stateline/headlines/infographic-sp-state-credit-ratings-20012012-85899404785 Pew Stateline Infographic on State Credit Ratings. Accessed September 18, 2013]</ref>
 
|-
 
|
 
|}
 
 
==Stimulus==
 
Virginia received $3.3 billion in federal funding.<ref>[http://www.recovery.gov/Pages/default.aspx ''Recovery'', "Stimulus Spending by State"]</ref>
 
  
The state received approximately $540 million from the federal government under [http://thomas.loc.gov/cgi-bin/query/D?c111:7:./temp/~c11109gS64:: H.R. 1586], a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.<ref>[http://www.ffis.org/ Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010]</ref>
+
==Contact information==
 +
Department of Planning and Budget<br>
 +
1111 East Broad Street, Room 5040<br>
 +
Richmond, VA 23219-3418<br>
 +
Phone: (804)786-7455<br>
 +
Fax: (804)225-3291<br>
 +
http://www.dpb.virginia.gov/
  
==Public Employees==
+
==See also==
According to 2008 Census data, the state of Virginia and local governments in the state employed a total of 526,602 people.<ref name=census>[http://www2.census.gov/govs/apes/08stlva.txt 2008 Illinois Public Employment U.S. Census Data]</ref> Of those employees, 402,487 were full-time employees receiving a net pay of $1,577,251,433 per month and 124,115 were part-time employees paid $131,107,597 per month.<ref name=census/>  More than 59% of those employees, or 312,402 employees, were in education or higher education.<ref name=census/>  Since 2009, the number of local government employees decreased approximately 12,000.<ref>[http://www.newsleader.com/article/20101208/NEWS01/12080326 The Staunton News Leader "State not likely to give localities much" Dec. 8, 2010]</ref>
+
* [[Virginia government sector lobbying]]
 +
* [[Virginia public pensions]]
 +
* [[Governor of Virginia]]
 +
* [[Virginia State Senate]]
 +
* [[Virginia House of Representatives]]
  
 
==External links==
 
==External links==
{{colbegin|2}}
 
 
*[http://www.statebudgetsolutions.org/state/detail/virginia State Budget Solutions, Virginia]
 
*[http://www.statebudgetsolutions.org/state/detail/virginia State Budget Solutions, Virginia]
*Model transparency legislation from the [[American Legislative Exchange Council]] is available [http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf at this link.]
+
*[http://www.showmethespending.org/uploads/Taxpayer_Transparency_Act.pdf American Legislative Exchange Council]
 
*[http://www.thomasjeffersoninst.org/main/main.php Thomas Jefferson Institute]
 
*[http://www.thomasjeffersoninst.org/main/main.php Thomas Jefferson Institute]
 
*[http://www.virginiainstitute.org/ Virginia Institute for Public Policy]
 
*[http://www.virginiainstitute.org/ Virginia Institute for Public Policy]
Line 220: Line 408:
 
*[http://legis.state.va.us/ Virginia General Assembly]
 
*[http://legis.state.va.us/ Virginia General Assembly]
 
*[http://uspolitics.einnews.com/news/virginia-government-spending Virginia government spending]
 
*[http://uspolitics.einnews.com/news/virginia-government-spending Virginia government spending]
*[http://tertiumquids.blogspot.com/2008/12/cuccinelli-talks-budget-transparency-on.html Senator Cuccinelli talks about Virginia's level of transparency.] Listen here.
+
*[http://tertiumquids.blogspot.com/2008/12/cuccinelli-talks-budget-transparency-on.html Senator Cuccinelli talks about Virginia's level of transparency.]  
{{colend (Sunshine Review)}}
+
 
 +
===Additional reading===
 +
*[http://uspirg.org/reports/usp/following-money-2014 ''U.S. PIRG'', "Report: Transparent & Accountable Budgets," April 8, 2014]
 +
*[http://www.nytimes.com/2014/02/03/us/battles-loom-in-many-states-over-what-to-do-with-budget-surpluses.html?hp&_r=0 ''The New York Times'', "Battles loom in many states over what to do with budget surpluses," February 3, 2014]
 +
*[http://www.cbpp.org/cms/index.cfm?fa=view&id=3067 ''Center on Budget and Policy Priorities'', "Policy Basics: The ABCs of State Budgets," February 7, 2013]
  
 
==References==
 
==References==
 
{{reflist|2}}
 
{{reflist|2}}
 +
 
{{State budgets}}
 
{{State budgets}}
{{Virginia (Sunshine Review)}}
+
{{Virginia}}
  
 
[[category:Virginia]]
 
[[category:Virginia]]
 
[[Category:Budget information by state]]
 
[[Category:Budget information by state]]

Revision as of 09:42, 5 May 2014

Virginia state budget

Flag of Virginia.png
Budget calendar:  Biennial
Fiscal year:  2012-2014
State Credit Rating:  AAA (as of May 2012)
Current Governor:  Terry McAuliffe
Financial figures
GF expenses[1]:  $17.7 billion
All funds expenses:  $44.6 billion (FY 2013 estimate)
Spending % Change:  Green Arrow Up Darker.svg3.95%[2]
% from Federal Funding:  23.53%
State Debt:  $91,339,102,000
Per Capita State Debt:  $11,158
Other state budgets
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Policypedia Budget Policy-logo-no background.png
This page contains information about budget processes and policy issues in Virginia, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Virginia's total expenditures increased by approximately $3.8 billion, from $40.8 billion in 2009 to $44.6 billion in 2013. This represents an 8.52 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  1. Budget instruction guidelines are sent to state agencies in April and August.
  2. State agency budget requests are submitted in June and October.
  3. Agency hearings are held in September and October.
  4. The governor submits his or her proposed budget to the Virginia General Assembly by December 20.
  5. The General Assembly holds public hearings in January.
  6. The General Assembly adopts a budget in March or April. A simple majority is required to pass a budget.
  7. The biennial budget cycle begins in July.

In Virginia, the governor has line item veto and item veto of appropriations authority.[6]

Though the governor and General Assembly are not required by law to submit or pass a balanced budget, the Virginia Constitution does require the budget to be balanced before the governor signs it into law.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures**
Virginia $17,691 $9,546 $16,191 $1,167 $44,595 $5,398.65
Kentucky $9,426 $8,001 $8,246 $0 $25,673 $5,841.02
North Carolina $20,602 $17,459 $12,543 $785 $51,389 $5,218.19
Tennessee $12,622 $13,055 $5,394 $382 $31,453 $4,841.92
West Virginia $4,159 $4,394 $14,736 $74 $23,363 $12,599.34
**Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Virginia can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Virginia 16.0% 13.1% 0.4% 16.2% 2.9% 11.3% 40.1%
Kentucky 19.8% 25.7% 0.9% 22.5% 2.4% 8.9% 19.8%
North Carolina 23.2% 9.0% 0.5% 24.7% 4.2% 9.9% 28.4%
Tennessee 17.7% 12.8% 0.4% 30.7% 2.7% 6.4% 29.3%
West Virginia 10.8% 14.1% 0.7% 12.7% 1.0% 5.8% 54.9%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, expenditures on higher education and Medicaid increased by 0.2 percent and 1.1 percent respectively. During that same time period, expenditures on elementary and secondary education, corrections and transportation decreased between 0.8 and 3.3 percent. The table below details changes in expenditures from 2008 to 2012.[7][10][11][12][13] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 16.0% 13.1% 0.4% 16.2% 2.9% 11.3% 40.1%
2011 15.8% 15.3% 0.1% 16.9% 3.0% 10.2% 38.6%
2010 16.7% 15.6% 0.5% 16.1% 3.2% 9.2% 38.7%
2009 18.0% 16.3% 0.5% 15.2% 3.6% 10.5% 35.9%
2008 19.3% 12.9% 0.4% 15.1% 4.2% 12.1% 36.0%
Change in % -3.30% 0.20% 0% 1.10% -1.30% -0.80% 4.10%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Virginia $3,249 $11,093 $821 $0 $1,259 $16,421 $1,987.92
Kentucky $3,022 $3,723 $401 $0 $2,202 $9,348 $2,126.82
North Carolina $5,309 $10,958 $1,192 $0 $3,100 $20,559 $2,087.62
Tennessee $6,643 $126 $1,083 $0 $3,551 $11,403 $1,755.39
West Virginia $1,197 $1,722 $249 $0 $982 $4,150 $2,238.04
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Virginia ($ in millions)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $3,249 $11,093 $821 $0 $1,259 $16,421 $1,987.92
2012 $3,122 $10,613 $860 $0 $1,253 $15,847 $1,935.72
2011 $3,012 $9,944 $822 $0 $1,261 $15,039 $1,855.33
2010 $3,083 $9,088 $807 $0 $1,243 $14,220 $1,772.09
2009 $2,903 $9,481 $648 $0 $1,283 $14,315 $1,816.03
Change in % 11.92% 17.00% 26.70% N/A -1.87% 14.71% 9.47%
**Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

State budgets by year

DocumentIcon.jpg See budget bill: 2014 Executive Budget Document

Fiscal year 2014

Governor Terry McAuliffe released his proposed budget for the 2014-2016 biennium on December 16, 2013. The budget proposed an operating budget of $47.5 billion for FY 2015 and $48.4 billion for FY 2016. Both years spent over $17 billion on education and over $13 billion on health and human resources.[14]

Fiscal year 2013

See also: Virginia state budget (2013-2014)

Fiscal year 2012

See also: Virginia state budget (2011-2012)

Fiscal year 2011

See also: Virginia state budget (2010-2011)

Fiscal year 2010

See also: Virginia state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][11]

Historical state budget spending in Virginia ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $16,986 39.1% $15,943 36.7% $9,212 21.2% $1,284 3% $43,425
2010-2011 $16,435 38.7% $14,839 34.9% $9,832 23.2% $1,364 3.2% $42,470
2009-2010 $14,989 36.8% $15,001 36.8% $9,328 22.9% $1,456 3.6% $40,774
Averages: $16,136.67 38% $15,261 36% $9,457.33 22% $1,368 3% $42,223
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Virginia had a state debt of over $91 billion. Its state debt per capita was $11,158. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[15][16]

Total state debt in Virginia[17]
Type Totals U.S. rank
Total state debt $91,339,102,000 15
Per capita debt $11,158 41
State and other fund expenditures $32,929,000,000 40

Public pensions

See also: Virginia public pensions and Virginia public employee salaries

A 2012 report from the Pew Center on the States noted that Virginia's pension system was funded at 72 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[18]

The funding ratio for the state's pension system decreased from 80.20 percent in fiscal year 2006 to 69.46 percent in fiscal year 2011, a 10.74 percent drop. Likewise, unfunded liabilities increased from approximately $10.9 billion in fiscal year 2006 to nearly $24 billion in fiscal year 2011.

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[19]

The table below lists the Standard and Poor's credit ranking for Virginia from 2001 to 2012 (grades from surrounding states are provided for additional context).[19]

S&P credit ratings from 2001 to 2012
Virginia Kentucky North Carolina Tennessee West Virginia
2012 AAA AA- AAA AA+ AA
2011 AAA AA- AAA AA+ AA
2010 AAA AA- AAA AA+ AA
2009 AAA AA- AAA AA+ AA
2008 AAA AA- AAA AA+ AA-
2007 AAA AA- AAA AA+ AA-
2006 AAA AA- AAA AA+ AA-
2005 AAA AA- AAA AA AA-
2004 AAA AA- AAA AA AA-
2003 AAA AA- AAA AA AA-
2002 AAA AA- AAA AA AA-
2001 AAA AA AAA AA AA-

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[20]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[20]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Virginia 23.53% $9,278,113,000 48
Kentucky 35.69% $8,056,691,000 14
North Carolina 33.24% $15,192,577,000 26
Tennessee 41.02% $11,198,575,000 3
West Virginia 34.71% $4,267,399,000 19

Stimulus

Virginia received $3.3 billion in federal funding between February 2009 and June 2013.[21]

The state received approximately $540 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the president signed into law on August 10, 2010.[22]

Budget transparency

Transparency evaluation
Commonwealth Data Point
Searchability Y
600px-Yes check.png
Grants N
600px-Red x.png
Contracts N
600px-Red x.png
Line item expenditures Y
600px-Yes check.png
Dept./agency budgets Y
600px-Yes check.png
Public employee salaries N
600px-Red x.png
Last evaluated in 2009.
See also: Evaluation of Virginia state website and Constitutional provisions regarding reading of bills

Virginia has partial spending transparency through its website Open.Virginia.gov, which includes Commonwealth Data Point. However, as noted in the chart to the right, Virginia's database falls short of certain transparency standards. One shortcoming is that Commonwealth Data Point does not provide any means of viewing state contracts or grants. While line item expenditures are provided, a 2009 article wrote that "extracting usable information from the site isn't easy." Data Point records individual transactions, but with very little if any data, explaining why the state spent the funds."[23]

Transparency legislation

In 2009 there were two transparency bills pending in the Virginia General Assembly: Senate Bill 936 and House Bill 2285. SB 936 provided for the Virginia Enterprise Applications Program (VEAP) within the Office of the Secretary of Technology to create and maintain a searchable database website that would contain information on state revenues, appropriations, and expenditures.[24] HB 2285 mandated the creation of a comprehensive, searchable database of Virginia government spending, easily accessible to members of the Commonwealth.

On February 25, 2009, both Virginia Senate Bill 936 and HB 2285 were passed unanimously.[25]

In August of 2010, Virginia launched ARRA Virginia to show how the state's $5.5 billion in stimulus dollars were being spent.[26]

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Virginia created a multi-measure transparency profile for Virginia, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[27][28]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Virginia tied for 33rd in the nation with 12 other states, earning four out of eight possible points.[28]

Virginia - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle
{{{1}}}
Binding revenue forecast N
600px-Red x.png
Legislative revenue forecast
{{{1}}}
Non-partisan staff N
600px-Red x.png
Constitution or statutory tax/spend limitations N
600px-Red x.png
TOTAL 4

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[28]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[29] According to the report, Virginia received a grade of B+ and a numerical score of 87, indicating that Virginia was an "advancing" state in terms of transparency regarding state spending.[29]

Accounting principles

See also: Virginia government accounting principles

The Virginia Auditor of Public Accounts is an independent auditor serving the Commonwealth of Virginia. The Auditor of Public Accounts is part of the legislative branch of the Virginia government and reports through the Joint Legislative Audit and Review Commission (JLARC) of the Virginia General Assembly. This structure provides independence from the executive and judicial branch agencies the auditor must audit. Article IV Section 18 of the Virginia Constitution established the Auditor of Public Accounts and Code of Virginia §30-130 through §30-142 sets forth the requirements of the office.[30]

The Institute for Truth in Accounting (IFTA) rates Virginia “timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and six states as worst. IFTA does not consider Virginia's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[31] Virginia's CAFRs are publications of the The Virginia Department of Accounts in accordance with Section 2.2-813 of the Code of Virginia. The Department, under the direction of the Virginia Comptroller, is responsible for:[32]

  • Providing a unified financial accounting and control system for state funds
  • Developing a comprehensive system of checks and balances between state agencies entrusted with the collection, receipt and disbursement of state revenues
  • Maintaining a central accounting system for all state agencies and institutions.

Contact information

Department of Planning and Budget
1111 East Broad Street, Room 5040
Richmond, VA 23219-3418
Phone: (804)786-7455
Fax: (804)225-3291
http://www.dpb.virginia.gov/

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. 2014 Executive Budget Document, "Governor McDonnell's Proposed Budget for the 2014-2016 Biennum," December 16, 2013
  15. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  17. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  18. Pew Center on the States "Widening Gap Update: Virginia," June 18, 2012
  19. 19.0 19.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  20. 20.0 20.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  21. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  22. Federal Fund Information for States, “ARRA FMAP Extension & Education Jobs Fund Totals,” August 11, 2010
  23. Northern Virginia Daily, "Bill would make state spending transparent," January 20, 2009
  24. Virginia General Assembly Legislative Tracking, "SB 936 Auditor of Public Accounts," 2009
  25. Tertium Quids, "Transparency Bills Pass Senate, House," February 25, 2009
  26. Watchdog, "VA Governor McDonnell launches new stimulus website," August 24, 2010
  27. Institute of Government and Public Affairs at University of Virginia, "Home page," accessed February 21, 2014
  28. 28.0 28.1 28.2 Institute of Government and Public Affairs at University of Virginia, "Budget Transparency Profiles - All 50 States," September 2011
  29. 29.0 29.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  30. Virginia Auditor of Public Accounts Web site, retrieved November 17, 2009
  31. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  32. Virginia Department of Accounts Website, accessed November 17, 2009