While champagne corks are flying and toasts of success are being made, it is not yet time to celebrate a supposed surplus of revenue in Virginia. According to Governor Bob McDonnell, the state has a surplus of at least $220 million. But does Virginia really have a surplus?
After the past General Assembly session, many budgetary gimmicks have come to light. One such item of budgetary voodoo was a postponement of funding the VRS by $620 million. This payment, as the General Assembly and Governor McDonnell promised, would be made at a later date. Currently, the VRS has $53 billion in unfunded liabilities, according to a study of state pension plans from the American Enterprise Institute. Not only was the Governor’s decision to not return funding to this boondoggle a sleight of hand, the state is still on the hook to refund the VRS in the coming years.
Further troubling is McDonnell’s claims that he has balanced the budget, and created a surplus, without raising taxes. The budget that McDonnell signed included more than $95 million in new fees alone! Aside from the fee increases, McDonnell’s signature on that budget also revived one of the most reviled budgetary gimmicks seen yet—a requirement for retailers to pre-pay a month’s sales taxes to the state through 2013.
Posted by adamrbitely 
